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Luis R. Gomez-Mejia, David B. Balkin, Kenneth P. Carson

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ANNOTATED OUTLINE

LEARNING OBJECTIVE 1.1

Describe the major challenges affecting HR

I. Human Resource Management: The Challenge

Human resource challenges that face today’s managers may be categorized
according to their primary focus: the environment, the organization, or the
individual. Firms that deal with these challenges effectively are likely to outperform
those that do not. Figure 1.1

A. Environmental Challenges

Environmental challenges refer to forces external to the firm that are largely
beyond management’s control but influence organizational performance. They
include rapid change, the web economy, workforce diversity, globalization,
legislation, evolving work and family roles, skill shortages and the rise of the
service sector, and natural disasters and terrorism,

B. Organizational Challenges

Organizational challenges refer to concerns that are internal to the firm.

Effective managers must be proactive and deal with organizational issues
before they become too big.

C. Competitive Position: Cost, Quality, or Distinctive Capabilities

Human resources represent the single most important cost in many businesses.
A number of HR policies affect the organization’s competitive position. These
issues include: decentralization, downsizing, organizational restructuring, self-
managed work teams, organizational culture, technology, internal security,
data security, outsourcing, and product integrity.

D. Individual Challenges

Human resource issues at the individual level address decisions most pertinent
to specific employees. These issues almost always reflect what is happening in
the larger organization. How individuals are treated also is likely to have an
effect on organizational issues. For instance, if many key employees leave a
firm to join its competitor, it will affect the competitive posture of the firm.
The individual issues include matching people and organizations, ethics and
social responsibility, productivity, empowerment, brain drain, and job
insecurity.

Copyright 2020 Pearson Education, Inc 2

 LEARNING OBJECTIVE 1.2
Outline key steps in planning and implementing strategic HR policies

II. Planning and Implementing Strategic HR Policies

To be successful, firms must closely align their HR strategies and programs (tactics)
with environmental opportunities, business strategies, and the organization’s unique
characteristics and distinctive competence.

A. The Benefits of Strategic HR Planning

Formulating HR strategies and establishing programs to implement them is

strategic human resource planning. Successful HR strategic planning provides
many benefits for the company, including (1) encouragement of proactive
rather than reactive behavior, (2) explicit communication of company goals,
(3) stimulation of critical thinking and ongoing examination of assumptions,
(4) identification of gaps between current situation and future vision, (5)
encouragement of line managers’ participation, (6) identification of HR
constraints and opportunities, and (7) creation of common bonds.

B. The Challenges of Strategic HR Planning

In developing HR strategy, organizations face several important challenges,

including (1) maintaining a competitive advantage, (2) reinforcing overall
business strategy, (3) avoiding excessive concentration on day-to-day
problems, (4) developing HR strategies suited to unique organizational
features, (5) coping with the environment, (6) securing management
commitment, (7) translating the strategic plan into action, (8) combining
intended and emergent strategies, and (9) accommodating change.

C. Strategic HR Choices

Human resource strategies, which are implemented through HR activities and

programs, may affect the performance of the business. The options that a firm
has available in designing its HR system are its strategic HR choices. Some
potential choices include work flows, staffing, employee separations,
performance appraisal, training and career development, compensation,
employee and labor relations, employee rights, and international management.
Figure 1.2

LEARNING OBJECTIVE 1.3

Understand the various HR strategies that companies use to increase
firm performance
.
III. Selecting HR Strategies to Increase Firm Performance

Copyright 2020 Pearson Education, Inc 3

No HR strategy is “good” or “bad” in and of itself. The success of HR strategies
depends on the situation or context in which they are used. In other words, an HR
strategy’s effect on firm performance is always dependent on how well it fits with
some of the factors. Fit refers to the consistency or compatibility between HR
strategies and other important aspects of the organization. Figure 1.3

A. Fit with Organizational Strategies

Organizational strategies may be examined at two levels: corporate and

business.

Corporate strategy refers to the mix of businesses a corporation decides to

hold and the flow of resources among those businesses. This involves
decisions pertaining to acquisition, divestment, diversification, and growth. At
one end of the spectrum is the evolutionary business strategy; at the other end
is the steady-state strategy.

