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Joseph J. Martocchio

New York, NY


Fifteenth Edition

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Library of Congress Cataloging-in-Publication Data
Names: Martocchio, Joseph J., author. | Mondy, R. Wayne, 1940- Human resource
Title: Human resource management / Joseph J. Martocchio.
Description: Fifteenth Edition. | Boston : Pearson, [2017] | Revised edition
of Human resource management, [2016]
Identifiers: LCCN 2017037154| ISBN 9780134739724 | ISBN 0134739728
Subjects: LCSH: Personnel management—United States. | Personnel management.
Classification: LCC HF5549.2.U5 M66 2017 | DDC 658.3—dc23 LC record available at

1 17

ISBN 10: 0-13-473972-8

ISBN 13: 978-0-13-473972-4

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To my parents—for their sacrifices which have provided
me with great opportunities.

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Brief Contents

Part One Setting the Stage 1
Chapter 1 Human Resource Management: An Overview 2

Chapter 2 Business Ethics, Corporate Social Responsibility, and Sustainability 28

Chapter 3 Equal Employment Opportunity, Affirmative Action, and Workforce Diversity 52

Part Two Staffing 89
Chapter 4 Strategic Planning, Human Resource Planning, and Job Analysis 90

Chapter 5 Recruitment 120

Chapter 6 Selection 146

Part Three Performance Management and Training 179
Chapter 7 Performance Management and Appraisal 180

Chapter 8 Training and Development 208

Part Four Compensation 243
Chapter 9 Direct Financial Compensation (Monetary Compensation) 244

Chapter 10 Indirect Financial Compensation (Employee Benefits) 278

Part Five Labor Relations, Employee Relations, Safety, and Health 305
Chapter 11 Labor Unions and Collective Bargaining 306

Chapter 12 Internal Employee Relations 338

Chapter 13 Employee Safety, Health, and Wellness 362

Part Six Operating in a Global Environment 391
Chapter 14 Global Human Resource Management 392


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Part One Setting the Stage 1

Chapter 1 Human Resource Management: An
Overview 2

Human Resource Management: What It is and Why It is
Important 3

Why Study HRM? 4
Human Resource Management Functions 4

Who Performs Human Resource Management Activities? 6
Human Resource Management Professional 7
Line Managers 7
Human Resources Outsourcing 8
Human Resources Shared Service Centers 8
Professional Employer Organizations 9
More about HR Professionals 9

■■ HR BLOOPERS: Staffing Stone Consulting 9
Human Resources as a Strategic Business Partner in a
Dynamic Environment 12

Capital and Human Capital 13
Dynamic Human Resource Management Environment 13

The Role of HRM in Building Corporate Culture and Employer
Branding 16

Corporate Culture 16
Employer Branding 17

Human Resource Management in Small Businesses 18
Country Culture and Global Business 18
Developing Skills for Your Career 20

Communication 20
Critical Thinking 20
Collaboration 20
Knowledge Application and Analysis 21
Business Ethics and Social Responsibility 21
Information Technology Application and Computing Skills 21
Data Literacy 21
Scope of This Book 21

Preparing for Exams/Quizzes 22 • Key Terms 23
Questions for Review 23 • Preparing for My Career 24

■■ ETHICS DILEMMA: Broken Promises 24
HRM Is Everyone’s Business 24 • HRM by the Numbers 25
Working Together: Team Exercise 25 • INCIDENT 1: HR
After a Disaster 25 • INCIDENT 2: Parental Leave at
Yahoo 26 • Endnotes 26

Chapter 2 Business Ethics, Corporate Social
Responsibility, and Sustainability 28

Defining Ethics and the Sources of Ethical Guidance 29
Business Ethics 29
Sources of Ethical Guidance 30

Legislating Ethics 31

Creating an Ethical Culture and a Code of Ethics 34
Ethical Culture 34
Code of Ethics 35

