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CHAPTER 1 STRATEGIC HUMAN RESOURCE MANAGEMENT IN A CHANGING ENVIRONMENT CHAPTER 1 DISCUSSION QUESTIONS 1. Describe the changing status of HRM. What factors have led to these changes? HRM executives are now vice presidents and definitely do more than plan the company picnic. HR is often involved with company strategy, improving quality and production, reducing labor costs and increasing the bottom line and market share. This has happened because HRM professionals have been able to quantify its functions and tie their successes into the corporate mission and its company’s competitive advantage. HRM has procured larger budgets and more clout in company decision-making processes. 2. How do productivity concerns influence organizational policies and procedures regarding HRM activities? HR policies and practices can enhance productivity, product, and service quality, and can create and sustain a competitive advantage. HRM programs can be directly linked to substantial cost savings, financial performance, and increased productivity. Examples of recent HRM activities directed at these criteria include new programs instituted by Owens Corning, John Hancock, RJR Nabisco, and Office Depot through its HRM division. These programs reduce the number of workers while increasing productivity. Additional programs that cross-train and test employees instituted at Frito-Lay, AMC Theaters and Blockbuster Video have reduced turnover, reduced theft, and increased productivity. 3. Describe the major HRM activities conducted in an organization. Provide an example of each from a company with which you are familiar. The specific examples will vary; however, the answers will be represented in Figure 1-3. The major HRM activities include organizational design staffing performance management & appraisal employee training and organizational development reward systems, benefits and compliance Human Resource Management (HRM) encompasses various activities aimed at managing an organization's workforce effectively. Here are the major HRM activities along with examples from a company: 1. Recruitment and Selection: This involves attracting, sourcing, screening, and selecting qualified candidates for job vacancies within the organization. Example: ABC Corp conducts an extensive recruitment process, including posting job openings on various platforms, reviewing resumes, conducting interviews, and administering assessments to select the best-fit candidates for a software engineering position. 2. Training and Development: This activity focuses on enhancing employees' skills, knowledge, and abilities to perform their jobs effectively and prepare them for future roles. Example: XYZ Company provides regular training sessions on new technologies and software tools to its employees to keep them updated with the latest industry trends and improve their technical expertise. 3. Performance Management: It involves setting performance goals, providing feedback, evaluating performance, and rewarding employees based on their contributions to organizational objectives. Example: DEF Ltd implements a performance appraisal system where managers conduct quarterly reviews with their team members to discuss performance metrics, provide constructive feedback, and set goals for improvement or career advancement. 4. Employee Relations: This activity focuses on fostering positive relationships between employees and management, resolving conflicts, and ensuring a healthy work environment. Example: LMN Inc. establishes an open-door policy where employees can freely communicate their concerns or grievances to HR or management, and regular team-building activities are organized to promote camaraderie and collaboration among employees. 5. Compensation and Benefits: It involves designing and administering competitive compensation packages and benefits programs to attract, motivate, and retain talented employees. Example: PQR Enterprises offers a comprehensive benefits package, including health insurance, retirement plans, flexible work arrangements, and performance-based bonuses, to ensure employee satisfaction and loyalty. 6. HR Planning and Analysis: This activity focuses on forecasting future workforce needs, analyzing current workforce trends, and developing strategies to meet organizational goals. Example: GHI Corporation conducts regular workforce planning meetings where HR collaborates with departmental managers to assess staffing requirements, identify skills gaps, and devise recruitment or training plans to address future business needs. These HRM activities collectively contribute to building a motivated, skilled, and productive workforce, which is essential for achieving organizational success and competitiveness. 4. What impact should the composition of the workforce have on HRM practices or activities? What future trends do you see that will influence HRM activities? Why is the growing cultural diversity of the workforce a management challenge? In the past the typical worker was a male (often white) who was a member of a single income household- fewer than 20% of today’s employees fit this description. By 2010 only 15% of the US workforce will be native-bon white males. A greater proportion of women and minorities have entered traditional male-dominated positions. Nearly 90% of the growth in the workforce from 1995-2008 came from women, immigrants, African Americans, Hispanic and Asians. In addition, growing rates of Baby-Boomers are retiring while the rate of Gen Y entering the workforce increases. Today's HRM professionals must deal with a growing variety of workers who each bring with them their own special needs and ideas. To accommodate the new workforce, organizations are offering more flexible work schedules, better training programs, flexible travel plans, child care arrangements, elder-care arrangements, and career development strategies so that work and nonwork responsibilities can be better integrated. Compliance with EEO laws has become more challenging with a probability of lawsuits increasing due to a more diverse workforce (aging baby-boomers). The ability to create innovative programs to train, compensate, assess and develop employees for the competitive advantage of the company is a challenge HRM will increasingly have with the growing diverse workforce. The future trends that will influence HRM activities are the increased globalization of the economy, changing technology, the need to be flexible to changing business environments, increases in litigation related to HRM, changing characteristics of the workforce and more emphasis on “bottom line” contribution. HRM may be required to develop programs to better train employees in tune to globalization i.e., many customers from different countries may require different training for customer service representatives. Many employees may be from different cultures requiring application of different laws for fair treatment compliance. HRM may have to train employees to work with the changing technology. In addition, HRM may have to use the changing technology to job match, interview, apply workforce reduction requirements, retrain employees that are cut due to the technological change, etc. As companies identify and develop core competencies, outsourcing activities increases. 