Sample-Solution Manual Fundamentals of Human Resource Management 6th 6E

Chapter 01 - Managing Human Resources
Instructor’s Manual for

Fundamentals of Human Resource Management, 6th edition
Chapter One: Managing Human Resources
Welcome to your guide to teaching Chapter One, Managing Human Resources!
This guide will provide you with a chapter summary, learning objectives, lecture outlines, solutions to in-chapter
case questions and end of chapter discussion questions and possible responses.
Instructor’s Manual Highlights:
Chapter One Roadmap

We hope you find each chapter of your Instructor Manual practical and useful, but also, exciting! You can
adapt the chapter text, the PowerPoint, and the video to work in an online class environment, a guided
independent study environment, or a face to face or on-ground environment.
 When presenting Chapter One, have the students first read the chapter and encourage them to absorb
the “big picture” of Human Resource Management.
 Use the PowerPoint for Chapter One to frame your lecture.
 Have students read and discuss the variety of pedagogy boxes, which provide real world vignettes that
illustrate the concepts in the chapter. There are discussion questions suggested responses for each of
these boxes.
 Have students read and review the end of chapter cases and their respective questions.
 Have students validate their knowledge of the chapter by working through the discussion questions at
the end of the chapter.
 Lastly, have students review, journal, or discuss the Key Vocabulary Terms at the end of the chapter.
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be
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ROADMAP: THE LECTURE
Chapter Summary
This introductory chapter provides your students with foundations of Human Resource Management. Human
Resource Management (HRM) means the policies, practices, and systems the influence employees’
behavior, attitudes and performance. This chapter discusses the practices of HRM which include the analysis
and design of work, recruiting, selection, training and development, performance management, compensation,
employee relations, and strategic support for organizational strategy. HRM does not exist in a vacuum; it
should be integrated into all strata of the organization. This chapter discusses a variety of internal and external
considerations of HRM, including the responsibilities of an HRM Department, the skills of HRM professionals,
and the ethics of HRM.
Learning Objectives for Chapter One
After reading and studying Chapter One, students will be able to:
1. Define human resource management and explain how HRM contributes to organization’s performance.
2. Identify the responsibilities of human resource departments.
3. Summarize the types of skills needed for human resource management.
4. Explain the role of supervisors in human resource management
5. Discuss ethical issues in human resource management
6. Describe typical careers in human resource management.
Lecture Outline
I. Introduction
Do human resource professionals find their work satisfying? This opening vignette shares two examples of HR
professionals in different roles, yet they find their work challenging and rewarding. The vignette clearly
identifies ways in which HR professionals add value to organizations.
Discussion Questions and Suggested Responses
1. What stands out as key responsibilites that that Koustrup and Simmons do on a regular basis which
gives them satisfaction in their positions?
They both report to top executives in the organizations which indicates the value placed on their
responsibilites, create and implement programs tied to the mission of the organizaiton, and develop
programs to find and keep the best employees.
A. Human Resource Management (HRM) means the policies, practices, and systems that influence
employees’ behavior, attitudes, and performance. Refer to Figure 1.1 in the chapter to highlight the practices
of HRM.
B. Human Resources and Company Performance

Managers and economists have traditionally seen HRM as an expense, rather than a source of value.
Economic value is usually associated with capital such as cash, equipment, technology, and facilities.
Human Resource Management, however, can be valuable! Decisions about whom to hire, what to pay, what
training to offer, and how to evaluate employee performance directly affects employees motivation and ability
to provide goods and services that customers value.
Refer to Figure 1.2 in the chapter to highlight the Types of Human Capital, and their relation to organizational
performance.
Human resources are valuable. Human resources are rare. Human resources cannot be imitated. Human
resources have no good substitutes.
C. Responsibilities of Human Resource Departments
The human resource function can be thought of as three product lines within the company.
1. Administrative services and transactions
2. Business partner services
3. Strategic partner
As indicated in Figure 1.1, Human Resource Management Practices, and reiterated in Table 1.1,
Responsibilities of HR Departments, there are several important HRM responsibilities including:
1. Analysis and design of work
2. Recruitment and Selection
3. Training and development
4. Performance Management
5. Compensation and Benefits
6. Employee Relations
7. Personnel policies
8. Employee data and information systems
9. Compliance with laws
10. Support for strategy
A. Analyzing and Designing Jobs
1. Job analysis is the process of getting detailed information about jobs.
2. Job design is the process of defining the way work will be performed and the tasks that a given
job requires.
3. In general, jobs can vary from having a narrow range of simple tasks to a broad array of
complex tasks requiring multiple skills.
B. Recruiting and Hiring Employees
1. Based on job analysis and design, an organization can determine the kinds of employees it
needs.
2. Recruitment is the process through which an organization seeks applicants for potential
employment. Selection refers to the process by which an organization attempts to identify
applicants with the necessary knowledge, skills, abilities, and other characteristics that will help
the organization achieve its goals.
3. Approaches to recruitment and selection involve a variety of alternatives such as:
a. Recruit from external sources such as Internet job postings, newspaper want ads, and
college recruiting events
b. Heavily relying on promotions from within
c. Referrals from current employees
d. Availability of people with the necessary skills
4. The selection process may focus on specific skills such as experience with a particular
programming language or type of equipment or it may focus on general abilities such as
working well with a team or find creative solutions.
C. Training and Developing Employees

