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Chapter 10 - Human Resources Management
10-18
1. How will changes in the labor force affect HRM practices for the next decade?
As stated in the text, minorities, women (especially married women), and disabled workers will con-
tinue to play an important role in the increasingly diverse work force. Assuming the affirmative ac-
2. Describe the major regulations governing HRM practices.
The major regulations governing HRM practices are Title VII of the 1964 Civil Rights Act which
prohibit discrimination in employment (recruitment, hiring, discharge, layoffs, discipline, promotion,
3. Define job analysis. Why is job analysis relevant to each of the six key HRM activities discussed
in the chapter (i.e., planning, staffing, training, performance appraisal, reward systems, and la-
bor relations)?
A job analysis consists of two parts. The first is the job description that identifies the essential tasks,
duties, and responsibilities of the position, and the second is the job specification that describes the
4. What are the various methods for recruiting employees? Why are some better than others? In
what sense are they better?
Recruitment is the development of a pool of applicants for a job. It can be divided into two categories:
internal and external recruiting.
DISCUSSION QUESTIONS
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There are two disadvantages:
External recruiting tends to be far more expensive (since it usually involves advertising, commissions
to executive search firms, etc.). However, it has the advantage that it brings in “new blood” and can
5. What is a test? Give some examples of tests used by employers.
A test is a critical evaluation of the candidate and normally falls into one of four classes.
➢ Performance tests – designed to measure the applicant's skills related to a specific job.
6. What purpose does performance appraisal serve? Why are there so many different methods of
appraisal?
Performance appraisal is an assessment of the employee's job performance and has three primary uses
in that it provides.
➢ Information for making decisions with regard to increases in the individual's salary, suitability for
Chapter 10 - Human Resources Management
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In addition, an individual can be measured against a number of different scales.
7. What are some of the key ideas to remember when conducting a performance interview?
➢ Summarize the employee's performance; be specific.
➢ Describe the expectations and standards.
On the other hand, if the employee is doing a good or excellent job then you should:
➢ Summarize the employee's performance; be specific.
8. How would you define an effective reward system? What role do benefits serve in a reward sys-
tem?
An effective reward system has two main characteristics. First, it serves to attract, motivate, and re-
tain personnel. Second, it rewards behavior that is consistent with the strategic goals and objectives of
9. Why do workers join unions? What implications would this have for the organization that
wishes to remain non-union?
Chapter 10 - Human Resources Management
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Workers join unions because they see the relationship between management and its employees as be-
ing an adversarial one. They see an advantage in having an organization (representing a large number
10. Discuss the advantages and disadvantages of collective bargaining for the employer and the
employee.
The major advantage for both the employer and the employee is the ability to explore, analyze, and
better understand critical issues. Once a union contract has been negotiated, the document provides a
Chapter 10 - Human Resources Management
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EXERCISE 10.1 - THE "LEGAL" INTERVIEW
Objectives
1. To introduce you to the complexities of employment law.
2. To identify interview practices that might lead to discrimination in employment.
Suggested responses
1. Could you provide us with a photo for our
files?
L In certain situations photos are a legal
BFOQ where personal hygiene is rele-
vant.
7. What was your previous address?
I Irrelevant to job performance.
8. What is your social security number?
L For tax purposes.
9. Where was your place of birth?
I Irrelevant to job performance.
10. Where were your parents born?
I Irrelevant to job performance.
EXPERIENTIAL EXERCISES
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19. How old are you?
L BFOQ requirement/safety.
25. Do you own your own house?
I Irrelevant to job performance.
26. Do you have any charge accounts?
I Irrelevant to job performance.
27. Have you ever had you salary garnished?
I Irrelevant to job performance.
Teaching Tips
1. It might be advisable to present a review of the materials on discrimination in em-
ployment before assigning this exercise.
EXERCISE 10.2 - THE PAY RAISE
Objectives
1. To further your understanding of salary administration.
2. To examine the many facets of performance criteria, performance criteria weighting, performance
evaluations, and rewards.
Suggested responses
One option for April may be to develop a point system.
