HR Strategy Link to Organizational Strategy

Chapter 2
Strategy and Human
Resources Planning
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accessible website, in whole or in part.
Learning Outcomes
Explain how human resources planning and a firm’s mission,
vision, and values are integrally linked to its strategy
Understand how an organization’s external environment
influences its strategic planning
Understand why it is important for an organization to do an
internal resource analysis
Explain the linkages between competitive strategies and HR
2

Learning Outcomes
Understand what is required for a firm to successfully
implement a strategy and assess its effectiveness
Describe how firms evaluate their strategies and HR
implementation
3
Strategic Planning and Human Resources
Strategic planning
Procedures for making decisions about the organization’s long-
term goals and strategies
Human resources planning (HRP)
Process of anticipating and providing for the movement of
people into, within, and out of an organization
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Strategic Human Resources Management (SHRM)
Pattern of human resources deployments and activities that
enable an organization to achieve its strategic goals
Combines strategic planning and HR planning
Strategy formulation - Provides input as to what is possible
given the types and numbers of people available
Strategy implementation - Makes resource allocation decisions
to implement the devised strategy
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Alignment of HRP and Strategic Planning
Two-way process
A firm’s HR strategy follows the business strategy and helps
implement it
People, culture, and climate of a company constrain a firm’s
ability to achieve strategically
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Step One: Mission, Vision, and Values
Mission
Basic purpose of the organization and its scope of operations
Strategic vision
Clarifies the long-term direction of the company and its
strategic intent
Core values
Strong and enduring beliefs and principles that the company
uses as a foundation for its decisions
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Developing a mission statement
Factors to be considered
Organization’s reason of existence
Need fulfilled by the organization in comparison to the
competitors
Knowledge of the need and methods for fulfilling them
Knowledge of market and the customers
Core values of the firm that will be practiced by the employees
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HR’s role
Communicates mission, vision, and values frequently informally
and formally
Recruit and hire employees whose values are consistent with the
organization
Translate mission, vision, and values into:
Specific on-the-job behaviors
Job descriptions
Basis of employee rewards
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Step Two: External Analysis
Environmental scanning: Systematic monitoring of major
external forces influencing the organization
Business environment: Factors that a firm cannot directly
control but can affect its strategy
Remote environment: Forces that generally affect specific firms
Economy and ecological, technological, social, demographic,
and legal and regulatory changes

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Step Two: External Analysis
Competitive environment: Consists of a firm’s specific industry
Includes the industry’s customers, rival firms, new entrants,
substitutes, and suppliers
HR’s external analysis
Changes in a firm’s remote and competitive environments are
monitored and analyzed
Affect hiring plans, recruitment and replacement polices
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Figure 2.2 - Five Forces Framework

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Step Three: Internal Analysis
Core capabilities: Integrated knowledge sets within an
organization
Distinguish the organization from its competitors and deliver
value to customers
Value creation: What the firm adds to a product or service by
virtue of making it
Value = benefits – costs
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Resources of core capabilities
Processes - Standard routines for how work will be done and
results will be accomplished
Systems - Information systems, databases, and proprietary
technologies
People - Includes knowledge, skills, and abilities of employees

used to create value for customers
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Criteria for sustaining competitive advantage
Resources should be:
Valuable
Rare
Difficult to imitate
Organized
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Trends of employment relationships and HR practices
Strategic knowledge workers
Hold unique skills directly linked to the company’s strategy
Difficult to replace
Core employees
Skills are transferable

Managers invest less in training and development
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Supporting workers
Scope of duties is limited
Employment relationships are transaction-based and focused on
rules and procedures
External partners
Hold skills that are unique and specialized
Skills are not related to the company’s core strategy
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Figure 2.3 - Mapping Human Capital
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Cultural audits: Audits of the culture and quality of work life in
an organization
Firm surveys its employees on how they feel about a number of
issues
Identifies groups with different views about the nature of work
and how it should be done
Clan culture - Employees are closely knit and exhibit concern
for one another
Values their customers, loyalty, and cohesion
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Adhocracy culture - Characterized by risk-taking, innovation,
and a spirit of entrepreneurship
Market culture - Encourages competitive, result-oriented
behaviors
Hierarchical culture - Characterized by formal structures and
procedures
Values efficiency and stability