1. Although organizations base hiring decisions on candidates’ existing qualifications, most
organizations provide ways for their employees to broaden or deepen their knowledge, skills,
and abilities.
2. Training is a planned effort to enable employees to learn job-related knowledge, skills, and
behavior.
3. Development involves acquiring knowledge, skills, and behavior that improve employees’ ability
to meet the challenges of a variety of new or existing jobs.
4. Table 1.2 lists the top qualities that employers say they are looking for in job candidates. Based
on the National Association of Colleges and Employers, “Job Outlooks: The Candidate Skills/
Qualities Employers Want,” available on http://www.naceweb.org, those qualities are the
following:
1. Teamwork skills
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2. Decision making, problem solving
3. Planning, prioritizing tasks
4. Verbal communication skills
5. Gathering/processing information
D. Managing Performance
1. Managing human resources includes keeping track of how well employees are
performing relative to objectives such as job descriptions and goals for a particular position.
The process of ensuring employees’ activities and outputs match the organization’s goals is
called performance management.
2. The activities of performance management include specifying the tasks and outcomes of
a job that contribute to the organization’s success.
3. The HR department may be responsible for developing or obtaining questionnaires and

other devices for measuring performance.
E. Planning and Administering Pay and Benefits

1. The pay and benefits that employees earn play an important role in motivating them.
Decisions about pay and benefits also can support other aspects of an organization’s strategy.
2. Planning pay and benefits involves many decisions, often complex and based on
knowledge of a multitude of legal requirements.
3. Pay and benefits have the greatest impact when they are based on what employees
really want and need.
Best Practices
How Abbott Laboratories Creates a Healthy Business
Abbott Laboratories is a global company operating in more than 150 countries. They specialize in
medical devices and pharmaceuticals. The industry is fast paced and Abbott needs to stay nimble in
order to remain competitive. A key to their success is their talent management philosophy which
includes careful hiring, a commitment to training and an internal mentoring program. In this vignette a
finance employee’s career path is outlined as an example of how Abbott values career development
which includes paying for an MBA program.
Discussion Questions and Suggested Response
1. How could a company such as Abbott benefit from sending an employee to study finance or
another business subject?
Employees tend to be loyal to an employee who helps with career development by subsidizing
continued education. It is a win-win situation because the Abbott will receive an ROI as the
employee brings the new skills and abilities back to the workplace.
2. How do you think hiring and training could work hand-in-hand to help a company such as Abbott
meet its business objectives?
In order to meet the business objectives, Abbott needs to ensure they have the right people in the
right positions with the right skills. This can be done through a comprehensive recruitment,
selection, and training program. The key is to hire people who fit the organization and then give
additional training where needed to help the employee develop.
F. Maintaining Positive Employee Relations
1. Organizations often depend on HR professionals to help them identify and perform many
of the tasks related to maintaining positive relations with employees. This function often
includes providing for communications to employees.
2. The HR department also can expect to handle certain kinds of communications from
individual employees such as: questions about benefits and company policy, discrimination
issues, safety hazards, and dissatisfaction with a supervisor’s response. In unionized
organizations, the HR department also maintains communication with union representatives.
G. Establishing and Administering Personnel Policies
1. Organizations depend on their HR departments to help establish policies related to

hiring, discipline, promotions, benefits, and other activities of HRM.
2. All aspects of HRM require careful record keeping ranging from preparation of employee
handbooks to processing of job applicants, performance appraisals, benefits enrollment, and
government mandated reports.
3. The handling of employee records requires accuracy as well as sensitivity to employee

