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 2
Part 1: Human Resources Management in Perspective

LEARNING OUTCOME 3

LEARNING OUTCOME 4

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 2
Part 6: Expanding Human Resources Management Horizons

Discuss how firms can leverage employee differencesto their

LEARNING OUTCOME 5
strategic advantage and how educational and culturalchanges in
the workforce are affecting how human resources managers
engage employees.

Provide examples of the roles and competencies of today’s HR

LEARNING OUTCOME 6
managers and their relationship with other managers.

Lecture Outline

The terms human resources, human capital, intellectual assets, and talent management imply
that it’s people who drive the performance of their organizations. Successful organizations are
particularly adept at bringing together different kinds of people to achieve a common purpose.
This is the essence of human resources management (HRM).

I. Why Should You Study Human Resources Management? Will It Pay Off?

Having a good understanding of human resources management is important for managers and
entrepreneurs of all types—not just human resources (HR) personnel. All managers are
responsible for at least some of the activities that fall into the category of management.

Great business plans and products and services can easily be copied by competitors. However,
great personnel cannot. Their knowledge and abilities are among the most distinctive and
renewable resources upon which a company can draw. Understanding human resources can help
one understand his or her responsibilities and rights as an employee.

A. Human Capital and HRM

The idea that organizations “compete through people” highlights the fact that achieving
success increasingly depends on an organization’s ability to manage its human capital. The
term human capital describes the employees’ knowledge, skills, abilities, and other
attributes (KSAOs) that have economic value to the firm. Almost half of organizations
reported that the biggest investment challenge facing organizations over the next ten years is
obtaining human capital and optimizing their human capital investments.

However, unlike physical capital and resources, human capital is intangible and cannot be
managed the way organizations manage jobs, products, and technologies. To build human
capital in organizations, managers must continue to develop superior knowledge, skills,

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3
Chapter 1: The Rewards and Challenges of Human Resource Management

and experience within their workforces and retain and promote top performers.

Human resources managers and programs are often the conduit through which knowledge
is developed and transferred among employees. Although “competing through people” is a
major theme of human resources management, on a day-to-day basis, managers of all types
have to carry out the specific activities for a company to effectively do so. Professional
organizations such as the Society for Human Resource Management (SHRM) and the
Human Resource Planning Society (HRPS) conduct ongoing studies of the most pressing
competitive issues facing firms.

II. Strategic and Global Challenges

Given the pace of commerce, organizations can rarely stand still for long. Being able to adapt has
become the key to capturing opportunities and overcoming obstacles both domestically and
abroad. In fact, it is often the key to the very survival of organizations.

A. Responding Strategically to Changes in the Marketplace

Successful companies develop a culture that just keeps moving all the time. It’s been said
that “No change means no chance.” In today’s highly competitive environments in which
competition is global and innovation is continuous, being able to adapt has become the key
to capturing opportunities and overcoming obstacles as well as the very survival of
organizations.

1. Human Resources Managers and Business Strategies

Ten or 20 years ago, human resources personnel were often relegated to conducting
administrative tasks. But that has changed. Executives know that human resource
professionals can help them improve not only a company’s bottom line by
streamlining employment costs but the top line by forecasting labor trends, designing
new ways to acquire and utilize employees, measuring their effectiveness, and
helping managers enter new markets.

Executives expect their HR personnel to be able to answer questions such as, “What
is our entry strategy? Who should we send first? Where should we locate our sales,
production, and other personnel, and how do we keep them safe abroad? How do we
manage a crisis should it occur?”

To answer questions such as these, human resources managers need an intimate

understanding of their firms’ competitive business operations and strategies,
whatever they may be. Sometimes that means making adjustments to the labor force

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 4
Part 1: Human Resources Management in Perspective

via downsizing, outsourcing, and offshoring. Downsizing is the planned elimination

of jobs. Outsourcing simply means hiring someone outside the company to perform
business processes that were previously done within the firm. Offshoring, also
referred to as “global sourcing,” involves shifting work to locations abroad.

During economic downturns, companies often resort to these practices, along with
cost-cutting strategies, such as trimming workers’ benefits. To manage change,
executives and managers, including those in HR, have to envision the future,
communicate this vision to employees, set clear expectations for performance, and
develop the capability to execute by reorganizing people and reallocating assets.
Some of the strategic changes companies pursue are reactive changes that result when
external forces, such as the competition, a recession, a law change, or a crisis have
already affected an organization’s performance.

