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Management Leading and Collaborating

in a Competitive World 13th Edition


Bateman Solutions Manual
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Chapter 10 Human Resources Management

chapter 10
Human Resources Management
CHAPTER CONTENTS
Learning Objectives 10-2

Chapter Outline 10-2

Chapter Resources 10-3

Key Student Questions 10-3

Class Roadmap 10-4

Bottom Line 10-20

Social Enterprise 10-21

Lecturettes 10-22

Discussion Questions 10-25

Experiential Exercises 10-29

Concluding Case 10-32

10-1
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Chapter 10 Human Resources Management

LEARNING OBJECTIVES
1 Discuss how companies use human resources management to gain competitive advantage.
2 Give reasons why companies recruit both internally and externally for new hires.
3 Identify various methods for selecting new employees.
4 Evaluate the importance of spending on training and development.
5 Discuss options for who appraises an employee’s performance.
6 Describe the fundamental aspects of a reward system.
7 Summarize how unions and labor laws influence human resources management.

CHAPTER OUTLINE
Strategic Human Resources Management
The HR Planning Process
Staffing
Recruitment
Selection
Workforce Reductions
Developing the Workforce
Training and Development
Performance Appraisal
What Do You Appraise?
Who Should Do the Appraisal?
How Do You Give Employees Feedback?
Designing Reward Systems
Pay Decisions
Incentive Systems and Variable Pay
Executive Pay and Stock Options
Employee Benefits
Legal Issues in Compensation and Benefits
Health and Safety
Labor Relations
Labor Laws
Unionization
Collective Bargaining
What Does the Future Hold?

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Chapter 10 Human Resources Management

CHAPTER RESOURCES
Experiential Exercises Cases Social Enterprise Lecturettes
1. The Legal Interview Invincibility Systems Are Business School 1. EO/AAP
Graduates Willing to
2. The Pay Raise Work for Social 2. The Pros and Cons
Enterprises? of Employee Turnover

KEY STUDENT QUESTIONS


Most students are very interested in Human Resources Management (HRM) because they have
personal experience with HR policies or practices that they feel are unfair. Downsizing,
performance management, and legal issues are especially likely to create conversation. Questions
you might hear include:

1. “How do companies decide whom to lay off during a downsizing?


2. “Is (insert a human resource practice here) legal?”
3. “What should I do if I’m asked an illegal question during an interview?”

How you answer these questions depends on whether your class needs more specific examples to
understand concepts, or if you want to move away from the individual situation, and get the class
to consider a broader, more strategic approach to Human Resources.

• To get more specific examples, ask the student asking the question if they will be
willing to tell the class a little more about why they are asking the question. Have
them elaborate on the situation and background, and then ask the class what they
think. When answering the question, be careful to explain to the student that you are
not a lawyer, and if you don’t have an answer for the question, be open about that, as
well. If you believe a student has a legitimate complaint with an employer, direct the
student to the National Labor Relations Board or Equal Employment Opportunity
Commission office in your area. You can find your local offices by going to the
following websites:
http://www.nlrb.gov/who-we-are/regional-offices
http://www.eeoc.gov/
• When trying to get students to look at the bigger question from the perspective of
either corporate strategy or general laws, ask them to take a step back and consider
the question they are asking from another perspective. For example, students who ask
the question “How do companies decide who to lay off during a downsizing?” are
likely to have been laid off themselves. You can redirect these students from their
own concerns by asking them to describe: 1) what kinds of situations cause managers
to think about downsizing; 2) the various downsizing options available to managers;
and 3) the pros and cons of different approaches, based on the situation. By helping
the students to view the situation from a broader perspective, they develop a better
understanding of HRM principles.

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Chapter 10 Human Resources Management

The third question (“What should I do if I’m asked an illegal question during an interview?”)
deserves special mention. One response to this question is, “Answer the question, proceed with
the interview, hope they offer you the job, then turn them down, and tell them why.” A company
which asks illegal questions during the interview process is probably not a company for which
students want to work, and it is only when companies start losing good candidates (and know
why) that they will stop asking these kinds of questions. Students may or may not feel that this is
a practical answer, but they will see it as an empowering one.

Teaching Tip
The Nolo Press in Berkeley offers an excellent collection of articles and books that summarize
the laws pertaining to today’s employment relationships. Before teaching this class, go to
http://www.nolo.com to check out what’s new under “Human Resources.” The Employer’s Legal
Handbook1 offers a quick overview of current employment law on a state by state basis.

CLASS ROADMAP
POWERPOINTS
Slide 1 Human Resource Management
Slide 2 Chapter Introduction Quote
Slide 3 Learning Objectives
Slide 4 Human Resource Management (HRM)

MANAGEMENT IN ACTION

How Google Lands the Best Employees in a Tough Job Market

We continue to hear that U.S. universities are not preparing enough software developers and
engineers to meet employers’ demands, yet Google receives about 2 million job applications a
year and hires the best of the best. What is their secret? Part of the answer is found in how the
company treats its workers. They are paid well, and Google tries to make the workplace
comfortable with benefits such as exercise facilities, extended time off to pursue passions,
permission to bring pets to work, and free food. It also provides onsite child care and options for
job sharing and telecommuting. Year after year, Google is near the top of Fortune’s 100 Best
Companies to Work For. Employees see Google as being involved in something that matters, and
they are eager to be part of a company that is making the Internet a powerful tool for its users.
Because Google is an attractive employer, it can be picky about whom it hires.

I. STRATEGIC HUMAN RESOURCES MANAGEMENT


POWERPOINTS
Slide 5 Strategic Human Resource Management
Slide 6 An Overview of the HR Planning Process
Slide 7 The HR Planning Process
Slide 8 Social Enterprise

LO 1: Discuss how companies use human resources management to gain competitive


advantage.
1
Steingold, Fred S., The Employer’s Legal Handbook (7th Edition), Nolo Press, 2005.

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Chapter 10 Human Resources Management

A. Human Resources Management (HRM) deals with formal systems for managing people at
work.

B. People and management policies, like other resources, become a competitive advantage for a
company when they:

1. create value
2. are rare
3. are difficult to imitate
4. are organized

C. Because employee skills, knowledge, and abilities are among the most distinctive and renewable
resources upon which a company can draw, their strategic management is more important than
ever. Human capital is often used today to describe the strategic value of employee skills and
knowledge.

Example 10.1 Human capital


Over the years, HR professionals have increasingly demanded that they be allowed to work with
other corporate executives in setting the strategic direction for their company. Today, more and
more HR executives are being invited to help set talent-related strategy, but with their new
visibility comes the expectation that they will be able to deliver value. Some senior HR
professionals, like Randy McDonald of IBM, focus on metrics. As he says, “If I’m going to
make an investment in people, I ought to be able to measure that level of investment.”2 Others,
like Scott Mannis at the apparel firm Kellwood, only keep track of the most basic measures, like
turnover or the number of successors in place for key jobs. As he says, “It can go too far.”

D. The HR planning process (Exhibit 10.1)

1. The HR planning process occurs in three stages:


a. Planning ensures that the right number and types of people are available, where
the company is headed, in what businesses it plans to be, what future growth is
expected, and so forth.
b. Programming of specific human resources activities such as recruitment, training,
or layoffs. The company’s plans are implemented.
c. Evaluating determines whether they are producing the results needed to contribute
to the organization’s business plans.

2. Demand forecasts
a. Determine how many and what types of people are needed.
b. Demand forecasts for people needs are derived from organizational plans.
c. The number of labor-hours required operating a plant, selling the product,
distributing it, and service customers can be calculated.

3. Labor supply forecasts


a. Estimates of how many and what types of employees the organization actually
will have.
b. In performing a supply analysis, the organization estimates the number and
quality of its current employees as well as the available external supply of
workers.
2
Frauenheim, Ed. “Burden of power.” Workforce Management, June 25, 2007, 2007 SHRM Conference, pg. 1.

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Chapter 10 Human Resources Management

c. Forecasts of a diverse workforce have become fact.

4. Reconciling supply and demand


a. Once managers have a good idea of both the supply and demand for various types
of employees, they can start developing approaches for reconciling the two.
b. Organizations may find that they need more people than they currently have.
c. Organizations may find that they have more people than they need.

5. Job analysis
a. It tells the HR manager about the job itself: the essential tasks, duties, and
responsibilities involved in performing the job.
b. It describes the skills, knowledge, ability and other characteristics needed to
perform the job.
c. It provides the information that virtually every human resources activity requires.

II. STAFFING
POWERPOINTS
Slide 9 Staffing the Organization
Slide 10 Interviews
Slide 11 Tests, Reliability and Validity
Slide 12 Exhibit 10.2 Screening Tools Used Most Often
Slide 13 Workforce Reductions
Slide 14 Advice on Termination
Slide 15 Legal Issues and Equal Employment Opportunity
Slide 16 Major U.S. Equal Employment Laws

LO 2: Give reasons companies recruit both internally and externally for new hires.

A. Recruitment

1. Recruitment activities help to increase the pool of candidates that might be selected
for a job.
2. Internal recruitment advantages – employers know their employees, and employees
know their organization.
3. External recruiting brings in “new blood” to a company and can inspire innovation.

Example 10.2 – External recruiting: When Hewlett Packard needed a new CEO to
replace Carly Fiorina, they looked outside the company and found Mark Hurd, the CEO
of NCR. According to the company, Hurd brought “proven execution skills, his ability to
lead top-performing teams and his track record in driving shareholder value were
important factors contributing to his selection.”3 What is interesting is that HP passed
over two internal candidates in their search—Vyomesh Joshi, executive vice president of
the HP Imaging and Personal Systems Group, and Ann Livermore, executive vice
president of the HP Technology Solutions Group—which includes enterprise hardware

3
“HP board appoints Mark Hurd to replace Carly Fiorina” Eurotrade Computer and Communication Monthly. Retrieved from
http://www.etmag.com, August 23, 2005.

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Chapter 10 Human Resources Management

and services. Both of these internal candidates run businesses that are bigger than NCR.
Fortunately for HP, both of these executives stayed with the company after the transition.

LO 3: Identify various methods for selecting new employees.

B. Selection

1. Selection builds on recruiting and involves decisions about whom to hire. (See
Exhibit 10.2.)
2. Applications and resumes provide basic information to prospective employers.
Typically include information about the applicant’s name, educational background,
citizenship, work experience, certifications, and the like.
3. Interviews are the most popular selection tool. Structured interviews conduct the
same interview with each applicant.
a. Situational interview focuses on hypothetical situations.
b. Behavioral description interview explores what candidates have actually done in
the past.
4. Reference checks are another commonly used screening device.
5. Background checks provide a higher level of scrutiny.
6. Personality tests are less popular for employee selection, largely because they are
hard to defend in court.
7. Drug testing has become more complicated for employers in the growing number of
states that have legalized the use of marijuana for legal purposes. However, most state
medical marijuana laws do not include employment protections for workers.
8. Cognitive ability tests measure a range of intellectual abilities, including verbal
comprehension and numerical aptitude. (Exhibit 10.4)
9. Performance tests are procedures in which the test taker performs a sample of the
job.
10. An assessment center is a managerial performance test in which candidates
participate in a variety of exercises and situations
11. Integrity tests are used to assess job candidate’s honesty. Two forms are polygraphs
and paper-and-pencil honesty tests.
12. Reliability refers to the consistency of test scores over time and across alternative
measurements.
13. Validity moves beyond reliability to assess the accuracy of the selection test. The
criterion-related validity refers to the degree to which a test actually predicts or
correlates with job performance. Content validity concerns the degree to which
selection tests measure a representative sample of the knowledge, skills, and abilities
required for the job.

