This Document Contains Chapters 9 to 17 Chapter 9: Talent Management Sample Answers to Discussion Questions 1. Why is it important to establish the meaning of talent and talent management in a particular organizational setting? The field of TM brings with it a new perspective that unifies recruiting, hiring, training, promoting, and retaining talented individuals who can contribute to the overall growth and competitive advantage of a company. Just matching individual skills to specific job requirements is insufficient; TM requires an HRM plan that is a comprehensive program of using and developing the person’s knowledge, skills, and abilities. Thus, the particular setting will alter the HRM plan based on the company’s strategy. 2. How does the strategic direction of the organization influence human resource planning activities? HRP begins with the identification of the strategic goals of the company and of how an HRP program can assist in achieving the effective use of the human capital of the company. Thus, the strategic goals will drive the need for employees, either positive or negative. 3. Given the different needs of the HRP process discussed in this chapter, what types of data would you expect the HRIS data warehouse to contain? The data warehouse should have the following data: 1. The forecasted need for employees based on the strategic objective 2. The knowledge, skills, and abilities (KSA) required in the forecasted jobs 3. Number of employees needed for growth or decline 4. Required competencies and behaviors of these employees 5. Required levels of productivity expected from these employees 6. Employee annual turnover by job category 7. The potential availability of new employees by experience and skills in the company’s geographic labor market 8. The historic movement of employees within the company by job—for example, the number of promotions and lateral transfers of employees between jobs 4. What would be the most effective “bundles” of metrics for talent management? The metrics from both the performance management and the TM programs could be entered on the balanced scorecard, which, in turn, contributes to the strategic HRM function. The three phases of the HRP program will generate HR metrics that are useful for the organization for strategic management. 5. How would one justify the purchase of software for an HRP program? By the resulting number of available people working in the proper jobs at the appropriate time so that the organization maximizes its productive capacity. Fulfilling this goal means that future employee needs are forecasted accurately based on annual employee turnover and expected strategic directions. Thus, there would be better, more targeted recruiting and a focus on employee turnover—two costly parts of the total HRM function. 6. Discuss the pros and cons of using social networks to recruit top talent. Social networking using the Web has become popular with recruiters and potential applicants. These social networks (e. g. , Facebook, LinkedIn, and Plaxo) are just media to increase the flow of information for making social connections. Using social networks to recruit top talent can be effective, but there are some limitations. Social network demography indicates that social networks are primarily used by a younger audience. Therefore, recruiters have to be aware of the difficulty of matching potential applicants to the required skills. Recruiters searching for top talent also must be aware of their own company’s website and ask themselves if it has enough information for applicants to be interested in envisioning working for the company. 7. What are some potential disadvantages of using a packaged application to help automate the employee goal-setting process? The software package speeds up the task of setting goals, and it helps define how to measure results and provide feedback to the employee. Subjectivity, however, will never be removed from any manager–employee relationship or from any performance review, but HRIS package tools provide a basis from which to monitor performance results that are recorded throughout the course of the performance measurement cycle. 8. How would you use workforce analytics to support talent programs such as recruiting, retention, and employee development? Using workforce analytics to manage talent can involve asking many questions about an individual person or a group of employees. The real purpose of analytics for talent management is to use the analytics to model, in terms of skills and abilities of employees who were successful in the company, against a pool of existing employees or new potential hires to determine their possibility of success in the organization. 9. Why is it important to have an adaptable workforce in a global economy? A major aspect of a successful TM strategy, short or long, is to have an adaptable workforce. The change from a long-term TM strategy or vice versus will be greatly facilitated by having an adaptable workforce. 10. Discuss the underlying attributes necessary to support high achievers. The following attributes are necessary for high achievers: 1. Ability to communicate with others using multiple media 2. Drive or motivation 3. Ability and willingness to listen to the ideas of others 4. Problem-solving skills 5. Imagination 11. How might the attributes of a highly motivated employee change for different job descriptions? Each job has specific KSA requirements for effective performance. If the employee changes jobs, he or she may not possess the appropriate KSAs for effective performance, and thus, that will dampen the individual’s motivation. 12. Discuss corporate tactics that can be used in a down economy to keep top talent. There needs to be both a long-term talent management strategy and a short-term tactical strategy since the dynamics in the marketplace can change easily. In the long term, organizations need to invest now in employee talent to sustain a competitive advantage over time. When a new competitor enters the market with a substitute product or when the economy goes sour, investment in human capital may be suspended for a short period of time. Then, short-term tactics must be put in place to get past the economic downturn and keep employees motivated until the market improves. 13. Discuss how you would use information systems (IS) to support succession planning. An information system would have the KSAs of all employees, their job performance, and their job histories. By some simple sorting of this information, the sorts could be used to find individuals who have a high potential for promotion. These individuals could then be trained to move to the next higher position. Using this information for all employees would constitute an automated succession planning program. Chapter 10: Recruitment and Selection in an Internet Context Sample Answers to Discussion Questions 1. What recruiting objectives are being met through the use of online recruitment? Students should be able to identify various recruiting objectives discussed in this chapter and discuss some of the research findings for each recruiting objective: (a) cost, (b) speed of filling job vacancies, (c) psychological contract fulfillment, (d) satisfaction and retention rates, (e) quality and quantity of applicants, and (f) diversity of applicants. 1. Broader Reach: Expands the pool of potential candidates by accessing a global audience. 2. Cost Efficiency: Reduces costs associated with traditional recruitment methods like print advertising and agency fees. 3. Speed and Efficiency: Accelerates the recruitment process through automated screening tools and faster application tracking. 4. Enhanced Targeting: Allows for more precise targeting of job postings based on skills, experience, and location. 2. What are some of the advantages and disadvantages of using online recruitment? It is recommended that this question be utilized to help facilitate class discussion. Go through all of the recruiting objectives mentioned in Question 1 (above), and discuss how online recruiting may positively or negatively impact each objective. This will help students understand that online recruiting can be both help and hinder recruiting efforts. 