Presence of drug screening and employee assistance programs: Exclusive and inclusive human resource...

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JOURNAL OF ORGANIZATIONAL BEHAVIOR. VOL. 15.549-560 (1994) Presence of drug screening and employee assistance programs: exclusive and inclusive human resource management practices NATHAN BENNETT Louisiana Srare Universiry TERRY C. BLUM Georgia Institute of Technology AND PAUL M. ROMAN Universiry of’ Georgia Summary Drug screening and employee assistance programs (EAPs) are human resource manage- ment practices for addressing substance abuse among employees. The two practices reflect different human resource management strategies and lead to different outcomes for employees and applicants. Drug screening is designed to exclude drug users from the workplace whereas EAPs offer them ‘rehabilitation’. Characteristics of worksites and their surrounding labor market may influence the presence or absence of these personnel practices. The results suggest that, when controlling for number of employees, economic sector, industry, and union presence, worksites with low turnover and in areas with high unemployment rates are more likely to engage in pre-employment drug screening, while worksites with low turnover more often provide an EAP. Introduction There are distinct variations in human resource management practices across American work- places. These variations likely reflect different strategies that may or may not be part ofdeliberate planning and likely have important linkages to organizational culture and employee welfare. There is, however, minimal empirical research that examines the correlates of human resource management practices. Notable exceptions are macrolevel examinations of the emergence of contemporary personnel management (Baron, Dobbin and Jennings, 1986), specific personnel systems (Baron, Jennings and Dobbin, 1988), gender integration (Baron, Mittman and Newman, 199 I), and procedures for assuring due process for employees (Dobbin, Edelman, Meyer. Scott The authors would like to acknowledge support from National Institute on Alcohol Abuse and Alcoholism grant ROI-AA-07192 and National Institute on Drug Abuse grants ROI-DA-07417 and R29-DA-07712. The first aulhor would like to acknowledge additional support from an LSU University Council for Research Summer Grant. An earlier version of this paper was presented at the 1990 Academy of Management Meeting. Address all correspondence to the first author, Department ol‘Management. Baton Rouge. LA, 70803. USA. CCC 0894-3796/94/060549- 1 2 0 1994 by John Wiley & Sons. Ltd. Received 26 April 1993 Accepted 17 Januury 1994

Transcript of Presence of drug screening and employee assistance programs: Exclusive and inclusive human resource...

JOURNAL OF ORGANIZATIONAL BEHAVIOR. VOL. 15.549-560 (1994)

Presence of drug screening and employee assistance programs: exclusive and inclusive human resource management practices

NATHAN BENNETT Louisiana Srare Universiry

TERRY C . BLUM Georgia Institute of Technology

A N D

PAUL M. ROMAN Universiry of’ Georgia

Summary Drug screening and employee assistance programs (EAPs) are human resource manage- ment practices for addressing substance abuse among employees. The two practices reflect different human resource management strategies and lead to different outcomes for employees and applicants. Drug screening is designed to exclude drug users from the workplace whereas EAPs offer them ‘rehabilitation’. Characteristics of worksites and their surrounding labor market may influence the presence or absence of these personnel practices. The results suggest that, when controlling for number of employees, economic sector, industry, and union presence, worksites with low turnover and in areas with high unemployment rates are more likely to engage in pre-employment drug screening, while worksites with low turnover more often provide an EAP.

Introduction

There are distinct variations in human resource management practices across American work- places. These variations likely reflect different strategies that may or may not be part ofdeliberate planning and likely have important linkages to organizational culture and employee welfare. There is, however, minimal empirical research that examines the correlates of human resource management practices. Notable exceptions are macrolevel examinations of the emergence of contemporary personnel management (Baron, Dobbin and Jennings, 1986), specific personnel systems (Baron, Jennings and Dobbin, 1988), gender integration (Baron, Mittman and Newman, 199 I) , and procedures for assuring due process for employees (Dobbin, Edelman, Meyer. Scott

The authors would like to acknowledge support from National Institute on Alcohol Abuse and Alcoholism grant ROI-AA-07192 and National Institute on Drug Abuse grants ROI-DA-07417 and R29-DA-07712. The first aulhor would like to acknowledge additional support from an LSU University Council for Research Summer Grant. An earlier version of this paper was presented at the 1990 Academy of Management Meeting. Address all correspondence to the first author, Department ol‘Management. Baton Rouge. LA, 70803. U S A .