Value-based hiring: Outlining behaviors that exemplify a firm’s
corporate culture and hiring people who are a fit for them
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Forecasting - Key elements
Forecasting demand for labor
Forecasting supply of labor
Balancing supply and demand considerations
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Figure 2.4 - Model of HR Forecasting
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Forecasting a firm’s demand for employees
Quantitative approaches
Trend analysis: Forecasts labor demand based on an
organizational index such as sales
Modeling or multiple predictive techniques - Combine several
factors to predict employment levels
Qualitative approaches
Management forecasts: Opinions of supervisors, department
managers, or experts, knowledgeable about the organization’s
future employment needs
Delphi technique - Solicits and summarizes judgments of a
preselected group of individuals
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Forecasting the supply of employees
Staffing tables: Graphic representations of all organizational
jobs

Contains numbers of employees currently occupying those jobs
and future employment requirements
Markov analysis: Tracks the pattern of employee movements
through various jobs
Quality of fill: Metric designed to measure how well new hires
are performing on the job
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Skill inventories: Files of personnel education, experience,
interests, and skills
Allow managers to quickly match job openings with employee
backgrounds
Management inventories - Data gathered on managers
Replacement charts: Listings of current jobholders and potential
replacements if an opening occurs, used for succession planning
Succession planning: Identifying, developing, and tracking key
individuals for executive positions
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Human capital readiness: Evaluating the availability of critical
talent in a company and comparing it to the firm’s supply
Difference between the quantity and quality of employees
required and available represent the gap that needs to be
remedied
Provides managers a foundation to establish future strategy and
specific requirements for developing talent to implement it
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Step Four: Formulating Strategy
SWOT analysis: Comparison of strengths, weaknesses,
opportunities, and threats for strategy formulation purposes
Strategy formulation builds on SWOT analysis to devise a
coherent course of action
Corporate strategy
Growth and diversification

Mergers and Acquisitions
Strategic alliances and joint ventures
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Business strategy
Low-cost strategy
Focuses on efficiency, productivity, and minimizing waste
Linked to HR planning through productivity and outsourcing
activities
Differentiation strategy
Based on delivering high-quality products, innovative features,
speed to market, or superior service
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Functional Strategy
Vertical fit/alignment
Focuses on the connection between the business objectives and
the major initiatives in HR
Horizontal fit/alignment
Aligning HR practices with one another internally to establish a
configuration that is mutually reinforcing
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Step Five: Strategy Implementation
Organizations strive for balance between demand and supply
considerations
Demand is based on forecasted trends in business activities
Supply depends on locating required human resource
To meet human resources demands, organizations have staffing
options
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Figure 2.9 - The 7-S Model
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Step Five: Strategy Implementation
If labor shortage is acute, company develops talent from ground
up
Firms restrict hiring, reduce their employees’ work hours, and
consider layoffs when forecasts project surplus employees
Organizations have to be prepared to exit and enter new lines of
business, restructure, outsource, offshore and downsize
HR managers should ensure no laws are violated while
downsizing
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Step Six: Evaluation
Benchmarking: Looking at an organization’s practices and
performances in an area and comparing them with those of other
companies
Gathering competitive information
HR metrics
Human capital metrics assess aspects of the workforce
HR metrics assess the performance of the HR function
Managers can gather informal information on competitors
through certain legal means
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Figure 2.11 - Building the Metrics Model
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Measuring a firm’s strategic alignment
Balanced scorecard (BSC): Helps managers translate strategic
goals into operational objectives
Related cells - Financial, customer, processes and learning
Measuring horizontal fit
Managers identify key workforce objectives they look to
achieve
Identify HR practices used to elicit or reinforce the objectives
Evaluate each HR practice
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Successful HRP helps increase organizational capability
Organizational capability: Capacity of the organization to act
and change in pursuit of sustainable competitive advantage
Flexibility
Coordination flexibility - Ability to rapidly reallocate resources
to new or changing needs
Resource flexibility - Result from having adaptable people and
resources that can be used different ways
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Chapter 4
Job Analysis and Job Design

Learning Outcomes
Explain what a job analysis is, and how the information it
generates is used in conjunction with a firm’s HRM functions
Explain how the information for a job analysis typically is
collected and incorporated into various sections of a job’s
description
Identify and explain the various sections of job descriptions
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Learning Outcomes
Provide examples illustrating the various factors that must be
taken into account when designing a job, including what
motivates employees
Describe the different group techniques and types of work
schedules used to broaden a firm’s job functions and maximize
the contributions of employees
3

