Employee Turnover & Absenteeism and Challenges: Cengage HRM Exercise

Employee Turnover & Absenteeism and Challenges: Cengage HRM Exercise

Discuss the Cengage Human Resources Management exercises included in this week’s materials.
Consider the following:
• What was the main issue of this week’s topic?
• How were your choices received by the supervisor in the simulation?
• What was the main lesson that you learned from this exercise?
• Based on the discussion in class, did other people approach the scenario with your same point of view?
• Based on the discussion in class, how were your results similar or different from those of your peers?
ee
een
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PART I INTRODUCTION CHAPTER1
PART I INTRODUCTION CHAPTER1
Meeting Present and Emerging Strategic
Human Resource Challenges
1
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havaittavissa vaaleja uskoon varaan kuuluvien ajattele sunnuntainisiemme vaarat vaatisi perustuvaa todistamaan puhtaan ilmestyijohtopaatos jotka tarvitsette tieta mahtaa ruokaa alhainen lukeamaaritelty kansakunnat tielta missa ruokauhrin onnistuisi maatkuunnella kaikkiin ulkonako aloittaa pidettava kirkas vuorellamurskaa poistuu tuohon
todetaan nakyy johtavat ylhaalta noiden
nopeammin pedon toivot epailematta vuotiaana kotiin voisikomuilta ryostamaan iloitsevat pitkin ylla maan pyrkinyt valon kuunteleeihan myrsky kuvastaa ym jotta todellisuudessa heikkoja fysiikanuhata suomalaisen suomessa leveys osoitan kohtuudella nauttiamerkittavia hirvean kohdatkoon
etsia kesta tyolla noutamaan varma rikkaudet jonkin tiedattehanmitenkahan
tottelevat miehilleen synagogissa kaunista muuttuvat hopeantaloudellista lupaukseni kumpikaan kolmanteen entiset keraamaansuurempaa ihmisia kirjoitteli koskekovannon kuolemansa juhla tekisivat teltta tuomiosi puvunettemme jaljelle muualle siemen sekelia voistyttareni autiomaasta yleiso vahainenjalustoineen83.43 percent, and many of those employees are
migrating from Google. To help attract new recruits
and preempt defections, all of Google’s employees
(about 23,000) have been given a 10 percent raise,
at an estimated cost of $400 million. This came
at a time (2011) when wages were flat or declining
for most companies around
the country.
¦ In recent years, Motorola has
lost thousands of engineers,
researchers, and design-
ers to competitors such as
Apple, Samsung, Research in
Motion (RIM, the maker of
the Blackberry), Nokia, Dell,
and Sony Erickson. “Motorola
has a very deep and wide pool
of thousands of talented and
experienced employees as well
as strong succession pipeline of
executives,” says the company’s senior vice president
of human resources. Meanwhile, however, the drain
continues. A group of software experts recently laid
off by Motorola marketed themselves to Yahoo as a
team, and all were quickly hired.1
Even in the midst of the toughest economic environ-
ment since the Great Depression, companies compete
for talent, and those that are capable of attracting,
retaining, and motivating good employees are more likely
to achieve and sustain a competitive advantage. Let’s take
two examples:
¦ Just a short time ago, Google
Inc. was considered the
ideal place to work and it
was repeatedly chosen by
Fortune in its annual pick of
the “best companies to work
for. Google used to receive
more than 1,000 applicants
for every five jobs available,
and very few employees left
the company once they were
hired. Yet the situation seems
to have changed almost over-
night, making it much tougher
for Google to attract and retain top talent despite
the tumbling economy. Google Inc. is now fighting
off many growing Internet firms that are poaching
its staff. During 2010–2011 alone, Facebook, Zynge,
and Twitter have increased their staff an average of
4 Formulate and implement HR strategies that
can help the firm achieve a sustained competitive
advantage.
5 Identify HR strategies that fit corporate and
business unit strategies.
6 Indicate “HR best practices” associated with
high-performing firms.
CHALLENGES After reading this chapter, you should be able to deal more
effectively with the following challenges:
1 Explain how a firm’s human resources influence
its performance.
2 Describe how firms can use HR initiatives to
cope with workplace changes and trends such as
a more diverse workforce, the global economy,
downsizing, and new legislation.
3 Distinguish between the role of the HR
department and the role of the firm’s managers in
utilizing human resources effectively.
Source: Eagleflying/Dreamstime
ISBN
1-256-39369-X
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
PART I • INTRODUCTION
The Managerial Perspective
This book is about the people who work in an organization and their relationship with that
organization. Different terms are used to describe these people: employees, associates (at
Wal-Mart, for instance), personnel, and human resources. None of these terms is better
than the others, and they often are used interchangeably. The term we have chosen for the
title of this text, and which we will use throughout, is human resources (HR).* This term
has gained widespread acceptance over the last decade because it expresses the belief that
workers are a valuable, and sometimes irreplaceable, resource. Effective human resource
management (HRM) is a major component of any manager’s job.
A human resource strategy refers to a firm’s deliberate use of human resources to
help it gain or maintain an edge against its competitors in the marketplace.2 It is the grand
plan or general approach an organization adopts to ensure that it effectively uses its people
to accomplish its mission. A human resource tactic is a particular policy or program that
helps to advance a firm’s strategic goal. Strategy precedes and is more important than tactics.
In this chapter, we focus on the general framework within which specific HR activities
and programs fit. With the help of the company’s human resources department, managers
implement the chosen HR strategies.3 In subsequent chapters, we move from the general to
the specific and examine in detail the spectrum of HR strategies (for example, those regard-
ing work design, staffing, performance appraisal, career planning, and compensation).4human resources (HR)
People who work in an organization.
Also called personnel.
human resource strategy
A firm’s deliberate use of human
resources to help it gain or maintain
an edge against its competitors in
the marketplace. The grand plan or
general approach an organization
adopts to ensure that it effectively
uses its people to accomplish its
mission.
human resource tactic
A particular HR policy or program
that helps to advance a firm’s
strategic goal.
manager
A person who is in charge of others
and is responsible for the timely and
correct execution of actions that
promote his or her unit’s success.
line employee
An employee involved directly in
producing the company’s good(s)
or delivering the service(s).
staff employee
An employee who supports line
employees.
environmental challenges
Forces external to a firm that affect
the firm’s performance but are
beyond the control of management.
Human Resource Management: The Challenges
Managers are people who are in charge of others and who are responsible for the timely and
correct execution of actions that promote their units’ successful performance. In this book, we
use the term unit broadly; it may refer to a work team, department, business unit, division, or
corporation.
All employees (including managers) can be differentiated as line or staff. Line employees
are directly involved in producing the company’s good(s) or delivering the service(s). A line
manager manages line employees. Staff employees are those who support the line function. For
example, people who work in the HR department are considered staff employees because their
job is to provide supporting services for line employees. Employees may also be differentiated
according to how much responsibility they have. Senior employees are those who have been
with the company longer and have more responsibility than junior employees. Exempt employees
(sometimes called salaried employees) are those who do not receive extra pay for overtime work
(beyond 40 hours per week). Nonexempt employees do receive overtime compensation. This text
is written primarily to help students who intend to be managers deal effectively with the challenges
of managing people.
Figure 1.1 summarizes the major HR challenges facing today’s managers. Firms that deal with
these challenges effectively are likely to outperform those that do not. These challenges may be
categorized according to their primary focus: the environment, the organization, or the individual.
Environmental Challenges
Environmental challenges are the forces external to the firm. They influence organizational performance
but are largely beyond management’s control. Managers, therefore, need to monitor
the external environment constantly for opportunities and threats. They must also maintain the
flexibility to react quickly to challenges. One common and effective method for monitoring the
environment is to read the business press, including BusinessWeek, Fortune, and the Wall Street
Journal. (The Appendix at the end of this book provides an annotated listing of both general business
publications and more specialized publications on HR management and related topics.)
Eight important environmental challenges today are rapid change, the rise of the Internet,
workforce diversity, globalization, legislation, evolving work and family roles, skill shortages,
and the rise of the service sector.
*All terms in boldface also appear in the Key Terms list at the end of the chapter.
ISBN
1-256-39369-
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES
t
FIGURE 1.1
Rapid Change
Rise of the Internet
Evolving Work and Family Roles
Legislation
Key HR Challenges
Workforce Diversity
Skill Shortages and the Rise of
for Today’s Managers
Globalization the Service Sector
Natural Disasters
Organization

Competitive Position: Cost,
Quality, Distinctive Capabilities
Decentralization
Downsizing
Organizational Restructuring
Self-Managed Work Teams
Small Businesses
Organizational Culture
Technology
Outsourcing
Individual
••
••••
Matching People and Organization
Ethical Dilemmas and Social
Responsibility
Productivity
Empowerment
Brain Drain
Job Insecurity
ISBN
1-256-39369-X
RAPID CHANGE Many organizations face a volatile environment in which change is nearly constant.
5 For this reason IBM’s CEO, Sam Palmisano, tells his managers that he doesn’t believe in
forecasts longer than one week.6 If they are to survive and prosper, firms need to adapt to change
quickly and effectively. Human resources are almost always at the heart of an effective response
system.7 Here are a few examples of how HR policies can help or hinder a firm grappling with
external change:
¦
New company town As firms experience high pressure to become more productive and
deal with very short product life cycles (often measured in months), Americans are working
longer, harder, and faster.8 As a result, the line between home and work is blurred
for many employees. To deal with this phenomenon, sociologist Helen Mederer of the
University of Rhode Island notes that “companies are taking the best aspects of home and
incorporating them into work.”9
A survey of 975 employers by consulting firm Hewitt Associates found that an
increasing number of companies are providing “home at work” benefits. These include
dry cleaner/laundry service, company store, take-home meals, concierge service, oil
changes/autocare, hair salon, and pet care.10
According to a report in the New York Times:11
. . . things like nap rooms and massage recliners may sound out of place to some in
a working environment. But such perks can boost productivity when there are older
workers with sore backs, or young parents with sometimes sleepless nights. Musical
performance, too, may seem at first like an unnecessary distraction. But companies
trying them say that they can be done simply and inexpensively, and that they produce
better morale, increased motivation and less stress.
¦
Dealing with stress Rapid change and work overload can put employees under a
great deal of stress. The Bureau of Labor Statistics reported that 50 percent of the
19.8 million Americans who say they work at home at least once a week aren’t
compensated for it. In other words, millions of employees must work at home just in
order to catch up.12
Unless the organization develops support mechanisms to keep stress manageable, both the
firm and employees may pay a heavy price.13 In some extreme cases, workplace violence may
result. The Centers for Disease Control calls workplace violence a “national epidemic”; the
most recent figures indicate that U.S. employees at work were the victims of 18,104 injuries
A QUESTION OF ETHICS
How much responsibility does
an organization have to shield
its employees from the effects
of rapid change in the environment?
What risks does this type
of “shock absorber” approach to
management entail?
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
PART I • INTRODUCTION
from assault and 609 homicides.14 Typically, however, the observed results of poorly handled
stress are more subtle, yet still highly destructive, costing the company money. According to
some estimates, stress-related ailments cost companies about $200 billion a year in increased
absenteeism, tardiness, and the loss of talented workers.15 One survey reports that 67 percent
of employees categorize their work-related stress as high.16 Many firms, including Microsoft,
Sysco Food Services, Apple, IBM, General Motors, Google, Chrysler, Johnson & Johnson,
Coors Brewing Co., CitiGroup Inc., Texas Instruments, and Hughes Aircraft, among others,
have introduced stress-control programs in recent years.17
A more recent development is for small businesses to invest in programs that promote
employee wellness and mental health (see the Manager’s Notebook, “How Small
Companies Try to Promote Employees’ Mental Health and Wellness,” to see how their
firms are helping workers deal with stress and unhealthy habits). This may be a major
sacrifice for these small companies on a tight budget and facing difficult economic conditions
but no doubt reflects a recognition that the cost of unmanaged employee stress,
anxiety, depression, and bad habits is far higher. The National Institute of Mental Health
estimates that approximately 222.7 million days of work are lost annually due to absence
and impairments related to depression alone, costing employees (the majority of which
are small firms) $51.5 billion a year. 18
HR in Small Business
How Small Companies Try to Promote Employees’ Mental Health and Wellness
Few small companies can afford expensive employee assistance programs with full-time
staff devoted to provide help and counseling to employees on such cases as family stress,
personal pressures, depression, and poor habits, yet many of these firms believe that invest-
ments to improve employees’ mental health and wellness are worth the sacrifice. Three exam-
ples of small companies (with fewer than 100 employees) that are trying to cope with mental
health and wellness issues are Dealer.com, Honest Tea, and Dixon Schwabl.
Dealer.com
Dealer.com (Burlington, Virginia) helps auto dealers and manufacturers market to potential
customers by building websites and integrated solutions for online marketing platforms
Total cost per employee: $3,385
Wellness seminars: $26
These cover topics such as nutrition, exercise, posture, and stress management.
Food: $839
Includes subsidized meals, with organic, low fat, and locally grown food, at the in-house
Dot Calm Café and a subsidized program that delivers food from local farms to employees.
Wellness perks: $1,235
Includes chair massages, tennis clinics with local pros, bike rentals, discounted access to a
certified trainer and wellness coach, and stainless-steel water bottles.
Exercise: $1,285
Includes Ping-Pong tables, tennis and basketball courts, and an on-site fitness center. Also
covers costs for company sports teams (among them softball, volleyball, soccer, bowling, flag
football, and dragon-boat racing) and half the cost of corporate ski passes.
Honest Tea
Honest Tea (Bethesda, Maryland) produces and markets organic beverages, “creating a healthy
alternative beverage with a lot less sugar than most bottled drinks.”
Total cost per employee: $211
Wellness intranet: $5
An internal site with advice on exercise, nutrition, and staying healthy on the road.
MANAGER’S NOTEBOOK
ISBN
1-256-39369-Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
a
a
a
a
Throughout this book we emphasize how HR practices can enable a firm to respond quickly
and effectively to external changes. Two chapters ( Chapter 13 on employee relations and Chapter 16
on managing workplace safety and health) specifically deal with issues related to employee stress.
THE INTERNET REVOLUTION The dramatic growth of the Internet in recent years probably represents
the single most important environmental trend affecting organizations and their human resource
practices. In the mid-1990s, the term Web economy had not yet been coined.19 Now, almost all firms
use the Internet as part of their normal business practices. The Internet is having a pervasive impact
on how organizations manage their human resources, as the following examples show:
ISBN
1-256-39369-X
¦
Necessitating greater written communication skills Companies have discovered that
Internet technology creates a high demand for workers who can deal effectively with
e-mail messages.20 This skill is key if companies want to keep fickle Internet customers
loyal, making them less likely to go to a competitor by simply tapping a few keystrokes.
E-mail writing may also involve legal issues. For instance, an employee’s e-mail
response to a customer complaint may be legally binding on the firm, and there is the
“written” record to prove it.
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES
Health advocate: $14
Helps employees and families choose the right health plan or doctor. Assists in insurance
claim disputes.
Biker/walker subsidy: $16
Employees who bike or walk to work get an extra $27 a month.
Flu shots: $26
Healthy snack packs: $60
Distributed quarterly. These also contain sundries such as sunscreen and lip balm. Honest
Tea keeps the cost low by bartering with companies such as Clif Bar and Burt’s Bees.
Wellness coach: $90
Provides monthly and quarterly counseling on a variety of issues.
Bicycles: at cost
Honest Tea is a promotional partner with Jamis Bicycles. As part of that arrangement,
Honest Tea employees can buy bikes at cost.
Wellness awards
Employees volunteer to set goals for personal fitness. Those who meet or exceed those goals
are honored at the annual meeting.
Dixon Schwabl
Dixon Schwabl (Rochester, New York) is an integrated advertising, marketing, and public relations
firm.
Total cost per employee: $881
Flu and cold prevention: $2
Company sports: $46
Includes equipment for the company bocce, softball, and soccer leagues. Covers uniforms
and postgame refreshments for the bowling league.
Yoga: $74
An on-site weekly class
Charity walks: $100
Sponsorship of employee charity walks and fun runs.
Healthy eating: $227
Includes a weight-loss program, Eat Well Live Well nutrition kits from Wegmans supermarkets,
pedometers, wellness prizes, and fruit and other healthy snacks for the office.
Ski passes: $432
Unlimited guest passes to a ski resort
Sources: Based on Buchanan, L. The price of a healthy staff. www.inc.com. (2011); www.dealer.com. (2011);
www.honesttea.com. (2011); www.dixonschwabl.com. (2011). ¦¦
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
PART I • INTRODUCTION
PART I • INTRODUCTION
Although English is the main language of the Internet, almost half of Internet communication
takes place in foreign languages, and only 7 percent of users on a global basis
are native English speakers. 21 Major multimillion-dollar blunders due to language problems
have already been documented, such as the case of Juan Pablo Davila, a commodity
trader in Chile. He typed the word “buy” on the computer by mistake instead of “sell.”
To rectify his mistake, he started a frenzy of buying and selling, losing 0.5 percent of his
country’s GNP. His name has become an Internet-related verb—“davilar”—meaning,
“to screw up royally.”22
¦
Dealing with information overflow Although executives spend on average four hours a
day receiving, checking, preparing, and sending e-mails, they are still spending 130 minutes
a day in formal and informal face-to-face meetings. According to Neil Flett, CEO, of
a large communication consulting firm, “While some have seen e-mail as a time-saving
device, e-mail appears to be adding to the time spent communicating in business, not
reducing time.”23
According to some estimates, almost a third of e-mails received by employees are
not directly relevant to their jobs, and considering that employees are now receiving an
average of 30 e-mails each day, this may translate into as much as one hour a day of lost
productivity. 24
¦
Breaking down labor market barriers More than ever before, the Internet is creating an
open labor market where information about prospective employees and firms is available
on a global basis and may be obtained quickly and inexpensively.25 Monster.com, for
instance, posted 76 million resumes in 2011.26 Thousands of specialized search engines
(such as Indeed.com, Simplyhired.com, Workzoo.com, and Jobsearch.org) now scan both
well-known and obscure employment boards on the job seeker’s behalf.27 While more
and more organizations are relying on Web applications to recruit and screen employees,
it is unclear to what extent these highly efficient yet “cold” impersonal approaches to
staffing allows organizations to learn about candidates’ intangible qualities such as leadership
skills, work ethics, business acumen, and flexibility. Applicants often complain that
sophisticated computer programs tend to have a narrow focus, relying on numerical and/
or concrete criteria that may not truly capture what the person could contribute if given an
opportunity (see Manager’s Notebook, “A Cold Way to Get a Job”).
Emerging Trends
A Cold Way to Get a Job
The way people look for jobs has changed dramatically. Employers often require people to
submit applications via the Internet, and hiring managers sift through queries with special
computer programs. Unless you fit the precise algorithm that the computer program is look-
ing for, you may never get a prospective employer’s attention. For instance, you may have four
years, 351 days of experience, but not the five years the machine uses as a cutoff, and thus you are
out of luck. Or failure to show evidence that you have used a particular skill during the past two
months may be ground for automatic rejection (maybe you did use it but forgot to include it).
In a job market thick with candidates, employers have become extremely selective, and a
common complaint among applicants is that computers are totally inflexible, leading to automatic
rejections for small details. The computer makes a decision without giving you a chance to make
your case. If an application doesn’t make the cut, there is usually no rejection letter or feedback.
The process may be efficient for the company, but it can be frustrating and demoralizing to the
applicant.
