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Chapter 4 The Competitive Environment Closing Case: Acting on a Strategic Vision Case Summary Established as Amazin’ Software by an ex-Apple marketing executive named Trip Hawkins, Electronic Arts (EA) was a pioneer in the home computer-game industry. From the outset, EA published games created by outside developers—a strategy that offered higher profit margins and forced the new company to stay in close contact with its market. Activision’s path to success in the industry wasn’t quite as smooth as EA’s. Activision was founded as a haven for game developers unhappy with prevailing industry policy. Positioning itself as the industry’s first third-party developer, Activision began promoting creators as well as games. The company went public and rode the crest of a booming market. Enter Robert Kotick, a serial entrepreneur with no particular passion for video games, who bought one-fourth of the firm and took over as CEO. Kotick looked immediately to Electronic Arts for a survey of best practices in the industry. What he discovered was a company whose culture was disrupted by internal conflict—namely, between managers motivated by productivity and profit and developers driven by independence and imagination. The key to getting Activision back in the game, Kotick decided, was managing this complex of essential resources better than his competition did. So, Kotick moved the company to Los Angeles and began to recruit the people who could furnish the resources that he needed most—creative expertise and a connection with the passion that its customers brought to the video-game industry. Between 1997 and 2003, Kotick proceeded to buy no fewer than nine studios, but his concept of a video-game studio system was quite different from that of EA, which was determined to make production more efficient by centralizing groups of designers and programmers into regional offices. The strategy has paid off big time. The company, now known as Activision Blizzard, has squeezed past EA to become the bestselling video-game publisher in the world not affiliated with a maker of game consoles (such as Nintendo and Microsoft). Case Questions 1. How might different competitive strategies help to explain why Electronic Arts lost its leadership in the video-game market to Activision Blizzard? There are three specific competitive strategies: differentiation, cost leadership, and focus. Activision Blizzard’s differentiation strategy was to keep its business units decentralized, and encourage autonomy by providing seed money for Activision alumni who wanted to launch out their own studies. The cost leadership strategy allowed each studio the freedom to develop its own financial statements and draws on its own bonus pool, and the paychecks of studio heads reflect companywide profits and losses. Each studio was given the freedom to manage its own finances, unlike in EA where everything was managed by the top management and it was a centralized system. The focus strategy of Activision Blizzard was about each studio focusing on the programmers and designers in its region and encouraging them to develop more video games. 2. How would you use the adaptation model to advise Activision Blizzard on the best way to maintain its leadership in the video-game market? The adaptation model suggests that managers in an organization should try to match the organization’s strategy with the basic conditions of its environment. If any of the Activision Blizzard studios are situated in an environment when business operates with relatively little uncertainty and risk and a high degree of stability, then the studio should opt for defender strategy. If any of the studios are situated in a dynamic and growing environment which has considerable risk and uncertainty, then they should opt for a prospector strategy. If any of the studios are situated in environments that fall between the extremes of prospector and defender strategies, then the studio should opt for analyzer strategy. If any of the studios ignores its environment or else attempts to react to its environment in inappropriate ways, then such firm is seen as a strategic failure. 3. If you ran a small video-game start-up, what would be your strategy for competing with EA and Activision Blizzard? Competing with giants like EA and Activision Blizzard in the video game industry would require a strategic approach that leverages your startup's unique strengths. Here's a broad strategy you could consider: 1. Focus on Niche Markets: Identify underserved or emerging niche markets within the gaming industry and tailor your games to cater specifically to those audiences. This could include genres, themes, or gameplay styles that are not well-covered by larger companies. 2. Innovative Gameplay and Mechanics: Offer unique and innovative gameplay experiences that set your games apart from those of your competitors. This could involve new game mechanics, storytelling techniques, or immersive technologies like VR or AR. 3. Community Engagement: Build a strong community around your games by actively engaging with your players. This could include regular updates, events, and opportunities for players to provide feedback and contribute to the game's development. 4. Agile Development Process: Adopt an agile development process that allows you to quickly iterate on your games based on player feedback and market trends. This can help you stay nimble and responsive to changing market conditions. 5. Digital Distribution and Monetization: Embrace digital distribution platforms like Steam, Epic Games Store, and consoles' online stores to reach a global audience without the need for physical distribution. Explore various monetization models like free-to-play, subscription, or downloadable content (DLC) to maximize revenue. 