Job Analysis
Job: Activity people do and get paid, particularly as part of the
trade or occupation they occupy
Job analysis: Process of obtaining information about jobs by
determining their duties, tasks, or activities
Basic responsibilities
Behaviors
Skills
Physical and mental requirements of the individuals
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4
Job Analysis
Tools needed to do the job
Environment and times at which the job needs to be done
Individuals required to the job
Required outcome or performance level
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Major Parts of Job Analysis
Job description: Statement of the tasks, duties, and
responsibilities of a job to be performed
Job specification: Statement of the specific knowledge, skills,
abilities, and other attributes (KSAO) of a person required to
perform the job
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Figure 4.1 - Job Analysis: The Cornerstone of HRM Functions
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Sources of Job Analysis Information
Interviews
Job analyst interviews individual employees and their managers
about the parameters of the job
Questionnaires
Job analyst circulates questionnaires to be filled out
individually by employees without assistance
Observation
Job analyst learns about the job by observing and recording the
activities associated on a standardized form
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Sources of Job Analysis Information
Dairies
Employees are asked to keep diaries of their work activities for
an entire work cycle
Filled out at specific times of the work shift and maintained for
a two- to four-week period

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Figure 4.2 - The Job Analysis Process
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Controlling the Accuracy of the Job Data Collected
Job analyst should look for any responses of disagreement with
other facts or impressions received about the job
Information should be collected from all individuals doing the
same job, instead of one or two jobholders
After job analysis is done, it should be checked for accuracy by
the jobholders and their managers
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Other Sources of Job Analysis Information
Functional job analysis
Approach utilizing an inventory of the various types of work
activities constituting in any job
Basic activities called worker functions describe what workers
do with regard to information, people, and things
Each job function is assigned a percentage in terms of its
importance to the job
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Position analysis system
Questionnaire identifying approximately 200 different worker
tasks using a five-point scale
Seeks to determine the degree, if any to which the different

tasks, or job elements, are involved in performing a particular
job
Results obtained are quantitative and can be subjected to
statistical analysis
Permits jobs to be grouped on the basis of common
characteristics
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Critical incident method: Method by which important job tasks
are identified for job success
Identifies critical job tasks
Responsibilities and behaviors performed by the job holder
Used to identify positive and negative behaviors
Combination of which shows the path to effectiveness
Information can be collected through interviews with employees
or managers or through self-report statements written by
employees
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Task inventory analysis: Organizing specific list of tasks and
their descriptions used as a basis to identify components of jobs
Uses a standardized form to analyze jobs in different
organizations
List of tasks and their descriptions for different jobs are
developed and rated on their importance
Goal - To produce a comprehensive list of task statements
applicable to all jobs
Listed on task inventory survey form to be completed by the
individual analyzing the job under review
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Competency-based approach
Looks into the competencies or capabilities and adaptability to
new job challenges
Identifies key competencies for the organization’s success

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Figure 4.3 - Form Used to Gather Information for a
Competency-Based Job Analysis
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Parts of a Job Description
Job title
Provides status to the employee
Indicates what the duties of the job entail
Indicates the level of the job in the organization
Job identification
Contains administration information

Numerical code for the job, reporting authority, and wage
information, number of employees in the department, job
location
Distinguishes the job from other jobs in the organization
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Parts of a Job Description
Job duties
Arranged in order of importance in statements covering them
Indicating the weight or value of each duty
Employers need to show that the job criteria relates specifically
to the duties of the job in selecting employees
Duties must be essential functions for success on the job
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Job Specifications
Areas of qualifications
Skills required to perform the job
Physical demands the job places on the employee doing it
Includes interpersonal skills if a competency-based job analysis
approach is used
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Problems Associated with Job Descriptions
Provide little guidance to the jobholder if written poorly, using
vague rather than specific terms
Not updated as per the changes in job duties or specifications
Violating the law by containing specifications not related to job
success
Limit the scope of activities of the jobholder, reducing an
organization’s flexibility
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Job Design
Outgrowth of job analysis
Focuses on restructuring jobs to capture
Talents of employees, improve their work satisfaction, and
enhance an organization’s performance
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Figure 4.4 - Top-Down versus Bottom-Down Job Design
Approaches
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Top-down Approaches
Industrial engineering: Field of study concerned with analyzing
work methods and establishing time standards
Ergonomics
Process of studying and designing equipment and systems for
easy and efficient use by employees to:
Safeguard their physical well-being
Get work done more efficiently
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Bottom-up Approaches
Enrichment
Designed to fulfill high motivational needs of employees
Aims to enrich a job for the intrinsic motivation of employees
versus extrinsic motivation
Job characteristics model
Proposes that psychological states of a jobholder result in:
Improved work performance
Internal motivation
Lower absenteeism

