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Fundamentals of Human Resource Management, 8e Instructor’s Manual

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Chapter 1
Managing Human Resources
This chapter provides the introductory foundation for students. Elements include HRM’s role in
organizational success, skills for effective HRM, and how these skills are necessary for all
managers, not just HR managers. The chapter concludes with discussion of careers in HRM,
ethical considerations and an outline for the rest of the chapter.

Chapter Outline
Human Resources and Company Performance
• Human resources are valuable.

Responsibilities of Human Resource Departments


• Human Resource Management (HRM) consists of an organization's "people practices,”
including:
• Policies, practices, and systems that influence employees’ behavior, attitudes,
and performance.
• Who works for the organization and how those people work.
• A variety of functions related to acquiring and managing employees.

Skills of HRM Professionals


• HRM requires human relations skills, including:
• Communicating.
• Negotiating.
• Team development.

• HR professionals also need to:


• Understand the language of business.
• Be a credible with line managers and executives.
• Be strategic partners.

HR Responsibilities of Supervisors

01-1
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Fundamentals of Human Resource Management, 8e Instructor’s Manual

• Non-HR managers, such as supervisors, typically have responsibilities related to all HR


functions such as analyzing work, interviewing, training, and writing performance
appraisals.

Ethics in Human Resource Management


• Make consistently ethical decisions.
• Understand and enforce employee rights.

Careers in Human Resource Management


• Careers in HRM may involve specialized work in fields such as recruiting, training, or
compensation.

Learning Objectives
LO 1-1: Define human resource management, and explain how HRM contributes to
organization’s performance.

LO 1-2: Identify the responsibilities of human resource departments.

LO 1-3: Summarize the types of competencies needed for human resource management.

LO 1-4: Explain the role of supervisors in human resource management.

LO 1-5: Discuss ethical issues in human resource management.

LO 1-6: Describe typical careers in human resource management.

Society for Human Resource Management Body of Competency &


Knowledge
This chapter contains content, which may be identified within the following content areas:

• Talent Acquisition & Retention


• Learning & Development
• Total Rewards
• Structure of HR Function
• Business & HR Strategy
• Organizational Effectiveness & Development
• Workforce Management
• Risk Management

01-2
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Fundamentals of Human Resource Management, 8e Instructor’s Manual

Human Resource Certification Institute’s A Guide to the HR Body


of Knowledge
This chapter contains content, which may be identified within the following content areas:

• Business Management & Strategy


• Workforce Planning and Employment
• Human Resource Development
• Compensation and Benefits
• Employee and Labor Relations
• Risk Management

01-3
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Fundamentals of Human Resource Management, 8e Instructor’s Manual

Question Guidance to Vignettes and Discussion Questions


Best Practices
HRM Helps Abbott Laboratories Thrive

1. How could a company such as Abbott benefit from sending an employee to school to
study finance or another business subject?

Answer: Students should identify the reduction in training costs while further developing
the employee. Students may also identify the outside knowledge and skill gained, while
potentially improving employee morale and, thus increasing retention.

2. How do you think hiring and training could work hand-in-hand to help a company such
as Abbott meet its business objectives?

Answer: Discussion should consider how training initiatives may be viewed favorably by
potential candidates, and thus lead to both the acceptance of a job offer and retention.

HRM Social
Social Media Tools for HR Professionals

1. Of the social-media applications described here, which, if any, have you already used?
On which, if any, have you observed messages from employers or co-workers?

Answer: Expect many student answers to center around the largest and most popular
social media sites/apps. This is both true for the first and second parts of Question 1.
Consider moving the conversation to tools such as Google Drive, Dropbox, or other
sharing tools that are used for both personal and work projects.

2. Based on the descriptions here and your experiences with social media, briefly describe
one way the use of social media might help you stat or advance your career.

Answer: Students will probably focus on their network and how job postings can be
made and spread very easily. Instructors will want to guide the conversation to targeted
strategies, where students can research a company the same way a company can research
potential applicants.

HR How To
Applying HR Data to Solve Business Problems

1. Review the categories of HR responsibilities (see Table 1.1). For any of the categories
write a question that analytics might be able to answer.

01-4
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Fundamentals of Human Resource Management, 8e Instructor’s Manual

Answer: Responses will vary, but instructors should be sure to help students first
understand HR responsibilities, and then discuss how analytics can help improve those
skills.

2. In light of the tips listed here, how should an HR professional use data to address the
business issue you identified in question 1?