6. Partnerships and Collaborations: Partner with other developers, content creators, or brands to expand your reach and appeal to new audiences. Collaborations can also help you leverage existing fan bases and resources. 7. Focus on Quality: Ensure that your games are of the highest quality in terms of gameplay, graphics, and overall polish. This can help you build a reputation for excellence and attract a loyal fan base. 8. Flexible Pricing and Sales Strategies: Experiment with pricing and sales strategies to attract new players and maximize revenue. This could include discounts, bundles, or limited-time offers. 9. Brand Building and Marketing: Invest in building a strong brand identity and marketing your games effectively. This can help you stand out in a crowded market and attract attention from players and media alike. 10. Long-Term Vision: Have a clear long-term vision for your company and its place in the industry. Stay adaptable and open to new opportunities while staying true to your core values and goals. By focusing on these strategies, you can position your startup as a competitive player in the video game industry, even against larger companies like EA and Activision Blizzard. The following items appear on the in-text Instructor Prep Cards. These notes and suggested talking points should help instructors conduct these exercises with the students. Discussion Questions 1. Discuss the influence of organizational purpose, mission, and the top management team on human resource strategy. The purpose and mission of an organization are two of the most fundamental contextual forces that define the strategic context of human resource management. An organization’s purpose is its basic reason for existence, while its mission is how its managers have decided to fulfill its purpose. The mission statement attempts to specify the unique characteristics and strengths of an organization while defining its scope of business operations. Purpose and mission affect human resource strategy in at least two ways. First, they affect the types of employees that the organization will need with particular backgrounds, expertise, and professional training. The organization’s human resource strategy should be adapted to best attract and retain the right types of employees. Second, mission statements may provide subtle clues as to the importance the organization places on its human resources, clues that will affect human resource strategy design. The top management team sets the tone for the organization and helps shape its culture by providing a clear vision of where the organization should be headed. Top managers often communicate their own personal values and beliefs through their behaviors, which help guide employee behaviors by showing what is valued by members of the organization. The top management team helps to shape and reinforce the organization’s purpose and mission, on which human resource strategy should be based. 2. Distinguish among corporate, business, and functional strategies. How does each general level of strategy relate to human resource management? Corporate strategy is the set of strategic alternatives that an organization chooses as it manages its operations across several industries and markets. This includes the choice of a grand strategy, such as growth, retrenchment, or stability, as well as the choice of either unrelated or related diversification as a strategy. Business strategy is the set of strategic alternatives that an organization chooses from in order to effectively compete in a particular industry or market. Choices include adaptation models such as defender, prospector, analyzer, or reactor and competitive strategies of differentiation, cost leadership, and focus. Functional strategies consider how the firm will manage each of its major functions, such as marketing, finance, and human resources. It is at this level that strategy formulation begins to take shape. Specific human resource policies and programs are formulated that are closely integrated and coordinated with corporate, business, and other functional strategies. The strategic choices that an organization makes at the corporate and business levels will dictate the human resource strategy necessary to effectively manage its human resources. 3. Specify the circumstances under which, from a firm’s perspective, a firm’s human resources might be seen as an organizational strength. Specify the circumstances under which human resources might be seen as a weakness. A firm’s human resources might be seen as a strength if the people who work within the organization are capable, flexible, contributing employees that conscientiously work toward the organization’s strategic goals. Employees with firm-specific expertise may provide a competitive advantage, which would be seen as an organizational strength. The organization’s ability to attract and retain new talent would also be an organizational strength. A firm’s human resources might be seen as a weakness if employees lack particular training, firm-specific capabilities, or motivation to work in support of organizational goals. Similarly, an organization’s inability to attract and retain talent would be an indication of weakness in the human resource area. 4. Discuss how the specific business strategies relate to human resource management. Particular business strategies relate to human resource management in different ways. Under the adaptation model of business strategy, an organization may choose the defender, analyzer, or prospector strategy or may operate under