privacy. Organizations must have methods for ensuring accuracy and for balancing privacy
concerns with easy access for those who need information and are authorized to see it.
HR How To
Writing Effective HR Policies
Effective policies clarify expectations in the workplace. In order for policies to be effective they
need to be clearly communicated and relevant to the employees. There are six key principles
for writing policies.
1. Decide if a policy is needed.
2. Determine if any legal requirements impact the policy.
3. Consult with experts to be sure situation is clear.
4. Be specific about the purpose of the policy, who it impacts, and consequences for breaking
the policy.
5. Give examples of where the policy might come into play.
6. Give contact information where employees can get questions answered about the policy.
1. Why do you think it is important to tell employee the purpose of a policy?
Adults tend to have a need to understand a purpose in order to follow a policy. There will be
more buy-in from the employees if they understand the purpose of the policy and how it will
impact the work environment.
2. Suppose some employees are coming to work dressed in a way that distracts others. How
could writing a dress code policy help in this situation? If you were a manager, would you
rather handle the situation by referring to a policy or discussing a specific clothing choice?
Why?
Having a written dress code policy gives the manager a tool to use when talking with the
employee. It is less awkward to talk about someone’s clothing when you can refer to a
policy. It makes it less personal to say it is a company-wide policy instead of personal
preference.
H. Ensuring Compliance with Labor Laws
1. The government has many laws and regulations concerning the treatment of employees.
These laws govern such matters as equal employment opportunity, employee safety and
health, pay and benefits, privacy, and job security.
2. Requirements include filing reports and displaying posters as well as avoiding unlawful
behavior.
3. Ensuring compliance with laws requires the HR personnel keep watch over a rapidly changing
legal landscape. Such areas undergoing change include: use of electronic employee
databases, individuals with disabilities, discrimination based upon genetic makeup, fair
employment practices, and job security.
I. Supporting the Organization’s Strategy

1. As more organizations have come to appreciate the significance of highly skilled human
resources, many HR departments have taken a more active role in supporting the
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organization’s strategy. An important element of this responsibility is human resource
planning. This means identifying the numbers and types of employees the organization will
require in order to meet its objectives.
2. A key to supporting the organizations strategy is an effective talent management program

which is a systematic, planned effort to attract, retain, develop, and motivate highly skilled
employees.
3. Evidence-based HR is collecting and using data to show that HR practices have a positive
influence on the company’s bottom line or key stakeholders.
4. Often an organization’s strategy requires some type of change. Common reactions to change
include fear, anger, and confusion. The organization may turn to its HR department for help in
managing the change process. Skilled HR professionals can apply knowledge of human
behavior along with performance management tools to help the organization manage change
constructively.
5. Sustainability is an organization’s ability to profit without depleting its resources, including

employees, natural resources, and the support of the surrounding community.
HR Oops!
“Talent Management Sounds great, but…”
A recent survey by Risk Management found that only 12 percent of company have established and
implemented a strategy for talent management despite more than half stating talent management is a
high priority. Even worse, almost 38% of companies stated that talent management wasn’t a priority.
These stats raise many questions about the value organizations place on talent management.
1. Why do you suppose half the managers say talent management is important at their
company but only 12 percent say their company is doing it right? In other words, what is
missing when people fail to do what they say is important?
Unfortunately, many managers will state something is important but not spend the time and resources
needed in order to follow through on the implementation of plan that would validate the importance. In
this instance, it would be obvious to agree that talent management is important, but too many manager
say they are used to doing things the “old” way or simply don’t have the time to implement a new
strategy.
2. How might a company that uses talent management gain an advantage over a competitor
that treats HR tasks as unrelated activities?
A talent management program gives the competitive advantage because it means the employer is
hiring, retaining, and developing top talent. A company will gain a competitive advantage when they
tie all HR activities to the mission, vision, and values of an organization because the employees will be
engaged and energized to work toward common goals.
III. Skills of HRM Professionals
Figure 1.3, Competencies and Example Behaviors for HR Professionals, is based on the new SHRM
defined set of behaviors and skills associated with HR success. SHRM has identified 9 categories of
competencies.
1. Relationship management
2. Ethical practice
3. HR Expertise
4. Business acumen
5. Critical evaluation
6. Diversity and inclusion
7. Leadership and navigation
8. Consultation
9. Communication
HR professionals also need to bring together a pool of skills that are identified below.
A. Credible Activists
1. Delivers results with integrity.
2. Shares information.
3. Builds trusting relationships.
4. Influences others, providing candid observations, taking appropriate risks.
B. Cultural and Change Steward

1. Facilitates change.
2. Develops and values the culture.
3. Helps employees navigate the culture (find meaning in their work, manage work/life balance,
encourage innovation).
C. Talent Manager/Organizational Designer

1. Develops talent.
2. Designs reward systems.
3. Shapes the organization.
D. Strategic Architect
1. Recognizes business trends and their impact on the business.
2. Applies evidence-based HR.
3. Develops people strategies that contribute to the business strategy.
E. Business Allies
1. Understands how the business makes money.