Human Resource Ethics 36
Linking Pay to Ethical Behavior 37
Ethics Training 38

■■ HR BLOOPERS: Sales Incentives at Pinser
Pharmaceuticals 39

Corporate Social Responsibility and Sustainability 39
Corporate Social Responsibility 40
Corporate Sustainability 42

Conducting a Social Audit 44
Preparing for Exams/Quizzes 45 • Key Terms 46
Questions for Review 46 • Preparing for My Career 46

■■ ETHICS DILEMMA: A Selection Quandary 46
HRM Is Everyone’s Business 47 • HRM by
the Numbers 47 • Working Together: Team
Exercise 47 • INCIDENT 1: An Ethical Flaw 48
INCIDENT 2: Illegal Hiring 48 • Endnotes 49

Chapter 3 Equal Employment Opportunity,
Affirmative Action, and Workforce
Diversity 52

Equal Employment Opportunity and the Federal Laws
Affecting EEO 54

Constitutional Amendments and the Civil Rights Act of 1866 54
Title VII of the Civil Rights Act of 1964, Amended in 1972 54
Equal Pay Act of 1963, Amended in 1972 57
Lilly Ledbetter Fair Pay Act of 2009 58
Pregnancy Discrimination Act of 1978 58
Civil Rights Act of 1991 59
Age Discrimination in Employment Act of 1967, Amended in 1978,
1986, and 1990 60
Age Can Actually Be a Bona Fide Occupational Qualification 60
Rehabilitation Act of 1973 61
Vietnam Era Veteran’s Readjustment Assistance
Act of 1974 61
Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as
Amended 61
Americans with Disabilities Act of 1990 62
Americans with Disabilities Act Amendments Act of 2008 62
Immigration Reform and Control Act of 1986 63
Uniformed Services Employment and Reemployment Rights Act
of 1994  63
Genetic Information Nondiscrimination Act of 2008 63
State and Local Laws 63

Who’s Responsible for Ensuring Equal Employment
Opportunity? 64

Equal Employment Opportunity Commission 64


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Office of Federal Contract Compliance Programs 65
Employers 65

Illegal Discrimination and Affirmative Action 66
Uniform Guidelines on Employee Selection Procedures 66
Types of Unlawful Employment Discrimination 66
Affirmative Action 68

Uniform Guidelines on Preventing Specific Illegal
Employment Discrimination 70

Guidelines on Sexual Harassment 71
Guidelines on Discrimination Because of National Origin 72
Guidelines on Discrimination Because of Religion 73
Guidelines on Caregiver (Family Responsibility)
Discrimination 74
Discrimination Because of Disability 74

Diversity and Diversity Management 75
Elements of the Diverse Workforce 76

Single Parents and Working Mothers 76
Women in Business 76
Mothers Returning to the Workforce (on Ramping) 77
Dual-Career Families 77
Ethnicity and Race 77
Older Workers 78
People with Disabilities 78
Immigrants 78
Foreign Workers 79
Young Persons, Some with Limited Education or Skills 79
Baby Boomers, Gen X, Gen Y, and Gen Z 80

■■ HR BLOOPERS: Affirmative Action and Workforce
Diversity 80
Multi-generational Diversity 81
Lesbian, Gay, Bisexual, and Transgender Employees 82

Preparing for Exam/Quizzes 82 • Key Terms 83
Questions for Review 83 • Preparing for My Career 84

■■ ETHICS DILEMMA: How About Me? 84
HRM Is Everyone’s Business 84 • HRM by the Numbers 85
Working Together: Team Exercise 85 • INCIDENT 1: You’re
Not a Good Employee 86 • INCIDENT 2: So, What’s Affirmative
Action? 86 Endnotes 87

Part Two Staffing 89

Chapter 4 Strategic Planning, Human
Resource Planning, and Job
Analysis 90

HR Strategic Planning Process 91
Mission Determination 92

Human Resource Planning 96
Forecasting Human Resource Requirements 97

■■ HR BLOOPERS: Workforce Planning at Master
Cleaners 97
Forecasting Human Resource Availability 98
Shortage or Surplus of Workers Forecasted 98
Succession Planning: A Component of Strategic
Planning 101