the reactor strategy. A defender strategy is best when a business operates in an environment with relatively little uncertainty and risk and a high degree of stability. Its main approach is to guard and secure the organization’s position within an existing market. Human resource managers in defender organizations are most likely to recruit and seek to retain stable employees with high levels of organizational commitment and loyalty. A prospector strategy, in which the organization continually focuses on new products and markets with multiple technologies, is best used in an environment that is dynamic and growing with considerable uncertainty and risk. Human resource managers in prospector organizations may prefer to recruit and retain entrepreneurial employees who are flexible and dedicated to their craft or profession, rather than to the organization itself. The analyzer strategy falls between the prospector and defender strategies. The analyzer firm is most likely in a relatively stable environment with a moderate degree of uncertainty and risk. The organization will try to identify and take advantage of new markets and products while maintaining a nucleus of traditional core products and services. Human resource managers in analyzer firms may seek to recruit and retain employees who are moderately entrepreneurial and flexible while also dedicated and loyal to the firm. The reactor strategy is more of a strategic failure than a strategy, represented by a firm that ignores its environment or attempts to react to it inappropriately. Human resource managers in reactor organizations may lack a clear understanding of what qualities they should seek in their employees; this may contribute to such companies’ poor performance. Three competitive strategies also exist at the business level. Under a differentiation strategy, the organization attempts to develop an image or reputation for its product or service that sets it apart from the competition. Human resource managers contribute to the success of a differentiation strategy by recruiting and retaining employees who can perform high-quality work and/or exemplary customer service. Employee training may focus on quality improvement, and reward systems based on quality of work or customer satisfaction. A cost leadership strategy focuses on minimizing costs so that the firm can charge the lowest possible prices for its products, thus generating a higher overall level of revenue. Human resource contributions focus on recruiting and retaining employees who work as efficiently and productively as possible. They may also reengineer jobs to require minimal skills. Reward systems may be based more on quantity than quality of output. Production may be moved to countries with lower labor costs, creating global human resource challenges. Under a focus strategy, an organization tries to target a specific segment of the market for its products or services. Segments may be determined by geography, ethnicity, gender, or some other factor. The organization may be either a differentiator or a cost leader. The key human resource goal in this case is recruiting and retaining employees who understand the local market. 5. What are the advantages and disadvantages for an individual who accepts a job as a human resource manager in a firm that is in the midst of a retrenchment corporate strategy? A reactor business strategy? Within a retrenchment corporate strategy or a reactor business strategy, advantages and disadvantages will be similar. In both situations, the organization is experiencing poor performance and is likely in a period of refocusing, downsizing/rightsizing, and re-evaluation of core competencies. Advantages for a new human resource manager may include: Ability to take an outsider’s perspective (i.e., not so committed to established organizational routine), so ideas may be fresh and innovative Opportunity to make an impact during turnaround Demonstration of expertise Opportunity to help identify the organization’s core competencies, especially in the human resource base, to help decide which operations should continue and which should be eliminated. Opportunity to work with other functional managers in redirecting organizational operations Disadvantages may include: Risk of position being eliminated Stress associated with having to terminate employees Potential of being disregarded as a newcomer or outsider Risk of damaging existing psychological contract with remaining employees due to involvement in downsizing activities Inability to make an impact because human resource management is not legitimized as a strategic partner in the organization Inability to make an impact because of poor environmental scanning by the organization 6. If you were hired as a human resource manager in a large firm in which the human resource function was poorly integrated with other functional areas, what steps would you take to improve this integration? To better integrate the human resource function with other functional areas, various steps could be taken. The manager could begin by examining the organization’s structure and how human resources are currently utilized within that structure. Additionally, he or she would need to have an understanding of the strategies being followed by the organization and how human resources might provide support for these strategies. It may be helpful to meet with top management to begin building rapport and to start a dialogue about human resource management’s role in organizational strategy. One could lobby for a top human resource manager to be included on the top management team. The manager could also meet with various functional managers from other areas to offer help from the human resource department. One could also examine the organization’s human capital (i.e., employees) in terms of whether they have the necessary capabilities to support the organizational strategy. Another possibility is to conduct a cost-benefit analysis or utility analysis of current human resource activities to demonstrate the value of human resource management to top managers. One could also consider working with other functional managers on job redesign, redesign of recruitment and selection processes, training issues, or other human resource activities to best fit their functional needs. 