2.Understands the language of business.
F. Operational Executors
1. Implements workplace policies.
2. Advances HR technology.
3. Administers day-to-day work of managing people.
Did You Know?

CEO and CFO Relationship with HRM
Many CEO’s recognize the value HR brings to the organization however few CFO’s agree. The biggest complaint
from CFO’s is the lack of quantitative analysis from HR professionals.
Discussion Question and Suggested Response
1. What skills or competencies could help HR manager build stronger relationship with chief financial
officers?
Business acumen is a key skill that all HR professionals need in order to be part of the executive team that adds
value to the strategic business process. HR professionals need to know how to read financial statements and
how to interpret data when evaluating HR programs. CFO’s will have more respect for HR professionals when
they can talk the language of finance.
IV. HR Responsibilities of Supervisors
1. Although many organizations have HR departments, HR activities are by no means limited to the
specialists who staff those departments. Non-HR managers need to be familiar with the basics of HRM
and their role with regard to managing human resources.
2. Figure 1.4, Supervisor’s Involvement in HRM: Common Areas of Involvement, identifies some HR
responsibilities that supervisors are likely to be involved in. These areas of responsibilities include:
a. Help define jobs
b. Forecast HR needs
c. Interview (and select) candidates
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d. Appraise performance
e. Recommend pay increases and promotions
f. Communicate policies
g. Motivate with support from pay, benefits, and other rewards
V. Ethics in Human Resource Management
1. Ethics refers to the fundamental principles of right and wrong; ethical behavior is behavior that is
consistent with those principles.
2. Recent surveys indicate that the general public and managers do not have positive perceptions of the
ethical conduct of U.S. businesses. For example, in a Gallop poll on honesty and ethics in 21
professions, only 18 percent of Americans rated business executives as high or very high; three times
as many rated them low or very low.
3. From a global perspective, an international poll of Facebook members found that two-thirds believe
individuals do not apply values they hold in their personal lives to their professional activities.
4. Ethical lapses often relate to compensation and other HR policies (See the “HR Oops” box).
A. Employee Rights
1. Applied to HRM, ethical principles view employees as having some basic rights. A widely
adopted understanding of human rights, based on the work of philosopher Immanuel Kant,
assumes that in a moral universe, every person has certain basic rights. These basic rights
include:
a. Right of free consent
b. Right of privacy
c. Right of freedom of conscience
d. Right of freedom of speech
e. Right to due process
2. One way to think about ethics in business is that the morally correct action is the one that
minimizes encroachments on and avoids violations of these rights.
B. Standards for Ethical Behavior
1. Ethical, successful companies act according to four principles.
a. First, in relationships with customers, clients, and vendors, these companies emphasize
mutual benefits.
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b. Second, employees assume responsibility for the actions of the company
c. Third, such companies have a sense of purpose or vision that employees value and use in
their day-to-day work
d. Fourth, they emphasize fairness. That is, another person’s interests count as much as their
own.
2. For human resource practices to be considered ethical, they must satisfy the three basic
standards summarized in Figure 1.5, Standards for Identifying Ethical Practices. The three
basic standards include (1) HRM practices must result in the greatest good for the largest
number of people, (2) employment practices must respect basic human rights of privacy, due
process, consent, and free speech, and (3) managers must treat employees equitably and fairly.
These standards are most vexing when none of the alternatives in a situation meet all three of
them.
VI. Careers in Human Resource Management
1. There are many different types of jobs in the HRM profession. Figure 1.6, Median Salaries for HRM
Positions, identifies selected HRM positions and their salaries.
2. Some positions involve work in specialized areas of HRM such as recruiting, training, or labor and
industrial relations. HR generalists usually perform the full range of HRM activities including recruiting,
training, compensation, and employee relations.
3. The vast majority of HRM professionals have a college degree and many also have completed
postgraduate work. The typical field of study is business, especially HR or industrial relations.
However, some HRM professionals have degrees in the social sciences (economics or psychology),
the humanities, and law programs.
4. A well-rounded educational background will likely serve a person well in an HRM position. HR
professionals can also increase their career opportunities by taking advantage of training and
development programs such as Valero Energy Corporation, which encourages its HR managers to
earn certificates in general management through a local executive MBA program.
5. Some HRM professionals have a professional certification in HRM, but many more are members of
professional associations. The primary professional organization for HRM is the Society for Human
Resource Management (SHRM). It is the world’s largest human resource management association,
with more than 250,000 professional and student members throughout the world.
HRM Social
SHRM’s Social Medial Presence
SHRM has a variety of ways for HR professionals to connect via social media and the links are shared in
this section. Members of the Society for Human Resource Management (SHRM) can connect with the
organization’s resources and with one another online, thanks to several applications of social media.
SHRM has a Twitter account (http://twitter.com/shrm) so that members can sign up for the group’s Twitter
feed. SHRM has a blog (http://blog.shrm.org), which gives members a place to read the organization’s
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latest thoughts and get involved in the conversation by reading and posting comments. SHRM has
established its own members-only social network called SHRM Connect (http://community/shrm.org).
Visitors to SHRM conferences can text questions to presenters, and those who can’t make the trip can get
updates via Twitter.
1. Do you use Twitter or LinkedIn? Would you be interested in seeing career-related information
in social media such as these?
It is recommended that you encourage your students to make a LinkedIn account as a means to start
their professional online profile. A key to any social media site is to keep in up to date.
2. How might participating in on line discussion groups help you in your career?
Participating in on line discussion groups gives the student/HR professional exposure to other ideas
and increases their professional network.
VII. Organization of This Book
1. Table 1.3 lists the topics covered in this book These topics are:
a. The Human Resource Environment
b. Acquiring, Training, and Developing Workers
c. Assessing Performance and Improving Performance
d. Compensating Human Resources
e. Meeting Other HR Goals
2. The chapters of the book will offer various other features to help you connect the principles to real-
world situations. “Best Practices” boxes tell stories related to the chapter’s topic. “HR Oops!” boxes
identify situations gone wrong and invite you to find better alternatives. “HR How To” boxes provide
details about how to carry out a practice in each HR area. “Did You Know” boxes are snapshots of
interesting statistics. “HRM Social” boxes identify ways that human resource professionals are applying
social media to help their organization excel.
Thinking Ethically
How Should an Employer Weigh Conflicting Values?

