1
ANNOTATED OUTLINE
PART ONE INTRODUCTION
C H A P T E R
T O n e
Managing Human Resources
Today
Lecture Outline
Strategic Overview
I. What Is Human Resource Management?
A. Why Is HR Management Important to All
Managers?
B. Line and Staff Aspects of HRM
C. Line Versus Staff Authority
D. Line Manager’s Human Resource Responsibilities
E. The Human Resource Department
II. The Trends Shaping Human Resource
Management
A. Workforce Demographics and Diversity Trends
B. Trends in How People Work
C. Globalization Trends
D. Economic Trends
E. Technology Trends
III. The New Human Resource Management
A. Distributed HR and the New Human Resource
Management
B. HR and Performance
C. HR and Employee Engagement
D. HR and Strategy
E. HR and Sustainability
F. HR and Ethics
IV. The New Human Resource Manager
A. HR and the Manager’s Skills
B. HR Manager Certification
C. HR and the Manager’s HR Philosophy
V. The Plan of This Book
A. Part 1: Introduction
B. Part 2: Staffing: Workforce Planning and
Employment
C. Part 3: Training and Human Resource
Development
D. Part 4: Compensation and Total Rewards
E. Part 5: Employee and Labor Relations
F. Part 6: Special Issues in Human Resource
Management
2
I. What Is Human Resource Management? — The management process
involves the following functions: planning, organizing, staffing, leading, and
controlling. The “people” or personnel aspects of management jobs involve
conducting job analyses; planning labor needs and recruiting job candidates;
selecting job candidates; orienting and training new employees; managing
A. Why Is HR Management Important to All Managers? — Managers don’t want
to make mistakes while managing, such as hiring the wrong person, having
their company taken to court because of discriminatory actions, or
B. Line and Staff Aspects of HRM — Although most firms have a human
C. Line Versus Staff Authority — Authority is the right to make decisions, to
direct the work of others, and to give orders. Line managers are authorized to
direct the work of subordinates. Their subordinates are generally involved in
D. Line Manager’s Human Resource Responsibilities — All supervisors are
responsible for aspects of HR/personnel tasks such as placement, training,
and development of employees.
E. The Human Resource Department — The HR department provides
specialized assistance such as acting as a recruiter, EEO representative, job
analyst, compensation manager, training specialist, or labor relations
specialist.
1. Many employers are revamping how they organize their human
resource functions to include “shared services” or “distributed” HR.
Others may use corporate or embedded teams.
II. The Trends Shaping Human Resource Management — Trends in the
environment are changing how employers get their human resource
management tasks done.
3
Copyright © 2019 Pearson Education, Inc.
previously retired employees. High rates of immigration also present
challenges and opportunities for HR managers. With projected workforce
shortfalls, many employers are hiring foreign workers for U.S. jobs.
Milennials who grew up with technology are experts at collaborating.
B. Trends in How People Work — Technological change will continue to shift
growth in employment opportunities in different occupations.
1. Service jobs — More than two-thirds of the U.S. workforce is
employed in producing and delivering services, as opposed to
products.
C. Globalization Trends — Refers to the tendency of firms to extend their sales,
ownership, or manufacturing to new markets abroad. The rate of
globalization continues to be high, and has several strategic implications for
firms. More globalization means more competition, and more competition
means more pressure to lower costs, make employees more productive, and
do things better and less expensively.
D. Economic Trends — All these trends are happening within a context of
economic upheaval. U.S. consumers actually spend more than they earn.
The United States itself has become a debtor nation. The United States has
1. The labor force is growing more slowly than expected; as Baby
Boomers leave the workforce, the labor participation rate declines,
contributing to a slowing of economic growth.
E. Technology Trends — Companies are using digital and mobile devices to
deliver human resource management services; some are using artificial
intelligence. Some use cloud-based performance management systems.
1. Employers are becoming more dependent on their workers’ human
capital: knowledge, education, training, skills, and expertise.
III. The New Human Resource Management — HR management has evolved
over the years and is now much more involved in strategic planning. The
trends discussed above create new challenges for employers and the
following responses reflect HR’s role in meeting these challenges.
A. Distributed HR and the New Human Resource Management — Digital tools
such as mobile phones and social media have prompted a redistribution from
a central HR department to the company’s employees and line managers.
B. HR and Performance — HR must lead the company’s performance
improvement efforts through structuring an efficient HR department,
managing employee costs, and working toward strategic results.
1. HR and Performance Measurement – HR must use performance
measures to validate improved performance.
4
2. HR and Evidence-based Management – Using data, facts, analytics,
scientific rigor, critical evaluation, and critically evaluated
research/case studies to support HR proposals, decisions, practices,
and conclusions.