5. Why is the support of line management critical to the effective functioning of HRM practices in an organization? Provide some suggestions for ensuring that this support is maintained. To the extent that management is motivated by an agenda that is incompatible with the agenda of the HRM function, the effectiveness of that system may be seriously jeopardized. Specifically, without cooperation from line management, HRM activities are likely to fail. HRM professionals need to convince line managers of the value of HRM activities for meeting organizational goals and for creating and sustaining a competitive edge. Instilling in line managers and employees alike a sense of ownership in HRM practices can do this. Line management needs to recognize the importance of HRM activities. In addition, line management and HRM departments should work closely together to identify critical performance requirements of the personnel function necessary for meeting specific organizational business needs. In the past HRM interventions were rarely linked to macro productivity or cost figures in order to show a reliable financial benefit. Demonstrating a link with the "bottom line" can ensure respect for HRM practices. Moreover, by demonstrating the utility of HRM practices, HR professionals will likely have an easier time "selling" their products (e.g., selection systems) to an organization. Demonstrating utility also allows HR professionals to speak the language of their counterparts from other divisions in the organization. Finally, by demonstrating a link between the bottom-line and HRM practices, top management is less likely to severely cut HRM budgets in times of economic pressure. 6. Why does the number of qualified applicants for each strategic position relate to corporate effectiveness? How can HRM enhance this? The number of qualified applicants for strategic positions is considered a leading indicator for an HR department and being on the “best place to work” list makes recruiting easier. Research has tied selection ratio to HR activities to corporate financial performance. The primary route for enhancing this is to increase the applicant pool through a variety of recruitment sources. This includes the categories of sources such as newspapers, job fairs, and online recruiting, as well as targeted recruitment through race or ethnic-oriented media outlets, etc. 7. What are the sources of uniqueness that can aid a company seeking competitive advantage? The four sources of uniqueness for competitive advantage are financial or economic capability, strategic or product capability, technological or operational capability, and organizational capability. HRM is critically tied to organizational capability and therefore can give the company a competitive advantage. Organizational capability may be critical to taking advantage of other sources of uniqueness. 8. Explain how Ford and GM have a competitive disadvantage related to financial capability. Both Ford and GM have high “legacy” costs which include health insurance and pension commitments. GM is obligated to pay in the range of $60 billion in health care costs and $87 billion in pension costs to retirees alone. GM also has pension obligations to Delphi of between $1.5 billion and $11 billion (The Economist, October 2005). Meanwhile Ford is facing an unfunded postretirement healthcare bill of $32.8 billion, and an under funded pension to the tune of 10.8 billion (Standard & Poor’s Report, March 2006). As of the date of writing, GM was expected to run out of operating cash in early 2009 and the federal government was considering increasing the automotive industry bail out in-excess of the tentative $25 billion. It is yet unclear if the bail out monies will come with ‘strings attached’ and increased government industry oversight and mandated restructuring. These legacy costs and lack of liquidity prevent research and development, expansion into foreign markets, and expansion of production capacity. Without this level of legacy costs rivals such as Toyota and Honda will be better equipped to weather difficult economic cycles, as well as experiment with new vehicles and business practices. Furthermore, Ford & GM may not be able to attract the R&D talent needed to develop more ‘green’ technologies. CHAPTER 2 THE ROLE OF GLOBALIZATION IN HR POLICY AND PRACTICE Chapter 2 - Discussion Questions Why do you think businesses internationalize? Which forces are most influential and which are secondary forces? Major reasons include access to additional resources, lower costs, economies of scale, favorable regulations and tax systems, direct access to new and growing markets, ability to customize products to local tastes and styles, and the rise of regional trade alliances. The identification of the most influential forces depends on the business. Businesses such as electronic manufacturing would identify its major forces as the lower costs of raw materials (as in ferrite cores) and labor. For example, McDonald’s or Starbucks would consider access to new and growing markets as the international force of major influence. Software developers would probably cite access to additional qualified talent as a major reason. Produce wholesalers (of oranges, bananas, etc.) would argue that tax advantages in the form of no duties or tariffs would be one justification to internationalize. The argument here is whether the access to new or growing markets is the primary influence and the tariff advantage as the secondary, or the favorable tax opened the new markets. The secondary forces are likely to be the ability to customize products to local tastes and styles and trade alliances. Think of three or four organizations with which you are familiar. How have they been affected by the globalization of business? Make sure you consider both direct and indirect influences. If they have not been particularly affected, what are some of the reasons for their insulation from the trend? Direct effects will either be increases to the bottom line or decreases to the bottom line. Increases to the bottom line are generally derived from one or more of the internationalization influences: access to additional resources, lower costs, economies of scale, favorable regulations and tax systems, direct access to new and growing markets, ability to customize products to local tastes and styles, and the rise of regional trade alliances. Decreases to the bottom line include loss of market share due to competitor’s globalization that resulted in decreased costs and subsequent gain in market share for competition. Additionally, any of the aforementioned influences that represent competitive advantage could affect the bottom line of its direct competitors. Indirect influences will likely be from one of the following: better and more sources available by searching the Internet to find best prices; purchasing products used in business activities imported by multinational companies. If the student indicates that the business has not been affected by globalization, the reasoning will probably be due to the local nature of the business. A local farmers’ market is a good example of this. The marketer buys only local produce to sell to local patrons. Some of those local patrons could be employees of a multinational and without the globalization of that company that employee may not have been in the local market to buy the local produce. Virtually every business is affected by globalization. Think about two businesses: (1) a manufacturer of athletic gear and (2) a property and casualty insurance company. How might the internationalization of each of these companies differ from one another? What factors might account for these differences? Choose one company and pretend that you’re the HR director. How would you figure out the “right” way to manage this international expansion? Similar factors for both companies in developing an international strategy are the economic, legal, political, and socio-cultural systems, language, and predominant religion in the chosen country. Both would also have to look at the industry specific issues and the internal strengths within their respective organizations. The athletic gear manufacturer will probably choose the country that has more advantages for lower labor and material costs. The country chosen would depend on whether it is rich with skilled or unskilled labor, depending on how difficult each step of the manufacturing process is. The company will be concerned about regulations and tariffs as well as any part of the process it may transfer to other facilities. The way in which the business globalizes will probably take the form of licensing, franchising, contract manufacturing, joint ventures with some sort of offshore facility. Depending on what their market is, the firm may be either multilocal or globally focused. The