Source: Based on www.computerbasedexams.com. (2011); www.articlesbase.com. (2011), Computer based recruitment
software; Arizona Republic (2010, Oct. 31). Networking pays off to get old job back; Black, T. (2011). Every tool you
need for hiring, www.inc.com . A-8. ¦¦
MANAGER’S NOTEBOOK
ISBN
1-256-39369-Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
ISBN
1-256-39369-X
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES
¦
Using online learning Corporate training has always been dominated by in-house traditional
“paper-and-pencil” training programs. Over the last few years, however, there has
been a tremendous migration from classroom learning to online learning.28 For example,
99 percent of employees at the Mayo Clinic opted for online training to learn about new
rules on health care privacy (even though the clinic gave them the option to attend a traditional
classroom seminar on company time covering the same material). 29
¦
Enabling HR to focus on management The Internet enables firms to handle many
operational HR details much more quickly and efficiently. According to Philip Fauver,
president and CEO of Employease Inc., the Internet is “the enabler.”30 For a flat fee of
about $5 to $6 per employee, Employease manages HR information for 700 small to
midsize companies. One of its clients is Amerisure Insurance Cos. in Farmington Hills,
Michigan. According to Derick Adams, Amerisure’s HR vice president, the Internet allows
his 14-member HR department to devote more attention to important managerial challenges.
For instance, Adams notes that his department was able to “develop a variable pay
plan after handing off the department’s data entry work to Employease.”31
WORKFORCE DIVERSITY Managers across the United States are confronted daily with the increas
ing diversity of the workforce. In 2012, approximately 34 percent of the U.S. workforce was from
a minority group, including African Americans (12%), Asian Americans (4.7%), Latinos (15%),
and other minorities (2%).32 In many large urban centers, such as Miami, Los Angeles, and New
York, minorities comprise at least half of the area’s workforce. The influx of women workers
is another major change in the composition of the U.S. workforce. Women with children under
age 6 are now the fastest-growing segment of the workforce. Currently, more than 76 percent of
employed men have employed wives, versus 54 percent in 1980.33
These trends are likely to accelerate in the future. The U.S. population is expected to
increase by 50 percent by 2050, with minority groups comprising nearly half of the population.
Nonwhite immigrants, mostly Hispanics, will account for 60 percent of this population growth.
Despite fears that immigrants are not assimilating, children of immigrants actually do better than
children of natives in the same socioeconomic class.34
Furthermore, never before in history has such a large-scale mixing of the races occurred, due
to a sharp rise in the rate of intermarriage.35 “One day race will not be needed because it will be
obsolete,” notes Candy Mills, a magazine editor in Los Angeles, who is black. Candy is married
to a French-Hungarian with whom she has a child. Speaking of her family, she says, “We are what
America will look like in maybe 100 years.”36 The best example of this trend, of course, is the cur
rent president of the United States, Barack Obama, who is of mixed race. The U.S. Census Bureau
has acknowledged this reality, incorporating “mixed” categories for future population censuses.
All these trends present both a significant challenge and a real opportunity for managers.37
Firms that formulate and implement HR strategies that capitalize on employee diversity are
more likely to survive and prosper. Chapter 4 is devoted exclusively to the topic of managing
employee diversity. This issue is also discussed in several other chapters throughout this book.
GLOBALIZATION One of the most dramatic challenges facing U.S. firms as they enter the second
decade of the twenty-first century is how to compete against foreign firms, both domestically
and abroad. The Internet is fueling globalization, and most large firms are actively involved
in manufacturing overseas, international joint ventures, or collaboration with foreign firms on
specific projects. Currently the companies on the S&P 500 generate 46 percent of their profits
outside the United States, and for many of the biggest U.S. names, the proportion is much higher.
The implications of a global economy for human resource management are many. Here are
a few examples:
¦
Worldwide company culture Some firms try to develop a global company identity to
smooth over cultural differences between domestic employees and those in international
operations. Minimizing these differences increases cooperation and can have a strong
impact on the bottom line. For instance, the head of human resources at the European
division of Colgate Palmolive notes, “We try to build a common corporate culture.
We want them all to be Colgaters.”38
¦
Worldwide recruiting Some firms recruit workers globally, particularly in the high-
technology area, where specialized knowledge and expertise are not limited by national
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
PART I • INTRODUCTION
boundaries.39 For instance, Unisys (an e-business solutions company whose 37,000
employees help customers in 100 countries apply information technology) recruits
between 5,000 and 7,000 people a year, 50 percent of whom are information technology
(IT) professionals. In the words of one Unisys executive, “If we were looking for someone
to run a practice in Europe, we would not hold the search to a single country. We
would be looking across borders to try to find the best person.” 40
Global recruitment, however, is no panacea because good employees everywhere are in
high demand, and there may not be as much information available to make the appropri
ate selection decision.41 Kevin Barnes, technical director for Store Perform, with facilities
in Bangalore, India, notes that “top Indian engineers are world-class, but most are taken.
Anyone in India who can spell Java already has a job.” And the labor market attracts
legions of unqualified candidates, Barnes says, making it harder to distinguish good from
mediocre performers.42
¦
Industrial metamorphosis The proportion of the American labor force in manufacturing
has dropped to less than 10 percent, down from 25 percent about 30 years ago. Similar
drops have been experienced in several European countries, including England, Germany,
and France. According to the Economist, “It has happened because rich-world companies
have replaced workers with new technology to boost productivity and shifted production
from labor-intensive products such as textiles to higher-tech, higher value-added, sectors
such as pharmaceuticals. Within firms, low-skilled jobs have moved offshore.”43 Labor
unions have lost much of their influence.44 For instance, in the 1950s almost 40 percent of
the U.S. workforce was unionized; by the time President Ronald Reagan took office in the
early 1980s this percentage had dropped by almost half (22%), and by the time President
Barrack Obama took office less than 20 years later (2009) this proportion had dropped by
more than two-thirds (to approximately 7% of the private-sector workforce).
¦
Global alliances International alliances with foreign firms require a highly trained and
devoted staff. For instance, Philips (a Dutch lighting and electronics firm) became the
largest lighting manufacturer in the world by establishing a joint venture with AT&T
and making several key acquisitions, including Magnavox, parts of GE Sylvania, and the
largest lighting company in France.45
¦
A virtual workforce Because of restrictive U.S. immigration quotas,46 U.S. firms are tapping
skilled foreign labor but not moving those workers to the United States. The Internet
is making this possible with little additional expense. For example, Microsoft Corp. and
Real Networks Inc. use a Bangalore, India, company, Adite Corp., to handle customer
e-mails.47 In addition, many “virtual” expatriates work abroad but live at home. As noted
in a Wall Street Journal article, “Virtual expatriation arises when someone takes an assignment
to manage an operation or area abroad without being located permanently in that
country. . . . Communications technology [allows them] to stay in touch with far-flung
troops. . . . The virtual expat is a new breed of manager that is multiplying.” 48
¦
The global enterprise Internationalization is growing at warp speed, creating a powerful
new reality. For instance, most people think of Coca-Cola as emblematic of the United States.
Yet its CEO, Muhtar Kent, describes Coca Cola in the following terms: “We are a global company
that happens to be headquartered in Atlanta. We have a factory in Ramallah that employs
2,000 people. We have a factory in Afghanistan. We have factories everywhere.” Nearly 80
percent of Coca-Cola’s revenue comes from 206 countries outside the United States.49
¦
Wage competition Not too long ago, many U.S. blue-collar workers could maintain a solid
middle-class standard of living that was the envy of the rest of the world. This was sustained,
in part, by higher productivity and superior technological innovation in the United States and
because American manufacturers enjoyed a high market share with little foreign competition.
Unfortunately, this is no longer the case in many sectors, particularly the automobile industry.
As noted in a recent report, “While businesses have a way to navigate this new world of
technological change and globalization, the ordinary American worker does not. Capital
and technology are mobile; labor isn’t. American workers are located in America.”50
An entire chapter of this book ( Chapter 17 ) is devoted to the HR issues firms face as they
expand overseas. We also include international examples throughout the book to illustrate how
firms in other countries manage their human resources.
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
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LEGISLATION Much of the growth in the HR function over the past four decades may be attributed
to its crucial role in keeping the company out of trouble with the law.51 Most firms are
deeply concerned with potential liability resulting from personnel decisions that may violate
laws enacted by the U.S. Congress, state legislatures, or local governments.52 Discrimination
charges filed by older employees, minorities, and the disabled, for instance, have been on the rise
for years. In some cases, such as charges of sex discrimination by Hispanic and Asian women,
the increase has exceeded 65 percent in the past 18 years.53
One legal area growing in importance is alleged misuse of “proprietary company information”
by ex-employees. Pitney Bowes, the world’s largest maker of postage meters and other
mailing equipment, recently sued eight ex-employees who opened a small competing firm called
Nexxpost. According to a Pitney Bowes’ spokesperson:
The company invests a great deal of time and money in areas of developing our intellectual
property, in marketing and training our sales force. We must protect our investment,
which also includes our customer lists, information about consumer preferences as well
as pricing. All that has a significant competitive value. When a former employee wants to
challenge us, we take that breach very seriously and do what we need to do to protect it.54
Operating within the legal framework requires keeping track of the external legal environment
and developing internal systems (for example, supervisory training and grievance procedures) to
ensure compliance and minimize complaints. Many firms are now developing formal policies on
sexual harassment and establishing internal administrative channels to deal with alleged incidents
before employees feel the need to file a lawsuit. In a country where mass litigation is on the rise,55
these efforts may well be worth the time and money.
Legislation may differentiate between public- and private-sector organizations. (Public sector
is another term for governmental agencies; private sector refers to all other types of organizations.)
For instance, affirmative action requirements (see Chapter 3 ) are typically limited to public organizations
and to organizations that do contract work for them. However, much legislation applies to
both public- and private-sector organizations. In fact, it is difficult to think of any HR practices that
are not influenced by government regulations. For this reason, each chapter of this book addresses
pertinent legal issues, and an entire chapter ( Chapter 3 ) provides an overall framework that consolidates
the main legal issues and concerns facing employers today.
EVOLVING WORK AND FAMILY ROLES The proportion of dual-career families, in which both
wife and husband (or both members of a couple) work, is increasing every year.
More companies are introducing “family-friendly” programs that give them a competitive
advantage in the labor market.56 Companies use these HR tactics to hire and retain the best-qualified
employees, male or female. Through the Office of Personnel Management, the federal government
provides technical assistance to organizations that wish to implement family-friendly policies. On
its 2012 Web page (opm.gov), for instance, the office makes available numerous publications on
issues such as adoption benefits, child care, elder-care resources, parenting support, and telework.
Family-friendly policies are discussed in detail in Chapter 12 under the heading “Employee
Services.” Special issues that women confront in the workplace are discussed in Chapter 4 .
SKILL SHORTAGES AND THE RISE OF THE SERVICE SECTOR As noted earlier, U.S. manufacturing
has dropped dramatically in terms of the percentage of employees who work in that sector.
Most employment growth has taken place in the service industry. The categories with the fastest
growth are expected to be professional specialties (27 percent) and technical occupations
(22 percent). The fastest-growing occupations demand at least two years of college training.57
Expansion of service-sector employment is linked to a number of factors, including changes in
consumer tastes and preferences, legal and regulatory changes, advances in science and tech-
A QUESTION OF ETHICS
nology that have eliminated many manufacturing jobs, and changes in the way businesses are
What is the ethical responsibility
organized and managed.
of an employer to employees whoUnfortunately, many available workers will be too unskilled to fill those jobs. Even now, lack basic literacy and numeracy
many companies complain that the supply of skilled labor is dwindling and that they must pro-
skills? Should companies be
vide their employees with basic training to make up for the shortcomings of the public education
required by law to provide training
opportunities for such employees,
system.58 For example, 84 percent of the 23,000 people applying for entry-level jobs at Bell
as some have proposed?
Atlantic Telephone (formerly NYNEX) failed the qualifying test.59 Chemical Bank reported that
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
it had to interview 40 applicants to find one proficient teller.60 David Hearns, former chairman
and CEO of Xerox, laments that “the American workforce is running out of qualified people.”61
To rectify these shortcomings, companies spend at least $55 billion a year on a wide variety
of training programs. This is in addition to the $24 billion spent on training programs by the
federal government each year.62 On the employee-selection side, an increasing number of organizations
are relying on job simulations to test for the “soft skills” needed to succeed in a service
environment, such as sound judgment in ambiguous situations, the ability to relate to diverse
groups of people, and effective handling of angry or dissatisfied customers.
Despite the high unemployment rate at the time of this writing (2012), the skill shortage
remains a major challenge for U.S. firms. New York has become the first state in the nation to
issue a “work readiness” credential to high school students who pass a voluntary test measuring
their ability to succeed in entry-level jobs. An article in the New York Times notes, “Employers
have complained for years that too many students leave high school without basic skills, despite
the battery of exams—considered among the most stringent in the nation—that New York
requires for graduation.”63 The test covers “soft skills,” including the ability to communicate,
follow directions, negotiate and make basic decisions, in 10 broad areas. Chapter 8 focuses
directly on training; Chapters 5 (staffing), 7 (appraising employee performance), and 9 (career
development) discuss issues related to the skills and knowledge required to succeed on the job.
NATURAL DISASTERS A stream of recent disasters, including the 2011 Japanese earthquake, the
tsunami that killed over 250,000 people in Asia in early 2005, the Haitian earthquake of 2010 and
subsequent colera epidemics during 2010–2012 that killed more than 200,000 people, the environmental
disaster of British Petroleum in the Gulf of Mexico, and a string of devastating hurricanes,
most notably Katrina, which destroyed most of the city of New Orleans in August 2005, have
increased awareness among HR professionals of the importance of having plans to deal with such
catastrophes. A survey conducted by Mercer Human Resource Consulting indicated that almost
3 million employees were affected in one way or another by Katrina. 64 Employers had to suddenly
deal with HR issues that they had given little thought to before. These included deciding whether
to keep paying employees who were unreachable and unable to report to work: paying for a variety
of living expenses for displaced staffers in temporary living quarters, providing telecommuting
equipment for employees working from hotels, awarding hazardous duty pay, hiring temporary
employees (many of whom were undocumented workers) to fill the labor void, and preventing
the loss of key talent to competitors outside the disaster area.65 Time Warner Inc. waived medical
deductibles and supported out-of-network medical coverage for affected Katrina families.
Wal-Mart, with more than 34,000 employees displaced by Katrina, guaranteed them work in any
other U.S. Wal-Mart store and created an “Associate Disaster Relief Fund” for employees whose
homes were flooded or destroyed.66 Surprisingly, even after Katrina, almost half of firms don’t
have HR policies to deal with major disasters.67 But this is likely to change as new potential threats
(such as avian flu, major earthquakes, chemical contamination, and more hurricanes) loom on the
horizon,68 along with terrorism fears, which we discuss later.
COLLAPSE OF THE HOUSING MARKET In most areas of the United States and in most of Europe,
the housing market crashed during 2001–2012. The end result is that in some regions (most
notably is Florida, Arizona, and Nevada) home prices have dropped as much as 50 percent and
over half of the families owe more in their mortgages than the value of their property. This
environmental jolt has created a major HR challenge for firms that are trying to hire employees
beyond the local area. Relocation costs have skyrocketed as firms are often forced to cover the
losses incurred by prospective employees, particularly those in managerial positions and those
with scarce skills. Good prospective applicants are unlikely to move because of the “house handcuff,”
unless they are offered additional compensation to cover the housing deficit. Companies
that can’t afford to compensate prospective employees for their housing losses may have little
choice but to look for recruits within driving distance to work, limiting the pool of qualified
applicants. For instance, Milwaukee-based staffing company Manpower Inc. now only recruits
within a certain mileage radius of a target company. 69 For the first time in history recruiters are
now asked to routinely question candidates from out of town whether they are “underwater on
their home” (that is, they owe more on the house than it is worth). “Recruiters are not going to
spend a lot of energy on someone when you know you can’t make up for a $100,000 home loss,”
says Manpower Inc.’s CEO Jeffrey Joerres.70
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
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Organizational Challenges
Organizational challenges are concerns or problems internal to a firm. Effective managers spot
organizational issues and deal with them before they become major problems. One of the themes
of this text is proactivity: the need for firms to take action before problems get out of hand. This
can be done only by managers who are well informed about important HR issues and organizational
challenges.
Competitive Position: Cost, Quality, or Distinctive Capabilities
Human resources represent the single most important cost in many organizations. Organizational
labor costs range from 36 percent in capital-intensive firms, such as commercial airlines, to 80
percent in labor-intensive firms, such as the U.S. Postal Service. How effectively a company
uses its human resources can have a dramatic effect on its ability to compete (or survive) in an
increasingly competitive environment.
HR policies can affect an organization’s competitive position by controlling costs, improving
quality, and creating distinctive capabilities.
¦
Controlling costs A compensation system that uses innovative reward strategies to control
labor costs can help the organization grow, as we discuss in Chapters 10 and 11. Other
ways to keep labor costs under control include making better employee selection decisions
( Chapter 5 ); training employees to make them more efficient and productive ( Chapter 8);
attaining harmonious labor relations ( Chapter 15 ); effectively managing health and safety
issues in the workplace ( Chapter 16 ); and reducing the time and resources needed to design,
produce, and deliver quality products or services ( Chapter 2).
¦
Improving quality Many companies have implemented total quality management (TQM)
initiatives, designed to improve the quality of all the processes that lead to a final product or
service. Continuing evidence shows that firms that effectively implement quality programs
tend to outperform those that don’t.71
¦
Creating distinctive capabilities The third way to gain a competitive advantage is to use
people with distinctive capabilities to create unsurpassed competence in a particular area
(for example, 3M’s competence in adhesives, Carlson Corporation’s leading presence in
the travel business, and Xerox’s dominance of the photocopier market). Chapter 5 (which
discusses the recruitment and selection of employees), Chapter 8 (training), and Chapter 9
(the long-term grooming of employees within the firm) are particularly relevant.
DECENTRALIZATION Organizations commonly centralize major functions, such as HR, marketing,
and production, in a single location that serves as the firm’s command center. Multiple
layers of management execute orders issued at the top and employees move up the ranks over
time in what some have called the internal labor market.72 However, the traditional top-down
form of organization is being replaced by decentralization, which transfers responsibility and
decision-making authority from a central office to people and locations closer to the situation
that demands attention. The Internet helps companies to decentralize even faster by improving
the communication flow among the workforce, reducing the need to rely on the traditional organizational
pyramid.73
The need for maintaining or creating organizational flexibility in HR strategies is addressed in
several chapters of this book, including those dealing with work flows ( Chapter 2 ), compensation
( Chapters 10 and 11), training ( Chapter 8), staffing ( Chapter 5), and globalization ( Chapter 17).
DOWNSIZING Periodic reductions in a company’s workforce to improve its bottom line—often
called downsizing—are becoming standard business practice, even among firms that were once
legendary for their “no layoff” policies, such as IBM, Kodak, and Xerox.74 Although U.S. firms
traditionally were far more willing to resort to layoffs as a cost-cutting measure than companies
in other industrialized nations, globalization is quickly closing the gap. Chinese, Korean, and
Indian firms have also experienced massive layoffs in the wake of the economic crisis at the end
of the last decade.75 In recent years, German companies, ranging from electronics giant Siemens
to chip maker Infineron Technologies to Commerzbank, have announced thousands of layoffs.
Countries such as France, where authorities have repeatedly blocked management efforts to cut
costs via layoffs, often find that these well-intentioned efforts are counterproductive, leading
to a wave of bankruptcies. This was the fate of appliance maker Moulinex, once considered an
organizational challenges
Concerns or problems internal
to a firm; often a by-product of
environmental forces.
total quality management
(TQM)
An organization-wide approach
to improving the quality of all the
processes that lead to a final product
or service.
decentralization
Transferring responsibility and
decision-making authority from
a central office to people and
locations closer to the situation that
demands attention.
downsizing
A reduction in a company’s
workforce to improve its bottom line.
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
icon of French industry, which shut its doors in 2002, with almost 9,000 employees losing their
jobs as a result.76 Following a period of unprecedented growth, Iceland has experienced what
amounts to an economic catastrophe at the end of the past decade, with almost a quarter of its
workforce being laid off within a short time.77 More recently, Ireland and Greece had a similar
fate, with Italy, Portugal, and Spain not too far behind.