CCC 0894-3796/94/060549- 1 2 0 1994 by John Wiley & Sons. Ltd.

Received 26 April 1993 Accepted 17 Januury 1994

550 N. BENNETT, T. C. BLUM AND P. M. ROMAN

and Swidler, 1988). Missing from these examinations are firm-level data from representative samples of workplaces. As one of the leading groups in the emerging research area has pointed out, ‘there appears to be a wide range of equally viable systems for structuring employment within a given organizational form. We need to know much more about how workers (and firms) react over time to these alternatives for organizing personnel’ (Baron et al., 1988, p. 512, emphasis added). This paper responds to this suggestion using as its focus two human resource management programs designed to address employee substance abuse.

Reflection on events of the past two decades clearly indicates that drug abuse was defined by leadership in both government and the private sector as a severe menace to social order. More specifically, drug users were characterized as uninhibited, unpredictable, dangerous to themselves and others, prone to criminal activity, and detriments to productivity in the workplace (Roman and Blum, 1992). Publicity about drug abuse among employed persons encouraged employers to perceive a ‘crisis of control’ and to take deliberate action to protect their organiza- tions against the drug abuse menace (Trice and Roman, 1978). Institutional theory (e.g. DiMag- gio and Powell, 1983; Meyer and Rowan, 1977; Zucker, 1987) would suggest that such a widespread and negative cultural reaction to drug problems would create pressure resulting in a fairly uniform stance on the part of employers.

A sociological perspective on human resource management, however (e.g. Baron et al., 1986, 1988,199 1 ; Dobbin et al., 1988), would predict that labor market and organizational characteris- tics will affect the presence of different practices addressing drugs in the workplace. Two such practices are pre-employment drug screening (PEDS) and employee assistance programs (EAP). We argue that these practices reflect different managerial strategies for containing the effects of environmental intrusions which enter via the human component of production (Blum, 1989; Blum and Roman, 1989). Further, features of both labor markets and workplaces provide opportunities and constraints that affect adoption of these human resource management practices.

PEDS represents an exclusive strategy designed to preclude hiring individuals with characteris- tics viewed as undesirable, in this instance persons whose test results indicate the use of illegal drugs. By contrast, EAPs represent an inclusive strategy wherein organizations undertake to alter or correct employees’ undesirable features. This offering of assistance provides opportuni- ties for managers to forestall discipline or dismissal of employees with personal problems con- tingent upon their ability to constructively address personal issues that negatively affect job performance.

As is true of other aspects of human resource management, the implementation of these practices may reflect labor market conditions (e.g. Kossek, 1987). For example, the availability of labor can be one aspect of the munificence of an organization’s environment (cf. Castrogio- vanni, 199 1). In essence, managers in a munificent labor market may perceive hiring opportunities to be broad enough to allow for excluding prospective employees whose lifestyles they find offensive even if those behaviors (i.e. use of illegal drugs) may not be predictive ofjob performance problems. In a less munificent environment, replacement may be difficult and costly in contrast to attempts to conserve troubled individuals’ employment. Thus, labor market conditions are hypothesized to be associated with the presence of these different practices.

Pre-employment drug screening Empirical research on drug testing has been largely descriptive, focusing on its effects on indivi- dual attitudes towards potential employers (e.g. Crant and Bateman, 1990; Murphy, Thornton and Reynolds, 1990), its utility as a selection device (e.g. Normand, Salyards and Mahoney,

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1990; Parish, 1989; Zwerling, Ryan and Orav, 1990), and its prevalence (e.g. United States Department of Labor [DOL], 1989). An extensive program prevalence study conducted in 1988 used a sample of 7502 private sector, non-agricultural establishments (92.4 per cent response rate), of which 3.2 per cent reported the presence of some type of drug testing program (DOL, 1989). The presence of a drug testing program was found to be positively associated with the size of the establishment. While less than 1 per cent of the establishments with fewer than 10 employees had drug testing programs, the percentage increased steadily with worksite size, with 59.8 per cent of the establishments with 5000 or more employees engaged in some type of drug testing. Overall, the DOL (1989) study reports that 19.6 per cent of all employees worked at sites that had some type of drug testing program in 1988.