A large religious organization struggled with the policy it had regarding “abstinence before marriage and
fidelity in marriage” as a requirement for employees. The problem came around same-sex marriage
laws and how that impacted the current values of the organization. The board of directors decided to
allow same-sex married employees however the outcry from the constituents was loud and clear. They
felt this change in policy violated the company’s long stance on religious values of marriage. The
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President then reverse the policy however there was a lot of publicity that surrounded both decisions.
There was nothing illegal with any of the decisions but there were some challenging ethical issues.
Questions and Suggested Responses:
1. In this situation, whose rights were affected? What basic rights were at stake?
The rights of the constituents and the rights of same-sex married couples were affected by the
policy. The rights at stake are the religious right of the organization. Since they are a religious
organization normally from a legal standpoint they can have policies that follow their beliefs.
The constituents who give to the non-profit organization expect that the organization will have
policies that follow their values.
2. How well do you think the organization applied standards of ethical behavior? Why?
They tried to be open to the changing cultural views on marriage however they did not follow
ethical principles when they changed the policy without getting input from their constituent.
ROADMAP: Key Terms
Human Resource Management (HRM)
Human Capital
Job Analysis
Job Design
Recruitment
Selection
Training
Development
Performance Management
Workforce Analytics
Human Resource Planning
Talent Management
Evidence-Based HR
Sustainability
Stakeholders
Ethics
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ROADMAP: Review and Discussion Questions
Review and Discussion Questions with Suggested Responses
1. How can human resource management contribute to a company’s success?
Human resource management consists of an organization’s “people practices” such as the policies,
practices, and systems that influence employees’ behavior, attitudes, and performance. HRM
influences who works for the organization and how those people work. These human resources, if well
managed, have the potential to be a source of sustainable competitive advantage, contributing to basic
objectives like quality, profits, and customer satisfaction.
2. Imagine that a small manufacturing company decides to invest in a materials resource planning (MRP)
system. This is a computerized information system that improves efficiency by automating such work
as planning needs for resources, ordering materials, and scheduling work on the shop floor. The
company hopes that with the new MRP system, it can grow by quickly and efficiently processing small
orders for a variety of products. Which of the human resource functions are likely to be affected by this
change? How can human resource management help the organization carry out this change
successfully?
The sort of change described in the question above would most likely affect, to some degree, all nine of
the functions of human resource management. The analysis and design of work would need to be
considered in a decidedly different manner than it was before the newly implemented automated
process, as the “job” itself would be changed under the new system. Recruitment and selection as well
as training and development would require adjustment in order to secure those individuals with the
necessary skills, knowledge, and abilities to perform at expected levels under the new system.
Performance management, which is the process of ensuring employees’ activities and outputs match
the organization’s goals, would need reevaluation due to the changes created by the new process.
Compensation would require adjustment as a result of the changes caused by the automation.
Employee relations and human resource planning to support the organizational strategy would require
adjustment to bring harmony and balance back into the workplace as individuals are noted to fear and
resist new changes.
Human resource management can help the organization carry out this change successfully by applying
its knowledge of human behavior along with performance management tools in such a way as to assist
the organization to constructively mange the change process.
3. What skills are important for success in human resource management? Which of these skills are
already strengths of yours? Which would you like to develop?
Human resource management requires substantial human relations skills, including skill in
communicating, negotiating, and team development. Human resource professionals also need
decision-making skills based on knowledge of the HR field as well as the organization’s line of
business. Leadership skills are necessary, especially for managing conflict and change. Technical
skills of human resource professionals include knowledge of current techniques, applicable laws, and
computer systems.
The student responses will vary as to which skills are their current strengths and which skills they would
like to develop.
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4. Traditionally, human resource management practices were developed and administered by the
company’s human resource department. Line managers are now playing a major role in developing
and implementing HRM practices. Why do you think non-HR managers are becoming more involved?
As the relationship between various HRM practices and the productivity and performance of employees
has been recognized, line managers have strong reasons to become involved in the development and
implementation of HRM practices. The information from line managers is critical to determining needed
and appropriate policies and practices that will reinforce the strategic and operational needs of the
organization. For instance, if quality needs improvement, then it is critical that incentive/compensation
practices be developed to reward quality improvement, rather than volume production.
5. If you were to start a business, what aspects of human resource management would you want to
entrust to specialists? Why?
Human resource specialists most often possess certain areas of expertise, such as recruiting, training,
and labor relations. Human resource generalists usually perform the full range of HRM activities, such
as recruiting, training, compensation, and employee relations. The cost associated with the difference
between the hiring of a specialist or a generalist would need to be considered, as this is a newly
established company. A full picture of organizational size, objectives, financial standing, as well as
organizational need would have to be examined prior to selecting a specialist or a generalist to guide
the HR process.
The responses provided by the students will vary depending upon their personal viewpoints. However,
each response provided should discuss rationales for why such a decision was made.
6. Why do all managers and supervisors need knowledge and skills related to human resource
management?
Although many organizations have human resource departments, non-HR managers must be familiar
with the basics of HRM and their own role with regard to managing human resources. Supervisors
typically have responsibilities related to all HR functions. Supervisors help analyze work, interview job
candidates, participate in selection decisions, provide training, conduct performance appraisals, and
recommend pay increases. On a day-by-day basis, supervisors represent the company to their
employees, so they also play an important role in employee relations.
7. Federal law requires that employers not discriminate on the basis of a person’s race, sex, national
origin, or age over 40. Is this also an ethical requirement? A competitive requirement? Explain.
Ethics refers to the fundamental principles of right and wrong. Ethical behavior is that behavior which
supports those principles. It is imperative for organizations to adhere to current laws and regulations.
This is indicative of ethical organizational behavior. The manner in which an organization conducts its
business can affect the way in which others, such as customers, government agencies, and vendors,
perceive that organization. While operating ethically is not a competitive requirement, it must be
remembered that individuals most often prefer to deal with organizations that they feel they can trust.
So in essence, operating in an ethical/unethical manner may greatly impact an organization’s