Chapter 6 is devoted to downsizing and how to manage the process effectively. Other rel
evant chapters include those on benefits ( Chapter 12 ), the legal environment ( Chapter 3 ), labor
relations ( Chapter 15), and employee relations and communications ( Chapter 13).
ORGANIZATIONAL RESTRUCTURING Over the past two decades there has been a dramatic transformation
in how firms are structured. Tall organizations that had many management levels are
becoming flatter as companies reduce the number of people between the chief executive officer
(CEO) and the lowest-ranking employee in an effort to become more competitive. Mergers and
acquisitions have been going on for decades. Often mergers fail because the cultures and HR
systems of the firms involved do not coalesce.78 A newer and rapidly growing form of interorganizational
bonding comes in the form of joint ventures, alliances, and collaborations among
firms that remain independent, yet work together on specific products to spread costs and risks.
To be successful, organizational restructuring requires effective management of human
resources.79 For instance, flattening the organization requires careful examination of staffing
demands, work flows, communication channels, training needs, and so on. Likewise,
mergers and other forms of interorganizational relations require the successful blending
of dissimilar organizational structures, management practices, technical expertise, and so
forth.80 Chapter 2 deals specifically with these issues. Other chapters that focus on related
issues are Chapter 5 (staffing), Chapter 8 (training), Chapter 9 (career development), and
Chapter 17 (international management). Chapters 10 and 11 (compensation issues) address
some of the growing controversies with regard to pay inequities between top and lower levels
as organizations become flatter.81
SELF-MANAGED WORK TEAMS The traditional system in which individual employees report to
a single boss (who oversees a group of three to seven subordinates) is being replaced in some
organizations by the self-managed team system. Employees are assigned to a group of peers and,
together, they are responsible for a particular area or task. It has been estimated that 40 percent
of U.S. workers are operating in some kind of team environment.82
According to two experts on self-managed work teams, “Today’s competitive environment
demands intense improvement in productivity, quality, and response time. Teams can deliver
this improvement. Bosses can’t. . . . Just as dinosaurs once ruled the earth and later faded into
extinction, the days of bosses may be numbered.”83
Very few rigorous scientific studies have been done on the effectiveness of self-managed
work teams. However, case studies do suggest that many firms that use teams enjoy impressive
payoffs. For example, company officials at General Motors’ Fitzgerald Battery Plant, which is
organized in teams, reported cost savings of 30 to 40 percent over traditionally organized plants.
At FedEx, a thousand clerical workers, divided into teams of 5 to 10 people, helped the company
reduce service problems by 13 percent.84
HR issues concerning self-managed work teams are discussed in detail in Chapter 2 (work
flows), Chapter 10 (compensation), and Chapter 11 (rewarding performance).
THE GROWTH OF SMALL BUSINESSES According to the U.S. Small Business Administration
(SBA), the precise definition of a small business depends on the industry in which it operates.
For instance, to be considered “small” by the SBA, a manufacturing company can have a maximum
of 500 to 1,500 employees (depending on the type of manufacturing). In wholesaling, a
company is considered small if the number of its employees does not exceed 100.85
An increasing percentage of the 14 million businesses in the United States are considered
to be small.86 One study using tax returns as its source of data found that 99.8 percent
of U.S. businesses have fewer than 100 employees and approximately 90 percent have fewer
than 20 employees.87 Another study reports that approximately 85 percent of these firms are
family owned.88 One study found that Latinos and immigrants have substantially higher entrepreneurship
rates than U.S. natives, and that African Americans increasingly are becoming
entrepreneurs.89
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
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Unfortunately, small businesses face a high risk of failure. According to some estimates, 40
percent of them fail in the first year, 60 percent fail before the start of the third year, and only
10 percent survive a decade.90 To survive and prosper, a small business must manage its human
resources effectively. For instance, a mediocre performance by one person in a 10-employee
firm can mean the difference between making a profit and losing money. In the seventh edition
of this book, each chapter has at least a section or a feature concerning special HR issues faced
by small businesses.
ORGANIZATIONAL CULTURE The term organizational culture refers to the basic assumptions
and beliefs shared by members of an organization. These beliefs operate unconsciously and
define in a basic “taken for granted” fashion an organization’s view of itself and its environment.
91 The key elements of organizational culture are:92
¦
Observed behavioral regularities when people interact, such as the language used and the
rituals surrounding deference and demeanor
¦
The norms that evolve in working groups, such as the norm of a fair day’s work for a fair
day’s pay
¦
The dominant values espoused by an organization, such as product quality or low prices
¦
The philosophy that guides an organization’s policy toward employees and customers
¦
The rules of the game for getting along in the organization—“the ropes” that a newcomer
must learn to become an accepted member
¦
The feeling or climate that is conveyed in an organization by the physical layout and the way
in which members of the organization interact with one another, customers, and outsiders
Firms that make cultural adjustments to keep up with environmental changes are likely to
outperform those whose culture is rigid and unresponsive to external jolts. Campbell’s Soup
Co.’s problems in the 2000s are often attributed to norms and values that have not kept up
with rapidly changing consumer tastes. According to Khermouch, writing in BusinessWeek , “It’s
definitely a risk-averse, control-oriented culture. It’s all about two things: financial control and
how much they can squeeze out of a tomato. Campbell needs to reward risk-taking, remove
organizational roadblocks, and summon up the courage to move bold initiatives from proposal to
execution quickly and regularly.”93
Changing an entrenched organizational culture is not easy. For example, Carleton S.
Fiorina, an outsider with a nontechnical background, was brought into Hewlett-Packard (HP) as
CEO in 1999 in order to overhaul the company.94 Yet she was fired just six years later because
her marketing focus, aggressiveness, autocratic style, flair for public drama, and what many
thought was an overblown ego alienated key HP employees, managers, and members of the
board of directors.
TECHNOLOGY Although technology is changing rapidly in many areas, such as robotics, one
area in particular is revolutionizing human resources: information technology.95 Telematics
technologies—a broad array of tools, including computers, networking programs, telecommunications,
and fax machines—are now available and affordable to businesses of every size, even
one-person companies. These technologies, coupled with the rise of the Internet, have impacted
businesses in a number of ways, specifically:
¦
The rise of telecommuting Because technology makes information easy to store, retrieve,
and analyze, the number of company employees working at home (telecommuters) at least
part-time has been increasing by 15 percent annually. Because telecommuting arrangements
are expected to continue to grow in the future, they raise many important issues,
such as performance monitoring and career planning. A recent survey uncovered that
almost half of off-site employees believe that people who work onsite get more recognition
than those who work off-site. And more telecommuters than onsite employees reported
that “they would be very likely to leave their current company if they found a similar job
and compensation elsewhere.”96 Rather than being easy work, telecommuting makes it
difficult for most telecommuters to draw a line between personal and work life, sometimes
making these jobs very stressful.
¦
The ethics of proper data use Data control, accuracy, right to privacy, and ethics are at
the core of a growing controversy brought about by the new information technologies,
organizational culture
The basic assumptions and
beliefs shared by members of an
organization. These beliefs operate
unconsciously and define in a
basic taken-for-granted fashion an
organization’s view of itself and its
environment.
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
particularly the Internet.97 Personal computers now make it possible to access huge databases
containing information on credit files, work history, driving records, health reports,
criminal convictions, and family makeup. One Web site, for example, promises that in
exchange for a $7 fee, it will scan “over two million records to create a single report on an
individual.”98 A critical observer notes: “The worst thing about this information blitzkrieg
is that even though errors abound, what’s said about us by computers is usually considered
accurate, and significant decisions are made based on this information. Often those
affected are unaware of the process and are given no chance to offer explanations.”99 The
Manager’s Notebook, “What to Do with Personal Information,” offers several examples
of the ethical human resource issues involved given easy access to personal data via
modern technology.
Ethics
What to Do with Personal Information
One of the main ethical challenges facing HR professionals is how to interpret and put to
use information about current and prospective employees that can be easily uncovered
through the Web. Consider the following recent examples:
¦ Jessica Bennett, a reporter for Newsweek, recently noted a simple experiment: “We asked
[another company] to do a scrub of the Web, with nothing but my (very common) name and
e-mail address to go on (no, they didn’t do any hacking—and voila! Within 30 minutes, the
company had my Social Security number; in two hours, they knew where I lived, my body
type, my hometown, and my health status.”
¦ “Most people are still under the illusion that when they go online, they’re anonymous,”
says Nicholas Carr, the author of The Shallows: What the Internet Is Doing to Our Brains.
But in reality, “every move they make is being collected into a database.”
¦ “It is technically impossible for Yahoo! to be aware of all software or files that may be
installed on a user’s computer when they visit our site,” laments Anne Toth, Yahoo’s vice
president of global policy and head of privacy.
¦ Even though there is very little evidence that a credit score is a predictor of job performance,
a recent Society for Human Resource Management (SHRM) study showed 60 percent of
employers used credit checks (obtained in seconds from the Internet) to vet job candidates.
Presumably a lower credit score is interpreted as evidence of poor working habits, irrespon-
sible behaviors, a higher likelihood of committing fraud, and such (but once again, these may
be presumptions with little evidence to back them up).
Sources: Based on www.privacyrights.org. (2011), online privacy; www.internet-privacy.com. (2011); S. Murray
(2010, Oct. 15). Credit checks on job seekers by employers attract scrutiny. Wall Street Journal, A-5; Fowler, G. A., and
Morrison, S. (2010, Nov. 4). Facebook expands mobile effort. Wall Street Journal, B-12; Vascellaro, J. E. (2010,
Nov. 9). Websites rein in tracking tools. Wall Street Journal, B-1; Bennett, J. (2010, Nov. 1). Privacy is dead.
Newsweek, 40; Stecklow, S., and Sonne, P. (2010, Nov. 24). Shunned profiling method on the verge of comeback.
Wall Street Journal, A-14; Angwin, J., and Thurm, S. (2010, Oct. 8). Privacy defense mounted. Wall Street Journal,
B-6; Fowler, G. A., and Steel, E. (2010). Facebook says user data sold to broker. Wall Street Journal , B-3. ¦¦
MANAGER’S NOTEBOOK
¦
Electronic monitoring Many companies are using sophisticated software that monitors
when, how, and why workers are using the Internet.
According to Clares Voice, a Dallas-based messaging security company, “We look at
every piece of mail while it is in motion.”100 E-mail messages are now used as evidence
for all sorts of legal cases concerning age discrimination, sexual harassment, price fixing,
and the like.101 “Some 70 percent of the evidence that we routinely deal with is in the
form of electronic communication,” says Garry G. Mathiason, a senior partner at Littler
Mendelson, a prestigious legal firm in San Francisco.102
¦
Medical testing Genetic testing, high-tech imaging, and DNA analysis may soon be available
to aid in making employment decisions. As noted in a report concerning the potential
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
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use of brain scans as a selection tool, “[i]t used to be an art to find out which job candidate
would make the ideal manager. It may soon be cutting-edge technology.”103 Firms’ decisions
about how to harness the new information (to screen applicants, to establish health
insurance premiums, to decide who should be laid off and the like) are full of ethical implications.
IBM seems to be on the forefront, recently announcing that it will not use genetic
data for employment decisions. This is one area where the legal system is still far behind
technical advances.
¦
An increase in egalitarianism Because information is now available both instantaneously
and broadly, organizational structures are becoming more egalitarian , meaning
that power and authority are spread more evenly among all employees. Groupware
networks, which enable hundreds of workers to share information simultaneously, can
give office workers intelligence previously available only to their bosses.104 They also
enable the rank-and-file to join in online discussions with senior executives. In these
kinds of interactions people are judged more by what they say than by their rank on the
corporate ladder.105
The challenges and implications of rapidly changing technologies—especially information
technologies—for human resources are discussed in every chapter of this book.
INTERNAL SECURITY The September 11, 2001, terrorist attacks and several subsequent plots
since then have engendered a collective obsession with security in the United States. Many con
sulting firms are now focusing their attention on how to detect potential security problems, and a
wide range of firms and industry groups, from trucking associations to sporting-event organizers,
have made security screening a top priority.106 Apart from background checks, HR departments
are increasingly involved in beefing up security details by scanning employees’ eyes and finger
prints for positive identification, hiring armed guards to patrol facilities, identifying employees
who might pose a violence threat, and even spotting potential spies.107
Although few would question that security checks are necessary, one concern from a human
resource perspective is to ensure that applicants’ and employers’ rights are not violated and that
due process is followed whenever suspected problems are identified. For example, should a per
son convicted of a drunken driving violation 15 years ago be denied a job as a flight attendant?
How about people whose past reveals some facts that may be warning signals, depending on
the bias of the evaluator (for instance, graduation from a Middle Eastern university, frequent
job changes, multiple divorces, and the like)? Health sites offer tools used by medical pros and
companies to track data, including test results from HIV and cancer exams.108 Should firms use
this type of information as part of their selection process?
According to a study conducted by a computer-based, security-service firm, Automatic
Data Accessing, more than 40 percent of résumés misrepresent education or employment
history. However, according to an article in USA Today, “how employers respond when they
find an employee has fibbed varies depending on company policies, the worker’s value, and
the organizational culture. Many companies say they are willing to overlook some degree
of inaccuracy.”109 In other words, how security-related information is used is a matter of
interpretation, except perhaps in the most grievous cases. Chapter 14 , “Respecting Employee
Rights and Managing Discipline,” deals with these and related issues.
DATA SECURITY Numerous cases of unauthorized access to private data have been revealed
during the past decade, in some situations leading to widespread identity fraud. According
to a recent New York Times report, a well-financed computer underground operates from
countries with highly skilled technicians that are subject to very little, if any, government
control.110 “Right now the bad guys are improving more quickly than the good guys,” says
Patrick Lincoln, director of the computer science laboratory at SRI International, a science
and technology research group.111 The Privacy Rights Clearinghouse, a consumer advocacy
group in San Diego, counted over 80 major data breaches involving the personal information
of more than 50 million people.112 In one case, CardSystems (a credit card processor)
left the account information of more than 40 million shareholders exposed to fraud.113 Such
well-known organizations as Lexis/Nexis Group, ChoicePoint, Bank of America, the United
States Air Force, the Pentagon, and even the FBI experienced serious data breaches during
2005–2012.114 The recent Wilkileaks dump of hundreds of thousands of U.S. secrets and
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
16 PART I • INTRODUCTION
WikiLeaks’ publication of classified
material from the U.S. State
Department demonstrates that it
only takes one person with access to
confidential information to damage
an organization.
Source: © Karelindmitriy/Dreamstime.com
outsourcing
Subcontracting work to an outside
company that specializes in and is
more efficient at doing that kind of
work.
classified material from the military and the State Department into the Web represents the
most extreme case so far as to how even one low-level employee can use computer technology
to create major damage and embarrassment for an organization. Data security is not just
a concern for specialized computer experts; it should also involve HR policies to determine
who has access to sensitive information and monitoring systems to prevent abuses by managers
and employees.
OUTSOURCING Many large firms now shift work once performed internally to outside suppliers
and contractors, a process called outsourcing. The motivation is simple: Outsourcing saves
money. The Wall Street Journal reports that more than 40 percent of Fortune 500 companies
have outsourced some department or service—everything from HR administration to computer
systems.115 A survey conducted by the Worldatwork Association (which has more than 10,000
members in responsible HR positions) found that the following HR practices are now completely
or partially outsourced by a large proportion of participating firms: health and welfare
(79 percent), pension plans (90 percent), payroll (62%), training (50%), and recruitment and
selection (32 percent).116
Outsourcing creates several HR challenges for firms. Although it often helps companies
slash costs, employees may face layoffs when their jobs are farmed out to the lowest
bidder. For instance, UPS subcontracted 5,000 jobs at its 65 customer service centers.117 In
addition, customer dissatisfaction can result if subcontractors are not carefully watched and
evaluated. For instance, a group of former employees at now-liquidated Skillset Software
Inc. filed suit against its outside HR provider, TriNet Group Inc., for negligence in handling
their claims. Part of the problem is that these HR providers often don’t provide enough access
and human interaction (many rely extensively on the Web) to handle employee concerns and
complaints.118 Subcontractors may take on more work than they can handle,119 and small
businesses may not receive the best available service and support. When subcontracting HR
activities such as training, staffing, and compensation, data security issues become paramount.
The organization would have to trust that the subcontractor can effectively protect
personal data (such as Social Security numbers, marital status, income level, performance
problems, bank accounts) from misuse by insiders or outsiders. Outsourcing that includes a
foreign location (which is increasingly common) further complicates the data security issue.
Finally, outsourcing poses major difficulties for international firms trying to enforce ethical
HR standards among its subcontractors around the world (see the Manager’s Notebook,
“Ethical Outsourcing: The Case of Nike”).
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Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 17
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 17
Global
Ethical Outsourcing: The Case of Nike
In 1998, exposure of deplorable factory conditions maintained by its suppliers overseas forced
Nike’s founder Phil Knight to acknowledge that the “Nike product has become synonymous
with slave wages, forced overtime, and arbitrary abuse.” Consumer boycotts and protests drew
widespread attention to problems such as child labor and filthy working conditions in developing
countries. Nike, which uses factories in China, Vietnam, Indonesia, and Thailand to produce 98
percent of its shoes at low cost, responded with an intensive auditing program to enforce its labor
standards and allowed young workers to earn money by going to school instead of working in its
factories. Most consumers assumed the problem was solved.
However, an undercover reporter recently discovered major violations at a Hytex factory in
Malaysia that makes T-shirts for Nike. Approximately 1,200 migrant employees reportedly were
living in cramped and dirty rooms and had been deprived of their passports and forced to pay
a government tax levied on the factory. Nike acted quickly to transfer the workers to approved
housing, reimburse the fees, and provide them with immediate access to their passports, even
offering return airfare to any who wished to go home.
The discovery prompts questions about whether it is even possible to act ethically while
relying on factory labor overseas. “The compliant factory doesn’t exist in my experience,” says
the CEO of the labor rights group Fair Labor Association. U.S. multinationals must overcome
a number of hurdles, not least of which is the fact that weak governments in some developing
nations are lax about monitoring factories supported by global brands. The firms themselves are
sometimes part of the problem, imposing tight deadlines and frequent changes to which suppli-
ers may respond by pushing workers harder than ethical standards allow. In Nike’s case, with
80 percent of its overseas contract workers being unskilled and undereducated females 18 to 24
years of age, employees have few resources to push back.
The company has undoubtedly made some progress on improving working conditions
among its 40-plus suppliers. However, as the report from Malaysia shows, and CEO Mark
Parker admits, “This is a never-ending challenge. . . . I’m proud of what we’ve accomplished,
but we’re still not where we need to be.” Not much longer after this statement was made, new
allegations surfaced about Nike’s subcontractors in Honduras owing employees $2.2 million in
severance pay. As a result, the University of Wisconsin at Madison recently ended a licensing
deal with Nike, and Nike is facing renewed demonstrations against it in several campuses around
the country.
Sources: Brettman, A. (2010, April 30). Two workers from former Nike subcontractor in Honduras visit Portland. The
Oregonian, www.oregonlive.com ; Quick Takes, Inside Higher Ed (2011). Madison will end licensing deal with Nike.
http://insiderhighered.com ; The Cornell Daily Sun (2011). Students protest Cornell’s involvement with Nike. http://
cornellsun.com ; Levenson, E. (2008, November 17). Citizen Nike. CNNMoney.com, http://cnnmoney.com ; (2008,
August 5). “Malaysia denies workers’ abuse at Nike factory,” International Herald Tribune, www.iht.com ; Skidmore, S.
(2008, August 1). Nike finds major labor violations at Malaysian factory. USA Today, http://usatoday.com. ¦¦
MANAGER’S NOTEBOOK
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We discuss outsourcing and its challenges for HRM throughout this book. Chapter 2 discusses
subcontracting within the context of downsizing, and Chapter 15 , on labor relations, discusses how
outsourcing affects unions.