3. Should organizations rely solely on recruiting through the Internet? Why, or why not? It is important that students understand that online recruiting should not be the only method utilized by an organization to recruit new employees. Organizations may suffer from lack of diversity and potential legal issues as a result of solely relying on recruiting through the Internet. Employers should consider the position they are attempting to fill when deciding whether or not to utilize online recruiting. Additionally, employers may want to consider using online recruitment in conjunction with other recruitment sources (e. g. newspaper ads and job fairs) to ensure their recruitment methods are fair. 4. What are some of the technological issues that arise through the use of technology in the function of selection? Students should be able to discuss some of the technological issues related to the use of technology in the function of selection. Measurement properties of paper-and-pencil assessment and the computer version were discussed. There is clear evidence that the mode of administration (paper versus computerized) matters for ability tests that are speeded. The more speeded a test is, the more likely there will be differences between the paper and computer results. A second issue focused on the trade-off of fidelity and bandwidth. Technology has enabled organizations to create work sample simulations that represent the job with high fidelity. However if the company then wants to use the simulation for a different business unit or job, the details that made the simulation highly appropriate in the first setting may interfere with its use in the other setting. In general, HRIS managers should keep in mind that, depending on the effort and expense one is willing to expend on assessment development and installation, lower-fidelity simulations and/or combinations of other types of assessments might be preferable. The final issues dealt with un-proctored testing which can offer convenience to both the applicant and organization but how this gives way to a floodgate of concerns, such as candidate identity, test security and cheating, and fair access to testing by minorities. 1. Data Security: Risks related to protecting sensitive candidate information from breaches and unauthorized access. 2. System Integration: Challenges in integrating various recruitment technologies with existing HR systems. 3. Bias in Algorithms: Potential for automated tools to perpetuate or introduce biases if not properly calibrated. 4. Technical Glitches: Problems such as system downtimes or errors that can disrupt the application and selection process. 5. Describe how the use of technology in the selection process is adding value to organizations. It is suggested that students break up into small groups and discuss how the use of technology in the selection process is adding value to organizations for 15–20 minutes. After group discussion takes place, it is suggested that the groups share their responses with the rest of the class. One way the use of technology in the selection process can add value to the organization is by enabling organizations to create work sample simulations that represent the job with high fidelity. However, if the company then wants to use the simulation for a different business unit or job, the details that made the simulation highly appropriate in the first setting may interfere with its use in the other setting. Chapter 11: Training and Development: Issues and HRIS Applications Sample Answers to Discussion Questions 1. What is the systems model of T&D? Discuss how HRIS T&D applications can assist in carrying out the steps in the systems model. One of the most frequently cited models is the systems or systematic approach. This formal or planned approach to workforce T&D consists of four interrelated and connected steps. The steps are arranged as a cycle to highlight the cyclical and continuous nature of the process in much the same way as employee development is an ongoing activity. The four steps are as follows: 1. Identifying T&D needs. The first step of the systems model is concerned with the identification of the learning and development needs of organizational members. The training needs analysis (TNA) is the key activity of the systematic approach and essentially serves to identify any discrepancies, the T&D “gap,” between existing KSA and those required in the present and in the future. • Because of the crucial importance and comprehensive nature of the TNA, many organizations employ a HRIS to collect, store, and analyze training needs data, thus ensuring that resulting information is both timely and accurate. Data sources range from business objectives and statistics, at the organizational level, to job descriptions and output levels, at the job level, to staff appraisals, biographical data, and individual training records, at the personal level. 2. Developing T&D initiatives. The second stage of the cycle focuses on the development of T&D initiatives, objectives, and methods, which should be capable of meeting the three levels of needs identified during the first phase, the TNA. • The aim of the HRIS in this context is to compare employee training data with subsequent performance data. Successful learning events must achieve a best fit between: the content of what is to be learned, the media through which content is delivered, and the method used to facilitate learning. 3. T&D. The third stage of the systems model of T&D involves the implementation of training. • To ensure that the implementation phase runs smoothly, organizations ought to formulate an implementation plan, which should specify the following: the resources required, how training should be carried out, who should facilitate training, and the period within which training should occur. 4. Evaluating T&D. In order to assess whether a particular training initiative, method or solution has met the training needs and objectives of the firm and whether transfer of learning has taken place, organizations must evaluate their T&D efforts. • An HRIS can be invaluable in supporting this process as it contains a vast amount of data relating to training and performance, which can form the basis of any T&D decision-making. 2. Explain synchronous and asynchronous communication in relation to e-learning. E-learning is an umbrella term and broadly refers to any learning facilitated using electronic means. E-learning can capitalize on a variety of delivery media, depending on the approach taken. Collaboration and communication during an e-learning experience may be synchronous or asynchronous. The former refers to real-time or live communication using tools such as messenger services or video conferencing. These virtual classrooms operate in much the same way as traditional classrooms would. However, not all collaboration can occur in real time, especially if learners are geographically dispersed across different time zones. While asynchronous communication still makes use of the Internet, communication is delayed, and learners access the learning spaces at their own convenience. 3. What are the advantages and disadvantages of e-learning? Although e-learning methods diverge on a number of levels—for instance, the level of interaction between learners—a range of advantages and disadvantages of e-learning, in general, to the learner and to the organization can be identified. The key advantage of e-learning is flexibility—that is, it affords learners with the choice over what, when, where, and how much is learned. The key disadvantages center on the lack of human contact and technological issues. 4. How can HRIS T&D applications help firms foster organizational learning? It is suggested to utilize this question as a group discussion question. Break up the class into small groups. Divide up the applications highlighted in Table 13. 9 among the groups. Give the groups approximately 5 minutes per application to discuss how the application may help firms foster organizational learning. Once group discussion has taken place, ask groups to share their responses. 5. Explain how organizations should choose appropriate T&D methods. Organizations have a wide array of T&D methods at their disposal, and advances in and access to ICT and mobile technologies will further increase the number of methods and ways of content delivery available. Faced with an apparent overabundance of methods, how should organizations choose the ones most appropriate for their needs?A number of criteria will guide the decision-making process. The effectiveness of individual learning plans and events ultimately hinges on the design of these T&D interventions. A learning activity can be considered successful if it leads to transfer of learning, as well as a noticeable and permanent change in behavior in the trainees. The aim of the HRIS in this context is to compare employee training data with subsequent performance data. Successful learning events must achieve a best fit between the following: the content of what is to be learned, the media through which content is delivered, and the method used to facilitate learning. 