Business unit strategies refer to those established by firms or autonomous

units of the corporation. Well-known business strategies were formulated by
Porter (overall cost leadership strategy, differentiation business strategy, and
focus strategy) and Miles and Snow (defender strategy and prospector
strategy). Figure 1.4.

B. Fit with the Environment

HR strategies should help the organization better exploit environmental

opportunities or cope with the unique environmental forces that affect it. The
environment can be examined on four dimensions, including (1) degree of
uncertainty, (2) volatility, (3) magnitude of change, and (4) complexity.
Figure 1.5.

C. Fit with Organizational Characteristics

To be effective, HR strategies must be tailored to the organization’s

personality. The features of an organization’s personality are its (1) the
production process for converting inputs into output, (2) the firm’s market
posture, (3) the firm’s overall managerial philosophy, (4) the firm’s
organizational structure, and (5) the firm’s organizational culture.

D. Fit with Organizational Capabilities

An organization’s capabilities are its distinct competencies. HR strategies

make a greater contribution to a firm’s performance to the extent they (1) help
to exploit the firm’s specific advantages or strengths while avoiding its

Copyright 2020 Pearson Education, Inc 4

 weaknesses, and (2) when they assist in better using its own unique blend of
human resource skills and assets.

E. Choosing Consistent and Appropriate HR Tactics to Implement HR

Strategies

Even the best-laid strategic HR plans may fail when specific HR programs are
poorly chosen or implemented. A firm’s HR strategies must be mutually
consistent. That is, HR strategies are more likely to be effective if they
reinforce one another rather than work at cross-purposes. Figure 1.6

LEARNING OBJECTIVE 1.4

Outline HR best practices

F. HR Best Practices

There is much debate about whether high-performing HR practices create

sustained high organizational performance or vice versa. Regardless of the
debate, it is reasonable to state that organizations should consider
implementing practices associated with the highest-performing firms. Figure
1.7

LEARNING OBJECTIVE 1.5

Explain how to establish a close partnership between the HR department
and managers

A. The HR Department and Managers: An Important Partnership

All managers must effectively deal with human resource issues because these
issues are at the core of being a good manager. Moreover, mutual partnerships
must be formed among line managers and HR professionals in order to
effectively and efficiently meet the employees’ and employer’s goals and
needs. Specific steps a company can take to foster an effective partnership
between managers and the HR department include: (1) analyze the people side
of productivity, (2) view HR professionals as internal consultants, (3) instill a
shared sense of common fate, (4) require some managerial experience, (5)
actively involve top corporate and divisional managers, (6) require senior HR
executives to participate.

B. Specialization in Human Resource Management

While the size of the typical HR department has been shrinking in recent
years, the use of external HR consultants has increased considerably

This may reflect the growth of government regulations and organizations

recognizing the growing importance of HR issues. Many colleges and

Copyright 2020 Pearson Education, Inc 5

 universities are now offering degrees in HR-related fields. The demand for
HR professionals is expected to continue to grow in years to come.

ANSWERS TO END-OF-CHAPTER DISCUSSION QUESTIONS

1-1. What do you see as the main advantages and disadvantages of Internet-based
recruiting? Explain.

Students answers will vary but some of the advantages include: it takes less time
to review more applications and it broadens the recruiting pool because anyone
with access to a computer and Internet can apply from anywhere in the world and
HR only looks at candidates who fit the specific qualifications of the job. Some
disadvantages include: not everyone has access to the Internet so you may lose out
on some applicants who do not have this resource; because the computer system is
only looking for certain things, an organization may lose out on some good
potential applicants because they may not meet the exact search criteria; and it can
be costly.

. 1-2. Roughly two generations ago many HR articles decried problems with
performance appraisal. A common complaint was that managers did not
devote sufficient time to conducting the appraisals and that biases were
rampant. Another common complaint was that most managers gave high
ratings to all employees and did not bother to properly differentiate and
carefully document the performance evaluation of subordinates. Several old
surveys reported that three quarters or more of employees hated
performance appraisals and found them to be useless, increasing tension at
work Several recent surveys reveal that this situation has not changed much,
with the majority of managers and employees unhappy with appraisals.
Based on what you have learned in this chapter, what implications does this
have for HR practices that presumably rely on an accurate assessment of
employee performance (such as promotions and merit pay decisions)?

