12
Chapter 6: Human Resource Decision Making in Organizations
D. Measuring and Monitoring Job Satisfaction
Organizations spend a fair amount of time and effort monitoring the levels of their
employees’ job satisfaction, primarily through the use of attitude surveys that are distributed
The primary reason to measure job satisfaction is because dissatisfied employees tend to quit
their jobs; over time, those employees who are the most dissatisfied will quit the soonest. As a
result, it is quite likely that the overall levels of job satisfaction will go up, even if the
organization does nothing to improve job satisfaction, because only the most satisfied
employees are still on the job. The others have already left, indicating a serious problem that
the organization could overlook if managers are not paying attention.
E. Retention Strategies
When an organization learns of a potential problem, most likely through a survey, it is
important that something be done. Employees are less likely to respond honestly to survey
13
Chapter 6: Human Resource Decision Making in Organizations
V. Managing Human Resources During Mergers and Acquisitions
Although a lot of attention is paid to big mergers and acquisitions, the public is less aware that
many mergers and acquisitions actually fail. There is considerable speculation and some limited
research on why mergers and acquisitions fail, but much of the attention has been paid to a deal’s
financial elements (e.g., the acquiring firm paid too much) or to strategic elements (e.g., the new
business was too far from the firm’s areas of expertise).
Mergers and acquisition also threaten the way employees think about themselves. This core
belief is known as a person’s self-identity, and a great deal of their self-identity is tied up with
what they do and for whom they work.
Closing Case: Hard Facts and Half-Truths
Case Summary
Stanford University professors Jeffrey Pfeffer and Bob Sutton, authors of Hard Facts,
Dangerous Half-Truths, and Total Nonsense, have put out a call for a renewed reliance on
rationality in managerial decision making—an approach that they call evidence-based
14
Chapter 6: Human Resource Decision Making in Organizations
management (EBM). They define evidence-based management as “a commitment to finding and
using the best theory and data available at the time to make decisions,” but their “Five Principles
of Evidence-Based Management” make it clear that EBM means more than just sifting through
Case Questions
1. Do you think evidence-based management seems like common sense? If so, why wasn’t it
advocated earlier?
Students’ answers to this question might vary. Evidence-based management (or EBM)
might seem like common sense although this may not be the case. EBM, in other words, is
2. Are there circumstances in which evidence-based management might not be the best
approach?
Students’ answers to this question might vary. Most of the time, evidence-based
management is the best approach to follow. Management decisions should be based on the
15
Chapter 6: Human Resource Decision Making in Organizations
3. Could automated evidence-based management ever replace human decision makers? Why
or why not?
Students’ answers to this question might vary. Automated evidence-based management (or
4. Would you want your work under Jack Welch’s system at General Electric? Why or why
not?
Student’s answers to this question might vary. Jack Welch practices “forced ranking”
The following items appear on the in-text Instructor Prep Cards. These notes and
suggested talking points should help instructors conduct these exercises with the students.
Discussion Questions
1. Explain how organizations can temporarily increase the size of their workforce.
There are several methods that can be used to temporarily increase the size of the
2. Identify and discuss examples of distributive, procedural, and interactional justice that you
have experienced.
16
Chapter 6: Human Resource Decision Making in Organizations
Students’ answers will vary. Here’s an example. “I experienced distributive justice when I
studied hard for an exam and made a failing grade. Then I realized that the class average
3. Summarize the basic legal issues involved in layoffs.
Layoffs become legally problematic if the actual strategy used for determining who will be
laid off is not reasonable. A layoff strategy that targets older workers is probably illegal
4. Distinguish between involuntary and voluntary turnover.
There are times when the organization seeks to sever the employment relationship, not
with a large number of employees but with specific employees. Involuntary turnover is
17
Chapter 6: Human Resource Decision Making in Organizations
5. Discuss the process of progressive discipline, and explain its importance to organizations.
Progressive discipline is a system whereby employees who do not perform up to standards
or who exhibit behavior that is problematic for the organization are given increasingly
6. What is employment-at-will? Comment on the positive and negative characteristics of this
concept.
Employment at will asserts that because an employee can terminate an employment
7. What are the basic causes of job dissatisfaction?
A major cause for turnover is job dissatisfaction, or being unhappy with one’s job.
18
Chapter 6: Human Resource Decision Making in Organizations
8. Discuss the fundamental issues of validity as they relate to measures of job satisfaction.
Validity concerns are made up of two separate issues: reliability and validity. A measure of
job satisfaction is reliable if it returns consistent results, that is, if a measurement can be
9. What are the basic consequences of job dissatisfaction in the workforce?
A primary concern with job dissatisfaction is that it leads to increased voluntary turnover.
Job dissatisfaction is a major determinant of turnover, but it also predictive of other types
of withdrawal behavior such as absenteeism or tardiness. A more subtle form of
19
Chapter 6: Human Resource Decision Making in Organizations
10. Describe realistic job previews and comment on their role in rightsizing.
In a Realistic job previews (RJP) are pre-employment previews that provide accurate and
realistic information to the job applicant. They are often used with new employees as a
Ethical Dilemmas in HR Management
Scenario Summary
A human resource manager has been asked to resolve a situation that has developed between a
supervisor and his recently terminated employee. This employee has threatened to take legal
action. The employee maintains that she was terminated for attending a meeting of employees
Questions
1. What are the ethical issues in this situation?
The employee has a legal right to join a union, and the company has no moral grounds for
objecting to her interest. If she was fired because of her union interest, then ethics dictate
20
Chapter 6: Human Resource Decision Making in Organizations
2. Do you believe that the termination was the result of poor performance alone?
The fact that the manager seems to have personal animosity toward the employee makes
3. How important is the fact that the company lawyers have suggested this case is a “sure
win” for the company?
Ethically, not at all important. Practically, of only moderate importance. Given the high
Assignment
Purpose: The purpose of this exercise is to help students develop a better understanding of how
experts retain valuable employees.
Step 1 (5 minutes): Divide the class into small groups of four to five students. Each student
Step 2 (5 minutes): Student groups should assume that they represent a consulting firm. They
Step 3 (20 to 30 minutes): The client is only somewhat concerned about business competition
21
Chapter 6: Human Resource Decision Making in Organizations
Step 4 (10 to 20 minutes): Develop answers to the following:
1. What information will you need to help your client?
Students will need information about every factor that leads to job satisfaction or
2. Where can you obtain this information?
The client firm information is easily accessible, with the cooperation of the business’s
3. What kinds of retention ideas come to mind first?
One retention technique would be to work on issues of job design and job enrichment to