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
• 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.
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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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
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
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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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?
2. How do you think hiring and training could work hand-in-hand to help a company such
as Abbott meet its business objectives?
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?
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.
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.
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Copyright © 2020 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
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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?
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?
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?
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?
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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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?
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?
Review and Discussion Questions
1. How can human resource management contribute to a company’s success? (LO 1-1)
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)
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Copyright © 2020 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
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)
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)
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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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)
6. Why do all managers and supervisors need knowledge and skills related to human
resource management? (LO 1-4)
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)
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.
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Suggest some ways the restaurant owner might address this dilemma. What aspects of
human resource management are involved? (LO 1-5)
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.
Taking Responsibility
Why Good Things Happen at Costco
1. In what ways does Costco meet the criteria for a “sustainable” organization?
2. What would you describe as Costco’s basic strategy as a retailer? How do its human
resource practices support that strategy?
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.
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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Copyright © 2020 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
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?
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.
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?
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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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.
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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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.
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.