Turnover
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Bottom-up Approaches
Psychological states of a jobholder
Experiencing meaningfulness of the work performed
Responsibility for work outcomes
Knowledge of the results of the work performed
Techniques used enrich jobs
Job enlargement: Process of adding variety of tasks to a job
Job rotation: Process whereby employees rotate in and out of
different jobs
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Figure 4.5 - Job Characteristics Model
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Bottom-Up Approaches
Empowerment: Granting employees power to initiate change and
encouraging them to take charge of what they do
Encourages workers to become innovators and managers of their
own work
By involving in their jobs in ways that give control and
autonomous decision-making capabilities
Objective - To develop adaptable jobs and basic work units to
thrive in a world of high-velocity change
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Empowerment Techniques
Participation
Innovation
Access to information
Accountability
Job crafting: Employees mold their tasks to fit their individual
strengths, passions, and motives better
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Employee Teams
Employee team: Group of individuals working together toward a
common purpose where members:
Have complementary skills
Are mutually dependent
Have discretion over tasks performed
Share responsibility and accountability for performance
Benifits
Solves unique and complex problems
Improves collaboration among workers and their morale
Creates better goods and services
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Employee Teams
Forms of teams
Cross-functional
Project
Self-directed
Task-force
Process-improvement
Virtual
Dejobbing: Process of structuring organizations around
constantly changing projects having different team members
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Characteristics of Successful Teams
Commitment to shared goals and objectives
Motivated and energetic team members

Open and honest communication
Shared leadership
Clear role assignments
Climate of cooperation, collaboration, trust, and accountability
Recognition of conflict and its positive resolution
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Flexible Work Schedules
Flextime
Gives the option of employees choosing daily start and quit
times, provided they work a certain number of hours per day or
week
Advantages
Allows employees greater flexibility in work scheduling
reduces causes of tardiness and absenteeism
Accommodates individuals lifestyles
Gaining greater job satisfaction
Can schedule work hours based on productivity
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Compressed workweek
Process of shortening days in the workweek by lengthening the
hours of work per day
Advantages
Recruitment and retention of employees
Coordinates employee work schedules with production
schedules
Accommodates employees leisure time activities facilitating
personal appointments
Improves employee job satisfaction and morale
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Disadvantages
Involving federal laws regarding overtime
Increases stress experienced due to exhausting long workdays
Job sharing

Arrangement where two part-time employees perform a job
which otherwise is held by one full-time employee
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Advantages
Suits to families where one or both spouses desire to work only
part-time
Suits older workers willing to phase into retirement by
shortening workweek
Work of part-time employees can be scheduled:
To conform peaks in the daily workload
Limits layoffs in hard economic times
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Disadvantages
Time required to orient and train a second employee constitutes
an added burden
Difficulty in supervising job sharers cannot effectively work
together
Telecommuting
Use of smart phones, tablets, personal computers , and other
communications technology to do work traditionally done in the
workplace
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Advantages
Increased flexibility for employees
Reduced absenteeism
Retention of valued employees who might otherwise quit
Reduced carbon footprints through minimizing daily commuting
Increased productivity in terms of reduced wasted office time
Lower overhead costs and reduced office space
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Disadvantages
Employees lack the self-discipline to work at home
Employees lack of face to face interaction with one another on a
regular basis
Doesn’t work as well as working at least one or two days a
week in the office
Employers must comply with all federal EEO regulations
Employees who are denied telecommuting feel discriminated
and resent telecommuters
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Figure 4.7 - Keys for Successful Telecommuting
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Chapter 3
Equal Employment Opportunity and Human Resources
Management
Learning Outcomes
Prepare an outline describing the major equal employment
opportunity (EEO) laws related to issues such as age, gender,
religion, weight, and sexual orientation. Determine the
employment practices they prohibit and the reason behind
passage of EEO legislation. Describe what a bona fide
occupational qualification is
Explain how the Uniform Guidelines on Employee Selection
Procedures were developed and how firms use them to ensure
they are abiding by the law. Understand adverse impact and

disparate treatment
2
Learning Outcomes
Understand EEOC record-keeping and posting requirements and
describe how discrimination charges are processed by the EEOC
Explain what affirmative action is and how companies today are
seeing the value of voluntarily having diverse workforces
3
Introduction
Equal employment opportunity (EEO)
Treatment of individuals in all aspects of employment—hiring,
promotion, and training in a fair and nonbiased manner
Equal employment opportunity commission (EEOC)
Federal agency that enforces nation’s fair employment laws
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Introduction
Lack of awareness fair employment laws leads to:
Risk of costly and time-consuming litigation
Negative public attention
Low sales and employee morale
Damage an individual’s careers
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Historical Perspective of EEO Legislation
Factors that influenced growth of EEO legislation
Changing attitudes toward employment discrimination
Published reports on economic problems and injustices
experienced by minority workers