Good managers know that they can be key players when it comes to driving the
business strategies of their organizations in order to make changes. A rapidly
growing number of companies are assigning HR representatives to their core
business teams to make certain they are knowledgeable about core business issues. In
addition to serving as a strategic partner to management, HR managers are also
responsible for listening to and advocating on behalf of employees to make sure their
interests are aligned with those of the firm and vice versa.

Spend some time discussing with students both the opportunities afforded by
international business and the difficulties in managing a global workforce. Mention
the challenges of different geographies, cultures, laws, and business practices
such as offshoring. HRM issues such as staffing, training, compensation, and
labor relations lie at the heart of these concerns. Mention to students that an entire
chapter (Chapter 15) will be devoted to international issues in HRM.

Explain to students that organizations that fail to change, don’t survive. Ask students
what changes they think are most important today. Ask them how HRM issues are
involved. Refer to the textbook for a list of some of the major reasons why change
efforts can fail and how, by contrast, some companies manage change effectively.

B. Competing, Recruiting, and Staffing Globally

The strategies companies are pursing today increasingly involve one or more elements of
globalization. Consumers around the world today want to be able to buy “anything,
anytime, anywhere,” and companies are making it possible for them to do so. Partnerships,
mergers, and takeovers are other ways companies both large and small are globalizing. As
a result of globalization, the national identities of products are blurring too. Numerous free-

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Chapter 1: The Rewards and Challenges of Human Resource Management

trade agreements forged between nations in the last half century have helped quicken the
pace of globalization.

The first major trade agreement of the twentieth century was made in 1948, after the World
War II. Called the General Agreement on Tariffs and Trade (GATT), it established rules
and guidelines for global commerce between nations and groups of nations. GATT paved
the way for the formation of many major trade agreements and institutions, including the
European Union in 1986 and the North American Free Trade Agreement (NAFTA) in
1994, encompassing the United States, Canada, and Mexico. The World Trade
Organization (WTO), headquartered in Lausanne, Switzerland, now has nearly 160
member countries, and new free-trade agreements seem to be forged annually.

Emphasize that globalization, while controversial, is inevitable. Not only are employers
going global, but so are employees too because the Internet has helped them locate the best
opportunities worldwide, be they domestic or abroad.

1. How Globalization Affects HRM

Due to globalization, firms have to balance a complicated set of issues related to

different geographies, including different cultures, employment laws, and business
practices, and the safety of employees and facilities abroad. Human resources issues
underlie each of these concerns. They include such things as dealing with employees
today who, via the Internet and social media, are better informed about global job
opportunities and are willing to pursue them, even if it means working for competing
companies or foreign companies.

C. Setting and Achieving Corporate Social Responsibility and Sustainability Goals

Globalization has led to an improvement in people’s living standards in the last half
century. As a result of free trade, Americans are able to buy products made abroad more
cheaply. Some people worry that free trade is creating a “have/have not” world economy,
in which the people in developing economies and the world’s environment are being
exploited by companies in richer, more developed countries. This has sparked anti-free-
trade protests in many nations.

Concerns such as these, coupled with corporate scandals over the years, including the use
of sweatshop labor in third-world countries, have led to a new focus on corporate social
responsibility, or good corporate citizenship. Ask students how many of them have heard
about corporate social responsibility in some other class? If so, what did they learn about
the concept? If not, based on either intuition or what they read in the text, ask them to
summarize what that means to them. In order to broaden their understanding and challenge

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 6
Part 1: Human Resources Management in Perspective

their thinking, ask students what constitutes “social responsibility.” How is it determined?
Who gets to decide what is or not socially responsible? To what extent should the
corporation go along with what has been deemed socially responsible and to what extent
should the corporation seek to persuade others as to its view regarding social
responsibility?

Sustainability is closely related to corporate social responsibility. Sustainability refers to a

company’s ability to produce a good or service without depleting the world’s resources and
doing the least amount of harm to the environment as possible. Achieving complete
sustainability is nearly impossible, but companies are making strides to reduce their
“carbon footprints.”Ask students to what extent sustainability is possible for a business to
do that without causing any damage. To the extent that it is not possible in the extreme, ask
them how the firm determines policy in that regard.

