CH-1 Introduction to Human Resource Management – Human Resource Management : Book Guide

PART ONE INTRODUCTION CHAPTER T One Introduction to Human Resource Management 1 Lecture Outline Strategic Overview What is Human Resource Management and Why is it Important? What is HR Management? Why is HR Management Important to all Managers? Line and Staff Aspects of HRM Line Managers’ Human Resource Duties Human Resource Manager’s Duties New Approaches to Organizing HR Cooperative Line & Staff HRM: An Example The Trends Shaping HR Management Globalization and Competition Trends Indebtedness (“Leverage”) and Deregulation Technological Trends Trends in the Nature of Work Workforce and Demographic Trends Economic Challenges and Trends The New Human Resource Managers Human Resource Management Yesterday & Today They Focus More on Strategic, Big Picture Issues They Use New Ways to Provide Transactional Services They Take an Integrated, Talent Management Approach They Manage Ethics They Management Employee Engagement They Measure HR Performance and Results They Use Evidence-Based Human Resource Management They Add Value They Have New Competencies HR Certification The Plan of This Book The Basic Themes and Features Chapter Contents Overview Part 1: Introduction Part 2: Recruitment, Placement, and Talent Management Part 3: Training and Development Part 4: Compensation Part 5: Employee Relations The Topics are Interrelated In Brief: This chapter explains what Human Resource Management is, how it relates to the management process, and how it is changing in response to trends in the workplace. It illustrates how all managers can use HR concepts and techniques, HR’s role in strategic planning and improved organizational performance, the competencies required of HR managers, and the plan of the book. Interesting Issues: Human Resources play a key role in helping companies meet the challenges of global competition. Strategic objectives to lower costs, improve productivity, and increase organizational effectiveness are changing the way every part of the organization, including the HR department, does business. LEARNING OUTCOMES 1. Explain what human resource management is and how it relates to the management process. 2. Show with examples why human resource management is important to all managers. 3. Illustrate the human resources responsibilities of line and staff (HR) managers. 4. Briefly discuss and illustrate each of the important trends influencing human resource management. 5. List and briefly describe important traits of today’s human resource managers. 6. Define and give an example of evidence-based human resource management. 7. Outline the plan of this book. ANNOTATED OUTLINE I. What is Human Resource Management and Why it is Important – 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 wages and salaries; providing incentives and benefits; appraising performance; communicating; training and developing managers; building employee commitment; being knowledgeable about equal opportunity, affirmative action, and employee health and safety; and handling grievances and labor relations. What Is Human Resource Management? The management process includes several functions: planning, organizing, staffing, leading and controlling. Human resource management is the process of acquiring, training, appraising, and compensating employees, and attending to their labor relations, health and safety, and fairness concerns. Why Is HR Management Important to All Managers? Managers don’t want to make personnel mistakes, such as hiring the wrong person, having their company taken to court because of discriminatory actions, or committing unfair labor practices. HRM can improve profits and performance by hiring the right people and motivating them appropriately. It is also possible you may spend some time as an HR Manager, so being familiar with this material is important. Line and Staff Aspects of HRM – Although most firms have a human resource department with its own manager, all managers tend to get involved in activities like recruiting, interviewing, selecting, and training. Line Managers’ HR Duties – Most line managers are responsible for line functions, coordinative functions, and some staff functions. Human Resource Manager’s Duties – Human Resource Managers also have line, coordinative, and staff functions. However, they exert line authority only within the HR department. They have implied authority with line managers due to the fact that they have the ear of top management on many important issues contributing to organizational health. New Approaches to Organizing HR – Employers are experimenting with offering human resource services in new ways. For example, some employers organize their HR services around the following four groups: transactional, corporate, embedded, and centers of expertise. Cooperative Line and Staff HR Management: An Example – In recruiting and hiring, it’s generally the line manager’s responsibility to specify the qualifications employees need to fill specific positions. Then the HR staff takes over. They develop sources of qualified applicants and conduct initial screening interviews. They administer appropriate tests, then refer the best applicants to the supervisor (line manager), who interviews and selects the ones he/she wants. Ø NOTES Educational Materials to Use II. The Trends Shaping HR Management - Human Resource responsibilities have become broader and more strategic over time in response to a number of trends. The role of HR has evolved from primarily being responsible for hiring, firing, payroll, and benefits administration to a more strategic role in employee selection, training, and promotion, and an advisory role to the organization in areas of labor relations and legal compliance. Globalization and Competition Trends – Globalization refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. Globalization of the world economy and other trends has triggered changes in how companies organize, manage, and use their HR departments. 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. Indebtedness (“Leverage”) and Deregulation – In many countries, government stipends stripped away rules and regulations. In the United States and Europe, for example, the rules that prevented commercial banks from expanding into new businesses, such as stock brokering, were relaxed. C. Technological Trends – Virtual online communities, virtual design environments, and Internet-based distribution systems have enabled firms to become more competitive. HR faces the challenge of quickly applying technology to the task of improving its own operations. D. Trends in the Nature of Work – Jobs are changing due to new technological demands. Dramatic increases in productivity have allowed manufacturers to produce more with fewer employees. Nontraditional workers, such as those who hold multiple jobs, “contingent” or part-time workers, or people working in alternative work arrangements, enable employers to keep costs down. 1. High-Tech Jobs – More jobs have gone high tech, requiring workers to have more education and skills. Even traditional blue-collar jobs require more math, reading, writing, and computer skills than ever before. 