Example 10.3 Selection tests


The Edmonton Police Service is struggling to attract a few good men and women. To join the
force, Bill Gillespie, EPS Fitness Director, says you have first to pass a cognitive abilities test
designed by a psychologist to identify people best suited for policing. You also have to pass a
written communications evaluation. From there you step into the policy gym for the fitness test.
The fitness test consists of two parts: a Physical Abilities Readiness Evaluation (P.A.R.E.) and

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Chapter 10 Human Resources Management

component testing. The P.A.R.E. is basically an obstacle course that mimics the pursuit and
apprehension of a suspect. The component testing requires being able to do a set number of
chin-ups; dips on parallel bars, a sit and reach test, two anaerobic powers and includes a body
composition evaluation. Minimum fitness standards are set at the 40th percentile.4

C. Workforce Reductions

1. Layoffs are a result of the massive restructuring of American industry brought about
by mergers and acquisitions, divestiture, and increased competition. Outplacement is
the process of helping people who have been dismissed from the company to regain
employment elsewhere.
2. Termination
a. Employment-at-will is the legal concept that an employee may be terminated for
any reason
b. Termination interview, where the manager discusses the company’s position
with the employee, is a stressful situation for both parties. (Exhibit 10.4)

D. Legal Issues and Equal Employment Opportunity (See Exhibit 10.5)

1. Fair Labor Standards Act (1938) —Distinguishes between exempt and non-exempt
employees, creates child labor laws.
2. Equal Pay Act (1963) —Prohibits gender-based discrimination.
3. Title VII of Civil Rights Act (1964) —Prohibits discrimination in employment based
on race, sex, color, national origin, and religion.
4. Adverse impact describes when a seemingly neutral employment practice has a
disproportionately negative effect on a protected group
5. Executive Orders 11246 and 11375 (1965) —Prohibits employment discrimination
by federal contractors, created Office of Federal Contract Compliance Programs.
6. Age Discrimination in Employment Act (1967) —Prohibits employment
discrimination against people older than 40.
7. Vocational Rehabilitation Act (1973) —Requires affirmative action by all federal
contractors for persons with disabilities.
8. Americans with Disabilities Act (Amended 2008) —Extends affirmative action
provisions of Vocational Rehabilitation Act to private employers.
9. Civil Rights Act (1991) —Shifts burden of proof to the employer, permits punitive
damages and jury trials.
10. Family and Medical Leave Act (1991) —Requires 12 weeks’ unpaid leave for
medical or family needs; paternity, family member illness.

III. DEVELOPING THE WORKFORCE


POWERPOINTS
Slide 17 Training and Development
Slide 18 Types of Training

LO 4: Evaluate the importance of spending on training and development.


4
Zdeb, Chris. “Are you fit enough for the force?” Edmonton Journal (Alberta), July 23, 2007, Pg. D1.

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Chapter 10 Human Resources Management

A. Training and development annual spending by employers on formal training is over


$164 billion.

1. Overview of the training process


a. Training usually refers to teaching lower-level employees how to perform their
present jobs.
b. Development involves teaching managers and professional employees broader
skills needed for their present and future jobs.
i. Phase one of the training process should include needs assessment which is an
analysis identifying the jobs, people, and departments for which training is
necessary.
ii. Phase two involves the design of training programs
iii. Phase three involves decisions about the training methods to be used.
iv. Phase four should evaluate the program’s effectiveness in terms of employee
reactions, learning, behavior transferred to the job, and bottom-line results.
2. Types of the training process
a. Orientation training is typically used to familiarize new employees with their
new jobs, work units, and the organization in general
b. Team training has taken on more importance as organizations reorganize to
facilitate individuals working together
c. Diversity training is offered by 50% of all U.S. organizations (See Exhibit 10.7)
and focuses on building awareness of diversity issues and providing the skills
employees need to work with others who are different from them.

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Chapter 10 Human Resources Management

MULTIPLE GENERATIONS AT WORK

College Students Need Soft Skills. Too

A recent study suggests that many college students expect their newly acquired hard skills, like
the ability to design a website, develop a recruiting plan, or use the latest accounting software, to
be enough to achieve success with employers. While these tangible skills are very important,
two‐thirds of respondents (corporate recruiters, business leaders, college students, and so forth)
in the study believe that hard and soft skills are equally important for success in the workplace.
College students can take steps to acquire or refine their soft skills. For example, internships can
provide them with exposure to professional organizational settings. Students who display
excellent soft skills, combined with the requisite hard skills, will increase their chances of having
promising careers.

Example 10.4 Types of training


IBM faces huge learning hurdles every day in helping new IBM employees, who are spread out
across the globe, to understand IBM’s culture and decision-making process, not to mention
gaining the technical skills they need to do their jobs. Fortunately, IBM@Play, a new Internet-
based simulation, allows new IBM employees the opportunity to learn real-life working skills
such as signing up for benefits, developing code as part of a global team, and ramping up sales
skills before they meet IBM clients. The virtual worlds of IBM@Play are as effective in China
and India as they are in the United States and the game.

MANAGEMENT IN ACTION –

Progress Report

How Google Hires and Trains

Just as Google built its business on sorting through vast amounts of data to provide computer
users the information they need, Google’s approach to hiring and training is based on analyzing
data about employees. What does Google look for when hiring candidates? According to Laszlo
Bock, Chief People Officer, it boils down to the following attributes: 1) ability to learn and apply
knowledge to solve problems, 2) willingness to lead and follow others, 3) humility when faced
with new or opposing information, and 4) desire to take ownership and defend ideas.
• Discuss why you think Google wants to hire people who possess the four attributes mentioned
above.
Google needs employees who are quick to learn and apply problem-solving skills. In a world of
consistently changing technology, it is important for tech firms to hire employees who are on the
cutting edge of innovation. Moreover, these employees need the ability to lead and follow when
necessary in order to increase competitive advantage based on human capital. This includes the
ability to take seriously new or opposing information in order to assist in the innovation process
at the organization. Lastly, those individuals contributing new ideas should take ownership of
them and defend them as they may very well be the ideas that will change the future.

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Chapter 10 Human Resources Management

• How could Google’s approach to management training address the training needs of its
nonmanagement employees?
For management employees, Google studied data from employee surveys, managers’
performance appraisals, and nominations for best-manager awards to identify management
behaviors associated with success. The trainers then developed programs to teach each of the
behaviors identified and recommended programs to managers based on their individual
performance. The company could segment employees by type of job or function and compile
similar information from performance appraisals and coworker feedback about the kinds of
employees who contribute most. It could use the data to create training programs teaching the
skills most important for particular jobs and functions.

IV. PERFORMANCE APPRAISAL


POWERPOINTS
Slide 19 Performance Appraisal
Slide 20 Exhibit 10.6 Example of BARS for Evaluating Quality
Slide 21 MBO and 360-degree Methods
Slide 22 Useful PA Interview Format

LO 5: Explain alternatives for who appraises an employee’s performance.

o Performance appraisal is the assessment of an employee’s job performance.


o Performance appraisal has two basic purposes:
• Administrative purposes
• Developmental purposes.

A. What do you appraise?

1. Trait appraisals involve subjective judgments about employee performance. They


contain dimensions such as initiative, leadership, and attitude, and ask raters to
indicate how much of each trait the employee possesses.
2. Behavioral appraisals focus more on observable aspects of performance. They focus
on specific, prescribed behaviors, which can help ensure that all parties understand
what the ratings are really measuring. (Exhibit 10.6).
3. Results appraisals focus on production data such as sales volume, units produced, or
profits. Management by objectives (MBO) involves a subordinate and a supervisor
agreeing in advance on specific performance goals.
4. In choosing an appraisal method, the following guidelines may prove helpful:
a. Base performance standards on job analysis.
b. Communicate performance standards to employees.
c. Evaluate employees on specific performance-related behaviors rather than on a
single global or overall measure.
d. Document the PA process carefully.
e. If possible, use more than one rater.
f. Develop a formal appeal process.
g. Always take legal considerations into account.

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Chapter 10 Human Resources Management

B. Who should do the appraisal?

1. Managers and supervisors are the traditional sources of appraisal information since
they are often in the best position to observe an employee’s performance.
2. Peers and team members see different dimensions of performance.
3. Internal and external customers are also used as sources of performance appraisal
information.
4. Self-appraisals help increase the employee’s involvement in the review process and
are a starting point for establishing future goals.
5. A 360-degree appraisal is a process of using multiple sources of appraisal to gain a
comprehensive perspective on one’s performance.

Example 10.5 360-degree appraisal


Wright & Wright architectural partners, Clare and Sandy Wright set out to adapt the 360-degree
feedback method for their 15-strong practice. To prepare for the appraisal, staff members write a
review of their own performance, choose two colleagues to do the same. These are then
discussed in the review. Together they set five goals to be achieved during the next six months
and agree on training or other needs.5

C. How do you give employees feedback?

1. Providing growth and development requires understanding and support; however, the
manager must be impersonal and be able to make tough decisions.
2. A useful PA interview format to use when an employee is performing below
acceptable standards is as follows:
a. Summarize the employee’s specific performance.
b. Describe the expectations and standards, and be specific.
c. Determine the causes for the low performance; get the employee’s input.
d. Discuss solutions to the problem, and have the employee play a major role in the
process.
e. Agree to a solution.
f. Agree to a timetable for improvement.
g. Document the meeting.
3. Follow-up meetings may be needed. Guidelines for giving feedback to an average
employee:
a. Summarize the employee’s performance, and be specific
b. Explain why the employee’s work is important to the organization.
c. Thank the employee for doing the job.
d. Raise any relevant issues, such as areas for improvement.
e. Express confidence in the employee’s future good performance.

5
Building Design. “Invest in your staff is the golden rule.”, March 16, 2007, pg. 16.

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Chapter 10 Human Resources Management

CONNECT
Click and Drag: Employee Selection, Training, and Appraisal
(Keyboard navigable alternate version available.)

SUMMARY
Human Resource (HR) activities are varied and impactful! Meeting an organization’s staffing
needs requires human resources planning based on the overall plans of the organization. After
recruitment efforts, selection is a critical HR activity. Applicants must be screened and decisions
made to ensure that people hired are a “good fit” for their jobs. In today’s competitive and
rapidly changing business world, the skills a person is hired with are likely to become obsolete.
Ongoing training is critical, as is developing employees in other areas such as teamwork and
diversity. Assessing an employee’s performance is known as performance appraisal. This is
another critical task, and there are several modern approaches to this, among them is a 360-
degree appraisal.