Answer: Students should be able to identify how both statistical and communication
skills are necessary in human resources management.

HR Oops!
Zenefits Runs into Its Own HR Issues

1. What do you think of the description of HR being “essentially pretty boring”? How well
does that statement take into account the competencies Zenefits has defined for HR
professionals?

Answer: Students will respond with their own experiences of being hired, trained,
appraised, or terminated. Instructors should consider flipping this model and have the
students re-do those problem situations with their own answers.

2. Review the competencies in Figure 1.3 and the example behaviors listed in the
accompanying text discussion. Which ones are the areas you would advise Zenefits to
strengthen so it can better meet its internal needs or serve its customers?

Answer: Students should be able to rationalize any or all of the competencies within the
figure. Group work could be a recommended method of instruction or activity.

Did You Know?


Employers’ Reputations Have Value

1. If you were an HR manager, how could you use the survey results to make a business
case for rewarding ethical conduct?

Answer: Students should identify how businesses with a bad reputation could lead to
higher compensation costs to attract and retain employees. Active learning strategies are
strongly recommended here based on personal experience and improving the response of
HR in ethical dilemmas.

01-5
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Fundamentals of Human Resource Management, 8e Instructor’s Manual

End of Chapter Questions and Cases


Thinking Ethically
Whom Does the HR Professional Represent?

1. Consider a situation where a new sales associate complains that a top-earning sales
manager has been harassing her. Who would be affected by (a) a decision to fire the sales
manager; and (b) a decision to tell the employee the manager is valuable, and she should
figure out how to handle the situation herself?

Answer: Responses should indicate a consideration as to how both sides’ rights may be
impacted, while also considering the legal and publicity ramifications of either action.

2. What duties does the HR department receiving this complaint have to (a) the sales
associate; (b) the sales manager; (c) the company that employs them?

Answer: In today’s age, instructors should anticipate this to be a hotly debated topic in
the classroom. Students answers should be respectful in considering both parties and how
the process should play itself out. In addition, decisions must incorporate the business
decisions of maintaining profitability. Refer back to the section on reputation of the
business in creating a positive culture.

Review and Discussion Questions


1. How can human resource management contribute to a company’s success? (LO 1-1)

Answer: Human resource management consists of an organization’s “people practices”


such as the policies, practices, and systems that influence employees’ behavior, attitudes,
and performance. HRM influences who works for the organization and how those people
work. These human resources, if well managed, have the potential to be a source of
sustainable competitive advantage, contributing to basic objectives like quality, profits,
and customer satisfaction.

2. Imagine that a small manufacturing company decides to invest in a materials resource


planning (MRP) system. This is a computerized information system that improves
efficiency by automating such work as planning needs for resources, ordering materials,
and scheduling work on the shop floor. The company hopes that with the new MRP
system, it can grow by quickly and efficiently processing small orders for a variety of
products. Which of the human resource functions are likely to be affected by this change?
How can human resource management help the organization carry out this change
successfully? (LO 1-2)

Answer: The sort of change described in the question above would most likely affect, to
some degree, all nine of the functions of human resource management. The analysis and
design of work would need to be considered in a decidedly different manner than it was
01-6
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Fundamentals of Human Resource Management, 8e Instructor’s Manual

before the newly implemented automated process, as the “job” itself would be changed
under the new system. Recruitment and selection as well as training and development
would require adjustment to secure those individuals with the necessary skills,
knowledge, and abilities to perform at expected levels under the new system.
Performance management, the process of ensuring employees’ activities and outputs
match the organization’s goals, would need reevaluation due to the changes created by
the new process. Compensation would require adjustment because of the changes caused
by the automation. Employee relations and human resource planning to support the
organizational strategy would require adjustment to bring harmony and balance back into
the workplace as individuals are noted to fear and resist new changes.

Human resource management can help the organization successfully carry out this
change by combining its knowledge of human behavior with performance management
tools in order to assist the organization in constructively managing the change process.

3. What competencies are important for success in human resource management? Which of
these competencies are already strengths of yours? Which would you like to develop?
(LO 1-3)

Answer: Human resource management requires substantial human relations skills,


including skill in communicating, negotiating, and promoting team development. Human
resource professionals also need decision-making skills based on knowledge of the HR
field as well as the organization’s line of business. Leadership skills are necessary,
especially for managing conflict and change. Technical skills of human resource
professionals include knowledge of current techniques, applicable laws, and computer
systems.

The student responses will vary as to which skills are their current strengths and which
skills they would like to develop further.

