Fundamentals of Human Resource Management 4th Edition Solutions Gary Dessler

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C H A P T E R

T

O n e

Managing Human Resources Today

Lecture Outline Strategic Overview What s HR Management! Why Is HRM Important to All Managers? Line and Staff Aspects of HRM Line Versus Staff Authority Line Managers’ HRM Responsibilities he HR !epartment The Trends Sha"ing HR Management Wor"force !i#ersity rends echnology and Wor"force rends $lobali%ation and &ompetition 'conomic &hallenges 'conomic and Wor"force (ro)ections Conse#uences $or Today%s HR Managers HR and (erformance HR and (erformance and Sustainability HR and 'mployee 'ngagement HR and the Manager’s Human Resource (hilosophy HR and Strategy Sustainability and Strategic HRM HR and Human Resource &ompetencies HR and the Manager’s S"ills he Human Resource Manager’s &ompetencies HR and 'thics HR&I &ertification The Plan o& This 'oo(  Introduction Staffing* Wor"force (lanning and 'mployment raining and HR !e#elopment &ompensation and otal Re+ards 'mployee and Labor Relations Special Issues in HRM

 In Brief: $his chapter explains %hat human resource management is& its relationship to the management process& and ho% it is changing in response to trends in the %orkplace. 't illustrates %h" kno%ing HR management concepts and techni(ues are important to an" super)isor or manager and %hat trends are influencing HR  management. 'n addition& the chapter explores strategies toda"*s HR managers engage in to deal %ith these trends& the competencies re(uired of HR managers& and the  plan of the book.  Interesting Issues:  Human Resources professionals pla" a ke" role in helping companies meet the challenges of global competition. trategic ob+ecti)es to lo%er costs& impro)e producti)it"& and increase organi,ational effecti)eness are changing the %a" e)er" part of the organi,ation& including the HR  department& does business.

 A))OTATE* O+TL)E I.

What Is Human Resource Management? — The management process

invoves the !oo"ing !unctions# panning, organi$ing, sta!!ing, eading, and controing. The %peope& or personne aspects o! management 'o(s invove

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conducting 'o( anayses) panning a(or needs and recruiting 'o( candidates) seecting 'o( candidates) orienting and training ne" empoyees) managing "ages and saaries) providing incentives and (ene!its) appraising per!ormance) communicating) training empoyees and deveoping managers) (uiding empoyee commitment) (eing *no"edgea(e a(out e+ua opportunity, a!!irmative action, empoyee heath and sa!ety, and handing grievances and a(or reations.  . -hy Is / anagement Important to  anagers — anagers dont "ant to ma*e mista*es "hie managing, such as hiring the "rong person, having their company ta*en to court (ecause o! discriminatory actions, or  committing un!air a(or practices. s a manager any"here in the organi$ation, you "i "ant to improve per!ormance, spend time as an / manager, or (ecome an entrepreneur and re+uire (asic and some advanced *no"edge and s*is in /. 3. 4ine and 5ta!! spects o! / — though most !irms have a human resource department "ith its o"n manager, all managers tend to get invoved in activities i*e recruiting, intervie"ing, seecting, and training. C. 4ine ersus 5ta!! uthority — uthority is the right to ma*e decisions, to direct the "or* o! others, and to give orders. 4ine managers are authori$ed to direct the "or* o! su(ordinates. Their su(ordinates are generay invoved in "or* that directy produces or ses the companys product or service, such as saes or manu!acturing. 5ta!! managers are authori$ed to assist and advise ine managers in accompishing their (asic goas. The su(ordinates o!  sta!! managers are generay invoved in "or* that supports the products or  services, in departments such as Purchasing or 7uaity Contro. / managers are generay sta!! managers. 1. 8rom 4ine to 5ta!! — anagers may move (ac* and !orth !rom ine to sta!! positions over the course o! their careers. 2. 4ine95ta!! / Cooperation — / and ine managers share responsi(iity !or most human resource activity. :. 4ine anagers uman /esource /esponsi(iities —  supervisors are responsi(e !or aspects o! /;personne tas*s such as pacement, training, and deveopment o! empoyees. E. The uman /esource :epartment — The / department provides speciai$ed assistance such as acting as a recruiter, EE< representative, 'o( anayst, compensation manager, training speciaist, or a(or reations speciaist. II.