2. Service Jobs – Most newly created jobs are and will continue to be in the service sector. 3. Knowledge Work and Human Capital – This refers to the knowledge, education, training, skills, and expertise of a firm’s workers. The HR function must employ more sophisticated and creative means to identify, attract, select, train, and motivate the required workforce. E. Workforce Demographic Trends – The labor force is getting older and more multi-ethnic. The aging labor force presents significant changes in terms of potential labor shortages, and many firms are instituting new policies aimed at encouraging aging employees to stay, or at re-hiring previously retired employees. Growing numbers of workers with eldercare responsibilities and high rates of immigration also present challenges and opportunities for HR managers. Demographic Trends – The U.S. Workforce is becoming older and more ethincally diverse. Demographic Trends are also making finding and retaining quality employees more challenging. “Generation Y” – Born between 1977 and 2002, these employees want fair and direct supervisors and aim to work faster and better than other workers. Retirees – Organizations must deal with the large number of people leaving the workforce. In many cases the number of younger workers entering the workforce is not enough to fill all of the vacated positions. Nontraditional Workers – These workers may hold multiple jobs and may be contigent or part-time employees. Technology is facilitating these alternate work arrangement. Workers from Abroad – This is one way that organizations are trying to overcome the large number of retirees, but the option is sometimes met with opposition as unemployment increases. F. Economic Challenges and Trends – All of these trends are occurring in a context of challenge and upheaval. In Figure 1-5, gross national product (GNP) – a measure of the United States of America’s total output – boomed between 1940 and 2010. Ø NOTES Educational Materials to Use III. The New Human Resource Managers – The trends discussed above mean changes in HRM. Human Resource Management Yesterday and Today - Today, we’ve seen that companies are competing in a very challenging new environment. Globalization, competition, technology, workforce trends, and economic upheaval confront employers with new challenges. In that context, employers expect and demand that their human resource managers exhibit the competencies required to help the company address these new challenges proactively. Management expects HR to provide measurable, benchmark-based evidence for its current efficiency and effectiveness, and for the expected efficiency and effectiveness of new or proposed HR programs. Management expects solid, quantified evidence that HR is contributing in a meaningful and positive way to achieving the firm’s strategic aims. They Focus More on Strategic, Big Picture Issues – HR Managers are more concerned with creating and administering HR policies that assist the organization in achieving its strategic objectives. They Use New Ways to Provide Transactional Services – HR Managers are having to be creative in how they offer services. Technology has drastically changed the way HR can deliver services such as benefits and recruiting information. They Take an Integrated, “Talent Management” Approach to Managing HR – Employers do not want to lose great talent to competitors, so managing employees involves creating an integrated process of identifying, recruiting, hiring, and developing high-potential employees. They Manage Ethics – Many ethical issues in organizations today are human resource issues. HR Managers must understand the ethical implications of their decisions. They Manage Employee Engagement - HR Managers need the skills to foster and manage employee engagement. People who are emotionally and mentally invested in the company are more successful. They Measure HR Performance and Results – Many companies are expecting HR, like other departments, to take action based on measurable results. For example, measuring the effectiveness of recruiting sources and then improving recruitment based on these results. They Use Evidence-Based Human Resource Management – This involves the use of data, facts, analytics, scientific rigor, critical evaluation, and critically evaluated research/case studies to support human resource management proposals, decisions, practices, and conclusions. They Add Value - From top management’s point of view, it’s not sufficient that HR management just oversee activities such as recruiting and benefits. HR must add value, particularly by boosting profitability and performance in measurable ways. They Have New Competencies - Adding value, strategizing, and using technology all require that human resource managers have new competencies. HR Managers still need proficiencies in functional areas such as selection, training, and compensation, but they also require broader business competencies. HR Certification – Earning certification through the Society of Human Resource Management is increasingly important as human resource management becomes more professionalized. Certifications of PHR (Professional in HR), GPHR (Global Professional in HR), and SPHR (Senior Professional in HR) are earned by those who successfully complete all the requirements of the certification program. Ø NOTES Educational Materials to Use IV. The Plan of This Book – Each topic interacts with and affects the others, and all should fit with the employer’s strategic plan. A. The Basic Themes and Features - HR is the responsibility of every manager. - HR managers must defend plans and contributions in measurable terms. - HR systems must be designed to achieve the company’s strategic aims. V. Chapter Contents Overview A. Part 1: Introduction 1. Chapter 1: Introduction to Human Resource Management 2. Chapter 2: Equal Opportunity and the Law 3. Chapter 3: Human Resource Management Strategy and Analysis B. Part 2: Recruitment, Placement, and Talent Management 1. Chapter 4: Job Analysis and Talent Management 2. Chapter 5: Personnel Planning and Recruiting 3. Chapter 6: Employee Testing and Selection 4. Chapter 7: Interviewing Candidates C. Part 