ACTIVITY
In this exercise, students match employee descriptions with the HR functions of selection,
training, and appraisal.

CLASS DISCUSSION IDEAS


Instructors may wish to spark further discussion and understanding by having students debate
that a particular function (selection, training or appraisal) is the most important of the three. As
with all HR activities, the discussion can also take into account legal and ethical expectations.

CONNECT
Sequencing: Putting HR Planning in Perspective
(Keyboard navigable alternate version available.)

SUMMARY
The Human Resources (HR) planning process occurs in three stages: planning, programming,
and evaluating. HR managers need to know the organization’s business plans to ensure that the
right number and types of people are available—where the company is headed, in what
businesses it plans to be, what future growth is expected, and so forth. Also, the organization
conducts programming of specific human resources activities, such as recruitment, training, and
layoffs. In this stage, the company’s plans are implemented. And, human resources activities are
evaluated to determine whether they are producing the results needed to contribute to the
organization’s business plans.

ACTIVITY
In this activity, students place the components of the HR planning process in sequential order
and identify the activities that occur at each stage.

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Chapter 10 Human Resources Management

CLASS DISCUSSION IDEAS


Asking students what, if any, legal expectations impact the identified activities could expand on
this exercise. Alternatively, groups could present the importance of each of the planning steps.

V. DESIGNING REWARD SYSTEMS


POWERPOINTS
Slide 23 Exhibit 10.8 Factors Affecting the Wage Mix
Slide 24 Exhibit 10.9 Pay Structure
Slide 25 Incentive Systems and Variable Pay
Slide 26 Employee Benefits
Slide 27 Legal Issues in Compensation and Benefits

LO 6: Describe the fundamental aspects of a reward system.

A. Pay decisions (See Exhibits 10.8 & 10.9)

1. Pay level refers to the choice of whether to be a high-, average-, or low-paying


company.
2. Pay structure decision is the choice of how to price different jobs within the
organization.
3. Individual pay decisions concern different pay rates for jobs of similar worth within
the same family.

B. Incentive systems and variable pay

1. Individual incentive plans consist of an objective standard against which a worker’s


performance is compared. It is the most common type of incentive plan.
2. Gainsharing plans concentrate on saving money.
3. Profit-sharing plans give employee incentives based on unit, department, plant, or
company productivity.
4. Merit pay systems are used when objective performance measures are not available,
but the company still wants to base pay on performance.

Example 10.6 Incentive pay systems


Many people bemoan the lack of pay for teachers, but one school in Lafayette, California is
doing something about it. After losing many of her best teachers because of low pay and high
housing costs, Dorothy Stewart asked the parents of the children at the New Firehouse Day Care
Center for $1,000 extra in tuition each year. That money is given directly to teachers who stay
for the entire educational progression of the children, typically about five years. Teachers who
stay get a lump sum of around $30,000—often enough to help with a down payment on a house.6

C. Executive Pay and Stock Options


6
Nevius, C.J. “A lesson in keeping top teachers.” San Francisco Chronicle, August 9, 2005, pg. B1.

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Chapter 10 Human Resources Management

1. The gap between the executive pay and the average pay of employees has widened
considerably.
2. The fasted growing part of executive compensation comes from stock options.

D. Employee benefits

1. Three basic required benefits are:


a. Workers’ compensation
b. Social security
c. Unemployment insurance

2. A large number of benefits are not required but employer-provided:


a. Pension plans
b. Medical and hospital insurance

3. The Affordable Care Act is changing requirements for employers, in that health
insurance is now required to be offered to employees or companies will face fees to
offset the cost of government subsidies for employees who must purchase their own
insurance.

4. The cafeteria benefit program is an employee benefit program in which employees


choose from a menu of options to create a benefits package tailored to their needs.

5. The flexible benefits program is a benefit program in which employees are given
credits to spend on benefits that fit their unique needs

E. Legal Issues in Compensation and Benefits

1. The Fair Labor Standards Act (FLSA) of 1938 set minimum wages, maximum hours,
child labor standards, and overtime pay provisions.
2. The Equal Pay Act (EPA) of 1963 prohibits unequal pay for men and women who
perform equal work.
3. Comparable worth doctrine implies that women who perform different jobs of equal
worth, as men should be paid the same wage.
4. The Pregnancy Discrimination Act of 1978 states that pregnancy is a disability and
qualifies a woman to receive the same benefits that she would with any other
disability.
5. The Employee Retirement Income Security Act (ERISA) of 1974 protects private
pension programs from mismanagement.

F. Health and safety

The Occupational Safety and Health Act (OSHA) of 1970 requires employers to pursue
workplace safety.

CONNECT

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Chapter 10 Human Resources Management

Video Case: Strategic Human Resources Management at Best Buy

SUMMARY
Human resources management (HRM) has assumed a vital strategic role in recent years as
organizations attempt to compete through people. Firms can create a competitive advantage
when they possess or develop human resources that are valuable, rare, inimitable, and organized.
New approaches to the management of people may be needed to unlock employee potential and
maximize the organization’s competitive position.

The video case features Best Buy’s innovative approach to HR. Their ROWE system allows for
work from home and the elimination of set hours. While there have been naysayers, the system
has increased productivity.

ACTIVITY
After viewing the three-minute video, students are directed to answer a series of multiple-choice
questions that identify the HR areas of activities that the Best Buy system impacts.

CLASS DISCUSSION IDEAS


Post the following questions to the class: Will the ROWE system work at other organizations?
Are there other cost savings that ROWE can contribute to? The video only highlights
advantages, what if any issues might a system such as ROWE generate?

Teaching Tip
Before starting class, look up the minimum wage and labor laws for your state by going to
http://www.dol.gov/dol/topic/wages/

CONNECT
Manager’s Hot Seat: Workplace Aggression
SUMMARY
The nine-plus minute Hot Seat video features an employee discussing a personal safety concern.
Glenn Lamar, Managing Director of PaperKlip Office Supplies, is conducting a grievance
meeting with Gloria Westfield, a senior executive who has reported feeling physically threatened
by a male subordinate. During the meeting various things occur: the male subordinate, John
DiMaggio, knocks on the door and requests permission to participate having learned the meeting
was about him.

The video touches on the concept of employee safety and hints at sexual harassment and
insubordination.

ACTIVITY
After viewing the video, students are directed to answer a series of multiple-choice questions that
point to motivation, justice, and procedure.

CLASS DISCUSSION IDEAS

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Chapter 10 Human Resources Management

Ask students what they would do if they were Glenn. While Glenn is supportive in the
discussion, are there any hints that he will not address the issue?

CONNECT
Self-Assessment: Performance Appraisal Characteristics Questionnaire

SUMMARY
This self-assessment looks at the potential for legal exposure from an appraisal methodology.
This exercise may be challenging for students that have limited organizational experience.
Students may need to consult an acquaintance or classmate with assessment experience to
complete the exercise.

ACTIVITY
Students are instructed to consider a specific appraisal situation and answer a series of 15
multiple-choice questions. Questions are scored, and compliance concerns regarding the
assessment are be highlighted.

CLASS DISCUSSION IDEAS


To facilitate classroom discussion, ask students to discuss how even the appearance of having an
inappropriate appraisal system can be harmful to on an organization.

CONNECT
Self-Assessment: The Prediction of Rating Error—Part A

SUMMARY
Research indicates that the people who commit leniency bias tend to commit the error across
rating situations (e.g., no matter whom they are rating). In essence, some people feel relatively
more discomfort in giving negative feedback than others. The PADS is an instrument that
assesses the level of discomfort in giving performance feedback and taking performance-related
action. Because of the anticipated discomfort, raters are more likely to take steps to avoid the
anticipated discomfort if they can do so. Thus, as supervisors, they are more likely to rate in a
lenient manner in order to avoid the discomfort that may result from giving a more accurate but
more critical review. The first of two PADS rating instruments are presented in this exercise.

ACTIVITY
Students are asked to consider their level of discomfort in particular situations across 12
multiple-choice questions and then calculate their performance appraisal discomfort scale score.

CLASS DISCUSSION IDEAS


The instructor may extend the discussion by asking if students feel the PADS instrument is
reliable and valid. Alternatively, a class discussion may be conducted to develop actions that
may lessen appraisal discomfort.

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Chapter 10 Human Resources Management

CONNECT
Self-Assessment: The Prediction of Rating Error—Part B

SUMMARY
This self-assessment presents an alternative form of the PADS instrument introduced in the
previous assessment.

ACTIVITY
Students answer ten questions in which they must select one of two answers. Responses are
scored to calculate their PADS score.

CLASS DISCUSSION IDEAS


The instructor may extend the discussion by asking if students feel the PADS instrument is
reliable and valid. Alternatively, a class discussion may be conducted to develop actions that
may lessen appraisal discomfort. If both PADS self-assessments are assigned, students may be
asked to discuss which format is “better” and why.

VI. LABOR RELATIONS


POWERPOINTS
Slide 28 Labor Relations
Slide 29 Exhibit 10.10 Determinants of Union Voting Behavior
Slide 30 Right to Work
Slide 31 Exhibit 10.11 Decline in Union Membership—1948 to 2013
Slide 32 Management in Action
Slide 33 In Review

LO 7: Summarize how unions and labor laws influence human resources management.

A. Labor relations is the system of relations between workers and management

B. Labor laws

1. The National Labor Relations Act ushered in an era of rapid unionization by:
a. Declaring labor organizations legal.
b. Establishing five unfair employer labor practices.
c. Creating the National Labor Relations Board (NLRB).
2. The Labor-Management Relations Act protected employers; free-speech rights
defined unfair labor practices by unions and permitted workers to decertify a union as
their representative.
3. The Labor-management Reporting and Disclosure Act swung the public policy
pendulum midway between organized labor and management and was designed to
curb abuses by union leadership and rid unions of corruption.

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Chapter 10 Human Resources Management

C. Unionization

1. Through a union organizer or local union representative, workers learn what benefits
they may receive by joining.
2. Why do workers vote for a union?
a. Economic factors.
b. Job dissatisfaction.
c. Can obtain desired benefits can generate a pro-union vote.
d. Image can determine whether a dissatisfied worker will seek out the union.

D. Collective bargaining

1. Arbitration uses a neutral third party to resolve a labor dispute.


2. Union shop is an organization with a union and union security clause specifying that
workers must join the union after a set period of time.
3. Right-to-work states that workers have a right to work without joining a union.

Example 10.7 Collective bargaining


In 2012 there were 19 major work stoppages (strikes or lockouts involving 1,000 or more people)
in the United States. Overall, 148,000 workers were involved in work stoppages during this
period.7

E. What does the future hold?

1. In recent years, union membership has declined to about 11 percent of the U.S. labor
force.
2. Elimination of inefficient work rules, the introduction of profit sharing, and a
guarantee of no layoffs were seen as a big step toward a fundamentally different,
cooperative long-term relationship.
3. Organizations are searching for ways to obtain, retain, and engage their most valuable
resources: human resources.