Jobs have become more complicated in recent years and particularly since the
economic recession, organizations have to do more with fewer resources. In light
of this one explanation, it may be that it is harder to do quality performance
appraisals than it used to be. The process may have improved but the jobs may
have changed faster than appraisal systems could keep up with. The overall
underlying problem may be that people do not like to give employees negative
feedback, thus the appraisals they provide are less than accurate. This has
numerous implications for HR practices because the policies and procedures (no
matter how good they may be) are only as good as the people who apply them and
whether they are applied fairly and consistently.

Copyright 2020 Pearson Education, Inc 6

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1-3. Go back to the Manager’s Notebook “How Harley-Davidson Is Taking
Advantage of a Diverse Customer Base.” If you were a HR manager of a
company such as Harley-Davidson, what human resource programs would
you put in place to help the company expand its customer base? Explain.

Student answers should reference points covered in Figure 1.7.

 Offer high employment security because this indicates that the firm is
committed to the employee’s welfare
 Develop a good selection program that can screen the best applicants
 Offer wages that are highly competitive as this helps reduce employee
turnover and helps in the attraction of high-quality employees
 Recognize employees by providing monetary and non-monetary rewards
 Make employees part-owners of the firm by providing them with stock in
the firm
 Communicate effectively with employees so that they are kept informed of
major issues confronting the organization and any major initiatives
 Encourage employee involvement so that there is strong “buy-in” of
human resource practices and important managerial initiatives
 Encourage teamwork so that employees are more willing to collaborate
with each other
 Invest in training programs to improve employee skills
 Provide opportunities for learning at work so that employees are
“stretched” in the use of their skills
 Give a higher priority to internal candidates for promotion because this
enhances employee motivation by providing future career opportunities
 Promote inclusion in workforce
 Use data analytics

1-4. Of all the issues affecting HR practices discussed in this chapter, which three
in your opinion are the most important ones? Justify your answer.

Student answers will vary but their justifications should reference points covered
in the text. Training programs are important issue because employees can improve
their skills and advance in their careers. Likewise, providing opportunities for
learning at work allows employees to grow in their jobs, feel more job
satisfaction, and become more marketable. Offering competitive wages will serve
to retain good employees and reduce turnover.

1-5. In your opinion, which of the environmental, organizational, and individual

challenges identified in this chapter will be most important for human
resource management in the twenty-first century? Which will be least
important? Use your own experiences in your answer.

Student answers will vary in response to this question but it is important to note
that governmental regulation, the changing nature of the workforce (shorter-term

Copyright 2020 Pearson Education, Inc 7

 employment is commonplace), and the globalization of business are all key areas
to discuss.

1-6. Do you think it is fair for a company to discipline employees by charging

higher fees for those who show evidence of “unhealthy life styles”? According
to Dr. Kevin Volpp, director of the Center for Health Incentives and
Behavioral Economics at the University of Pennsylvania, punitive surcharges
and tough health targets may hurt those who need assistance the most. Do
you agree? Explain.

Student answers will vary in response to this question. These issues can become
emotionally charged for some students. It is important to note that these sorts of
policies are legal for private firms. However, irrational students may feel these
practices are not, so it is important to present the fact that there are a myriad of
these types of policies in place.

1-7. 3M’s competitive business strategy is based on innovation. 3M requires that

at least 25 percent of its annual sales come from products introduced over the
previous five years, a goal it often exceeds. Specific HR programs adopted to
implement this strategy include the creation of a special fund that allows
employees to start new projects or follow up on ideas. 3M’s “release time”
program, in which workers are given time off during the day to pursue their
own interests, is given credit for the creation of new products that
management would not have thought of by itself. In addition, 3M’s appraisal
process encourages risk taking. A senior manager at 3M says, “If you are
threatened with dismissal after working on a project that fails, you will never
try again.” What other types of HR policies might 3M institute to spur
product innovation?