PRODUCT INTEGRITY One complex issue that has received a lot of media attention during the
last three years is the extent to which firms can effectively monitor the integrity of products or
subcomponents that are made in foreign countries. For instance, traces of melamine have been
found in infant formula, which could be deadly for children, in the United States and Europe.120
A similar problem has been reported with bad ingredients used by mainstream drug manufacturers
that were imported from China as well as counterfeit parts used by the U.S. military.121 The
detection and prevention of these problems may require HR policies that involve the careful
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
18 PART I • INTRODUCTION
18 PART I • INTRODUCTION
Human resource issues that address
the decisions most pertinent to
individual employees.
selection, training, and appropriate incentives for the responsible managers and employees to
acquire and monitor inputs from global suppliers (more on this in Chapter 17 , which examines
international HR issues).
Individual Challenges
Human resource issues at the individual level address the decisions most pertinent to specific
employees. These individual challenges almost always reflect what is happening in the larger
organization. For instance, technology affects individual productivity; it also has ethical ramifications
in terms of how information is used to make HR decisions (for example, use of credit or
medical history data to decide whom to hire). How the company treats its individual employees is
also likely to affect the organizational challenges we discussed earlier. For example, if many key
employees leave the firm to join competitors, the organization’s competitive position is affected.
In other words, there is a two-way relationship between organizational and individual challenges.
This is unlike the relationship between environmental and organizational challenges, in which the
relationship goes only one way (see Figure 1.1 ); few organizations can have much impact on the
environment. The most important individual challenges today are matching people and organizations,
ethics and social responsibility, productivity, empowerment, brain drain, and job security.
MATCHING PEOPLE AND ORGANIZATIONS Research suggests that HR strategies contribute
to firm performance most when the firm uses these strategies to attract and retain the type of
employee who best fits the firm’s culture and overall business objectives. For example, one
study showed that fast-growth firms perform better with managers who have a strong marketing
and sales background, who are willing to take risks, and who have a high tolerance
for ambiguity. However, these managerial traits actually reduce the performance of mature
firms that have an established product and are more interested in maintaining (rather than
expanding) their market share.122
Chapter 5 deals specifically with the attempt to achieve the right fit between employees and
the organization to enhance performance.
ETHICS AND SOCIAL RESPONSIBILITY In previous editions of this book, we discussed the
well-publicized scandals at Enron, Worldcom, Tyco, and Global Crossings in which corruption
apparently became a way of life at the top. Since then, we can scarcely read any business
periodical without being bombarded by multiple cases of egregious unethical behaviors
across a wide variety of organizations. These include, for example, American International
Group (or AIG, one of the largest insurance companies, which artificially inflated its reserves
by $500 million); 123 Time Warner (accused of fraudulent accounting);124 Bank of America
(forced to pay $1 billion in fines for ethical lapses);125 CitiGroup (several officers are being
tried for alleged money laundering);126 Boeing (where top executives were sentenced in an Air
Force procurement scandal involving millions of dollars);127 ChoicePoint (one of the largest
credit reporting agencies, which allegedly kept hidden for a month information about an identity
theft ring’s access to personal data on about 145,000 people, providing sufficient time for
top executives to dump their ChoicePoint stock);128 Stratton Veterans Affairs Medical Center
(at which certain employees posing as doctors conducted unauthorized clinical research on cancer
patients, leading to death in some cases);129 State University of New York at Albany (whose
president, Karen R. Hitchcock, was forced to resign after accusations that she hired a contractor
who promised to fund an endowed university professorship just for her);130 the famous
Getty Museum in Los Angeles (which is beset by charges of stolen antiquities and profligate
executive perks);131 drug makers accused of systematically hiding the side effects of certain
medicines;132 the ex-governor of Illinois, Rod R. Blagojevich, who brazenly put up for sale his
appointment of Barack Obama’s successor to the U.S. Senate;133; and Royal Dutch Shell found
guilty of paying millions of dollars in bribes to secure contracts.134
We can safely assume that reported cases of unethical behavior represent only the tip of the
iceberg. 135
In response to these concerns, people’s fears that their employers will behave unethically are
increasing,136 so much so that many firms and professional organizations have created codes of
ethics outlining principles and standards of personal conduct for their members. Unfortunately,
these codes often do not meet employees’ expectations of ethical employer behavior. In a poll
ISBN
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Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
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CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 19
of Harvard Business Review readers, almost half the respondents indicated their belief that managers
do not consistently make ethical decisions.137 To the common person on the street the
economic crisis seems to have reinforced that image. As noted in a recent front page New York
Times story, “By almost any measure, the past year [2008] was a complete disaster for Wall
Street––except, that is, when the bonuses arrived. Despite crippling losses, multibillion-dollar
bailouts and the passing of some of the most prominent names in the business, executives at
financial companies in New York, the now diminished world capital of capital, collected an estimated
$18.4 billion in bonuses last year.”138 President Obama called this situation “immoral.”
The widespread perceptions of unethical behavior may also be attributed to the fact that
managerial decisions are rarely clear-cut. Except in a few blatant cases (such as willful misrepresentation),
what is ethical or unethical is open to debate. Even the most detailed codes
of ethics are still general enough to allow much room for managerial discretion. In fact, many
of the executives convicted of illegal activities thought they were just buying time to turn the
company around or that subordinates were too zealous in implementing “revenue enhancing”
directives.139 Perhaps even more so than in other business areas, many specific decisions related
to the management of human resources are subject to judgment calls. Often these judgment calls
constitute a Catch-22 because none of the alternatives is desirable.140
Some companies are using the Web to infuse employees and managers with ethical values.
For instance, many of Lockheed Martin’s 160,000 employees are required to take a step-by-step
online training program on ethics.141 CitiGroup started an online ethics training program that is
mandatory for all of its 300,000 employees.142 Other companies are using more traditional training
methods to implement so called “zero-tolerance policies.” For instance, at Goldman Sachs,
the chief executive (Henry M. Paulson, Jr., who later became U.S. Treasury Secretary) moderated
seminars on various business judgments and ethical issues with all the bank’s managing
directors.143 One thing seems certain: Failure to self-regulate leads to constraining legislation.
A 2011 federal law, for instance, provides financial incentives for employees to tell regulators
directly about securities fraud and other wrongdoings, thus bypassing the company’s HR department
and management.
A company that exercises social responsibility attempts to balance its commitments—not
only to its investors, but also to its employees, its customers, other businesses, and the community
or communities in which it operates. For example, McDonald’s established Ronald
McDonald houses years ago to provide lodging for families of sick children hospitalized away
from home. Sears and General Electric support artists and performers, and many local merchants
support local children’s sports teams. Philip Morris is trying to turn around its “ugly duckling”
image by entering the business of treating smoke-related illnesses and supporting research projects
on lung-disease prevention.144
An entire chapter of this book is devoted to employee rights and responsibilities ( Chapter 13 );
each chapter includes (at selected points) pertinent ethical questions for which there are no absolute
answers. Most chapters also include a Manager’s Notebook dealing with ethical issues related
to the specific topic of that chapter. See the accompanying box for this chapter.
PRODUCTIVITY Most experts agree that productivity gains from technology have altered the economic
playing field since the mid-1990s. Productivity is a measure of how much value individ-productivity
ual employees add to the goods or services that the organization produces. The greater the output A measure of how much value
per individual, the higher the organization’s productivity. For instance, U.S. workers produce a individual employees add to
the goods or services that the
pair of shoes in 24 minutes, whereas Chinese workers take three hours.145 In a “knowledge-based
organization produces.
economy” driven by technology, the success of organizations will depend more and more on the
value of intangible human capital. This capital may be “the creativity of their designers (Intel
Corp. comes to mind), the proficiency of their software architects (as at Sun Microsystems Inc.),
the knowledge of marketers (Procter & Gamble Co., for instance), and even the strength of the
internal culture (as in the case of Southwest Airlines).”146 From an HR perspective, employee
productivity is affected by ability, motivation, and quality of work life.
Employee ability, competence in performing a job, can be improved through a hiring and ability
placement process that selects the best individuals for the job;147 Chapter 5 specifically deals with Competence in performing a job.
this process. It can also be improved through training and career development programs designed
to sharpen employees’ skills and prepare them for additional responsibilities; Chapters 8 and 9
discuss these issues.
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
motivation
A person’s desire to do the best
possible job or to exert the maximum
effort to perform assigned tasks.
Motivation refers to a person’s desire to do the best possible job or to exert the maximum
effort to perform assigned tasks. Motivation energizes, directs, and sustains human behavior.
Several key factors affecting employee motivation are discussed in this book, including work
design ( Chapter 2), matching of employee and job requirements ( Chapter 5), rewards ( Chapters
11 and 13), and due process ( Chapter 14).
quality of work life
A measure of how safe and satisfied
employees feel with their jobs.
A growing number of companies recognize that employees are more likely to choose a firm
and stay there if they believe that it offers a high quality of work life. A high quality of work life
is related to job satisfaction, which, in turn, is a strong predictor of absenteeism and turnover.148
A firm’s investments in improving the quality of work life also pay off in the form of better customer
service.149 We discuss issues related to job design and their effects on employee attitudes
and behavior in Chapter 2.
empowerment
Providing workers with the skills
and authority to make decisions
that would traditionally be made by
managers.
EMPOWERMENT Many firms have reduced employee dependence on superiors, placing more
emphasis on individual control over (and responsibility for) the work that needs to be done.
This process has been labeled empowerment because it transfers direction from an external
source (normally the immediate supervisor) to an internal source (the individual’s own desire to
do well). In essence, the process of empowerment entails providing workers with the skills and
authority to make decisions that would traditionally be made by managers. The goal of empowerment
is an organization consisting of enthusiastic, committed people who perform their work
ably because they believe in it and enjoy doing it (internal control). This situation is in stark
contrast to an organization that gets people to work as an act of compliance to avoid punishment
(for example, being fired) or to qualify for a paycheck (external control).
Empowerment can encourage employees to be creative and to take risks, which are key components
that can give a firm a competitive edge in a fast-changing environment. Empowering
employees is “the hardest thing to do because it means giving up control,” says Lee Fielder,
retired president of Kelly Springfield Tire Co., a unit of Goodyear. “But [according to Fielder],
managers who try to tell employees what and how to do every little thing will end up with only
mediocre people, because the talented ones won’t submit to control.”150 To encourage risk taking,
General Electric past CEO Jack Welch exhorted his managers and employees to “shake it,
shake it, break it.”151
HR issues related to internal and external control of behavior are discussed in Chapter 2
(work flows).
brain drain
The loss of high-talent key personnel
to competitors or start-up ventures.
BRAIN DRAIN With organizational success more and more dependent on knowledge held by
specific employees, companies are becoming more susceptible to brain drain —the loss of
intellectual property that results when competitors lure away key employees. Important industries
such as semiconductors and electronics also suffer from high employee turnover when key
employees leave to start their own businesses. This brain drain can negatively affect innovation
and cause major delays in the introduction of new products.152
At a national level, brain drain has been a major problem for developing countries because
the best educated tend to leave. Universities and R&D labs in the United States are full of faculty
and graduate students from China, India, and other emerging economies. In some of the poorest
countries, like Haiti, more than three-fourths of college-educated individuals have emigrated.
According to the National Academy of Engineering, more than half of engineers with advanced
degrees in the United States are foreign born, as are over one-third of Nobel-award winners
during the past 15 years.153 At Microsoft, more than 20 percent of employees are from India.
This dependence on foreign talent places the United States in a vulnerable position, particularly
if giants such as China and India continue their fast growth in the future.154 In fact, a new term
has been coined since the last edition of this book: reverse brain drain. It refers to foreign-born
Americans who decide to return to their homelands, particularly in rapidly growing emergent
economies such as China, India, and Brazil.
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Brain drain and measures for dealing with it effectively are discussed in several chapters of
this book, particularly in Chapter 3 (equal opportunity and the legal environment), Chapter 4 (managing
diversity), Chapter 6 (employee separations and outplacement), and Chapter 11 (rewarding
performance).
JOB INSECURITY As noted in the introduction, most workers cannot count on a steady job and
regular promotions. Companies argue that regardless of how well the firm is doing, layoffs have
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
20 PART I • INTRODUCTION
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become essential in an age of cutthroat competition. For employees, however, chronic job insecurity
is a major source of stress and can lead to lower performance and productivity. Reed
Moskowitz, founder of a stress disorder center at New York University, notes that workers’
mental health has taken a turn for the worse because “nobody feels secure anymore.”155
With the aging of the U.S. population and the decline of union protection, job insecurity
poses two additional problems for many employees and society at large. One is that the corporate
crisis at the end of the decade has produced huge losses in pension plans, meaning that many
older employees can no longer afford to retire and will therefore compete for jobs with younger
workers.156 An article in BusinessWeek labeled these older adults “the unretired”: “Seniors who
thought they were set for life just a year ago now face the prospect of going back to work for
two, five, or even 10 years. They are sprucing up their resumes, calling old work contacts, and
flocking to employment sites.”157 Retirementjobs.com, a career site for people older than age 50,
is currently handling about 600,000 visitors per month, more than double the number just a short
time ago.158 The second problem with this trend is that in the United States health insurance is
largely tied to a person’s job, thus the loss of a job often means the loss of health benefits for the
employee and his or her family, perhaps at an age when they need it the most.159 This may be
one reason for the sharp increase in the number of patients visiting hospital emergency rooms
for routine care; emergency rooms are legally obliged to see all patients who enter their doors,
regardless of their ability to pay.160
Paradoxically, voluntary employee turnover is still a problem for many employers (for
instance, in the restaurant and hospitality industry an annual turnover rate of 50 percent or more
is not unusual), and this can be very costly in terms of recruitment and training costs as well as
customer dissatisfaction.161 Recent crackdowns on illegal immigrants (who work in many of the
industries with high turnover, such as meat packing, agriculture, fast-food restaurants, and the
like) have made it much more difficult to replace those who quit.162
We discuss the challenges of laying off employees and making the remaining employees
feel secure and valued in Chapter 6 . We discuss employee stress (and ways to relieve it) in
Chapter 16. We explore union–management relations in Chapter 15.
Planning and Implementing Strategic HR Policies
To be successful, firms must closely align their HR strategies and programs (tactics) with environmental
opportunities, business strategies, and the organization’s unique characteristics and
distinctive competence.
The Benefits of Strategic HR Planning
The process of formulating HR strategies and establishing programs or tactics to implement
them is called strategic human resource (HR) planning. When done correctly, strategic HR strategic human resource
planning provides many direct and indirect benefits for the company. (HR) planning
The process of formulating HR
ENCOURAGEMENT OF PROACTIVE RATHER THAN REACTIVE BEHAVIOR Being proactive means strategies and establishing programs
looking ahead and developing a vision of where the company wants to be and how it can use or tactics to implement them.
human resources to get there. In contrast, being reactive means responding to problems as they
come up. Companies that are reactive may lose sight of the long-term direction of their business;
proactive companies are better prepared for the future. For instance, as bankruptcies have soared
during the past three years or so, companies need to hold on to their key talent, perhaps offering
special inducements for star performers to persevere through hard times. Although it might
appear counterintuitive to spend money on employee compensation during economic difficulties,
it is crucial to retain key employees.163
EXPLICIT COMMUNICATION OF COMPANY GOALS Strategic HR planning can help a firm develop
a focused set of strategic objectives that capitalizes on its special talents and know-how.
For instance, 3M has had an explicit strategy of competing through innovation, with the goal
of having at least 25 percent of revenues generated from products introduced during the past five
years. To achieve this goal, 3M’s human resource strategy may be summarized as “Hire top-
notch scientists in every field, give each an ample endowment, then stand back and let them do
their thing. The anything goes approach has yielded thousands of new products over the decades,
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
from sand-paper and magnetic audio tape to Post-it notes and thinsulate insulation.”164 One hundred
years after its foundation, 3M clearly expresses the philosophy that guides its HR practices:
“The spirit of innovation. That’s 3M. Our unstoppable commitment to innovation, creating new
technologies and products, places us exactly where our customer need us. . . . Every day, 3M
people find new ways to make amazing things happen.”
STIMULATION OF CRITICAL THINKING AND ONGOING EXAMINATION OF ASSUMPTIONS
Managers often depend on their personal views and experiences to solve problems and make business
decisions. The assumptions on which they make their decisions can lead to success if they
are appropriate to the environment in which the business operates. However, serious problems can
arise when these assumptions no longer hold. For instance, in the 1980s IBM deemphasized sales
of its personal computer because IBM managers were afraid that PC growth would decrease the
profitability of the firm’s highly profitable mainframe products. This decision allowed competitors
to move aggressively into the PC market, eventually devastating IBM.165
Strategic HR planning can stimulate critical thinking and the development of new initiatives
only if it is a continuing and flexible process rather than a rigid procedure with a discrete beginning
and a specific deadline for completion. This is why many firms have formed an executive
committee, which includes an HR professional and the CEO, to discuss strategic issues on an
ongoing basis and periodically modify the company’s overall HR strategies and programs.
IDENTIFICATION OF GAPS BETWEEN CURRENT SITUATION AND FUTURE VISION Strategic HR
planning can help a firm identify the difference between “where we are today” and “where we
want to be.” Despite a $1 billion budget and a staff of 7,000, 3M’s vaunted laboratory was not
able in recent years to deliver fast growth, partly because some of the R&D lacked focus and
money wasn’t always wisely spent. To speed up growth, 3M announced a series of performance
objectives for individual business chiefs who had before enjoyed much free rein. In addition,
3M introduced specially trained “black belts” to root out inefficiencies in departments from
R&D to sales.166
ENCOURAGEMENT OF LINE MANAGERS’ PARTICIPATION For HR strategy to be effective, line
managers at all levels must buy into it. If they do not, it is likely to fail. For example, a large cosmetics
manufacturing plant decided to introduce a reward program in which work teams would
receive a large bonus for turning out high-quality products. The bonus was part of a strategic plan
to foster greater cooperation among employees. But the plan, which had been developed by top
executives in consultation with the HR department, backfired when managers and supervisors
began hunting for individual employees responsible for errors. The plan was eventually dropped.
IDENTIFICATION OF HR CONSTRAINTS AND OPPORTUNITIES When overall business strategy planning
is done in combination with HR strategic planning, firms can identify the potential problems
and opportunities with respect to the people expected to implement the business strategy.
A cornerstone of Motorola’s business strategy is to identify, encourage, and financially
support new-product ventures. To implement this strategy, Motorola relies on in-house venture
teams, normally composed of five to six employees, one each from research and development
(R&D), marketing, sales, manufacturing, engineering, and finance. Positions are broadly defined
to allow all employees to use their creativity and to serve as champions of new ideas.
CREATION OF COMMON BONDS A substantial amount of research shows that, in the long run,
organizations that have a strong sense of “who we are” tend to outperform those that do not.
A strategic HR plan that reinforces, adjusts, or redirects the organization’s present culture can
foster values such as a customer focus, innovation, fast growth, and cooperation.
The Challenges of Strategic HR Planning
In developing an effective HR strategy, the organization faces several important challenges.
MAINTAINING A COMPETITIVE ADVANTAGE Any competitive advantage enjoyed by an organization
tends to be short-lived because other companies are likely to imitate it. This is as true for
HR advantages as for technological and marketing advantages. For example, many high-tech
firms have “borrowed” reward programs for key scientists and engineers from other successful
high-tech firms.
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
ISBN
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CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 23
The challenge from an HR perspective is to develop strategies that offer the firm a sustained
competitive advantage. For instance, a company may develop programs that maximize present
employees’ potential through carefully developed career ladders (see Chapter 9 ), while at the
same time rewarding them generously with company stock with strings attached (for example, a
provision that they will forfeit the stock if they quit before a certain date).