CONNECT
Self-Assessment: Attitudes Towards Unions
SUMMARY
This exercise assesses attitudes toward unions in general and the extent to which these attitudes
are grounded in fact.

ACTIVITY
Students answer 37 true-false questions. Each response provides feedback to help students
understand if their beliefs are based on fact.

CLASS DISCUSSION IDEAS

7
Bureau of Labor Statistics. “Major work stoppages.” Retrieved from http://www.bls.gov/wsp/ November 7, 2013.

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Chapter 10 Human Resources Management

A discussion could be centered on the question of why union perceptions may have been
incorrect and if unions are still relevant today. A more general discussion could be had regarding
how perceptions may be formed and their impact.

MANAGEMENT IN ACTION

Onward

Google Gears Up for More Labor Market Competition

Google is now facing competition for hiring the best employees from other hot high-tech
companies such as LinkedIn and Dropbox. How will Google keep its employees from leaving
for these and other firms? One way Google has addressed this issue is through lucrative
compensation, but tech workers care also about the excitement of helping to build something
new. Google uses its expertise to analyze the working conditions and benefits that matter most to
employees. The company also analyzed data about attrition among female employees to find out
what would keep them onboard.
• How is Google’s approach to employee benefits more effective than a simple decision to offer
the biggest benefits package?
Knowledge workers care about more than compensation. Simply piling on benefits would add to
Google’s costs without necessarily making employees more likely to stay. Google’s approach
ensures that what the company spends on benefits will deliver results in the form of highly
engaged employees.
• Do you think Google’s HR strategy will enable it to maintain a competitive advantage? Why or
why not?
Answers will vary. In explaining their opinion, students should consider the validity and
reliability of Google’s measurements, the competition for labor, and the considerations that
influence tech workers in deciding where they want to work. They also should consider whether
Google’s use of data for HRM decisions is something it can do better than other firms trying to
hire and keep the same kinds of employees.

BOTTOM LINE
How might an organization identify candidates with innovative ideas?
Answers will vary, and thinking about this question introduces the relevance of selection
methods, discussed next. It’s not enough simply to hire outside candidates, because not every
outside candidate will be equally creative or have the necessary knowledge to apply innovation
constructively. Some methods that could help would be to develop a culture and reputation as an
organization that values and rewards creativity (which would attract candidates with this
strength), to express in recruiting messages the value placed on creativity, and in selection
interviews, to ask candidates to describe situations in which they have been creative or to answer
questions about how they would solve a problem creatively. Especially for management jobs,
candidates may be able to discuss issues they know the company is facing and provide some
general ideas about how they would address that situation.

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Chapter 10 Human Resources Management

How might you measure quality improvements from training salespeople?


Answers will vary. This question applies an important point about training: it should be
conducted not just to add to knowledge, but to give employees knowledge and skills they will
use to deliver better performance. In the case of salespeople, the quality of their performance will
be reflected in how much they sell, the extent to which sales growth is greatest in the company’s
most profitable offerings, and the satisfaction and loyalty customers have after dealing with the
salespeople. The first two quality measures readily show up in the company’s sales and expense
reports. Customer satisfaction and loyalty could be measured with surveys or assumed from the
level of repeat business.

What kind of feedback is most likely to be effective?


The text mentions feedback that is specific and constructive—that is, related to clear goals for
behaviors and intended to help the employee improve. Also, feedback is more likely to be
meaningful, and therefore effective, if the employee has a chance to respond to it and engage in a
two-way discussion.

Think about the activities of a store employee. What could a Walmart employee do to earn a
bonus for meeting quarterly profit goals?
Answers will vary. Some students will be more familiar than others with the work of a retail
employee, but every student should have observed store workers at some point. Some hourly
employees in a Walmart store might be able to meet profit goals by boosting sales, say, by
helping customers locate products they are looking for, by helping them make a selection (say, in
the electronics department), or even by projecting a positive attitude that makes the store a
desirable destination for shoppers. Hourly employees also could help meet profit goals by
minimizing costs—for example, by working efficiently in the checkout lanes, by handling
merchandise carefully to avoid breakage, and by suggesting ways to minimize losses to theft.
Students may have other ideas as well. The point is that incentive pay can give employees an
additional reason to care about helping the company perform better in terms of all the value
drivers. The assumption is that they will care, so they will look around to think of ways to
improve.

What benefits have you received from an employer? Did you ever consider the cost of those
benefits?
Answers will vary. The objective of this question is to raise students’ awareness of the extent of
employee benefits, as well as the problem that employees don’t always give much thought to the
cost of offering this type of compensation.

SOCIAL ENTERPRISE
Are Business School Graduates Willing to Work for Social Enterprises?
The social enterprise industry in the United States is larger than one might imagine. One estimate
suggests that it employs over 10 million people and generates annual revenues of $500 billion.
To fuel additional growth, more individuals will be needed to work for organizations that use
commercial strategies to support social initiatives. There is good news on this front. A study of
MBA students found that over 97 percent of them were “willing to forgo financial benefits to

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Chapter 10 Human Resources Management

work for an organization with a better reputation for corporate social responsibility and ethics.”
On average, the MBAs were willing to give up 14 percent of their expected income.
1. Assume you were the manager of a social enterprise like Greenling. How would you go
about attracting individuals to work for your organization?
It is important that individuals are found that believe in the mandate of Greenling, and are
willing to forgo certain financial benefits in order to work for a social enterprise. This is why
the mission of the organization should be widely publicized so that individuals are aware of
what the mission is and can be attracted to that mission. Moreover, Greenling can also
advertise to students at universities in order to provide them with a job in doing something
good that may not have the highest pay for someone that may be inexperienced.

2. To what degree would you or your fellow students consider working for a social
enterprise?
Answers will vary here. Students should provide reasoning behind why they would consider
working for a social enterprise.

LECTURETTES
LECTURETTE 10.1: EO/AAP
EEO/AAP DEFINED

1. Equal Employment Opportunity (EEO) legislation makes it unlawful to discriminate on the


basis of age, sex, race, color, religion, or national origin in all employment practices
including hiring, firing, layoffs, promotions, wages, training, disciplinary action, and other
terms, privileges, conditions, or benefits of employment.
2. Affirmative Action Programs (AAPS) are those positive, affirmative programs by which
employers strive to achieve equal employment opportunities for all employees and
prospective employees.
3. As a general rule, all jobs must be made available to all qualified applicants unless the
employer can prove that age, sex, race, religion, or national origin is a Bona Fide
Occupational Qualification (BFOQ), which is necessary to the operation of the enterprise.
For example, in some cases, sex may be a BFOQ for reasons of authenticity (actress, actor)
and moral standards (restroom attendant).

MAJOR EEO LEGISLATION

1. Title VII of the Civil Rights Act of 1964, as amended in 1972, and the Equal
Employment Act of 1978-outlawed discrimination in employment decisions based on
race, color, sex, religion, and national origin for employers of 15 or more employees in
both the public and private sectors.
2. Executive Orders 11141, 11246, and 11375 outlawed discrimination in employment
decisions, based on age, sex, race, religion, and national origin for federal government
contractors and subcontractors.

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Chapter 10 Human Resources Management

3. Equal Pay Act of 1963—outlaws wage discrimination on the basis of sex and requires equal
pay for equal work.
4. Pregnancy Discrimination Act of 1978—amends Title VI and requires pregnancy/maturity to
be treated as any other significant disability.
5. Age Discrimination Act of 1967, as amended in 1978, 1986, and 1988—outlaws employment
discrimination on the basis of age (40 or older).
6. Rehabilitation Act of 1973 as amended in 1986—outlaws discrimination on the basis of
employee physical and mental handicaps.
7. Vietnam-Era Veteran's Readjustment Act of 1974—requires affirmative action for Vietnam-
era veterans and disabled veterans.
8. Americans with Disabilities Act of 1989—outlaws discrimination in employment of
employees with a wide range of disabilities.8

LECTURETTE 10.2: The Pros and Cons of Employee Turnover

A FRAMEWORK FOR ANALYZING EMPLOYEE TURNOVER

1. Employee turnover is inherently costly, and employers should carefully document those
costs.
2. Employee turnover is a controllable and manageable challenge for today's manager.
3. Employee turnover has both positive and negative implications for leavers as well as stayers.
4. Employee turnover can have potentially positive implications, creating promotion and hiring
opportunities, infusing new ideas and technology, and eliminating poor performers.
5. Lack of employee turnover can create its own unique problems, such career-blockage, to
entrenching obsolete practices and accumulating poor performers.
6. Employee turnover has societal implications.
7. Employee turnover is an important factor to be included in corporate long-term planning.

POSITIVE CONSEQUENCES OF EMPLOYEE TURNOVER

1. Positive Consequences for the Organization

➢ The opportunity to replace leavers with superior performers.


➢ The opportunity for the infusion of new knowledge and new technology through
replacements.
➢ The stimulus for changes in policy and practice.
➢ Increased opportunity for internal mobility.
➢ Increased structural flexibility.
➢ Potential decrease in other "withdrawal" behaviors including absenteeism, tardiness,
apathy, sabotage, and poor work quality.
➢ Opportunities for cost cuts, consolidation, and downsizing.

8 1 Adapted from Andrew Abrams and Gary Tidwell, “Affirmative Action," Business & Economic Review, October- December 1989,
27-29; Aaron Bernstein, 'Comparable Worth: It's Already Happening," Business Week, April 28,1986, 52-54; Gene Burton and Dev
Pathak, “101 Ways to Discriminate Against Equal Employment Opportunity," Advanced Management Joumal, Autumn 1976, 22-30;
James Higgins, The Management Challenge (New York: Macmillan Publishing Company, 1991), 351-352; Stephen Wermeil, “High
Court's Affirmative Action Milestones," The Wall Street Journal, March 26, 1987, 3.

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Chapter 10 Human Resources Management

➢ Reduction of entrenched conflict.

2. Positive Consequences for Individual Leavers

➢ Increased earnings.
➢ Career advancement.
➢ Better person-organization “fit” – better use of skills/interests and less stress.
➢ Renewed stimulation in a new environment.
➢ Attainment of non-work values.
➢ Increased self-efficacy perception.
➢ Self-development.

3. Positive Consequences for Individual Stayers

➢ Increased opportunity for internal mobility.


➢ Stimulation and cross-fertilization from new coworkers.
➢ Increased satisfaction.
➢ Increased cohesion.
➢ Increased commitment.

4. Positive Consequences for Society

➢ Mobility to new emerging industries is essential to continued economic growth.


➢ Reduced income inequities.
➢ Reduced unemployment and welfare costs in a declining labor market.
➢ Decreased stress-related job costs.