6. What is transfer of training? What role does transfer of learning play in e-learning? Training transfer can be described as a positive and long-lasting change in employee behavior and, ultimately, increased shareholder value can only be attained if training (or learning) transfer occurs. Training transfer is the continuous application of KSA acquired during the training exercise. Students should understand that transfer of training plays a crucial role in e-learning, as well as in any successful training program. 7. Explain the issues involved in establishing ROI for T&D initiatives. What role do HRIS T&D applications play in establishing ROI? Return on investment on training is a financial measure of the total benefits (anything that adds directly or indirectly to the bottom line of the organization as a result of training), compared to the total costs of training, including direct and indirect costs. Direct costs involve any costs directly related with training (e. g. ,trainer’s or instructor’s fees, equipment and facility rental, or production and purchase of training materials). Indirect costs are not directly associated with the delivery of training (e. g. administrative support or office supplies)(Noe, 2002). ROI is generally expressed as a percentage of the total benefits less total costs over the total costs and is usually determined by the following formula: ((totalbenefits-totalcosts))/(total costs)*100=ROI While can be difficult to ascertain the costs involved in training, the task of establishing financial benefits can be even more onerous. Moreover, ROI analyses provide no insights into how to improve business results in the future(Conner, 2002). Russ-Eft and Pre-skill (2005) highlight three critical factors in human resource development evaluation, which complicate the assessment of training outcomes: 1. Evaluation occurs within a complex, dynamic, and variable environment. 2. Evaluation is essentially a political activity. 3. Evaluation ought to be purposeful, planned, and systematic. It is possible to enter basic values into a spreadsheet application to calculate the ratios. However, the variety of possible outcomes from training, the variety of factors that affect these outcomes, and the variety of data to be collected to produce any meaningful results appear to make the evaluation process a rather tedious task that would be next to impossible to complete efficiently and effectively without the help of a computerized system. Most commercial HRIS can be customized to record, analyze and report on the training metrics that have been identified by a firm. For instance, the system could be configured to collect information on the monetary benefits of T&D projects, such as increased production output or a reduced number of complaints, and compare this information with data collected on the costs of T&D projects. T&D data will usually be stored in the T&D module of the HRIS. In addition, a broad range of dedicated T&D systems is commercially available. The following section will discuss the data elements and various HRIS applications used in the training function. 8. Outline how standard desktop applications, such as spreadsheet or database, can be used to set up a basic T&D system. Elementary HRIS training databases are easily set up using commercial or open-source desktop software. These data bases may then be used to collect, store, and analyze training related HR information. The amount of data that can be stored, the manner in which it is collected and the level of analysis possible will depend on the application used. Table 13. 8 shows the basic data elements a T&D database should contain. The first column, Data Elements, shows the main categories of data elements, while Subcategory 1 and Subcategory 2 provide examples of the type of information these data elements could include. Using these essential data elements, a spreadsheet or database may be created. This basic database contains relevant training information and possesses limited search and reporting capabilities. Should a firm decide to upgrade to commercial training software, data stored in a spreadsheet can be imported into most training applications. Cleary, the amount of information that can be collected and the level of analysis that a spreadsheet application permits are limited. Therefore, many organizations create bespoke databases, which offer greater possibilities regarding the collection and presentation of training data. These database applications allow users to run queries using customizable search criteria, they provide greater reporting options, and information on different screens can be linked to avoid multiple entries of data. 9. Discuss the different types of HRIS T&D applications and their reporting and decision support capabilities. The capabilities of today’s HRIS T&D applications, also called learning management software (LMS), range from training administration to training management to talent management. The uses and capabilities of LMS are shown in the Learning Management System Classification in Table 13. 9, and students should be able to identify and discuss some of the different types of capabilities highlighted in this table. 10. What issues might arise during and as a result of the implementation of an HRIS T&D application? Many HRIS T&D projects fail to meet the expectations of key decision-makers. The reasons for this are manifold. Some firms introduce new TMS only because competitors have done likewise, without having the necessary expertise to operate the system. Frequently, decision-makers have false expectations of ROI or apply training metrics that merely focus on cost savings and fail to take note of intangible gains derived from T&D (see section on Training Metrics). In other cases, the HRIS T&D application strategy is not aligned with training needs and the overall T&D, HR, and business strategies. Few organizations involve employees during the implementation stage of the HRIS, which can lead to underutilization and dissatisfaction with the system(Burbach & Dundon, 2005). For a variety of reasons (see disadvantages in Table 10. 4), many employees never actually complete e-learning programs that they are enrolled in. Sometimes, disenchantment is simply the result of poor planning and resulting incompatibility of various disjointed HR systems, albeit an increasing number of organizations purchase one or more pieces of talent management software from a single vendor to prevent these problems(Frauenheim, 2006). Chapter 12: Performance Management, Compensation, Benefits, Payroll, and the HRIS Sample Answers to Discussion Questions 1. Discuss how a manager might make sure that the performance plan for each of her direct reports was driven by organizational strategy and the business plan. How can information systems support this goal? The manager must first define what performance means in the case of a specific direct report. Ideally, this definition is based on a cascade of goals, beginning with the organizational strategy and operating plan, with the immediate source being what the manager is expected to accomplish during the period and ending with the direct report’s expected part of that accomplishment(Evans, 2001). The manager must then move from the general to the specific, usually expressed in terms of desired outcomes. This constitutes the performance dimensions for the direct report. Having performance criteria, performance measures, performance standards, and recent performance documentation in a single place allows managers to keep track of how each direct report is doing and what interventions need to be made to improve performance(Evans, 2001). Similarly, the direct report can view the same data and use it as a basis for deciding on areas where improvement is needed. Indeed, performance management software can be categorized as either preformatted appraisal systems, systems that allow the development of customized appraisals, or systems that diagnose performance problems(Forrer& Leibowitz, 1991, pp. 104–106). 