Despite the continuing debate over the legal and ethical implications of drug testing, the current trend points to an expanding use of such tests, with 3.9 per cent of establishments surveyed in the DOL study reported to be considering the adoption of a drug screening program. The percentage considering adoption of drug testing increases to between 10 and 15 per cent for those establishments in the size categories with 50 or more employees (DOL, 1989). Propo- nents of preemployment drug tests hold that their technology detects serious drug users and keeps them out of the workplace. Also, it is believed that a significant number of drug users, fearing detection, are deterred from applying for jobs in organizations that are known to screen applicants for evidence of drug use (Gust and Walsh, 1989).

In regard to employee reactions to drug testing, Crant and Bateman (1990) found that the presence of pre-employment screening and testing of current employees in an hypothetical com- pany led their sample of college students to have less positive attitudes toward a potential job in that company, and to be less likely to apply for a job there. Similarly, Murphy et al. (1990) found that while drug testing was viewed positively under some circumstances, there was wide variability in attitudes. Further, there did not seem to be a predictable pattern of variables associated with either a favorable or unfavorable opinion of drug testing. The results of each of these studies suggest that the presence of drug testing may create some different forms of hesitancy to apply for a job on the part of individuals seeking employment, an attitude at least partially independent of their actual drug use.

From a human resource management standpoint, the main implication of pre-employment drug testing is that a smaller pool of applicants will be considered suitable for employment. This can occur in two ways. First, a worksite’s drug testing policy may have an impact on an individual’s likelihood of applying for a job whether or not the person has used drugs (e.g. Crant and Bateman, 1990; Murphy et al., 1990; Schwab, Rynes and Aldag, 1987). In this vein, it has been suggested that those applicants who are most qualified will have more job options and hence greater ability to avoid any particular worksite whose human resource policies are objectionable (Murphy, 1986). Second, the number of otherwise qualified applicants is reduced by the number that test positive for a prohibited substance. Although positive rates are now decreasing, studies that tested samples of job applicants during the late 1980s (when these data were collected) found that roughly 10 to 12 per cent tested positive for illicit drugs (Normand et al., 1990; Zwerling et al., 1990). This suggests that the implementation of pre- employment testing could cause staffig difficulties in some settings. For worksites in tight labor markets, the practice further limits the number of job candidates from which to select. In fact, Blum (1989) reported one case where labor supply was so critical that those who tested positive but met other criteria for employment were hired and warned to stop their drug use. Thus, we hypothesize:

Hypothesis 1: Worksites with a munificent labor market will be more likely to engage in preemployment drug testing than those in labor markets characterized by scarcity.

552 N. BENNETT. T. C. BLUM AND P. M. ROMAN

Employee assistance programs EAPs are oriented to conserving employment of current workers (Steele, 1989). In companies with EAPs, employees who exhibit a job performance decrement that cannot be attributed to workplace causes (such as inadequate training or inappropriate equipment) can be referred to the EAP where they are offered assistance in altering problematic behaviors, including sub- stance abuse (Blum and Roman, 1989; Beyer and Trice, 1984). Thus, EAPs serve performance management and employment conservation functions that are both cost-effective and humane in providing assistance to an employee with an alcohol, drug, or other personal problem (McCaf- fey, 1988; Scarpello and Ledvinka, 1988). EAPs are more prevalent than drug testing, and their presence has also been associated with worksite size. The Department of Labor survey reports that 4.2 per cent of those sites with less than 10 employees offer an EAP, in contrast to 67.6 per cent of those with more than 5000 employees (DOL, 1989). For each of the DOL size categories between 10 and 5000 employees, EAPs have been adopted by approximately 50 per cent more worksites than drug testing. Approximately 50 per cent of all U S . employees have access to an EAP (Blum and Roman, 1989; Blum, Martin and Roman, 1992).