NEGATIVE CONSEQUENCES OF EMPLOYEE TURNOVER

1. Negative Consequences for the Organization

➢ Increased costs of recruitment, selection, hiring, assimilating, and training replacements.


➢ Out-processing costs include separation pay and the potential costs of group performance
decline both prior to and after separation.
➢ Disruption of social and communication structures.
➢ Productivity loss during replacement and retraining.
➢ Loss of high performers.
➢ Decreased satisfaction among stayers.
➢ Negative PR from leavers.

2. Negative Consequences for Individual Leavers

➢ Loss of seniority and related perquisites.


➢ Loss of non-vested benefits.
➢ Disruption of family and social systems.
➢ The "Grass is Greener" phenomenon and subsequent disillusionment.

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Chapter 10 Human Resources Management

➢ Inflation-related costs (e.g., mortgage cost).


➢ Transition-related stress.
➢ Disruption of spouse's career path.
➢ Career path regression.

3. Negative Consequences for Individual Stayers

➢ Disruption of social and communication patterns.


➢ Loss of functionally valued coworkers.
➢ Decreased satisfaction.
➢ Increased workload during and immediately after a search for a replacement.
➢ Decreased cohesion.
➢ Decreased commitment.

4. Negative Consequences for Society

➢ Increased costs of production.


➢ Regional inability to keep or attract an industry.9

DISCUSSION QUESTIONS
1. How will changes in the labor force affect HRM practices for the next decade?

As stated in the text, minorities, women (especially married women), and disabled workers
will continue to play an important role in the increasingly diverse workforce. Assuming the
affirmative action and equal employment laws remain unchanged, firms will have to be
equipped to handle them. If they are substantially revised, as seems possible, then HRM
practices will have to be modified to meet the new requirements.

Regardless of whom they hire, firms will have to provide basic skills training for a growing
percentage of its workforce. Diversity training should be provided for managers to enable
them to supervise an increasingly diverse workforce.

2. Describe the major regulations governing HRM practices. Which, if any, have benefited
you? Which ones could have benefited you but were not applied?

The major regulations governing HRM practices are Title VII of the 1964 Civil Rights Act
which prohibit discrimination in employment (recruitment, hiring, discharge, layoffs,
discipline, promotion, compensation, and access to training) based on race, sex, color,

9
2 Adapted from D. Dalton and W. Todor, "Turnover Turned Over: An Expanded and Positive Re-perspective," Academy of Management
Review 4,1979, 225-235; D. Dalton, W. Todor, and D. Krackhardt, "Turnover Overstated: The Functional Taxonomy," Academy of Management
Review 7, 1, 1982, 117-123; W. Mobley. Employee Turnover: Causes, Consequences, and Control (Reading, MA: Addison-Wesley, 1982); B.
Staw, "The Consequences of Turnover," Journal of Occupational Behavior 1, 1980, 253-273; R. Steers and R. Moday, "Employee Turnover and
the Post Decision Accommodation Process," in B. Staw and L. Cummings, eds. Research in Organizational Behavior (Greewich: LAI Press,
1981).

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Chapter 10 Human Resources Management

national origin, and religion and its 1991 amendment which provided remedies for
intentional discrimination.

Other acts which come into play when considering HRM practices are the Americans with
Disabilities Act of 1990 that prohibits employment discrimination against people with
disabilities (including recovering alcoholics or drug abusers, cancer patients in remission,
and AIDS victims), and the Age Discrimination in Employment Act of 1967 (and its later
amendments) that prohibited discrimination on the basis of age.

3. How could job analysis be relevant to each of the six key HRM activities discussed in
the chapter (i.e., planning, staffing, training, performance appraisal, reward systems,
and labor relations)?

A job analysis consists of two parts. The first is the job description that identifies the
essential tasks, duties, and responsibilities of the position, and the second is the job
specification that describes the skills, knowledge, abilities, and other characteristics needed
to perform the job.

Job analysis is important in that it provides the necessary information underlying the six key
HRM activities: recruitment, selection, training, appraisal, reward systems, and out placing.
Proper job analysis is critical in order to create an accurate job description which is used to
guide each of these key activities.

4. What are the various methods for recruiting employees? Why are some better than
others? In what sense are they better? Describe some of your personal experiences.

Recruitment is the development of a pool of applicants for a job. It can be divided into two
categories: internal and external recruiting.

Internal recruiting involves considering current employees for the available position. The
chief advantages of internal recruiting are that:

➢ It costs far less to identify internal candidates.


➢ The employer already knows the individuals and is thus better able to evaluate them.
➢ Internal candidates already know the work culture and are better equipped to fit in and
can get up to speed faster.
➢ Promoting internal candidates provides a source of motivation in that employees see
upward mobility as a reward for hard, effective work.

There are two disadvantages:

➢ Internal recruiting may provide a limited applicant pool.


➢ Conducting an internal search and then awarding the position to an external candidate
may result in the de-motivation of the internal candidate(s) who may feel that they were
qualified for the position.

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Chapter 10 Human Resources Management

External recruiting tends to be far more expensive (since it usually involves advertising,
commissions to executive search firms, etc.). However, it has the advantage that it brings in
“new blood” and can be a source of innovation, new ideas, fresh perspectives, etc. The major
problem with external recruiting is that it is relatively difficult to evaluate the available
candidates. Despite extensive interviewing and testing, it is often impossible to identify the
critical weaknesses of the individual.

Different sources are used depending upon the position. For entry-level positions, college
campuses, employment agencies, and state unemployment agencies are used along with
advertisements in local newspapers. For senior management positions, firms either advertise
in publications such as The Wall Street Journal, leading national newspapers such as The
New York Times, and trade publications, or rely on specialized employment agencies and
executive search firms.

5. What is a test? Give some examples of tests used by employers that you have seen or
heard about.

A test is a critical evaluation of the candidate and normally falls into one of four classes.

➢ Performance tests—designed to measure the applicant's skills related to a specific job.


➢ Cognitive tests—designed to measure the various intellectual skills of the candidate.
➢ Integrity tests—used to measure the candidate's honesty.
➢ Drug screening tests—used to test for the presence of drugs.

6. What purpose does performance appraisal serve? Why are there so many appraisal
methods? Which have you experienced, and what do you think of how they were used?

Performance appraisal is an assessment of the employee's job performance and has three
primary uses in that it provides.

➢ Information for making decisions with regard to increases in the individual's salary,
suitability for promotion or, ultimately, for termination.
➢ Feedback to the employee to help plan career growth and development.
➢ Documentation, which can be used to support the firm's human resource decisions if
challenged in court.

A wide range of performance appraisal methods has been developed in order to meet the
complex demands of the appraisal process. Performance measures can be grouped into four
categories.

➢ Production data—units produced, sales volume, etc.


➢ Personnel data—turnover, absenteeism, accident rates, etc.
➢ Management by objectives (MBO) data—in which the employee and supervisor agree on
specific performance objectives.
➢ Judgmental data—subjective evaluations of the employee's performance (normally made
by the supervisor).

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Chapter 10 Human Resources Management

In addition, an individual can be measured against a number of different scales.

➢ Trait scales—measurement of the individual's leadership, attitudes, etc. are measured


against a numeric scale.
➢ Behavioral scales—which measure specific, relevant job skills.
➢ Comparative scales—used to make comparisons among employees.

7. What are some of the key ideas to remember when conducting a performance
interview? What mistakes and best practices have you seen?

➢ Summarize the employee’s performance; be specific.


➢ Describe the expectations and standards.
➢ Determine the cause(s) of the below standard performance.
➢ Discuss solutions to the problem(s).
➢ Agree on a solution.
➢ Agree on a timetable for improvement.
➢ Document the meeting.
➢ Have the employee sign the document to show that (a) the discussion did take place and
(b) that he or she is aware of the outcome.

On the other hand, if the employee is doing a good or excellent job then you should:

➢ Summarize the employee's performance; be specific.


➢ Explain why the employee's work is important to the organization.
➢ Thank the employee for doing a good job.
➢ Raise any issues, such as areas for improvement.
➢ Express confidence in the employee's future good performance.
➢ Document the meeting.
➢ Have the employee sign the document to show that (a) the discussion did take place and
(b) that he or she is aware of the outcome.

8. How would you define an effective reward system? What role do benefits serve in a
reward system?

An effective reward system has two main characteristics. First, it serves to attract, motivate,
and retain personnel. Second, it rewards behavior that is consistent with the strategic goals
and objectives of the organization.

Benefits are the non-salary aspects of the reward system and are divided into those that are
required by law (worker's compensation, social security, and unemployment insurance) and
those which are discretionary on the part of the company such as paid vacations, pension
plans, medical and dental insurance, educational support (for both the employee and
dependents), etc. These benefits can represent a substantial incentive to employees. For
example, an attractive medical and dental program is a major benefit to a couple with a large
family.

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Chapter 10 Human Resources Management

9. Why do workers join unions? What implications would this have for the organization
that wishes to remain nonunion?

Workers join unions because they see the relationship between management and its
employees as being an adversarial one. They see an advantage in having an organization
(representing a large number of individuals) negotiate with management on their behalf.
Rather than having to negotiate with management on their wages, hours, and working
conditions, they prefer to assign this responsibility to a union.

If an employer wishes to remain non-union, it must prove to its workforce that (a) it has the
best interests of its employees at heart and (b) there is little or nothing to be gained by paying
dues to a union. This means that it has to at least match the wages and benefits obtained by
comparable workers in a union environment.

10. Discuss the advantages and disadvantages of collective bargaining for the employer and
the employee.

The major advantage for both the employer and the employee is the ability to explore,
analyze, and better understand critical issues. Once a union contract has been negotiated, the
document provides a specific outline of the procedures and expectations. The major
disadvantage is the adversarial role that the process engenders. Another drawback is that a
negotiated document often limits the firm's flexibility in terms of rewarding superior
performance and inhibits positive change.

EXPERIENTIAL EXERCISES
EXERCISE 10.1 - THE LEGAL INTERVIEW

Objectives

1. To introduce you to the complexities of employment law.


2. To identify interview practices that might lead to discrimination in employment.

Suggested responses

1. Could you provide us with a photo for L In certain situations photos are a legal
our files? BFOQ where personal hygiene is
relevant.
2. Have you ever used another name I It is illegal to ask.
(previous married name or alias)?

3. What was your maiden name? I Irrelevant to job performance.

4. What was your wife’s maiden name? I Irrelevant to job performance.

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Chapter 10 Human Resources Management

5. What was your mother’s maiden I Irrelevant to job performance.


name?
6. What is your current address? L For mailing purposes.

7. What was your previous address? I Irrelevant to job performance.

8. What is your social security number? L For tax purposes.

9. Where was your place of birth? I Irrelevant to job performance.

10. Where were your parents born? I Irrelevant to job performance.

11. What is your national origin? I Irrelevant to job performance.

12. Are you a naturalized citizen? I Irrelevant to job performance.

13. What languages do you speak? L For job requirement.

14. What is your religious/church I Irrelevant to job performance.


affiliation?
15. What is your racial classification? I Irrelevant to job performance.