Growing body of disparate discrimination laws and regulations
at different levels of government that legislators felt should be
standardized
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Changing National Values
Beginning of civil rights movement in late 1950s and early 1960
saw public’s change in attitude toward discrimination
Minorities conducted marches, sit-ins and rallies with public
authorities to draw attention to low economic and occupational
positions
Civil rights and women’s movements received wide media
coverage
Employment Non-Discrimination Act extends federal
employment discrimination protection to include sexual
orientation and gender identity
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Early Legal Developments
Civil Rights Act, 1866
Permitted right to enjoy full and equal benefits of all laws,
regardless of race
Unemployment Relief Act, 1933
Prohibited employment discrimination based on race, color, or
creed
Executive Order 8802, 1941
Ensured every American citizen would be guaranteed equal
employment opportunities for workers employed by firms
awarded World War II defense contracts
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Causes for Failure of Employment Discrimination
Nondiscrimination laws failed to give enforcement powers to
the agency charged with upholding the law
Laws that were passed neglected to list specific discriminatory
practices that needed to be corrected
Employers covered by the acts were required only to comply
voluntarily with the equal employment opportunity legislation
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Figure 3.1 - Prohibited Discriminatory Employment Practices
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Major Federal Laws
Enacted to prevent discrimination against the protected classes
Protected classes: Individuals of a minority race, women, older
people, and those with disabilities who are covered by federal
laws on equal employment opportunity
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Equal Pay Act of 1963
Illegal to discriminate against people in terms of pay, employee
benefits, and pension earned based on gender, when equal work
is done
A company does not violate the Equal Pays Act if the difference
in wages between the genders is due to:
Seniority
Merit considerations
Worker’s quantity and quality of production
If a disparity in pay exists, employers must raise the wages of
the underpaid gender to comply with the laws
Not lower the wages of the overpaid gender
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Civil Rights Act of 1964
Addresses discrimination in society in general
Title VII of the acct specifically bars employment
discrimination in all HR activities and other conditions of
employment
Jurisdiction
All private employers in interstate commerce who employ 15 or
more employees for 20 or more weeks per year
State and local governments and private and public employment
agencies
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Joint labor-management committees that govern apprenticeship
or training programs
Labor unions having 15 or more members or employees
Public and private educational institutions
Foreign subsidiaries of U.S. organizations employing U.S.
citizens
Bona Fide Occupational Qualification (BFOQ): Suitable defense
against a discrimination charge only when age, religion, sex, or
national origin is an actual qualification for performing the job
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Title VII of the Civil Rights Act
Prohibits employment discrimination based on a person’s
religion
Does not require employers to grant complete religious freedom

in employment situations
Requires employers make a reasonable accommodation without
incurring undue hardship in conduct of the business
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Figure 3.2 - Major Laws Affecting Equal Employment
Opportunity
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Figure 3.4 - EEO Rules Applicable to Federal Contractors and
Agencies
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Fair Employment Practices (FEPs)
State and local laws governing equal employment opportunity
that are more comprehensive than federal laws and apply to
small employers
Prohibits discrimination based on a person’s sexual orientation,
physical appearance, marital status, arrest records, color
blindness, or political affiliation
Fair Employment Practice Agencies (FEPAs) - State and local
agencies that enforce antidiscrimination laws
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Other Equal Employment Opportunity Issues - Sexual
Harassment
Unwelcome advances, requests for sexual favors, and other
verbal or physical conduct of a sexual nature in the working
environment
Forms of sexual harassment illegal under -Title VII
Quid pro quo harassment

Occurs when submission to or rejection of sexual conduct is
used as a basis for employment decisions
Involves a tangible or economic consequence such as demotion
or loss of pay
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Harassment
Hostile environment
Occurs when unwelcome sexual conduct has purpose or effect of
unreasonably interfering with job performance or creating an
intimidating, hostile, or offensive working environment
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Orientation