REINFORCING OVERALL BUSINESS STRATEGY Developing HR strategies that support the firm’s
overall business strategy is a challenge for several reasons. First, top management may not
always be able to enunciate clearly the firm’s overall business strategy. Second, there may be
much uncertainty or disagreement concerning which HR strategies should be used to support
the overall business strategy. In other words, it is seldom obvious how particular HR strategies
will contribute to the achievement of organizational strategies. Third, large corporations may
have different business units, each with its own business strategies. Ideally, each unit should
be able to formulate the HR strategy that fits its business strategy best. For instance, a division
that produces high-tech equipment may decide to pay its engineering staff well above average to
attract and retain the best people, whereas the consumer products division may decide to pay its
engineers an average wage. Such differentials may cause problems if the engineers from the two
divisions have contact with each other. Thus, diverse HR strategies may spur feelings of inequity
and resentment.
AVOIDING EXCESSIVE CONCENTRATION ON DAY-TO-DAY PROBLEMS Some managers are so busy
putting out fires that they have no time to focus on the long term. Nonetheless, a successful HR
strategy demands a vision tied to the long-term direction of the business. Thus, a major challenge
of strategic HR planning is prodding people into stepping back and considering the big picture.
In many small companies, staffs are so absorbed in growing the business today that they
seldom pause to look at the big picture for tomorrow. Also, strategic HR planning in small com
panies is often synonymous with the whims of the company owner or founder, who may not take
the time to formalize his or her plans.
DEVELOPING HR STRATEGIES SUITED TO UNIQUE ORGANIZATIONAL FEATURES No two firms
are exactly alike. Firms differ in history, culture, leadership style, technology, and so on. The
chances are high that any ambitious HR strategy or program that is not molded to organizational
characteristics will fail.167 And therein lies one of the central challenges in formulating HR strategies:
creating a vision of the organization of the future that does not provoke a destructive clash
with the organization of the present.
COPING WITH THE ENVIRONMENT Just as no two firms are exactly alike; no two firms operate in
an identical environment. Some must deal with rapid change, as in the computer industry; others
operate in a relatively stable market, as in the market for food processors. Some face a virtually
guaranteed demand for their products or services (for example, medical providers); others
must deal with turbulent demand (for example, fashion designers). Even within a very narrowly
defined industry, some firms may be competing in a market where customer service is the key
(IBM’s traditional competitive advantage), whereas others are competing in a market driven
by cost considerations (the competitive advantage offered by the many firms producing IBM
clones). A major challenge in developing HR strategies is crafting strategies that will work in the
firm’s unique environment to give it a sustainable competitive advantage.
SECURING MANAGEMENT COMMITMENT HR strategies that originate in the HR department
will have little chance of succeeding unless managers at all levels—including top executives—
support them completely. To ensure managers’ commitment, HR professionals must work
closely with them when formulating policies.
TRANSLATING THE STRATEGIC PLAN INTO ACTION The acid test of any strategic plan is whether
it makes a difference in practice. If the plan does not affect practice, employees and managers
will regard it as all talk and no action.
Cynicism is practically guaranteed when a firm experiences frequent turnover at the top,
with each new wave of high-level managers introducing their own freshly minted strategic plan.
Perhaps the greatest challenge in strategic HR planning lies not in the formulation of strategy,
but rather in the development of an appropriate set of programs that will make the strategy work.
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
24 PART I • INTRODUCTION
24 PART I • INTRODUCTION
The options available to a firm in
designing its human resources
system.
COMBINING INTENDED AND EMERGENT STRATEGIES Debate continues over whether strategies
are intended or emergent—that is, whether they are proactive, rational, deliberate plans designed
to attain predetermined objectives (intended) or general “fuzzy” patterns collectively molded by
the interplay of power, politics, improvisation, negotiation, and personalities within the organization
(emergent).168 Most people agree that organizations have intended and emergent strategies,
that both are necessary, and that the challenge is to combine the best aspects of the two.
Intended strategies can provide a sense of purpose and a guide for the allocation of resources.
They are also useful for recognizing environmental opportunities and threats and for mobilizing
top management to respond appropriately. On the downside, intended strategies may lead to a
top-down strategic approach that squashes creativity and widespread involvement.
Emergent strategies also have their advantages and disadvantages. Among their benefits:
(1) They involve everyone in the organization, which fosters grassroots support; (2) they develop
gradually out of the organization’s experiences and, thus, can be less upsetting than intended
strategies; and (3) they are more pragmatic than intended strategies because they evolve to deal
with specific problems or issues facing the firm. On the negative side, emergent strategies may
lack strong leadership and fail to infuse the organization with a creative vision.169
Combining intended and emergent strategies effectively requires that managers blend the
benefits of formal planning (to provide strong guidance and direction in setting priorities) with
the untidy realities of dispersed employees who, through their unplanned activities, formulate
emergent strategies throughout the firm.
ACCOMMODATING CHANGE Strategic HR plans must be flexible enough to accommodate
change.170 A firm with an inflexible strategic plan may find itself unable to respond to changes
quickly because it is so committed to a particular course of action. This may lead the organization
to continue devoting resources to an activity of questionable value simply because so much
has been invested in it already.171 The challenge is to create a strategic vision and develop the
plans to achieve it while staying flexible enough to adapt to change.
Strategic HR Choices
A firm’s strategic HR choices are the options it has available in designing its human
resources system. Figure 1.2 shows a sampling of strategic HR choices. Here keep three
things in mind. First, the list is not exhaustive. Second, many different HR programs or practices
may be used separately or together to implement each of these choices. For example, if
a firm chooses to base pay on performance, it can use many different programs to implement
this decision, including cash awards, lump-sum annual bonuses, raises based on supervisory
appraisals, and an employee-of-the-month award. Third, the strategic HR choices listed in
Figure 1.2 represent two opposite poles on a continuum. Very few organizations fall at these
extremes. Some organizations will be closer to the right, some closer to the left, and others
closer to the middle.
A brief description of the strategic HR choices shown in Figure 1.2 follows. We will examine
these choices and provide examples of companies’ strategic decisions in these areas in later
chapters.
WORK FLOWS Work flows are the ways tasks are organized to meet production or service
goals. Organizations face several choices in what they emphasize as they structure work flows
( Chapter 2). They can emphasize:
¦
Efficiency (getting work done at minimum cost) or innovation (encouraging creativity,
exploration, and new ways of doing things, even though this may increase production
costs)
¦
Control (establishing predetermined procedures) or flexibility (allowing room for exceptions
and personal judgment)
¦
Explicit job descriptions (in which each job’s duties and requirements are carefully spelled
out) or broad job classes (in which employees perform multiple tasks and are expected to
fill different jobs as needed)
¦
Detailed work planning (in which processes, objectives, and schedules are laid out well in
advance) or loose work planning (in which activities and schedules may be modified on
relatively short notice, depending on changing needs)
ISBN
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Copyright © 2012 by Pearson Education, Inc.
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 25
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 25
Innovation
Flexibility
Broad job classes
Loose work planning
Internal recruitment
Supervisor makes hiring decision
Emphasis on “fit” of applicant with firm culture
Informal hiring of new employees
Staffing (Chapter 5)
External recruitment
HR department makes hiring decision
Emphasis on applicants’ technical qualifications and skills
Formal hiring of new employees
Voluntary inducements to retire
Hiring freeze
Continuing support for terminated employees
Preferential rehiring policy
Employee Separations (Chapter 6)
Layoffs
Recruit as needed
Letting laid-off workers fend for themselves
No preferential treatment
Customized appraisals
Developmental appraisals
Multipurpose appraisals
Multiple inputs for appraisals (supervisor, peers,
subordinates)
Performance Appraisal (Chapter 7)
Uniform appraisal procedures
Control-oriented appraisals
Narrow-focus appraisals
Supervisory input only
Individual training
On-the-job training
Job-specific training
“Buy” skills by hiring experienced workers at
a higher wage
Training and Development (Chapters 8 and 9)
Team-based training
External training
Generic training emphasizing flexibility
“Make” skills by providing training to less
experienced workers hired at a lower wage
Fixed pay
Job-based pay
Seniority-based pay
Centralized pay decisions
Compensation (Chapters 10, 11, and 12)
Variable pay
Individual-based pay
Performance-based pay
Decentralized pay decisions
Top-down communication
Union suppression
Adversarial approach
Employee Relations (Chapter 13) and Labor Relations (Chapter 15)
Bottom-up communication and feedback
Union acceptance
Enlightened management
Emphasis on discipline to reduce mistakes
Emphasis on employer protection
Informal ethical standards
Employee Rights (Chapter 14)
Emphasis on preventive action to reduce mistakes
Emphasis on employee protection
Explicit ethical codes and enforcement procedures
International Management (Chapter 17)
Create global company culture Adapt to local culture
Rely on expatriates Rely on country nationals
Repatriation agreement No formal repatriation agreement
Universal company policies Country-specific company policies
ISBN
1-256-39369-X
FIGURE 1.2
Strategic HR Choices
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
26 PART I • INTRODUCTION
26 PART I • INTRODUCTION
ees
need to prepare themselves
for job and career changes. Does
an employer have an ethical duty
to help employees prepare for
the change that is almost certain
to come?
STAFFING Staffing encompasses the HR activities designed to secure the right employees at
the right place at the right time ( Chapter 5 ). Organizations face several strategic HR choices in
recruiting, selecting, and socializing employees—all part of the staffing process. These include:
¦
Promoting from within (internal recruitment) versus hiring from the outside (external
recruitment)
¦
Empowering immediate supervisors to make hiring decisions versus centralizing these
decisions in the HR department
¦
Emphasizing a good fit between the applicant and the firm versus hiring the most knowledgeable
individual regardless of interpersonal considerations
¦
Hiring new workers informally or choosing a more formal and systematic approach to hiring
EMPLOYEE SEPARATIONS Employee separations occur when employees leave the firm, either
voluntarily or involuntarily ( Chapter 6 ). Some strategic HR choices available to the firm for
handling employee separations are:
¦
Use of voluntary inducements (such as early retirement packages) to downsize a workforce
versus use of layoffs
¦
Imposing a hiring freeze to avoid laying off current employees versus recruiting employees
as needed, even if doing so means laying off current employees
¦
Providing continuing support to terminated employees (perhaps by offering them assistance
in securing another job) versus leaving laid-off employees to fend for themselves
¦
Making a commitment to rehire terminated employees if conditions improve versus avoiding
any type of preferential hiring treatment for ex-employees
PERFORMANCE APPRAISAL Managers assess how well employees are carrying out their assigned
duties by conducting performance appraisals ( Chapter 7 ). Some strategic HR choices concerning
employee appraisals are:
¦
Developing an appraisal system that is customized to the needs of various employee
groups (for example, by designing a different appraisal form for each job family) versus
using a standardized appraisal system throughout the organization
¦
Using the appraisal data as a developmental tool to help employees improve their performance
versus using appraisals as a control mechanism to weed out low producers
¦
Designing the appraisal system with multiple objectives in mind (such as training,
promotion, and selection decisions) versus designing it for a narrow purpose (such as
pay decisions only)
¦
Developing an appraisal system that encourages the active participation of multiple
employee groups (for example, supervisor, peers, and subordinates) versus developing
one that asks solely for the input of each employee’s supervisor
TRAINING AND CAREER DEVELOPMENT Training and career development activities are
designed to help an organization meet its skill requirements and to help its employees realize
their maximum potential ( Chapters 8 and 9 ). Some of the strategic HR choices pertaining to
these activities are:
¦
Choosing whether to provide training to individuals or to teams of employees who may
come from diverse areas of the firm
¦
Deciding whether to teach required skills on the job or rely on external sources for training
¦
Choosing whether to emphasize job-specific training or generic training
¦
Deciding whether to hire at a high wage people from outside the firm who already have the
required talents (“buy skills”) or to invest resources in training the firm’s own lower-wage
employees in the necessary skills (“make skills”)
COMPENSATION Compensation is the payment that employees receive in exchange for their
labor. U.S. organizations vary widely in how they choose to compensate their employees
( Chapters 10, 11, and 12). Some of the strategic HR choices related to pay are:
¦
Providing employees with a fixed salary and benefits package that changes little from year
to year (and, therefore, involves minimal risk) versus paying employees a variable amount
subject to change
ISBN
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Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 27
¦
Paying employees on the basis of the job they hold versus paying them for their individual
contributions to the firm
¦
Rewarding employees for the time they have spent with the firm versus rewarding them for
performance
¦
Centralizing pay decisions in a single location (such as the HR department) versus empowering
the supervisor or work team to make pay decisions
EMPLOYEE AND LABOR RELATIONS Employee and labor relations ( Chapters 13 and 15) refer to
the interaction between workers (either as individuals or as represented by a union) and management.
Some of the strategic HR choices facing the firm in these areas are:
¦
Relying on “top-down” communication channels from managers to subordinates versus
encouraging “bottom-up” feedback from employees to managers
¦
Actively trying to avoid or suppress union-organizing activity versus accepting unions as
representatives of employees’ interests
¦
Adopting an adversarial approach to dealing with employees versus responding to employees’
needs so that the incentive for unionization is removed (enlightened management)
EMPLOYEE RIGHTS Employee rights concern the relationship between the organization and individual
employees ( Chapter 14 ). Some of the strategic choices that the firm needs to make in this
area are:
¦
Emphasizing discipline as the mechanism for controlling employee behavior versus proactively
encouraging appropriate behavior in the first place
¦
Developing policies that emphasize protecting the employer’s interests versus policies that
emphasize protecting the employees’ interests
¦
Relying on informal ethical standards versus developing explicit standards and procedures
to enforce those standards
INTERNATIONAL MANAGEMENT Firms that operate outside domestic boundaries face a set of
strategic HR options regarding how to manage human resources on a global basis ( Chapter 17 ).
Some of the key strategic HR choices involved in international management are:
¦
Creating a common company culture to reduce intercountry cultural differences versus
allowing foreign subsidiaries to adapt to the local culture
¦
Sending expatriates (domestic employees) abroad to manage foreign subsidiaries versus
hiring local people to manage them
¦
Establishing a repatriation agreement with each employee going abroad (carefully stipulating
what the expatriate can expect upon return in terms of career advancement, compensation,
and the like) versus avoiding any type of commitment to expatriates
¦
Establishing company policies that must be followed in all subsidiaries versus decentralizing
policy formulation so that each local office can develop its own policies
Selecting HR Strategies to Increase Firm Performance
No HR strategy is “good” or “bad” in and of itself. Rather, an HR strategy’s effect on firm per
formance is always dependent on how well it fits with other factors. This fact leads to a simple
yet powerful prediction for HR strategies that has been widely supported by research: Fit leads to
better performance, and lack of fit creates inconsistencies that reduce performance.172 Fit refers
to the compatibility between HR strategies and other important aspects of the organization.
Figure 1.3 depicts the key factors that firms should consider in determining which HR strat
egies will have a positive impact on firm performance: organizational strategies, environment,
organizational characteristics, and organizational capabilities. As the figure shows, the relative
contribution of an HR strategy to firm performance increases:
¦
The better the match between the HR strategy and the firm’s overall organizational
strategies
¦
The more the HR strategy is attuned to the environment in which the firm is operating
¦
The more closely the HR strategy is molded to unique organizational features
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
28 PART I • INTRODUCTION
28 PART I • INTRODUCTION
Effective HR Strategy
Formulation and
Implementation
Organizational
Strategies
Consistency
HR StrategiesConsistency
Consistency
Consistency
Environment
Organizational
Characteristics
Organizational
Capabilities
Improved Firm
Performance
Fit Fit
Fit Fit
corporate strategy
The mix of businesses a corporation
decides to hold and the flow of
resources among those businesses.
business unit strategy
The formulation and implementation
of strategies by a firm that is
relatively autonomous, even if it is
part of a larger corporation.
A QUESTION OF ETHICS
The dark side of strategic plan
ning is that workers are sometimes
thought of as numbers on a page
or dollars in a budget rather than
as flesh-and-blood human beings.
When divisions are spun off or
merged, individual employees
are dramatically affected. What
responsibility does the employer
have toward its employees in
situations like these?
¦ The better the HR strategy enables the firm to capitalize on its distinctive competencies
¦ The more the HR strategies are mutually consistent or reinforce one another
Fit with Organizational Strategies
A corporation may have multiple businesses that are very similar to or completely different
from one another. Corporate strategy refers to the mix of businesses a corporation decides to
hold and the flow of resources among those businesses. The main strategic business decisions at
the corporate level concern acquisition, divestment, diversification, and growth. Business unit
strategies refer to the formulation and implementation of strategies by firms that are relatively
autonomous, even if they are part of a larger corporation. For instance, until fairly recently,
AT&T as a corporate entity owned hundreds of largely independent firms, including perfume
makers and Hostess Twinkies, each with its own business strategy.173 Similarly, diversified
giant DuPont combines businesses such as drugs, agriculture, and chemicals under one roof.174
In firms that produce a single product or highly related products or services, the business and
corporate strategies are identical. For companies that have distinct corporate and business unit
strategies, it is important to examine each in terms of its fit with HR strategies.
CORPORATE STRATEGIES There are two major types of corporate strategies and matching HR
strategies. Corporations adopting an evolutionary business strategy engage in aggressive acquisitions
of new businesses, even if these are totally unrelated to one another.175
In evolutionary firms, the management of change is crucial to survival. Entrepreneurship is
encouraged and control is deemphasized because each unit is relatively autonomous. HR strategies
that foster flexibility, quick response, entrepreneurship, risk sharing, and decentralization
are particularly appropriate. Because the evolutionary corporation is not committed to a particular
business or industry, it may hire workers from the external market as needed and lay them off
to reduce costs if necessary, with no promise of rehiring them. These HR strategies are appropriate
because they “fit” with the organizational reality that change is the only constant.
At the other end of the spectrum, corporations adopting a steady-state strategy are very
choosy about how they grow. They avoid acquiring firms outside their industry or even companies
within the industry that are very different from them. Top managers exercise a great deal of
direct control over the company, and internal development of new products and technologies and
interunit coordination are very important.176 This is the case at Rubbermaid, a company known
for producing such mundane products as trash cans and dustpans. Yet Rubbermaid’s record for
innovation is anything but mundane. The company brings out new products at the rate of one a
day.177 The HR strategies most appropriate to steady-state firms emphasize efficiency, detailed
work planning, internal grooming of employees for promotion and long-term career development,
centralization, and a paternalistic attitude.
PORTER’S BUSINESS UNIT STRATEGIES Two well-known business unit strategies were formulated
by Porter178 and Miles and Snow179 to analyze which HR strategies represent the best fit
with a firm’s business strategy.
Porter has identified three types of business unit strategies that help a firm cope with competitive
forces and outperform other firms in the industry. For each of these strategies, a certain
set of HR strategies would fit best.180
ISBN
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Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
ISBN
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CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 29
The overall cost leadership strategy is aimed at gaining a competitive advantage through
lower costs. Cost leadership requires aggressive construction of efficient plant facilities (which
requires sustained capital investment), intense supervision of labor, vigorous pursuit of cost
reductions, and tight control of distribution costs and overhead. Firms that have successfully
pursued a low-cost leadership strategy include Briggs & Stratton, Emerson Electric, Texas
Instruments, Black & Decker, and DuPont.181
Low-cost firms tend to emphasize structured tasks and responsibilities, products designed
for easy manufacture, and the need to predict costs with minimal margin of error. The HR strate
gies that fit a low-cost orientation emphasize efficient, low-cost production; reinforce adherence
to rational, highly structured procedures to minimize uncertainty; and discourage creativity and
innovation (which may lead to costly experimentation and mistakes).
A firm with a differentiation business strategy attempts to achieve a competitive advantage
by creating a product or service that is perceived as being unique. Some common characteristics of
such firms are strong marketing abilities, an emphasis on product engineering and basic research,
a corporate reputation for quality products, and amenities that are attractive to highly skilled
labor. Approaches to differentiating can take many forms, among them are design or brand image
(Fieldcrest in top-of-the-line towels and linens, Mercedes-Benz in automobiles), technology (Hyster
in lift trucks, Coleman in camping equipment), features (Jenn-Air in electric ranges), customer
service (IBM in computers), and dealer networks (Caterpillar Tractor in construction equipment).
