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Chapter 1:
1. Explain what HR management is and how it relates to the management process. There are five basic
functions that all managers perform: planning, organizing, staffing, leading, and controlling. HR management
involves the policies and practices needed to carry out the staffing (or people) function of management. HR
management helps the management process to avoid mistakes and get results.
2. Give examples of how HR management concepts and techniques can be of use to all managers. HR
management concepts and techniques can help all managers to ensure that they get results – through others.
These concepts and techniques also help you to avoid common personnel mistakes such as: hiring the wrong
person; experiencing high turnover; finding your people not doing their best; wasting time with useless
interviews; having your company taken to court because of discriminatory actions; having your company cited
under federal occupational safety laws for unsafe practices; having some employees think their salaries are
unfair and inequitable relative to others in the organization; allowing a lack of training to undermine your
department’s effectiveness, and committing any unfair labor practices.
3. Illustrate the HR responsibilities of line and staff managers. Line managers are someone's boss; they direct
the work of subordinates in pursuit of accomplishing the organization's basic goals. Some examples of the HR
responsibilities of line managers are: placing the right person on the job; starting new employees in the
organization (orientation); training employees for jobs that are new to them; improving the job performance of
each person; gaining creative cooperation and developing smooth working relationships; interpreting the
company’s policies and procedures; controlling labor costs; developing the abilities of each person; creating and
maintaining department morale; and protecting employees’ health and physical conditions. Staff managers
assist and advise line managers in accomplishing these basic goals. They do, however, need to work in
partnership with each other to be successful. Some examples of the HR responsibilities of staff managers
include assistance in hiring, training, evaluating, rewarding, counseling, promoting, and firing of employees,
and the administering of various benefits programs.
4. Why is it important for a company to make its human resources into a competitive advantage? How can
HR contribute to doing so? Building and maintaining a competitive advantage is what allows a company to
be successful, and to remain profitable and in business. HR can make a critical contribution to the competitive
advantage of a company by building the organizational climate and structure that allows the company to tap its
special skills or core competencies and rapidly respond to customers' needs and competitors' moves.
Chapter 3:
1. Give an example of hierarchical planning in an organization.
Top management approves a long-tem or strategic plan. Then each department, working with top
management, creates its own budgets and other plans to fit and to contribute to the company’s
long-term plan.
2. What are the main components of a business plan? Describe each briefly. How would you
set motivational goals?
There are no rigid rules regarding what such a plan should contain. However, they usually
include, at a minimum, (1) a description of the business including the ownership and products or
services, (2) the marketing plan, (3) the financial plan, and (4) the management and/or personnel
plan. The business plan invariably guides every functional department in the firm, from sales and
marketing to manufacturing and finance.
Goals are only useful if employees are motivated to achieve them. Research known as the goal-
setting studies provides useful insights into setting motivational goals. This research suggests
that firms should: assign specific goals, assign measurable goals, assign challenging but doable
goals, and encourage participation.
3. What is the difference between a strategy, a vision, and a mission? Give one example of
each.
A strategy identifies a course of action to get the company from where it is today to where it
wants to be tomorrow. One example of a company’s strategy given in the text is Dell Computer’s
strategy to be a “low cost leader” by using the Internet and phone to sell PCs directly to end users
at prices competitors cannot match.
A vision is a general statement of the company’s intended direction that evokes emotional
feelings in employees. It is a “mental image” of a possible and desirable future state for the
organization, and articulates a view of a realistic, credible, attractive future of the organization
that is better than what now exists. For example, the vision for the California Energy
Commission is “for Californians to have energy choices that are affordable, reliable, diverse,
safe, and environmentally acceptable.”
The mission is a more specific and shorter term statement which lays out what is supposed to be
now, communicating “who we are, what we do, and where we’re headed.” Following the
vision for the California Energy Commission, their mission is to “assess and act through
public/private partnerships to improve energy systems that promote a strong economy and a
healthy environment.”
4. Define and give at least two examples of the cost leadership competitive strategy and the
differentiation competitive strategy.
The cost leadership competitive strategy means that the enterprise aims to become the low-cost
leader in an industry. For example, stores such as Staples and Office Max maintain their
competitive advantage by selling large quantities of office products at low prices. Airlines such as
Southwest offer low fares in addition to quick turnarounds at the gate.
In a differentiation competitive strategy, firms seek to be unique in its industry along dimensions
that are widely valued by buyers. For example, Ocean Spray Cranberries charges a premium
price for their juices, stressing premium high-quality ingredients. Visa differentiates itself by
being accepted as a form of payment universally where other credit cards are not.
6. What is a high-performance work system? Provide several specific examples of the typical
components in a high-performance work system.
High Performance Work Systems are characterized by high involvement organizational practices,
(such as job enrichment and team-based organizations), high-commitment work practices (such as
improved employee development, communications, and disciplinary practices), and flexible work
assignments. The evidence suggests that companies that employ HPWS practices produce better
productivity, quality, sales and financial performance. What makes the HPWS unique is the
quality, quantity, and specific features of the HR policies and practices. Each element is designed
to maximize the overall quality of human capital throughout the organization. Several
characteristics of high performance work organizations include multi-skilled work teams;
empowered frontline workers; more training; labor management cooperation; commitment to
quality; and customer satisfaction.
7. Define what an HR Scorecard is, and briefly explain each of the seven steps in the strategic
management process.
The HR Scorecard is a concise measurement system that shows the metrics the firm
uses to measure HR activities, measures the employee behaviors resulting from these
activities, and measures the strategically relevant organizational outcomes of those
employee behaviors. It highlights the causal link between the HR activities, and the
emergent employee behaviors, and the resulting firm-wide strategic outcomes and
performance.