3. HR and Adding Value – HR must add value, which means helping
the firm and its employees improve in a measurable way as a result
of the human resource manager’s actions.
C. HR and Employee Engagement — The HR function must ensure employees
understand the difference between involvement and commitment. Employees
D. HR and Strategy — Strategic HR management means formulating and
executing human resource policies and practices that produce the employee
competencies and behaviors the company needs to achieve its strategic
aims.
E. HR and Sustainability — When strategic goals include sustainability issues
(including not only profits but also environmental and social performance),
IV. The New Human Resource Manager — The Society for Human Resource
Management itemizes the competencies, skills, knowledge, and expertise
human resource managers need and the basic functional areas of HR.
A. HR and the Manager’s Skills — HR can help managers build the skills they
need to carry out HR management–related aspects of their jobs such as
recruiting, selecting, training, appraising, and incentivizing employees.
B. HR Manager Certification — Many HR managers use certification to show
their mastery of modern human resource management knowledge. The HR
C. HR and the Manager’s HR Philosophy — Peoples’ actions are always based,
in part, on the basic assumptions they make; this is especially true in regard
to human resource management. The basic assumptions you make about
5
V. The Plan of This Book — Each topic interacts with and affects the others,
and all should fit within the employer’s strategic plan.
A. Part 1: Introduction
1. Chapter 1: Managing Human Resources Today
2. Chapter 2: Managing Equal Opportunity and Diversity
3. Chapter 3: Human Resource Strategy and Analysis
B. Part 2: Staffing: Workforce Planning and Employment
1. Chapter 4: Job Analysis and Talent Management
2. Chapter 5: Personnel Planning and Recruiting
3. Chapter 6: Selecting Employees
C. Part 3: Training and Human Resource Development
1. Chapter 7: Training and Developing Employees
2. Chapter 8: Performance Management and Appraisal Today
3. Chapter 9: Managing Careers
D. Part 4: Compensation and Total Rewards
1. Chapter 10: Developing Compensation Plans
2. Chapter 11: Pay for Performance and Employee Benefits
E. Part 5: Employee and Labor Relations
1. Chapter 12: Maintaining Positive Employee Relations
2. Chapter 13: Labor Relations and Collective Bargaining
3. Chapter 14: Improving Occupational Safety, Health, and Risk
Management
F. Part 6: Special Issues in Human Resource Management
1. Module A: Managing HR Globally
2. Module B: Managing Human Resources in Small and
Entrepreneurial Firms
Organization
A group consisting of people with formally assigned
roles who work together to achieve the
organization’s goals.
Manager
Someone who is responsible for accomplishing the
organization’s goals and who does so by managing
the efforts of the organization’s people.
Managing
Performing five basic functions: planning,
organizing, staffing, leading, and controlling.
KEY TERMS
6
Management process
The five basic functions: planning, organizing,
staffing, leading, and controlling.
Human Resource Management
(HRM)
The process of acquiring, training, appraising, and
compensating employees, and attending to their
labor relations, health and safety, and fairness
concerns.
Authority
The right to make decisions, to direct the work of
others, and to give orders.
Line manager
A manager who is authorized to direct the work of
subordinates and is responsible for accomplishing
the organization’s tasks.
Staff manager
A manager who assists and advises line managers.
Gig workers
The large and growing workforce composed of
contract, temp, freelance, independent contractor,
“on-demand,” or simply “gig” workers
Employment engagement
The extent to which an organization’s employees
are psychologically involved in, connected to, and
committed to getting one’s jobs done.
Strategic HRM
Formulating and executing human resource policies
and practices that produce the employee
competencies and behaviors the company needs to
achieve its strategic aims.
Ethics
The principles of conduct governing an individual or
a group; specifically, the standards you use to
decide what your conduct should be.
DISCUSSION QUESTIONS
1-1. What is human resource management? There are five basic functions that all
1-2. Explain with at least five examples why “a knowledge and proficiency in HR
management concepts and techniques is important to all supervisors or
managers.” HR management concepts and techniques can help all managers to ensure
that they get results through others. These concepts and techniques also help managers
7
1-3. Explain with examples what we mean by the “the changing environment of human
resource management.” Companies are competing in a challenging new environment.
1-4. Give examples of how the HR manager can support a company’s sustainability
goals. There are many ways in which the HR manager can support a company’s
sustainability goals. HR can assist in planning and staffing sustainability jobs within the
1-5. Discuss with examples four important issues influencing HR management today. This item can be assigned as a Discussion Question in MyLab Management. Student responses will vary. (LO 1.3: Discuss at least five consequences such trends have for human resource management today.)