2. Merit increases require a single “performance” number while most incentive plans have multiple and varying performance measures. How can the performance management system meet both needs? In the most common form of job evaluation, a set of factors is developed that reflect characteristics that add value to work in the specific organization (e. g. , education required). Each factor is weighted by importance, and scales are developed. Every job that will be in the base pay system is evaluated on the set of scales, and a point score is calculated. Jobs are arranged by total points, and this forms the basis for a salary structure. In a merit pay system, the size of the increase is a function of performance level and where the employee is in the range. The higher the performance, the larger is the increase. Generally, the lower the place in range, the higher the increase will be. A merit matrix is developed to provide guidelines based on performance and place in range that assures the total amount spent by the organization is no more than the specified percentage of payroll. There are many forms of short-term incentive pay. Unlike merit pay, short-term incentive pay is rarely added to base pay and must be re-earned every year. Typical short-term incentive programs include bonuses, gain sharing, goals sharing, small-group incentives, and profit sharing. With the exception of profit sharing, short-term incentive programs usually have specific measures that will drive payout set up prior to the beginning of the program. Gain sharing, for example, bases payouts on reductions in production costs due to more efficient use of labor. Specific preplanned formulas based on past production costs drive payouts. Bonus systems can be driven by preplanned criteria related to manufacturing, customer service, safety, or anything else the company wishes to motivate employees to achieve. Profit sharing is usually retrospective; the board decides after the books have closed for the fiscal year that some percentage of profits will be shared with employees. In all cases, the measures driving short-term incentive payouts must be collected, either through existing measurement systems or through special systems designed for the purpose. 3. Compensation strategy includes how competitive the organization wants to be, the number of different compensation systems the organization wants to have, the mix of various reward and benefit components, and the basis of increases. Discuss the data inflows an organization that wanted to automate the compensation design and administration processes would have to do. Compensation data inputs include internal, external, and generated data. Internal data include information about jobs (descriptions and specifications), people (performance and salary history) and organizational units (salary budget and job evaluation system). External data would include market survey data and information on rewards practices. Internal and external data would be combined and used to generate job evaluation results, salary structures, merit matrices, and a variety of rewards guidelines. Incentive programs will require input data on whatever behavior or outcome is the target of the incentive; such data might include customer survey results, accident data, time-to-market data, or product quality data. Compensation for special employee groups usually requires data specific to that group. Executive compensation is likely to require organization-wide sales, productivity, profit, share price, market share, and other financial, market, and production data indicative of organizational success. Sales compensation systems may require data on quotas, sales, bonus or commission rates, and competitive market data. Gain-sharing programs require historical averaged data on labor costs as a proportion of value of production. Bargaining unit employee pay systems require data on contract specifics. For nonexempt employees, hourly rates and hours worked per week are required. In short, there is very little data within the organization that might not be required by some part of the compensation system. 4. Both performance management and benefits information systems make provision for employee access and input. What access would you provide in each of these systems and what leeway would you provide employees in reading, entering, and changing data? Contemporary systems allow both employees and managers to enter comments and observations at any time during the review period with the option to have the system automatically sweep all those comments into the final review in a concatenated area for editing by the user. There should also be space for documentation of positive and corrective feedback. While creating an individual development plan, many systems can recommend and provide a library of development activities that can be used to correct specific problems. Employees may have to access benefits information in order to input information about enrollment and other coverage choices, changes in coverage desired, and changes in employee status (e. g. , addition of a dependent or change in marital status) that may affect coverage and employee costs. These programs may also allow employees to file claims with the organization. In these programs, many of which are Web-based, employees feed in personal data, coverage choices, and other data relevant to their use of the benefit. 5. A lot of compensation information is available to employees today on the Web (e. g. , Salary. com), and much of it is inaccurate. How can an organization assure employees they are fairly compensated (assume they are) when public data suggest otherwise? In order to assure employees they are fairly compensated, companies that market price jobs may find it helpful to share their job market information with their employees. A company that market prices jobs will collect as much market data on wages as possible. Even so, it is unlikely that market data can be found for all jobs. The market rate for these jobs must be estimated. It is common to use multiple linear regression for this purpose. As much information about all jobs is collected as possible, either using job specification data or aggregate information from job incumbents. Some specific information that might be collected from the HRIS includes the average education level of job incumbents in each job, the average amount of training incumbents in each job have had, the average number of direct reports each incumbent in a job has, and so forth. While logic may guide the choice of independent variables to use in the regression equation to predict market rates, the goal is to get the best prediction, and whatever variables end up providing the best prediction are the ones that will be used. Similarly, incentive programs may make use of any financial, market or production data to determine whether bonuses should be paid and, if so, how much and to whom. Additionally, providing employees with an annual compensation report may help assure employees they are fairly compensated. The annual compensation report shows the total amount of money spent by the organization on the employee, including money spent on wages or salary, incentive pay, and the cost of benefits paid for by the organization. 6. Flexible benefit plans are common today. Discuss ways employers can ensure that employees make good choices about the benefits and benefit levels they choose within the benefits information system itself. When organizations offer flexible benefit plans it is common to track choices made by employees to guide plan development. Web-based services can offer decision support to employees deciding what levels of coverage to sign up for. (Dawson, 1997). Employees can readily compare the cost of various levels of benefits service and more readily understand the cost–benefit trade-off they are going to make. Similarly, transferring the enrollment process to the employees themselves can save the organization money(Teer, 1997). However, such savings are not likely to occur unless the system is easy to use for all employees, not just the technologically savvy(Ashley, 2006). 