III. Technology Challenges

Ask students to discuss the positive and negative aspects of computers. Advancements in
information technology have enabled organizations to take advantage of the information
explosion. Computer networks and “cloud computing” have made it possible for nearly
unlimited amounts of data to be stored, retrieved, and used in a wide variety of ways.

Collaborative software that allows workers to interface and share information with one another
electronically anywhere, anytime—wikis, document-sharing platforms such as Google Docs,
online chat and instant messaging, web and video conferencing, and electronic calendar systems,
and social media—have changed how and where people and companies do business. Social
media networking has become the new way workers find jobs and employees, recruit candidates,
and check them out to see if they are acceptable candidates.

1. From Touch Labor to Knowledge Workers

Technology has reduced the number of jobs that require little skill and increased the
number of jobs that require considerable skill. This transformation has been referred
to as a shift from “touch labor” to knowledge workers, in which employee
responsibilities expand to include a richer array of non-routine activities that involve
analyzing information and problem-solving.

Technology, transportation, communications, and utilities industries tend to spend

the most on training. “Just-in-time” learning delivered via the Internet to employees’
desktops when and where they need training has become commonplace. “Virtual”
learning is taking place as well.

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7
Chapter 1: The Rewards and Challenges of Human Resource Management

Discuss with students their experience with jobs that have moved from “touch labor”
to “knowledge workers.” Ask them what kinds of skills these new jobs require. In
many cases, employee responsibilities expand to include a richer array of activities,
such as planning, decision-making, and problem solving. It may be the case that
current employees can be retrained to assume new roles and responsibilities. Other
times new employees have to be hired. Discuss whether or not as employees they
would prefer to learn via regular training, just-in-time learning, or virtual learning
environments.

2. Technology’s Effect on HRM

Perhaps the most central use of technology in HRM is an organization’s human

resources information system (HRIS). Because HR affects the entire workforce—
everyone who works for the company must be hired, trained, paid, and promoted, usually
through HR—human resources information systems are a potent weapon used to
automate payroll processing and administer of benefits programs.

Firms are also using human resources information systems to recruit, screen, and
pretest applicants online before hiring them as well as to train, track, and promote
employees once they have been hired. One of the first steps in choosing an HRIS is
for HR personnel to evaluate the biggest “headaches” they experience, or the most
time-consuming tasks, and then choose the applications that can have the strongest
impact on the firm’s financial measures. Ultimately, however, an HRIS should
provide HR personnel with analytical information—statistics, metrics, and so forth—
that helps them analyze, refine, and better implement a firm’s strategic direction.

IV. Productivity and Cost Challenges

Labor costs are often the largest expenditures companies make, particularly in service- and
knowledge-intensive firms. Companies can actually spend more money on employees and still
drive overall costs lower via higher employee productivity. Employee productivity is the result
of a combination of employees’ abilities, motivation, and work environment, and the technology
they use to work.

A. Maximizing Productivity

Productivity can be defined as “the output gained from a fixed amount of inputs.”
Organizations can increase their productivity either by reducing their inputs or by
increasing the amount that employees produce by adding more human and/or physical
capital to the process. In absolute terms, the United States remains the world’s most
productive nation, even when it comes to manufacturing. Have students brainstorm ways

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 8
Part 1: Human Resources Management in Perspective

of increasing productivity either by reducing costs or by increasing the amount that

employees produce.

B. Managing the Size of the Workforce

Part of managing productivity is matching the size of the workforce to the demand
requirements of a firm given technology, the firm’s strategic direction, and global
competition. Outsourcing can help a firm manage the size of its workforce, reduce costs,
and focus on the activities it does best. Despite the advantages offshoring and outsourcing
offer, a growing number of firms are moving jobs back to their domestic markets or in-
house.

Other companies are nearshoring, which is the practice of bringing jobs closer to domestic
countries, and homeshoring, which is the practice of outsourcing work to domestic
workers who work out of their homes. Downsizing is, of course, another way to manage
the size of the workforce as is furloughing. Furloughing is the practice of requiring
employees to take time off for either no pay or reduced pay.