Chapter 10 - Human Resources Management
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➢ Ranking: Rank each person in each category from 1 to 7 (7 being the highest/best). (EEO Status
and Personal factors need not be ranked assuming equal employment opportunity laws as well as
Distribution of the $30,000 is as follows: In this case individuals receive the following:
1st place (most points) $8,000 1st Eric Cattalini 79 points
2nd place $7,000 2nd Chua Li 67 points
Teaching Tips
It is important that the student teams achieve an allocation formula that is based on quantifiable criteria
that are directly related to work performance.
Chapter 10 - Human Resources Management
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Invincibility Systems
Case Summary:
Invincibility Systems has 17,000 employees who design and make aerospace and defense equipment
including missiles, rockets, and propulsion systems. They are applying the same statistical fervor to
Chapter Topics Related to the Case:
• Discuss other factors that Invincibility Systems might take into account in its HR planning.
• Identify any legal concerns that data analysis at Invincibility might raise.
Case Discussion Questions:
1. Besides the factors identified, what other factors should Invincibility Systems take into account in
its HR planning?
Suggested Responses:
Students will likely mention factors such as selection criteria, appraisals, and rewards. You might
2. What legal concerns does the data analysis at Invincibility raise? How should the company ad-
dress those issues?
Suggested Responses:
CONCLUDING CASE
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3. Besides its use for HR planning and recruiting, how might Invincibility’s data analysis be applied
to improving the copmany’s training programs?
Suggested Responses:
Various responses can be expected. As an example, employees could be surveyed to determine which
Chapter 10 - Human Resources Management
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Example 10.1 – Human capital: Over the years, HR professionals have increasingly demanded
that they be allowed to work with other corporate executives in setting the strategic direction for
their company. Today, more and more HR executives are being invited to help set talent-related
Example 10.2 – External recruiting: When Hewlett Packard needed a new CEO to replace Car-
ly Fiorina, they looked outside the company and found Mark Hurd, the CEO of NCR. According
to the company, Hurd brought "proven execution skills, his ability to lead top-performing teams
and his track record in driving shareholder value, were important factors contributing to his selec-
tion."5 What is interesting is that HP passed over two internal candidates in their search -
Example 10.3 – Selection tests: The Edmonton Police Service is struggling to attract a few good
men and women. To join the force, Bill Gillespie, EPS Fitness Director, says you have first to
pass a cognitive abilities test designed by a psychologist to identify people best suited for polic-
ing. You also have to pass a written communications evaluation. From there you step into the
Example 10.4 – Types of training: IBM faces huge learning hurdles everyday in helping new
IBM employees, who are spread out across the globe, to understand IBM’s culture and decision-
ployees from all three countries to interact seamlessly through their “avatars.”7
Example 10.5 – 360-degree appraisal: Wright & Wright architectural partners, Clare and Sandy
Wright set out to adapt the 360 degree feedback method for their 15-strong practice. To prepare
4 Frauenheim, Ed. “Burden of power.” Workforce Management, June 25, 2007, 2007 SHRM Conference, pg. 1.
5 “HP board appoints Mark Hurd to replace Carly Fiorina” Eurotrade Computer and Communication Monthly. Retrieved from
EXAMPLES
Chapter 10 - Human Resources Management
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for the appraisal, staff members writer a review of their own performance, choose two colleagues
to do the same. These are then discussed at the review. Together they set five goals to be
achieved during the next six month and agree on training or other needs.8
Example 10.6 – Incentive pay systems: Many people bemoan the lack of pay for teachers, but
one school in Lafayette, California is doing something about it. After losing many of her best
help with a down payment on a house.9
Example 10.7 – Collective bargaining: In 2012 there were 19 major work stoppages (strikes or
Chapter 10 - Human Resources Management
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Please see the following additional materials in Connect.
• SAS
SAS was formed in the statistics department at North Carolina State University when its founders
were asked to develop a statistical analysis system for analyzing agricultural data. They now have
over 12,000 employees across the world and 400 offices in 50 countries. SAS is recognized as a
leader in human resource management and values a culture of creativity and innovation.
Why is SAS rated as a top company to work for by Forbes?