Job Analysis: Process and Methods 102
Reasons for Conducting Job Analysis 103

Job Analysis Methods 105

Job Descriptions 107
Job Identification 107
Date of the Job Analysis 107
Job Summary 108
Duties Performed 108
Job Specification 108
Standard Occupational Classification (SOC) 109
The Occupational Information Network
(O*NET) 110

Competencies and Competency Modeling 110
Job Design Concepts 112
Preparing For Exam/Quizzes 114 • Key Terms 115
Questions for Review 115 • Preparing For My Career 116

■■ ETHICS DILEMMA: Which “Thinker”
Should Go? 116

HRM Is Everyone’s Business 116 • HRM by the
Numbers 117 • Working Together: Team Exercise 117
INCIDENT 1: Competitive Strategy at Buddy Dog Foods 1 17
INCIDENT 2: Who’s Flying the Plane? 118 • Endnotes 118

Chapter 5 Recruitment 120
Recruitment and the Recruitment Process 121
Environment of Recruitment 122

Labor Market Conditions 122
Active or Passive Job Seekers 123
Legal Considerations 124

Internal Recruitment Methods 124
Human Resource Databases 124
Job Posting and Job Bidding 124

■■ HR BLOOPERS: Recruiting Skilled Machinists 125
Employee Referrals 125

External Recruitment Sources 126
High Schools and Vocational Schools 127
Community Colleges 127
Colleges and Universities 127
Competitors in the Labor Market 128
Former Employees 128
Unemployed 128
Military Personnel 129
Self-Employed Workers 129
Ex-Offenders 129

External Recruitment Methods 130
Online and Mobile Recruiting 130
Traditional Methods 134
Tailoring Recruitment Methods to Sources 138

Alternatives to Recruitment 138
Promotion Policies 139
Overtime 139

Preparing for Exam/Quizzes 140 • Key Terms 140
Questions for Review 141 • Preparing for My Career 141

■■ ETHICS DILEMMA: Unfair Advantage? 141
HRM Is Everyone’s Business 141 • HRM by the
Numbers 142 • Working Together: Team Exercise 142
INCIDENT 1: A Problem Ad? 142 • INCIDENT 2: I Am Qualified,
Why Not Me? 143 • Endnotes 143

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Chapter 6 Selection 146
Selection and Environmental Factors Affecting the Selection
Process 147

The Selection Process 147
The Environment of Selection 148

Preliminary Screening and Review of Applications and
Résumés 151
Selection Tests 153

Preliminary Considerations 153
Advantages and Disadvantages of Selection Tests 154
Characteristics of Properly Designed Selection Tests 154
Test Validation Approaches 155
Employment Tests 156
Unique Forms of Testing 158
Legal Considerations 159

Employment Interview 160
Interview Planning 160

■■ HR BLOOPERS: The First Interview 160
Content of the Interview 161
Candidate’s Role and Expectations 161
General Types of Interviews 162
Methods of Interviewing 163
Potential Interviewing Problems 164
Concluding the Interview 166

Pre-Employment Screening and Background
Checks 166

Employment Eligibility Verification (Form I-9) 167
Continuous Background Investigation 167
Background Investigation with Social Media 167
Remembering Hiring Standards to Avoid 168

Selection Decision and Evaluating the Effectiveness of
Selection Decisions 169

Making the Selection Decision 170
Evaluating Selection Decisions 170

Preparing for Exam/Quizzes 172 • Key Terms 173
Questions for Review 173 • Preparing for My Career 173

■■ ETHICS DILEMMA: Hiring with Incomplete
Information 174

HRM Is Everyone’s Business 174 • HRM by the
Numbers 174 • Working Together: Team Exercise 175
INCIDENT 1: A Matter of Priorities 175 • INCIDENT 2: National
Career Day 176 • Endnotes 176

Part Three Performance Management and
Training 179

Chapter 7 Performance Management and
Appraisal 180

Performance Management, Performance Appraisal, and the
Performance Appraisal Process 181