C. Managing Pay and Benefits

Most firms closely monitor employee pay and benefit programs. Another way firms are
managing benefits is by using employee leasing. When employee leasing is used, a firm
signs an agreement with a professional employer organizations (PEOs). Some companies
are able to hire talented employees by offering them a great deal of job security and
fantastic benefits. However, most companies, especially small ones or ones that are
struggling, find it hard to compete with bigger firms.

V. Employee Challenges

In addition to the strategic challenges that companies face, they also must attend to some very
important employee concerns. Those challenges span a wide range of important concerns such as
job security, health care, diversity, employee rights, and the like.

A. Responding to the Demographic and Diversity Challenges of the Workforce

To forecast trends to support the strategies of their organizations, HR managers frequently

analyze the capabilities of different demographic groups and how well each is represented
in both fast-growing and slow-growing occupations.

1. Ethnic and Racial Diversity in the Workforce

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9
Chapter 1: The Rewards and Challenges of Human Resource Management

Minorities in the United States are increasing relative to the total population. U.S.
workers are becoming more diverse as well. Firms have long been criticized for hiring
immigrant workers—both legal and illegal—because people believe they prevent U.S.
citizens from getting jobs. It is not just the most highly educated who are in demand
either.

Moreover, in recent years, the federal governments, and state governments have tried
to a greater extent to crack down on firms that hire illegal immigrants or pass laws
making it more difficult for them to live and work in the United States. Congress has
vowed to overhaul immigration laws, possibly giving migrant workers guest status
and long-term migrant workers legal status.

Ask students to identify how demographic issues relate to HRM. Point out that
managing ethnic and racial diversity means being acutely aware of characteristics
common to employees while also managing these employees as individuals.

2. Age Distribution of the Workforce

A significant proportion of American workers—77 million baby boomers—are

hitting retirement age. Not all baby boomers are dropping out of the workforce or are
retiring, though. HR managers today are, in fact, finding that hiring older workers
can be a win-win situation for both older employers and the firms that hire them.

The millennial generation, of which you may be a member, is also having an effect on
the labor market right now. Also known as Generation Y, millennials are generally
regarded as having good technological know-how and initiative, especially when it
comes to starting their own businesses.

The other major generation in the workforce is Generation X, people born between
1964 and 1979. Many members of Generation X watched their baby-boomer parents
get downsized at some point in their lives. Managers can find themselves challenged
in terms of getting the three generations to work well together.

3. Gender Distribution of the Workforce

Women now constitute a little under half of the U.S. workforce. About 60 percent of
women age 16 and older are in the labor force, and approximately 70 percent of
mothers with school-age children are employed in some capacity. The educational
attainment of women is also increasing relative to men. Women who are employed
full time today make about 79 percent of what men employed full time make.
However, some studies have found that younger women in urban areas make more

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Part 1: Human Resources Management in Perspective

than their male counterparts. Employers wanting to attract the talent that women have
to offer are taking measures to ensure they are treated equally in the workplace in
terms of their advancement opportunities and compensation. Harnessing a company’s
talent means being aware of characteristics common to employees while also
managing these employees as individuals. Encourage students to discuss
employment conditions, as they exist today for working mothers, and the possible
steps employers and the larger society should take to accommodate them at the
workplace.

B. Adapting to Educational Shifts Affecting the Workforce

Over the years, the educational attainment of the U.S. labor force has risen dramatically.
Despite the fact the educational attainment of the labor force has risen in general,
American students’ math and science test scores lag behind those of students in China,
Japan, Singapore, Finland, and several other nations. For the United States this means that
as the baby boomers retire, the problem will likely worsen.

C. Adapting to Cultural and Societal Changes Affecting the Workforce

The attitudes, beliefs, values, and customs of people in a society are an integral part of
their culture. Their culture and society affect their behavior on the job and the environment
within the organization, influencing their reactions to work assignments, leadership styles,
and reward systems.

1. Changing Employee Rights

Laws affecting employee rights are continually changing. Among them are laws
granting employees the right to equal employment opportunities; union
representation if they desire it; and a safe and healthful work environment;
unemployment and health-care benefits as required by law and the regulation of
pension plans by the government; equal pay for equal work; and so on.