4. Traditionally, human resource management practices were developed and administered


by the company’s human resource department. Line managers now play a major role in
developing and implementing HRM practices. Why do you think non-HR managers are
becoming more involved? (LO 1-4)

Answer: As the relationship between various HRM practices and the productivity and
performance of employees has been recognized, line managers have strong reasons to
become involved in the development and implementation of HRM practices. The
information from line managers is critical to determine needed and appropriate policies
and practices that will reinforce the strategic and operational needs of the organization.
For instance, if quality needs improvement, then it is critical that incentive/compensation
practices be developed to reward quality improvement rather than volume production.

01-7
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5. If you were to start a business, what aspects of human resource management would you
want to entrust to specialists? Why? (LO 1-3)

Answer: Human resource specialists most often possess certain areas of expertise, such
as recruitment, training, and labor relations. Human resource generalists usually perform
the full range of HRM activities, such as recruitment, training, compensation, and
employee relations. The cost difference associated with hiring a specialist or a generalist
would need to be considered, as this is a newly established company. A full picture of
organizational size, objectives, financial standing, as well as organizational need would
need to be examined prior to selecting either a specialist or a generalist to guide the HR
process.

The responses provided by the students will vary depending upon their personal
viewpoints. However, each response provided should discuss rationales for why such a
decision was made.

6. Why do all managers and supervisors need knowledge and skills related to human
resource management? (LO 1-4)

Answer: Although many organizations have human resource departments, non-HR


managers must be familiar with the basics of HRM and their own role regarding
managing human resources. Supervisors typically have responsibilities related to all HR
functions. Supervisors help analyze work, interview job candidates, participate in
selection decisions, provide training, conduct performance appraisals, and recommend
pay increases. On a day-by-day basis, supervisors represent the company to their
employees, so they also play an important role in employee relations.

7. Federal law requires that employers not discriminate based on a person’s race, sex,
national origin, or age over 40. Is this also an ethical requirement? A competitive
requirement? Explain. (LO 1-5)

Answer: Ethics refers to the fundamental principles of right and wrong. Ethical behavior
is behavior that is consistent with those principles. It is imperative for organizations to
adhere to current laws and regulations. This is indicative of ethical organizational
behavior. The way an organization conducts its business can affect the way in which
others such as customers, government agencies, and vendors perceive that organization.
While operating ethically is not a competitive requirement, remember that individuals
most often prefer to deal with organizations they feel they can trust. So in essence,
operating in an ethical/unethical manner may greatly impact an organization’s
competitiveness.

8. When a restaurant employee slipped on spilled soup and fell, requiring the evening off to
recover, the owner realized that workplace safety was an issue to which she had not
devoted much time. A friend warned the owner that if she started creating a lot of safety
rules and procedures, she would lose her focus on customers and might jeopardize the
future of the restaurant. The safety problem is beginning to feel like an ethical dilemma.

01-8
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Fundamentals of Human Resource Management, 8e Instructor’s Manual

Suggest some ways the restaurant owner might address this dilemma. What aspects of
human resource management are involved? (LO 1-5)

Answer: Safety for workers as well as for customers is vital for every organization
regardless of its size. Accidents can prove to be an exorbitant cost for businesses. The
restaurant owner may address this dilemma by gaining knowledge on the value of safety
training. By viewing implementation of safety training as an enhancement, the owner
may conquer any of her fears.

In actuality, all nine areas of human resource management functions could potentially be
involved in or affected by the creation of a safety-training program. Of course, the
training and development function would sustain an immediate and more recognized
effect.

9. A friend hears you are taking this course and mentions an interest in an HRM career.
Based on this chapter’s description, what advice would you give your friend? (LO 1-6)

Answer: Individual students will provide a wide variety of responses to this topic.
Answers should represent an understanding of each content area in this chapter.

Taking Responsibility
Why Good Things Happen at Costco

1. In what ways does Costco meet the criteria for a "sustainable" organization?

Answer: The company clearly cares about a workforce that is engaged and retained. This
adds to their sustainability because they do not have to spend as much on recruitment
costs. They have employees who feel valued and that translates into productivity and
customer satisfaction.

2. What would you describe as Costco’s basic strategy as a retailer? How do its human
resource practices support that strategy?

Answer: Their basic strategy is to be a low-cost provider. They keep their HR costs low
by having less turnover and lower residual training costs, which is tied to the low
turnover, even though their pay rates are competitive. They also have higher productivity
so they are getting a great ROI for their higher hourly wage and benefits.