7. Payroll and benefits are commonly outsourced. Discuss which parts of performance management, compensation, benefits, and payroll you would consider outsourcing, justifying your views. This is a good question for students to break up into small groups and discuss. Once groups have had time to work on this question, the groups should then share their suggestions the class. While individual groups are not likely to come up with the same answers, they should be able to grasp that the management of performance management, compensation, benefits, and payroll is not meant to be “one size fits all. ”Students should refer back to the discussion about outsourcing in Chapter 10. Students should be sure to keep in mind the benefits and demerits of outsourcing while justifying their answers Benefits • Cost savings • Performance improvements • Flexibility • Focus on core activities Demerits • Loss of control • Strategic benefits realized by very few • Loss of organisational knowledge/internal expertise • Loss of jobs – insecurity • Managing costs • Costs of mismanagement Chapter 13: HRIS and International HRM Sample Answers to Discussion Questions 1. Describe the differences between domestic and international HRM. In addition to the three different types of employees (PCNs, HCNs, and TCNs), there are also other factors that affect the complexity of IHRM. The complexity of international HR can be attributed to six factors: (1) more HR activities; (2) the need for a broader perspective; (3) more involvement in employees’ personal lives; (4) changes in emphasis as the workforce mix of expatriates and locals varies; (5) risk exposure; and (6) broader external influences. 2. What are the different types of organizational forms corporations use for international operations? International Corporation • An international corporation uses its existing core competencies to expand operations into foreign markets. These organizations compete in the global marketplace by exporting existing products and eventually opening facilities in other countries. Their corporate headquarters reside in the parent country. International corporations have foreign operations in one or more host countries. Multinational Corporation • A multinational corporation is a more complex international business operation. Multinational corporations operate as fully autonomous units in multiple countries in an attempt to capitalize on lower production and distribution costs. An example of a multinational corporation is General Motors (GM). Global Corporation • Global corporations are similar to multinational corporations; however, global corporations integrate their operations worldwide through a centralized home office. Multinational corporations produce and distribute identical products and services worldwide. Global corporations, on the other hand, emphasize flexibility and mass customization to meet differing customer needs worldwide. 3. What are the three types of employees who work in MNEs? Explain how an HCN could change to become a TCN in an MNE. 1. Home-Country Nationals. Staffing the organization with expatriates (PCNs) is advantageous because the organization can rely on the talent currently available. These employees typically have experience with the company and are therefore knowledgeable about the corporate culture, policies, and procedures. 2. Host-Country Nationals. Staffing positions with HCNs provides a number of advantages for the MNE. HCNs are less costly, in terms of both time and money. These employees do not have to be relocated to a new country. HCNs do not need language training or time to adjust to the environment and national culture. 3. Third-Country Nationals. TCNs bring a different and often broad experience to the organization. TCNs add an international outlook to the workforce. Some of these employees are multilinguistic. A host-country national (NCN) that works for a subsidiary of a MNE like GE in his or her home country could be transferred to a GE subsidiary in a new country, thus, becoming a TCN. 4. Describe the staffing process in an MNE. How does it differ from a domestic-only corporation? The complexities inherent in managing a global organization make staffing an especially important part of the IHRM system. When staffing managerial and nonmanagerial employees, the MNE needs to determine if these personnel will be selected from the home-country (expatriates), host-country, or third-country talent pool. This means the MNE must have information on the labor markets in multiple countries. In a domestic-only company, it is only necessary to have data on one labor market. 5. What are the causes of expatriate failure? In general, one could state that the major factor affecting expatriate failure is the inability to adjust to the new situation and culture by the expatriate and her or his family. In terms of specific reasons for expatriate failure, Dowling and Welch (2005) cite the Organizational Research Counselors Worldwide (2002) and the GMAC Global Relocation Services (2002) global surveys. The problems reported by expatriates and companies in these surveys were as follows: • spouse/partner dissatisfaction, • inability to adapt, • difficulties with family adjustment in the new location, • difficulties associated with different management styles, • culture and language difficulties, and • issues associated with the accompanying partner’s career development. Similarly, Briscoe and Schuler (2004) indicate that “a number of surveys and studies have found that the most important factors in the early return of expatriates lie in the inability of their families (and/or themselves) to adjust to the foreign environment” (p. 242). The clear implication of these findings is that the expatriate’s family and/or partner must be considered in the selection decision process. 6. Describe the training program for expatriates. Why is it recommended that the family of the expatriate also receive training? To assist the adjustment of the expatriate and his or her family to a new culture, predeparture training is absolutely necessary and includes training in cultural awareness, language, and practical matters regarding daily living in the new culture. Most MNEs will also include preliminary visits as a part of predeparture training. Another element in predeparture training that is highly recommended is repatriation training. Repatriation is the process that occurs as the expatriate and family return to their homeland. It is critically important that repatriation programs be established since there is a readjustment (reverse culture shock) to the home culture on return for both the family and the expatriate. There is considerable discussion in the available literature on the design and implementation of repatriation programs to be commenced on the return of the expatriate (Briscoe & Schuler, 2004; Dowling & Welch, 2005; Evans, Pucik,& Barsoux, 2002), and most companies consider repatriation as part of the career development program of the MNE. It must be emphasized, however, that the above-cited literature strongly suggests that the repatriation process should begin in the predeparture training program. Training in cultural awareness, language, and practical matters regarding daily living in the new culture constitutes the predeparture training that the expatriate and family will attend. It is important to recall that expatriate selection is a two-way street. The expatriate still has the right to decline the assignment. Thus, the predeparture training both informs and attracts, which are the two purposes of training. There are a large number of topics that can be included in predeparture training. The topics listed in Table 14. 1 make up a possible content for the predeparture program. Note that this list could change depending on the host and parent countries involved. Table 14. 1. Topics for Predeparture Training 1. Cultural values and religions 2. Websites for country information 3. Country history, recommended readings, videos, and achievements in the country 4. Classical literature describing the country’s history, its folkways, and heroes and heroines 5. Information about other HCN expatriates in the country 6. Descriptions of the educational facilities and opportunities for families 7. Current news about the country, particularly its relationship to the parent country 8. Traditional family roles of father, mother, and children 9. Locations for shopping and shopping hours 10. Dominant language of country; extent of bilingualism in country 11. Nonverbal gestures and their meanings 12. Political structure, particularly as it affects the operation of the MNE 13. Descriptions of currency, temperature variations, transportation, and hours of business 14. Sightseeing, including historic, artistic, and important cultural locations that would appeal to all of the family 7. What is the best method for completing performance appraisals for the three different types of employees in an MNE? Performance appraisal is an important process for documenting the performance of employees, determining areas for development, deciding on pay increases and promotional opportunities, and giving employees the opportunity to express their