A manifest goal of EAPs is to retain organizations’ investments in individuals by returning to work rather than firing or otherwise ‘losing’ employees and incurring replacement costs of hiring and training (Blum and Roman, 1989). Turnover and labor market conditions should affect the priority of these concerns. For example, a worksite with high turnover may not wish to invest money in the rehabilitation of employees who are likely to have short tenures. Conversely, if the supply of labor is critical, worksite management might prefer to absorb costs associated with an employee’s rehabilitation, rather than the costs and possibly the risks associated with replacement. These scenarios describe labor market contingencies affecting employers’ willingness to invest to conserve employment relationships. Thus, we hypothesize:

Hypothesis 2: Worksites faced with scarcity in the labor market are more likely than those in munificent labor markets to have an employee assistance program.

Control variables Previous research indicates that both pre-employment drug screening and employee assistance programs itre not randomly distributed across workplaces. As a result, our analyses control for four variables previous researchers have found to be correlated with the presence of drug testing and/or EAPs.

First, previous research has consistently shown that EAPs are more prevalent in larger firms (DOL, 1989; Gomez-Mejia and Balkin, 1987; Roman, 1982). Generally, large size is associated with early adoption of a variety of programs (e.g. Tolbert and Zucker, 1983) and with quality of employee benefits (e.g. Villemez and Bridges, 1988), of which EAPs are an example.

Second, a typology developed in the sociological literature has bearing on human resource policies and practices, the distinction between ‘core’ and ‘peripheral’ sectors of the economy (e.g. Baron and Bielby, 1980; Tolbert, 1980). The core sector consists of powerful oligopolistic corporations that grew to dominate the U.S. economy in the late nineteenth and early twentieth centuries. In contrast, the periphery is characterized by much smaller firms operating in a rela- tively competitive environment. Workers who are able to secure employment in the core economy can theoretically be assured of an advantage over their counterparts in the periphery (Edwards, Reich and Gordon, 1975). For example, core firms make a greater investment in training and the maintenance of internal labor markets for jobs, and hence have an interest in retaining employees ( Bluestone, Murphy and Stevenson, 1973). This description of the core sector contrasts

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with that of the economic periphery (cf. Granovetter, 1984), where employment is characterized by general and easily transferable skills, little employer investment in training, and high turnover (Edwards, 1979). The vulnerable character of the employment relationship in the economic periphery, contrasted with that in the core, has led to the suggestion that EAPs will more likely be present in firms in the core economic sector (Steele, 1989).

Third, research has found that drug testing is more prevalent in transportation and manufac- turing settings where risks of drug-related accidents and injuries are perceived to be greater (Gomez-Mejia and Balkin, 1987; Masters, Ferris and Ratcliff, 1988; Mellow, 1988). Fourth, it has been shown (Kemp, 1989) that unions are actively involved in negotiating for employee assistance programs. In the case of the various types of drug testing, the role of unions varies. As examples, LeRoy (1991) reports strong union member support of drug testing based largely on concerns for a safe workplace. By contrast, Irwin (1990) concludes that there is strong union opposition to drug testing, which is seen as a management tool for control of employees.

Based on the research outlined above, the number of employees, whether the firm is located in the core or peripheral economic sector, industry type and union presence are included in the analyses as controls in our investigation of the role that labor market factors have in explain- ing the presence of EAPs and PEDS.

Method Sample and data collection The data for this analysis were collected during 1988 from a sample of human resource managers at worksites in Georgia as part of a larger study of the human resource management function’. A population frame of private sector (for profit, non-public) worksites with 250 or more employees was constructed from the Dun’s Marketing Identifiers file (DMI). This source has been found to be a superior sampling frame as compared to other available lists (Kalleberg, Marsden, Aldrich and Cassell, 1990).