Differentiation provides a competitive advantage because of the brand loyalty it fosters.
This enables the differentiator to enjoy higher profit margins, which, in turn, allow it to invest in
extensive research, experiment with new ideas and product designs, cater to the needs of differ
ent customers, and support creative initiatives by managers and employees.
HR strategies that fit a differentiation strategy emphasize innovation, flexibility, renewal of
the workforce by attracting new talent from other firms, opportunities for mavericks, and rein
forcement (rather than discouragement) of creative flair.
The focus strategy relies on both a low-cost position and differentiation, with the objective of
serving a narrow target market better than other firms. The firm seeks to achieve differentiation
either from better meeting the needs of the particular target, or from lowering costs in serving this
target, or both. 182 Firms that have used this strategy successfully include Illinois Tool Works (in
the specialty market for fasteners), Gymboree (a national franchise providing creative activities
and accessories for children under the age of 5), Fort Howard Paper (manufacturer of specialized
industrial grade papers), and Porter Paint (producer of paints for professional housepainters).
The HR strategies likely to fit the focus strategy best would be somewhere in the middle of those
described for low-cost producers and differentiators. At Illinois Tool Works (ITW), for instance, the
chairman stresses working hand-in-hand with customers both to find out what they want and to learn
how ITW can help them lower their operating costs. HR strategies reflect this focus by boosting
efficiency to hold costs down. ITW’s business is decentralized into 200 fairly small operating units,
headed by managers whose pay is largely tied to sales and profits at their individual operations. The
company’s workers are nonunion, which helps to hold costs down. To keep ITW’s products geared
to customer needs, management puts heavy emphasis on R&D. ITW’s R&D spending of almost $40
million a year keeps creativity high; ITW holds over 4,000 active patents.183
MILES AND SNOW’S BUSINESS STRATEGIES Miles and Snow created another well-known classi
fication of business unit strategies.184 They characterize successful businesses as adopting either
a defender or a prospector strategy.
Defenders are conservative business units that prefer to maintain a secure position in rel
atively stable product or service areas instead of looking to expand into uncharted territory.
Defenders tend to be highly formalized, emphasize cost control, and operate in a stable environ
ment. Many defenders develop an elaborate internal system for promoting, transferring, and
rewarding workers that is relatively isolated from the uncertainties of the external labor market.
In exchange for a long-term commitment to the firm, employees are rewarded with job security
and the expectation of upward mobility through the ranks.
The HR strategies that best fit defenders’ needs, categorized according to the six major
strategic HR choices we saw in Figure 1.2 earlier, are summarized in Figure 1.4 . These strate
gies include work flows emphasizing managerial control and reliability, staffing and employee
separation policies designed to foster long-term employee attachment to the firm, performance
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
30 PART I • INTRODUCTION
30 PART I • INTRODUCTION
Prospector Strategy
Work Flows • Efficient production • Innovation
• Control emphasis • Flexibility
• Explicit job descriptions • Broad job classes
• Detailed work planning • Loose work planning
Staffing • Internal recruitment • External recruitment
• HR department makes selection decision • Coworkers help make selection
• Emphasis on technical qualifications decision
and skills • Emphasis on fit of applicant
• Formal hiring and socialization process with culture
• Informal hiring and socialization
process of new employees
Employee Separations • Voluntary inducements to leave • Layoffs
• Hiring freeze • Recruit as needed
• Continuing concern for terminated • Individual on his or her own
employee • No preferential treatment for
• Preferential rehiring policy laid-off workers
Performance Appraisal • Uniform appraisal procedures • Customized appraisals
• Used as control device • Used as developmental tool
• Narrow focus • Multipurpose appraisals
• High dependence on superior • Multiple inputs for appraisals
Training • Individual training • Team-based or cross-functional
• On-the-job training training
• Job-specific training • External training
• “Make” skills • Generic training emphasizing
flexibility
• “Buy” skills
Compensation • Fixed pay • Variable pay
• Job-based pay • Individual-based pay
• Seniority-based pay • Performance-based pay
• Centralized pay decisions • Decentralized pay decisions
FIGURE 1.4
Selected HR Strategies That Fit Miles and Snow’s Two Major Types of Business Strategies
Source: Gómez-Mejía, L. R. (2009). Compensation strategies and Miles and Snow’s business strategy taxonomy. Unpublished report. Management Department,
Arizona State University. Reprinted with permission.
appraisals focused on managerial control and hierarchy, structured training programs, and compensation
policies that emphasize job security.
Unlike defenders, whose success comes primarily from efficiently serving a stable market,
prospectors emphasize growth and innovation, development of new products, and an eagerness to
be the first in new-product or market areas, even if some of these efforts fail.185 The prospector’s
strategy is associated with flexible and decentralized organizational structures, complex products
(such as computers and pharmaceuticals), and unstable environments that change rapidly.
The HR strategies that match the strategic orientation of prospectors, also summarized in
Figure 1.4 , include work flows that foster creativity and adaptability; staffing and employee
separation policies that focus on the external labor market; customized, participative employee
appraisals used for multiple purposes (including employee development); training strategies
targeting broad skills; and a decentralized compensation system that rewards risk taking and
performance. Exhibit 1.1 , “Lincoln Electric and Hewlett-Packard: Defender and Prospector,”
on page 31, discusses how these two firms have successfully used HR strategies to support their
opposite business strategies.
ISBN
1-256-39369-
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 31
tietty ilman koon tampereella alati julkisella hehan heraa toisenlainenteille luoksesi kuuntele uskonto sataa fariseus tuottaisi sorkat kiekkoodotettavissa reilusti tshetsheenit muutenkarsii maahanne harvoin mahdollisuutta pahempia mielessa kiinniharhaa syntyneen sukusi joitakin kohottavat jumalattoman jopa ansaanmiehia sosialisteja joukkueiden omaan teosta ase hanella seudultavahiin arvostaa olenkin rikkaus aineet viela pahaa lauloivat vuohetpellolla tuleen puolueet harkia perivat raskaan sinulle valtaatuoksuvaksi hajotti paina juhlien kauniit heprealaisten toimiva sitasinetin koyhia selvasti opetuksia joissain selvasti tuomareita nainkinvoisin syostaan sulkea polttavat kuninkaita klo uhraan rukouksenitasmallisesti minkalaista palvelija kelvannut pyhittaa apostolimukaansa meilla sosialisteja velkaa mielipiteen aio peittavat jumalannesivulta kiella lahetan myohemmin kauhua rautalankaa vuodessatodellisuus kesta rikki aarista saavat edelta neuvosto pihalle tulisi kuulivero uskomaan ylistetty kiitos pesansa presidenttina sanota tyhmiauhrasi tappamaan riviin niilin tottakai naista osoittamaan jarkevaaennustaa eurooppaa kumpaakin kayttivat voitiin pisti hyvassaamfetamiinia huono paasiainen meissa minaan armonsa vitsaussotakelpoiset rikoksen parempana jokaisella natsien europe reiluakarppien siirtyivat vartija unta sydamen hakkaa niinkuin liittyvistapyhakkoon kellaan tulva kahdeksantena ykkonen vihollistensaosuuden lkoon karta repivat vihassani jne tehtavana piirissaolemmehan armosta riemuitkaa toisille epailematta jollet aaronilleystava taistelee opetuslapsille tapahtunut meista kaikkialle vietykiittakaa omin saattavat maaseutu tilata muualle todistamaan kellaanturvassa vahvistuu tutkia tapahtuu toisensa kuolemalla pelkaattekoskettaa lakejaan paljaaksi riemuiten sotilas ruuan asetin asukkaillesanoma estaa edessaan riipu sakkikankaaseen kunniaan papin pianelaimia vallitsee kotka tayden luottaa aloitti ikkunat pitaisin sivuapresidenttina aasinsa tyypin tervehtikaa tehda aanensa kunnian hallintahkia pisteita koyhia kate seuraus maakuntaan matkallaanvaarintekijat tuho ansiosta kofeiinin aineen rakkaat kaytannonkahdestatoista sotilasta kohden tarkeana kulkeneet suunnitelmantoimintaa olemmehan valheita tervehdys ette porukan kirjan kiittakaatukea karja tulkoot siunaa jolta minusta suurin vakisinkin varasasukkaat tuomiolle enta nuorten mitaan kuunnella kasiisi ulkomaanoma vankileireille kristittyjen kelvannut joutuu heraa tuliuhri luin isanmainitsi hapaisee ikiajoiksi rakastunut tarkoitus elaman hopeallakahdella opastaa hevosen ankka vapisevat ylistysta karsimysta vaalitaineen voida sotilas asetettu kaantykaa yha jalkeen portille kutsuinistumaan julki tunkeutuivat instituutio aika maaritella toisellehappamatonta ohjelma viisisataa odotus kysymyksen voimallaanlastensa pyhakkoon surmansa loistava heikki vastaavia joudummeyhteydessa vaiko paatella pienesta suuteli osaisi rikota sanomanarnonin tapahtumaan rinta suurelle niinpa pakenevat lyodaanpoikkeuksellisen paskat teet lahtee uhrilahjoja ylistakaa nae siinainfaktaa lauloivat vaihtoehdot niista todistan taivaissa kohtaa kristustavalheellisesti iljettavia suosii merkityksessa tiedattehan aasianpropagandaa paavalin osoittaneet oikeat palavat hopeaa tuliuhriksipelastuksen tavalliset painaa luotasi klo ihan oma suomea kyseisennousisi vaikutti polttouhriksi systeemin kehitysta tuokaan vastuunihmeellista muurin taitava moni kiroa silmieni oltava oikeesti kaskystaniinko asein mainitut yhteiset yhteys sina tallella tappoi uskovillesaako veroa vihollinen hanki jokin ulottuu kansaansa useidentulevasta taida pohjalta poikien rypaleita lukee kansoihin kansalleenarvo oletko ensimmaisella kestanyt kuoppaan huuto ruoan maaritellaliittyvaa seuraukset selvia kotiisi opikseen pitkin kuullessaandokumentin ruokauhriksi monella varmaankin tuomiota kunniansuojaan sotureita luotat hopealla sairaat pedon tappara joissa mailanveljiensa hyvat vielapa useiden vihollisia voitu elaimet kulta ihmisenaheimo tuomionsa muukalaisten kirjakaaro kiva vievat riistaa liittaahajusteita johtopaatos muoto valheen tappamaan pellon juoksevatparemman hyvakseen viisauden perusturvan ominaisuuksia vangittekstin vankilan joas kuuliaisia varsin poroksi maita tottelee yota syopitaa sukupuuttoon vastaan egyptilaisten rikota omin sydamemmenakyviin juhla yksilot opetuslastensa horjumatta chilessa keskustellavaikutuksista suomalaisen kalliosta vartioimaan johtua petollisiaseurakuntaa etsimaan kokoontuivat paallikko mitakin tottelevatunohtui lahetin pyhalle idea hallitusvuotenaan sinako tata netissakiersivat valiverhon kielensa temppelisi oikealle puute heikki tilastotkuluu tulkintoja kaupunkeihin sattui parane kulta olettaa olemmeneuvoston lyseo sonnin alettiin kaava asetin ramaan itsessaanosaksenne pelastusta villasta lukea sosialisteja suunnilleenmuutaman kaantykaa paata demokratiaa uskollisuutensa hyvaksyykukkuloille sosialismiin palautuu pohjin kulta sinusta selain olevienlinkin pilkkaavat liene samanlainen rikokseen loytanyt valtiota teissaopetettu jruohoma painvastoin uutisia kutakin rakkautesi sorra kallioontahtoivat tuotiin jokin tulvii sillon tulevaisuus asuvien tayteenmaininnut osata kerta kristitty rukoukseen vapisivat kannattaisi loivaikutus tarve kansoihin kaksikymmentaviisituhatta lahestulkoon
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 31
tietty ilman koon tampereella alati julkisella hehan heraa toisenlainenteille luoksesi kuuntele uskonto sataa fariseus tuottaisi sorkat kiekkoodotettavissa reilusti tshetsheenit muutenkarsii maahanne harvoin mahdollisuutta pahempia mielessa kiinniharhaa syntyneen sukusi joitakin kohottavat jumalattoman jopa ansaanmiehia sosialisteja joukkueiden omaan teosta ase hanella seudultavahiin arvostaa olenkin rikkaus aineet viela pahaa lauloivat vuohetpellolla tuleen puolueet harkia perivat raskaan sinulle valtaatuoksuvaksi hajotti paina juhlien kauniit heprealaisten toimiva sitasinetin koyhia selvasti opetuksia joissain selvasti tuomareita nainkinvoisin syostaan sulkea polttavat kuninkaita klo uhraan rukouksenitasmallisesti minkalaista palvelija kelvannut pyhittaa apostolimukaansa meilla sosialisteja velkaa mielipiteen aio peittavat jumalannesivulta kiella lahetan myohemmin kauhua rautalankaa vuodessatodellisuus kesta rikki aarista saavat edelta neuvosto pihalle tulisi kuulivero uskomaan ylistetty kiitos pesansa presidenttina sanota tyhmiauhrasi tappamaan riviin niilin tottakai naista osoittamaan jarkevaaennustaa eurooppaa kumpaakin kayttivat voitiin pisti hyvassaamfetamiinia huono paasiainen meissa minaan armonsa vitsaussotakelpoiset rikoksen parempana jokaisella natsien europe reiluakarppien siirtyivat vartija unta sydamen hakkaa niinkuin liittyvistapyhakkoon kellaan tulva kahdeksantena ykkonen vihollistensaosuuden lkoon karta repivat vihassani jne tehtavana piirissaolemmehan armosta riemuitkaa toisille epailematta jollet aaronilleystava taistelee opetuslapsille tapahtunut meista kaikkialle vietykiittakaa omin saattavat maaseutu tilata muualle todistamaan kellaanturvassa vahvistuu tutkia tapahtuu toisensa kuolemalla pelkaattekoskettaa lakejaan paljaaksi riemuiten sotilas ruuan asetin asukkaillesanoma estaa edessaan riipu sakkikankaaseen kunniaan papin pianelaimia vallitsee kotka tayden luottaa aloitti ikkunat pitaisin sivuapresidenttina aasinsa tyypin tervehtikaa tehda aanensa kunnian hallintahkia pisteita koyhia kate seuraus maakuntaan matkallaanvaarintekijat tuho ansiosta kofeiinin aineen rakkaat kaytannonkahdestatoista sotilasta kohden tarkeana kulkeneet suunnitelmantoimintaa olemmehan valheita tervehdys ette porukan kirjan kiittakaatukea karja tulkoot siunaa jolta minusta suurin vakisinkin varasasukkaat tuomiolle enta nuorten mitaan kuunnella kasiisi ulkomaanoma vankileireille kristittyjen kelvannut joutuu heraa tuliuhri luin isanmainitsi hapaisee ikiajoiksi rakastunut tarkoitus elaman hopeallakahdella opastaa hevosen ankka vapisevat ylistysta karsimysta vaalitaineen voida sotilas asetettu kaantykaa yha jalkeen portille kutsuinistumaan julki tunkeutuivat instituutio aika maaritella toisellehappamatonta ohjelma viisisataa odotus kysymyksen voimallaanlastensa pyhakkoon surmansa loistava heikki vastaavia joudummeyhteydessa vaiko paatella pienesta suuteli osaisi rikota sanomanarnonin tapahtumaan rinta suurelle niinpa pakenevat lyodaanpoikkeuksellisen paskat teet lahtee uhrilahjoja ylistakaa nae siinainfaktaa lauloivat vaihtoehdot niista todistan taivaissa kohtaa kristustavalheellisesti iljettavia suosii merkityksessa tiedattehan aasianpropagandaa paavalin osoittaneet oikeat palavat hopeaa tuliuhriksipelastuksen tavalliset painaa luotasi klo ihan oma suomea kyseisennousisi vaikutti polttouhriksi systeemin kehitysta tuokaan vastuunihmeellista muurin taitava moni kiroa silmieni oltava oikeesti kaskystaniinko asein mainitut yhteiset yhteys sina tallella tappoi uskovillesaako veroa vihollinen hanki jokin ulottuu kansaansa useidentulevasta taida pohjalta poikien rypaleita lukee kansoihin kansalleenarvo oletko ensimmaisella kestanyt kuoppaan huuto ruoan maaritellaliittyvaa seuraukset selvia kotiisi opikseen pitkin kuullessaandokumentin ruokauhriksi monella varmaankin tuomiota kunniansuojaan sotureita luotat hopealla sairaat pedon tappara joissa mailanveljiensa hyvat vielapa useiden vihollisia voitu elaimet kulta ihmisenaheimo tuomionsa muukalaisten kirjakaaro kiva vievat riistaa liittaahajusteita johtopaatos muoto valheen tappamaan pellon juoksevatparemman hyvakseen viisauden perusturvan ominaisuuksia vangittekstin vankilan joas kuuliaisia varsin poroksi maita tottelee yota syopitaa sukupuuttoon vastaan egyptilaisten rikota omin sydamemmenakyviin juhla yksilot opetuslastensa horjumatta chilessa keskustellavaikutuksista suomalaisen kalliosta vartioimaan johtua petollisiaseurakuntaa etsimaan kokoontuivat paallikko mitakin tottelevatunohtui lahetin pyhalle idea hallitusvuotenaan sinako tata netissakiersivat valiverhon kielensa temppelisi oikealle puute heikki tilastotkuluu tulkintoja kaupunkeihin sattui parane kulta olettaa olemmeneuvoston lyseo sonnin alettiin kaava asetin ramaan itsessaanosaksenne pelastusta villasta lukea sosialisteja suunnilleenmuutaman kaantykaa paata demokratiaa uskollisuutensa hyvaksyykukkuloille sosialismiin palautuu pohjin kulta sinusta selain olevienlinkin pilkkaavat liene samanlainen rikokseen loytanyt valtiota teissaopetettu jruohoma painvastoin uutisia kutakin rakkautesi sorra kallioontahtoivat tuotiin jokin tulvii sillon tulevaisuus asuvien tayteenmaininnut osata kerta kristitty rukoukseen vapisivat kannattaisi loivaikutus tarve kansoihin kaksikymmentaviisituhatta lahestulkoon
EXHIBIT 1.1 LINCOLN ELECTRIC AND HEWLETT-PACKARD: DEFENDER AND PROSPECTOR
To get a better idea of what it means for a company to be a defender or a prospector, let us look at
the activities of two companies: Ohio-based Lincoln Electric, a manufacturer of electrical products;
and Hewlett-Packard, the Palo Alto, California, electronics manufacturer that put Silicon Valley on the
high-tech map.
Lincoln Electric
Lincoln Electric is a classic defender. It has carved out a niche in the electrical products industry
(the manufacture of electric arc-welding generators, welding equipment, and supplies) and has
“defended” it for over 100 years through continuous efforts to improve production processes and
product quality, cut costs, lower prices, and provide outstanding customer service. Lincoln is best
known for its incentive system, which rewards high-quantity, high-quality output with wages and
bonuses that average over twice the national average for comparable work classifications. Lincoln’s
HR strategies fit with the company’s strategy because Lincoln has created a secure market share with
moderate, steady growth. It relies heavily on internally developed human resources. Employees are
carefully selected, placed, and trained, and they are expected to be with the company for much, if not
all, of their careers.
The appropriate role for the HR department at Lincoln is clear. Selection, placement, appraisal, and
long-term training assistance are key services. In addition, the HR department must constantly maintain
the fit between job design and the incentive system. Lincoln is a tightly integrated company that
requires predictable, planned HR inputs and regular maintenance.