competitiveness.
8. When a restaurant employee slipped on spilled soup and fell, requiring the evening off to recover, the
owner realized that workplace safety was an issue to which she had not devoted much time. A friend
warned the owner that if she started creating a lot of safety rules and procedures, she would lose her
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focus on customers and might jeopardize the future of the restaurant. The safety problem is beginning
to feel like an ethical dilemma. Suggest some ways the restaurant owner might address this dilemma.
What aspects of human resource management are involved?
Safety for workers as well as for customers is vital for every organization regardless of its size.
Accidents can prove to be exorbitant in cost for businesses. The restaurant owner may address this
dilemma by gaining knowledge on the value of safety training. By viewing implementation of safety
training as an enhancement, the owner may defeat any fears that may be present.
In actuality, all nine areas of human resource management functions could potentially be involved in or
affected by the creation of a safety-training program. Of course, the training and development function
would sustain an immediate and more recognized affect.
9. Does a career in human resource management, based on this chapter’s description, appeal to you?
Why or why not?
The answers provided by the individual students will vary contingent upon their personal career goals
and understanding of the chapter material.
ROADMAP: END OF CHAPTER CASE
Taking Responsibility
How “Good Things Happen to” Costco
Costco is a large chain of warehouse stores who has done a great job of getting through the Great
Recession. They did by demonstrating to their employees that they are valued and even gave raises
during tough financial times. They are reinvesting in their employees and have decided that satisfied
employees will be long term employees. Costco has the lowest turnover rate in the industry (less than
5 percent on first year employees.) The employees give back to Costco with their loyalty and hard
work in response the above industry standards for wage and benefits.
Questions with Possible Responses
1. In what ways does Costco meet the criteria for a “sustainable” organization?
The company clearly cares about a workforce that is engage and is retained. This adds to their
sustainability because they do not have to spend as much on recruitment costs. They have employees
who feel valued and that translates into productivity and customer satisfaction.
2. What would you describe as Costco’s basic strategy as a retailer? How do human resource practices
support that strategy?
Their basic strategy is to be a low cost provider. They keep their HR costs low by having less turnover
and lower residual training costs, which is tied to the low turnover. They also have higher productivity
so they are getting a great ROI for their higher hourly wage and benefits.
17
Managing Talent
Ingersoll Rand’s Problem-Solving Approach to HRM
Ingersoll Rand is a complicated organization which specializes in transportation and building products.
Craig Mundy was hired as an HR executive to bring a fresh business perspective to the organization.
He started by identifying strategic priorities for his business unit which wasn’t readily accepted by the
employees. He set objectives and asked questions that required his team to do research. From the
research he developed a Talent Solutions framework that the team could use to address various talent
management issues. The new framework improved Ingersoll Rand’s performance and now the HR
team is seen as a strategic partner.
Questions with Possible Responses
1. What important HRM skills has Craig Mundy applied to his role at Ingersoll Rand?
Mundy brought his critical evaluation skills, business acumen, and leadership and navigation abilities.
2. How do talent management evidence-based HR support Mundy’s efforts to offer solutions?
Mundy clearly understood that talent management, which includes reducing turnover, was a key to
solving the situation with the sales reps who were leaving after 2 years. However, because of
evidence-based HR he also knew the team needed to do some research to determine the problem
before coming up with solutions. With evidence-based HR the solutions are tied to the data so that the
chance of success is so much higher than if simply implementing a “best practice” solution that might
not be right for the organization.
HR in Small Business
Managing HR at a Services Firm
This case describes Susan Durbin’s career in human resource management, and her decision to join
the Danone Simpson Insurance Services in Woodland Hills, California. In her role as HR director at
Danone Simpson, Durbin sees herself as contributing to the fast-growing company’s success because
she has created an environment where employees are happy at work. For example, in order to have
room in her budget for monthly luncheons, raffle prizes, and break rooms—things that contribute to
employee satisfaction—Durbin looks for the best deals in benefits programs. Simpson sees Durbin as
