Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
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“What did you dislike about the work environment here?” An exit interview survey at a Boston
hospital showed that 20% said they had problems with the work schedule and 15% said they disliked their
direct supervisor. This information encouraged hospital administrators to implement schedule alternatives
and management training for supervisors.
Finally, the exit interview information should be used. Managers at AT&T produce a twice-
yearly, in-depth analysis of exit interview findings, which are presented to the senior vice president of
human resources. The information is used to reexamine policies, make suggestions for change, and gener-
ally help retain skilled employees. Some of the best ideas have come from people who are leaving.
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critical
thinking exercises
Name: ___________________________
Date: ___________________________
critical thinking exercise 11-1
EXPANDING THE WORKFORCE
You are the human resource manager for Kaiser Electronics, Inc. Kaiser is considering expanding
its operations in order to double its current $1.5 million in sales in five years. This means production must
double. It will require expanding the workforce and payroll. You have been asked to project the staffing
levels and payroll costs necessary to expand. You report that in addition to the current workforce, the fol-
lowing personnel will be required:
Two additional sales representatives
Two additional secretaries (both Level 6)
Ten additional assembly-line operators (Level 4) for the production department
Three additional materials handlers (Level 4) for the production department
One additional assembly-line supervisor (Level 14)
Now you must estimate the costs of adding these personnel to the payroll. Use the chart “Future
Payroll Estimates” to compute your projection figures (assume the current pay scales remain unchanged).
Then use the chart to answer the following questions:
1. What will be the projected annual payroll cost?
2. If Kaiser does double its sales in five years, what percentage of sales will payroll be in five years?
What percentage is it today?
3. Would you recommend the expansion? Why or why not?
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critical thinking exercise 11-1 (continued)
Future Payroll Estimates
Position
Pay
Scale
Present
Staff
Present
Payroll
Projected
Staff
Projected
Payroll
Management
Level 24
Level 18
$65,000
$45,000
1
1
_________
_________
_______________
_______________
Clerical
Level 10
Level 6
$21,000
$16,000
2
3
_________
_________
_______________
_______________
Production
Level 14
Level 10
Level 8
Level 5
Level 4
$26,000
$19,000
$16,000
$13,000
$11,000
3
1
2
2
13
_________
_________
_________
_________
_________
_______________
_______________
_______________
_______________
_______________
Sales
Level 10
$26,000
5
_________
_______________
Totals
36
_________
_______________
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notes on critical thinking exercise 11–1
Position
Pay
Scale
Present
Staff
Present
Payroll
Projected
Staff
Projected
Payroll
Management
Level 24
Level 18
$65,000
$45,000
1
1
$65,000
$45,000
1
1
$65,000
$45,000
Clerical
Level 10
Level 6
$21,000
$16,000
2
3
$42,000
$48,000
2
5
$42,000
$80,000
Production
Level 14
Level 10
Level 8
Level 5
Level 4
$26,000
$19,000
$16,000
$13,000
$11,000
3
1
2
2
13
$78,000
$19,000
$32,000
$26,000
$143,000
4
1
2
2
26
$104,000
$19,000
$32,000
$26,000
$286,000
Sales
Level 10
$26,000
5
$130,000
7
$182,000
Totals
36
$628,000
50
$881,000
1. What will be the projected annual payroll cost?
2. If Kaiser does double its sales in five years, what percentage of sales will payroll be in five
years? What percentage is it today?
3. Would you recommend the expansion? Why or why not?
Yes, the cost figures are good and the potential is good. The percentage of sales devoted to pay-
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Name: ___________________________
Date: ___________________________
critical thinking exercise 11-2
MANAGEMENT SELECTION
You are vice president of a medium-sized corporation that believes strongly in promoting from
within. You have two jobs to fill:
• General manager, Midwestern Division.
• Project manager, Internet marketing
On your desk are four resumes:
Peter Evans, 49. Evans, a white male, has been with the company for 18 years. He has been
in charge of the information technology department for the past 10 years. His em-
ployees praise him for his easygoing management style and computer skills. He is
married with three children.
Anylla Padova, 35. Padova, a white female, has been with the company for 10 years. She
started working in the shipping department, spent 4 years in sales, and for the past 3
years has been the manager of the company’s Mexico City office. She is fluent in
Spanish and French.
Jacques Davidson, 29. Davidson, an African American male, has worked for the company
for 3 years as supervisor in the production department. Production efficiency in his
work crew is the highest in the company. Prior to joining the company, Davidson
worked at a petrochemical refinery as supervisor.
Jocinta Fernandez, 23. Fernandez, a Hispanic American female, recently received an MBA
from the state university. Her undergraduate degree is in marketing. She has worked
for the company as an intern while attending school.
1. Analyze each job. What types of skills do you think each position would require?
2. What do you think of the company’s policy of promoting from within? Should you consider out-
side applicants for either of these positions? Why or why not?
3. Which of the four applicants would you hire for each position? Why?
4. Which employee characteristics should not be considered?
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notes on critical thinking exercise 11–2
1. Analyze each job. What types of skills do you think each position would require?
The position for general manager requires all the management skills described in Chapter 7.
2. What do you think of the company’s policy of promoting from within? Should you consider outside
applicants for either of these positions? Why or why not?
Hiring from within is good for the motivation of current employees. The company also knows the
3. Which of the four applicants would you hire for each position? Why?
4. Which employee characteristics should not be considered?
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Name: ___________________________
Date: ___________________________
critical thinking exercise 11-3
ONLINE JOB SEARCH
Go to the website for Monster.com (www.monster.com).viii (Sometimes the Web address for a
location changes. You might need to search to find the exact location mentioned.)
1. Use the search by geographic location (or by zip code) to pull up job openings in your home city.
List the three jobs that most interest you and/or match your skills and education.
2. Follow links to career resources (or job search resources). Which tools would be helpful to you in
a job search?
3. Go to other online employment agencies such as www.jobsearch.org, www.careerbuilder.com, or
www.hotjobs.com. Which site provides the information you need to search for a job?
4. Why would a company place an employment listing using an online employment service rather
than place an ad in a newspaper or trade journal?
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Name: ___________________________
Date: ___________________________
critical thinking exercise 11-4
DIVERSITY IN MANAGEMENT
The text discusses the increasing diversity in the management field. Go to the federal govern-
ment’s Bureau of Labor Statistics website and find the current statistics (www.bls.gov/cps).ix (Sometimes
the Web address for a location changes. You might need to search to find the exact location mentioned.)
Under the category “Characteristics of the employed,” choose “Employed persons by occupation,
race, and sex.”
1. What percentage of white females are in executive, administrative, and managerial positions?
2. What percentage of black males are in executive, administrative, and managerial positions?
3. What percentage of the entire workforce is in executive, administrative, and managerial posi-
tions?
4. Is the percentage of women managers increasing from the previous year or decreasing?
5. Is the percentage of black managers increasing from the previous year or decreasing?