3: Training and Development 1. Chapter 8: Training and Developing Employees 2. Chapter 9: Performance Management and Appraisal 3. Chapter 10: Employee Retention, Engagement, and Careers D. Part 4: Compensation 1. Chapter 11: Establishing Strategic Pay Plans 2. Chapter 12: Pay for Performance and Financial Incentives 3. Chapter 13: Benefits and Services Part 5: Employee Relations 1. Chapter 14: Ethics and Employee Rights and Discipline 2. Chapter 15: Labor Relations and Collective Bargaining 3. Chapter 16: Employee Safety and Health 4. Chapter 17: Managing Global Human Resources 5. Chapter 18: Managing Human Resources in Entrepreneurial Firms Ø NOTES Educational Materials to Use DISCUSSION QUESTIONS 1. Explain what HR management is and how it relates to the management process. Answer: There are five basic functions that all managers perform: planning, organizing, staffing, leading, and controlling. HR management involves the policies and practices needed to carry out the staffing (or people) function of management. HR management helps the management process to avoid mistakes and get results. 2. Give examples of how HR management concepts and techniques can be of use to all managers. Answer: HR management concepts and techniques can help all managers to ensure that they get results – through others. These concepts and techniques also help managers avoid common personnel mistakes such as: hiring the wrong person; experiencing high turnover; finding your people not doing their best; wasting time with useless interviews; facing lawsuits because of discriminatory actions; receiving citations under federal occupational safety laws for unsafe practices; having some employees think their salaries are unfair and inequitable relative to others in the organization; allowing a lack of training to undermine a department’s effectiveness, and committing any unfair labor practices. 3. Illustrate the HR responsibilities of line and staff managers. Answer: 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 (orientation); training employees for jobs that are new to them; improving the job performance of each person; gaining creative cooperation and developing smooth working relationships; interpreting the company’s policies and procedures; controlling labor costs; developing the abilities of each person; creating and maintaining department morale; and protecting employees’ health and physical conditions. Staff managers assist and advise line managers in accomplishing these basic goals. They do, however, need to work in partnership with each other to be successful. Some examples of the HR responsibilities of staff managers include assistance in hiring, training, evaluating, rewarding, counseling, promoting, and firing of employees, and administering various benefits programs. (LO 1.3; AACSB: Communication Skills; Learning Outcome: Define HRM and describe modern trends in the field) 4. Why is it important for a company to make its human resources into a competitive advantage? How can HR contribute to doing this? Answer: Building and maintaining a competitive advantage is what allows a company to be successful, remain profitable, and stay in business. HR can make a critical contribution to the competitive advantage of a company by building the organizational climate and structure that allows the company to tap into its special skills or core competencies and rapidly respond to customers' needs and competitors' moves. 5. Think of some companies that you are familiar with or that you've read about where you think the human resource managers have been successful in “adding value”. What do the HR managers do to lead you to your conclusion? Answer: Several companies are renowned for their effective human resource (HR) management practices, which have successfully added value to their organizations. Here are a few examples and the HR strategies they employed: 1. Google HR Practices: • Employee Benefits: Google is famous for offering exceptional benefits, including on-site healthcare, generous parental leave, and wellness programs. • Work Environment: The company promotes a collaborative and innovative work culture, offering spaces designed to inspire creativity. • Talent Acquisition and Development: Google employs rigorous hiring processes and continuous learning opportunities, including access to courses and training. Conclusion: Google’s HR practices add value by attracting top talent, fostering innovation, and maintaining high employee satisfaction and retention. 2. Netflix HR Practices: • Freedom and Responsibility Culture: Netflix trusts its employees to make decisions and offers them significant autonomy. This culture is supported by clear communication of expectations. • High Performance: The company maintains a focus on hiring top performers and letting go of those who do not meet high standards, maintaining a high-performance workforce. • Transparent Communication: Netflix is known for its open communication about company goals and performance expectations. Conclusion: Netflix’s HR strategies add value by promoting accountability, fostering a high-performance culture, and ensuring alignment with company objectives. 3. Zappos HR Practices: • Customer Service Focus: Zappos prioritizes customer service, making it a key part of its culture. HR supports this by hiring individuals who fit the company's service-oriented culture. • Employee Engagement: The company offers unique perks, such as team-building activities and a quirky office environment, to keep employees engaged. • Training and Development: Zappos invests heavily in training, including a robust onboarding program that emphasizes company culture. Conclusion: Zappos’ HR practices add value by creating a strong, customer-centric culture, enhancing employee engagement, and maintaining a motivated workforce. 4. Southwest Airlines HR Practices: • Culture of Positivity: Southwest Airlines promotes a fun and friendly work environment, often emphasizing a sense of humor and camaraderie among staff. • Employee Empowerment: Employees are encouraged to make decisions in the best interest of the customer, fostering a sense of ownership and responsibility. • Recognition and Rewards: The company has a strong culture of recognizing and rewarding employees for their contributions. Conclusion: Southwest’s HR strategies add value by cultivating a positive workplace culture, empowering employees, and fostering a strong sense of community, which translates to excellent customer service. 