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Management Leading and Collaborating in A Competitive World 13Th Edition Bateman Solutions Manual Full Chapter PDF
Management Leading and Collaborating in A Competitive World 13Th Edition Bateman Solutions Manual Full Chapter PDF
chapter 10
Human Resources Management
CHAPTER CONTENTS
Learning Objectives 10-2
Lecturettes 10-22
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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
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
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.
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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.
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.
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Chapter 10 Human Resources Management
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.
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.
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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)
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.
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Chapter 10 Human Resources Management
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Chapter 10 Human Resources Management
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.
MANAGEMENT IN ACTION –
Progress Report
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.
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Chapter 10 Human Resources Management
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.
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.
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
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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
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.
5. The flexible benefits program is a benefit program in which employees are given
credits to spend on benefits that fit their unique needs
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.
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
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.
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.
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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.
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.
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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.
LO 7: Summarize how unions and labor laws influence human resources 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. 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.
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 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
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. 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
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.
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
➢ 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.
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Chapter 10 Human Resources Management
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:
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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.
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.
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Chapter 10 Human Resources Management
7. What are some of the key ideas to remember when conducting a performance
interview? What mistakes and best practices have you seen?
On the other hand, if the employee is doing a good or excellent job then you should:
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
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)?
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Chapter 10 Human Resources Management
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.
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.
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
Objectives
Suggested responses
Distribution of the $30,000 is as follows: In this case individuals receive the following:
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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.
• 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.
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:
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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.
Lydia Serge.
FINIS.
NEW NOVELS, &c.
Just Published,
By W. EARLE,
At his Circulating Library, No 47, Albemarle Street, Piccadilly,
and may be had of all other Booksellers in the Kingdom.
S. Rousseau, Printer,
Wood Street, Spa Fields.
TRANSCRIBER’S NOTES
1. Silently corrected obvious typographical errors and
variations in spelling.
2. Retained archaic, non-standard, and uncertain spellings
as printed.
*** END OF THE PROJECT GUTENBERG EBOOK LADY
MACLAIRN, THE VICTIM OF VILLANY : A NOVEL, VOLUME 4 (OF
4) ***