16. How many dependents do you have? I Tax deductions only.

17. What are the ages of your dependent I Irrelevant to job performance.
children?
18. What is your marital status? I Irrelevant to job performance.

19. How old are you? L BFOQ requirement/safety.

20. Do you have proof of your age (birth L BFOQ requirement/safety.


certificate or baptismal record?

21. Whom do we notify in case of an L Relates to an emergency.


emergency?
22. What are your height and weight? L If it is a BFOQ requirement.

23. Have you ever been arrested? L If it is a BFOQ requirement.

24. Do you own your own car? L If it is a BFOQ requirement.

25. Do you own your own house? I Irrelevant to job performance.

26. Do you have any charge accounts? I Irrelevant to job performance.

27. Have you ever had you salary I Irrelevant to job performance.

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Chapter 10 Human Resources Management

garnished?
28. To what organization do you belong? L If it is a BFOQ requirement.

29. Are you available to work on I Irrelevant to job performance.


Saturdays
and Sundays?

30. Do you have any form of disability? I Irrelevant to job performance.

Teaching Tip
1. It might be advisable to present a review of the materials on discrimination in employment
before assigning this exercise.
2. The individual test items can be used for a comprehensive class discussion of discrimination
in employment.
3. “Legal” interview worksheet

EXERCISE 10.2 - THE PAY RAISE

Objectives

1. To further your understanding of salary administration.

2. To examine the many facets of performance criteria, performance criteria weighting,


performance evaluations, and rewards.

Suggested responses

One option for April may be to develop a point system.


➢ Ranking: Rank each person in each category from 1 to 7 (7 being the highest/best). (EEO Status
and Personal factors need not be ranked assuming equal employment opportunity laws, as well as
affirmative action programs, are in place.
For Supervisory Skills give each person a 4 for Excellent, 3 for Good, 2 for Average, and 1 for
Poor. Add up the scores for each person and rank as one category (Supervisory Skills).
➢ Weighting: Each category will be weighted as follows: Output Rating – 4, Supervisory
Skills – 3, Seniority – 2, and Absent Rate – 1. (Output Rating is the most important,
Absent Rate being the least important.)
➢ Multiply the rank of each employee for each category by the corresponding weight for
each category and add up the results. (Example: David Bruce has the highest Seniority
(7), multiplied by the seniority weighting (2). His score for Seniority totals 14).

Distribution of the $30,000 is as follows: In this case individuals receive the following:

1st place (most points) $8,000 1st Eric Cattalini


79 points
2nd place $7,000 2nd Chua Li 67 points

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Chapter 10 Human Resources Management

3rd place $5,000 3rd Derek Thompson 58 points


4th place $4,000 4th Sarah Vickers 52 points
5th place $3,000 5th David Bruce 44 points
6th place $2,000 6th Victor Munoz 36 points
7th place (least points) $1,000 7th Marilee Miller 16 points
Total should be $30,000

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Chapter 10 Human Resources Management

Teaching Tip
It is important that the student teams achieve an allocation formula that is based on quantifiable
criteria that are directly related to work performance.

CONCLUDING CASE
Invincibility Systems

Case Summary:

Invincibility Systems has 17,000 employees who design and make aerospace and defense
equipment including missiles, rockets, and propulsion systems. They are applying the same
statistical fervor to their recruiting process that they use to determine rocket trajectories.
Using regression analysis, they determined which sources generated the most hires as well as
which new hires went on to perform well. This helps the company narrow its focus on the
most productive sources for quality employees and saves both time and money.

The HR team then used a similar approach to workforce planning. By collecting and
analyzing data on employees in each department, they can predict how many employees will
leave in the coming year and predict how many new employees need to be hired. By
conducting their analysis at the employee level, they can see when turnover might increase or
decline and which employees are most apt to leave. This is particularly important in a
company such as Invincible where employees file highly specialized and high-skilled
positions.

Chapter Topics Related to the Case:

• Discuss other factors that Invincibility Systems might take into account in its HR
planning.
• Identify any legal concerns that data analysis at Invincibility might raise.
• Identify types of training and development programs that might be developed as a result
of the company’s statistical systems and data.
• Discuss ways the company might integrate statistical measures with their appraisal and
reward systems.

Case Discussion Questions:

1. Besides the factors identified, what other factors should Invincibility Systems take into
account in its HR planning?

Suggested Responses:

Students will likely mention factors such as selection criteria, appraisals, and rewards. You
might write a list of areas that HR might measure and project it for students to read. Divide

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Chapter 10 Human Resources Management

the class into groups and have them brainstorm which topics would most benefit a company
and how they might implement a statistical measurement system to benefit the company.

2. What legal concerns does the data analysis at Invincibility raise? How should the
company address those issues?

Suggested Responses:

One of the benefits of using a statistical approach is that HR would have documented
evidence to support their decisions and actions. As long as HR is using the data to plan for
the future via hiring demand, training, and development, not to decide who to hire, they are
in little danger of legal repercussions. The company must be careful not to use knowledge
gained from statistical data to eliminate or discriminate against any potential employee.

3. Besides its use for HR planning and recruiting, how might Invincibility’s data analysis be
applied to improving the company's training programs?

Suggested Responses:

Various responses can be expected. As an example, employees could be surveyed to


determine which manager behaviors are most desirable, similar to the approach that Google
has taken. In addition, successful managers could be analyzed to determine the development
strategies that are most likely to produce other successful managers.

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Another random document with
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thinner than when I last saw you; and, it may be, less the heroine,
since there has been less to oppose me. But I hate sea voyages!
Oh sweet Valentine! hasten to us! hasten and bring to me my Lucy!
thou shalt then be crowned as the harbinger of spring and Horace.
Tell my “lily,” that we expect no tears nor sighs. She is desired to
wear the same face she did with her lilac ribbands. We are all
learning to be philosophers, except Malcolm, who is daily in danger
of losing his good humour; and rates the work people for not being at
Wenland, at the same time that they are here. I believe in my
conscience that Miss Hardcastle and Miss Howard might sleep in the
stable for him. But we do not mind his pouting; and your apartment,
which was Miss Flint’s, is to be made worthy of the captain’s guests.
Adieu, my dear girl; the good people here send their blessings with

Rachel Cowley’s.
CHAP. XIII.

LETTER LXXVI.
From Miss Cowley to Miss Hardcastle.
January 24.

My dear Lucy will not expect to find me in the broad road of folly and
laughter, with so many admonitions of wisdom as I have of late been
favoured with; I repeat the word favoured; for poor and weak must
be the mind which does not profit from such lessons as I have had to
study! Do not, however, take the alarm; I hope, I shall escape
dullness, although I am become somewhat graver than in the days of
my flippancy, and rude health. My poor Horace! But I dare not trust
myself with the subject! But is it not wonderful that no one can be
found to comfort the Earl of S——, but his son’s friend, whose heart
is pierced with an anguish as bitter and acute as his own! I am
selfish, I am ashamed to tell you that I am become fretful and
nervous. You must come, my Lucy; I want you to sustain and to chide
me. My spirits are weakened, and my mind is assailed by
apprehensions which I dare not give to you. This news from Lisbon
has been hurtful to me. I send you enclosed a letter which may make
you smile: it did not move a muscle in my face. Lady Maclairn
undertook to reply to it for me. She was obliged to answer a letter of
condolence which Mrs. Serge thought it polite to send to her “dear
cousin.” I believe her ladyship hazarded to give her correspondent a
little wholesome advice, which will be well for her if she understands
its value. Mrs. Heartley has received letters from her son Henry; he is
coming home. His friend’s death, with his dying advice to the young
man, make only a part of those motives which induce Henry to quit
his present situation. Mr. Bembridge, the deceased, has left him an
estate in Berkshire of three hundred pounds per annum; and Henry
wisely thinks, that with this provision and Mary Howard, he shall be
as rich as a Nabob, with a ruined constitution, and twenty lacks of
rupees. “He will have letters before he embarks, which will dash from
his lips this cup of happiness,” observed the anxious mother. “Miss
Howard is now in a very different situation from that, under which
my poor boy vowed to live, and to labour for her. I would not on any
account have the captain made acquainted with my son’s hopes. He
thinks Henry is right to return home; but I now wish him to remain
where he is for a few years.” “Leave him to Providence,” replied I,
“and enjoy the blessings before you. Alice will be soon happy, and
who knows whether one wedding may not be followed by another? a
little money will not spoil Mary Howard, or change Captain Flint’s
nature.” “I shall take care,” observed she thoughtfully, “to prevent
Henry from coming hither; I wish Alice were settled, I should
immediately go to town, and wait there for my son’s arrival.” Cannot
you, Lucy, find out whether Mary’s colour is yet lilac. Alice thinks it
is; but we may be conjecturing on false grounds; for Alice Heartley
and Rachel Cowley are very simple girls; yet I do believe the captain
wishes to see Henry united to him by the tenderest ties. He even
proposed the other day to Malcolm to wait for his brother’s arrival
before he married. Malcolm smiled; but declined the advice.
You saw enough of our doctor, when you were at Farefield, to enter
into the spirit of my allusion, when I call him the sun which cheers
us. We may say with truth that we live in his smiles. Should you
fancy this expression too poetical to suit with Douglass’s stern face, it
is because you have not seen him when with a patient who he thinks
wants comfort more than medicine. Did they inform you that he
never quitted my room during six and thirty hours? Horace will love
him, Lucy, and you will be grateful. Amongst other ingenious
hypotheses which he maintained this morning was one that will
please you; for he proved to demonstration that Miss Cowley “had
the strength of a horse.” He has been scolding me for this last hour;
and has provoked me to laugh at him and myself.
Oh! how tedious are the hours till I hear from you. Mrs. Allen
sends her good wishes with your
Rachel Cowley’s.