property and casualty insurance firm would place great emphasis on the pool of skilled workers available since labor accounts for most of cost of sales, especially in the service industries. This firm will probably consider language a stronger force than would the manufacturing concern. This firm will probably choose to take advantage of one of these types of globalizing, franchising, management contracts, and strategic alliances. Each firm will have its unique problems in the process of internationalizing. In both cases, however, the HR issues to look at and answer (the whom, what, when, where, and why) constitute the staffing, decision making, communication, compensation, career planning, performance management, and training of those employees affected. In addition, good measurement systems to determine the effectiveness of any programs instituted for the afore-mentioned activities is essential for any HR director. How do differences in international HR management (IHRM) strategies affect the relative importance of each of the HR domains? Domestic HR and international HR management strategies perform the same activities, yet international HR management must be aware and involved with the different cultures and the different employment and business laws and regulations within the countries the organization operates. In addition to cultural differences, the degree of the investment that a firm has in its foreign market versus its domestic market is an important consideration for HR. Laws or policies, conflicts of cultures, cultural, standards, training, and compensation differences are those challenges that IHRM need to pay attention to as they affect each of the HR domains. What are the advantages and disadvantages of using home-country, host-country, and third-country nationals? Under what specific circumstances might an organization choose to utilize third-country nationals? Companies that use home-country nationals believe that their management and human resource practices are a critical core competence that gives them a competitive advantage. These companies usually centralize their operations and the control is focused on the parent company and country. Firms of this strategy would typically have a large domestic market in the home country and cater to that market. Home-country nationals are typically management and key employees, while host country nationals are typically lower management and workers. Some organizations start with home-country nationals and as the host country nationals are identified and trained, turn the operations over to the host country nationals. Major disadvantages to using home-country nationals are the high cost, the poor success rate of expatriates, and the culture shock. Advantages are that the home country national possesses the knowledge about the parent company and can communicate the expectations and standards to the local workforce. Host country nationals are used when a firm sees that the different legal, social, and cultural conditions would make it difficult to impose the parent company’s HR practices that may be more ethnocentric and therefore opt to adopt a polycentric approach. This is generally true of firms that, although they would like tighter controls, have extreme price pressures and have to rely on the lowest cost possible. Host country nationals are typically less costly than home country nationals, especially if the home country has a high per capita GDP, as is the United States or many of the European countries. Communication can be difficult due to language and cultural differences. Companies that have key positions that require extensive international experience often turn to third country nationals. Usually this is looked upon as part of the training program for those key individuals. Advantages include creating more diverse management and obtaining global skills for leadership that can become a competitive advantage. Disadvantages are costs, culture shock and expatriate success rate. CHAPTER 3 THE LEGAL ENVIRONMENT OF HRM: EQUAL EMPLOYMENT OPPORTUNITY CHAPTER 3 - DISCUSSION QUESTIONS 1. In terms of EEO, how can customer requirements or preferences be used in hiring people? In the case of Diaz v. Pan American World Airways, the court found that customer preference was not a legally defensible reason for discrimination. Customer requirements or preferences do not justify discrimination against classes covered by Title VII. Discrimination against a protected group is only valid when the practice is “reasonably necessary to the normal operation of the organization.” Customer preference must be closely related to the essence of the business in order for it to be considered. 2. Given the great economic incentives for plaintiffs’ attorneys today, why is the EEOC even necessary? Why can’t a person simply be allowed to sue without the involvement of the EEOC? The EEOC has been instrumental in providing guidelines to organizations regarding EEO. The form that the EEOC requires companies to file (EEO-1) is one of the ways in which the EEOC can determine if there is a class of persons being discriminated against. The weight of the EEOC also has some deference in the courts. The cases the EEOC takes are typically larger in scope and have potential mass media appeal. Because of this and the authority given to the EEOC, the cases that have been settled with the EEOC serve as a deterrent to discrimination. 3. Describe the procedures required to file a discrimination lawsuits under the disparate impact and disparate treatment theories. How is adverse impact determined? Provide a scenario illustrating evidence of adverse impact in an employment decision. A yardstick recommended by the EEOC and adopted in numerous cases for determining disparate or adverse impact is the “four-fifths” rule. This means that a selection rate (number selected/number applied) for a protected group cannot be less than four-fifths or 80 percent of the rate for the group with the highest selection rate. The following scenario illustrates how one may demonstrate evidence of adverse impact. An organization uses a paper-and-pencil cognitive ability test to screen applicants for its assistant manager positions. While 75 percent of the whites passed the test, only 30 percent of African-Americans passed. Using the four-fifths rule, 80 percent of the highest selection rate (75 percent) is 60 percent; the test results in adverse impact. 4. Based on your reading of the major EEO laws, what information should an employer include in a personnel policies and procedures manual given to all employees? The employer should outline what the organization’s personnel policies and procedures are and how they are written to comply with all of the major EEO laws (Title VII, ADA, ADEA, PDA, GINA, etc). Employees should be made aware of their rights and what steps/policies the organization has established to protect those rights. An explicit policy regarding sexual harassment should be included. Statement regarding employment-at-will Nothing in the manual should be intended as an implied contract 5. What will be the impact of the 2008 ADA Amendments Act? Explain your answer The ADA Amendments ACT will increase the number of ADEA cases because of the recent Supreme Court rulings in Smith v. Jackson and Meacham v. Atomic Power allowing “disparate impact” theory putting the burden of proof on the employer in “disparate impact” cases, and the increasing proportion of workers who are over 39 and therefore eligible to sue. 6. What steps would you take to prevent ADEA cases after a major restructuring or reduction in force? Determining which employees to let go during a major restructuring or reduction in workforce should be based on objective factors other than age (E.G., performance and/or seniority). For example, in an effort to substantially reduce labor costs, it may appear most efficient to lay off older workers first since they tend to make more money than younger workers. However, this type of decision-making process is likely to conflict with ADEA guidelines. Organizations should be aware of the requirements for establishing a prima facie case of age discrimination. They are: 1. The employee is a member of the protected age group (40 or older), 2. The employee has the ability to perform satisfactorily at some absolute or relative level (e.g., relative to other employees involved in the decision process or at an absolute standard of acceptability), 3. The employee was not hired, promoted, or compensated, or was discharged, laid off, or forced to retire; and 4. The position was filled or maintained by a younger person. Employers should also keep in mind that the court has found that the controlling issue should be whether age was a determinative factor in the personnel decision, not the absolute accuracy or correctness of the personnel decision. 