7. Explain how organization design, culture, and unionization issues are related to human resource management. Organization design refers to the framework of jobs, positions, groups of positions, and reporting relationships among positions within an organization. The design of the organization will dictate the design of the human resource department as well. Simple functional designs may only require a central human resource department that coordinates all human resource activities. More complex designs such as conglomerate or divisional will typically require separate human resource departments at the business unit level with a corporate human resource office overseeing and coordinating them. A horizontal corporation will actually diffuse many human resource management responsibilities to operating managers, with a smaller human resource staff playing the role of consultant and providing basic services. An organization’s culture is its set of values that help members understand what the organization stands for, how it does things, and what it considers important. The human resource department is often involved in teaching employees about the organization’s culture, which is important in shaping employee behaviors. Culture also strongly affects how an organization manages its human resources (i.e., to what extent it demonstrates that it values its employees as a strategic asset), and also how easily it can attract and retain the most qualified employees who best fit with the firm’s culture. Unionization and collective bargaining issues (i.e., labor relations) play an important role in many industries in shaping human resource policy and programs through negotiation processes. Labor relations and unionization can have negative consequences if labor-management relations are poor or can be a source of competitive advantage where the relationship is strong. 8. How does the firm’s human resource strategy interact with other functional strategies and the strategic leadership of top management to affect organizational effectiveness? The new view of the human resource manager is that the human resource manager’s job is to help operating managers achieve their strategic goals, by serving as a center of expertise for all employment-related activities and issues. An organization must adopt human resource practices that are consistent with its strategic goals and mission. Human resource managers must work closely with functional managers to understand their needs. Human resource managers must then design appropriate human resource activities so that employees will have the necessary skills and expertise, as well as the motivation, to work toward strategic goals. The influence of the top management team in shaping organizational strategy is pervasive. Therefore, human resource managers must also work closely with the top management team to design the appropriate human resource activities to support top management’s vision. Organizational competitiveness will suffer without coordination of human resource strategy with the firm’s strategic goals. 9. Why is it important for all managers to understand behavioral forces in organizations? Why might it be especially important for human resource managers to understand these forces? All managers need to understand the actions of those with whom they work. Individual processes such as psychological contracts, personality traits, employee attitudes, motivation, and stress will impact every employee’s behaviors and subsequent on-the-job performance. Interpersonal processes including group behavior, leadership, and communication will also have an effect on behavior and performance. In order to achieve the organization’s strategic goals, employees must be committed and motivated to make contributions to organizational effectiveness. Behavioral processes play a major role in determining the relative effectiveness of various human resource functions such as compensation, rewards, performance appraisal, training, and development. Human resource managers are often responsible for developing and implementing programs aimed at improving behavioral processes. 10. What are the two primary reasons many businesses today are interested in evaluating the effectiveness of their human resource management function? Companies tend to be highly interested in the costs and benefits of human resource management operations, especially when decisions about whether to outsource different HR functions need to be made. In addition, costs and benefits must be examined to determine if certain practices provide a competitive advantage to the organization. Ethical Dilemmas in HR Management Scenario Summary Students are asked to assume they are project managers in the human resource department for a large manufacturing business. As part of a strategy calling for related diversification, the firm has recently announced a merger with one of its largest competitors. The firm will be controlling 56 percent of the new enterprise. Students are to develop plans for merging the two human resource departments, which will involve layoffs. Officially, instructions are to retain the best people, while unofficially the boss would like employees of the controlling firm to receive preference. Questions 1. What are the ethical issues in this situation? The primary ethical issue is whether to give preference to employees in the human resource department of the dominant business when deciding whom to lay off and whom to retain. On the one hand, retention of the best employees regardless of affiliation would likely help the new merged business to achieve top performance. On the other hand, the human resource project manager may find it necessary to follow the unofficial instructions of the boss in order to remain employed by the organization. The manager may also find this option preferable, as he or she will likely have personal relationships with coworkers. 