P. S. I am well, quite well, Lucy! my cordial in my bosom! Do not


mind a word in this letter. Douglass will triumph. He predicted how
it would be; when the wind blew propitiously.
LETTER LXXVII.
From Mrs. Serge to Miss Cowley.
My Dear Miss Cowley,

It would give me inexpressible concern, could I for a moment


believe that you “himagine” I have forgotten you, or the promise I
made you, when at Farefield Hall. You can be no stranger to the
“hevents” which have taken place in my family since that time; and of
course these will account to you for my “happarent” neglect. I have
endeavoured to practise what I preach, which is more, as Mrs.
Dangle says, than many who are paid for preaching do; for, as I have
said in my letter to Lady Maclairn, I see that nothing good comes
from sorrowing for those who are removed from this world. Death is
appointed for all; and the best thing we can do is to submit to the
loss of our friends and relations, who are summoned away before us.
I dare say the death of Mr. Flamall has made her ladyship very
unhappy, but time will restore her spirits, unless she do as my Jerry
“do,” yield to grief, and mope in her room. My kind friend, Mrs.
Dangle, would not permit me to remain at Putney, where it was
impossible I could have recovered my spirits. She has a charming
house in the Haymarket; and since I have been her guest, I am much
better; and indeed should be quite well, were it not for the vexation
Nora “give” me. You will be quite astonished to see the halteration a
few months of matrimony “have” made in her; and it will give you a
dread of love matches! But I would not discourage you. Nora “have”
only to thank herself for all that “have” happened to disturb her.
Captain Fairly is not to blame, because his wife is jealous; nor Mrs.
Dangle, because her constant good humour “make” her the favourite
with hevery gentleman. But Nora was always perverse in her temper!
she can be heasy no where now, but at Putney. When single, she
detested the place. She have been very ill; and her disappointment
have perhaps made her lower in spirits; but, as I tell her, “the worse
luck now, the better in future.” She may have children enow by the
time she is forty.
I hope, my dear Miss Cowley, nothing will prevent your visit to me
in February. Captain Fairly has, very politely, offered to be your
escort, and desires me to assure you, that he will, with the utmost
pleasure, come to Farefield to fetch you, if you will permit him to
have that honour; but I conclude you will not be allowed to leave
Mrs. Allen behind you; so that you will happoint the captain to meet
you on the road. I shall be very happy to see Mrs. Allen. She will be
nice company for Mr. Serge, in our absence. I promise you, nothing
shall be omitted for your amusement. Mrs. Dangle is quite in polite
life; and she engages to “hintroduce” you every where. You will meet
the best company at her table; for her husband is never happy
without society. There is a Major Ogle in love with you only from
description. He says, that I have entangled his heart, and that he
must be our shadow; therefore, we shall not want for a beau, nor one
that half the women in London are dying for.
I would advise you not to make up any thing when you are for your
journey; it would be only so much labour lost. But it may not be
amiss for you to begin to accustom yourself to fewer petticoats. We
wear here only one. But we have found out vays and means to obviate
the mischief of going unclothed, and we contrive to keep ourselves
warm; but this, as Mrs. Dangle says, is a secret haunter nu; for if the
gentlemen knew you were in the habit of wearing small clothes whilst
single, they might fear for their privileges when you married. You
will be delighted with this charming woman. She is the counter-part
of you, only she has seen more of polite life, since her marriage, than
you have been in the vay of seeing at Farefield; which, to say the
truth, is a sad place for such a young lady as Miss Cowley.
I remain in the expectation of hearing from you the time fixed for
seeing you; and I shall be impatient till I can show you that I am your
affectionate friend,

Lydia Serge.

P. S. You need not be under any fear of meeting that disgrace to


me, Lydia. I have not seen her since her leaving Putney, nor will I
ever again hacknowledge her as my child. Jerry may be as obstinate
as he please. So will I, on this point. You will be astonished to hear,
that he have set up the feller who married her like a gentleman, and
even sent down a postchay for his lady’s use. I see into this malice. It
is all done to spite the captain, whom he hate. I am sorry to say,
Nora’s foolish complaints have done no good. I am sure, I can see
nothing in the captain that would not please any reasonable woman;
and to me, his behaviour is always hattentive and respectful. You
need not shew this letter to my cousin; Sir Murdoch have made her
quite a methodist.
What a shocking end Flamall have made! But he was always as
proud as Lucifer.
CONCLUDING CHAPTER.

Having faithfully performed my pleasing task, and exerted my best


abilities to recommend myself to my readers, I do honestly confess,
that I am gratified by finding that something remains, in which my
services may be useful to their curiosity. Except two letters, from
Miss Cowley to her correspondents at Heathcot, nothing appears of
sufficient consequence to this work, they being confined solely to
Miss Hardcastle’s and Miss Howard’s journey to Farefield; which
they reached in the month of February.
It remains with me, consequently to supply a few pages to this,
otherwise abrupt conclusion of a work, already reprehensible in the
critic’s eye.
My readers may be able to recollect the name of Montrose, the
early friend of Mr. Philip Flint, who, with his sister, the wife of Mr.
Lindsey, shared in his confidence, with the truth and ardour of
youthful zeal and friendship, during his progress to Miss Sinclair’s
heart.
To this gentleman am I at present indebted for a situation in life
which I would not exchange for the most brilliant which this world
has to give. For I am sheltered from “the proud man’s contumely,”
and “the pang which the worthy of the unworthy takes.” I was in my
friend’s hospitable house at the shocking termination of Mr.
Flamall’s life. This event produced many changes in favour of those,
to whom he had been more obnoxious than useful. My brother
Lindsey, was immediately placed in Mr. Flamall’s office, as this
regarded Miss Cowley’s property on the island; and Mr. Flint, with
Counsellor Steadman’s advice and concurrence, relieved her, by an
appeal to Chancery, from the restrictive clauses in her father’s will,
they being her appointed guardians until she was of age.
In the mean time, I was judged capable of educating the young
Cowley’s. Their gentle and interesting mother had formed an
intimacy with my sister Lindsey, during the time they resided under
the same roof, at Mr. Dalrymple’s; and to judge of the future by the
present, these friends will never have but one and the same roof.
In the hours of confidence, which succeeded to their first
acquaintance, Marian informed Mrs. Lindsey, of her motives for
withdrawing from Mr. Flamall’s authority and power, by quitting an
abode she loved. He had importuned her with his passion even
before Mr. Cowley’s death; and she held him in abhorrence and
terror. She made no doubt of the illegality of Mr. Cowley’s will, he
having repeatedly told her that she would find a protector and a
guardian for her sons in Mr. Oliver Flint; and from the moment she
was informed of Mr. Flamall’s authority, she determined never to
lose sight of her children. Mr. Philip Flint befriended her, because
Juba had told him that I was afraid of his uncle. Her entire
concurrence in committing her children to my care; her confidence
in my integrity, led her cheerfully to part with them, and we reached
England in safety; where my trust was sanctioned by their expecting
sister and maternal friend.
From that hour I have experienced the comforts of a home,
endeared to me by all that can give zest to rational pleasure with an
undepraved heart. Montrose was understood as a man to be trusted;
although, to say the truth, my friends appear to be governed by
motives, not unlike Bassanio, when he decides on the casket.—
“Thou meagre lead,
Which rather threat’nest than dost promise aught;
Thy plainness moves me more than eloquence,
And here I chuse.”