5. Microsoft HR Practices: • Diversity and Inclusion: Microsoft actively promotes diversity and inclusion, creating an inclusive environment where diverse perspectives are valued. • Continuous Learning: The company encourages a growth mindset, providing ample opportunities for professional development and learning. • Performance Management: Microsoft has revamped its performance review system to focus on growth and development rather than just metrics. Conclusion: Microsoft’s HR practices add value by fostering an inclusive and innovative culture, supporting continuous learning, and focusing on employee development. These companies illustrate how HR managers can add value through strategic hiring, creating a positive work environment, promoting continuous learning, and fostering a strong company culture. These efforts contribute to employee satisfaction, high performance, and overall organizational success. INDIVIDUAL AND GROUP ACTIVITIES 1. Working individually or in groups, develop outlines showing how trends like workforce diversity, technological innovation, globalization, and changes in the nature of work have affected the college or university you are now attending. Present in class. Answer: The list might include items such as the growth of adult (non-traditional aged) students, the use of computer and communications technology, diversity issues, and others. 1. Introduction • Overview of the college/university and presentation purpose. 2. Workforce Diversity • Initiatives: Diversity programs, faculty recruitment. • Impact: Campus culture, student support services. 3. Technological Innovation • Education: Online learning, classroom tech. • Administration: Efficiency, data management. 4. Globalization • International Collaboration: Exchange programs, global research. • Impact: Diverse student body, global curriculum. 5. Changes in the Nature of Work • Career Preparation: Internships, relevant skills. • Academic Adaptations: New programs, industry collaboration. 6. Conclusion • Summary and future implications. 7. Q&A • Open for audience questions. Use slides or charts to illustrate points and provide examples. 2. 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. Answer: The students should ask the HR manager to discuss how his/her role as a strategic partner is improving the bank’s performance, and if the bank’s culture is more innovative and flexible as a result of the strategic partnership. When conducting interviews with HR managers from local banks, the goal is to understand how they function as strategic partners within their organizations. Here are some common themes and responses you might encounter, based on hypothetical interviews with HR managers. You can use these as a basis for discussion in class. Hypothetical Interview Responses HR Manager A: Large Regional Bank • Strategic Alignment: "We work closely with the executive team to align our HR strategies with the bank's overall goals, such as increasing customer satisfaction and expanding into new markets. Our focus is on recruiting talent with specific skill sets in customer service and digital banking." • Talent Development: "To support these goals, we’ve implemented leadership development programs to prepare high-potential employees for future roles. This helps us build a strong pipeline of future leaders who understand our strategic objectives." • Performance Management: "We’ve revamped our performance management system to focus more on outcomes that align with our strategic goals, such as customer service metrics and innovation in financial products." HR Manager B: Community Bank • Community Engagement: "As a community bank, one of our key objectives is to build strong relationships within the community. We prioritize hiring local talent and offering internships to local students, which not only supports the community but also helps us better understand and meet local needs." • Employee Retention: "We offer unique benefits tailored to our employees, such as flexible working hours and community involvement opportunities. These initiatives help us retain top talent and reduce turnover, which is crucial for maintaining long-term customer relationships." • Compliance and Risk Management: "Given the regulatory environment, we place a strong emphasis on training and compliance. Our HR team ensures that all employees are well-versed in the latest regulations, which is essential for maintaining trust with our customers and avoiding legal issues." HR Manager C: National Bank Branch • Technological Integration: "As part of our digital transformation strategy, we’re focused on recruiting tech-savvy employees who can help us develop and implement new digital banking solutions. This is critical as more customers move towards online and mobile banking." • Diversity and Inclusion: "We’re actively working on increasing diversity within our workforce, which aligns with our broader strategic goal of better serving our diverse customer base. We believe that a diverse team can offer more innovative solutions and better understand the needs of different customer segments." • Employee Well-being: "In response to the challenges posed by the pandemic, we've introduced wellness programs and mental health resources. This is not only about caring for our employees but also about ensuring they are productive and engaged, which ultimately supports our strategic objectives." Discussion Points in Class 1. Strategic Alignment: How do different HR managers align their practices with the strategic goals of their banks? What specific initiatives are mentioned? 2. Talent Acquisition and Development: What methods are used to attract and develop talent that aligns with the bank's strategic objectives? 3. Employee Engagement and Retention: How do HR managers ensure that employees are engaged and satisfied? What unique benefits or programs are offered? 4. Compliance and Risk Management: How do HR departments manage compliance and regulatory challenges? 5. Technological Integration: How are HR managers addressing the need for digital skills in a rapidly evolving banking landscape? 6. Diversity and Inclusion: What strategies are in place to foster a diverse and inclusive workplace? By comparing these responses, you can identify common challenges and innovative solutions that different HR managers employ. This exercise can provide valuable insights into the role of HR as a strategic partner in achieving organizational goals. 