Students can work in small groups and develop HR policies that might encourage
innovation. The groups can share their ideas with the class.

1-8. Many believe that top managers care little about human resources compared
to such areas as marketing, finance, production, and engineering. What
might account for the perception, and what would you do to change it?

Students can share their opinions with the class, while referring to the concepts
presented in the chapter

MyManagementLab Assisted-graded and Auto-graded Questions.

1-9. Outline a set of issues that are most likely to pose a major challenge to the
management of human resources during the next few decades. Based on the
materials learned in this chapter, explain why you have chosen each of these
issues.

Copyright 2020 Pearson Education, Inc 8

 Students can discuss which issues will pose a major challenge to HR managers
and explain why they have chosen each issue. The major HR challenges fall into
three categories: environmental challenges, organizational challenges, and
individual challenges. The environmental challenges are rapid change, the rise of
the Internet, workforce diversity, economic globalization, legislation, evolving
work and family roles, skill shortages and the rise of the service sector, and
catastrophic events as a result of natural disasters and terrorism. The
organizational challenges are choosing a competitive position, decentralization,
downsizing, organizational restructuring, the rise of self-managed work teams, the
increased number of small businesses, organizational culture, advances in
technology, and the rise of outsourcing. The individual challenges involve
matching people with the organization, treating employees ethically and engaging
in socially responsible behavior, increasing individual productivity, deciding
whether to empower employees, taking steps to avoid brain drain, and dealing
with issues of job insecurity.

1-10. A major complaint one often hears is that the human resource function still
remains as one of the weakest and less prestigious functions in many
organizations, with the stereotype that it is a “paper shuffling” unit with little
impact on the bottom line. Why do you think this is the case? What can the
HR manager do to change this real or perceived state of affairs? Explain.

Students can share their opinions on the importance of HR. Responsibility for the
effective use of human resources lies primarily with managers. The role of HR
professionals is to act as internal consultants or experts, assisting managers to do
their jobs better. The number of HR professionals has increased because of the
growth and complexity of government regulations and a greater awareness that
HR issues are important to the achievement of business objectives.

1-11. Some scholars believe that there is a set of “best” human resource practices
that advanced companies should follow (see Figure 1.7), whereas others
believe that there is “no one best way” when it comes to HR practices and
that these should be adapted depending on organizational strategies,
organizational characteristics, environment, and organizational capabilities
(see Figure 1.3). Are these perspectives contradictory? Which of the two
perspectives makes the most sense to you? Explain.

Answers will vary. Students can discuss whether there is one set of best practices
that companies should follow. HR best practices are human resource programs
that effectively attract, retain and motivate employees. Students should refer to the
practices outlined in Figure 1.7.

 Offer high employment security because this indicates that the firm is
committed to the employee’s welfare
 Develop a good selection program that can screen the best applicants

Copyright 2020 Pearson Education, Inc 9

  Offer wages that are highly competitive as this helps reduce employee
turnover and helps in the attraction of high-quality employees
 Recognize employees by providing monetary and non-monetary rewards
 Make employees part-owners of the firm by providing them with stock in
the firm
 Communicate effectively with employees so that they are kept informed of
major issues confronting the organization and any major initiatives
 Encourage employee involvement so that there is strong “buy-in” of
human resource practices and important managerial initiatives
 Encourage teamwork so that employees are more willing to collaborate
with each other
 Invest in training programs to improve employee skills
 Provide opportunities for learning at work so that employees are
“stretched” in the use of their skills
 Give a higher priority to internal candidates for promotion because this
enhances employee motivation by providing future career opportunities
 Promote inclusion in workforce
 Use data analytics

You Manage It! 1: Emerging Trends

Electronic Monitoring to Make Sure That No One Steps Out of Line

Critical Thinking Questions

1-12. Do you think that it is feasible to boil down human behavior to numbers?
What are the potential advantages and disadvantages of doing so? Explain.

Student answers will vary but some advantages may include: a computer may see
patterns that humans may miss, and computers can handle much more pieces of
information than a human can. Disadvantages include: the systems are only as
good as the information they contain, so if the information is not accurate then
problems will occur, and computers have no emotions or feelings and thus can
never completely replace the human factor.

