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Fundamentals of Human Resource Management, 8e Instructor’s Manual
02-1
Chapter 2
Trends in Human Resource Management
This chapter continues to provide the foundation for the textbook, as it now explores the
environment in which HRM operates. Trends in the labor force are discussed as well as the
internal labor force (an organization’s workers) and the external labor market (individuals who
are actively seeking employment).
Chapter Outline
Change in the Labor Force
• U.S. labor market is aging and becoming more racially and ethnically diverse.
• Organizations must:
• Recruit from a diverse population.
• Establish bias-free HR systems.
• Help employees understand and appreciate cultural differences.
High-Performance Work Systems
• HRM can help organizations find and keep the best possible fit between their social and
technical systems.
• Job design and appropriate systems for assessment and rewards have a central role in
supporting employee empowerment and teamwork.
• Employee empowerment means giving employees responsibility and authority to make
decisions regarding all aspects of product development or customer service.
• HRM must design jobs to give employees latitude for decision-making and
interpersonal skills.
Focus on Strategy
▪ HR professionals should be familiar with the organization’s strategy and may play a
role in developing the strategy.
• Organizations with international operations hire employees in foreign countries where
they operate, so they need knowledge of differences in culture and business practices.
Technological Change in HRM
• Many organizations have a human resource information system (HRIS), a computer
system used to acquire, store, manipulate, analyze, retrieve, and distribute information
related to an organization’s human resources.
• Using computers to analyze large amounts of data and offer information to guide
decisions is often called people analytics.
• AI
Change in the Employment Relationship
• Organizations and employees need to be flexible and open to change.
Fundamentals of Human Resource Management, 8e Instructor’s Manual
02-2
Copyright © 2020 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
Learning Objectives
LO 2-1: Describe trends in the labor force composition and how they affect human resource
management.
LO 2-2: Summarize areas in which human resource management can support the goal of
creating a high-performance work system.
LO 2-3: Define employee empowerment, and explain its role in the modern organization.
LO 2-4: Identify ways HR professionals can support organizational strategies for growth,
quality, and efficiency.
LO 2-5: Summarize ways in which human resource management can support organizations
expanding internationally.
LO 2-6: Discuss how technological developments are affecting human resource management.
LO 2-7: Explain how the nature of the employment relationship is changing.
LO 2-8: Discuss how the need for flexibility affects 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
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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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
Fundamentals of Human Resource Management, 8e Instructor’s Manual
02-4
Copyright © 2020 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
Question Guidance to Vignettes and Discussion Questions
Best Practices
Helping Panda Express Workers Communicate
1. What business reasons might support Panda Express’s practice of hiring many workers
whose first language is not English?
2. What advantages do you think Panda Express gains from offering English-language
instruction as an employee benefit?
HRM Social
Glassdoor Reviews Foster Better Communication
1. In what ways is knowledge a source of power for workers in this example? In what ways
does the knowledge shared on Glassdoor empower Purina?
2. Besides opinions about their company, what other kinds of knowledge could employees
constructively share on social media (Glassdoor and other tools)?
HR Oops!
HRM Barely Gets a Passing Grade
1. Imagine that you work for a manufacturing company where the HR department’s
performance on providing the necessary talent is just "adequate." From a business
standpoint, what might be the consequences of this less-than-excellent performance?
Fundamentals of Human Resource Management, 8e Instructor’s Manual
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2. Imagine you run the HR department in that same manufacturing company. What is one
step you could take to improve your department’s performance?
the outlined negatives and turn them into positives.
HR How To
Handling HR Implications of Artificial Intelligence
1. Based on the information given here, suggest a problem that could cause an AI system to
give poor results.
2. What should an HR department consider besides cost savings when evaluating the use of
artificial intelligence?
Did You Know?
Half of U.S. Employees Looking to Change Jobs
1. What challenges and opportunities do employers face in a climate where half of an
organization’s employees feel ready to leave?
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.
End of Chapter Questions and Cases
Thinking Ethically
How Solid Is Your Digital Footprint?
1. Which of the following would you include in your social-media networks? Current co-co-
workers? Past co-workers? Current supervisor? Competitors?
2. What standards do you apply to your own social-media conduct? Which of these, if any,
would you consider ethical standards?
Review and Discussion Questions
1. How does each of the following labor force trends affect HRM? (LO 2-1)
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 people’s performance by relying on
knowledge workers, empowering employees, and assigning work to teams. How can
HRM support these efforts? (LO 2-2)
Fundamentals of Human Resource Management, 8e Instructor’s Manual
02-7
Copyright © 2020 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
performance management, training, work design, and compensation to ensure success of
employee empowerment; and increasing the employees’ responsibilities and control via
work assigned to teams.