Managing Talent
Old Navy’s Talent Strategy Fills in Some Gaps

1. In your own words, briefly summarize the business problem facing The Gap and the
effectiveness of This Way Ahead as a solution to the problem.

01-9
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Fundamentals of Human Resource Management, 8e Instructor’s Manual

Answer: Students answers should focus on the skill deficits facing many of the workers
that would typically find jobs or start careers in the retail industry. TWA is meant to
provide incentives on a number of fronts. Not only is Old Navy creating a demand to
work at their stores, but they are also investing in workers who are more enthusiastic and
have the potential to grow inside of Old Navy.

2. Suggest one or two ways Old Navy’s HR department could use data to measure the
success of This Way Ahead in providing a source of talent. That is, what measure would
indicate success?

Answer: Data could be analyzed to investigate any potential reductions in employee


turnover as well as new workers to the Old Navy brand. Focusing on store-by-store, or
regional results on entry-level employees is the key metric.

HR in Small Business
Network Is the Key to HRM at 1Collision

1. Give examples of 1Collision’s HRM professionals providing the competencies of (a) HR


expertise and (b) critical evaluation.

Answer: Students may identify the HR expertise as the recruitment support, and the
evaluation regarding training requirements.

2. How might HRM support from the 1Collision Network make an auto body shop more
competitive than if it relied on the shop manager to handle human resource management?
In other words, how might this support contribute to business success?

Answer: Responses may vary, but should identify the ability to gain HRM expertise at a
relatively lower time and money cost than if the shop manager just handled all the HRM
aspects.

01-10
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Recommended Connect Activities


HRM Matters to Everyone
Learning Objective: 01-03 Summarize the types of competencies needed for human resource
management
Activity Summary: This case analysis involves the changing role of the HR department over
time and the addition of increased responsibility and decision making.
Follow-Up Activity: Active and collaborative learning exercises are recommended for this
application exercise. One example would be for small groups to diagram the different
organizational structures for HR as time has progressed. In addition, students can then delegate
the different HR responsibilities of each employee as the company has evolved.

Ethical Concerns in Human Resources


Learning Objective: 01-05 Discuss ethical issues in human resource management.
Activity Summary: This worksheet includes matching of real-world issues to the ethical
concerns highlighted in the text.
Follow-Up Activity: Activities for this application exercise could include any number of topics.
Use the multiple-choice questions as a pre- and post-assessment so that students understand each
of the ethical dilemmas outlined in the text. After the pre-assessment is complete, have
individuals or groups document previous examples in their own careers when an ethical concern
arose. Students could then categorize those examples as one of the main ethical concern areas as
outlined in the activity.

Supervising Employees Who Work from Home


Learning Objective: 01-04 Explain the role of supervisors in human resource management.
Activity Summary: Technological improvements can influence policies and practices in human
resource management, as well as in the overall organization. Although there are many benefits of
using technology in the workplace, there are also challenges. This video case presents some of
those for telecommuters.
Follow-Up Activity: Have students "flip" the classroom and present on the processes
organizations use for considering, implementing, and supervising telecommuting employees. The
answers do not need to include great depth but should focus on recognition and examples of the
necessary steps.

01-11
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Fundamentals of Human Resource Management, 8e Instructor’s Manual

HRM Practices
Learning Objective: 01-03 Summarize the types of competencies needed for human resource
management.
Activity Summary: Today is it not enough for an HR professional to know only how to perform
tasks specific to human resources management. HR professionals must be proficient in the nine
categories of HR success competencies clustered into four areas: technical, interpersonal,
business, and leadership.
Follow-Up Activity: This matching exercise plays a more foundational role in a student’s ability
to understand the role of HR in the current landscape. Ask students to complete this worksheet
when class begins and then have them retake it at the end of the class meeting (the same could be
done in an online environment). Use the results to guide your teaching to the needs/weaknesses
of your students on a real-time basis, which will increase the chances of retention.

CHRO Conversations: Tracy Keogh, HP, Inc.


Learning Objective: 01-02 Identify the responsibilities of human resource departments.
Activity Summary: The video case and multiple-choice questions that follow will push students
to apply previously learned information to corporate-level strategy.
Follow-Up Activity: Students should understand the role that HR takes in managing an
environment that has the necessary tools and structure to lead an organization to a highly
competitive market position. Active learning strategies could include having students research
their own employers or find "best HR practices" and then apply course content to these
scenarios.