The Trends Shaping Human Resource Management — uman resource

responsi(iities have (ecome (roader and strategic over time in response to a num(er o! trends. The roe o! / has evoved !rom primariy (eing responsi(e !or hiring, !iring, payro, and (ene!its administration to a strategic roe in empoyee seection, training, and promotion, as "e as paying an advisory roe to the organi$ation in areas o! a(or reations and ega compiance.  . -or*!orce :iversity Trends — The a(or !orce is getting oder and more muti9ethnic. The aging a(or !orce presents signi!icant changes in terms

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o! potentia a(or shortages, and many !irms are instituting ne" poicies aimed at encouraging aging empoyees to stay, or at attracting previousy retired empoyees. =ro"ing num(ers o! "or*ers "ith edercare responsi(iities and high rates o! immigration aso present chaenges and opportunities !or / managers. -ith pro'ected "or*!orce short!as, many empoyers are hiring !oreign "or*ers !or >.5. 'o(s. Technoogy !aciitates aternative "or* arrangements contri(uting to a "or*!orce o!  peope "ho hod mutipe 'o(s, %temporary& empoyees, or contract empoyees. 3. Technoogy and -or*!orce Trends — Technoogica change "i continue to shi!t gro"th in empoyment opportunities in di!!erent occupations. 1. 5ervice 'o(s — ore than t"o9thirds o! the >.5. "or*!orce is empoyed in producing and deivering services, as opposed to products. 2. uman Capita — /e!ers to the *no"edge, s*is, and a(iities em(edded in peope, critica to pro!ita(iity and success. Technoogica and "or*!orce trends have created a gro"ing emphasis on managing human capita. C. =o(ai$ation and Competition — /e!ers to the tendency o! !irms to e?tend their saes, o"nership, or manu!acturing to ne" mar*ets a(road. =o(ai$ation o! the "ord economy and other trends have triggered changes in ho" companies organi$e, manage, and use their / departments. The rate o! go(ai$ation continues to (e high, and has severa strategic impications !or !irms. ore go(ai$ation means more competition, and more competition means more pressure to o"er costs, ma*e empoyees more productive, and do things (etter and ess e?pensivey. :. Economic Chaenges and Trends —  these trends are happening "ithin a conte?t o! economic upheava. >.5. consumers actuay spend more than they earn. The >nited 5tates itse! has (ecome a de(tor  nation. The >.5. has had to (orro" money to *eep (uying more !rom a(road than it sod. 5o much o! the economic (oom "as (uit on de(t, "hich eventuay ran its course. E. Economic and -or*!orce Pro'ections — Today, economic trends are pointing up and "i hope!uy continue to do so. o"ever, recovery !rom the 200@9200A recession is so". 1. >n(aanced a(or !orce B In the economic recovery, the demand !or "or*ers is un(aanced. 5ome occupations have o" unempoyment rates "hie others have high unempoyment rates. The so" gro"th and un(aanced a(or !orce causes pressure on empoyers to get the (est e!!orts !rom their  empoyees. III.

— / management has evoved over the years and is no" much more invoved in strategic panning. The trends discussed a(ove create ne" chaenges !or  empoyers and the !oo"ing responses re!ect /s roe in meeting these chaenges.

Consequences

for

Today’s

Human

Resource

Managers

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 . / and Per!ormance — / must ead the companys per!ormance improvement e!!orts through structuring an e!!icient / department, managing empoyee costs, and "or*ing to"ard strategic resuts. 1. / and Per!ormance easurement B / must use per!ormance measures to vaidate improved per!ormance. 2. / and Evidence9(ased anagement B >sing data, !acts, anaytics, scienti!ic rigor, critica evauation, and criticay evauated research;case studies to support / proposas, decisions, practices, and concusions. . / and dding aue B / must add vaue, "hich means heping the !irm and its empoyees improve in a measura(e "ay as a resut o! the human resource managers actions. 3. / and Per!ormance and 5ustaina(iity —  companys success goes (eyond !inancia per!ormance. 5ustaina(iity trends have important conse+uences !or / management. C. / and Empoyee Engagement — The / !unction must ensure they understand the di!!erence (et"een invovement and commitment. Empoyees cannot (e %chec*ed out& mentay yet sti per!orm at the top o! their game. Empoyee engagement re!ers to (eing psychoogicay invoved in, connected to, and committed to getting ones 'o( done. :. / and the anagers / Phiosophy — Peopes actions are a"ays (ased, in part, on the (asic assumptions they ma*e) this is especiay true in regard to human resource management. The (asic assumptions you ma*e a(out peope — Can they (e trusted :o they disi*e "or* Can they (e creative -hy do they act as they do o" shoud they (e treated — together comprise your phiosophy o! human resource management. nd every personne decision you ma*e — the peope you hire, the training you provide, your eadership stye, and the i*e — re!ects D!or (etter or "orse this (asic phiosophy. E. / and 5trategy — 5trategic / management means !ormuating and e?ecuting human resource poicies and practices that produce the empoyee competencies and (ehaviors the company needs to achieve its strategic aims. 8.

5ustaina(iity and 5trategic / anagement — -hen strategic goas incude sustaina(iity issues, then / managers shoud have / poicies to support these goas.

=. / and uman /esource Competencies — Tas*s i*e !ormuating strategic pans and ma*ing data9(ased decisions re+uire ne" human resource manager s*is. To create strategic pans, !or e?ampe, the human resource manager must understand strategic panning, mar*eting, production, and !inance. . / and the anagers 5*is — / can hep managers (uid the s*is they need to carry out / managementBreated aspects o! their 'o(s such as recruiting, seecting, training, appraising, and incentivi$ing empoyees.