Executive Order 13087 bars discrimination against civilian
employees of federal government based on their sexual
orientation
Homosexuals are protected by fair employment practice laws
passed at state and local levels
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Other Equal Employment Opportunity Issues - Immigration
Reform and Control Act (IRCA)
Employers must comply with the requirements of Immigration
Employers covered by law are prohibited from knowingly hiring
or retaining unauthorized aliens on the job
Employers with four or more employees are prohibited from
discriminating in hiring or termination decisions based on
nationality or citizenship
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Other Equal Employment Opportunity Issues - Immigration
E-Verification system - Provides an automated link to federal
databases to help employers determine:
Legal eligibility of workers
Validity of their Social Security numbers
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Actions for Employers to Comply with IRCA
Have employees fill out their part of Form I-9
Check documents establishing an employee’s identity and
eligibility to work
Complete the employer’s section of Form I-9
Retain Form I-9 for at least three years
Present Form I-9 for inspection to an Immigration and
Naturalization Service officer or to a Department of Labor
officer upon request
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Emerging Employment Discrimination Issues
Weight discrimination
Attractiveness and discrimination
Caregivers and discrimination
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Uniform Guidelines on Employee
Selection Procedures
Procedural document published in the Federal Register to help
employers comply with federal regulations against
discriminatory actions
Applies to employee selection procedures in:
Hiring, retention, and referral
Promotion and demotion
Transfer and dismissal
Help comply with requirements of federal laws prohibiting
employment discrimination
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Uniform Guidelines on Employee Selection Procedures -
Validity
Employers must be able to prove that selection instrument used
to choose individuals for employment, bears a direct
relationship to job success
Validation studies prove the relatedness of the test to the job
under study
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Uniform Guidelines on Employee Selection Procedures -
Adverse Impact and Disparate Treatment
Adverse impact
Rejection of a significantly higher percentage of a protected

class for employment, placement, or promotion when compared
with the successful, nonprotected class
Ways to show existence of adverse impact
Adverse rejection rate or Four-fifths rule
Selection rate for any racial, ethnic, or sex class is less than
four-fifths of the rate of the class with the highest selection rate
Conduct standard deviation analysis of firm’s applicant data
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Restricted Policy, Disparate Treatment, and Workforce
Utilization Analysis
Evidence that an employer has a selection procedure that
excludes members of a protected class, whether intentional or
not, constitutes adverse impact
Restricted policy
Situation in which protected class members receive unequal
treatment or are evaluated by different standards
Involves instances of purposeful discrimination
Disparate treatment
Process of classifying protected-class members by number and
by the type of job they hold within the organization
Workforce utilization analysis
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Enforcing Equal Employment
Opportunity Legislation
Factors used to accomplish the goals of EEOC
Issuing various employment guidelines and monitoring the
employment practices of organizations
Protecting employee rights through the investigation and
prosecution of discrimination charges
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Equal Employment Opportunity Commission
Formulate EEO policy and approve litigations involved in
maintaining equal employment opportunity
Encourage employees, who file a claim, to call on its toll-free
number or fill out a questionnaire online
Commission then begins process of evaluation to determine

weather the complaint is covered by the laws it enforces
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Record-Keeping and Posting Requirements
Organizations subject to Title VII are required to maintain
employment records and reports
Federal contractors and subcontractors have special EEO
reporting requirements
Failing to comply incur penalties
Fines and imprisonment
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Figure 3.5 - Filing a Charge of Employment Discrimination

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Processing Discrimination Charges - Retaliation
Managers and supervisors cannot retaliate against individuals
who invoke their legal rights to file charges or to support other
employees during EEOC proceedings
Title VII states that an employer may not discriminate against
his employees because employee has:
Opposed any unlawful employment practice
Made a charge, testified, assisted or participated in an
investigation, proceedings, or hearings under this Act
Includes punitive action taken against employees who elect to
exercise their legal rights before any EEO agency
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Preventing Discrimination Charges
Done by having a comprehensive EEO policy
Requirements of an antidiscrimination policy statement
Must be inclusive
Cover all applicable laws and EEOC guidelines
Contain practical illustrations of specific inappropriate behavior
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Preventing Discrimination Charges
Factors of comprehensive training program include:
Prohibitions covered in the various EEO statutes and executive
orders
Guidance on how to respond to complaints of discrimination
Procedures for investigating complaints
Suggestions for remedying inappropriate behavior
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Affirmative Action and Diversity Management
Affirmative action: Requires organizations to comply with the
law and correct any past discriminatory practices by increasing
the numbers of minorities and women in specific positions
Regulations for employers to establish action plans
Provide an organizational profile that graphically illustrates
their workforce demographics
Establish goals and timetables for employment of underutilized
protected classes
Develop actions and plans to reduce underutilization
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Affirmative Action and Diversity Management
Monitor progress of the entire affirmative action program
Chief diversity officer (CDO): Top executive responsible for
the implementation of a firm’s diversity efforts
Drawback of affirmative action program
Reverse discrimination: Act of giving preference to members of
protected classes to the extent that unprotected individuals
believe they are suffering discrimination
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Court Decisions
Supreme Court ruled that:
Applicants must be evaluated on an individual basis
Race can be one factor used in evaluation process as long as
other competitive factors are considered
Supreme court did not endorse all voluntary affirmative action
programs
Encouraged programs that voluntarily implemented and
designed to correct past racial or gender imbalances
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Beyond Affirmative Action: Leveraging Diversity
Future of affirmative action rests in managers’ attitudes and
voluntary actions to make workplace fairer and more