a balance between nurturing and practicality. The company’s website promotes the agency as an
“honest and hardworking team” and “Please be advised that our organization cares about its
employees.”
Discussion Questions and Suggested Responses
1. Based on the description in this case, how well would you say Susan Durbin appreciates the scope of
human resource management? What, if any, additional skills of an HR professional would you
encourage her to develop?
Durbin’s role, as described in this case, is primarily an employee relations function. The case does
mention that Durbin shops for and selects benefits plans, but because that was mentioned briefly, it is
18
not clear to the extent to which she is involved in compensation and benefits, overall. The case does
not describe Durbin’s role in training and development, although that perhaps could be assumed.
Nevertheless, the training and development of employees is a critical HRM skill and one that Durbin
could develop, particularly as the company continues to grow. Durbin could develop her skills in job
analysis and design, for similar reasons. As the company grows, it is likely that the work needed to
carry out the company’s objectives could become more varied and complex. Therefore, it will be
important for Durbin to understand how to analyze and design those jobs. Skill and understanding in
employment law is yet another suggestion for Durbin to develop.
2. Look up descriptions of HR jobs by searching under “human resources” in the latest edition of the
Bureau of Labor Statistics’ Occupational Outlook Handbook (available online at www.bls.gov/OCO/).
What position in the handbook best matches Dubin’s job, as described in this case?
Dubin’s position is that of Human Resource Manager.
3. How would you expect Dubin’s job in a small services company to be different from a similar position in
a large manufacturing company?
The various human resource management responsibilities might not change, but the focus and the type
of work might change. For example, in a services company, Dubin likely trains on how to sell and
service products and services, but in a manufacturing environment, the training might include a greater
emphasis on technical skills. Similarly, Dubin’s focus on creating and implementing a compensation
and benefits system might have the same basic components, but clearly the jobs in the two different
types of environments are materially different. In a large manufacturing company, also, Dubin might
have a staff of human resource professionals who work with her to meet the needs of the organization.
HRM DVD Vol 3 Suggested Video with Discussion Questions and Possible Responses
Video Part 1: Zappos.com (6:55)
Video Summary
Zappos.com is an online shoe and apparel shop that was formed in 1999. Its CEO, Tony Hsieh, is profiled
along with Zappos unconventional approach to company culture, employee hiring, rewards, and unorthodox
benefits which include nap rooms and concierge services.
Zappos is a start-up company that has outpaced even its own expectations over the last 13 years. It has been
ranked by Forbes magazine as one of the Top 100 Best Places to Work. Zappos believes in a culture of
happiness for its employees that is driven by a set of ten core values. These values are exhibited by every
employee, every day in all the decisions they make. Their business model is simple; happy employees
translate into satisfied customers.
Zappos hiring process includes a full day of interviews and company tour which is followed by an intense four-
week training program. After training, if you decide that Zappos is not right for you, the company will even pay
you $3,000 to leave the company. Zappos was most recently acquired by Amazon.com for over $1.3 billion.
Discussion Questions
1. What is the value of having an extensive selection process when hiring new employees?
19
Having an extensive hiring process means that you significantly increase the probability of having the right
people with the right skills, in the right positions, at the right time. The time a company spends on the
selection process on the front end pays significant dividends on the back end. Making an erroneous decision in
hiring causes long term complications on many levels, including higher attrition rates, lower employee morale,
decreased customer satisfaction and a lower level of discretionary effort exhibited by employees when they
come to work.
2. What are the benefits of having an unorthodox set employee services such as Google’s nap rooms and
concierge services?
Employees are constantly determining how much the company actually values them. Having additional
benefits and employee services such as massages, nap rooms, free gyms, free food, and laundry services on-
site sends a strong message to employees that the company is committed to their welfare. It shows the
progressive nature of the company. The benefits to the company include that it keeps employees focused on
their work without having outside distractions. It also offers additional opportunities for employees to mingle
and possibly share ideas. Employees repay the company with an increased sense of loyalty and potential
longevity to the company.
20