7. Would you be less likely to join an organization that required you to agree to binding arbitration regarding labor disputes and to waive your right to a jury trial? While a jury trial can award huge settlements to the wronged party, the cost of time and attention required to go to trial is very high. Most cases that go to trial spend years in litigation. The costs associated with arbitration are usually lower and the settlements have generally been much speedier. Because the quality of life is questionable during a lengthy court battle, arbitration doesn’t seem to be so bad. The EEOC is strongly opposed to binding arbitration for both job applicant and current employees. Studies do not report the argument that employees are so opposed to binding arbitration. 8. Should Title VII of the Civil Rights Act be amended to include sexual orientation? Justify your position. There is no indication that Congress is willing to do this. Of course, there are state and municipal laws that must be considered and that might apply to particular situations. provide arguments for both sides of the debate regarding whether Title VII of the Civil Rights Act should be amended to include sexual orientation protections. Arguments in favor of amending Title VII to include sexual orientation: 1. Equality and Non-Discrimination: Amending Title VII to include sexual orientation would align with the principle of equality and non-discrimination. LGBTQ+ individuals deserve the same protections against workplace discrimination as other protected classes such as race, sex, religion, and national origin. 2. Legal Consistency: Several court decisions have already interpreted Title VII's prohibition of discrimination "because of sex" to include discrimination based on sexual orientation and gender identity. However, codifying these protections explicitly in the law would provide consistency and clarity in interpretation across different jurisdictions. 3. Workplace Inclusivity and Diversity: Protecting employees from discrimination based on sexual orientation fosters a more inclusive and diverse workplace culture. When employees feel safe and valued regardless of their sexual orientation, it can lead to increased morale, productivity, and employee retention. 4. Economic Benefits: Studies have shown that inclusive workplace policies positively impact businesses, including increased productivity, improved employee satisfaction, and enhanced company reputation. Protecting LGBTQ+ individuals from discrimination can contribute to a more vibrant and competitive labor market. Arguments against amending Title VII to include sexual orientation: 1. Interpretation of Existing Law: Some argue that Title VII's prohibition of discrimination "because of sex" does not inherently include sexual orientation. They contend that adding sexual orientation explicitly to the law would require a legislative amendment rather than relying on judicial interpretation. 2. Religious Freedom and First Amendment Concerns: There are concerns about potential conflicts between anti-discrimination laws and religious freedoms, particularly for employers with religious objections to homosexuality. Some argue that forcing religious employers to comply with non-discrimination laws could infringe upon their First Amendment rights. 3. Government Overreach: Critics may view expanding Title VII to include sexual orientation as government overreach into private businesses' hiring and employment practices. They argue that businesses should have the freedom to make their own decisions regarding hiring and employment policies without government intervention. 4. Unintended Consequences: There are concerns about potential unintended consequences of amending Title VII, such as increased litigation, compliance burdens for employers, and negative impacts on small businesses. Critics may argue that these potential consequences outweigh the benefits of expanding anti-discrimination protections. Ultimately, whether Title VII should be amended to include sexual orientation protections is a complex and contentious issue that involves balancing competing interests, including equality, religious freedom, and economic considerations. CHAPTER 4 WORK ANALYSIS AND DESIGN CHAPTER 4 - DISCUSSION QUESTIONS 1. What is meant by conducting a work analysis? How might you convince top managers of the importance of conducting work analysis? First determine the tasks, activities, behaviors or duties to be performed. Identify the critical products, services or performance outcomes that are required by the customer and figure out what tasks are necessary to do for that job that will yield the required outcome. Next relative importance, frequency and essentiality can be determined for each task. The knowledge, skills, abilities and other characteristics (KASOCs) necessary to perform the job are identified. All these steps help in creating the products (i.e. job descriptions, job classifications, job evaluations, job designs, job specifications, performance appraisals, training programs, better efficiency, improved safety, and better human resource planning) necessary to defend the company in any legal battles with reliable data and validated methods. 2. Do you believe having highly detailed job descriptions for every position can interfere with group effectiveness? If so, is there anything that can be done? Instead of being written to be highly specific and detailed, job descriptions can be written at the group level which would encompass the minimal KASOCs that all group members need and the tasks that everyone would be expected to be able to perform. Moreover, job descriptions do not have to say that the incumbent will perform only those specific tasks defined in the description regardless of circumstances. The trick is to develop and use job analysis information with customer requirements as the context for its use. If the rewriting of job descriptions is not possible (e.g., a union contract may be in place which would prohibit such action), the organization can take other steps. This may include emphasizing to employees that in order for the organization to prosper, employees need to do more than simply comply with the stipulations of the job descriptions. Moreover, employers can rely on in house training and job rotation to develop those skills not specifically listed in a job description. 