3. How do HRM practices such as performance management and work design encourage
employee empowerment? (LO 2-3)
4. 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. (LO 2-4)
5. When an organization decides to operate facilities in other countries, how can HRM
practices support this change? (LO 2-5)
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.
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 in the outside firm
that has the contract to provide the HR services? Why? (LO 2-6)
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? (LO 2-6)
8. How is the employment relationship typical of modern organizations different from the
relationship of a generation ago? (LO 2-7)
9. Discuss several advantages of flexible work schedules. What are some disadvantages?
(LO 2-8)
Fundamentals of Human Resource Management, 8e Instructor’s Manual
02-9
Copyright © 2020 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
reduce payroll and benefit costs; this flexibility also allows for hiring people with special
skills and abilities as needed.
Disadvantages include not having employees available at all times—especially those with
certain skills, and employees who are not as engaged in the culture and lack loyalty to the
organization.
Taking Responsibility
Paychex Keeps People by Helping Them Retire
1. What business benefits might result from Paychex’s efforts to make its benefits more
valuable by helping employees get the most out of using them?
2. How do the principles of a new psychological contract apply to the situation described in
this case?
Managing Talent
Employee Engagement Helps Bank’s Business
1. Why is employee engagement valuable to PeoplesBank? What trends in human resource
management contribute to the value of employee engagement?
2. Think about what you have learned so far about HR functions. Based on that information,
what are some general efforts the HR department of PeoplesBank could make to promote
employee engagement?
Fundamentals of Human Resource Management, 8e Instructor’s Manual
02-10
Copyright © 2020 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
HR in Small Business
New Belgium Brews Success through Employee Ownership
1. What principles and practices of employee empowerment are illustrated by the way New
Belgium uses an employee stock ownership plan?
2. How do training programs at New Belgium support the company’s strategy?
Fundamentals of Human Resource Management, 8e Instructor’s Manual
02-11
Recommended Connect Activities
HRM and Alternative Work Arrangements
Learning Objective: 02-07 Explain how the nature of the employment relationship is changing.
Activity Summary: In this case analysis, students demonstrate their understanding of the
performance appraisal process by aligning examples of each step and placing them in the
appropriate order.
Follow-Up Activity: Additional classroom activities can be done individually, in small groups,
or as a class. Students can document specific people in their networks that have different career
paths and then name advantages/disadvantages of each path. The same process could work for
current career and/or desired career. Emphasis should be placed on aligning course content to the
examples.
People Operations at Google
Learning Objective: 02-02 Summarize areas in which human resource management can support
the goal of creating a high-performance work system.
Activity Summary: The video case encourages students to apply course content to actual high-
performing organizations.
Follow-Up Activity: Have small groups pick an average or poorly performing company and
then make recommendations on how HR could improve the organizational outcomes.
HRM–Strategy Linkage
Learning Objective: 02-04 Identify ways HR professionals can support organizational strategies
for growth, quality, and efficiency.
Activity Summary: The case analysis provides students with the understanding of how strategy
formulation and implementation are critical to achieving organizational success.
Follow-Up Activity: Introduce some case studies that detail a specific link between HRM and
corporate strategy to make this discussion come alive. Another classroom discussion could be
focused on the following article from The Economic Times, The Future is now: The Changing
role of HR. The article discusses factors such as AI, employee engagement, and strategy.
CHRO Conversations: Ellyn Shook, Accenture
Learning Objective: 02-06 Discuss how technological developments are affecting human
resource management.
Activity Summary: The video case improves student understanding of factors that must be
considered when evaluating changes in the workplace.
Follow-Up Activity: Upon completion of the video and multiple-choice questions, have students
take content from the chapter and apply it directly to what they experience in their own work
Fundamentals of Human Resource Management, 8e Instructor’s Manual
02-12
Copyright © 2020 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-
Hill Education.
environments. Terms such as AI, learning, re-skilling, blockchain, mobile/classroom/training
centers, and the various forms of technology could all be discussed. To further the exercise, have
students make implementation plans based on the terms they previously identified.
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. Labor Force Trends
Instructors may engage students in a general discussion meant to support the
understanding of labor force trends. Review and Discussion question #1 may be used to
begin the conversation. Instructors may then follow up by asking students to identify
methods that organizations may use to handle these trends.
2. Outsourcing Functions
Students may be asked to discuss outsourcing by first posing Review and Discussion
question #6. Instructors may then ask students to respond to Review and Discussion
question #7. Students may then be asked to discuss the Best Practices vignette.
3. Employee Expectations
Instructors may facilitate a discussion on employee expectations by asking students to
discuss the Did You Know? vignette. Instructors may also ask students if they relate or
agree with the results. Then, instructors may have students discuss Review and
Discussion questions #8 and #9. To close the discussion, instructors may have students
discuss the Taking Responsibility vignette.
4. HRM Career Considerations
Instructors may wish to have students identify components in Chapter 2 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.