Twenty percent of SAS’s workforce has advanced degrees and training and development is inte-
How does SAS attract and keep top talent?
Privacy: Burned by the Firewall?
I. Introduction
The interaction in this scenario lends itself to a rich discussion of the role of Human Resources
II. Learning Objectives
1. To assess students’ understanding of issues with company property use and the appropriate disci-
CHAPTER VIDEO
SUPPLEMENTAL FEATURES
MANAGER’S HOT SEAT (MHS)
Chapter 10 - Human Resources Management
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III. Scenario Description:
Overview: An employee, Willy Kushing, has been put on administrative leave by the HR de-
partment for misuse of company property [internet service and telephone]. His Manager is just
returning from vacation and had no prior notice that Willy would be put on leave. The Manager
goes to meet with HR to find out what has happened.
Profile:
• Lynn Couchara is the Director of Distribution for Bank Street Films, a film distribution
References: The references included in the DVD are:
• EPolicy Do’s and Don’ts (PPT 4-3 to 4-6)
• The Electronic Communications Privacy Act of 1986 (PPT 4-8)
• 2003 E-Mail Rules, Policies and Practices Survey (PPT 4-10)
Back History: Willy Kushing has been working at Bank Street for just over two years [recruited
While Couchara was on her annual two-week vacation, Kushing was called for an immediate
meeting with the head of HR, Janet Pierce. Pierce informed Kushing that he was being put on
Kushing had explained to HR that he’d been making more personal calls from work to his mother
in Iowa and siblings in Gloucester and Schenectady because his father has been seriously ill for
months, in and out of emergency rooms and hospitals. He assured them these calls had not inter-
Chapter 10 - Human Resources Management
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her. She also values Willy’s contributions very much and notes that he has had no performance
issues. Janet defends her actions based on the company’s policies and says that it was merely co-
Afterthoughts – Summary: Lynn does not think the meeting went well because the HR Director
did not understand her point of view. She notes frustration with the way the HR enforced the
company’s policies absent of management involvement. Specifically, she is upset that she was
Dossier: The specific artifacts included in the DVD are:
1. Excerpts from Kushings’ computer/telephone usage report
IV. Discussion Questions:
The References and related Discussion Questions may be found in PowerPoint slides 4-1 to 4-10.
Learning Objective #1: To assess students’ understanding of issues with company property use and the
appropriate disciplinary process when company policies are violated.
1. Lynn is shocked by the action taken by HR and does not feel the violation of company policy
warranted the punitive action that was taken. In the long-term, what actions does the company
need to take to prevent this situation from occurring in the future (see PPT 4-3 to 4-6)?
1. Lynn’s key concern should be:
A. HR Protocol
B. Workflow
2. The ePolicy Do’s and Don’ts suggest that some personal email and internet use may be tolerated
by U.S. companies. What are the pro’s and con’s of this approach?
Chapter 10 - Human Resources Management
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Pro’s – don’t have to worry about invasion of privacy when monitoring electronic sys-
2. The concern over phone [and internet] use is:
A. Budgetary
3. How do the stipulations provided in the Electronic Communications Privacy Act of 1986 (see
PPT 4-8) affect your view of personal email and internet use at work?
If companies allow the use of the internet and email for personal reasons, then the com-
4. Companies create disciplinary processes to meet their business needs. What is your reaction to
the disciplinary process that occurred in this scenario?
Typically, organizations have a disciplinary process that is gradual and calls for progres-
3. What justifies Janet’s decision?
A. Existence of policy
Learning Objective #2: To analyze the role of HR in enforcing company policies.
Chapter 10 - Human Resources Management
1. Evaluate the actions taken by the HR director in this scenario. What was done well, poorly?
Janet apologized to Lynn for her actions, but beyond that the HR Director’s actions did
not take into consideration the big picture or the organization’s business needs. While
4. Why does Janet bring up Lynn’s records?
A. To warn Lynn
5. Lynn’s next step should be:
A. Meet VP of HR
B. Reinstate Willy herself
• The Job Diagnostic Survey
• Attitudes Towards Unions
• Unions, Labor Laws, and Management Prerogatives
SELF-ASSESSMENTS