2. Heightened Privacy Concerns of Employees

HR managers and their staff members, as well as line managers in positions of

responsibility, generally recognize the importance of discretion in handling all types
of information about employees. Since the passage of the federal Privacy Act of 1974,
increased attention to privacy has been evident, heightened by the increase in identity
theft in recent years. While the act applies almost exclusively to records maintained
by federal agencies, it has drawn attention to the importance of privacy and has led to
the passage of additional privacy legislation, including the Health Insurance

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11
Chapter 1: The Rewards and Challenges of Human Resource Management

Portability and Accountability Act of 1996 (HIPAA) and the associated privacy rule
issued by the U.S. Department of Health and Human Services, which protects the use
and disclosure of personal medical information.

Explain to students that not all employee communications in the workplace (e-mail
and instant messaging, for example) are legally private. Ask students to discuss
whether or not they think these communications should be used. Then ask students if
they were business owners, rather than employees of a company, and whether they
would have a different opinion.

In addition to implementing privacy policies, most companies try to limit the use of
Social Security numbers on time sheets, log-in sheets, and other employment forms.
Although the Electronic Communications Privacy Act of 1986 protects people’s
electronic communications such as their e-mail, the rules are different when it comes
to the privacy that employees can expect with regard to their electronic
communications at work. Camera surveillance in the workplace is also an issue, as is
the use of the Global Positioning System (GPS). In most U.S. states it’s legal for
employers to require their employees to give passwords to social networking sites.

Point out that the information employees post on the Web—either on social
networking sites like Facebook or on job-hunting sites such as Monster.com—have
also become subject to scrutiny by employers. Electronic surveillance in the
workplace is also becoming an issue.

3. Changing Attitudes toward Work and How They Relate to Employee

Engagement

Employees today are less likely to define their personal success only in terms of
financial gains. People also appear to be seeking ways of living that are less
complicated but more meaningful. Employee engagement can be defined as the
extent to which employees are enthused about their work and committed to it. Ask
students to comment about their views toward work relative to, for instance, the
views of their parents or relatives. How important is climbing the corporate ladder to
them?

4. Balancing Work and Family

Even though new Census Bureau figures show couples postponing marriage and
parenthood, balancing work and family continues to be a major concern for firms and
their employees. Complicating the task is the fact that today’s families are also more
diverse. Competitive organizations are finding it advantageous to provide employees

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 12
Part 1: Human Resources Management in Perspective

with more family-friendly options.

Companies with programs such as these calculate that accommodating their

employees’ individual needs and circumstances is a powerful way to attract and
retain top-caliber people. Family-friendly companies have to balance the benefits
they provide to families versus their single employees.

VI. The Role HR Managers Play and Their Partnership with Other Managers

HR managers can play a key role in terms of helping their firms meet challenges. HR managers can
measure the engagement and effectiveness of their firms’ workforces. By first seeing differences
such as these, exploring them, and then discovering how they can provide value to the organization,
HR managers can leverage those differences. Similarly, by staying abreast of workforce trends and
developments and gathering and analyzing data, HR managers can help theirs firms choose the
best strategies when it comes to competing globally, selecting human resources systems that are
ideal for a firm and its workers, maximizing productivity, managing benefits, and so on.

HR managers also serve as valuable partners to other managers, including line managers. Line
managers are non-HR managers who are responsible for overseeing the work of other
employees. Just as there are different types of line managers who specialize in different functions
there are different types of human resources managers who specialize in different HR functions.
The Bureau of Labor Statistics has forecasted that the number of HR managers needed is
expected to grow between 2012 and 2022.

A. Responsibilities of the Human Resources Managers

The major activities for which HR managers are typically responsible are as follows:
 Strategic advice and counsel—the HR manager often serves as an in-house
consultant to supervisors, managers, and executives.
 Service—HR managers perform a host of service activities such as recruiting,
selecting, testing, and planning and conducting training programs.
 Policy formulation and implementation—HR managers generally propose and draft
new policies or policy revisions to cover recurring problems or to prevent
anticipated problems.
 Employee advocacy—HR managers listen to employees’ concerns and representing
their needs to managers to make certain that the interests of employees and the
interests of the organization are aligned with one another.