01-12
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Fundamentals of Human Resource Management, 8e Instructor’s Manual

Classroom Exercises
Students may benefit from exercises that illustrate the concepts of the chapter. Use these along
with CONNECT activities.

1. Understanding of HRM and the textbook

Instructors may engage students in a general discussion meant to support the


understanding of HRM. Instructors may have students review Figures 1.1 and 1.2, and
then discuss Review and Discussion question #1. Instructors may then direct students to
Table 1.3 to see the outline of the book and answer any questions they may have
concerning the content.

2. The Role of HRM

Students may be asked to discuss and identify HRM’s role within organizations. Review
and Discussion questions #5 may be used to begin the discussion. Then instructors may
ask students to respond to the Taking Responsibility question #2. While responding to
question #2, the instructor may ask students to reflect on their responses to the Review
and Discussion question and ask whether their initial responses have now changed.

3. Competencies for Careers

Instructors may facilitate a discussion for students to discuss the competencies necessary
for strong managers. Review and Discussion questions #3 and #4 may be asked to begin
the discussion. Then, Review and Discussion question #6 may be asked as a follow-up,
with students then reflecting on their responses to questions #3 and #4.

4. HRM Career Considerations

Instructors may wish to have students identify components in Chapter 1 within both the
Society for Human Resource Management Body of Competency & Knowledge and the
Human Resource Certification Institute’s A Guide to the HR Body of Knowledge.
Discussion could be focused on how these chapter concepts are important to the
development of their careers and potential certification.

5. Vignette Discussions

Any of the vignettes (see above) may be employed for classroom discussion. Students
could be asked to respond as individuals or placed into groups for discussion. Individuals
and/or groups may then be asked to defend their responses and rationale when comparing
and contrasting other responses.

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ARTICLE XVI[326]
INCOME TAX
The Congress shall have power to lay and collect taxes on
incomes, from whatever source derived, without
apportionment among the several states, and without regard
to any census or enumeration.
ARTICLE XVII[327]
SENATE: ELECTION: VACANCIES
The Senate of the United States shall be composed of two
Senators from each state, elected by the people thereof, for
six years; and each Senator shall have one vote. The
electors in each state shall have the qualifications requisite
for electors of the most numerous branch of the state
legislatures.
When vacancies happen in the representation of any state
in the Senate, the executive authority of such state shall
issue writs of election to fill such vacancies: Provided, That
the legislature of any state may empower the executive
thereof to make temporary appointment until the people fill
the vacancies by election as the legislature may direct.
This amendment shall not be so construed as to affect the
election or term of any Senator chosen before it becomes
valid as part of the Constitution.
ARTICLE XVIII[328]
NATIONAL PROHIBITION
Section 1—After one year from the ratification of this
article the manufacture, sale or transportation of intoxicating
liquors within, the importation thereof into, or the exportation
thereof from the United States and all territory subject to the
jurisdiction thereof for beverage purposes is hereby
prohibited.
Section 2—The Congress and the several States shall
have concurrent power to enforce this article by appropriate
legislation.
Section 3—This article shall be inoperative unless it shall
have been ratified as an amendment to the Constitution by
the legislatures of the several States, as provided in the
Constitution, within seven years of the date of the submission
hereof to the States by Congress.
ARTICLE XIX[329]
WOMAN SUFFRAGE
Section 1—The right of citizens of the United States to
vote shall not be denied or abridged by the United States or
by any State on account of sex.
Section 2—Congress shall have power to enforce this
article by appropriate legislation.
INDEX

Accidents, industrial, 411-412


Admission of new states, 227-228
Agriculture, the federal Department of, 299 n
scope and methods of, 339-342
special characteristics of, 343-345
improvements in, 345-346
government encouragement of, 346-348
financial aids to, 348-349
problems of, 349-352
Agricultural bloc, in Congress, 282 n, 350-351
Alaska, government of, 229 n
Albany Congress, 248
Ambassadors, appointment and duties of, 591-595
Amendments, to state constitutions, 232
to national constitution, 260-262
American Federation of Labor, 403-404
Americanization, the public schools as agencies of, 28
purpose and methods of, 33
“American Plan” in industry, 409
Anti-Trust Law. See Sherman Act
Appointments to office, methods of, 99-101
confirmation of, 270-271
presidential, 293-294
Appeals, judicial, 311-312
Appropriations in Congress, 463-465
Arbitration, of labor disputes, 409-410
compulsory, 410-411
international, 601-602
Aristotle, classification of governments by, 66-67
Armaments, the cost of, 563-564
Army, various divisions of the, 567-571
control of, in war, 571-572
Army in peace, 572-573
Articles of Confederation, 249-251, 287
Assessments for taxation, 456-457
Athletics, value of, in training citizens, 86-88
Attorney-General, office of, 299 n
Australian ballot, 132