1-13. What do you think are the main reasons for the trend toward “managing by
the numbers,” as discussed in the case? Do you believe that this is happening
in many organizations, or is it an isolated phenomenon? Will this trend grow
in the future, or is it another passing fad? Explain.

Student answers will vary. Students may note the trend toward quantifying
“everything” in today’s world. The focus on numbers ranges from primary
education (standardized testing and No Child Left Behind) to the upper levels of
corporate America (“Managing by the Numbers”). The phenomenon is definitely
not isolated and most likely stems from the need to standardize measurement
across many varied groups. However, it seems that using formulas and numeric
inputs to determine strategic direction and levels of employee performance might

Copyright 2020 Pearson Education, Inc 10

 undermine the utility of managers’ interpersonal skills and devalue them in
organizations.

1-14. Is it possible to use quantitative assessments of the organization’s human

resources to better link human resource management to firm strategy?
Explain.

Student answers will vary. It is important to note in discussion of this topic that
there is a very important qualitative component to managing people as well as
firm strategy. The human relations expertise normally attributed to HR is an
important resource in valuing employee contributions and expectations in
organizational life. By recognizing that no two employees (or people for that
matter) are the same, organizations can improve retention and productivity.

Team Exercise

1-15. The class is divided into groups of five. Each team is to provide a list of
suggestions as to how an organization can implement a numerical human
resource system, as dis- cussed in the case. The team should discuss whether
such a system could be used to achieve a better fit between HR practices and
organizational strategies, the environment, organizational characteristics, and
organizational capabilities. Lastly, the team should discuss the extent to which
such a numerical system would clash with the “HR best practices” summarized
in Figure 1.7. Depending on class size and available class time, each team will
be asked to present the results of its deliberation, to be followed by open class
discussion moderated by the instructor.

Experiential Exercise: Team

1-16. The class is divided into groups of five. Each team is to choose an organization
(which could be a workplace for one or more team members; a hypothetical
firm in an industry that is well-known to most people, such as a restaurant; a
firm where relatives are employed; and the like). Each team is to provide a list
of suggestions as to how the organization can implement a system to “quantify
what employees do.” Then the team should discuss how this information
could be used to improve efficiency. The team may also discuss potential
problems that could arise in gathering that information and using it in
practice. The instructor may ask each team to make a formal presentation in
class, to be followed by open class discussion moderated by the instructor.

Experiential Exercise: Individual

1-17. Each student will interview a manager or an employee (who might be a family
member, a friend, or an acquaintance) to determine the extent to which the

Copyright 2020 Pearson Education, Inc 11

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 issues raised in the case are represented in his or her organization and what
steps, if any, the firm has taken to make employees more productive. The
advantages and disadvantages of such a plan may also be discussed.
(Alternatively, if the student has substantial work experience he or she may
offer his or her own views based on personal observation.) The instructor will
moderate open class discussion based on the findings brought to the class by
students.

You Manage It! 2: Ethics/Social Responsibility

Embedding Sustainability into HR Strategy

Critical Thinking Questions

1-18. Would you like to work for a company that offers the sorts of programs that
are described in the case? Would this be an important enticement for you to
accept a job in such a company and remain employed there? Explain.

Student answers will vary but some enticements may include: great company
culture, corporate social responsibility, garden space, and other perks reducing
carbon footprints.

1-19. Some skeptics argue that most sustainability programs (such as the ones
discussed above) represent an insincere attempt to create a positive company
image at a low cost. Do you agree or disagree? Do you think these types of
programs help or hurt the company’s bottom line? Explain.

Student answers will vary. Students will need to show support for their decision
making.

1-20. What role, if any, should HR professionals play in helping a company

become a leader in sustainability efforts? What specific HR challenges is a
company likely to face as it tries to become socially responsible? Explain.

HR’s role in helping a company reach sustainability should be integral. Hiring the
right people will be crucial, particularly because this is not your typical culture. It
will be very important that HR communicate with applicants extensively about the
culture and the company’s expectations for their employees. Challenges may
include maintaining customer quality as new systems and policies are
implemented, a potential skill shortage in the service sector as the number of jobs
in the company increases, and creating a stronger infrastructure to achieve the
goal.