3. For each of the following HR systems, what type of analysis is needed to develop a professional and legally defensible system? a. Training program for new employees Would require a specification of the tasks, which are important and necessary for successful job performance. This includes gathering job analysis information that is task and person oriented. A training program needs to be based on the tasks performed and the necessary KASOCs. The demonstrated importance of the task to the job would be critical to make the training program legally defensible. The training program could focus on training those specific tasks, or it may be necessary to provide new employees with training so that they have the requisite skills and/or knowledge in order to learn the new skills. b. Selection system (Whether it be new hires, promotions, or terminations) also should be based on the demonstration of job-relatedness. In the case of new hires, requirements such as physical or educational qualifications can result in discrimination and may not be legally defensible if the specific requirements cannot be shown to be job-related through a job analysis. Selection decisions may require a college degree, but many high school graduates may be able to perform satisfactorily. Discrimination suits can also arise when a member of a protected class is passed over for a promotion, or is terminated. In order for the action to be more legally defensible, the area of poor performance should be important for successful job performance. c. Performance appraisal system Must be based on the activities of the job domain, which are important for successful performance. Performance appraisals can be used for hiring, promotion, termination, training, transfers, licensing, and certification decisions. For all of these potential applications, the performance appraisal system must be based on a job analysis so that the performance appraisal is evaluating the activities that are important to the job. Performance appraisal usually places more emphasis on the tasks (e.g., critical incidents), though KASOCs may also be helpful. A performance appraisal system that is based on a thorough job analysis has a lesser risk of being contaminated (containing activities which aren't really important to the job) and deficient (omitting activities which are important to the job). d. Compensation system Usually place more emphasis on the KASOCs required to perform the job successfully. Moreover, the activities required by the job serve as the basis for determining wage and salary rates. Jobs may be grouped according to the degree to which they possess major job factors (e.g., physical skills, mental skills, responsibility). These job groupings can be used when establishing wage rates. e. Job design Focus on the tasks performed and the responsibilities of the employees. This will enable the human resources to be reallocated or grouped together on the basis of the functions performed by the employees. Job analysis information can be used to recommend job enrichment, rotation or other job redesign interventions. All experts agree that the choice of job analysis method depends upon the purposes to be served by the data. There is no one best way to conduct a job analysis. The most definitive finding from the research on the relative effectiveness of the various methods is that multiple methods of job analysis should be used whenever possible. 4. Describe the advantages and disadvantages of using interviews, observation, and questionnaires for collecting work analysis data. •Interviews Advantages: Information on infrequently performed activities and physical and mental activities can be collected. The use of multiple sources instead of relying on a single source can provide a more comprehensive, unbiased view of the job. Disadvantages: Value of the data is dependent on the interviewers' skills and may be faulty if they ask ambiguous questions. Interviewees may be suspicious about the motives for the job analysis (e.g., fearful it will alter their compensation) and may distort the information they provide. •Observation Advantages: Allows for a deeper understanding of job duties than relying on incumbents' descriptions. Disadvantages: Unable to observe mental aspects of jobs (e.g., decision making strategies of managers or scientists). May not sample all-important aspects of the job, especially critical but infrequent incidents (e.g., use of weapons by police). •Questionnaires Advantages: Generally less expensive and quicker to use than other methods. Can enable smaller organizations that do not have a HR professional to obtain valuable information. Can reach a large sample of incumbents or sources, which allows for a greater coverage of informed individuals. Responses can often be quantified and analyzed in a variety of meaningful ways (e.g., comparisons can be made across jobs or departments for compensation or selection purposes). Disadvantages: If task oriented, the necessary KASOCs can only be inferred. Standardized forms may not provide accurate information because some questions require a high reading level and it may be difficult for incumbents to understand the questions. Some information may be lost if respondents write in their own responses to questions on a standardized form. How respondents interpret questions is difficult to assess. Response rates may be low, which limits the generalizability of the results. If one is using a tailor made questionnaire, then it can become an expensive and time consuming process. Open ended questions are difficult to quantify and require content analysis, which is time consuming. 5. How might you involve customers in the development of job descriptions and job specifications? Are there any constraints on what customers can stipulate in job specifications? Customer input is both valuable and vital to an organization. From a Total Quality Management (TQM) perspective, total customer satisfaction should be the ultimate goal. This can be accomplished by asking customers (both internal and external) what they feel is required in terms of job performance so that they (the customers) can receive quality products and services. The consumer can help identify the job domain and provide additional information as to what activities are important for effective job performance. For example, consumer action groups may request (or even insist) that UPC codes be provided on all products. On the other hand, the use of customer preferences related to protected class characteristics is very limited. Certainly any customer requests must be within legal guidelines. Requests should also be feasible and congruent with the goals of organizational effectiveness. 6. Do PAQ data provide sufficient argument of “job relatedness?” Explain. Although the PAQ has a history of research behind it with scores for determining levels of compensation, the argument to use the test recommended by the PAQ could still be in question. The process by which a particular test was classified as valid or “job related” may fall under close scrutiny. The extent to which the job evaluation points are up-to-date for setting compensation levels should also be assessed. One case concluded that PAQ results established “job relatedness.” 7. How would you use O*Net for developing job descriptions and specifications? O*Net has job descriptions for all of the jobs in its database. O*Net also lists KASOCs, educational requirements, and work context descriptions for all of its positions. Since the O*Net jobs approximate nearly all jobs requiring a job description, this is an excellent source for HR managers. 8. A fast growing small business decides to hire a human resources manager for the first time. What steps should be taken next? See Figure 4-1 on page 102 for chronological steps in effective work analysis. The company would first have to determine the tasks and KASOCs required for the human resource manager position. This may include surveying management regarding what they expect out of HR, as well as gathering research from other industries. Most likely a highly-standardize, off-the-shelf system such as the Position Analysis Questionnaire (PAQ) or Management Position Description Questionnaire (MPDQ) would best suit this situation. CHAPTER 5 HUMAN RESOURCE PLANNING AND RECRUITMENT CHAPTER 5 - DISCUSSION QUESTIONS 1. How should HR planning involve a comparison to competitors? What critical data are required? HRP should survey the external market conditions to safeguard its resources of human capital. Industry competition has a profound impact on HR planning. A comparison with competitors is essentially an attempt to determine their competitive advantage. This survey needs to determine what incentives competitors offer to their employees that attract and retain the most qualified individuals. Incentives can include factors other than wages (e.g., health care, on site child care or allowances, career planning, continuing education, working conditions, and job security). The data required to assess competitive advantage include critical manpower indices of effectiveness such as quality indices, average tenure, and numbers of days lost to illness or injury, number of accidents, and training costs. 