Balance of power in Europe, 629


Ballot, history of the, 131-132
reform of, 132-133
preferential, 133-134
Banks, functions of, 434
organization of, 435-437
federal reserve, 437-439
work of, 439-442
See also Farm Loan Banks
Bargaining, collective, 405-406
Billboards, regulation of, 214-215
Bill of Rights, 261
Bimetallism, the controversy over, 428-430
Blacklists, industrial, 407
Blackstone’s Commentaries, 314 n
Bloc. See Agricultural bloc
Blue-sky laws, 446 n
Boards, in counties, 169-170
in cities, 192
in state government, 238-239
of education, 498
of health, 534
Bonds, defined and explained, 445 n
government, 466-467
serial, 469
Bonaparte, Napoleon, on the qualities of a good constitution,
258
Bosses, political, their origin, 29
their methods, 160-161
Boycotts in labor troubles, 407
Brindell Case, 404 n
Bryan, William J., on free silver, 430
Budgets, how made, 462-463
in Congress, 463-465
Buildings, public, in cities, 212-214
Bureau of Animal Industry, 347
of Foreign and Domestic Commerce, 376
of Child Welfare, 415 n
of Education, 499
of American Republics, 617
Burke, Edmund, on the function of a representative, 98-99
Business taxes, 222

Cabinet, organization and functions of, 297-303


Campaign funds, 161-162
Capital, as a factor in production, 48-50
Center of population in the United States, 21
Chancery. See Equity
Charters, municipal, 186-190
Checks and balances, 232-234
Child labor, the restriction of, 414-415
Chief justice, duties of, in presidential impeachments, 270 n
China, economic resources of, 335
open door in, 618-620
Circuit courts, 313
Cities, drift of population to, 22-23
growth of, 183-184
character of population in, 184-186
relation to state, 186-190
government of, 190-199
administrative problems in, 203-222
taxation in, 455-457
City councils, 193-194
City government, development of, 182-184
present organization of, 184-199
See also Municipal problems
City-manager plan, 197-198
City planning, 206-298
Citizenship, rights of, 79
qualifications for, 81
dual, 82 n
obligations of, 83-84
training for, 84-88
Civil liberty, origin and nature of, 78-81
relation of direct legislation to, 111
Civil War, effect of, on relations between nation and states,
227
on the constitution, 261-262
martial law during, 574-575
naval progress during, 575 n
cost of pensions after, 583
danger of foreign intervention during, 608
Civil service, federal, 104
in counties, 173
See also Merit system
Clayton Act, 391, 408
Cleveland, adoption of city manager plan in, 197 n
Grover, use of armed forces in labor troubles by, 572-573
Closed shop, the question of, 408-409
Coal, the conservation of, 329-330
Codes of law, 315 n
Coinage in the United States, 427-430
Colbert, Jean-Baptiste, on the art of taxation, 455 n
Collective bargaining, 56, 405-406
Colleges, training for citizenship in, 87-88
Commerce, purposes of, 356-357
development of, 357-358
scope and nature of, 358-359
regulation of, 359-360
agencies of, 364-368
effect of tariffs on, 368-372
the encouragement of, 372-378
Commission government, in cities, 194-196
in states, 241-242
Commissions, public service, 480-481
Committees, party, 156-158
in the Senate, 268-269
in the House, 275
of conference, 277-278
on budget matters, 464-465
Communism, economic aspects of, 650-652
Common law, 314-315
Companies, commercial, 50-51
See also Holding companies
Competition, the nature of, 54
among public utilities, 475-476
Conciliation in labor disputes, 409-410
Confederation, Articles of, 249-251
Confirmation of appointments, 100
Congress, of the Confederation, 248-252, 257
of the United States, influence of public opinion on, 95-96
organization and work of, 266-282
committees in, 268-278
agricultural bloc in, 350-351
new budget system in, 464-465
of Vienna, 627-628
Conservation of natural resources, 326-336
Consular service, 373-374
Constitution of the United States, events leading to, 246-253
makers of, 254-255
nature of, 257-258
development of, 258-260
methods of amending, 260-262
Constitutions, state, 230-232
Consumption of wealth, 39-40
Constabulary, state, 217
Constitutional Convention of 1787, 253-257
Continental Congress, 248
Contract, freedom of, 55-56
Conventions, party, state, 129, 156-157
national, 158-159
Coroner, office of, 172
Corporations, the nature of, 50-51
citizenship of, 81 n
industrial, 384-385
control of, 389-393
Council, in cities, 193-194
County districts, 177
County government, 167-174
County manager plan, 170
Courtesy of the Senate, 270-271
Courts, county, 170-171
state, 239
federal, 308-313
Courts-martial, 573-574
Covenant. See League of Nations
Credit, agricultural, 348-349
relation of money to, 442-443
Credit, relation of prices to, 443-444
advantages and dangers of, 444-445
Crime, classifications of, 550-551
causes of, 552-553
methods of dealing with, 553-557
“Crime of 1873”, 429 n
“Cross of Gold” campaign, 430
Currency, paper, history of, 430-431
present forms of, 431-432
advantages of, 432-434
Currency Act (1900), 430
Custom, the influence of, 9-10

