Chapter 02 – Trends in Human Resource Management
ROADMAP: Review and Discussion Questions
1. How does each of the following labor force trends affect HRM?
a. Aging of the labor force
b. Diversity of the labor force
c. Skill deficiencies of the labor force
2. At many organizations, goals include improving performance through people by relying
on knowledge workers, empowering employees, and assigning work to teams. How can
HRM support these efforts?
1. How do HRM practices such as performance management and work design encourage
employee empowerment?
2. Merging, downsizing, and reengineering all can radically change the structure of an
organization. Choose one of these changes and describe HRM’s role in making the
change succeed. If possible, apply your discussion to an actual merger, downsizing, or
reengineering effort that has recently occurred.
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Chapter 02 – Trends in Human Resource Management
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Chapter 02 – Trends in Human Resource Management
5. When an organization decides to operate facilities in other countries, how can HRM
practices support this change?
6. Why do organizations outsource HRM functions? How does outsourcing affect the role
of human resource professionals? Would you be more attracted to the role of HR
professional in an organization that outsources many HR activities or the outside firm
that has the contract to provide the HR services? Why?
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Chapter 02 – Trends in Human Resource Management
7. What HRM functions could an organization provide through self-service? What are
some of advantages and disadvantages of using self-service for these functions?
8. How is the employment relationship typical of modern organizations different from the
relationship of a generation ago?
9. Discuss several advantages of flexible work schedules. What are some disadvantages?
ROADMAP: End of Chapter Case
Taking Responsibility
Taking Care of People Gives Cisco Systems a Strategic Advantage
Cisco Systems is a global organization that has been able to maintain consistent and growth
and profitability even during the recession. One reason they were able to do that was because
of Don McLaughlin’s, head of tactical HRM, ability to cut HR costs while increasing employee
satisfaction. He did that by getting his HR employees to get to know the business they
supported and creating plans to improve the company’s talent, leadership, organization, and
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Chapter 02 – Trends in Human Resource Management
Discussion Questions and Possible Response:
1. How has Cisco Systems prepared itself for responding to trends in labor force?
2. How have Cisco’s HR managers balance concerns for cost and quality?
Managing Talent
Netflix Treats Workers “Like Adults”
Netflix looks to hire employees and then treat them “like adults.” In Netflix terms, that
means that the employees are mature enough to take responsibility. Patty McCord and
Reed Hastings came up with five principles that would direct the HRM approach.
1. Hire, reward, and keep only “fully formed adults.”
2. Tell the truth about performance.
3. Managers are responsible for creating great teams.
4. The company’s leaders must create the company culture.
5. HR managers should think of themselves first as businesspeople.
Neflix rewards high performers with high pay and flexible schedules. Employees who
don’t do the job are asked to leave. There is no sense of entitlement for a job and the
company stays agile.
Discussion Questions and Possible Responses
1. How well suited do you think Netflix’s principles are to managing the knowledge
workers (mainly software engineers) who work for Netflix? Explain.
2. What qualities of Netflix support the idea that it is a high-performance work system?
What other qualities would contribute to it being a high-performance work system?
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Chapter 02 – Trends in Human Resource Management
ROADMAP
HR in Small Business
Radio Flyer Rolls Forward
Radio Flyer is a private business that has gone through some difficult times. It spent
hundreds of thousands of dollars on a project that they then had to abandon. Next, they
had to close their factory in Chicago and outsource their manufacturing to China, laying
off about half of its workforce. The company has made efforts to build morale its
remaining U.S. workforce, holding events like Radio Flyer Olympics and providing
incentives for employees to participate in health-related activities.
Discussion Questions and Possible Responses:
1. How could a human resource manager help Radio Flyer get the maximum benefit
from the motivational efforts described in this case?
2. Do you think outsourcing would be harder on employees in a small company such
as Radio Flyer than in a large corporation? Why or why not? How could HRM help
to smooth the transition?
3. What additional developments described in this chapter could help Radio Flyer live
out the high value it places on learning and innovation?
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duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 02 – Trends in Human Resource Management
HRM DVD Vol 3 Suggested Video with Discussion Questions and Possible Responses
Video Part 1: Once the Deal is Done: Making Mergers Work (20:56)
Video Summary
Every year there are thousands of mergers and acquisitions, totaling trillions of dollars.
According to studies, 2/3rds of mergers failed to live up to the expectations for them. Although
firms often join together for financial reasons, the top challenge in mergers and acquisitions is
integrating different cultures. Cultures can vary in many ways including the customs of
conducting business, how people are expected to act, and behaviors that are rewarded.
The video reviews a merger between the Australian insurance company, Bupa Australia, now
the nations largest, privately managed health insurance group, and the NBF group, which was
Australia’s second largest health insurer. Senior leaders in both companies realized that great
people were the key to delivering the promise of becoming a healthcare partner for its
customers. A major objective in the new company was to retain talented people.
The video focuses on the post merger integration process, which is critical when two large
companies join together. The Managing Director of Bupa, Richard Bowden, describes the keys
to successful integration.
Discussion Questions
1. What are some of the key strategies that companies can utilize with employees to ensuring a
successful merger or acquisition?
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Chapter 02 – Trends in Human Resource Management
2. What are some of the major challenges companies face when confronted with a merger and
acquisition?
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duplicated, forwarded, distributed, or posted on a website, in whole or part.