1. Define the business strategy – In this step, management translates its broad strategic
plans into specific actionable goals.
2. Outline the company’s value chain – Here the manager identifies the strategically
relevant outcomes and required employee behaviors by identifying the value chain, which
identifies the primary activities that create value for customers and the related support
activities. The value chain is a tool for identifying, isolating, visualizing, and analyzing the
firm’s strategic activities and strategic costs. This step allows managers to better understand
the activities that drive performance in their company.
3. Outline a Strategy Map – A summary of the chain of major activities that contribute to a
company’s success, the strategy map shows the “big picture” of how each department’s
performance contributes to the achievement of company goals.
6. Identify the required HR system policies and activities – The question in this step is
“what HR system policies and activities will enable us to produce those workforce
competencies and behaviors?” The answer might include things like special training
programs or changing the compensation plan. These policies and activities are often referred
to as “HR enablers,” which create and make possible the HR “performance drivers” – the
workforce competencies and behaviors that produce the strategically relevant organizational
outcomes. Once these enablers are identified, the next question that follows is “what specific
form should these policies and activities take?” How and to what end should systems and
processes be changed? The HR system must be aligned with the company’s specific
strategic needs. At this point, the HR manager must become precise about the actual form
and design of the firm’s HR deliverables.
7. Create the HR Scorecard – In this step, the question is how are the organizational
outcomes, workforce competencies and behaviors, and HR system policies and activities
measured? Just a few sample measures for assessing HR performance drivers could be
employee attitude surveys, employee turnover, level of organizational learning, employee
productivity, percentage of retention of high performing key employees, number of hours of
training employees receive every year, and percentage of the workforce routinely working in
a self-managed team. These types of measures allow the company to assess HR’s
performance objectively and quantitatively, and also enable the HR manager to build a
measurable and persuasive business case for how HR contributes to achieving the
company’s strategic financial goals.
8. Choose HR Scorecard Measures – Find a balance of financial and non-financial
goals, with both short and long-term foundations.
10. Monitor, Predict, Evaluate – The HR Scorecard’s various measures will not always stay the
same, and should be evaluated periodically to ensure they are still valid.
Chapter 4:
1. What items are typically included in the job description? What items are not shown? A job description is
a written statement of what the jobholder actually does, how he or she does it, and under what conditions the job
is performed. There is no standard format for writing job descriptions, but most descriptions include sections
on:
job identification
job summary
relationships, responsibilities, and duties
authority of incumbent
standards of performance
working conditions
job specifications
2. What is job analysis? How can you make use of the information it provides? Job analysis is the procedure
through which you determine the duties and nature of the jobs and the kinds of people who should be hired for
them. You can utilize the information it provides to write job descriptions and job specifications, which are
utilized in recruitment and selection, compensation, performance appraisal, and training.
3. We discussed several methods for collecting job analysis data—questionnaires, the position analysis
questionnaire, and so on. Compare and contrast these methods, explaining what each is useful for and
listing the pros and cons of each. Interviews are probably the most widely used method of collecting
information for job analysis. The interview allows the incumbent to report activities that might not otherwise
come to light (mental activities and activities that occur only occasionally). Observation is useful for jobs that
consist mainly of physical activity that is clearly observable. Questionnaires are a quick and efficient way of
obtaining information from a large number of employees; however, development costs can be high. Participant
diary/logs can provide a comprehensive picture of a job, especially when supplemented with interviews;
however, many employees do not respond well to the request to record all their daily activities. Quantitative job
analysis techniques, such as PAQ, DOL, and Functional Job Analysis are more appropriate when the aim is to
assign a quantitative value to each job so that jobs can be compared for pay purposes.
4. Describe the types of information typically found in a job specification. It should include a list of the
human traits and experience needed to perform the job. These might include education, skills, behaviors,
personality traits, work experience, sensory skills, etc.
5. Explain how you would conduct a job analysis. There are six major steps in a well-conducted job analysis:
1) Determine how the job analysis information will be used and how to collect the necessary information; 2)
Collect background information such as organization charts, process charts, and job descriptions; 3) Select
representative positions to be analyzed; 4) Collect job analysis information; 5) Review the information with the
participants; 6) Develop job descriptions and job specifications.
6. Do you think companies can really do without detailed job descriptions? Why or why not? Either side is
an acceptable position to take. The key to grading this answer is the quality of the “why or why not”
explanations. Look for students to clearly explain their position in terms of the effects of the lack of job
descriptions on the performance, motivation, and capabilities of the people doing the job. In light of the
Americans with Disabilities Act, discussions should also touch upon how an organization can adequately
identify the “essential functions” of jobs without job descriptions.
7. In a company with only 25 employees, is there less need for job descriptions? Why or why not? It is
clearly more difficult to write job descriptions for positions that may have broad responsibilities because of the
organization’s size. This does not, however, mean that it is less important. Look for sound arguments and
reasoning. Again, the ADA applies to companies with as few as 15 employees. What other ways can a small
employer successfully document the “essential functions” of a job?
Chapter 5:
1. What are the pros and con of five sources of job candidates? The text lists several sources of job
candidates, both internal and external. The student should clearly identify the differences, as well as
comparative strengths and weaknesses of each. There are at least the following sources to choose from:
advertising, employment agencies, executive recruiters, state job services, college recruiting, referrals,
employee database, internal, and talent searches.
2. What are the four main types of information application forms provide? The application form is a good
means of quickly collecting verifiable, and therefore potentially accurate, historical data from the candidate. It
usually includes information on education, prior work history, and other experience related to the job The
application form can provide four types of information: 1. substantive matters (such as education and
experience); 2. applicant's previous progress and growth; 3. stability based on previous work history; and 4.
prediction of job success.