Performance Management 182
Performance Appraisal 182
Performance Appraisal Process 182

The Uses of Performance Appraisal and Performance
Criteria 183

Uses of Performance Appraisal 183

Performance Criteria 184
Responsibility for Performance Appraisal 185
Performance Appraisal Period 187

Choosing a Performance Appraisal Method 188
Trait Systems 188
Comparison Systems 189
Behavioral Systems 191
Results-Based Systems 193

■■ HR BLOOPERS: Appraising Performance at Global
Insurance 193

Assessing the Effectiveness and Limitations of Performance
Appraisal Practices 195

Characteristics of an Effective Appraisal System 195
Limitations of Performance Appraisal 197
Legal Considerations 199

Performance Appraisal Interview 199
Scheduling the Interview 199
Interview Structure 200
Use of Praise and Criticism 200
Employees’ Role 200
Concluding the Interview 201

Trends in Performance Appraisal Practice 201
Preparing for Exams/Quizzes 202 • Key Terms 203
Questions for Review 203 • Preparing for My Career 204

■■ ETHICS DILEMMA: Abdication of Responsibility 204
HRM Is Everyone’s Business 204 • HRM by the Numbers 205
Working Together: Team Exercise 205 • INCIDENT 1:
These Things Are a Pain 206 • INCIDENT 2: Good
Job! 206 • Endnotes 207

Chapter 8 Training and Development 208
Training and Development and Related Practices 209
Training and Development Process 210

Determine Specific Training and Development Needs 211
Establish Training and Development Program Objectives 212
Training Methods 213
Training and Development Delivery Systems 217
Implementing Training and Development Programs 219
Metrics for Evaluating Training and Development 219
Factors Influencing Training and Development 221

Human Resource Management Training Initiatives 223
Careers and Career Planning Approaches and
Methods 225

Traditional Career Path 225
Network Career Path 225
Lateral Skill Path 226
Dual-Career Path 226
Adding Value to Your Career 226
Demotion 226
Free Agents (Being Your Own Boss) 227
Career Planning Approaches 227
Career Development Methods 230

Management Development 231
Mentoring and Coaching 232
Reverse Mentoring 233

■■ HR BLOOPERS: Management Development at Trends
Apparel 233

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Organization Development and the Learning
Organization 234

OD Interventions 234
Learning Organization 235

Preparing for Exams/Quizzes 236 • Key Terms 237
Questions for Review 237 • Preparing for My Career 237

■■ ETHICS DILEMMA: Consequences of Inadequate
Training Design 238

HRM Is Everyone’s Business 238 • HRM by the
Numbers 239 • Working Together: Team Exercise 239
INCIDENT 1: Career Development at Meyers and Brown 239
INCIDENT 2: There’s No Future Here! 240 • Endnotes 240

Part Four Compensation 243

Chapter 9 Direct Financial Compensation
(Monetary Compensation) 244

Total Compensation and the Environment of Compensation
Practice 245

Direct and Indirect Financial Compensation 246
Structure of Direct Financial Compensation Plans 247
Contextual Influences 248

Direct Financial Compensation Components 252
Base Pay 252
Cost-of-Living Adjustments 252
Seniority Pay 252
Performance-Based Pay 253

■■ HR BLOOPERS: Motivating Software Development
Teams 258
Person-Focused Pay 259

Building Job Structures 260
Ranking Method 260
Classification Method 261
Factor Comparison Method 261
Point Method 261

Establishing Competitive Compensation Policies 261
Pay Level Compensation Policies 262
Pay Mix 263

Building Pay Structures 263
Pay Grades 264
Pay Ranges 265
Broadbanding 265
Two-Tier Wage System 266
Adjusting Pay Rates 266
Pay Compression 267

Exceptions to the Rules: Sales Professionals, Contingent
Workers, and Executives 267