1-6. Explain HR management’s role in relation to the firm’s line management. This item
can be assigned as a Discussion Question in MyLab Management. Student responses
1-7. Compare the authority of line and staff managers. Give examples of each. Line
managers have line authority, which gives them authorization to give orders and manage
their employees. Staff managers are authorized to assist and advise line managers.
INDIVIDUAL AND GROUP ACTIVITIES
1-8. Working individually or in groups, contact the HR manager of a local bank. Ask the
HR manager how he or she is working as a strategic partner to manage human
resources, given the bank’s strategic goals and objectives. Back in class, discuss
the responses of the different HR managers. The students should ask the HR
manager to discuss how his or her role as a strategic partner is improving the bank’s
1-9. Working individually or in groups, interview an HR manager. Based on that
interview, write a short presentation regarding HR’s role today in building
competitive organizations. The response here will, of course, depend upon the
8
Copyright © 2019 Pearson Education, Inc.
management?” and “Why is knowing HR management concepts and techniques
important to any supervisor or manager?”)
1-10. Working individually or in groups, bring several business publications such as
Business Week and the Wall Street Journal to class. Based on their content,
compile a list entitled, “What HR Managers and Departments Do Today.” The
students should look for articles and advertisements that deal with any of the following
1-11. Based on your personal experiences, list 10 examples showing how you used (or
could have used) human resource management techniques at work or school.
Depending on the degree of their work experience, students will cite a wide range of
examples possibly including some of the following: 1) situations where they have
1-12. Laurie Siegel, senior vice president of human resources for Tyco International,
took over her job in 2003, just after numerous charges forced the company’s
previous board of directors and top executives to leave the firm. Hired by new CEO
Edward Breen, Siegel had to tackle numerous difficult problems starting the
moment she assumed office. For example, she had to help hire a new management
team. She had to do something about what the outside world viewed as a culture
of questionable ethics at her company. And she had to do something about the
company’s top management compensation plan, which many felt contributed to
the allegations by some that the company’s former CEO had used the company as
a sort of private ATM.
Siegel came to Tyco after a very impressive career. For example, she had been
head of executive compensation at AlliedSignal, and was a graduate of the Harvard
Business School. But, as strong as her background was, she obviously had her
work cut out for her when she took the senior vice president of HR position at
Tyco.
Working individually or in groups, conduct an Internet search and library research
to answer the following questions: What human resource management–related
steps did Siegel take to help get Tyco back on the right track? Do you think she
took the appropriate steps? Why or why not? What, if anything, do you suggest
she do now?
Tyco’s top executives, (the Chairman/Chief Executive as well as the CFO) had been
accused of playing fast and loose with corporate accounting and of using the company’s
coffers as personal piggy banks. Upon taking office, Breen fired the entire board of
directors, and then dismissed the entire headquarters staff of 125 people. He recruited a
9
new, completely independent board of directors and hired a CFO, an ombudsman and a
vice president of corporate governance who reports directly to the board.
As a result of the above steps, Tyco is now aiming for higher marks in ethics. It has
written and circulated a multi-page ethics policy, and hired more than 100 internal
auditors to enforce it. It has a new corporate ombudsman, to address employee concerns
1-13. Working individually or in groups, develop a list showing how trends such as
workforce diversity, technological trends, globalization, and changes in the nature
of work have affected the college or university you are now attending or in the
1-14. Working individually or in groups, develop several examples showing how the new
HR management practices mentioned in this chapter (using technology, for
instance) have or have not been implemented to some extent in the college or
university you are now attending or in the organization for which you work. The list
1-15. For this activity, you will need the documents titled (1)HRCI PHR® and SPHR®
Certification Body of Knowledge, and (2) “About the Society for Human Resource
Management (SHRM) Body of Competency and Knowledge™ Model and
Certification Exams.” Your instructor can obtain these two documents from the
10
Pearson Instructor Resource Center and pass them on to you. These two
documents list the knowledge someone studying for the HRCI or SHRM
certification exam needs to have in each area of human resource management
(such as in Strategic Management and Workforce Planning). In groups of several
students, do four things: (1) review the HRCI and/or SHRM documents; (2) identify
the material in this chapter that relates to HRCI’s or SHRM’s required knowledge
lists; (3) write four multiple-choice questions on this material that you believe
would be suitable for inclusion in the HRCI exam and or the SHRM exam; and (4) if
time permits, have someone from your team post your team’s questions in front of
Students can find the following assisted-graded writing questions at
1-16. How do today’s HR managers deal with the trends and challenges shaping
contemporary HR management?