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Chapter 01 - Managing Human Resources

Instructor’s Manual for

Welcome to your guide to teaching Chapter One, Managing Human Resources!

Instructor’s Manual Highlights:

Chapter One Roadmap

 Use the PowerPoint for Chapter One to frame your lecture.

Learning Objectives for Chapter One

Discussion Questions and Suggested Responses

B. Human Resources and Company Performance

C. Responsibilities of Human Resource Departments

1. Administrative services and transactions

2. Business partner services

1. Analysis and design of work

2. Recruitment and Selection

3. Training and development

5. Compensation and Benefits

8. Employee data and information systems

9. Compliance with laws

10. Support for strategy

A. Analyzing and Designing Jobs

B. Recruiting and Hiring Employees

3. Approaches to recruitment and selection involve a variety of alternatives such as:

c. Referrals from current employees

d. Availability of people with the necessary skills

C. Training and Developing Employees

2. Decision making, problem solving

3. Planning, prioritizing tasks

4. Verbal communication skills

3. The HR department may be responsible for developing or obtaining questionnaires and

E. Planning and Administering Pay and Benefits

How Abbott Laboratories Creates a Healthy Business

Discussion Questions and Suggested Response

F. Maintaining Positive Employee Relations

G. Establishing and Administering Personnel Policies

1. Organizations depend on their HR departments to help establish policies related to

3. The handling of employee records requires accuracy as well as sensitivity to employee

Writing Effective HR Policies

2. Determine if any legal requirements impact the policy.

3. Consult with experts to be sure situation is clear.

5. Give examples of where the policy might come into play.

Discussion Questions and Suggested Response

1. Why do you think it is important to tell employee the purpose of a policy?

H. Ensuring Compliance with Labor Laws

I. Supporting the Organization’s Strategy

2. A key to supporting the organizations strategy is an effective talent management program

5. Sustainability is an organization’s ability to profit without depleting its resources, including

“Talent Management Sounds great, but…”

Discussion Questions and Suggested Response

III. Skills of HRM Professionals

6. Diversity and inclusion

7. Leadership and navigation

1. Delivers results with integrity.

3. Builds trusting relationships.

4. Influences others, providing candid observations, taking appropriate risks.

B. Cultural and Change Steward

2. Develops and values the culture.

C. Talent Manager/Organizational Designer

2. Designs reward systems.

3. Shapes the organization.

2. Applies evidence-based HR.

3. Develops people strategies that contribute to the business strategy.

1. Understands how the business makes money.

1. Implements workplace policies.