Team Exercise

1-21. The class is divided into groups of five. Team members are asked to describe
the HR challenges firms are likely to face when trying to implement

Copyright 2020 Pearson Education, Inc 12

 sustainability programs. Specifically, considering the examples given above,
the team should discuss the main HR issues that a company should take into
account when implementing these types of programs. For instance, some
employees may feel subtle pressures to participate in organic gardening even
if this is not something that they enjoy doing.
Experiential Exercise: Team

1-22. The class is divided into groups of five. Each team is asked to role-play a
group of employees charged with coming up with a list of HR suggestions to
make a hypothetical consumer- products company more environmentally
responsible (such as, for instance, providing a bonus for energy savings).
Each team will have ten minutes to prepare the list. Depending on class size
and available time, the team will present its suggestions to the entire class.
The instructor (or another student) will play the role of the HR manager and
question the team about the soundness of its recommendations. This will be
followed by open class discussion moderated by the instructor.

Experiential Exercise: Individual

1-23. Examine the Web pages of a sample of large firms (such as those listed by
Fortune in its annual rankings of “best companies to work for”) and see if
you can identify a particular set of social responsibility programs that
involve HR policies. Try to draw some conclusions about the role played by
HR, if any, in the implementation of those policies. Also, try to determine the
rationale that different companies use for the implementation of these
programs.

You Manage It! 3 Discussion

Managers and HR Professionals at Sands Corporation: Friends and Foes?

Critical Thinking Questions

1-24. What seems to be the main source of conflict between supervisors and
the HR department at Sands Corporation? Explain.

The level of autonomy in decision-making appears to be a big problem for the

Sands Corporation.

1-25. Do you believe that managers should be given more autonomy to make
personnel decisions such as hiring, appraising, and compensating
subordinates? If so, what are some potential drawbacks to granting
them this authority? Explain.

Discussion on this issue should focus around the expertise of the individual
making the decision. Is it more important for the decision maker to be centralized

Copyright 2020 Pearson Education, Inc 13

 and making all hiring decisions for the firm, or be a coworker or direct report who
understands the intricacies of the particular job and the unique expertise necessary
to perform the job function.

1-26. How should Sands’ top executives deal with the complaints expressed by
supervisors? How should the director of the HR department deal with the
situation? Explain.

Sands Corporation has many possibilities to address this situation, including

mediation, or a simple face-to-face meeting with central figures in the
disagreement. It is important that a uniform decision be reached that will be
applied in all future situations to ensure consistency.

Team Exercise

1-27. The CEO of Sands Corporation has called a meeting of four managers, all of
whom have lodged some of the complaints noted in the case, and four
members of the HR department (the director and three specialists). The
instructor or a student acts as the CEO in that meeting. The exercise is
carried out as follows: (a) Each side presents its case, with the CEO acting as
moderator, and (b) the two groups then try to agree on how Sands’ HR
department and managers can develop a closer working relationship in the
future. The two groups and the CEO may conduct this exercise in separate
groups or in front of the classroom.
Experiential Exercise: Team

1-28. One student will role-play the HR department director and three students will
fill the roles of disgruntled supervisors. The role-play will take place in front of
the entire class for approximately 10 to 15 minutes. At the end, the instructor
will moderate class discussion, focusing on key issues that were raised by
students during the role-play.

Experiential Exercise: Individual

1-29. Go online and visit the Web sites of the Society of Human Resource
Management (www.shrm.org) and World at Work (www.worldatwork.com).
Identify a set of resources that may be helpful for the HR director in dealing
with this situation. Explain why you think this information might be helpful.

You Manage It! 4 Employability

Critical Jobs Go Vacant

Critical Thinking Questions

1-30. Why do you think some of these critical jobs are becoming so undesirable?

Copyright 2020 Pearson Education, Inc 14

 From an HR perspective, is there anything that can be done to make these jobs
more attractive? Are these changes you are proposing realistic in the near and
long-term future? Explain.
Applicants for jobs such as police officers perceive their job as much more
challenging than ever before, yet they see less public recognition for their work, As a
result, the quality of applicants to police work has decreased, Teaching is also an
occupation facing a similar situation as dedicated teachers leave or retire early,
Students can share ideas on how to make these professions more attractive. For
example, raising the pay scale for police officers and teachers could increase
retention. Students can offer thoughts on how to use recognition and rewards to
decrease turnover.