views. The inclusion of plants with a diverse employee population in multiple countries creates considerable complexity, particularly when the results of the appraisals are being used to move managers from country to country. When appraising the performance of expatriate employees, it is important to consider who should appraise their performance and what performance criteria are specific to the expatriate’s situation. The performance of employees is appraised by their supervisor. Managers of expatriates tend to base their evaluations of the person on the objective criteria used for other employees in similar positions located in the parent country. Because of these complexities, it may be most appropriate to obtain multiple ratings of the expatriate’s performance through the use of a 360-degree feedback system. It is important to evaluate the specific job-related competencies of the expatriate manager. However, the role of an expatriate is somewhat more complex in that there are non-job-related qualities they need to possess to perform their role effectively. • First, it is important that the expatriate manager possess cross-cultural interpersonal skills. • Second, it is important for expatriate managers to understand and have sensitivity to differences in norms, laws, and cultures relative to her or his home country. Appraising the performance of HCNs and TCNs is somewhat different from appraising the performance of domestic employees in the United States. It is important for PCNs to be sensitive to cultural differences in appraising performance. For example, in Japan, discussing the negative aspects of an employee’s performance may be taken as an insult. This is important since performance evaluations are used to determine pay increases and promotional decisions, training opportunities, and dismissal decisions. These appraisals can help identify individual performance problems that can be solved by training. 8. What are the objectives of an international compensation plan? The first objective for an MNE is to align its compensation administration with the strategy of the firm. Compared with the domestic firm, this alignment is much more complex for the MNE. It requires the MNE to have accurate and up-to-date labor market compensation information for all of the countries in which the MNE has a presence. The MNE’s second objective is identical but more complicated since multiple cultures are involved. There are clear differences across world cultures in terms of the other factors that motivate employee behaviors. For example, the meaningfulness of the work may be very important in some cultures, whereas the opportunity for promotion would be most important in other cultures. The final objective of compensation policy for an MNE is that it must be perceived as fair by the employees. With the mix of employees from different companies (PCNs, HCNs, and TCNs), perceived or real differences in wages or benefits between groups of employees could lead to considerable dissatisfaction among the less privileged groups and consequently affect retention of employees. 9. What are the modifications necessary for using HRIS software applications that are designed for domestic companies in an MNE? The major modifications involve the multitude of different laws and regulations regarding human capital in the countries that are involved in the MNE. This means that data on all labor markets, as well as currency, labor laws, and unions (to name a few), must be stored in a data warehouse so that the HRIS can access this data as needed for IHRM activities and programs. Chapter 14: HR Metrics and Workforce Analytics Sample Answers to Discussion Questions 1. What factors have led to increased organizational interest in HR metrics and work¬force analytics? Although the use of HR metrics and work¬force analytics is not new, various factors have driven increased interest during the previous decade. The most important driver has been the implementation of inte¬grated HRIS in response to the “millennium problem” of Y2K (Year 2000). The adoption of these systems shifted what had been primarily paper-and-pencil processes to electronic processes and, as a result, greatly increased the capacity of organiza¬tions to access and examine transaction-level data. These new HRIS featured faster and more capable computers, improved connectivity through organizational networks and the Internet, and the earliest ver¬sions of user-friendly analytics software. These changes fundamentally altered the dynamics of human capital assessment in organizations, driving the marginal cost of assessment lower while providing the potential for near real-time analysis and distribution of information. In addition, the quality revolution that swept through United States manufactur¬ing and service firms in the 1980s and 1990s, including Total Quality Management (TQM), Six Sigma, and lean manufacturing, increased managers’ expectations about the availability of organizational data and the capability of using these data to generate analytics that could support managerial decisions. These factors, com¬bined with recent and growing interest in evidence-based management, have pro¬duced a rapidly growing interest in HR metrics and workforce analytics. 2. When might the information from numeric information systems such as HR metrics and workforce analytics not generate any return on investment (ROI)? When the HR metrics and workforce analytics do not lead to different and better decision making. Information from numeric systems like HR metrics and workforce analytics might not generate ROI if: 1. Lack of Actionable Insights: The data is not analyzed effectively or lacks relevance, leading to decisions that do not improve outcomes. 2. Poor Implementation: Insights are not effectively integrated into HR practices or decision-making processes. 3. Inadequate Data Quality: Data is incomplete or inaccurate, undermining the reliability of the analysis. 4. Misalignment with Goals: Metrics and analytics do not align with organizational objectives or strategic priorities, limiting their impact. 3. What relationships should exist between the metrics an organization chooses to cal¬culate and report and the types of analyses it conducts? The primary objective of developing capabilities in HR metrics and workforce analytics is to increase organizational effectiveness. It is not simply to generate a static menu of HR metrics reports. The relationship that should exist is that the HR metrics should lead to improved managerial decision making and thus increased organizational effectiveness. 4. What are some of the limitations of the traditional HR metrics? The limitations of traditional HR metrics can be seen by examining the Saratoga metrics listed in Table 6. 1. They focus on readily available data, most of which came from accounting systems. Consequently, these metrics emphasize costs or easily calculated counts (e. g. , headcount and turnover) that often serve as proxies for costs. In addition, they represent the current situation of the organization but provide no direction for future directions for the organization. Also, every managerial deci¬sion has cost and benefit consequences, whether we recognize them or not. As a result, if our information systems only provide information about costs, they are of limited value to managers. Managers will try to use the information they are provided; if we offer them only cost information but little information on benefits, costs are likely to become the primary driver of managerial decisions. 5. Discuss the historical role of HR benchmarking and its strengths and weaknesses as part of a metrics and analytics program in organizations today. The Saratoga Institute’s benchmarking efforts were the first to develop infor¬mation on standard HR metrics regarding the use and management of human capital. Benchmarking data are useful in that they provide insights into what is pos¬sible. However, a challenge in using HR metrics as benchmark data is that an organization’s human resource practices and the use of its HR staff reflect current challenges facing a given organization. As a result, most organizations have an HR department, but the specific functions performed by these departments vary widely across organizations. Consequently, direct comparisons of HR benchmark¬ing data from one’s own organization to data from other organizations may not provide realistic guidelines for either goal setting or forecasting the potential effectiveness of remedial actions an organization might undertake. 