3. How, specifically, do equal employment laws apply to personnel planning and recruiting activities? The
student should be able to discuss the areas in which the laws and regulations covered in Chapter 2 apply to the
issues of planning and recruiting. This would include constraints on sources used for candidates (i.e. not
excessive reliance on referrals), the wording of questions asked on application forms or in interviews, and
planning decisions that must not be overly detrimental to a protected group.
4. What are five things employers should keep in mind when using Internet sites to find job candidates?
Keyword searches, don’t recycle your newspaper ads, give quick feedback, ensure privacy, applicant tracking,
etc.
5. What are the five main things you would do to recruit and retain a more diverse workforce? The student
should first be able to identify groups that would create a diverse workforce. Examples found in the text are:
single parents, older workers, minorities and women, welfare recipients, and global candidates. In order to
retain these employees, students would first need to understand the needs of each group, and then create plans
and programs that accommodate these specific needs. For example, to attract and keep single mothers,
employers could give employees schedule flexibility, and train the supervisors to have an increased awareness
of and sensitivity to the challenges single parents face.
Chapter 6:
1. What is the difference between reliability and validity? In what respects are they similar? Reliability is
the consistency of scores obtained by the same persons when retested with identical tests or with an equivalent
form of a test. It is a measure of internal consistency of the instrument. Validity is the degree to which a test
measures what it is purported to measure. It is a measure of external consistency. They are similar in that both
are concerned with aspects of consistency of the instrument, and that reliability is a necessary condition for
validity.
2. Explain how you would go about validating a test. How can this information be useful to a manager?
The validation process consists of five steps: job analysis, selecting a test, administering a test, relating the test
scores and the criteria, and cross validation and revalidation. Using valid selection devices will enable the
manager to develop objective information in the selection process and should result in more effective selection
decisions.
3. Explain why you think a certified psychologist who is specially trained in test construction should (or
should not) always be used by a small business that needs a test battery. Due to the complex and legal
nature of this activity, the use of a certified psychologist may be the only safe way to accomplish your
objectives. However, because of the high salary and limited job scope of such a specialist, a definite drawback
to this approach is the cost involved. Perhaps more "direct" tests can be developed which require less
sophistication: motor and physical abilities tests (many state employment agencies provide this service), on-job
knowledge tests, and work sampling. This chapter also presents some alternative testing tools that are
relatively easy to administer and low in cost and that are reasonable choices for small employers to use.
4. Give some examples of how interest inventories could be used to improve employee selection. In doing so,
suggest several examples of occupational interests that you believe might predict success in various
occupations including college professor, accountant, and computer programmer. Interest inventories can
improve employee selection by identifying individuals with similar interests to those reported by a substantial
percentage of successful incumbents in an occupation. This should clearly increase the likelihood that the
applicants will be successful in their new jobs. Interests that one might expect: accountant: math, reading,
music; college professor: public speaking, teaching, counseling; computer programmer: math, music,
computers.
5. Why is it important to conduct pre-employment background investigations? How would you go about
doing so? Past behavior is the best predictor of future behavior. It is important to gain as much information as
possible about past behavior to understand what kinds of behavior one can expect in the future. Knowledge
about attendance problems, insubordination issues, theft, or other behavioral problems can certainly help one
avoid hiring someone who is likely to repeat those behaviors. The section on background investigations and
reference checks has some excellent guidelines for background checks.
6. Explain how you would get around the problem of former employers being unwilling to give bad
references on their former employees. Since many companies have strict policies regarding the release of
information about former employees, it may not be possible to get information at all, good or bad. However,
conducting a thorough reference audit by contacting at least two superiors, two peers, and two subordinates will
help increase the chance that you will find someone who is willing to give you the information you need. Also,
making the contacts by phone rather than in writing will increase their belief that the information may not be
traced back to them. Using the additional technique of asking references for the name of someone else who
might be familiar with the applicant's performance will also increase the possibility of getting more information.
7. How can employers protect themselves against negligent hiring claims? There is a list of ways
employers can protect themselves against negligent hiring claims discussed in the section on why
careful selection is important at the beginning of the chapter.
Chapter 7:
1. Explain and illustrate the basic ways in which you can classify selection interviews. Interviews can be
classified according to: (1) degree of structure. This is the extent to which interviews are, or are not, structured
with previously designed questions so that each candidate must answer the same things. (2) purpose.
Interviews may be designed to accomplish several purposes, including selection, performance appraisal
feedback, etc. (3) content. The content of the questions may be situational, job-related, or psychological. (4)
the way the interview is administered. Interviews might be conducted by a panel of interviewers, sequentially
or all at once, computerized, or personally. Students should also provide some illustrations of each.
2. Briefly describe each of the following possible types of interviews: unstructured panel interviews;
structured sequential interviews; job-related structured interviews. In the unstructured panel interview, the
panel of interviewers asks questions as they come to mind. They do not have a list of questions or points that
need to be covered, but may follow many different directions. The structured sequential interview consists of
the candidate being interviewed one by one with several different interviewers. Each interviewer conducts a
structured interview that consists of pre-determined questions and a structured evaluation form to complete.
The job-related structured interview consists of pre-determined questions, all of which are designed to assess
the applicant's past behaviors for job-related information.
3. For what sorts of jobs do you think computerized interviews are most appropriate? Why? The
computerized interview can be used as a screening device for virtually any type of position that may generate a
large number of applicants. It is less likely to be used for managerial positions. However, if there are large
numbers of applicants, it could certainly be just as useful there as in skilled, professional, and unskilled
positions.