1-17. Discuss some competencies HR managers need to deal with today’s trends and
challenges.
APPLICATION EXERCISES
HR in Action Case Incident 1: Jack Nelson’s Problem
1-18. What do you think is causing some of the problems in the bank home office and
branches? There is clearly a problem with communication, and the effects are felt in the
1-19. Do you think setting up an HR unit in the main office would help? Of course it would!
1-20. What specific functions should an HR unit carry out? What HR functions would
then be carried out by the bank’s supervisors and other line managers? There is
room for quite a bit of variation in the answers to this question. Our suggested
organization would include: HR Unit: job analyses, planning labor needs and recruiting,
HR in Action Case Incident 2: Carter Cleaning Company: Introduction
11
1-21. Make a list of five specific HR problems you think Carter Cleaning will have to
grapple with.
Potential answers could include the following:
1. Staffing the company with the right human capital by identifying the skills and
2. Planning and establishing operational goals and standards, and developing rules and
3. Implementing effective Performance Management through setting performance
4. Designing an effective compensation system that will give the company the ability to
5. Training and developing employees both at the management and employee level to
be able to perform the job to meet the performance expectations. This should include a
1-22. What would you do first if you were Jennifer? Answers will vary; however, probably
the most important first step is to ensure that the staffing process is well designed and
Teaching Tips: It is important for students to understand at this point in the course
that Human Resource Management is a topic that applies to each of them,
regardless of whether they plan a career in the HR department; that is, every
manager must be cognizant of methods for improving employee performance, and
Experiential Exercise: HR and “The Profit”
Purpose
12
The purpose of this exercise is to provide practice in identifying and applying the basic concepts
of human resource management by illustrating how managers use these techniques in their day-
to-day jobs.
Required Understanding
Be thoroughly familiar with the material in this chapter, and with at least one or two episodes of
CNBC’s The Profit with Marcus Lemonis (www.tv.com/shows/the-profit-watch/). (Access a library
of past episodes at URLs such as www.cnbc.com/live-tv/the-profit.)
How to Set Up the Exercise/Instructions
Divide the class into teams of several students.
Read this: As you may know by watching billionaire Marcus Lemonis as he works
with actual small businesses in which he’s taken an ownership share, human
resource management often plays an important role in what he and the business
owners and managers need to do to be successful. For example, at Grafton
Furniture, a lack of clarity about who does what (a lack of up–to-date job
descriptions) leads to inadequate supervision of some ongoing orders and to
lower profit margins. Questions also arise at Grafton about, for instance, the
effectiveness of the training that some managers (including the owner’s son) have
received.
Watch several of these shows (or reruns of the shows), and then meet with your
team and answer the following questions:
1.23 What specific HR functions (recruiting, interviewing, and so on) can you identify
Donald Trump using on the show? Make sure to give specific examples. Recruiting,
1.24 What specific HR functions can you identify one or more of the team leaders use to
help manage his or her team(s) on the show? Again, please make sure to give
specific answers. Examples may include team leaders employing human resource
1.25 Provide a specific example of how HR functions (such as recruiting, selection,
interviewing, compensating, appraising, and so on) contributed to one of the
participants coming across as particularly successful to Mr. Trump? Can you
provide examples of how one or more of these functions contributed to a
participant being told by Mr. Trump, “You’re fired”? Encourage students to identify
specifically what was done effectively in the example they cite from an HR perspective,
13
1.26 Present your team’s conclusions to the class. Solicit feedback from the class on each
team’s conclusions and facilitate a discussion on reactions to each group’s presentation.
Ask the following questions:
i. Do you agree with the team’s conclusions? Why or why not?
ii. Do you agree with Donald’s decision to fire or not fire?
iii. If you were the team leader in this example, what would you have done
differently?
WEB-e’s (Web exercises)
1. Several years ago, Stanford’s restaurant in Lake Oswego was written up for how well it
used HR to keep good employees. What do customers at sites such as
2. The Web site http://www.co.pinellas.fl.us/persnl/pdf/orgchart.pdf shows one example
of an HR organization. Find two others and compare them to each other. Students
ADDITIONAL ASSIGNMENTS
1. Give examples of how HR management concepts and techniques can be of use to
all managers. HR management concepts and techniques can help all managers to
ensure that they get results through others. These concepts and techniques also help
you to avoid common personnel mistakes such as: hiring the wrong person; experiencing
2. Illustrate the HR responsibilities of line and staff managers. Line managers are
someone’s boss; they direct the work of subordinates in pursuit of accomplishing the
organization’s basic goals. Some examples of the HR responsibilities of line managers
are: placing the right person on the job; starting new employees in the organization