PART 1:

A. Define Human Resource Management in your own words.

B. Differentiate between Human Resource Management and Personnel Management
C. Identify and discuss the 7 HR activities and give examples.
D. d. Explain Psychological Contract and its components.
E. e. Discuss HR challenges that influence management decisions.

ANSWER:

A. Human Resource Management (HRM) is a strategic and systematic approach to managing an

organization's most valuable asset its people. It involves the development and implementation
of policies, practices, and processes to attract, retain, develop, and motivate employees. The
primary goal of HRM is to optimize the workforce's effectiveness in achieving the organization's
objectives. Human Resource Management (HRM) is all about managing people at work. It
involves activities like hiring the right people, helping them learn and grow in their jobs, making
sure they are paid fairly, and creating a positive work environment. HRM is important for
businesses because it helps them have the right team to achieve their goals and ensures that
employees are treated well and motivated to do their best.

B. Personnel Management: This approach focuses on administrative tasks, compliance with rules
and regulations, and handling employee paperwork. It treats employees more as a resource to
get work done, with a primary emphasis on routine tasks and paperwork.

Human Resource Management (HRM): HRM is a more strategic approach. It involves not only
administrative tasks but also aligning the workforce with the organization's goals. HRM sees
employees as valuable assets and emphasizes their development, motivation, and overall
contribution to the success of the organization.

C. Recruitment and Selection:

Example: Posting job ads, reviewing resumes, and conducting interviews to hire a new customer
service representative.

Training and Development:

Example: Providing workshops or online courses to improve employees' computer skills or
leadership abilities.

Performance Management:
Example: Conducting regular performance reviews to discuss goals, provide feedback, and set
objectives for the upcoming year.

Compensation and Benefits:

Example: Deciding and managing salary levels, bonuses, and benefits such as health insurance
and retirement plans.
 Employee Relations:
Example: Addressing and resolving conflicts between team members or between employees and
management.

HR Planning:
Example: Forecasting the need for additional staff based on company growth projections.

Health and Safety:

Example: Ensuring that the organization follows labor laws, regulations, and policies related to
Employment.

D. The psychological contract is about the unwritten promises and expectations that employees
and employers have toward each other. When both parties fulfill their part of the agreement,
there's a sense of trust and satisfaction. If not, it can lead to dissatisfaction and a breakdown in
the working relationship.
Example:
Contributions and Rewards: The employees contribute their time, skills, and effort to the job. In
return, they expect rewards like fair pay, recognition, and career advancement.

E. These challenges impact how organizations attract, retain, and manage their employees, which,
in turn, influences various management decisions to address these HR-related concerns.
Example:
Talent Shortage:
Challenge: Difficulty finding skilled workers.
Impact: Influences hiring and training decisions.

Employee Engagement:
Challenge: Ensuring motivated and committed workers.
Impact: Affects productivity and decisions on workplace culture.

Adapting to Technological Changes:

Challenge: Keeping up with technology advancements.
Impact: Influences decisions on training and restructuring.

Work-Life Balance:
Challenge: Balancing job demands with employee well-being.
Impact: Decisions on flexible work arrangements and policies.

Legal Compliance:
Challenge: Staying compliant with labor laws.
Impact: Influences decisions related to hiring, compensation, and working conditions.
PART 2:
2-16: Do you agree that is inequitable to offer the corporate workers better benefits than the
store partners? Why? Is that. What the law would seem to say?

Answer:
For me yes, it seems inequitable to offer better benefits to corporate workers than store
partners.
Why? Because the discrepancy in parental leave between corporate and retail workers may be
perceived as unequal treatment.
My Legal Perspective, while laws may not demand identical benefits, they generally require fair
and non-discriminatory policies, raising potential legal concerns.

2-17: What arguments would you make as Starbucks CEO concerning why the current policy is
fair?

Answer:
My Arguments as Starbucks’ CEO:
As competitive Industry standards, Starbucks could emphasize that its parental leave policy is
generous and competitive for a retail chain. Inclusive, access highlight the policy's inclusivity,
allowing even part-time workers to access benefits. Lastly flexibility for all, emphasize that the
policy provides flexibility for various family situations.

2-18: How would you handle this situation if you were running a company that was confronted
by a shareholder’s making these demands.

Answer:
I would handle this situation with transparency, clearly communicate the company's
commitment to fairness and the reasons behind the existing policy. I will review and
consideration, assess the policy's impact and feasibility of adjustments without compromising
financial stability. And in terms of legal compliance, I will ensure that the policy aligns with legal
requirements to mitigate potential legal risks. To engage with shareholder’s, I will explain the
rationale and exploring potential compromises that align with the company's values.

THANK YOU!