4. Why do you think situational interviews yield a higher mean validity than do job-related or behavioral
interviews, which in turn yield a higher mean validity than do psychological interviews? The situational
interview allows the candidate to answer situational questions based on past experiences in which he or she
might have made mistakes, but learned from them. The job-related (or behavioral) interview focuses primarily
on past situations, but does not allow for changes in the candidate due to the lessons that he or she might have
learned from those experiences. The psychological interview tends to be more speculative regarding traits that
are difficult to really measure.
5. Similarly, how do you explain the fact that structured interviews, regardless of content, are more valid
than unstructured interviews for predicting job performance? The structured interview helps to keep the
interviewer focused on the types of behaviors, traits, or answers that are desired and have been determined to be
good predictors of job performance. Unstructured interviews allow interviewers to become sidetracked with
things like common interests and other items that are not good predictors of job success.
6. Briefly discuss and give examples of at least five common interviewing mistakes. What recommendations
would you give for avoiding these interviewing mistakes?
Snap Judgments: This is where the interviewer jumps to a conclusion about the candidate during the first few
minutes of the interview. Using a structured interview is one way to help avoid this, as well as training of the
interviewers.
Negative Emphasis: When an interviewer has received negative information about the candidate, through
references or other sources, he or she will almost always view the candidate negatively. The best way to avoid
this is to keep references or other information from the interviewer. If possible, have different people do the
reference checks and the interviews and not share the information until afterwards.
Misunderstanding the Job: When interviewers do not have a good understanding of the job requirements, they
do not make good selections of candidates. All interviewers should clearly understand the jobs and know what
is needed for success in those jobs.
Pressure to Hire: Anytime an interviewer is told that they must hire a certain number of people within a short
time frame, poor selection decisions may be made. This type of pressure should be avoided whenever possible.
Candidate-Order (Contrast) Error: When an adequate candidate is preceded by either an outstanding, or a poor
candidate, by contrast he or she looks either less satisfactory or much better. This can be countered through
interviewer training, allowing time between interviews, and structured interviews with structured rating forms.
Influence of Nonverbal Behavior: Candidates who exhibit stronger nonverbal behavior, such as eye contact and
energy level, are perceived as stronger by the interviewers. This can be minimized through interviewer training
and structured interviews.
Telegraphing: An interviewer might "give" the right answers to candidates they hope to hire. This can be
combated through structured interview questions, multiple interviewers, and interviewer training.
Too Much / Too Little Talking: On either end of these extremes, the interviewer may not gather all the
information that is really needed to make an appropriate selection decision. Structured interviews help keep this
from happening.
Playing District Attorney or Psychologist: Some interviewers misuse their power by turning the interview into a
game of "gotcha" or by probing for hidden meanings in everything the applicants say. Structured interviews
help keep this from happening.
7. Briefly discuss what an interviewer can do to improve his or her performance. The students should refer to
the section in the chapter on designing and conducting the effective interview to form his/her suggestions for
how an interviewer can improve his/her perfomance.
Chapter 8:
1. "A well-thought-out orientation program is essential for all new employees, whether they have experience
or not." Explain why you agree or disagree with this statement. New employees can suffer from a
significant amount of anxiety during the first few days on the job as they find themselves in an environment and
culture that they are not familiar with. Those with little job experience may find it especially difficult without
an orientation since they have little other experience on which to base their expectations. A well-developed
orientation program will socialize new employees into important organizational values, whereby their chances
of easing smoothly into the organization are improved.
2. Explain how you would apply our principles of learning in developing a lecture, say, on orientation and
training. Student answers should reflect the issues identified in the guidelines in the section on lectures. As an
exercise, you might have students develop and deliver a lecture (perhaps on one section of this chapter). Then
ask the students to critique each other based on the guidelines summarized in the section on lectures.
3. John Santos is an undergraduate business student majoring in accounting. He has just failed the first
accounting course, Accounting 101, and is understandably upset. Explain how you would use
performance analysis to identify what, if any, are John's training needs. The first thing that needs to be
determined is if this is a "can't do" or a "won't do" situation. It is possible that as a first-year student, John has
spent more time socializing and not enough time studying. This would indicate a need for training on studying
skills and prioritization. It is also possible that John really does not have the necessary basic skills that he needs
in order to be successful in this course. This could be determined through some testing to see if he has the
prerequisite knowledge and skills. If it is a problem, remedial training or courses would be appropriate. A third
possibility is that John simply does not really have the interest or natural inclinations that would make him
successful in the accounting area. This could be determined through some testing and career interest surveys.
If this is the case, training is not appropriate, but rather John should be counseled to change majors.
4. What are some typical on-the-job training techniques? What do you think are some of the main
drawbacks of relying on informal on-the-job training for breaking new employees into their jobs? The
most common is the understudy or coaching technique. Others include apprenticeship training and job rotation.
There are several possible drawbacks to OJT: (1) not every employee will get the same basic information; in
fact, some may not get basic, fundamental information; (2) the quality of the training is highly dependent on the
training skills of the employee who supervises the OJT...and that person's skills and training are usually not in
the area of training; and (3) the new employee may get false information or detrimental enculturation depending
on the employees that conduct their OJT.
5. One reason for implementing global training programs is the need to avoid lost business "due to cultural
insensitivity." What sort of cultural insensitivity do you think is referred to, and how might that
translate into lost business? The cultural insensitivities would include cross-cultural values, assumptions
concerning communication, identity issues, etiquette, lifestyles, style of dress, etc. Any of these can result in
unintentional insults or offending people that can easily make those people reluctant to do business with you.