3. Working individually or in groups, interview an HR manager; based on that interview, write a short presentation regarding HR's role today in building a more competitive organization. Answer: The responses here will, of course, depend upon the organization and HR manager interviewed. Hopefully, items such as workforce diversity, technological trends, globalization, high-performance work systems, HR metrics, or ethics will be mentioned. To craft a presentation on HR's role in building a more competitive organization based on an interview with an HR manager, you'll want to highlight key insights and strategies that emerged from the conversation. Here's a suggested structure for your presentation, along with some content ideas based on hypothetical insights from an interview: Title: HR’s Role in Building a Competitive Organization 1. Introduction • Purpose of the Presentation: To explore the strategic role of HR in enhancing organizational competitiveness. • Overview: Brief introduction to the interviewed HR manager and their organization. 2. Strategic Alignment • HR's Integration with Business Goals: • Example: The HR manager emphasized the importance of aligning HR strategies with the company’s long-term objectives, such as market expansion and innovation. • Role: HR acts as a bridge between top management and employees, ensuring that the workforce is aligned with the company’s vision and goals. 3. Talent Acquisition and Retention • Recruitment Strategies: • Example: The HR manager highlighted the use of advanced recruitment tools and data analytics to identify and attract top talent. • Retention Efforts: Focus on employee engagement programs, career development opportunities, and competitive compensation packages. • Impact: These strategies help build a skilled and motivated workforce, which is crucial for maintaining a competitive edge. 4. Employee Development and Training • Skill Enhancement: • Example: The company offers continuous learning opportunities, including workshops, online courses, and mentoring programs. • Leadership Development: Special programs to prepare high-potential employees for leadership roles. • Impact: A well-trained workforce is more adaptable and capable of driving innovation and efficiency. 5. Organizational Culture and Employee Engagement • Culture Building: • Example: The HR manager discussed initiatives to foster a positive and inclusive workplace culture, such as diversity and inclusion programs and team-building activities. • Employee Well-being: Emphasis on work-life balance, mental health resources, and flexible work arrangements. • Impact: A strong organizational culture enhances employee satisfaction, reduces turnover, and attracts top talent. 6. Technological Integration • Digital Transformation: • Example: Implementation of HR technologies like HRIS (Human Resource Information Systems) and AI-driven tools for employee management and analytics. • Automation and Efficiency: Use of technology to streamline HR processes, from payroll to performance evaluations. • Impact: Increases operational efficiency and allows HR to focus on strategic initiatives. 7. Compliance and Risk Management • Regulatory Compliance: • Example: The HR manager highlighted the importance of staying updated with labor laws and industry regulations to mitigate risks. • Training and Audits: Regular compliance training for employees and internal audits to ensure adherence to legal standards. • Impact: Protects the organization from legal issues and builds a reputation for ethical practices. 8. Conclusion • Summary of Key Points: Recap the strategic roles of HR in talent management, culture building, technological integration, and compliance. • HR’s Strategic Value: Emphasize how HR’s efforts contribute to creating a competitive, agile, and innovative organization. • Closing Remarks: Thank the HR manager for their insights and highlight the importance of HR in today's dynamic business environment. Presentation Tips • Visual Aids: Use slides with bullet points, charts, and images to illustrate key points. • Real-life Examples: Incorporate specific examples and quotes from the interview to add authenticity. • Engagement: Encourage questions and discussion at the end to engage the audience and deepen understanding. This presentation structure provides a comprehensive overview of HR’s role in building a competitive organization, based on insights from a real-world HR manager. Tailor the content to reflect the specific information gathered during the interview. 4. 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.” Answer: The students should look for articles and advertisements that deal with any of the following topics: conducting job analyses, planning labor needs, and recruiting job candidates; selecting job candidates; orienting, training, and developing employees; managing wages and salaries; providing incentives and benefits; appraising performance; communicating; training and developing managers; building employee commitment; equal opportunity; affirmative action; employee health and safety; and labor relations. To create a comprehensive list titled "What HR Managers and Departments Do Today," based on the content from business publications like Business Week and The Wall Street Journal, you can focus on a variety of HR roles and responsibilities commonly discussed in these sources. Here’s a suggested compilation based on contemporary HR practices and trends observed in business media: What HR Managers and Departments Do Today 1. Strategic Talent Acquisition and Recruitment • Develop and implement recruiting strategies to attract top talent. • Utilize data analytics and AI for candidate screening and selection. • Focus on employer branding to attract diverse candidates. 2. Employee Onboarding and Integration • Design and manage onboarding programs to integrate new hires. • Facilitate cultural acclimation and initial training for new employees. • Use digital tools for onboarding processes to ensure a smooth experience. 3. Learning and Development (L&D) • Offer continuous learning opportunities and professional development. • Create leadership training programs for emerging leaders. • Use e-learning platforms and workshops to enhance skills. 4. Performance Management • Implement performance evaluation systems, including regular reviews and feedback. • Set and track performance metrics aligned with organizational goals. • Use performance data to inform promotion and compensation decisions. 5. Employee Engagement and Retention • Develop and promote initiatives to boost employee engagement and satisfaction. • Conduct regular employee surveys to gauge morale and identify areas for improvement. • Implement recognition programs and career development pathways. 6. Compensation and Benefits Management • Design competitive compensation packages, including salaries, bonuses, and benefits. • Manage employee benefits programs such as healthcare, retirement plans, and wellness initiatives. • Benchmark compensation against industry standards. 