2. What criteria might you find it necessary to use in making your decisions? Criteria should be performance related (i.e., work related) in order to make the best business decisions. Seniority could also be considered. Employees with critical expertise could be retained. Employees with redundant skills have to be let go. 3. What are your personal feelings about how to prioritize individual employees in a situation like this? In situations where prioritizing individual employees is necessary, I believe it's important to consider several factors. First and foremost, ensuring the health and safety of all employees should be the top priority. This includes providing necessary support and resources to those who may be affected by the situation. Secondly, it's important to consider the impact on the overall team and organization. Balancing the needs of the individual with the needs of the team and organization is crucial for maintaining a productive and positive work environment. Additionally, fairness and transparency are key. It's important to communicate clearly with employees about the reasons behind any decisions and to ensure that the process for prioritizing individuals is fair and consistent. Ultimately, each situation is unique and requires careful consideration of all factors involved. Flexibility, empathy, and a focus on finding solutions that benefit both the individual and the organization are key principles to keep in mind. Assignment Purpose: The purpose of this exercise is to appreciate the strategic links between human resources, corporate, business, and other functional strategies. Step 1 (5 minutes): Divide the class into groups of 4 to 5. Students are then asked to read the introductory scenario (either aloud or in groups) and develop brief overview answers to the various questions as they are posed. Step 2 (5 to 10 minutes): Identify 3 fundamental human resource strategy issues, challenges, and opportunities facing the firm immediately. Step 3 (5 to 10 minutes): Fast-forward 5 years: Their firm’s turnaround has been successful. Their firm has increased its market share to more than $40 million, and the workforce has been trimmed. The situation looks bright, but it is too soon to launch a diversification effort. Groups should identify 3 fundamental human resource strategy issues, challenges, and opportunities facing the firm now. Step 4 (5 to 10 minutes): Fast-forward another 5 years: The firm has continued to prosper and has just launched a diversification program. The core business now has almost 25% of the home-appliance business, sales are approaching $750 million, and the workforce has grown to almost 20,000 employees. As first steps in diversification, the firm has bought another firm that makes home-electronics products and is starting its own small appliances business. Identify 3 fundamental human resource strategy issues, challenges, and opportunities facing the firm now. Step 5 (5 to 10 minutes): Fast-forward another 5 years: The firm has continued to prosper and now sees itself as mature, diversified home-products company. The company now owns businesses that make telephones and related communication equipment, cable-related television operations, and related automotive accessories. The management team believes that the firm has entered a period of stability. Little new growth is foreseen, and the company wants to maintain its status quo for a few years. Identify 3 fundamental human resource strategy issues, challenges, and opportunities facing the firm now. Chapter 5 Information for Making Human Resource Decisions Closing Case: Low Pay for Hazardous Work Case Summary Business magazines and newspapers regularly publish articles about the changing nature of work in the United States and about how many jobs are being changed. Indeed, because so much has been made of the shift toward service-sector and professional jobs, many people might assume that the number of unpleasant and undesirable jobs has declined. In fact, nothing could be further from the truth. While many Americans work in gleaming air-conditioned facilities, millions of others work in dirty, grimy, unsafe settings. Consider the jobs in a chicken-processing facility. Much like a manufacturing assembly line, a chicken-processing facility is organized around a moving conveyor system. Even the titles of the jobs are unsavory. The work is obviously distasteful, and the pace of the work is unrelenting. In some plants, taking an unauthorized bathroom break can result in suspension without pay. Besides being unpleasant and dirty, many jobs in a chicken-processing plant are dangerous and unhealthy. And the work space itself is so tight that the workers often cut themselves—and sometimes their coworkers—with the knives, scissors, and other instruments they use to perform their jobs. Jobs such as these in the chicken-processing facility are actually becoming increasingly common. Case Questions 1. How relevant are the concepts of competencies to the jobs in a chicken-processing plant? If the competencies under consideration are things like problem-solving ability or skill in communicating, they are probably not very relevant. However, if the competencies include items such as the ability to withstand noise and confusion, the ability to perform a motion efficiently and repetitively for an extended period of time, and so on, they might be very relevant. 