What sort of training program would you recommend to avoid such cultural insensitivity? There are a
wide variety of programs and consultants that specialize in these areas. It is important to have someone who is
knowledgeable in these areas conduct the training to assure that the correct information and guidance is given.
6. Describe the pros and cons of five management development methods. Job rotation: broadens experience
and helps the candidate find what he or she prefers. Coaching/Understudy: works directly with the person he or
she will replace, helps assure trained managers are ready to assume key positions. Action Learning: allows
special projects to be handled. Case Study Method: classroom oriented, gives real-life situations, allows
analysis and reflection. Management Games: learn by getting involved, competition, emphasizes the need for
planning, problem-solving skills, teamwork. Outside Seminars: CEUs, developed by experts, time away from
pressures of work. University-Related Programs: certifications and degrees, theoretical knowledge, sharing
with students from other industries. Role Playing: opportunity to work through probable situations, negative
views of role-playing. Behavior Modeling: effective, learning and skill development, reinforces decisions
immediately. In-House Development Centers: tailored to the needs of the company, expensive. Students
should be able to come up with additional pros and cons for each method.
7. Do you think job rotation is a good method to use for developing management trainees? Why or why
not? Most students will probably support job rotation for management trainees. It gives the trainee the
opportunity to experience several areas and to develop cross-departmental skills and cooperation. It also gives
the trainee the chance to experience different areas to see what he or she likes.
Chapter 9:
1. What is the purpose of a performance appraisal? The purpose of a performance appraisal is to provide
employees with feedback on how they are doing, as well as give them an opportunity to give feedback.
2. Discuss the pros and cons of at least four performance appraisal tools. The text lists eight different
performance appraisal tools. Students might discuss the pros and cons of any four of these eight. An example
of some of the pros and cons is: Graphic Rating Scale method is easy to use, simple, and does not take much
time to administer. However, different supervisors may interpret a numerical rating differently and the traits
rated may or may not relate to performance.
3. Explain how you would use the alternation ranking method, the paired comparison method, and the
forced distribution method. The alternation ranking method would be used by listing all employees to be
rated, deciding who is the best in a trait to be rated, and which is the worst. Then decide who is the second best,
and the second worst ... the third best and the third worst ... and so on until all the employees have been ranked
for that trait. Then do the same with the next trait to be rated. With the paired comparison, for each trait to be
rated, the supervisor would have a sheet with employee names in pairs ... every employee name is paired with
every other name. For each pair, the supervisor would circle the one of the two that is better in that trait.
Forced Distribution gives the supervisor a set rating scale (such as 1 through 5). The supervisor is limited to
giving a pre-determined percentage of his or her employees' rating. For example: 15% can get a 1; 20% can get
a 2; 30 % can get a 3 ... and so forth.
4. Explain in your own words how you would go about developing a behaviorally anchored rating scale.
Each student should express the five steps in his or her own words. Those five steps are: 1) generate critical
incidents; 2) develop performance dimensions; 3) reallocate incidents; 4) scale the incidents; and 5) develop
final instrument.
5. Explain the problems to be avoided in appraising performance. The five main rating scale problems listed in
the text are: 1) unclear standards; 2) halo effect; 3) central tendency; 4) leniency or strictness; and 5) bias.
6. Discuss the pros and cons of using different potential raters to appraise a person's performance. The
advantage of using several raters (either a rating committee, or a combination of peer, supervisor, and
subordinate ratings) is that the ratings tend to be more valid than those of one individual rater. The negatives
might include the time and cost involved as well as problems with the amount of daily contact that some raters
may not have with the employee being rated.
7. Compare and contrast performance management and performance appraisal. Performance appraisal
means evaluating an employee's current and/or past performance relative to his or her performance standards.
Performance management is the process that consolidates goal setting, performance appraisal, and development
into a single, common system, the aim of which is to ensure that the employee's performance is supporting the
company's strategic aims. Performance management includes practices through which the manager defines the
employee's capabilities, and evaluates and rewards the person's effort.
8. Answer the question: How would you get the interviewee to talk during an appraisal interview? There are
several techniques that will help: 1) stop and listen to what the person is saying ... don't be afraid of a little
silence; 2) ask open-ended questions; 3) use prompting statements like "go on," or "tell me more;" 4) restate the
person's last statement as a question.
Chapter 10:
1. What is the employee’s role in the career development process? The manager’s role? The employer’s
role? The employee must understand that it is their role to take charge of their own career development. The
manager should support the employee’s career development needs and schedule regular performance appraisals.
The employer’s role depends on how long the employee has been with the organization, but should include
providing a process and a structure to develop their careers.
2. Describe the specific corporate career development initiatives that the employer can take.
An employer can implement career planning workshops to help assess an employee’s interests, conduct career-
oriented appraisals which help support the employee’s career development, provide career development advice
via a corporate intranet, and even provide on-the-job career coaching.
3. What are four specific steps employers can take to support diverse employees’ career progress? These
could include mentoring programs, increasing opportunities for networking and interaction, providing realistic
job previews, providing challenging first jobs, and implementing career-oriented appraisals.
4. Give several examples of career development activities that employers can use to foster employee
commitment. The steps listed in question 3 above and the list on pages 351-353 of innovative corporate career
development initiatives are a pretty comprehensive list.
Chapter 11:
1. What is the difference between exempt and non-exempt jobs? Under the Fair Labor Standards Act, certain
categories of employees are exempt from the act or certain provisions of the act. Those categories of employees
that are exempted from provisions of the act are called "exempt" while those covered by the act are called "non-
exempt." Generally executives, administrative, managerial, and professional employees are exempt from
minimum wage and overtime provisions.