competitive
Diverse workforce enables a company to keep up with changes
Steps toward leveraging people’s differences involve:
Seeing
Understanding
Valuing
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40
Figure 3.6 - Steps to Leveraging Employee Differences
41
Chapter 1
The Rewards and Challenges of Human Resources Management

Learning Outcomes
Explain how human resources managers and other managers can
have rewarding careers by helping their firms gain a sustainable
competitive advantage through the strategic utilization of
people
Explain how good human resources practices can help a firm’s
globalization, corporate-social responsibility, and sustainability
efforts
Describe how technology can improve how people perform and
are managed
2
Learning Outcomes
Explain the dual goals HR managers have in terms increasing
productivity and controlling costs
Discuss how firms can leverage employee differences to their

strategic advantage and how educational and cultural changes in
the workforce are affecting how human resources manager
engage employees
Provide examples of the roles and competencies of today’s HR
managers and their relationship with other managers
3
Human Resources Management
Process of managing human talent to achieve an organizatio n’s
objectives
Importance
Managers play a key role in selecting, training, motivating,
appraising and promoting employees
Good personnel help build business
Helps understand one’s rights and responsibilities as an
employee
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4

Human Capital and HRM
Human capital: Knowledge, skills, and capabilities of
individuals that have economic value to an organization
Intangible and cannot be managed the way organizations
manage jobs, products, and technologies
Organizations should utilize employee knowledge and invest in
their development
5
5
Figure 1.1 - Overall Framework of Human Resource
Management
6

6
Responding Strategically to Changes in the Marketplace
Making adjustments in labor force
Downsizing: Planned elimination of jobs
Outsourcing: Hiring outside the company to perform processes
previously done within the firm
Offshoring: Sending jobs to other countries
Implementing cost-cutting strategies
Enhancing benefit programs
Improving quality
Expanding market shares and product lines
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7
People resist change as it involves modifying or abandoning
familiar ways of working
To manage change, executives and managers have to:
Envision the future
Communicate vision to the employees
Set clear expectations for performance
Develop capabilities to execute by reorganizing people and

reallocating assets
Make an investment in implementing and sustaining the change
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8
Organization that successfully engineers change:
Links it to the business strategy
Shows how it creates quantifiable benefits
Engages key employees, customers, and suppliers early
Makes an investment to implement and sustain it
Strategic changes could be proactive or reactive
To provide knowledge on core business issues, companies:
Assign HR representatives to core business teams
Rotate non-HR managers into HR positions and vice versa
9

9
Competing, Recruiting, and Staffing Globally
Integration of world economies and markets have led companies
to:
Look for opportunities abroad
Fend off foreign competitiors domestically
Search for the right employees
Companies are making it possible for people to buy anything,
anytime, anywhere
Companies of all sizes are engaging in partnerships, mergers,
and acquisitions
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10
National identities of products are blurring
Lower trade barriers with free-trade agreements
General Agreements on Tariffs and Trade (GATT) paved the
way for North American Free Trade Agreement (NAFTA) and
European Union
GATT was replaced by the World Trade Organization (WTO)
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11
Issues in HRM due to globalization
Dealing with better informed employees who are willing to
pursue global job opportunities
Gauging the knowledge and skill base of workers worldwide
Understanding how to hire and train them
Relocating and training foreign managers abroad to direct the
efforts of an international workforce
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12
Setting and Achieving Corporate Social Responsibility and
Sustainability Goals
Corporate social responsibility: Responsibility of the firm to act

in the best interests of the people and communities affected by
its activities
Improves company’s earnings and helps avoid lawsuits
Sustainability: Ability to produce a good or service without
damaging the environment or depleting a resource
Companies are making strides to reduce their carbon footprints
HR should spearhead the development and implementation of
corporate citizenship
13
13
Technology Challenges
Organizations are taking advantage of information technology
advancements
Collaborative software: Allows workers to interface and share
information with one another electronically
Shift from touch labor to knowledge workers
Knowledge workers: Workers whose responsibilities extend
beyond the physical execution of work to include planning,
decision-making, and problem-solving
Companies spend on training and virtual learning
14