7. Diversity, Equity, and Inclusion (DEI) • Promote DEI initiatives and foster an inclusive workplace culture. • Implement policies and training programs to address bias and discrimination. • Track diversity metrics and set goals for improvement. 8. Employee Relations and Conflict Resolution • Serve as a mediator in employee disputes and conflicts. • Ensure fair and consistent application of company policies. • Provide support for managers and employees on workplace issues. 9. Legal Compliance and Risk Management • Stay updated on labor laws and regulations to ensure compliance. • Conduct regular audits and training on legal and ethical standards. • Manage workplace safety programs and ensure a safe working environment. 10. HR Technology and Automation • Implement HR Information Systems (HRIS) for efficient data management. • Use automation tools to streamline HR processes like payroll, benefits administration, and recruitment. • Leverage data analytics for decision-making and strategic planning. 11. Change Management and Organizational Development • Support organizational change initiatives, such as mergers, acquisitions, or restructuring. • Develop strategies for managing employee transitions and minimizing disruption. • Foster a culture of agility and innovation. 12. Workforce Planning and Analytics • Analyze workforce data to anticipate future HR needs. • Develop succession plans to ensure leadership continuity. • Use predictive analytics to identify trends and inform HR strategies. 13. Employee Well-being and Mental Health • Promote initiatives that support physical and mental well-being. • Offer resources like Employee Assistance Programs (EAPs) and wellness workshops. • Encourage work-life balance through flexible work arrangements. 14. Corporate Social Responsibility (CSR) and Sustainability • Integrate CSR initiatives into the company’s culture and operations. • Encourage employee participation in community service and sustainability efforts. • Report on the impact of CSR initiatives to stakeholders. Conclusion HR managers and departments play a multifaceted role in modern organizations, contributing significantly to strategic planning, talent management, and the overall success of the business. Their work extends beyond traditional administrative tasks, encompassing a wide range of activities that drive organizational growth and adaptability in a competitive business landscape. 5. Based on your personal experiences, list ten examples showing how you did use (or could have used) human resource management techniques at work or school. Answer: 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 improved the efficiency of their work through the use of technology made available to them through human resource systems; 2) employed the services of non-traditional workers (or been employed as a non-traditional worker); 3) developed metrics to measure how they have added value in terms of human resource contributions; 4) kept themselves abreast of employment laws in order to minimize risk to their company; 5) utilized self-service HR technology; 6) employed High-Performance Work System concepts in their job/department. 6. 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 Allied Signal, 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 do 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? Answer: 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 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. Breen’s directive to Siegel was that her first priority be setting up corporate-governance and compensation systems and controls, then to transition "to really driving the talent machine." Siegel’s first step was to draft a strict company code of ethics. She then arranged to have it taught simultaneously at a special ethics training day to every Tyco employee. She advised the compensation committee on how to replace Tyco’s old salary and bonus policy, which rewarded acquisition-based company growth. The new system is based on measurable company performance. Bonuses and restricted-stock grants are linked to objective measurements, including each business unit’s earnings before interest and taxes, and Tyco International’s overall performance. Top officers are required to hold company stock worth 3 to 10 times their yearly base salary. They must hold 75 percent of their restricted stock and stock options until a minimum level has been reached. Above that level, they must hold 25 percent for at least three years. Severance pay is limited to two times an individual’s yearly salary plus bonus. Post-handshake perks, like consulting contracts and free transportation in company aircraft, have been abolished. 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 about ethics and policies. All of Tyco’s employees attended mandatory one-day ethics seminars, and more detailed programs are in the works for its 25,000 managers. In the past, the practice was to award huge bonuses to anyone who “somehow drove the numbers up.” The new system assesses how well managers set and meet goals. As a result, Tyco’s bonus budget for the fiscal year 2003 was reduced by $90 million. Students will probably agree that, in general, Siegel took the appropriate steps, and the turnaround and recovery of Tyco’s finances, profits, and stock prices are testimony to the effectiveness of her approach. Suggestions for what Siegel should do moving forward may include continued ethics training, HR strategies, and scorecards that drive the appropriate employee behaviors in support of the business strategy. 7. The HRCI “Test Specifications” appendix at the end of this book lists the knowledge someone studying for the HRCI certification exam needs to have in each area of human resource management. In groups of four to five students, do four things: (1) Review that appendix now. (2) Identify the material in their chapter that relates to the required knowledge the appendix lists. (3) Write four multiple-choice exam questions on this material that you believe would be suitable for inclusion in the HRCI exam. And (4) if time permits, have someone from your team post your team’s questions in front of the class, so the students on other teams can take each other’s exam questions. Answer: To complete the task related to the HRCI certification exam, follow these steps: 1. Review the HRCI “Test Specifications” Appendix • Objective: Familiarize yourselves with the knowledge areas required for the HRCI certification. • Action: Go through the appendix and note down the key areas of human resource management covered, such as Talent Acquisition, Learning and Development, Employee Relations, Total Rewards, and others. 