2. Should the job evaluation depend on an appraisal of the jobholder's performance? Why or Why not?
No. Job evaluation involves comparing jobs to one another based on their content. Individual performance is
covered under performance evaluation and does not affect the content of the job.
3. What is the relationship between compensable factors and job specifications? Compensable factors
include skill, effort, responsibility, working conditions, problem solving, know-how, accountability, and the
like. Many of these factors are obtainable from job specifications that are part of the job analysis.
4. Compare and contrast the following methods of job evaluation: ranking, classification, factor
comparison, point method. The ranking method is the simplest, easiest to explain, and the quickest to
implement. The drawbacks to the ranking method are a tendency to rely too heavily on guesstimates and it does
not provide a yardstick for measuring the relative values of jobs. The classification (or grading) method is
simple, and widely used. Most employers usually end up classifying jobs anyway, so this method often makes
sense. The disadvantages are that it is difficult to write the class or grade descriptions and considerable
judgment is required to apply them. The factor comparison method is considered a refinement of the ranking
system, thus it may be considered to be more accurate than others. The disadvantages are the considerable time
and effort involved to implement the system and to evaluate jobs. The point method, like the factor comparison
method, is a quantitative analysis that is considered accurate. This system is easy to implement, but developing
a point manual can be expensive.
5. What are the pros and cons of broadbanding, and would you recommend your current employer (or
some other firm you're familiar with) use it? Why or why not? The advantages are that it injects greater
flexibility into employee compensation and it is especially sensible where firms have flattened their
organizations. It allows training and rotation of employees with fewer compensation problems. It also
facilitates the boundaryless jobs and organizations being embraced by many firms. The negatives are that it
may be more difficult to administer and keep track of individuals and to keep pay comparable.
6. It was recently reported in the news that the average pay for most university presidents ranged around
$200,000 per year, but that a few earned closer to $500,000 per year. What would account for such a
disparity in the pay of universities' chief executive officers? The same things that account for the wide range
of pay for the chief executive officers of other businesses and organizations in the same industry account for the
disparity among universities. Many factors enter into this mix, including, but not limited to: size of the
organization, ownership of the organization (public or private), focus of the organization (religious or secular,
research or teaching), performance of the organization (financial and enrollment), prestige of the organization,
and endowment and funding of the organization.
7. Do small companies need to develop a pay plan? Why or why not? Yes, small companies need to develop a
pay plan. Students should use information learned in the chapter to justify their responses.
Chapter 13:
1. You are applying for a job as a manager and are at the point of negotiating salary and benefits. What
questions would you ask your prospective employer concerning benefits? Describe the benefits package
you would try to negotiate for yourself. You should ask sufficient questions about all aspects of the benefits
package such that you will come away knowing exactly what benefits you will and will not have. These can be
phrased in many ways, but should cover all areas important to the potential employee. Hopefully, students will
be far-sighted enough to understand the importance of benefits that might not appear to be critical at this stage
of their lives. For example, if students are young and single, they should realize the importance of a good
family medical plan as well as a well-funded retirement plan.
3. Explain how ERISA protects employees’ pension rights. Under ERISA, pension rights must be vested under
one of three formulas. Also, ERISA established the Pension Benefits Guarantee Corporation to help ensure that
pensions meet vesting obligations; the PBGC also insures pensions should a plan terminate without sufficient
funds to meet its vested obligations.
4. What is "portability"? Why do you think it is (or isn't) important to a recent college graduate?
Portability is the ability of an employee to take his or her retirement income when they leave an organization
and roll it over into a new employer's savings plan or IRA. Today's college graduate may not think about it, but
it is important to consider the question of portability. Most college graduates can expect to change employers
several times during their career. Having portable retirement plans can help ensure that they end up with a
reasonable retirement income. If the plans are not portable, it will take exceptional planning on the employee's
part to ensure adequate retirement income.
5. What are the provisions of the FMLA? The FMLA provides the following: 1) private employers of 50 or
more employees must provide eligible employees up to 12 weeks of unpaid leave for their own serious illness,
the birth or adoption of a child, or the care of a seriously ill child, spouse, or parent; 2) employers may require
employees to take any unused paid sick leave or annual leaves as part of the 12-week leave provided in the law;
3) employees taking leaves are entitled to receive health benefits while they are on unpaid leave, under the same
terms and conditions as when they were on the job; 4) employers must guarantee employees the right to return
to their previous or equivalent position with no loss of benefits at the end of the leave; however, the law
provides a limited exception from this provision to certain highly paid employees.
Chapter 14:
1. Explain how you would ensure fairness in disciplining, discussing particularly the prerequisites to
disciplining, disciplining guidelines, and the discipline without punishment approach. There are many
things that can be helpful: • Make sure the evidence supports the charge of employee wrongdoing. • Ensure that
the employee’s due process rights are protected. • Warn the employee of the disciplinary consequences. • The
rule that was allegedly violated should be “reasonably related” to the efficient and safe operation of the
particular work environment. • Fairly and adequately investigate the matter before administering discipline. •
The investigation should produce substantial evidence of misconduct. • Rules, orders, or penalties should be
applied evenhandedly. • The penalty should be reasonably related to the misconduct and to the employee’s past
work history. • Maintain the employee’s right to counsel. • Don’t rob a subordinate of his or her dignity. •
Remember that the burden of proof is on you. • Get the facts. Don’t base a decision on hearsay or on your
general impression. • Don’t act while angry. • Create a formalized appeals process. • Make sure all rules and
policies are communicated and clearly explained in advance.
2. Why is it important in our highly litigious society to manage dismissals properly? If you do not follow the
law, and your own policies and procedures, you are likely to have the courts rule against you. This can be very
costly and damaging to employee morale and your reputation.