2. Why is planning an important activity? What are some of the advantages of effective planning? Planning is the forecasting of HR needs in the context of strategic business planning. With the major changes and increasing uncertainty in the business environment, many organizations are adopting a longer term perspective and integrating HRP with business planning. Effective planning helps the organization meet its current and future needs. Since labor can constitute as much as 80 percent of operating expenses, effective HR planning is essential for organizations to maximize their human capital resources. Measures such as career planning and continuing education not only help satisfy future needs, but can also increase employee motivation, and reduce absenteeism and turnover. 3. Some organizations do a thorough job analysis first and then human resource planning as part of a restructuring process. What makes more sense to you? It makes sense to conduct the job analysis first and then do HRP. A current job analysis can aid in the recruitment of new employees who have the KASOCs necessary to perform the job. Better recruitment of qualified individuals will reduce the possibility of having to later recruit additional employees. A current job analysis can also help determine what kinds of strategic measures are necessary and how these should be implemented. If new technology is to be introduced, job analysis information will suggest if new employees need to be recruited, or what the training needs of the current employees will be. If downsizing, or restructuring into work groups, job analysis can determine which jobs can be eliminated or combined because of similarity. 4. Discuss the possible pros and cons of the two qualitative methods of forecasting labor demand presented. The two qualitative methods of forecasting labor demand are centralized and decentralized. Using the centralized approach, an HR department determines staffing requirements for the entire firm. The advantage to this method is that it is straightforward and simple to use. The main disadvantage of the method is that it may not be accurate since it assumes that a central HR office has an accurate understanding of the business as well as the needs of each unit or function. This assumption typically does not hold in large firms. The decentralized method has each unit or functional manager subjectively derive his or her own staffing needs. With this method each unit can more accurately determine its' immediate and future needs. The disadvantage is that when using formalized problem solving methods such as the Delphi technique, consensus can take a long time to reach. 5. If actual performance of the human resources plan differs from desired performance, what remedial steps might you use? The specific remedial steps will depend on which aspects of the HR plan are deficient. For example, if current recruitment practices have resulted in an inadequate number of selected minorities, efforts can be aimed at targeting minority campuses or utilizing employee referrals from minority incumbents. In the case of workforce reduction, additional benefits to make early retirement more attractive can help. High turnover can be reduced through career planning and continuing education. Failure to achieve HR planning goals may not be due to a lack of resources. In this case, a reexamination of the HR implementation strategy may suggest using alternative or creative methods (e.g., job sharing or permanent temporaries). 6. Employee referral is a popular method of recruiting candidates. What are its advantages and disadvantages? Employee referrals can be a good source, especially when recruiting candidates in occupations that are in great demand. Formal systems are an effective way of attracting interested applicants. On the downside, the extensive use of employee referrals can cause EEO problems. For example, the practice of relying on referrals from a predominantly white workforce rather than seeking new employees in the marketplace can be discriminatory. 7. What are the advantages and disadvantages of the various external recruitment sources? External recruitment sources include walk ins, referrals, advertising, employment agencies, search firms, campus visits, professional associations, and computerized services. Each is discussed below. Walk ins are the most common and least expensive of external recruitment sources. Direct applications provide a pool of potential employees to meet future needs and are particularly effective for filling entry level and unskilled positions. A disadvantage to this method is that it is not especially helpful for placing applicants into skilled positions. Referrals (refer to question 6 above) There are several advantages to the use of advertising. This approach can reach large numbers of people and can target particular populations for a specific job. This approach is also very versatile (e.g., newspaper, television, radio, trade magazines). However, advertising can be very expensive. Moreover, care must be taken to ensure that ads are not discriminatory. Finally, depending on the type of advertising used, the lead-time required might extend the time it takes to fill a position. Employment agencies can also aid organizations by increasing the pool of possible applicants and by providing preliminary screening services. This approach may be advantageous when: (1) the organization has difficulty acquiring a pool of qualified applicants; (2) the organization is not equipped to develop a sophisticated recruitment effort; (3) there is a need to fill a position quickly; (4) the organization is explicitly recruiting minorities or females; and (5) the organization is trying to recruit individuals who are not actively seeking employment. Unfortunately, neither employers nor employees are satisfied with current federally funded agencies. Search firms can be very useful for locating "hard to find" employees with specialty skills. This method also frees up internal HR resources. On the downside, search firms can be very expensive if the firm operates off a commission. Also, many searches take longer than expected, causing some positions to remain unfilled. Campus visits are a major source of recruiting for professional and managerial positions. The quality of recruits, however, is questionable since recruiters are primarily in the role of selling the company and not in finding the best candidates. This method can also be extremely expensive. Professional associations can provide a source of recruits in specialized areas. The network of the association can reach a large pool of potential applicants. A disadvantage to this method is that qualified candidates may be overlooked. Finally, a new area of recruiting is computerized job listings. Candidates can apply directly through the computer. Preliminary evaluations of this method are positive. The disadvantages are that these listings are direct competition with the listings of other companies. Further, there is no guarantee that a particular position will be filled. 8. How do human resource planning and recruitment complement each other? Recruitment success affects selection success and the use of certain selection procedures can affect recruitment success. Without the qualified employees, planning will stress better recruitment processes. If recruitment is getting the qualified employees, planning can then look at the other interdependent and integrated HR functions. 