1-31. Assuming that only 10 percent of applicants are potentially qualified for police
work, what challenge does it pose from a HR perspective? What criteria would you
use to disqualify potential applicants? Explain.

The challenge for HR professionals is to select and recruit applicants that show a
good person-job fit. Disqualifying criteria would include factors such as bias.
Students can discuss criteria that would disqualify potential applicants.

1-32. Protest marches by teachers have become a common occurrence in many

cities. Do you think these protests will affect teacher shortages? Explain.

Answers will vary. Students can discuss the effectiveness of protests in improving
salaries, safety measures, and benefits.
Experiential Exercise: Team

1-33. The class is divided into teams of five. Let’s assume your team is part of a
city council of a large jurisdiction facing police and teacher shortages.
Develop a list of “actionable” HR recommendations that your team believes
can be implemented effectively to deal with the problems described in the
case.

Experiential Exercise: Individual

1-34 Go to the Web and identify cities where some of the issues discussed in
the case appear to be most severe. Draw some common themes from a
HR perspective that you can draw from your research.

Additional Exercises

In-Class or Out-of-Class Group Activities

Working in groups, list 10 examples showing how you did use (or could have used)
human resource management techniques at work or school.

Copyright 2020 Pearson Education, Inc 15

 Depending on the degree of their work experience, students will cite a wide range
of examples, possibly including some of the following:
 Situations where they have improved the efficiency of their work through
the use of technology made available to them through human resource
systems
 Employed the services of nontraditional workers
 Developed metrics to measure how they have added value in terms of
human resource contributions
 Kept themselves abreast of employment law in order to minimize the risk
to their company
 Utilized self-service HR technology
 Employed high-performance work systems concepts in the job

In a group, develop several lists showing how trends like workforce diversity,
technological trends, globalization, and changes in the nature of work have affected
the college or university you are now attending.

This list might include items such as:

 Growth of nontraditional student populations
 Use of computer/communication technology
 Diversity issues

Contact the HR manager of a local business. Ask that person how he or she is working
as a strategic partner to manage human resources given the firm’s strategic goals and
objectives.
 Students may be surprised to find the level of impact that HR has on strategy
(either very high or in some cases none at all).
 Use this opportunity to discuss the bridge between theory and practice.

Using the Internet or library sources, analyze the annual reports of at least five
companies. Bring to class examples of how those companies say they are using their
HR processes to help the company achieve its strategic goals.

In class, facilitate a discussion on how effective students believe the HR processes each
company is using to support the strategic goals are. Challenge students to come up with
additional ideas for other approaches for using the HR processes and how they would
go about implementing them, noting the specific challenges of each.

Experiential Exercise: Developing an HR Scorecard

Purpose: The purpose of this exercise is to give students experience in developing an

HR scorecard, by developing one for your college. Students should understand the
HR scorecard approach to creating a strategy-oriented HR system, and in particular,
the seven steps in the process.

Copyright 2020 Pearson Education, Inc 16

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Instructions: Set up groups of three to four students for this exercise. Using whatever
sources are available, including personal interviews with college administrators, each
group should outline an HR scorecard for your college by addressing each of the seven
steps in the process, starting with a short definition of the business strategy for the
college.

Ask each group to present its scorecard to the rest of the class. Have the class play the
role of the board of directors for the college. At the end of each presentation, ask the class
to provide feedback on the scorecard, commenting on the following:

a. How effectively does the scorecard measure (1) organizational outcomes, (2)
workforce competencies and behaviors, and (3) HR system policies and activities?

b. Comment on how effective the scorecard is on the following dimensions:

1. Allowing the board to assess HR’s performance objectively and quantitatively
2. As a tool for the HR manager to build a measurable and persuasive business
case for how HR is contributing to achieving the organization’s strategic goals

Copyright 2020 Pearson Education, Inc 17

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