3. What techniques would you use as alternatives to traditional discipline? What do such alternatives have
to do with “organizational justice”? Why do you think alternatives like these are important, given
industry’s need today for highly committed employees? If you are going to attract and retain top quality
employees, it is critical to have a strong sense of organizational justice. Disciplinary techniques and methods
can be related to the legal techniques and methods in our society at large. If they work well, people believe
justice is served. If the do not work well, people feel there is injustice.
4. Provide three examples of behaviors that would probably be unethical but legal, and three that
would probably be illegal but ethical. While most students think of ethical behavior, they think of
rules for distinguishing between right and wrong, such as the Golden Rule ("do unto others as you
would have them do unto you"), a code of professional conduct like the Hippocratic Oath ("first of
all, do no harm"). But the difference between ethical/unethical and legal/illegal behavior can become
blurred and often debated. Here are several examples to help make the distinction more clear.
o Operating a motor vehicle while over your state’s legal limit for alcohol intoxication
o Stopping at a red light but then proceeding through the intersection before you receive the
green light
o Driving over the legal speed limit
5. List 10 things your college or university does to encourage ethical behavior by students and/or faculty.
Answers will vary by college, but use of multiple test forms, policies, ethics courses, software to identify
plagiarism, etc. are examples common to most colleges.
6. You need to select a nanny for your or a relative’s child, and want someone ethical. Based on what you
read in this chapter, what would you do to help ensure you ended up hiring someone ethical? Asking
questions about values, and paying attention to both the answers and the nonverbals that accompany them,
finding out how the nanny acted in past situations and clarifying expectations as fully as possible will all go a
long way toward ensuring that the nanny is ethical.
7. You believe your employee is being insubordinate. How would you verify this and what would you do
about it if true? It is important to conduct a full investigation of suspicions. Asking trusted employees for
feedback on performance in the unit on a regular basis often will assist in clarifying where problems exist. Once
the allegations are clear, meeting with the employee to discuss the situation, and their reasons for it is crucial.
Depending on the situation, the reasons and the severity of the offense, progressive discipline would be the next
step.
8. Several years ago Wal-Mart instituted a new scheduling system that makes it more difficult for its
employees to know for sure what hours they would be working. Basically, the store supervisor calls them
at the last minute if there’s an opening for that day. Based on what you read in this chapter, is the new
system ethical? Why or why not? Is it fair? What would you do if you were a Wal-Mart employee? If
employees have a clear understanding of the system, and know what the rules are regarding availability, it
would seem that the system is not unethical. However, asking that an employee reserve the time, and then
sending them home for reasons beyond their control does not seem fair. Wal-Mart employees are likely to
express their dissatisfaction with increased turnover, which will result in higher recruiting and training costs for
the store.
Chapter 16:
1. Explain how to reduce the occurrence of unsafe acts on the part of your employees. The text lists 10
different ways to help reduce unsafe acts. Answers should reflect at least a majority of these.
2. Discuss the basic facts about OSHA – its purpose, standards, inspection, and rights and responsibilities.
The purpose of OSHA is "to assure so far as possible every working man and woman in the nation safe and
healthful working conditions and to preserve our human resources." The basic purpose of OSHA is to set safety
and health standards and to ensure compliance through inspections and reporting. The standards are contained
in five volumes covering general industry standards, maritime standards, construction standards, other
regulations and procedures, and a field operations manual. The standards are very complete and seem to cover
just about any hazard one could think of. Standards are enforced through a series of inspections and, if
necessary, citations. OSHA may not conduct warrantless inspections without an employer's consent. It may
inspect after acquiring a search warrant. An authorized employee representative must be given the opportunity
to accompany the officer during the inspection. Employees are protected under the act from discrimination for
exercising their disclosure rights. Employers are responsible for being familiar with OSHA standards and for
bringing conditions into compliance.
3. Explain the supervisor's role in safety. Beyond trying to make the workplace safe, the basic aim of the
supervisor is to instill in workers the desire to work safely. Then, when needed, enforce safety rules.
4. Explain what causes unsafe acts. People are the main cause of unsafe acts. Some researchers say that certain
personal characteristics are the basis for behavior tendencies that result in unsafe acts. There are several human
traits that contribute to accident proneness and they are listed in the chapter. There is also a list of some
examples of unsafe acts.
5. Describe at least five techniques for reducing accidents. The text lists 10 techniques: 1) selection and
placement; 2) posters and other propaganda; 3) training; 4) incentive programs and positive reinforcement; 5)
top-management commitment; 6) emphasizing safety; 7) establishing a safety policy; 8) setting specific loss
control goals; 9) conducting safety and health inspections; 10) monitoring work overload and stress. These are
detailed in the chapter.
6. Explain how you would reduce stress at work. Both environmental and personal factors can lead to job
stress. If individuals are feeling dysfunctional levels of stress, the work schedule, pace of work, job security,
and number or nature of clients, modifications in these factors should be made. Because personal factors
influence stress, health and exercise programs can be promoted. Sometimes counseling should be offered,
especially through an EAP, or a job more suitable to the individual should be found. Supervisors should
monitor performance to identify symptoms of stress, and inform the employee of organizational remedies that
may be available, such as job transfers or counseling.
7. Describe the steps employers can take to reduce workplace violence. Some of the steps employers can take
to reduce workplace violence include: heighten security measures, improve employee screening, provide
training on workplace violence, enhance attention given to employee retention and dismissal of violent
employees, institute proactive measures for dealing with angry employees, and be aware of the legal constraints
associated with workplace violence.