6. What roles might more recent analysis activities, such as data mining, predictive statistical analyses, and operational experiments, play in increasing organizational effectiveness? Data mining identifies these causal mechanism within data by using correlation and multiple regres-sion methods to identify patterns of relationships in extremely large datasets. An example would be the identification of a correlation between employee job satis¬faction and employee turnover. Predictive analysis involves attempts to develop models of organizational systems that can be used to predict future outcomes and understand the consequences of hypo¬thetical changes in organizations—for example, a change in existing organizational systems. To continue the simple example above, if the organization discovered a correlation between employee job satisfaction and turnover, HR could use this data to suggest modifications to the employees’ work situation or their benefits. One of the most effec¬tive methods for developing the evidence on which to base decisions is through operational experiments conducted within the organization. Data mining, predictive analysis, and operational experiments help managers make better and different decisions that lead to improved organizational effectiveness. 7. What differences exist between metrics and analytics that focus on HR efficiency, operational effectiveness, and organizational realignment? Offer examples of each. Most metrics focus on the third set of expertise: administrative process efficiency (Figure 6. 1). These met¬rics focus on how well the HR department accomplishes its critical processes to support organizational effectiveness. Metrics in this area might include cost per hire, days to fill positions, percentage of performance reviews completed on time, and HR department costs as a percentage of total costs or sales. Note that analytics are not used in HR process efficiency. HR metrics and workforce analytics focused on organizational process improvement are primarily focused outside the HR department. Here, the objec¬tive is to utilize the technical competence of the HR professionals in HRM regard¬ing their understanding of how best to recruit, select, deploy, train, design jobs, motivate, develop, evaluate, and retain employees in order to help organizational units more effectively accomplish their objectives. The outcomes are the business units’ operational metrics (i. e. , percentage of on-time deliveries, operational down time, lost-time accidents, cost per unit, units sold, or cost per unit). Analyses will attempt to identify what changes in HRM practices can help organizations or spe¬cific business units improve their operational effectiveness. Strategic realignment involves the set of activities most commonly known today as human resource planning (HRP; for more detail, see Chapter 11). These planning efforts focus on both long-term plans to assure replacement of the labor power needed to operate as an organization as well as planning for needed strate¬gic changes in the organization. Boeing, for example, engages in a number of efforts to assure that it will have sufficient numbers of engineers available to staff operations in future years, as the company faces the approaching retirement of a large portion of its engineering workforce. Strategic realignment also extends the use of HRM analytics to planning for new situations and circumstances. New situations and circumstances occur when an organization undergoes a strategic change in direction (i. e. , through merger, acquisition, divestiture, or entry into new geographic or product markets). 8. Describe which characteristics of HR metrics and workforce analytics are likely to result in greater organizational impact. HR managers must to be able to demonstrate their capacity to use metrics and analytics to manage their own operations well, and then, others will be more likely to listen to their recommenda¬tions. HR managers and professionals must also work closely with their business partners in operational departments to help improve their capability to achieve their desired outcomes. Finally, using HR metrics and workforce analytics to improve decision making related to organizational effectiveness and strategic realignment can affect the organization’s bottom line. Chapter 15: HRIS Privacy and Security Sample Answers to Discussion Questions 1. Why are information security and privacy important considerations in the design, development and maintenance of HRIS? Organizations are required to capture and maintain a large amount of personal information on employees. But despite the widespread use of HRIS and the volume of information being collected, many companies have not developed policies aimed at protecting this employee information. Thus, employees and privacy experts are concerned about four aspects of data use. • Unauthorized access to employee information • Unauthorized disclosure • Data accuracy problems • Stigmatization problems Because of the concerns about the appropriate use and potential misuse of employee information, organizations need to develop sound security policies to protect employee information. Security policies can help the organization protect against both internal threats, such as disgruntled employees, or external threats, such as hackers, viruses, and other threats. The most effective security policies are those that protect employee data while ensuring that the organization is able to effectively capture and store all the information needed to comply with governmental regulations and meet company needs. 2. List and discuss the major information security and privacy threats to organizations. Students should be able to identify and discuss the following threats: • Human error • Disgruntled employees and ex-employees • Hackers • Software threats, such as viruses, worms, trojans, and spyware • Natural disasters • Misuse of computer systems • Extortion • Data theft • Computer-based fraud • Cyberterrorism • Phishing • Denial-of-service attacks 3. What are the important goals/considerations of information security? Using the McCumber cube as a guide, there are three major areas to consider when developing information security policies. These are as follows: Desired Information Goals There are three goals that are of importance in the development of security policies and practices. 1. Confidentiality – ensuring that information is only accessed, used, or disclosed by authorized users 2. Integrity – data and systems must be created, modified, or deleted in a specified manner 3. Availability – the system and data should be available to authorized users when required State of Information Security policies need to account for the information in an HRIS in multiple different states. 1. Storage – data is inactive, waiting to be accessed 2. Processing –data is being actively examined or modified 3. Transmission – data is moving Countermeasures Countermeasures are mechanisms used to protect data. 1. Technology – using hardware and software to limit threats to data 2. Policy and practices – using organizational rules or practices to mitigate risk or eliminate the possibility of threats 3. Human factors – educating employees and those with access to the system on how to identify and handle threats 4. Identify important legal provisions governing information security and privacy in your country. Each country will have their own specific policies protecting employee data. Answering this question will require students to do some outside research about their country’s specific laws. For example, the United States has the Privacy Act of 1974 that governs the collection, storage, use, and dissemination of employee information in the public sector, but surprisingly, there are not federal-level laws governing employee information in private organizations. Different states will have their own laws, so students may also investigate laws within their state. Students should also consider local laws that may be more stringent than federal laws in their country. 5. What is the role of HR professionals in information security and privacy management? Students should be able to discuss some of the following: • Information stored is confidential or not • Whether information stigmatizes employee in any manner • Whether to restrict access to HR personnel only • Public disclosure of any adverse material in a personnel file (responding to reference checks) • Seek written permission of employee before releasing any information • Laws on access to personal records enable employees to inspect their files • Impact on telecommuting HR professionals play a crucial role in information security and privacy management by implementing policies and procedures to protect sensitive employee data, ensuring compliance with legal requirements, and conducting regular training to maintain security awareness among staff. 