Sales Professionals 267
Contingent Workers 268
Executive Compensation 268

Preparing for Exams/Quizzes 270 • Key Terms 271
Questions for Review 272

■■ ETHICS DILEMMA: Sales Tactics at Wells Fargo
Bank 272

HRM Is Everyone’s Business 272 • Questions for
Review 272 • HRM by the Numbers 273 • Working
Together: Team Exercise 274 • INCIDENT 1: The Pay Gap

at Barker Enterprise 274 • INCIDENT 2: The Controversial
Job 274 • Endnotes 275

Chapter 10 Indirect Financial Compensation
(Employee Benefits) 278

Indirect Financial Compensation (Employee Benefits) 279
Legally Required Benefits 280

Social Security 281
Unemployment Insurance 281
Workers’ Compensation 281
Health Care 282

Discretionary Benefits 285
Retirement Plans 286
Life Insurance and Disability Insurance 288
Paid Time-Off 288
Employee Services 291

Workplace Flexibility (Work–Life Balance) 293
Flextime 294
Compressed Workweek 294
Job Sharing 295
Two-in-a-Box 295
Telecommuting 295
Part-Time Work 296

■■ HR BLOOPERS: The Job-Sharing Problem at SunTrust
Bank 297

Customized Benefit Plans 297
Communicating Information about the Benefits Package 297
Preparing for Exams/Quizzes 298 • Key Terms 298
Questions for Review 299

■■ ETHICS DILEMMA: A Poor Bid 299
HRM Is Everyone’s Business 300 • HRM by the
Numbers • 300 • Working Together: Team
Exercise 301 • INCIDENT 1: Flextime 301 • INCIDENT 2:
Communicating Benefits at Seaview Property Management
Company 301 • Endnotes 302

Part Five Labor Relations, Employee
Relations, Safety, and
Health 305

Chapter 11 Labor Unions and Collective
Bargaining 306

The Role of Labor Unions 307
Why Employees Join Unions 308
Prevalence of Unions 309

Union Structure and Labor Strategies 310
Structure of Unions 310
Organized Labor’s Strategies for Promoting a Stronger Labor
Movement 312

Laws Affecting Collective Bargaining 314
National Labor Relations Act 314

■■ HR BLOOPERS: Stopping Unionization at Packer
Industries 315
Labor-Management Relations Act 315
Antidiscrimination Laws and Executive Orders 316

Bargaining Unit Formation and the Collective Bargaining
Process 316

A01_MART9724_15_SE_FM.indd 12 10/4/17 8:29 PM


Forming a Bargaining Unit 316
Collective Bargaining Process 318
Bargaining Issues 319
Preparation for Negotiations 321
Negotiating the Agreement 322
Overcoming Breakdowns in Negotiations 324
Reaching the Labor-Management Agreement 327
Ratifying the Labor-Management Agreement 327
Administration of the Labor-Management Agreement 327
Public Sector Collective Bargaining 328

Grievance Procedure in a Union Environment 328
Union Decertification 330
Preparing for Exams/Quizzes 331 • Key Terms 332
Questions for Review 333 • Preparing for My Career 333

■■ ETHICS DILEMMA: A Strategic Move 333
HRM Is Everyone’s Business 334 • HRM by the
Numbers 334 • Working Together: Team Exercise 335
INCIDENT 1: Break Down the Barrier 335 • INCIDENT 2: We’re
Listening 336 • Endnotes 336

Chapter 12 Internal Employee Relations 338
Employment at Will 339
Discipline and Disciplinary Action 340

Disciplinary Action Process 341
Approaches to Disciplinary Action 342
Problems in the Administration of Disciplinary Action 344

Employment Termination 345
“Just Cause” as a Standard for Choosing to Terminate
Employment 345
Considerations in Communicating the Termination Decision 346
Termination of Employees at Various Levels 346

■■ HR BLOOPERS: Effective Discipline at Berries
Groceries 346
Demotion as an Alternative to Termination 347
Downsizing 348

Ombudspersons and Alternative Dispute
Resolution 350

Ombudspersons 350
Alternative Dispute Resolution 351

More Considerations for Internal Employee
Relations 351

Transfers 351
Promotions 352
Resignations 352
Retirements 354

Preparing for Exams/Quizzes 355 • Key Terms 356
Questions for Review 356 • Preparing for My Career 356