To further enhance the accuracy of the sampling frame, the Georgia Manufacturing Directory and Chamber of Commerce lists provided by each of the 159 counties in the state were used to supplement the DMI file. Companies were grouped into three geographical categories: those located in the 18 county Atlanta Standard Metropolitan Statistical Area (SMSA)’, those located in one of the state’s seven other SMSAs, or those located outside an SMSA. Each group was sampled based on the state’s population distribution with a target N of 300. For example, approximately one-half of the state’s population resides in the Atlanta SMSA, so 150 of the 300 companies were drawn from the Atlanta group. Once selected for inclusion in the sample,

’ The timing of the data collection is important to note. The data were collected before government regulation that may have spurred drug testing was in place. The Department of Transportation regulations on pre-employment. random. and for-cause testing have been in place since November of 1991. The Department of Defense regulation became enforceable in 1988, but only required random drug testing. The Drug Free Workplace Act. which itself does not require screening. per w, had not yet been implemented. While some worksites may have anticipated these reguldtions. the number ultimately effected is small and we feel it is reasonable to conclude that, at the time of the data collection. the decision whether or not to engage in pre-employment drug testing rested with the worksite. In fact. respondents were asked where the impetus for the decision to engage in PEDS and EAP originated and none mentioned that either was in response to regulation. ’ Standard Metropolitan Statistical Area (SMSA) is a term used by the U.S. Bureau of the Census to define ‘a large population nucleus combined with nearby communities which have a high degree of economic and social integration within that nucleus’ (Garwood and Hornor, 1991. pp. 21 1-212). The area is defined beginning with an urban center (city) and working outward to the surrounding urbanized area and additional outlying areas that meet various criteria in regard to factors such as commuting ties to the central city. The reader is referred to Garwood and Homor (1991) for more detail on this issue.

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Present Comprehensive Inclusive n = 9 2 n = 6 9

Employee assistance Cell 1 Cell 2 program

human resource departments were contacted to verify the number of employees at the location. Worksites that were verified to have fewer than 250 employees or could not be located were replaced in the sample by an organization with a similar reported size and standard industrial classification code. Ultimately, 343 eligible worksites were contacted in order to conduct 297 interviews, yielding a participation rate of 86.3 per cent. Interviews were conducted with the highest ranking human resource official available at each site.

161

Exclusive No program n = 5 7 n=79 I 136

I Cell 4 Cell 3

Absent

Total 149 148

Independent variables There are six independent variables included in the analysis. Three variables based on work by Gomez-Mejia and Balkin (1987) are used to measure organizational characteristics. Industry is based on two digit Standard Industrial Classification (SIC) code classifications. These codes are used to classify industries on the basis of the type of activity in which they are engaged (Garwood and Hornor, 1991). In these analyses, the SIC codes have been combined to reflect a manufacturing and transportation ( N = 171)/non-manufacturing and non-transportation ( N = 124) dichotomy. The number of employees at the worksite and the presence of a union (26 per cent) are based on the report of the human resource manager at the worksite. Additionally, the four digit codes were used to categorize the worksite as belonging to either the core

We do not Address the issue of random drug testing of current employees or for-cause testing in this paper. Random testing was excluded because its actual prevalence was too low to sustain an analysis (4 per cent of the sample had random drug testing policies, with even fewer currently engaging in the practice). For-cause testing is an interesting case, because it is heterogeneous in terms of its representation of inclusive or exclusive human resource strategies. In analyses not reported, we found that labor market characteristics were not associated with the presence of for-cause testing, and lurther, that they were not associated with whether the result of a positive for-cause test was dismissal or referral to a help source, such as an EAP. In other words, the decision to use for-cause testing as either an exclusive or inclusive strategy was not influenced by labor market or organizational characteristics included in this analysis.

PRESENCE OF EAP AND DRUG SCREENING 555

(N = 175) or periphery (N = 122) economic sector as suggested by Beck, Horan and Tolbert (1978).

Two variables are included in the analysis to characterize labor market munificence. First, the unemployment rate for the area in which the firm is located was collected from archival sources (Georgia County Data Guide, 1990). We have defined the labor market as the county in which the site was located as well as all contiguous counties. An unemployment rate was calculated for each worksite for the labor market area. In order to account for any short-term fluctuations in the unemployment rate, the mean rate for three years (1986-1988) was used in the analysis. Second, the site’s annual turnover rate was collected in the interview and is measured as the percentage of employees replaced by the firm in the past 12 months. Turnover is considered in conjunction with unemployment rate because it indicates the degree to which the worksite has to search the outside community for replacement labor. In other words, work- sites with high turnover operating in munificent labor markets do not face the same constraints on decision making regarding human resource practices as those sites in areas where labor is scarce.