Darwin, Charles, theories of, 2-4


Debts, public, necessity of, 465-466
nature and amount of, 466-468
repayment of, 468-469
Declaration of Independence, influence of John Locke on,
64-65
assertion of civil rights in, 80
political doctrines of, 248-249
Defence, national, cost of, 563-564
need for, 564-567
methods of, 567-583
Degeneracy as a cause of poverty, 542
Demand and supply, relations of, 40
Democracy, true and false types, 68
progress of, 69
justification of, 70
relation of education to, 492-493
relation of socialism to, 657-658
achievements of, 658-660
citizen’s duty toward, 660-661
Departments, in city government, 191-192, 205-206
in state government, 238-239
in federal government, 299
Diminishing returns, the law of, 343
Diplomatic service, organization and functions of, 591-595
Direct legislation, progress of, 107-108
procedure in, 109-110
merits and defects of, 110-112
Disarmament, international, 576-577
See also Washington Conference
Disease, the germ theory of, 516-517
transmission of, 517-520
in industry, 521-522
the prevention of, 522-524
District attorney. See Prosecuting attorney
of Columbia, government of, 230 n
courts, federal, 313
Divine right, theory of, 63-64
Division of labor, 44-46
in agriculture, 344-345
of powers, 232-234
Divorce problem, 557-560
Domestic relations, courts of, 559
Drug evil, the, 526
Duties on imports, 459
See also Tariffs and Tariff problems

Economics, the subject-matter of, 38-39


Education, relation to democracy, 492-493
to personal efficiency, 493-494
purpose and value of, 494-495
growth of, 495-496
control and management of, 496-498
national government’s work for, 498-499
federal aid to, 499-500
problems of, 500-507
vocational, 507-508
Educational tests for voting, 122-124
Elections, in counties, 169
procedure at, 129-137
corrupt practices at, 137-138
of senators, 267-268
of representatives in Congress, 273-274
presidential, 288-290
See also Ballots, City Government, Voting
Emergency Fleet Corporation, 375
Employers’ liability, 411-412
England, local government in, 227
cabinet system in, 301
Environment, the influence of, 5-9
Equity, origin and nature of, 316-317
Espionage Act, the, 581
Europe, relations with, 613
Evolution, theory of, 1-5
in political institutions, 66
Excess profits, taxation of, 458-459
Exchange, the theory of, 53
Expatriation, the doctrine of, 83

F
Factories. See Industry
Family, as a fundamental social group, 11-12
its place in the evolution of government, 66
Far East, American interests in the, 617-618
Farm Loan Banks, 348-349
Farmers’ Alliance. See National Farmers’ Alliance
Institutes, 350
Farmer-Labor party, 351
Federalism, the nature of, 67-68
Federalist, The, 257
Federal reserve banks, organization and work of, 437-439
Trade Commission, 341-392
Filibusters, 278-279
Filtration of water supplies, 530-531
Fire prevention, the need for, 217-218
methods of, 218-219
Fisheries, economic importance of, 333
Fittest, survival of the, 3-4, 11
Food, the inspection of, 525-526
control of, in war time, 582
Foreign policy, American traditions relating to, 606-607
nature of, 587-590
control of, 590-591
how conducted, 591-602
Forests, economic importance of, 331
See also Reserves
Four Power Treaty, 619-620
Fourteen Points, the, 609-610
France, local government in, 227
Franchises, taxation of, 456
public service, 477-480
Freedom of speech in war time, 581-582
Free silver, the fight for, 428-430
Free trade, arguments for and against, 370-372