In giving up to my discretion her correspondence with Miss


Hardcastle, during her residence at Farefield, Mrs. Hardcastle added
those occurrences which had taken place after the day which
terminated “her captivity.” “You will easily believe,” said she smiling,
“that Counsellor Steadman was as ready to resign the heiress, as I
was to be rid of the plagues of heirship; but Alice was a wife before I
left the hall; and, my dear Lady Maclairn was obliged to confess, that
life has its blessings; and, that the human heart can never want an
inlet to joy, until it has banished affection for others. She was right in
saying this; and she knows, and feels it to be truth. Mary has neither
changed her colours nor her mind with her fortune, and her uncle
prefers Henry Heartley to a rich baronet. We shall see these true
lovers united,” added she, “when at Farefield; and then Sir Murdoch
and his lady, will quit the hall for Wenland Place; where, I
confidently hope, they will find a home of uninterrupted repose.
“The Duke of S——,” continued Mrs. Hardcastle, “finding that my
Horace had enough of the good things of this world; and, well
knowing, he had a recompense in store for himself in Heaven,
contrived to be useful to Mr. Sedley, and by his interest, procured for
him a valuable crown living; and with his money secured to him the
parish, of which his uncle is the pastor, and he still the curate.”
“Such, Mr. Montrose,” added she, with seriousness, “is the present
state and condition of those persons, in whose happiness you are so
interested, and in whose sorrows, you have taken so lively a concern.
If, as you say, the whole tissue of events before you have confirmed
you in your belief of a retributive justice, it is well: as it is displayed
in this scene of action, it may be useful to others; although I am of
opinion, that not a day passes, that does not add to our conviction,
that the sinner is taken in his own snare, and the virtuous kept from
falling by a power beyond our finite reason. But as your intention
and labour will have little aid from fiction, let your fidelity, as an
historian, compensate for the absence of the marvellous. Do not omit
to say, that Philip Flint and Malcolm Maclairn are brothers, whose
hearts are not divided by the ocean which separates them. They live
in hopes of being re-united; but Mr. Flint has inherited from his
grandfather so strong a predilection in favour of the island of
Jamaica, that it would not surprise me, if he remained there until he
could man a ship with his own boys, and freight it with Sinclairs and
Lindseys. I am not quite so solicitous on this subject, as Malcolm,”
added she, “we are happy now at Wenland place: besides, let us be
content. I do not wish my deputy, your sister, to be deserted. She is
kind and gentle to my numerous dependents; and Lindsey is the
sweetener to the sugar he sends us. Heaven be praised,” continued
she, “Cowley’s slaves are yet cherished as men, though unfortunate
men! But I hate the subject.”
To these instructions I have paid due obedience; but I have passed
some weeks at Farefield Hall since writing the above.
And I think it will be no matter of surprise, much less of censure,
that I should indulge myself with a supernumerary page or two, for
the sole purpose of paying my tribute of respect to a character so
much distinguished by Miss Cowley, in her letters to her friend. Mr.
Serge was not forgotten by her, when she became Mrs. Hardcastle.
“You will see my favourite when you go to Farefield,” said she, “and
you will judge of my hasty sketches of the most simple-hearted man
who lives. Supported by the rectitude of his own mind, and a piety
which rests solely on the goodness of God, he has sustained very
severe trials, with a patience and resignation that ought to put
philosophy to the blush. The loss of his favourite daughter, the prop
of his comforts, was followed by the death of Mrs. Fairly, who, in
consequence of a severe cold taken at a place of public amusement,
to which she was reluctantly hurried, after an indisposition of a
dangerous kind, fell into a rapid decline, and was consigned to the
grave before she was one and twenty. Her, giddy, thoughtless mother
was at this melancholy period on a tour of pleasure with Mrs.
Dangle, recently become a widow; and Captain Fairly, with another
military beau were their escorts.
Poor Mr. Serge, assisted by his friends the Tomkins’s, supported
this scene, and without designing to write to his unfeeling son, or to
his foolish misled wife, sheltered his sorrows at his daughter Mrs.
Willet’s, leaving to the public papers to announce to the travellers the
event, which they might have foreseen before they left home. “But
the claims of the disconsolate widow, Mrs. Dangle, could not be
overlooked.” Mr. Maclairn and his wife joined the dejected Mr. Serge
at his daughter Willet’s; and by diverting his thoughts to the final
establishment of this child, they had the satisfaction of seeing him
improve in health and spirits. He had not, however, lost his
resentment in regard to his wife’s desertion; but with firmness
declared, that he meant to give up his house at Putney, and to live
remote from London. With these resolutions he returned to town;
and it appears that he was steady. The lady returned also from her
excursion, somewhat humbled by the reception he gave her; and
probably, shocked by the death of her child, she made concessions
which failed in their effect; for she would not submit to give up her
dear Mrs. Dangle, nor refuse Captain Fairly’s visits—points
obstinately enforced by her husband. He again returned to Mrs.
Willet’s, and found consolation. His grandson amused him; and
“honest William,” as he calls Mr. Willet, hourly rose in his
estimation. Some months passed: he resolutely refused to return
home, without an assurance that he should find his wife willing to
give up her son, Fairly, and Mrs. Dangle’s society. But this poor,
weak, and misguided woman, had too promptly acquired the lessons
they had taught her; and she was hastening on to destruction, when
an accident deprived her of life. A Major Ogle, who had his hopes
and projects, flattered by the age and vexations “of the rich old
taylor,” drove one morning Mrs. Serge an airing in his tandem from
Dangle Park, leaving his friend the noble Captain Fairly to amuse
Mrs. Dangle. Though a proficient in gallantry and gaming, the major
could not manage two high fed and spirited horses. Some linen
drying on a hedge by a cottage, frightened the leader; he became
ungovernable, the carriage was overset, and Mrs. Serge received a
blow on the temple from the horse’s foot, which killed her on the
spot; her admirer was quit with a broken arm. Mr. Serge received the
intelligence of this shocking accident with silent sorrow: he took to
his bed, and Malcolm was soon his nurse. “I have outlived my
feelings!” said the poor man to him; “I dare not tell you what are my
thoughts at this hour; but I sometimes think, it would be sinful to
sorrow, for the loss of a woman, who, had she lived, would have lived
only to have disgraced herself. She is taken from the evil company of
those who have perverted her simplicity, and made her the laugh of
their dissolute hours. But the day will come, when they will
remember having corrupted innocence, and misled ignorance: her
cause, and mine will be heard at a tribunal, they will tremble to
approach.” He now determined on his plans for his future life, and
with his usual munificence left his house and furniture at Putney for
Mrs. Tomkins’s use; and he has from that time resided at Mr.
Wilson’s, in Captain Flint’s deserted apartments; where, in the
comforts of a family attached to him, and in the society of Mrs.
Heartley, who still lives at the Abbey, he is cheerful and contented.
“When you know him,” continued Mrs. Hardcastle, “it will not
surprise you to find him, treated by his friends with an affectionate
fondness, resembling that which is given to a cherished child; but
although he may be called the pest of every house he frequents, such
is the genuine goodness of his nature, that indulgence cannot make
him forward or capricious. He does not even claim the respect due to
his age and station; and whilst the poor around him regard him as
their tutelary divinity, they love him as a neighbour, and he
converses with them like one. His loquacity will amuse you, for he
may be said to think aloud; and his gratitude to those who, in his
own words, “are kind to him,” is displayed by the minutest attention
to their ease. Though he greatly prefers an open carriage to a coach,
he keeps one because his ladies want it in bad weather; and Mrs.
Wilson is not permitted to take cold when she goes to church, for he
insists on using it as a family convenience.”
My recommendations were too powerful to be overlooked by Mr.
Serge. We we were intimate friends in an hour; and it has been a
source both of satisfaction and curiosity to me, to profit from the
frankness and openness of a mind so uncommon. I have seen that
the encroachments of age and natural infirmities may find a barrier,
without the aid of philosophy, and that in a cheerful piety a man may
find a safe refuge from the cold apathy and querulous temper of near
fourscore years, without other aid than his Bible, and a good heart.
Our conversations are long, though desultory. He frequently,
however, talks of his past sorrows and troubles. Speaking of his
daughter, Mrs. Fairly, he observed, “that from the time she married,
she resembled a poor unfledged bird, who had been ensnared within
sight of the nest, and the wing which had cherished her.” “Poor
thing,” added he, “she told me once that her husband had taught her
to love me.” I spoke of his satisfaction in regard to Mr. Willet, with
whom Mr. Maclairn was so pleased. “Yes,” replied he, “thank God,
Lydia is the wife of an honest man. I do not wish him to be such a
gentleman as Fairly. Plain cloth suits me, Mr. Montrose: I have worn
no other, since I was born; except the trimmings are, like Malcolm’s,
of pure gold, they are not ornamental in my opinion: tinsel may
decorate a fool, and set off a knave, whilst it lasts; but it will be for a
very little time. Mark what I tell you; Fairly will die in in a gaol; and
his wife, late Mrs. Dangle, will want bread, and pity into the bargain.
But I forgive them; it is my duty; and like all my Master’s burthens,
easy; for what should I gain by being unforgiving?
The other day he with much jocularity asked me whether the
witnessing so much of conjugal felicity had not put matrimony into
my head? I replied, that, on the contrary, it would probably stamp
me a batchelor for life. “How so,” asked he, “Why,” answered I, “I see
that in this lottery of life, there are some capital prizes; but I am too
poor to hazard any part of my fund of present happiness, lest I spend
my money for a blank, and I am become too ambitious to be
contented with a petty prize.” He laughed, warning me, that I might
change my mind. “For such things do happen,” continued he; “at
your age I was in no hurry to marry, yet when turned of forty, I
married, without consulting my register, or my reason. My good aunt
who lived with me, perceived, I suppose, that I was thinking of
changing my condition, and she was much pleased; recommending
perpetually to my notice, a very worthy young woman of her
acquaintance; but I know not how it fell out, after seeing two or three
times my poor, artless, good humoured Lydia, I was not easy in my
mind; and thought my aunt’s favourite, Miss Welldon, looked of a
fretful temper, and was of too ceremonious a turn for me, though she
was comely, and only six and thirty, which certainly was a more
suitable age for mine, and I might have been comfortable with her. I
soon found that Lydia was too young a wife for me,” continued he,
thoughtfully, “but I loved her, and I well knew what kindness would
do with her. She was contented, and all was peace with us, till she
was perverted by bad company. Whenever, you marry, Mr.
Montrose, take care to know what company the lady keeps; much
depends on that; and avoid a disproportion in years: there is hazard
in trusting too much, in some cases.”
He is very curious in his questions relative to my two pupils, who
are his favourites. “It is all in good time yet,” observed he, “but we
must be careful not to neglect our blessings. My grandson, Jerry, is a
fine boy, and little William very active and promising. Their mother
is an excellent nurse, and Mrs. Maclairn was quite surprised at
seeing her a notable housewife. She has been favoured, Mr.
Montrose. There is a curate and his wife near them, that are
invaluable to these young people; and I will take care that their
goodness shall not be lost. But poor Lydia must not be trusted with
my boys too long. Happily she promises to be a “fruitful vine.” So the
nursing will be transferred. I mean to give my children a good
education, Mr. Montrose. It shall not be my fault, if they lack
knowledge. I cannot reproach myself with having wilfully neglected
my duty; but with a more enlarged knowledge I might have
performed it better, and shunned many errors in conduct. I have, of
late, been of opinion, that I had, in common with other men better
instructed, a capacity that might have been improved by learning;
and I will tell you the reason for this seeming presumption,” added
he, suddenly stopping and facing me; “it is this: that, although I
cannot talk, nor argue like you, and our friends within, yet I very
often comprehend the drift of your discourse, and am entertained by
your debates.” Before I could make any answer to this observation,
Mr. Hardcastle called him, and reminded him of the dampness of the
evening, adding, that he was waited for at the loo-table. He nodded
in sign of obedience, and said to me, “you may think I am vain, but I
must tell you, that I perceive what has brought pam into favour here;
I see all the kindness of their good hearts! It is well for me that I
know that my debts of gratitude will be discharged in full by One who
is able to pay them.” He entered the house, and with bustling
cheerfulness claimed his privilege of sitting next Mrs. Hardcastle.
Should these touches of my pencil be judged injurious to a portrait
already so faithfully delineated by a more skillful hand, I have only to
request the censurer to place the mistake, and others as glaring, to
my account, and to separate them from the labours of a copyist,
whose sole merit is confined to a diligent and honest purpose; and
whose simplicity of heart has, in the presence of the unlearned Mr.
Serge, a hundred times pronounced, that learning would not have
added one line to his stature.
“An honest man’s the noblest work of God.”

It is now more than three years since my manuscript has been in


my writing desk. Already has time shadowed off a portion of those
vivid colours, with which my picture of Farefield Hall then glared.
The death of Lady Maclairn this spring, has saddened every heart;
whilst, from her dying lessons and calm resignation, have resulted a
consolation which all have found useful. Sir Murdoch yielded to Mrs.
Hardcastle’s entreaties, to join her in London soon after this
melancholy event. Again has she been to him the “angel of peace,”
and, with renewed health and spirits, he accompanied the family to
Heathcot in June.
It is at Heathcot, according to Sir Murdoch’s opinion, that Mrs.
Hardcastle must be seen, in order to be justly viewed. I think as he
does; for it is here, and here only, that the vivacity and brilliancy of
her mind, appear to yield to the satisfactions of her heart. She is
always amiable; but at Heathcot she is more placid, more
affectionate, and, to use her own words, “never from home.”
I conceived, that this was the season for renewing my petition
relative to her and Mr. Hardcastle’s letters. I could not succeed. She
saw that I was disappointed. “Be comforted,” said she smiling; “I
will, if you please, formally announce to the public, what will satisfy
half your readers, as well as the best written love letters extant. I can
assert, that Horace Hardcastle is still obstinate in error; and that he
yet worships the idol formed by his own hand; an acquaintance with
its defects, serves only to augment his attachment, for he pretends to
find, even in these, grounds for his faith and motives for his love.”
“But do you not see?” observed I, “how much my moral must lose
in its moral design, by the omission of such letters as yours and Mr.
Hardcastle’s? A passion built on so noble a basis!”——She
interrupted me. “Enough has appeared,” said she, “to justify my
preference and affection for my husband. My principle of conduct is
at the service of my sex. The young cannot adopt a better. The
moment they know, that every approach to vice and libertinism is
contagious, they will shun them, however decorated; and when they
know, that by marrying a fool, their own gold will be mingled with an
alloy which must sink its value and obscure its brightness, they will
be safe, and preserve a heart worthy of a good husband.”
“I cannot help having my fears,” said I, rising, somewhat
discomfited, and taking up my manuscript. “It is so unlike the
popular novels of the day.”——“What should you fear?” replied she,
with eagerness. “Why, misses, in their teens write novels and publish
them. They make, nothing of it.” I laughed, and gravely wished, that I
had their youth and attractions to plead for my folly and failures.
“Nonsense,” cried she, laughing in her turn, I was speaking of their
courage, not of their performances. Imitate them, at least in your
good opinion, of your own talents; and should you, like them, find
you have over-rated your abilities, settle the business, like our friend
Sancho Panza; and say, “que Sancho écuyer cru bien aussi vîte en
Paradis, que Sancho gouverneur.” My father, and the mother of this
family, as you justly stile Mrs. Allen, wish you to print your work.
They think your secret worth knowing, and we admire the skill and
discretion, with which you have contrived to divulge it, with
usefulness to all, and without wounding any. I bowed, and have
obeyed.

FINIS.
NEW NOVELS, &c.
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By W. EARLE,
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and may be had of all other Booksellers in the Kingdom.

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