■■ ETHICS DILEMMA: To Fire or Not to Fire 356
HRM Is Everyone’s Business 357 • HRM by the
Numbers 357 • Working Together: Team Exercise 359
INCIDENT 1: Employment at Will 359 • INCIDENT 2: To Heck with
Them! 359 • Endnotes 360

Chapter 13 Employee Safety, Health, and
Wellness 362

Nature and Role of Safety, Health, and Wellness 363
Occupational Safety and Health Administration 364

OSHA and Whistle-Blowers 366
OSHA and the Small Business 367

■■ HR BLOOPERS: Health and Safety Problems at XIF
Chemicals 367
The Economic Impact of Safety 368

Workplace Safety Programs 368
Unsafe Employee Actions 368
Unsafe Working Conditions 368
Developing Safety Programs 368
Accident Investigation 370
Evaluation of Safety Programs 370
Musculoskeletal Disorders 370
Ergonomics 371

Workplace Bullying and Violence 372
Workplace Bullying 372
Workplace Violence 373
Legal Consequences of Workplace Violence 374

Employee Stress and Burnout 376
Potential Consequences of Stress 377
Stressful Jobs 377
Burnout 377

Substance Abuse, Substance-Abuse-Free Workplaces, and
Drug-Testing Programs 378

Alcohol Abuse 379
Drug Abuse 379
Substance-Abuse-Free Workplace and Drug Testing 379

Employee Wellness and Employee Assistance Programs 382
Wellness Programs 382
Social Networking and Wellness 383
Employee Assistance Programs 384

Preparing for Exams/Quizzes 384 • Key Terms 385
Questions for Review 386 • Preparing for My Career 386

■■ ETHICS DILEMMA: In Confidence 386
HRM Is Everyone’s Business 387
HRM by the Numbers 387 • Working Together:
Team Exercise 388 • INCIDENT 1: Something Isn’t
Quite Right 388 • INCIDENT 2: A Commitment to
Safety? 388 • Endnotes 389

Part Six Operating in a Global
Environment 391

Chapter 14 Global Human Resource
Management 392

Evolution and Context of Global Business and Human
Resource Management 393

Evolution of Global Business 393
Context of Global Business 395

Global Staffing 400
Expatriate 400
Host-Country National 400
Third-Country National 400
Approaches to Global Staffing 400
Recruiting Host-Country Nationals 401
Selecting Expatriates 401
Background Investigation 402

A01_MART9724_15_SE_FM.indd 13 10/4/17 8:29 PM


■■ HR BLOOPERS: United Architect’s Expatriate
Problems 402

Global Performance Management and Human Resource
Development 403

Performance Management 403
Expatriate Human Resource Development 403
Pre-Move Orientation and Training 404
Continual Development: Online Assistance and Training 404
Repatriation Orientation and Training 405
Global E-learning 405
Virtual Teams in a Global Environment 406

Global Compensation 407
Compensation for Host-Country Nationals 407
Expatriate Compensation 408

Global Safety, Health, and Employee and Labor
Relations 408

Safety and Health 408

Global Employee Relations 409
Global Labor Relations 410

Globalization for Small to Medium-Sized Businesses 410
Preparing for Exams/Quizzes 411 • Key Terms 412
Questions for Review 412 • Preparing for My Career 413

■■ ETHICS DILEMMA: Meeting Customer Demand at
Any Cost 413

HRM Is Everyone’s Business 413 • HRM by
the Numbers 414 Working Together: Team
Exercise 414 • INCIDENT 1: My Darling 414 • INCIDENT 2:
Was There Enough Preparation? 415 • Endnotes 415

Glossary 418
Name Index 429
Company Index 430
Subject Index 432

A01_MART9724_15_SE_FM.indd 14 10/4/17 8:29 PM


New to this Edition
Four new features appear in each chapter that enable students to integrate knowledge and valu-
able skills regardless whether choosing a career in the HRM profession or other business func-
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