6. What are some of the best practices to manage information security and privacy in terms of procedural, technical, and physical controls? Students should be able to identify and discuss some of the following: • Adopt a comprehensive privacy policy. • Store sensitive personal data in secure computer systems. Encrypt! • Dispose of documents properly. • Build document destruction capabilities into the office infrastructure. • Conduct regular staff training. • Implement and continuously update technical/software security measures. • Implement and update behavioral or nontechnical security measures. • Conduct privacy “walk-throughs. ” • Limit what data are collected on employees to that which are relevant to job evaluations or employment decisions. • Inform employees, applicants, and former employees about how their data are maintained and used. • Put limits on data display and disclosure. • Restrict data access to staff. • Regularly audit compliance. • Procedural: Establish clear data handling policies and conduct regular audits. • Technical: Implement strong encryption, access controls, and cybersecurity measures. • Physical: Secure physical access to data centers and use locking mechanisms for devices. Chapter 16: HRIS and Social Media Sample Answers to Discussion Questions 1. What are some of the advantages of using social media tools in the recruitment process? The use of social media websites like Facebook enable employers to reach a large number of potential applicants. The social aspect of this medium enables many individuals to inform friends, families, and coworkers of job opportunities in a quick and direct manner. Networking is a key technique in how individuals become aware of job opportunities, and social media creates a large network that can communicate quickly and constantly. Social media also allows employers to learn more about applicants by the type of posts they make, whereas certain behaviors can be identified. 2. What are some of the disadvantages of using social media? Disadvantages of social media include the loss of employee productivity while on the job. Studies have shown that employees who access social media sites while on the job do so for extended periods of time, which diminishes their level of productivity in performing their job duties. Employees that actively use social media sites and post messages about coworkers can create internal morale issues and concerns. 3. What are some of the legal ramifications? Employers have potential legal and liability concerns when it comes to the use of social media. In regards to the recruitment process, it is important that employers do not use improper or not credible information about a job applicant posted on social media as a reason to not hire the individual who is otherwise credible. Employers need to be mindful that employees who access and use social media sites on company time and on company-owned computers and Internet services can create liability issues. If an employee posts improper messages on social media sites while on the job, the employer is liable for that action, especially if they did not take action to prevent or stop the behavior. HIPAA can be violated on social media sites if employees post and share medical issues. If employers monitor this activity, provide proper training, and block social media sites from employee systems when issues are detected, they can limit legal issues that may arise. 4. What type of policies should organizations implement when using social media tools for recruitment? Employers must first include in their social media policy that employees are not permitted to post any derogatory comments on sites about any current or potential employee. Employers will often require that employees do not state where they work or the employer’s name in the individual’s social media posts. Employers must be mindful to not violate an employee’s rights when forming social media policies, along with providing proper training on the use of social media and the specifics of the policy that has been put into place. The most critical legal issue an employer needs to be cautious of when using social media as a tool for recruitment is to not discriminate against a protected class. Social media has become a common source of communication in society today, but not everyone has the ability to access and use social media, so when it comes to recruitment, employers need to not solely use this medium for their recruiting practices. Chapter 17: The Future of HRIS: Emerging Trends in HRM and IT Sample Answers to Discussion Questions 1. How will HRIS technology change employee engagement within organizations? HRIS technology has enabled employers to provide their employees with a great deal of information that is easily accessible and done so 24 hours a day. This has enabled HRM departments to engage workers on an ongoing basis, with the system enabling employees to access their hours, fringes, taxes, schedules, and holidays, by logging into the HRIS system. Employers can conduct internal employee surveys through HRIS to obtain their input and feedback on their jobs and views of the organization. All of the various organizational policies and regulations are clearly obtainable on HRIS systems, where employees can access and read them at their own time and pace. Having constant access to the many HRM policies is important for employees, in addition to employers being able to communicate updates and changes in a timely manner. HRIS helps to increase employee engagement by enabling HRM information to be accessed and communicated as the workforce requires. 2. What are some of the advantages that HRIS will bring to organizations in the future? Organizations are required to adhere to the many federal and state employment laws. Employment-related laws are constantly changing, and HRIS enable employers to update their policies and communicate those changes to the workforce in an expedited fashion. Prior to HRIS, employers would need to write the changes then print out new hard-copy manuals, but the advantage of HRIS is that they can be uploaded electronically and instantly made available to the entire workforce. The expense of writing, preparing, and distributing HRM policies is greatly reduced by HRIS, and that will continue to be the case in the future. 3. What are some of the disadvantages that HRIS will bring to organizations in the future? With so much information available on the Internet and social media, it is very important that employers ensure the privacy of their employees. As HRIS continues to expand within organizations to include individual smartphones and the constant sharing of information, a disadvantage that must be accepted is the potential loss of privacy that can take place with improper information being communicated. The need to maintain proper security and employee access codes is essential to limit the downsides of HRIS and the information exchange. Another disadvantage to HRIS in the future is the complete mobility that employees will have in regards to how and when they can be communicated with by their employer. With the use of smart phones and 24-hour HRIS access, employers are not able to fully leave their work behind them when their work day is complete. 4. When moving into the future, what must all organizations and human resource management professionals always remember and appreciate as the key to the success of an organization? With all the advances in technology that have been incorporated into HRIS that have improved the efficiencies of how organizations operate and communicate information to their employees, it remains critical that employers remain aware of the most important asset they have, which is their employees. As automation and technology continue to improve and be enhanced, employers need to utilize them within their organization while not forgetting that it is their employees that are their key asset and means for being productive and successful. Solution Manual for Human Resource Information Systems: Basics, Applications, and Future Directions Michael J. Kavanagh, Richard D Johnson 9781506351452, 9781483306933
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