2. Identify Relevant Material in the Chapter • Objective: Match the required knowledge areas with the material in your current chapter. • Action: Identify sections of the chapter that correspond to the topics listed in the HRCI appendix. For example, if the appendix lists "Employee Relations," find the part of the chapter discussing employee relations, conflict resolution, and related concepts. 3. Write Four Multiple-Choice Exam Questions • Objective: Create exam questions that reflect the knowledge areas and material reviewed. • Action: Write four questions, each with one correct answer and three plausible distractors. Ensure the questions test comprehension and application of the concepts. Sample Questions: Question 1:Which of the following is a key element of effective talent acquisition? • a) Offering the highest salaries in the industry • b) Relying solely on internal promotions • c) Using data analytics for recruitment decisions • d) Focusing exclusively on technical skills Correct Answer: c) Using data analytics for recruitment decisions Question 2:The purpose of an Employee Assistance Program (EAP) is to: • a) Offer financial bonuses to high-performing employees • b) Provide support services for employees facing personal challenges • c) Evaluate employee performance annually • d) Manage the company's compensation strategy Correct Answer: b) Provide support services for employees facing personal challenges Question 3:In the context of learning and development, a “needs assessment” primarily involves: • a) Developing training materials • b) Identifying gaps in employee knowledge and skills • c) Conducting performance reviews • d) Allocating the training budget Correct Answer: b) Identifying gaps in employee knowledge and skills Question 4:Total rewards encompass which of the following elements? • a) Base salary, bonuses, and career development opportunities • b) Only base salary and bonuses • c) Employee recognition programs alone • d) None of the above Correct Answer: a) Base salary, bonuses, and career development opportunities 4. Share and Test Questions • Objective: Share the created questions with the class for peer review and practice. • Action: If time permits, have a team member post the questions on a board or digital platform. Other teams can then attempt to answer the questions, providing an opportunity for discussion and learning. Additional Tips for Multiple-Choice Questions • Ensure that the questions are clear and unambiguous. • Avoid overly complex wording or technical jargon that may confuse the test-taker. • Ensure that all distractors (incorrect options) are plausible, to avoid making the correct answer too obvious. By following these steps, you and your group will not only reinforce your understanding of the material but also practice creating questions that reflect the style and rigor of the HRCI exam. This exercise will help prepare for certification exams and deepen your comprehension of key HR concepts. EXPERIENTIAL EXERCISES & CASES Experiential Exercise: Helping “The Donald” 1. Divide the class into teams of three to four students. 2. Read this: As you may know by watching “the Donald” as he organizes his business teams for “The Apprentice” and “The Celebrity Apprentice,” human resource management plays an important role in what Donald Trump, and the participants on his separate teams, need to do to be successful. For example, Donald Trump needs to be able to appraise each of the participants. And, for their part, the leaders of each of his teams needs to be able to staff his or her teams with the right participants, and then provide the sorts of training, incentives, and evaluations that help their companies succeed and that therefore make the participants themselves (and especially the team leaders) look like “winners” to Mr. Trump. 3. Watch several of these shows (or reruns of the shows), and then meet with your team and answer the following questions: a. What specific HR functions (recruiting, interviewing, and so on) can you identify Donald Trump using on this show? Make sure to give specific examples based on the show. Answer: Recruiting, interviewing, candidate evaluation, selection, and termination are the obvious functions that Donald Trump uses throughout the series. Students will give specific examples related to the episode they select. Challenge students to evaluate whether Donald Trump effectively utilizes these practices in the examples they cite, and why or why not. b. What specific HR functions can you identify one or more of the team leaders using to help manage his or teams on the show? Again, please make sure to give specific answers. Answer: Examples may include team leaders employing human resource strategies, planning labor needs, selecting job candidates, training and development of team members, developing compensation models, appraising performance, building commitment, implementing high-performance work system concepts, and identifying and reporting metrics and/or scorecards. c. 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”? Answer: Encourage students to identify specifically what was done effectively in the example they cite from an HR perspective, and how that would be viewed in a true organizational setting. There are mixed views of the effectiveness of both Trump’s and team leaders’ methods of implementing human resource functions in terms of “best practices.” Many critics have suggested that if actions on the show were carried out in the “real world,” the consequences would be lawsuits and significant dollars laid out both in direct and indirect costs. Have students reflect on this idea and facilitate discussion on what both “The Donald” and team leaders could have done more effectively from a human resource perspective in the examples cited. d. Present your team’s conclusions to the class. Answer: 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/not fire? iii. If you were the team leader in this example, what would you have done differently? Application Case: Jack Nelson's Problem 1. What do you think was causing some of the problems in the bank home office and branches? Answer: There is clearly a problem with communication, and the effects are felt in the area of employee commitment. Additional contributing factors include the lack of consistency in the policies and procedures of various locations. There is no cohesiveness to the staffing activities of this organization. 2. Do you think setting up an HR unit in the main office would help? Answer: Of course we think it would! Since there are HR-related problems both in the home office and in the branches, it is clear that an HR unit in the main office would help to coordinate HR activities in the branches. 