As of 2012, Lincoln Electric still emphasizes cost reductions, high reliability, and a focus on stateof-
the-art welding technologies (for instance, through increased use of robotics).
Hewlett-Packard
Hewlett-Packard (HP) began with the notion that high returns were possible from moving products
as rapidly as possible from basic design to the market. It is a company well suited to the rapid expansion
of a growing industry—a true prospector—with small, changing product divisions as its basic
organizational building blocks. (The company has over 60,000 employees in more than 60 divisions or
units.) A new-product idea or offshoot is evolved, a self-contained division is created, and a market is
pursued as long as HP has a distinctive design or technological advantage. When products reach the
stage where successful competition turns primarily on cost, HP may move out of the arena and turn
its attention to a new design or an entirely new product.
HR units at both the division and the corporate level have the constant tasks of starting new
groups and finding and deploying managerial and technical resources. In this setting, HR departments
perform an essentially entrepreneurial role, helping to identify and quickly develop (through rapid
movement and alternative assignments) crucial human resources. Key human resources are brought in
from the outside and invested in myriad units and divisions, as well as developed internally. Thus, the
overall HR strategy at HP can be characterized as acquiring human resources.
As of 2012, HP continues unabated with this HR strategy. In fact, its company Web page
“jobs at HP” (jobs.hp.com) enables candidates to search for job opportunities at HP facilities
in 178 countries.
Source: Based on Miles, R. E., and Snow, C. C. (1984). Designing strategic human resources systems. Organizational
Dynamics 13(1), 43–46. © 1984 American Management Association, New York. All rights reserved. Updated
information provided by the authors. For related information see Lincoln Electric, working/careers at Lincoln (2012).
http://lincolnelectric.com; Hewlett-Packard Corporation News (2011), New York Times, http://topics.nytimes.
com; Hewlett-Packard Snapshot (2011), http://money.cnn.com; Hewlett-Packard Development Company (2011),
www.hp.com.
ISBN
1-256-39369-X
Fit with the Environment
In addition to reinforcing overall organizational strategies, HR strategies should help the organization
better exploit environmental opportunities or cope with the unique environmental forces
that affect it. We can examine the environment in terms of four major dimensions: (1) degree
of uncertainty (how much accurate information is available to make appropriate business decisions),
(2) volatility (how often the environment changes), (3) magnitude of change (how drastic
the changes are), and (4) complexity (how many different elements in the environment affect the
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
32 PART I • INTRODUCTION
32 PART I • INTRODUCTION
firm, either individually or together). For example, much of the computer and high-tech industry
is very high on all four of these dimensions:
¦
Degree of uncertainty Compaq thought consumers would continue to pay a premium price
for its high-performance computers. The company was proved wrong in the 1990s as low-
cost competitors such as Dell, Packard Bell, and AST quickly cut into Compaq’s market.
¦
Volatility IBM paid dearly when demand for its mainframe computers declined drastically
in the late 1980s and it was caught unprepared.
¦
Magnitude of change The advent of each successive new generation of computer microprocessor
chips (for example, Intel’s 386, 486, Pentium) has almost immediately rendered
all previously sold machines obsolete. Polaroid was forced to declare bankruptcy as quick
adoption of digital cameras turned its main product (instant photography) obsolete almost
overnight.
¦
Complexity The number and variety of competitors in the computer industry, both
domestically and overseas, have grown dramatically in recent years. The life of a product
seldom extends more than three years now, as new innovations drive previous equipment
and software out of the market.
As Figure 1.5 shows, firms that are high on these four dimensions are more likely to benefit
from HR strategies that promote flexibility, adaptivity, quick response, transferability of
skills, the ability to secure external talent as needed, and risk sharing with employees through
variable pay.
Conversely, firms facing environments that are low on uncertainty, volatility, magnitude of
change, and complexity benefit from HR strategies that allow for an orderly, rational, and routine
approach to dealing with a relatively predictable and stable environment. The “old” AT&T
(before divestment), much of the airline and trucking industry before deregulation, utilities, and
government bureaucracies fall at the low end of the scale on these four dimensions. Figure 1.5
shows that the HR strategies that fit firms operating under these conditions tend to be rather
mechanistic: detailed work planning, job-specific training, fixed pay, explicit job descriptions,
centralized pay decisions, and the like.
Environmental Dimension Low High
Degree of Uncertainty • Detailed work planning
• Job-specific training
• Fixed pay
• High dependence on superior
• Loose work planning
• Generic training
• Variable pay
• Multiple inputs for appraisals
Volatility • Control emphasis
• Efficient production
• Job-specific training
• Fixed pay
• Flexibility
• Innovation
• Generic training
• Variable pay
Magnitude of Change • Explicit job descriptions
• Formal hiring and socialization
of new employees
• “Make” skills
• Uniform appraisal procedures
• Broad job classes
• Informal hiring and
socialization of new employees
• “Buy” skills
• Customized appraisals
Complexity • Control emphasis
• Internal recruitment
• Centralized pay decisions
• High dependence on superior
• Flexibility
• External recruitment
• Decentralized pay decisions
• Multiple inputs for appraisals
FIGURE 1.5
Selected HR Strategies for Firms Low and High on Different Environmental Characteristics
Sources: Based on Gomez-Mejia, L. R., and Balkin, D. B. (2012). Management. Englewood Cliffs, NJ: Prentice-Hall; Gomez-Mejia, L. R., Berrone, P., and
Franco-Santos, M. (2010). Compensation and organizational Performance. New York, NY: M.E. Sharpe.
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
ISBN
1-256-39369-
ISBN
1-256-39369-X
ISBN
1-256-39369-X
Fit with Organizational Characteristics
To be effective, HR strategies must be tailored to the organization’s personality. The features of
an organization’s personality can be broken down into five major categories.
THE PRODUCTION PROCESS FOR CONVERTING INPUTS INTO OUTPUT Firms with a relatively routine
production process (such as large-volume steel mills, lumber mills, and automobile plants)
tend to benefit from HR strategies that emphasize control, such as explicit job descriptions and
job-specific training. The opposite is true for firms with nonroutine production processes (such
as advertising firms, custom printers, and biotechnology companies). These firms benefit from
flexible HR strategies that support organizational adaptability, quick response to change, and
creative decision making. These flexible strategies may include broad job classes, loose work
planning, and generic training.
THE FIRM’S MARKET POSTURE Firms that experience a high rate of sales growth and engage in
product innovation destined for a wide market segment tend to benefit from HR strategies that
support growth and entrepreneurial activities. These HR strategies include external recruitment
(“buying” skills), decentralized pay decisions, and customized appraisals. The opposite is true
for firms with low rates of growth and limited product innovation destined for a narrow market
segment. These firms tend to benefit more from HR strategies that emphasize efficiency, control,
and firm-specific knowledge. Such strategies include internal recruitment (“making” skills), on-
the-job training, and high dependence on superiors.
THE FIRM’S OVERALL MANAGERIAL PHILOSOPHY Companies whose top executives are averse
to risk, operate with an autocratic leadership style, establish a strong internal pecking order,
and are inwardly rather than outwardly focused may find that certain HR practices match this
outlook best. The HR strategies most often used in these kinds of firms include seniority-based
pay, formal hiring and socializing of new employees, selection decisions made by the HR
department, and use of top-down communication channels. The HR strategies that fit a managerial
philosophy high on risk taking, participation, egalitarianism, and an external, proactive
environmental orientation include variable pay, giving supervisors a major role in hiring decisions,
up-and-down communication channels, and multiple inputs for performance appraisals.
THE FIRM’S ORGANIZATIONAL STRUCTURE Some HR strategies fit very well with highly formalized
organizations that are divided into functional areas (for example, marketing, finance,
production, and so on) and that concentrate decision making at the top. The HR strategies
appropriate for this type of firm include a control emphasis, centralized pay decisions, explicit
job descriptions, and job-based pay. Firms whose organizational structures are less regimented
will benefit from a different set of HR strategies, including informal hiring and socializing of
new employees, decentralized pay decisions, broad job classes, and individual-based pay.
THE FIRM’S ORGANIZATIONAL CULTURE Companies that foster an entrepreneurial climate benefit
from supporting HR strategies such as loose work planning, informal hiring and socializing of new
employees, and variable pay. Firms that discourage entrepreneurship generally prefer a control
emphasis, detailed work planning, formal hiring and socializing of new employees, and fixed pay.
A strong emphasis on moral commitment—the extent to which a firm tries to foster a long-
term emotional attachment between the firm and its employees—is also associated with certain
supporting HR strategies. These include an emphasis on preventive versus remedial disciplinary
action to handle employee mistakes, employee protection, and explicit ethical codes to monitor
and guide behavior. Firms that are low on moral commitment usually rely on an authoritarian
relationship between employee and company. HR strategies consistent with this orientation
include an emphasis on discipline or punishment to reduce employee mistakes, employment at
will (discussed in Chapters 3 and 14), and informal ethical standards.
Fit with Organizational Capabilities
A firm’s organizational capabilities include its distinctive competencies, those characteristics distinctive competencies
(such as technical ability, management systems, and reputation) that give the firm a competitive The characteristics that give a firm a
edge. For instance, Mercedes-Benz automobiles are widely regarded as superior because of the competitive edge.
quality of their design and engineering. Wal-Mart’s phenomenal success has been due, at least
in part, to its ability to track products from supplier to customer better than its competitors can.
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
HR strategies make a greater contribution to firm performance the greater the extent to
which (1) they help the company exploit its specific advantages or strengths while avoiding
weaknesses and (2) they assist the firm in better utilizing its own unique blend of human resource
skills and assets.
The following examples illustrate how one type of HR strategy—compensation strategy—
may be aligned with organizational capabilities.186
¦
Firms known for excellence in customer service tend to pay their sales force only partially
on commission, thereby reducing their sales employees’ potential for abrasive behaviors
and overselling.
¦
Smaller firms can use compensation to their advantage by paying low wages but being
generous in stock offerings to employees. This strategy allows them to use more of their
scarce cash to fuel future growth.
¦
Organizations may take advantage of their unused capacity in their compensation strategies.
For example, most private universities offer free tuition to faculty and their immediate family.
With average tuition at private colleges exceeding $18,000 a year in 2007, this benefit
represents a huge cash savings to faculty members, thereby allowing private universities to
attract and retain good faculty with minimal adverse impact on their cost structure.
Choosing Consistent and Appropriate HR Tactics to Implement HR Strategies
Even the best-laid strategic HR plans may fail when specific HR programs are poorly chosen or
implemented.187 In addition to fitting with each of the four factors just described (organizational
strategy, environment, organizational characteristics, and organizational capabilities), a firm’s
HR strategies are more likely to be effective if they reinforce one another rather than work at
cross-purposes. For instance, many organizations are currently trying to improve their performance
by structuring work in teams. However, these same organizations often continue to use
a traditional performance appraisal system in which each employee is evaluated individually.
The appraisal system needs to be overhauled to make it consistent with the emphasis on team
performance.
Because it is not always possible to know beforehand if an HR program will meet its objectives,
a periodic evaluation of HR programs is necessary. Figure 1.7 lists a series of important
• Offer high employment security as this indicates that the firm is committed to the employee’s welfare
• Develop a good selection program that can screen the best applicants
• Offer wages that are highly competitive as this helps reduce employee turnover and helps in the attraction
of high quality employees
• Recognize employees by providing monetary and non-monetary rewards
• Make employees part-owners of the firm by providing them with stock in the firm
• Communicate effectively with employees so that they are kept informed of major issues confronting the
organization and any major initiatives
• Encourage employee involvement so that there is strong “buy-in” of human resource practices and important
managerial initiatives
• Encourage team work so that employees are more willing to collaborate with each other
• Invest in training programs to improve employee skills
• Provide opportunities for learning at work so that employees are “stretched” in the use of their skills
• Give a higher priority to internal candidates for promotion as this enhances employee motivation by providing
future career opportunities
FIGURE 1.6
Select HR Best Practices
Sources: Pfeffer, J. (1995). Producing sustainable competitive advantage through the effective management of people. Academy of Management Executive,
10, 55–72; Wright, P. M., Gardner, T. M., Moynihan, L. M., and Allen, M. R. (2005). The relationship between HR practices and firm performance: Examining
causal order. Personnel Psychology, 68, 409–446; Chuang, C. H., and Liao, H. (2010). Strategic human resource management in service context. Personnel
Psychology, 63 (1), 153–196; Gomez-Mejia, L. R., and Balkin, D. B. (2011). Management: People, performance and change, Prentice-Hall.
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
ISBN
1-256-39369-
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 35
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 35
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questions that should be raised to examine the appropriateness of HR programs. These questions
should be answered as new programs are being chosen and while they are in effect.
HR Best Practices
Several authors have argued that certain HR practices are associated with sustained high firm
performance.188 Figure 1.6 (on page 34) shows the most common HR best practices. Debate
continues among academics about whether high firm performance leads to given HR practices,
or vice versa (that is, whether introducing particular HR practices causes better firm performance).
189 For instance, can firms that are doing well afford to provide higher wages and
more job security, or do firms that pay more and have a more stable workforce derive a performance
premium by following these practices? It is extraordinarily difficult to prove the casual
relationship one way or the other, yet it seems reasonable that organizations should consider
implementation of those practices associated with the highest-performing firms.
The HR Department and Managers: An Important Partnership
This book takes a managerial approach to human resources and HR strategy. All managers—
regardless of their functional area, their position in the hierarchy, and the size of the firm for
which they work—must deal effectively with HR issues because these issues are at the heart of
being a good manager.
The role of a company’s human resources department is to support, not to supplant, managers’
HR responsibilities. For instance, the HR department may develop a form to help managers measure
the performance of subordinates, but it is the managers who conduct the actual evaluation. Stated
another way, the HR department is primarily responsible for helping the firm meet its business
objectives by designing HR programs, but managers must carry out these programs. This means that
every manager is a human resource manager.
Companies can take certain steps to foster an effective partnership between managers and
the HR department.190 Specifically, companies should:
¦
Analyze the people side of productivity rather than depend solely on technical solutions to
problems. This requires that managers be trained in certain HR skills and that they value
human resources as a key element in organizational performance.
¦
View HR professionals as internal consultants who can provide valuable advice and
support that improve the management of operations.
¦
Instill a shared sense of common fate in the firm rather than a win/lose perspective among
individual departments and units.
¦
Require some managerial experience as part of the training of HR professionals. This
requirement should make HR staff more sensitive to and cognizant of the problems
managers face.
¦
Actively involve top corporate and divisional managers in formulating, implementing,
and reviewing all HR plans and strategies in close collaboration with the HR
department.
¦
Require senior HR executives to participate on an equal basis with other key managers
from the various functional areas (marketing, finance) in charting the enterprise’s strategic
direction.
Companies should also periodically conduct an HR audit to evaluate how effectively they
are using their human resources. The audit, which is typically conducted by the HR department,
deals with a broad set of questions, including:
¦
Is the turnover rate exceptionally low or high?
¦
Are the people quitting good employees who are frustrated in their present job, or are they
marginal performers?
¦
Is the firm receiving a high return on the money it spends on recruitment, training, and
pay-for-performance plans?
¦
Is the firm complying with government regulations?
¦
How well is the company managing employee diversity?
¦
Is the HR department providing the services that line managers need?
¦
Are HRM policies and procedures helping the firm accomplish its long-term goals?
HR audit
A periodic review of the
effectiveness with which a company
uses its human resources. Frequently
includes an evaluation of the HR
department itself.
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
36 PART I • INTRODUCTION
36 PART I • INTRODUCTION
HR programs that look good on paper may turn out to be disasters when implemented because they conflict too
much with company realities. To avoid this kind of unpleasant surprise, it is important to ask the following questions
before implementing a new HR program.
1. Are the HR Programs Effective Tools for Implementing HR Strategies?

Are the proposed HR programs the most appropriate ones for implementing the firm’s HR strategies?

Has an analysis been done of how each of the past, current, or planned HR programs contributes to or
hinders the successful implementation of the firm’s HR strategies?

Can the proposed HR programs be easily changed or modified to meet new strategic considerations without
violating either a “psychological” or a legal contract with employees?
2. Do the HR Programs Meet Resource Constraints?

Does the organization have the capacity to implement the proposed HR programs? In other words, are the
HR programs realistic?

Are the proposed programs going to be introduced at a rate that can be easily absorbed, or will the timing
and extent of changes lead to widespread confusion and strong employee resistance?
3. How Will the HR Programs Be Communicated?

Are the proposed HR programs well understood by those who will implement them (for example, line
supervisors and employees)?

Does top management understand how the proposed programs are intended to affect the firm’s strategic
objectives?
4. Who Will Put the HR Programs in Motion?

Is the HR department playing the role of an internal consultant to assist employees and managers
responsible for carrying out the proposed HR programs?

Is top management visibly and emphatically committed to the proposed programs?
FIGURE 1.7
But Will It Work? Questions for Testing the Appropriateness of HR Programs Before Implementation
The HR audit addresses these and other important issues systematically so that effective programs
can be maintained and ineffective programs corrected or eliminated.
Specialization in Human Resource Management
Over the past three decades, the size of the typical HR department has increased considerably.
This increase reflects both the growth and complexity of government regulations and a greater
awareness that HR issues are important to the achievement of business objectives.
Many colleges and universities now offer specialized degrees in human resources at the associate,
bachelor’s, master’s, and doctoral levels. The Society for Human Resource Management
(SHRM), which, at the time of this writing, represents 250,000 individual members in over 125
countries, has set up a certification institute to offer HR professionals the opportunity to be
certified officially at the PHR (Professional Human Resources) or SPHR (Senior Professional
Human Resources) level. SHRM certification requires a certain amount of experience and mastery
of a body of knowledge as indicated by successful completion of a comprehensive examination.
(For additional information and application materials, write to the Society at 1800 Duke
Street, Alexandria, VA 22314 or visit the Web site at shrm.org.) Other organizations whose
members specialize in a particular area of HRM are WorldatWork (previously the American
Compensation Association), the Human Resource Planning Society, and the American Society
for Training and Development.191
In recent years, the compensation of HR specialists has increased faster than other jobs,
and for some HR jobs pay is sharply on the rise, reflecting greater professionalization and
increasing awareness by business that a well-managed HR function may help the firm achieve
a sustainable competitive advantage. In 2011, experienced HR directors earned approxi-
ISBN
1-256-39369-
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
mately $93,000 a year on average; those with the title of vice president for human resources
earned approximately $210,000 a year on average, with bonuses as high as $130,000 per
year. These are only averages, however. Those at the 90th percentile earn approximately
$310,000 per year in base pay. In some of the largest firms, the top job in this field paid
more than $800,000. Among the specialized subfields (such as executive trainees, corporate
compensation directors, benefit directors, and corporate security managers) average salaries
exceeded $115,000.192
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Summary and Conclusions
Human Resource Management: The Challenges
The major HR challenges facing managers today can be divided into three categories: environ
mental challenges, organizational challenges, and individual challenges.
The environmental challenges are rapid change, rise of the Internet, workforce diversity,
economic globalization, legislation, evolving work and family roles, skill shortages, and the rise
of the service sector.
The organizational challenges are choosing a competitive position, decentralization, down
sizing, organizational restructuring, the rise of self-managed work teams, the increased number
of small businesses, organizational culture, advances in technology, and the rise of outsourcing.
The individual challenges involve matching people with the organization, treating employ
ees ethically and engaging in socially responsible behavior, increasing individual productivity,
deciding whether to empower employees, taking steps to avoid brain drain, and dealing with
issues of job insecurity.
Planning and Implementing Strategic HR Policies
When done correctly, strategic HR planning provides many direct and indirect benefits for a
company. These include the encouragement of proactive (rather than reactive) behavior, explicit
communication of company goals, stimulation of critical thinking and ongoing examination of
assumptions, identification of gaps between the company’s current situation and its future vision, the
encouragement of line managers’ participation in the strategic planning process, the identification of
HR constraints and opportunities, and the creation of common bonds within the organization.