B. Competencies Human Resources Managers Require

As top executives expect HR managers to assume a broader role in overall organizational

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13
Chapter 1: The Rewards and Challenges of Human Resource Management

strategy, many of these managers will need to acquire a complementary set of competencies.
These competencies are as follows:
 Business mastery—HR professionals need to know the businesses of their
organizations and their strategies thoroughly.
 HR mastery—HR professionals should develop expert knowledge in the areas of
staffing, development, appraisals, rewards, team building, performance
measurement, and communication.
 Personal credibility—credibility and trust are earned by developing good
relationships with people both internal and external to the firm, demonstrating the
values of the firm, standing up for one’s own beliefs,and dealing with all parties
equitably.

Answers to End-of-Chapter Discussion Questions

1. Contrary to what many managers might say, people are not always an organization’s
most important asset. In fact, many times, managers adversely affect the impact employees
can have on the organization (e.g., by designing jobs that don’t let individual talents show,
by not giving employees input into decisions, and so on). Employees can be the most
important asset and directly impact the competitiveness of an organization under certain
circumstances.

Some of the most basic concerns about opening up an office in another country include
legal, cultural, and administrative differences. Students should be made aware of the options
an organization has in terms of hiring people from the host country versus sending over
expatriates. Depending on the people hired, training issues become important, as do issues
related to pay, career development, and the like.

2. Students’ answers will be based on their values and background. Some students may be
more focused on day-to-day personal needs and others on broader societal or global
concerns. In general, most students would prefer to be identified with a firm that does not
have a bad reputation. The important thing is not the answer but the amount of thought put
into it.

3. Students’ answers will vary. Any answer is at least partially speculative. Regardless of how
students respond, it seems reasonable that as long as an organization consists of human beings
that HR functions will need to be carried out by someone even if it is being done as an
additional duty for a person whose primary job is something other than HR.

4. Students’ answers may vary. This is an interesting opinion question. Perhaps the class can be
divided into discussion groups, who will report back to the class with their perspective. Most

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 14
Part 1: Human Resources Management in Perspective

likely the class will conclude that it is indeed possible to demoralize employees by cuts in
pay and benefits or by creating schedules and working conditions that would normally be
unacceptable. It is also possible that a group of people could experience those same
problems and have high morale if they believe they are doing so for a worthy cause or that
what they are enduring is only temporary and will result in a far better situation in the future.

5. Students’ answers may vary. Probably most students will focus on the pros and say that the
U.S. benefits from its diverse population. Some students will take that position because that
is what they believe and others will do because they think that is what the instructor believes
- and those students want to make an “A!” However, challenge the students to cover both
sides. Those who manage to suggest some cons will likely touch upon problems of
communication and culture clash. With regard to any problems, it might be well to ask for
ideas as to how such problems can be minimized.

6. Students’ answers will vary. This question is meant to stimulate conversation about the
complementary roles within HRM—how they fit together and support the business. Without
any one of the roles, the pyramid topples. In today’s organizations, it may be the case that
personal credibility and/or ethics is the most central role. Without it, nothing else much
matters.

Notes for End-of-Chapter Case Studies

Case Study 1: New HR Strategy Makes Lloyd’s A “Best Company”

1. The case does not specify the skills that Black thinks that the workforce in general needs to
work successfully in the area of HR but based on the focus of her efforts and on what she
has indicated regarding the ideal characteristics of future HR professionals, there are several
things that are obvious. Regarding HR professionals, they need to develop certain attitudes
and understanding and be able to focus. As she put it, “They must understand change and
transformation, excel at operations, and balance tactical and strategic thinking and acting.
They will have to be able to manage and navigate organizational complexity and ambiguities
and not be afraid to say no occasionally in order to establish appropriate boundaries with the
business.” For the general workforce, their demonstration of the ability to respond positively
to change was a plus for her and a characteristic that will need to be maintained and
enhanced for the future.

2. Some of the outcomes of the company’s new HR strategy include not only a more positive
internal organizational environment in which employees can function more effectively but
widespread publicity regarding that environment (the newspaper recognition of the firm as
one of the “Top 100 Best Companies to Work For”) makes it easier to attract valuable talent

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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15
Chapter 1: The Rewards and Challenges of Human Resource Management

to the firm.

3. Some of the challenges of establishing HR policies for a global company include culture
(along with religion), communication, laws, and economic systems. A policy that is viewed
as desirable in one country might be viewed as evil in another. Language barriers and
subtleties in the way information is presented create the risk of misunderstanding. Laws in
some countries might prohibit certain policies. The economic system and related values
might make it difficult to implement some policies. Encourage students to add to this list and
suggest specific applications.