3. What specific functions should an HR unit carry out? What HR functions would then be carried out by supervisors and other line managers? What role should the Internet play in the new HR organization? Answer: There is room for quite a bit of variation in the answers to this question. Our suggested organization would include: HR Unit: conducting job analyses, planning labor needs, recruiting, providing advice and training in the selection process, handling orientation of new employees, managing wage and salary administration, managing incentives and benefits, providing and managing the performance appraisal process, facilitating organization-wide communications, and providing training and development services. Supervisors and Other Line Managers: interviewing and selecting job candidates, training new employees, appraising performance, ensuring departmental and personal communications, and providing training and development. Internet and HR: shift some activities to specialized online service portals and/or providers. Specific Functions of an HR Unit: 1. Recruitment and Selection: Attracting, screening, and hiring qualified candidates. 2. Training and Development: Providing orientation, skill development, and career growth opportunities. 3. Compensation and Benefits: Managing payroll, benefits, and compensation structures. 4. Employee Relations: Handling grievances, conflict resolution, and maintaining workplace harmony. 5. Compliance and Legal Issues: Ensuring adherence to labor laws and company policies. 6. Performance Management: Designing performance evaluation systems and supporting supervisors. HR Functions for Supervisors and Line Managers: 1. Day-to-Day Supervision: Managing team performance and addressing immediate issues. 2. Employee Development: Coaching and providing feedback for professional growth. 3. Conflict Resolution: Addressing and resolving team conflicts. 4. Implementation of HR Policies: Applying HR policies and procedures in their departments. Role of the Internet in the HR Organization: 1. Recruitment and Job Posting: Utilizing online platforms for job listings and applicant tracking. 2. HR Information Systems (HRIS): Managing employee data, payroll, and benefits administration. 3. E-Learning and Training: Providing online training modules and resources for employee development. 4. Communication and Collaboration: Facilitating internal communication and team collaboration through digital tools. Continuing Case: Carter Cleaning Company 1. Make a list of 5 specific HR problems you think Carter Cleaning will have to grapple with. Answer: Potential answers could include the following: 1) Staffing the company with the right human capital by identifying the skills and competencies that are required to perform the jobs and the type of people that should be hired. Sourcing candidates and establishing an efficient and effective recruiting and selection process will be an important first step. 2) Planning and establishing operational goals and standards and developing rules and procedures to support business goals and strategies. Failure to do so will result in a lack of clarity around performance expectations down the line as each store becomes operational. 3) Implementing effective performance management by setting performance standards, offering high-quality appraisal of performance, and providing ongoing performance coaching and feedback to develop the abilities of each person and support positive employee relations. 4) Designing an effective compensation system that will give the company the ability to attract, retain, and motivate a high-quality workforce, and providing appropriate wages, salaries, incentives and benefits. A poorly designed system will result in recruiting problems, high turnover rates, and low employee morale. 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 new hire orientation program as well as a program for ongoing training and development. Lack of attention to this component may result in errors, increased operational costs, high turnover, and morale problems. Here are five specific HR problems Carter Cleaning might face: 1. High Employee Turnover: Frequent employee turnover due to the nature of the retail and service industry. 2. Inconsistent Training: Variability in training standards across different locations leading to inconsistent service quality. 3. Employee Scheduling Issues: Difficulty in managing shifts and ensuring adequate staffing during peak times. 4. Compliance with Labor Laws: Ensuring all locations adhere to labor laws and regulations, including wage and hour laws. 5. Employee Motivation and Morale: Maintaining high levels of employee motivation and engagement, especially in a high-turnover industry. 2. What would you do first if you were Jennifer Answer: Answers will vary. However, probably the most important first step is to ensure that the staffing process is well designed and targeting the right mix of skills and abilities needed among candidates. Thoroughness is necessary when analyzing the requirements of each job, developing a complete job description for each role, and sourcing candidates that meet those requirements. Significant time should be invested in the hiring process to ensure that potential employees meet the requirements and possess the skills and abilities to do the job. If I were Jennifer, the first step would be to conduct a comprehensive HR audit of Carter Cleaning's current practices and policies. This involves: 1. Assessing Current HR Policies and Procedures: Review existing HR documentation, employee handbooks, and practices to identify gaps and areas for improvement. 2. Gathering Employee Feedback: Collect feedback from employees through surveys or focus groups to understand their concerns, needs, and suggestions. 3. Evaluating Compliance and Legal Issues: Ensure that all HR practices comply with local, state, and federal labor laws and regulations. 4. Analyzing Workforce Data: Review data on employee turnover, absenteeism, and performance to identify trends and root causes. By starting with an HR audit, Jennifer can gain a clear understanding of the current state of the company's HR operations, identify key issues, and prioritize actions to address them effectively. 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 because every manager must be cognizant of methods for improving employee performance and the need to think strategically. Also, managers act as agents of the company, so they must be fluent in employment laws to avoid embarrassment and/or liability. Students who do not plan careers in management will be exposed to decisions made by their managers and the HR function. A firm grounding in HR practice can make them better consumers. Solution Manual for Human Resource Management Gary Dessler 9780132668217, 9780134235455, 9780135172780