2. What information sources would be of most significance regarding jobs in a chicken-processing plant? The most noteworthy sources of information about jobs performed in a chicken-processing plant would be employees currently working in the jobs. The employees’ supervisors would also be able to provide valuable information about the positions. Information could be collected through observation, surveys, and interviews. 3. Are dirty, dangerous, and unpleasant jobs an inevitable part of any economy? Students will admit that certain jobs must be performed in any economy or any society, and that some of them have undesirable characteristics. For example, someone must clean, someone must dispose of garbage, someone must process sewage, someone must slaughter animals, and so on. In a very utopian society, perhaps each of these tasks could be performed on such a small, local scale that the unpleasantness would be spread around to many individuals and thus minimized. However, in a specialized and urban society, some people work full-time in very undesirable jobs. The best that we can hope for realistically is to make those jobs less undesirable through the use of job design, technology, and so on; at a minimum, some people can compensate those individuals for taking on some of society’s most unpleasant tasks. The following items appear on the in-text Instructor Prep Cards. These notes and suggested talking points should help instructors conduct these exercises with the students. Discussion Questions 1. Describe the essential elements of forecasting the supply of and demand for human resources. When forecasting the supply of human resources, a company can use the internal records found in the human resource management system, track the labor market trends, utilize various mathematical models, and perform a succession assessment for executive positions. When forecasting the demand for personnel, a company’s strategy must be referenced and evaluated and an assessment of economic patterns made. 2. Summarize the basic implications for human resource decisions of three different strategies. Implementing a growth strategy usually requires a company to hire more personnel as the firm grows, and these individuals can be difficult to locate at times. Implementing a stability strategy is a far simpler approach because not many changes are needed; however, as people leave the firm, some recruiting will be necessary. Implementing a reduction strategy is a highly challenging approach because the numbers of employees must be lowered with employee attrition, early individual retirements, and/or layoffs. 3. What are the basic economic conditions that are especially relevant to human resource managers? The economy impacts the workforce by influencing the decisions that potential employees make about labor markets and work. The rate of unemployment can influence employment-related decisions. If unemployment is high, people often choose to stay in their current positions and are less likely to look for other opportunities for work. If unemployment is low, people may try to find better work opportunities. Market wage rates will also impact the decision to look for work, with high wages attracting greater interest on the part of potential employees. Pay and wage differences reflect the cost of living, but these differences are also based on labor market competitiveness. Some employers pay above-market wages. Individuals can make investments in human capital that make them make marketable when looking for jobs. Such investments will often result in higher pay and can increase the likelihood that individuals will look for better work opportunities. 4. List the steps in job analysis. The first step is determining the organization’s precise information needs, depending on both the intended purposes of the job analysis information and the various constraints such as time and budget limitations. The second step is to determine how to collect the information i.e. selecting the method by which job analysis information will be collected. The third step is determining who is responsible for collecting the information, that is, for actually conducting the job analysis. 5. Compare and contrast job descriptions and job specifications. A job description lists the tasks, duties, and responsibilities that a particular job entails. A job specification focuses more on the individual who will perform the job, including the knowledge, skills, abilities, and other characteristics that the individual must have in order to perform the job. In brief, the job description focuses on the job while the job specification focuses on the person holding the job. 6. Compare and contrast the major techniques that organizations use for job analysis. Narrative job analysis is the most common approach, in which one or more SMEs prepare a written narrative, or text description, of the job. These narratives are typically specific to the job, making it difficult to compare one job to another. This method does not require a great deal of training to complete. The Fleishman job analysis system relies on a taxonomy of fifty-two abilities that