Chapter 17:
1. You are the president of a small business. What are some of the ways you expect being involved
internationally will affect your business? Being involved internationally can affect virtually every aspect of
your business. It can affect the growth of your business due to additional markets, it can affect costs of doing
business, and it can affect every aspect of HRM as outlined in the chapter.
2. What are some of the specific uniquely international activities an international HR manager typically
engages in? 1) Formulating and implementing HR policies and activities in the home-office of a multinational
company. This HRM manager would engage in selecting, training, and transferring parent-company personnel
abroad and formulating HR policies for the firm as a whole and for its foreign operations. 2) Conducting HR
activities in the foreign subsidiary of an MNC is another form. Again, local HR practices are often based on the
parent firm's HR policies, fine-tuned for local country practices.
3. What intercountry differences affect HRM? Give several examples of how each may specifically affect
HRM. 1) Cultural Factors – U.S. managers may be most concerned with getting the job done. Chinese
managers may be most concerned with maintaining a harmonious environment. And Hispanic managers may
be more concerned with establishing trusting, friendship relationships. 2) Economic Factors – U.S. economic
systems tend to favor policies that value productivity while more socialistic countries like Sweden would favor
policies that prevent unemployment. 3) Labor Cost Factors – Mexican labor costs (low) can allow
inefficiencies of labor, while German labor costs (high) might require a focus on efficiency. 4) Industrial
Relations Factors – German law requires that workers have a vote in setting policies while in Japan the
employees do not have a say, but the government may have a say in establishing policies. 5) The European
Community – The EC will gradually reduce the differences between member countries.
4. You are the HR manager of a firm that is about to send its first employees overseas to staff a new
subsidiary. Your boss, the president, asks you why such assignments fail, and what you plan to do to
avoid such failures. How do you respond? Estimates say that 20% to 25% of all overseas assignments fail.
Reasons include: inability of spouse to adjust, managers' inability to adjust, other family problems, and
managers' inability to cope with responsibility. We will need to select a manager that displays: adaptability and
flexibility, cultural toughness, self-orientation, others-orientation, perceptual ability, and has a family with
adaptability.
5. What special training do overseas candidates need? In what ways is such training similar to and
different from traditional diversity training? It is suggested that a four-step training approach be taken: 1)
training focused on the impact of cultural differences and their impact on business outcomes; 2) training
focused on attitudes that are aimed at getting participants to understand how attitudes (both positive and
negative) are formed and how they influence behavior; 3) training focused on factual knowledge about the
target country; and 4) skill building in areas like language and adjustment and adaptation skills. This training is
different from traditional diversity training in the last two steps, which are not normally part of diversity
training. In addition, traditional training and development is needed as with any other manager.
6. How does appraising an expatriate's performance differ from appraising that of a home-office manager?
How would you avoid some of the unique problems of appraising the expatriate's performance? A major
difficulty is: Who actually appraises the performance? (Cultural differences could affect it) There are five
suggestions: 1) Stipulate the assignment's difficulty level; 2) Weight the evaluation towards the on-site
manager's appraisal; 3) Have a former expatriate advise the home-site manager in his or her evaluation; 4)
Modify the normal performance criteria to fit the position and characteristics of the locale; 5) Attempt to give
credit for insights, not just measurable criteria.
7. As an HR manager, what program would you establish to reduce repatriation problems of returning
expatriates? The programs listed in the chapter give a good summarization of the types of programs and
activities that should be established to assure a smooth repatriation.
Chapter 18:
1. How and why is HR in small businesses different than that in large firms? Human resource
management activities tend to be more informal in smaller firms. For example, one study analyzed training
practice in about 900 family and nonfamily small companies. Training tended to be informal, with an
emphasis, for instance, on methods like coworker and supervisory on-the-job training. Such informality
isn’t just due to lack of expertise and resources; it is also partly a matter of survival. Entrepreneurs must be
able to react quickly to changes in competitive conditions.
2. Explain why HRM is important to small businesses. Small firms need all the advantages they can
obtain, and for them effective human resource management is a competitive necessity. Small firms that
have effective HR practices do better than those with less effective practices. For many smaller firms,
effective human resource management is also a condition for getting and keeping big customers. This
means that even smaller businesses must attend to their human resource processes.
3. Explain and give at least four examples of how entrepreneurs can use Internet and government tools
to support the HR effort. Small business owners spend much of their time tackling law-type issues.
These small business owners can quickly find the answer to many such questions online at the following:
The Department of Labor or DOL.gov, the EEOC or EEOC.gov, the Occupational Safety and Health
Administration or OSHA.gov, and the Society of Human Resource Management or SHRM.org.
4. Explain and give at least five examples of ways entrepreneurs can use small size—familiarity,
flexibility, and informality—to improve their HR process. Small businesses need to capitalize on their
strengths, so in dealing with employees they should capitalize on their smallness. Smallness should
translate into personal familiarity with each employee’s strengths, needs, and family situation. And it
should translate into the luxury of being able to be relatively flexible and informal in the human resource
management policies and practices the company follows.
5. Discuss what you would do to find, retain, and deal with a professional employer organization on an
on-going basis. Small business managers need to choose and manage the PEO relationship carefully.
Some suggestions are as follows:
Conduct a needs analysis
Review the services of the PEO
Determine if the PEO is accredited
Review the service agreement
Check out the prospective PEO’s staff
Ask how will the firm deliver the service
6. Describe with examples how you would create a startup, paper-based human resource system for a
new small business. Very small employers will probably start with a manual human resource management
system. From a practical point of view, this generally means obtaining and organizing a set of standardized
personnel forms covering each important aspect of the HR recruitment, selection, training, appraisal,
compensation, and safety process, as well as some means for organizing all this information for each of
your employees.