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I.

The / anagers Competencies — Todays / managers need s*is as strategic positioners, credi(e activists, capa(iity (uiders, change champions, innovators and integrators, and technoogy proponents.

F. / and Ethics — Ethics means the standards someone uses to decide "hat his or her conduct shoud (e. / has an important roe in promoting ethica (ehavior at "or*. G. /CI Certi!ication — any / managers use certi!ication to sho" their  mastery o! modern human resource management *no"edge. The / Certi!ication Institute D/CI is an independent certi!ying organi$ation !or  human resource pro!essionas. Through testing, /CI a"ards severa credentias, incuding Pro!essiona in uman /esources DP/, 5enior  Pro!essiona in uman /esources D5P/, and =o(a Pro!essiona in uman /esources D=P/. IV.

The !an of This "oo# — Each topic interacts "ith and a!!ects the others,

and a shoud !it "ithin the empoyers strategic pan.  . Part 1# Introduction 1. Chapter 1# anaging uman /esources Today 2. Chapter 2# anaging E+ua .

Wor#ing indi0idua!!y or in groups< inter0ie/ an HR manager. "ased on that inter0ie/< /rite a short presentation regarding HR’s ro!e today in 4ui!ding competiti0e organi%ations. The response here "i, o! course, depend upon the

organi$ation and / manager intervie"ed. ope!uy, items such as "or*!orce diversity, technoogica trends, go(ai$ation, high9per!ormance "or* systems, / metrics, or ethics "i (e mentioned.

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+,+.

Wor#ing indi0idua!!y or in groups< 4ring se0era! 4usiness pu4!ications such as and the Wall Street Journal  to c!ass. "ased on their content< compi!e a !ist entit!ed< 1What HR Managers and 8epartments 8o Today.2 The Business Week 

students shoud oo* !or artices and advertisements that dea "ith any o! the !oo"ing topics# conducting 'o( anayses, panning a(or needs and recruiting 'o( candidates) seecting 'o( candidates) orienting, training, and deveoping empoyees) managing "ages and saaries) providing incentives and (ene!its) appraising per!ormance) communicating) training and deveoping managers) (uiding empoyee commitment) e+ua opportunity) a!!irmative action) empoyee heath and sa!ety) and a(or reations. +,++.

"ased on your persona! eperiences< !ist + eamp!es sho/ing ho/ you used &or  cou!d ha0e used' human resource management techniques at /or# or schoo!.

:epending on the degree o! their "or* e?perience, students "i cite a "ide range o!  e?ampes possi(y incuding some o! the !oo"ing# 1 situations "here they have improved the e!!iciency o! their "or* through the use o! technoogy made avaia(e to them through human resource systems) 2 empoyed the services o! nontraditiona "or*ers Dor (een empoyed as a nontraditiona "or*er)  deveoped metrics to measure ho" they have added vaue in terms o! human resource contri(utions) H *ept themseves a(reast o! empoyment a" in order to minimi$e ris* to their company)  utii$ed se!9 service / technoogy) 6 empoyed high9per!ormance "or* systems concepts in their   'o( or department. +,+-.

)aurie Siege!< senior 0ice president of human resources for Tyco Internationa! too# o0er her =o4 in -3< =ust after numerous charges forced the company’s pre0ious 4oard of directors and top eecuti0es to !ea0e the firm. Hired 4y ne/ C*$ *d/ard "reen< Siege! had to tac#!e numerous difficu!t pro4!ems starting the moment she assumed office. @or eamp!e< she had to he!p hire a ne/ management team. She had to do something a4out /hat the outside /or!d 0ie/ed as a cu!ture of  questiona4!e ethics at her company. (nd she had to do something a4out the company’s top management compensation p!an< /hich many fe!t contri4uted to the a!!egations 4y some that the company’s former C*$ had used the company as a sort of pri0ate (TM. Siege! came to Tyco after a 0ery impressi0e career. @or eamp!e< she had 4een head of eecuti0e compensation at (!!iedSigna!< and /as a graduate of the Har0ard "usiness Schoo!. "ut< as strong as her 4ac#ground /as< she o40ious!y had her  /or# cut out for her /hen she too# the senior 0ice president of HR position at Tyco. Wor#ing indi0idua!!y or in groups< conduct an Internet search and !i4rary research to ans/er the fo!!o/ing questions # What human resource management,re!ated steps did Siege! ta#e to he!p get Tyco 4ac# on the right trac#? 8o you thin# she too# the appropriate steps? Why or /hy not? What< if anything< do you suggest she do no/?

Tycos top e?ecutives, Dthe Chairman;Chie! E?ecutive as "e as the C8nit# 'o( anayses, panning a(or needs and recruiting, providing advising and training in the seection process, orienting ne" empoyees, managing "age and saary administration, managing incentives and (ene!its, providing and managing the per!ormance appraisa process, organi$ation9"ide communications, and providing training and deveoping services. 5upervisors and