4. Situations that might require an HR manager to say “no” could involve almost any HR
policy or objective which might pay off for the firm but not for a given person, department
or team. Black spoke of the need to say no in order to establish appropriate boundaries—
without specifying what those boundaries might be. For example, the manager of a given
department has a vision of what he or she wishes to accomplish. He or she may wish to be
given priority regarding new hires who have certain skills but HR might be obligated to
make those hires available to other parts of the firm where they can be used to greater
advantage. Ask students to give examples of instances in which a manager must avoid
pleasing everyone if he or she is to be successful.

Case Study 2: Shell’s Top Recruiter Takes His Cues from Marketing

1. Recruitment by its very nature involves marketing. Firms who have an abundance of highly
qualified applicants trying to sell themselves in pursuit of a limited number of jobs do not
need to recruit. However, marketing not only seeks to sell something to a customer but to do
so in way that will result in a delighted customer—one who will be satisfied with product or
service. Effective recruiting needs to do the same. Recruiting needs to result in an employee
who will enthusiastically blend into the firm. In addition to recruiting, training will be more
effective if it is “sold” to the trainees. Implementation of various HR policies will be more
successful if employees implement them because they want to do so—not just because they
have to comply.

2. Students’ answers will vary. However, some may say that to become an employer of choice
a firm needs to understand the needs and values of the type of employees the firm seeks to
attract—their age, educational level, values, etc. For instance, it might be difficult for an oil
company to attract candidates who believe that the petroleum industry is a primary cause of
global warming, but perhaps by positioning the firm as one that is taking action to reduce
any negative effects it might then be successful in recruiting. There is no correct answer to
the question—the important thing is the thought put into the answer.

3. Students’ answers will vary. Depending on the size of the class, perhaps instructors might

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 16
Part 1: Human Resources Management in Perspective

form the class into two debate teams to discuss the question. The correctness of the
statement may depend on the industry but to the extent that industries grow at a faster pace
than the growth in the number of qualified applicants, Singh may be prophetic.

Flip Tips

Activity 1:

Before participating in this activity, students should have read Chapter 1 in the textbook “The
Rewards and Challenges of Human Resources Management.” After that ask them to divide
themselves into groups and select a company that they would consider applying to. Following
that the students should make an assessment of the HR policies of the company. Students can
consider these policies as the criteria for either joining the company or deciding against it. After
doing so they can report out to the classroom on their perceived sense of the “health” of the HR
policies of the company and whether they would recommend it as a place to work.

Activity 2:

Divide students into small groups of approximately three people per group. Assign each group
the role of the owner of a small scale business, large scale business, or business that has just
entered the market—or allow groups to select the role they prefer. Ask students to consider the
following questions and then prepare a statement to be shared with employees, customers, and
potential customers regarding the company’s HR policies. Once each group has prepared its
statement, all groups should share their statements with the class, with the other students taking
on the role of employees or customers and reacting to the company’s.

Questions
 How can good HR practices help increase productivity and control costs?
 How can the use of technology improve the management of people?
 Discuss the effect of downsizing, outsourcing, and offshoring on a company.
 What strategies can be used by the company for competing, recruiting, and staffing
globally?
 What are the challenges posed by globalization to a company? How will this affect the
formulation of HR policies?

This activity will help students understand the function of good HR practices that would help any
type of organization at various stages of growth. Also, this discussion would encourage students
to think about the different aspects involved in HRM and understand the fact that HR policies
need to be tailored to the needs of each company.

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
17
Chapter 1: The Rewards and Challenges of Human Resource Management

HRM CHALLENGE EXERCISE ANSWERS

Identify from the list below six competitive challenges that HRC as an
organization may face:
 Legal changes

 Competing, recruiting, and staffing globally

 Diversity of the workforce

 Embracing new technology

 Public relations

 Managing Change

 Managing talent or human capital

 Work/life balance

 Responding to the market

 Containing costs

Feedback Newman’s top competitive challenges are:

 Competing, recruiting, and staffing globally

 Embracing new technology

 Managing Change

 Managing talent or human capital

 Responding to the market

 Containing costs

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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