Analyses A correlation matrix including descriptive statistics for all study variables is presented in the Appendix. Both number of employees and annual turnover were logged using a natural transfor- mation to correct for skewness in their distributions.

To test the hypotheses, two logistic regressions were performed. The dependent variables in these analyses were whether the company had adopted, first, an exclusionary practice (PEDS), and second, an inclusive practice (EAP). In other words, the first equation considers the likeli- hood that a company will be in cell 1 or cell 4 of Table 1 versus cell 2 or cell 3. The second equation considers the likelihood that a company will be in cell 1 or 2, as compared to cells 3 and 4. The results of these analyses are presented in Table 2.

Since the coding of the dependent variables in Table 2 allows those companies with both practices to be considered in both equations, a second, more restrictive, test is presented in Table 3. In these analyses, the equations consider the likelihood of a company being in (a) cell 4 compared to cell 1; and (b) cell 2 compared to cell 1. That is, the results in Table 3 compare companies with only an inclusive or only an exclusive strategy with companies that have adopted both practices.

Results

To consider the two labor market variables simultaneously, to control for size, economic sector, industry and union presence, two logistic regressions testing the hypotheses are presented in Table 2. The first hypothesis stated that pre-employment drug screening would be more prevalent in worksites operating in a munificent labor market. In support of the hypotheses, the logistic regressions show that a low rate of turnover and high area unemployment are both related to the presence of PEDS, even when controlling for size, economic sector, industry, and union presence. The second hypothesis stated that worksites operating in a tight labor market would be more likely to provide employee assistance programs. While unemployment was not related to EAP presence, worksites with low turnover were more likely to support EAPs.

Since EAPs and pre-employment drug screening are not mutually exclusive practices, a series of logistic regressions were conducted to explore factors associated with the adoption of only

556 N. BENNETT. T. C. BLUM AND P. M. ROMAN

Table 2. Logistic regression analysis comparing all companies with either inclusive or exclusive practices to all other companies

Dependent variables Exclusive practice Inclusive practice

b SE b SE

Control variables Size Economic sector Industry Union

0.16 0.17 0.40* 0.19 0.38 0.31 0.59* 0.29 1.23t 0.31 -0.23 0.31 0.34 0.34 -0.17 0.33

lndependen t variables Turnover -0.27* 0.12 -0.47t 0.12 Unemployment 0.39$ 0.16 -0.04 0.15

Model x2 56.92t 39.49t n = 264.One-tailed tests of significance are reported. * p < 0.05, t p < .001, $ p < 0.01.

Table 3. Logistic regression analysis comparing worksites with only inclusive or exclusive practices to those with both

Dependant variables Exclusive practice Inclusive practice

b SE b SE (n = 136) ( n = 145)

Control variables Size Economic sector Industry Union

lndependen t variables Turnover Unemployment

-0.41* 0.26 -0.06 0.24 -0.21 0.43 -0.23 0.45

0.77* 0.49 1.22t 0.44 -0.18 0.45 -0.89* 0.49

0.36$ 0.18 0.12 0.20 -

0.01 0.18 -0.37* 0.21

Model x' 13.38$ 25.66s One-tailed tests of significance are reported. * p < 0.10, t p < 0.01. Sp < 0.05,Op < 0.001.

the inclusive or exclusive practice. In these analyses, worksites with only PEDS or only EAP are compared with worksites that have adopted both practices. Results are presented in Table 3. Again controlling for size, economic sector, industry, and union, the results show that firms with high turnover are more likely to have adopted only PEDS, while worksites in areas of low unemployment are more likely to have adopted only an EAP.

Discussion

These analyses suggest that organizational and labor market characteristics are related to the presence of inclusive and exclusive human resource management strategies adopted to address employee drug use. The data show that in addition to an industry economic sector and worksite effects, labor market characteristics add explanation to our understanding of which substance abuse-related strategies are more likely to be present. Specifically sites with low turnover and

PRESENCE OF EAP AND DRUG SCREENING 557

a greater labor supply are more likely to adopt an exclusive strategy reflected by the practice of screening job applicants for evidence of drug use. This situation reflects a munificent labor market in which managers have greater latitude in their use of selection devices to meet hiring needs and to implement their own theories of the patterns of worker qualifications most suited to productive employment. This finding is also consistent with the observation of Baron el al. (1986) that paper and pencil testing of prospective employees diffused more slowly than other personnel practices during World War I1 ‘no doubt because employers lowered hiring standards amid increasing labor scarcity during the war’ (p. 361).