presumably represents all the dimensions relevant to work. These abilities are presumed to reflect cognitive, psychomotor, and sensory abilities. Scales consist of descriptions of each ability, followed by a behavioral benchmark example of different levels of the ability on a seven-point scale. Experts indicate the level that best represents the level of ability required for a particular job. This complex method requires training of the job analysts. The task analysis inventory refers to a family of job analysis methods that focus on analyzing all the tasks performed in the focal job. SMEs generate a list of tasks performed in a job, and the job analyst subsequently evaluates each task on dimensions such as time spent, frequency, relative importance, relative difficulty, and time necessary to learn the task. Task inventories require time and effort to develop, but they are relatively easy to use once developed. Information is very useful for establishing the KSA requirements and training needs of employees. It is difficult to make comparisons across job families. In functional job analysis, all jobs can be described in terms of their level of involvement with people, data, and things. An exact definition of each term is provided to the job analyst, who judges the level of involvement. This method is not widely used in private industry. It does represent the first attempt to develop a single instrument that can describe all jobs in common terms. The Position Analysis Questionnaire (PAQ) is a standardized job analysis instrument consisting of 194 items reflecting work behavior, working conditions, or job characteristics that apply to a wide variety of jobs. The six sections of the PAQ are information inputs, mental processes, work output, relationships with other people, job context, and other characteristics. The analyst rates each item on six scales: extent of use, amount of time, importance of the job, possibility of occurrence, applicability, and special code. The PAQ focuses on what a worker does on the job, rather than on what gets done. Its length allows a much richer picture of what happens on the job, and a considerable database from past use attests to its reliability and validity. It is relatively complex, however, and requires a college-graduate reading level to complete. The critical incidents approach focuses on examples of effective or ineffective performance and the behaviors that distinguish between effective and ineffective performers. It is most widely used in connection with the development of appraisal instruments. 7. Can all jobs be analyzed? Why or why not? All jobs can be analyzed to some extent. However, some jobs are easier to analyze than others. Simple jobs or jobs requiring observable behaviors such as mechanical skills are much easier to analyze, because their components can be readily observed and recorded. Knowledge jobs, on the other hand, do not have easily observed components, so it is much more difficult to identify the tasks of the job as well as the knowledge, skills, and abilities necessary to carry them out. In addition, many jobs today are becoming much more flexible, meaning that their content is not specific. The employee is instead expected to change tasks as needed. A job with flexible content would be extremely difficult to analyze with any precision. However, to some extent all jobs have defined content that may be analyzed. The specificity of the content may vary, but job analysts will be able to generally define the tasks, duties, and responsibilities that an employee should carry out in his or her position. 8. Are there circumstances when managers might choose not to have job descriptions or job specifications? Managers may choose not to have job descriptions or job specifications for some jobs, but it is probably not a good idea. Jobs that have flexible tasks, duties, and responsibilities, for instance, may be difficult to analyze. Managers may feel that developing specific descriptions and specifications may limit flexibility by defining what is involved while excluding other unforeseen tasks that may be needed in the future. However, to some extent every job has definitive content that can be described and analyzed to some extent. Jobs that are not analyzed and given a description and specification may not be filled optimally, because management will not know the particular knowledge, skills, and abilities that they need to look for when filling the position. Therefore, the recruitment and selection process may not be adequately designed, and the ultimate hiring decision could be less than optimal. 9. Distinguish between job behaviors and job competencies. Job behaviors describe the actions that workers will take as they fulfill their jobs. Job behaviors would include items such as preparing reports, welding, or administering medication. Job behaviors would be an important part of a job description, which lists the tasks, duties, and responsibilities for a particular job. Job competencies, in contrast, describe broad or deep abilities or characteristics that workers should possess in order to successfully fulfill a job’s requirements. Job competencies might include a tolerance for ambiguity, creativity, or a talent for resolving conflicts. Job competencies would be included in the job specification, which indicates the characteristics that an individual must have to be able to perform the job. Behaviors focus on the job itself. Workers who can perform job behaviors should be successful in that particular job. Competencies focus on the worker. Workers who possess competencies should be successful in the wide variety of jobs that call on those competencies. 