9. Suppose a key employee has just resigned and you are the department manager. After you have sent your request to personnel for a replacement, how could you help the recruiter to find the best replacement? The first step would be to review the current job description and provide the recruiter with that information. If possible, it would be a good idea to get information regarding the job from the employee who is resigning (exit interview). The current job description may be outdated and the incumbent can review the job description and assess its accuracy. In addition, it would be worthwhile to solicit the incumbent's opinions regarding what KASOCs are important for successful job performance. Once obtained, this critical information could be disseminated to the recruiter. The recruiter should also be supplied with information that will allow him/her to present the potential employee with a realistic job preview in an effort to increase the new employee's chance of success. After making the replacement for the position, the recruiter should be informed regarding who was hired and why. This feedback will help the recruiter improve his/her future decision-making. 10. Discuss the advantages and disadvantages of using Web-based recruitment. Having electronically submitted résumés may be a competitive advantage for an organization that has the capability of searching for the skills necessary and then ranking the résumés for call backs regarding interviews. There is still a risk of not receiving potentially qualified individuals résumés if particular formats are required, which will limit the pool. Finding a job in which to apply is somewhat easier on the Internet than reading the classifieds of the newspaper. The search feature to most of the on-line job finders helps cull out those jobs that an individual either had no interest in or is eliminated because of another limitation (geography, experience, skills, certifications, etc.). Those technically literate probably do not have a problem with the electronic submissions, although it takes time to fill out the form. Also each of the services has their own form that usually can be drawn from the individual’s résumé. The time expenditure is quite a bit more than producing one résumé and sending it to multiple organizations at once. The electronic submitted résumé is void of any personal touches one might have on a paper one. CHAPTER 6 PERSONNEL SELECTION CHAPTER 6 – DISCUSSION QUESTIONS 1. Are GMA or cognitive ability tests more trouble than they are worth? Given that some minorities may score lower on such tests, would it be advisable to find some other method for predicting job success? There are still reasons to recommend the use of cognitive ability tests. As noted in the text, research on cognitive ability tests indicates their use can lead to substantial increases in productivity and costs savings for companies. They are generally inexpensive. Finally, when there are a great many applicants, cognitive ability tests may serve as a quick, inexpensive initial screening device. Rather than being used as a specific hurdle, cognitive ability tests probably should be used in combination with other information, such as work history, job simulations, and so on. Nevertheless, given the Civil Rights Act of 1991, organizations that use cognitive ability tests should carefully evaluate them. The use of cognitive ability tests obviously presents a dilemma for organizations. The evidence supports the argument that these tests are valid predictors of job performance across a wide variety of jobs. Use of such tests has been shown to have economic utility and to result in greater productivity and considerable cost savings to employers. However, it is also clear that selection decisions that are based solely on the scores of cognitive ability tests will result in adverse impact upon African Americans and Hispanics. Such adverse impact can entangle an organization in costly litigation. The question becomes whether to eliminate the use of a test that has been shown to be useful in predicting job performance, or to keep the test and reduce or eliminate the level of adverse impact by placing less emphasis on the raw score of a test. Such policies may then leave a company open to reverse discrimination lawsuits by whites who were not selected for employment although their raw scores on the test were higher than scores obtained by some minorities who were hired. Cognitive ability tests can be recommended, but with caution. Selection decisions should not be based solely on the use of cognitive ability tests. The organization should also determine what selection method is the most valid for the specific job in question. For example, is a cognitive ability test the best predictor of managerial success? The organization should also explore the use of a combination of methods in an effort to increase prediction. For example, the use of other methods (e.g., personality measures, performance tests) may tap other individual difference variables important to job success (e.g., motivation levels, leadership ability). Such a strategy may also increase an organization's competitive advantage while reducing the chances of litigation. 2. Why do you need tests of clerical ability? Couldn’t you just rely on a typing test and recommendations from previous employers? Since companies are more reluctant to furnish information about a former employee other than the start and end date of employment, it would probably be in the best interest of the hiring company to rely on a work sample to assess the KASOCs of the applicants. In addition, the work sample can serve as a realistic job preview and help to “match” the person with the job. Since the “matching” has been found to be a leading edge indicator for the financial success of a company, there would be greater utility in using a work sample and structured interview. 3. Under what circumstances would GMA or cognitive ability tests be appropriate for promotion decisions? Are there other methods that might be more valid? When the cognitive ability test in question is a valid predictor of an effective performer in the job to which the individual will be promoted, and no other test is found as valid, then the cognitive ability test should be used. However, since virtually all cognitive ability tests result in adverse impact, cognitive ability tests should be used with caution. A combination of cognitive and motivational tests is more valid than just using cognitive ability testing only. The combination testing also results in a more complete assessment of the individual. Selection decisions should not be based solely on the use of cognitive ability tests. The organization should also determine what selection method is the most valid for the specific job in question. For example, is a cognitive ability test the best predictor of managerial success? The organization should also explore the use of a combination of methods in an effort to increase prediction. For example, the use of other methods (e.g., personality measures, performance tests) may tap other individual difference variables important to job success (e.g., motivation levels, leadership ability). Such a strategy may also increase an organization's competitive advantage while reducing the chances of litigation. 4. If you were given a personality test as part of an employment application process, would you answer the questions honestly or would you attempt to answer the questions based on your image of the "correct" way to answer? What implications does your response have for the validity of personality testing? What does the evidence on faking show? The potential problem with answering personality items based on your image of the correct response or "faking good" is that you may end up being hired for a job you are not really suited for or that you are not really happy with. Alternatively, if most applicants are also "faking good," then you might also need to "fake good" in order that you are not excluded from further consideration. If almost all other applicants are "faking good," this is likely to limit the validity of such testing. It is usually not in the best interest of anyone to try and "outsmart" the test by attempting to answer questions based on an image of the "correct" way to answer. The validity of any self report measure is threatened by response bias or the possibility of deliberate faking of answers. Many of the most respected personality tests, such as the MMPI and the CPI, include validity scales that enable the interpreter to assess the credibility or truthfulness of the answers. The fact that applicants can "fake" personality tests calls into question the validity of personality tests in general, and is one of the explanations for the inconsistent validity of personality tests in the employment context. Recent evidence indicates that the extent of faking may not be as great as previously thought. 