12–32
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
2. Do you think that managers should feel free to socialize and become good friends with their
subordinates outside of the workplace if they desire? Why or why not?
Some managers may feel that they are capable of forming close social relationships with subordinates
without allowing such friendships to impact their fairness or objectivity toward all. However,
psychologists tell us otherwise. Cognitive biases often operate at a subconscious level, causing otherwise
capable managers to sometimes make very bad decisions. Also, as a leader setting an example for
subordinates, managers should avoid creating any situation that may give the appearance of unfairness or
impropriety.
AACSB: Ethics
Building a Human Resources Management System
1. Describe the steps you will take to recruit and select (a) the engineers, (b) the clerical/secretarial
workers, and (c) the MBAs.
The engineers will be externally recruited through advertisements in trade magazines and newspapers,
open houses for students at colleges that have engineering departments, and career fairs in large cities and
communities. Postings will also appear on the consulting firm’s website, which will contain information
2. Describe the training and development that the engineers, the clerical/secretarial workers, and the
MBAs will receive.
SMALL GROUP BREAKOUT EXERCISE
Chapter 12 – Building and Managing Human Resources
12–33
Training focuses on teaching employees how to perform their jobs and helping them acquire the
knowledge and skills they need to be effective performers. Development focuses on building employees’
3. Describe how you will appraise the performance of each group of employees and how you will provide
feedback.
Engineers will have their performance appraised through both objective (based on facts) and subjective
(based on perceptions) assessment. Behavior appraisals will be used to assess how the engineers perform
their jobs—how they handle themselves in meetings, how courteous they are to clients, and the quality of
4. Describe the pay level and pay structure of your consulting firm.
Chapter 12 – Building and Managing Human Resources
12–34
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
Pay level refers to how the firm’s pay incentives will compare, in general, to those of other organizations
in the same industry, employing similar kinds of workers. It is important to start with a competitive salary
range for engineers and MBAs in order to recruit and retain high performers that will help to establish the
firm. Since the firm is just starting out, the partners may decide that pay incentives should start at a
moderate level, until the firm is secure and profitable. Employees may be recruited and enticed with
future gain sharing and chances to buy into the business after a set period of time. Secretarial and clerical
workers are more easily recruited, therefore, their pay should be comparable to that of clerical workers at
other firms, but it may not be as important to offer higher, more competitive wages to these employees.
Once the firm is on solid financial ground, it will be able to afford raises for employees.
Pay structure refers to the way that jobs are clustered into categories according to their relative
importance to the organization and its goals, levels of skills required, and other characteristics. The
partners will receive the highest pay because they have risked their capital in starting the firm. Also, they
will likely do the majority of the work in the beginning months and years of the firm’s establishment.
MBAs will receive the next highest pay level, due to the extensive knowledge and skill that they bring to
the organization. Engineers will receive the next level of pay, just below that of MBAs, since engineers
are also highly skilled professionals. Secretarial and clerical workers will receive the lowest level of pay
in the organization. They are more easily trained, and the availability of workers is greater for these
positions than for those of the engineers and MBAs.
AACSB: Analytic
Apparently, you tried to develop this system in a vacuum. You need to solicit input from the other
managers regarding the behaviors to be rated by the 20-item scale. Now that you have some feedback,
you might want to do the following:
AACSB: Analytic
BE THE MANAGER
Chapter 12 – Building and Managing Human Resources
12–35
Case Synopsis: You’re Awesome! Firms Scrap Negative Feedback
Fearing they’ll crush employees’ confidence and erode performance, employers are asking
managers to ease up on harsh feedback. Managers are expected to extol staffers’ strengths during
reviews and check-ins, explaining how the person can use his or her talents to tackle aspects of
the job that come less naturally. Some veteran managers have dismissed the new approach as a
feel-good initiative.
Questions
AACSB: Analytic
• Office Romance: Groping for Answers
• Diversity in Hiring: Candidate Conundrum
• Virtual Workplace: Out of Office Reply
THE WALL STREET JOURNAL CASE IN THE NEWS
SUPPLEMENTAL FEATURES
MANAGER’S HOT SEAT (MHS)
Chapter 12 – Building and Managing Human Resources
12–36
These Instructor’s PowerPoint slides can be used to supplement the lecture material.
HRM
INSTRUCTOR’S POWERPOINT SLIDES
Chapter 12 – Building and Managing Human Resources
12–37
INSTRUCTOR’S
POWERPOINT SLIDE 9
Table 12.1 – Major EEO
Laws
Chapter 12 – Building and Managing Human Resources
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INSTRUCTOR’S
POWERPOINT SLIDE 19
Figure 12.3 – Selection
Tools
INSTRUCTOR’S
POWERPOINT SLIDE 20
The Selection Process
INSTRUCTOR’S
POWERPOINT SLIDE 21
Reliability and Validity
INSTRUCTOR’S
POWERPOINT SLIDE 22
Question?
INSTRUCTOR’S
POWERPOINT SLIDE 23
Training and Development
INSTRUCTOR’S
POWERPOINT SLIDE 24
Training and Development
Chapter 12 – Building and Managing Human Resources
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INSTRUCTOR’S
POWERPOINT SLIDE 28
Performance Appraisal
and Feedback
INSTRUCTOR’S
POWERPOINT SLIDE 29
Question?
INSTRUCTOR’S
POWERPOINT SLIDE 30
Figure 12.5 – Who
Appraises Performance?
INSTRUCTOR’S
POWERPOINT SLIDE 31
Who Appraises
Performance?
INSTRUCTOR’S
POWERPOINT SLIDE 32
Effective Feedback Tips
INSTRUCTOR’S
POWERPOINT SLIDE 33
Effective Feedback Tips
Chapter 12 – Building and Managing Human Resources
INSTRUCTOR’S
POWERPOINT SLIDE 37
Pay Structure
INSTRUCTOR’S
POWERPOINT SLIDE 38
Benefits
INSTRUCTOR’S
POWERPOINT SLIDE 39
Question?
INSTRUCTOR’S
POWERPOINT
SLIDE 40
Labor Relations
INSTRUCTOR’S
POWERPOINT
SLIDE 41
Unions
INSTRUCTOR’S
POWERPOINT
SLIDE 42
Collective Bargaining
INSTRUCTOR’S
POWERPOINT
SLIDE 43
Be the Manager
INSTRUCTOR’S
POWERPOINT
SLIDE 44
Topics for Discussion
INSTRUCTOR’S
POWERPOINT
SLIDE 45
Topics for Discussion
Chapter 12 – Building and Managing Human Resources
12–41
INSTRUCTOR’S
POWERPOINT
SLIDE 46
Topics for Discussion
INSTRUCTOR’S
POWERPOINT
SLIDE 47
Topics for Discussion
INSTRUCTOR’S
POWERPOINT
SLIDE 48
Topics for Discussion