The finding that union presence is unrelated to any of the three practices is interesting and also suggests alternative explanations. It may be that since the sample was drawn from companies in a right-to-work state, union influence over human resource management practices is less pronounced. Alternatively, the role of union presence may be statistically diminished because of its association with the other worksite and labor market variables included in the analyses.

Firms with high turnover are more likely to have adopted PEDS while workplaces in areas of low unemployment are more likely to have adopted only an EAP. There are at least two possible interpretations of these results. Worksites with high rates of turnover may be unwilling to provide the investment in employees that an EAP could entail because employees will not stay long enough to provide a return on investment. These worksites are also less likely to use exclusive selection practices such as pre-employment drug screening. Management in these organizations may not view testing applications who are expected to have a short tenure as cost-effective. In both cases, the motivation for management to make an investment in their current or potential employees is low. An alternative explanation is that because of the outcomes EAPs provide through conservation of employment relationships, worksites with EAPs have lower turnover. It also may be that those that have used selection tools such as PEDS have lower turnover. The finding that worksites with low turnover in the core economic sector are more likely to have an EAP supports both of these explanations, as firms in the core are characterized by higher levels of employer investment in employee benefits and by a greater emphasis on employee retention (e.g. Bluestone er al., 1973).

The analyses comparing worksites with either practice in place to those with both also supports our argument that labor market conditions affect the presence of these programs. Worksites with high turnover were more likely to rely on PEDS alone as a method to address employee substance abuse. This, of course, leads to thecompanion finding that worksites with low turnover are more likely to have adopted both practices. Low turnover suggests that employees are likely to remain at a site for some time making the investment made in selection (PEDS) and conservation (EAP) cost-beneficial. Those worksites providing EAP but not engaging in PEDS were located in areas with low unemployment. A tight labor market would suggest this configu- ration since it does not exclude applicants to begin with and also provides for employee conser- vation.

Two limitations to the present study should be acknowledged both to add caution to our interpretation of these results and to guide future research. First, we were unable to examine causal relationships between either labor market variables and PEDS and EAPs or among the independent and control variables, due to the cross-sectional nature of our data. Future research to better model the relationships between organizational characteristics, labor market characteristics, and human resource management practices is clearly warranted. Second, our sample was limited to worksites with at least 250 employees. While this places a limit on the generalizability of our results, it is worth repeating the DO1 (1989) study, which found both EAPs and PEDS to be much more infrequent in smaller companies, particularly those with less than 100 employees. Research to investigate the role of labor market variables in explaining

558 N. BENNETT. T. C. BLUM AND P. M. ROMAN

human resource management practices in smaller worksites may find a different pattern of results.

I t is crucial for human resource management strategies to make explicit the underlying concep- tual differences between the practices of pre-employment drug testing and employee assistance, since their common emphases on substance abuse set the stage for confusion. Understanding the factors associated with the presence of these practices is also important, as it has implications for who gets and who keeps jobs.

Appendix-Means, standard deviations, and correlations for all study variables

f S.D. 1 2 3 4 5 6 7 8

I . EAP 0.54 0.49 1.00 2. PEDS 0.57 0.50 0.15 1.00 3. Turnover 32.76 53.29 -0.23 -0.23 1.00 4. Unemployment 5.45 0.98 -0.02 0.24 -0.04 1.00 5. Size 737.49 817.65 0.15 0.10 -0.12 -0.01 1.00 6. Economic sector 0.58 0.49 0.26 0.09 -0.31 -0.11 0.11 1.00 7. Industry 0.58 0.49 0.00 0.38 -0.24 0.27 0.05 -0.05 1.00 8. Union 0.25 0.43 0.04 0.21 -0.03 0.10 0.12 0.16 0.21 1.00

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