Garbage, disposal of, 527-528


Gary system, 506-507
General property tax, 455-456
“Gentlemen’s agreement”, with Japan, 32
in industry, 386
Geography, influence of, 8-9, 333-336
George, Henry, social views of, 461 n
Germany, social insurance in, 419
Gerrymander, origin and use of, 273
Gladstone, W. E., opinion of the national constitution, 256-
257
Gompers, Samuel, 405
Government, the importance of, 13
as a factor in production, 51-52
the basis of obedience to, 63-65
origin of, 65-66
classification of, 66-69
purpose of, 70-72
functions of, 72-73
the study of, 74
Governor, position and powers of, 237-238
Grand jury, 318
Granges. See Patrons of Husbandry
Greenbacks, the, 431
Guidance, vocational, 396-397
Guild operation, 488-489

Habeas corpus, the writ of, 317 n


Habit, influence of, 10
Hague Conferences, the, 577
Hamilton, Alexander, 255, 257
Report on Manufactures, 370
Hawaii, government of, 229 n
Hayes-Tilden election, 290 n
Highways in counties, 168
Hobbes, Thomas, defender of absolutism, 65
Holding companies, 387
Holy Alliance, 598-599
Home rule, municipal, 187-190
House of Representatives, federal, organization and work of,
272-283
Housing, municipal control of, 531-533

Ideals, national, economic influence of, 327


effect of urban growth on, 184-186
Illiteracy in the United States, 502 n
Immigration, the course of, 23-24
causes of, 25-26
effects of, 26-29
restriction of, 29-30, 32
Impeachments, federal, 269-270
Income taxes, 458-459
Increasing returns, law of, 388
Incidence of taxation, 451-452
Individualism as an economic system, 14, 73
Index numbers, 443 n
Industrial accidents, 411-412
courts, 410-411
democracy, 393-394
Revolution, nature of, 383-384
Revolution, effect on labor, 400-401, 414 n
Workers of the World (the I. W. W.), 405
Industry, definition of, 383
development and organization of, 384-386
combinations in, 386-389
government regulation of, 389-393
present-day problems of, 393-397
the hygiene of, 520-521
Inheritances, taxes on, 458
Initiative and referendum, origin and spread of, 107-108
how used, 109-110
value of, 110-111
objections to, 111-112
Injunctions, use of, in labor disputes, 407-408
Insular possessions, government of, 229-230
Insane, problem of the, 549-550
Insects as disease carriers, 518-519
Insurance, against accident, 413
against unemployment, 418
against old age, 419
Interest on invested capital, 49-50
Interior Department, its work, 299 n
International, The, 651-652
International law, nature and scope of, 588-590
Interstate commerce, growth of, 359-361
regulation of, 362-364
Commerce Commission, jurisdiction and work of, 363-364
Interpretation, development of the constitution by, 259-260

Jackson, Andrew, removals from office by, 102


Japan, relations with, 618-620
Japanese, problem of the, on Pacific slope, 32-33
Jefferson, Thomas, believer in social contract theory, 65
on entangling alliances, 598, 606
Johnson, Andrew, impeachment of, 270 n
Judicial procedure, 317-323
Judicial supremacy, the doctrine of, 310-311
Judges, selection and removal of, 239-240
Jukes, the, 542-543
Junior high schools and colleges, 502-503
Jury, grand, 318
trial, 318-319
merits and defects of, 317-321
Justice, Department of, its work, 299 n
Juvenile delinquency, 557

K
Kansas plan of arbitration, 410-411
Knights of Labor, 402-403

Labor, as a factor in production, 43-44


division of, 44-46
perishable nature of, 46-47
federal department of, 299 n
Labor in agriculture, 349
changes in the conditions of, 400-401
organization of, 401-403
American Federation of, 403-404
the radical element in, 404-405
methods and policies of, 405-410
problems of, 410-419
services of, during the World War, 419-420
relations of, to League of Nations, 637
Latin-America, relations with, 615-617
Law, branches of the, 314-315
military, 573-574
martial, 574-575
relations of labor to, 411
League of Nations, origin of the, 625-630
covenant of, 630-632
as a scheme of government, 632-636
system of mandates, 636-637
relation of labor to, 637
public health work of, 638
American objections to, 638-639
work of, 639-640
relation of Washington Conference to, 640-641
future of, 641-642
relation of Monroe Doctrine to, 600 n
Legislative reference bureaus, 237 n

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