14
Technology Challenges
Human resources information system (HRIS)
Provides current and accurate data for purposes of control and
decision-making
Used to:
Automate payroll processing and administer benefits program
Access employee records
Recruit, screen, and pretest applicants online
Train, track, and select employees
Open source HRIS software can be good low cost solution for
startups and small businesses
15
Productivity and Cost Challenges - Maximizing Productivity
Productivity - Output gained from a fixed amount of inputs
Can be increased by:
Reducing inputs

Adding more human and physical capital to the process
Additional productivity will have to come from:
Enhanced ability of employees
Motivation
Work environment
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16
Productivity and Cost Challenges - Managing the Size of the
Workforce
Should match the firm’s demand requirements, strategic
decision, and competition
Offshoring - Aids quicker delivery of products
Outsourcing - Helps reduce costs and focus on important
activities
Nearshoring: Bringing jobs closer to domestic countries
17

17
Productivity and Cost Challenges - Managing the Size of the
Workforce
Homeshoring: Outsourcing work to domestic workers who work
out of their homes
Furloughing: Practice of requiring employees to take time off
for either no pay or reduced pay
Hiring part-time employees
18
Productivity and Cost Challenges - Managing Pay and Benefits
Concerns - High health care costs and compliance with new
health reforms
Companies are charging higher premiums to cover spouses
Provide employees a set amount to purchase health insurance on
their own
Employee leasing: Dismissing employees who are then hired by
a leasing company and contracting with that company to lease
back the employees
Provides benefits that small companies cannot afford
19

19
Responding to the Demographic and Diversity Challenges of the
Workforce
HR managers analyze the capabilities of demographic groups
and how well each is represented in fast-growing and slow-
growing occupations
Forecast trends to support organizational strategies
Labor force participation rate - Number people employed or
actively looking for work
Ethnic and racial differences
Age and gender distribution
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20

Figure 1.2 - Labor Force Participation Rates of Workers of
Hispanic origin versus Non-Hispanic Origin
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21
Figure 1.3 - Labor Force Participation Rates of Workers in the
Labor Force by Their Ages
22
22
Figure 1.4 - Labor Force Participation Rates by Gender
23

23
Adapting to Educational Shifts Affecting the Workforce
Education attainment of the labor force has risen dramatically
Helps a person stay out of the ranks of the unemployed
American students are said to lag behind in math and science
test scores
HR managers have to find strategies to help their firms
compete, despite challenges
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24
Adapting to Cultural and Societal Changes Affecting the
Workforce
Culture and society affect one’s behavior on the job and the
environment within the organization
Influences reactions to:

Work assignments
Leadership styles
Reward systems
HR policies should be adjusted to cope with ongoing changes
Changing employee rights
Heightened privacy concerns of employees
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Adapting to Cultural and Societal Changes Affecting the
Workforce
Employers are implementing privacy policies, limit the use of
social security numbers and conduct background checks
Excessive monitoring could lead to ligation
Changing attitudes toward work and how they relate to
employee engagement
Employees are focused on finding interesting work and pursuing
multiple careers
Employee engagement: Extent to which employees are enthused
about their work and committed to it
Balancing work and family
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26
Role of HR Managers and T heir Partnership with Other
Managers
HR managers help firms choose the best strategies to compete
globally
Select ideal HR systems, maximize productivity and manage
benefits
Successful organizations combine the experience of line
managers with the expertise of HR managers
To develop and utilize the talents of employees to their greatest
potential
Line managers: Non-HR managers who are responsible for
overseeing the work of other employees
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27

Role of HR Managers and Their Partnership with Other
Managers
Responsibilities of human resources managers
Strategic advice and counsel
Service
Policy formulation and implementation
Employee advocacy
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28
Figure 1.7 - Human Resource Competency Model
29

HR Strategy Link to Organizational Strategy

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