10. Summarize the basic legal issues related to job analysis. Most of the federal regulations governing human resource management practices require that any action undertaken by an organization must be for job-related reasons. That is, employees can only be hired, promoted, compensated, and terminated for reasons related to their job performance, not for any personal characteristics, such as race, gender, age, disability status, and so on. Thus appropriate job analysis and design is absolutely fundamental to avoiding charges of discrimination or disparate impact because the job analysis and description establish the job-related behaviors and requirements. For example, an applicant can be legally terminated for being unable or unwilling to lift heavy equipment, only if lifting heavy equipment was listed in the job analysis and description. Job analysis also affects the determination of essential functions, which is very important in compliance with the ADA. Careful job analysis can uncover even subtle forms of discrimination, for example, in which jobs traditionally held by women are paid less than jobs traditionally held by men, although the duties and responsibilities may be about equal. Ethical Dilemmas in HR Management Scenario Summary The student is to assume that he or she is a plant manager for a manufacturing company. For years, the firm’s low-wage workers have complained about their pay and general working conditions. They have presented the plant manager with a list of demands and have signed a petition supporting their demands as well as threatened to quit if their demands are not met. The plant manager knows the following: Another low-wage manufacturer in the area is about to close down The corporation that owns the manufacturing company is about to implement a reduction strategy General employment rates are also growing The plant manager has two choices. One is to meet with all of the workers, inform them of the things that he or she knows, and advise them to back off their demands. The other choice is to do nothing and see what happens. This may result in some (but not all) of the workers quitting. Questions 1. What are the ethical issues in this situation? This situation asks the students to examine the tradeoffs that must be made by a firm as it considers the demands of its low-wage workers. The workers would clearly prefer jobs that paid higher wages and had better working conditions. The firm’s position is less clear. On one hand, if the plant manager advises the low-wage workers to back off their demands and provide its reasons for doing so, then the employees might understand and back off their demands rather than risk losing their jobs. On the other hand, if the plant manager does nothing, then he or she is hiding information that the workers have every right to know. It would be unethical on the part of the plant manager to keep any information pertaining to their demands from them. 2. What are the basic arguments for each course of action? On the one hand, if the plant manager does nothing then workers may leave due to dissatisfaction and this will also lead to the workers having negative feelings toward the company. On the other hand, if the plant manager informs the workers of the information he or she knows and advise them to back off their demands, the workers might be unhappy at first. But, they would be happy to oblige with the plant manager and secure their jobs rather than be uncertain about their jobs. This will also boost the morale and commitment of the workers toward the firm. 3. What do you think most managers would do? What would you do? Most managers would likely approach the situation by first assessing the needs and priorities of the organization as a whole. They would then consider the individual employees' circumstances and needs, weighing them against the overall goals and objectives of the team and organization. Managers would likely seek input from HR and other relevant departments to ensure that any decisions made are in compliance with company policies and legal requirements. They would also strive to communicate openly and transparently with employees to explain the reasoning behind any decisions and to offer support and assistance where possible. As for me, I would approach the situation with a similar mindset. I would prioritize the health and safety of all employees while also considering the needs of the team and organization. I would seek input from relevant stakeholders and strive to make decisions that are fair, transparent, and in the best interests of everyone involved. Flexibility, empathy, and clear communication would guide my actions in managing such a situation. Assignment Purpose: The purpose of this exercise is to provide students with insights into the processes associated with job analysis. Step 1 (5 minutes): Instructors should divide the class into small groups of four or five members each. Step 2 (5 minutes): Each group should select a job with which its group members have some familiarity. Examples might be a cook at McDonald’s, a retail clerk at The Gap, or a similar job. Step 3 (5 to 10 minutes): Based on the group members’ understanding of the job, they should outline how they would conduct a job analysis for that job. Step 4 (10 to 20 minutes): Student groups will then draft a job description and a job specification that they think represents their chosen job. Step 5 (10 to 20 minutes): Student groups should then assume that they are managers in the company they chose for job analysis. They have to develop planning scenarios for growth, stability, and reductions in their workforce. Solution Manual for Human Resources Angelo Denisi, Ricky Griffin 9781285867571