5. Discuss the advantages and disadvantages of performance testing and work samples. Under what circumstances would such tests be most appropriate? Advantage of performance testing is that the results of the scores will produce less adverse impact than the use of cognitive ability scores as the criteria. Another advantage is that the utility of the test is more than not testing since the performance test can also serve as a realistic job preview as long as the work sample was taken from a valid job analysis. Additionally, the defensibility is greater with performance testing as long as each of the items tested are job related. The disadvantages are that performance testing can be expensive. However, testing via the Internet may bring down costs. 6. Given that the validity of assessment centers and work samples are not significantly greater than that reported for cognitive ability tests, why would an organization choose the far more costly approaches? There are a number of reasons why an organization would choose an assessment center over a mental ability test. First, cognitive ability tests often result in adverse impact, while the assessment center approach has been shown to be fair to minorities, women, and older workers with the results much more defendable in court. Moreover, unlike traditional selection measures, these performance tests focus on the observation of actual behaviors. That is, assessment centers provide candidates with an opportunity to demonstrate various job related skills across a variety of exercises. An organization might choose the more costly approach for several additional reasons. First, work samples and assessment centers generally have less adverse impact than cognitive ability tests. Second, work samples and assessment centers may be more able to assess applicant motivation. Third, work samples and assessment centers may provide developmental information for applicants so they can improve future job performance. Aside from the empirical evidence, assessment centers possess high "face validity" relative to mental ability tests. That is, because of the ways centers are constructed (e.g., the language and context of exercises), assessment centers look like valid and acceptable ways for selecting and promoting individuals. As a result, organizations may have an easier time of selling this approach to employees. The assessment center approach also allows organizations to evaluate a wider variety of competency areas that cannot be tapped by cognitive ability tests (e.g., oral and written communication skills, initiative, and interpersonal skills). Finally, the assessment center offers a wealth of performance feedback. This information can be a vital source of developmental information to the participants. Overall, it is easy to see why this approach may be preferred over mental ability tests. [Note to Instructor: In practice, organizations such as the Tennessee Valley Authority (TVA) and IBM often incorporate cognitive ability tests into the design of their assessment centers.] 7. It has been proposed that students be assessed with work simulations similar to those used in managerial assessment centers. Assessments are then made on student’s competencies in decision-making, leadership, oral communication, planning and organizing, written communication, and self objectivity. What other methods could be used to assess student competencies in these areas? There are several other methods that could be used to assess student competencies in these areas. Students could be presented with scenarios or case studies designed to assess decision making, leadership, and planning and organizing skills. They would then be asked to choose the best response to the situation from a list of alternatives. Each inventory could then be objectively scored. Of course, peer assessment could also be used. Written communication exercises are often assessed through course requirements. Providing students with adequate opportunity to present written information can assess their competency in this area. Self objectivity could be assessed by having students rate themselves on some skill and compare the rating to ratings given by others (peers, advisors, etc.) on the same skill. 8. What is stereotyping? Give examples of legal and illegal stereotypes. Stereotyping is when an impression about an individual is formed on the basis of his or her group membership rather than on his/her unique individual attributes. It involves categorizing people into groups according to the match between the individual and group's traits. Stereotyping that results in discrimination based on race, sex, age, religion, national origin, or disability is illegal. Stereotyping on past work performance is legal. 9. Describe how an organization might improve the reliability and validity of interviews. First, using a standardized interview (e.g., the structured, panel, and situational interviews) can increase the reliability and validity of the interviews. Controlling for situational factors, providing interviewer training, periodically evaluating the purpose of the interview, using more than one interview, and establishing the purpose of the interview can also improve validity and reliability. Finally, standardizing the interview with respect to the content of the interview can improve reliability and validity. In addition, behavioral interviewing is more valid than other approaches. 10. Contrast an unstructured interview with a situational or behavioral interview. An unstructured interview occurs when an interviewer asks different questions of different applicants, or when different interviewers are used for different applicants. The main problem with unstructured interviews is that there is no basis for comparison. A situational interview, on the other hand, is a structured interview that requires that the applicant describe how he or she would act in a hypothetical situation. Because this type of interview is structured, (i.e., contains the same situations for each applicant) it provides a better basis for comparison. Behavioral interviewing is a more valid approach. 11. "The most efficient solution to the problem of interview validity is to do away with the interview and substitute paper and pencil measures." Do you agree or disagree? Explain. Responses will vary, but most students will probably disagree with this statement. A possible response might be as follows: Recent efforts have shown that the usefulness of interviews may be increased through strategies such as (1) using structured formats particularly with behavioral questions, (2) controlling for extraneous variables (e.g., interview setting), (3) providing interviewer training, (4) focusing on past behavior, and (5) using multiple interviewers. Moreover, the interview is a very effective medium for assessing applicants' motivational and interpersonal skills. Finally, there are a number of things that can be captured in an interview that can't be captured on paper (e.g., applicants' oral communication skills, interpersonal skills). 12. Explain the difference between “actuarial” and “clinical” or “holistic” prediction. Actuarial prediction derives a score based on weighing information according to relative validity of the various sources of information about each candidate. Clinical or holistic prediction calls for an overall judgment based on information gathered by experts (hopefully!) Actuarial is more valid, even using simplified weighting schemes using unit-weights for valid information. Solution Manual for Human Resource Management John H. Bernardin, Joyce E. A. Russell 9780078029165, 9780071326186