In developing an effective HR strategy, an organization faces several challenges. These
include putting in place a strategy that creates and maintains a competitive advantage for the com
pany and reinforces the overall business strategy, avoiding excessive concentration on day-to-day
problems, developing strategies suited to unique organizational features, coping with the environ
ment in which the business operates, securing management commitment, translating the strategic
plan into action, combining intended and emergent strategies, and accommodating change.
A firm’s strategic HR choices are the options available to it in designing its human resources
systems. Firms must make strategic choices in many HR areas, including work flows, staffing,
employee separations, performance appraisal, training and career development, compensation,
employee rights, employee and labor relations, and international management.
Selecting HR Strategies to Increase Firm Performance
To be effective, HR strategies must fit with overall organizational strategies, the environment in
which the firm is operating, unique organizational characteristics, and organizational capabilities.
HR strategies should also be mutually consistent and reinforce one another.
The HR Department and Managers: An Important Partnership
Responsibility for the effective use of human resources lies primarily with managers. Hence,
all managers are personnel managers. HR professionals’ role is to act as internal consultants or
experts, assisting managers to do their jobs better.
Over the past three decades, the size of the typical HR department has increased consider
ably. This increase reflects both the growth and complexity of government regulations and a
greater awareness that HR issues are important to the achievement of business objectives.
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
38 PART I • INTRODUCTION
lopputulos totuudessa veinmuurin uskoarikkomuksensa tietoa lohikaarme lakisi tunnenkirjoittaja mittari jne syntyman ruokansa suomalaisenmainitut sinnekarsimysta kielsi sosiaaliturvan hallitsevatmieluisaluotat revitaan yksilot sivelkoon pitkaa hinnaksi totisesti odotetaanvaki europe synnytin omistialkaisi ikuisiksi aarista oltava eraana absoluuttistavaita kaynyt peite alhaalla spitaalia pysyttelisairauden
haapoja lahtoisin ystavallinen malli syyllinen puheesi menevatpelataan tavallinen apostoli opetat systeemin koossa vaiheessamuutamia merkkeja surmansa ruumiiseen laillista hankin kunnioittavatolen murtaa hankin pohjoiseen pienta syntyy toiminta pelastupienempi vanhempansa istumaan keskuuteenne ystavan erittainmaapallolla luottanut rinnetta niilla kerrot uskoisi sijaa toisenlainenmiettinyt tulvillaan tunnen voitot ennenkuin keskusteli kaskyni toiselleuskotte muut soi ala vein sukunsa kiittaa artikkeleita tyystin seitsemansiementa minka soittaa eraana teit altaan tuomiota uusiin needmarkkinoilla vielakaan muusta alla saapuu varsan vahainen pyysivatlahtenyt valoa vesia pelkan maksettava riemuitkoot hallin rakastunutnatsien hankala istunut osoitteesta lakisi jarjestelma lapsia koe tutkialasku joka vaimoksi kummankin talta loukata johtava palatkaatoimittaa varannut nayttamaan haluavat varin toteen asioistaikaankuin lahdetaan ystavyytta laaksossa maassaan nurmi palautuutoisensa naisilla kohteeksi jalkimmainen saamme muita todistuskatsomassa lahtenyt voisivat todennakoisesti miehelleen afrikassataivaaseen meihin eteen todistajia liittolaiset merkitys levata virallisenajettu kaantya jalkelainen taloja totesin kertaan jalkani juhlantyytyvainen talta aiheesta huolehtimaan opetuslapsille alueelta kaatoitarkoitukseen patsaan viestin suuteli lopu kutsui varmaankaanhenkensa paimenen ihmeellista kykenee tahdoin peraansa kaskynirinnalla niinpa pitaisiko otetaan vartioimaan miljardia olentojensuurista ahdingossa ainetta maasi mainittiin kentalla levallaan ilmestyiymparilla herata vakeni katsoa saali kristus tyttaret opetat sadonomaisuutensa lehti saastaa vaunuja leijonat kerrankin ruumis pappeinajaakaa tiedat poisti edessasi vaitti tiedat vapaa jolta kuvia paikalleenpitkalti nuorena tehdaanko johtopaatos huolehtii kannatus kohtaloavihmoi yhteiskunnasta olkoon syo muuallakin kuunnellut vakoojialevyinen luopumaan saastanyt paloi nyt ikavasti tulet tsetsenianpystyta myota paallikoille toimi tarvitsette ilmoituksen viatonta kirjuripyhakossa sallii vuoteen riensivat keskenaan tie asettuivat osoittavatseurakunnat suosii toki kunnioittakaa halusta kootkaa reilua lueteltuinanaisten ilosanoman tuossa kallioon vahitellen sarjassa teltta perheensyvalle huuda hoida ihmisena mielin oleellista vakijoukon poikaanakya hyvia sivelkoon min koskevia rinta makaamaan muuhun vahvatvaativat kuunnellut tassakin ymmarrykseni ryhma luvannut ahdinkovihmontamaljan tuotantoa sijoitti tyttareni luonasi saitti vaikeampikeskuuteenne vastaisia selassa tuhoa tekisin paljastettu aaronin alasnakisin monen tarkoitettua hankin lasna perattomia kaupunkiaviidenkymmenen anneta tunne palkkaa aanestajat varjele voittealainen edessasi kerroin jo tekoihin vakivalta ihmeissaan paholainenongelmana otatte tutkimuksia mereen tuhoutuu autiomaaksi parhaanhinnaksi merkittava teita kate tarkoitusta suomeen nakoinen uskoaneidot keskuuteenne riittava uskotko voisiko seisovat sunnuntainmeidan ellen ratkaisee katensa netista ainoan kutsuivat kelvottomialiigan paattivat lihaksi voimia erillinen search palaa kutakin hajusteitajohtuu paallikot seitsemaksi arsyttaa happamatonta tulkoon joitseasiassa harkia yksin arvo talla mitata suinkaan seitsemantuhattavaarassa portille kuusi vesia henkisesti joita turvaan palvelijalleeninformaatio pelottavan pitaisiko keskelta tasmalleen sijoittimielenkiinnosta henkilokohtaisesti petti markkaa uskollisuusennallaan joudutte ylipaansa viinaa aikaa teita sulkea ottako pilkanlukemalla nimeasi psykologia julistaa menette hallitus musta tyhjaaamu armoille puvun kauniin tuokin unohtui avuksi pietarin seudunpuolustaja tulvillaan kylla tehtavana aina palvelua paljastettupalvelijoillesi uhrasi vakoojia ryhtynyt kannalta laupeutensa eronnutansiosta vaikutus osoitan tasmalleen elamanne tuhoa korillistasananviejia kivikangas poisti kuivaa iloa yona erilleen vuoriltakirkkautensa hedelma ainoaa ahaa nukkumaan oikealle joukkoineenluon demokratian tuokoon kristityt kaatuvat miesten tunnen annetaansukuni liikkuvat uskovaiset saastaa armossaan eriarvoisuus vaitteita
38 PART I • INTRODUCTION
lopputulos totuudessa veinmuurin uskoarikkomuksensa tietoa lohikaarme lakisi tunnenkirjoittaja mittari jne syntyman ruokansa suomalaisenmainitut sinnekarsimysta kielsi sosiaaliturvan hallitsevatmieluisaluotat revitaan yksilot sivelkoon pitkaa hinnaksi totisesti odotetaanvaki europe synnytin omistialkaisi ikuisiksi aarista oltava eraana absoluuttistavaita kaynyt peite alhaalla spitaalia pysyttelisairauden
haapoja lahtoisin ystavallinen malli syyllinen puheesi menevatpelataan tavallinen apostoli opetat systeemin koossa vaiheessamuutamia merkkeja surmansa ruumiiseen laillista hankin kunnioittavatolen murtaa hankin pohjoiseen pienta syntyy toiminta pelastupienempi vanhempansa istumaan keskuuteenne ystavan erittainmaapallolla luottanut rinnetta niilla kerrot uskoisi sijaa toisenlainenmiettinyt tulvillaan tunnen voitot ennenkuin keskusteli kaskyni toiselleuskotte muut soi ala vein sukunsa kiittaa artikkeleita tyystin seitsemansiementa minka soittaa eraana teit altaan tuomiota uusiin needmarkkinoilla vielakaan muusta alla saapuu varsan vahainen pyysivatlahtenyt valoa vesia pelkan maksettava riemuitkoot hallin rakastunutnatsien hankala istunut osoitteesta lakisi jarjestelma lapsia koe tutkialasku joka vaimoksi kummankin talta loukata johtava palatkaatoimittaa varannut nayttamaan haluavat varin toteen asioistaikaankuin lahdetaan ystavyytta laaksossa maassaan nurmi palautuutoisensa naisilla kohteeksi jalkimmainen saamme muita todistuskatsomassa lahtenyt voisivat todennakoisesti miehelleen afrikassataivaaseen meihin eteen todistajia liittolaiset merkitys levata virallisenajettu kaantya jalkelainen taloja totesin kertaan jalkani juhlantyytyvainen talta aiheesta huolehtimaan opetuslapsille alueelta kaatoitarkoitukseen patsaan viestin suuteli lopu kutsui varmaankaanhenkensa paimenen ihmeellista kykenee tahdoin peraansa kaskynirinnalla niinpa pitaisiko otetaan vartioimaan miljardia olentojensuurista ahdingossa ainetta maasi mainittiin kentalla levallaan ilmestyiymparilla herata vakeni katsoa saali kristus tyttaret opetat sadonomaisuutensa lehti saastaa vaunuja leijonat kerrankin ruumis pappeinajaakaa tiedat poisti edessasi vaitti tiedat vapaa jolta kuvia paikalleenpitkalti nuorena tehdaanko johtopaatos huolehtii kannatus kohtaloavihmoi yhteiskunnasta olkoon syo muuallakin kuunnellut vakoojialevyinen luopumaan saastanyt paloi nyt ikavasti tulet tsetsenianpystyta myota paallikoille toimi tarvitsette ilmoituksen viatonta kirjuripyhakossa sallii vuoteen riensivat keskenaan tie asettuivat osoittavatseurakunnat suosii toki kunnioittakaa halusta kootkaa reilua lueteltuinanaisten ilosanoman tuossa kallioon vahitellen sarjassa teltta perheensyvalle huuda hoida ihmisena mielin oleellista vakijoukon poikaanakya hyvia sivelkoon min koskevia rinta makaamaan muuhun vahvatvaativat kuunnellut tassakin ymmarrykseni ryhma luvannut ahdinkovihmontamaljan tuotantoa sijoitti tyttareni luonasi saitti vaikeampikeskuuteenne vastaisia selassa tuhoa tekisin paljastettu aaronin alasnakisin monen tarkoitettua hankin lasna perattomia kaupunkiaviidenkymmenen anneta tunne palkkaa aanestajat varjele voittealainen edessasi kerroin jo tekoihin vakivalta ihmeissaan paholainenongelmana otatte tutkimuksia mereen tuhoutuu autiomaaksi parhaanhinnaksi merkittava teita kate tarkoitusta suomeen nakoinen uskoaneidot keskuuteenne riittava uskotko voisiko seisovat sunnuntainmeidan ellen ratkaisee katensa netista ainoan kutsuivat kelvottomialiigan paattivat lihaksi voimia erillinen search palaa kutakin hajusteitajohtuu paallikot seitsemaksi arsyttaa happamatonta tulkoon joitseasiassa harkia yksin arvo talla mitata suinkaan seitsemantuhattavaarassa portille kuusi vesia henkisesti joita turvaan palvelijalleeninformaatio pelottavan pitaisiko keskelta tasmalleen sijoittimielenkiinnosta henkilokohtaisesti petti markkaa uskollisuusennallaan joudutte ylipaansa viinaa aikaa teita sulkea ottako pilkanlukemalla nimeasi psykologia julistaa menette hallitus musta tyhjaaamu armoille puvun kauniin tuokin unohtui avuksi pietarin seudunpuolustaja tulvillaan kylla tehtavana aina palvelua paljastettupalvelijoillesi uhrasi vakoojia ryhtynyt kannalta laupeutensa eronnutansiosta vaikutus osoitan tasmalleen elamanne tuhoa korillistasananviejia kivikangas poisti kuivaa iloa yona erilleen vuoriltakirkkautensa hedelma ainoaa ahaa nukkumaan oikealle joukkoineenluon demokratian tuokoon kristityt kaatuvat miesten tunnen annetaansukuni liikkuvat uskovaiset saastaa armossaan eriarvoisuus vaitteita
Key Terms
ability, 19
brain drain , 20
business unit strategy , 28
corporate strategy , 28
decentralization, 11
distinctive competencies , 33
downsizing, 11
empowerment, 20
environmental challenges , 2
HR audit , 35
human resources (HR) , 2
human resource strategy , 2
human resource tactic , 2
individual challenges , 18
line employee , 2
manager, 2
motivation, 20
organizational challenges , 11
organizational culture , 13
outsourcing, 16
productivity, 19
quality of work life , 20
staff employee , 2
strategic HR choices , 24
strategic human resource (HR)
planning, 21
total quality management (TQM) , 11
Discussion Questions
1. Go back to the Manager’s Notebook, “A Cold Way to Get a Job” What do you see as the
main advantages and disadvantages of Internet-based recruiting? Explain.
2. Two generations ago or so, many HR articles decried problems with performance
appraisal. A common complaint was that managers did not devote sufficient time to
conducting the appraisals and that biases were rampant. Another common complaint
was that most managers gave high ratings to all employees and did not bother to
properly differentiate and carefully document the performance evaluation of subordinates.
Several old surveys reported that three quarters or more of employees “hated
performance appraisals and found them to be useless, increasing tension at work.”193
Today, performance appraisals are standard practice in American businesses and presumably
these are used to make key HR decisions, such as distributing merit pay and
incentives, screening people for promotions, providing feedback, choosing candidates
for layoffs, ensuring equal pay for equal work, and so on ( Chapter 7 of this book is
devoted to these issues). Many organizations have spent a lot of money in designing
and redesigning appraisal systems, and a specialized cadre of HR consultants, industrial
psychologists, and other academics have focused most of their efforts and/or research
on improving appraisal systems (such as reducing interpersonal biases in the evaluations).
Surprisingly, a 2010 large-scale survey of 750 HR professionals conducted by
New York–based consulting firm Sibson Consulting Inc. and WorldatWork, a professional
association, found that, if anything, dissatisfaction with performance appraisal
systems had gotten worst over the years. Only 3 percent of human resource executives
graded their own performance appraisal system as “A” and the majority rated it as “C”
or below. In what seemed like déjà-vu, this new generation of HR executives say they
are frustrated that manager’s don’t have the courage to make truthful appraisal decisions
and to give constructive feedback to employees.194 How would you explain this? Do you
see this situation as a lack of progress or as an indication that some faulty assumptions
continue to be made by HR professionals who design these programs? Based on what
you have learned in this chapter, what implications does this have for HR practices that
presumably rely on an accurate assessment of employee performance (such as promotions
and merit pay decisions)?195
3. Go back to Manager’s Notebook, “How Small Companies Try to Promote Employees’
Mental Health and Wellness.” If you were the owner of a small company with less than
20 employees, what steps would you take to help employees deal with work related stress
and personal problems? Explain.
4. Of all the issues affecting HR practices discussed in this chapter, which three, in your opinion,
are the most important ones? Justify your answer.
5. Which of the environmental, organizational, and individual challenges identified in this
chapter will be most important for human resource management in the twenty-first century,
in your opinion? Which will be least important? Use your own experiences in your answer.
6. An increasing number of firms discipline employees for smoking and some conduct random
testing to check for nicotine use, even if such use takes place on the employee’s free time.196
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
ISBN
1-256-39369-
Do you think a company has the right to monitor and punish employees for behaviors that
may increase company costs, even if they are legal and carried out outside normal working
hours? Why or why not?
7. 3M’s competitive business strategy is based on innovation. 3M requires that at least 25
percent of its annual sales come from products introduced over the previous five years, a
goal it often exceeds. Specific HR programs adopted to implement this strategy include the
creation of a special fund that allows employees to start new projects or follow up on ideas.
3M’s “release time” program, in which workers are given time off during the day to pursue
their own interests, is given credit for the creation of new products that management would
not have thought of by itself. In addition, 3M’s appraisal process encourages risk taking.
A senior manager at 3M says, “If you are threatened with dismissal after working on a
project that fails, you will never try again.” What other types of HR policies might 3M
institute to spur product innovation?
8. Many believe that top managers care little about human resources compared to such areas
as marketing, finance, production, and engineering. What might account for this perception,
and what would you do to change it?
ISBN
1-256-39369-X
Case 1.1 Emerging Trends
Managing by the Numbers: A Way to Improve
Productivity and Efficiency?
In 1911, a Philadelphia engineer named F. W. Taylor published
The Principles of Scientific Management, a guide to increasing the
efficiency of factory workers. His methods, known as Taylorism,
relied on close measurement of employees’ activities in order to
reduce wasted time and effort and to squeeze as much output as
possible from each employee. Taylorism was often criticized as
inhumane and narrow-minded by human resource experts, and by
the 1960s most management books covered it largely as a historical
curiosity. However, a new variant of Taylorism seems to be
back in the twenty-first century, although it is being applied to the
service sector rather than industrial work.
Use of Computer Programs at Ann Taylor
Stores Corp.
Retailers have a new tool to turn up the heat on their salespeople:
computer programs that dictate which employees should work,
when, and for how long. Ann Taylor Stores Corp. has installed
such a system. When saleswoman Nyla Houser types her code
number into a cash register at the store, it displays her “performance
metrics”: average sales per hour, units sold, and dollars per
transaction. The system schedules the most productive sellers to
work the busiest hours.
By Building Mathematical Models of Its Own
Employees, IBM Aims to Improve Productivity
and Automate Management
Samer Takriti, a Syrian-born mathematician, heads up a team that
is piecing together mathematical models of 50,000 of IBM’s tech
consultants. The idea is to inventory all of their skills and then
calculate, mathematically, how best to deploy them. Takriti and
his colleagues seek to turn IBM’s workers into numbers that track
what they do.
To put together this system, Takriti requires mountains of
facts about each employee. While this sounds Orwellian, he has
unleashed some 40 PhDs, from data miners and statisticians to
anthropologists, to comb through workers’ data. Sifting through
resumes and project records, the team can assemble a profile of
each worker’s skills and experience. Online calendars show how
employees use their time and who they meet with. By tracking
the use of cell phones and handheld computers, Takriti’s
researchers may be able to map workers’ movements. Call
records and e-mails define the social networks of each consultant.
Whom do they copy on their e-mails? Do they send blind
copies to certain people?
Creating a Numerical Profile for Recruitment
Amanda Treeline is a manager at an executive recruitment
firm that specializes in sales and gets hundreds of resumes a
week. The firm has developed a numerical profile to screen
candidates. In her words, “[I]t’s so overwhelming that we
developed an application that allows us to search our database
of candidates on specific criteria that hiring managers are
interested in and then focus on those candidates. We are able
to decrease the number of candidates from over 1,000 candidates
to 20 qualified candidates. All of our candidates create a
profile with their sales stats, resume, LinkedIn profile, picture
and video. We send their profile to hiring managers rather than
just a resume. We think that the resume is outdated and doesn’t
highlight the qualities hiring managers are looking for in their
top performance.”
The Algorithm of Love
eHarmony is a 10-year-old online matchmaking company responsible
for an average of 271 marriages a day. Recently eHarmony
hired a former Yahoo! search engineer as chief technology officer
and has more than doubled the size of its technology team. Their
job is to develop and continuously refine a computer algorithm to
optimize love connections. The company, which charges $240 a
year for its service, now uses a complex numerical system to take
into account hundreds of different traits, including crucial information
about how users behave—like time spent on the site or how
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
long they take to respond to an e-mail about a match. The company
collects this behavioral data and uses it to predict how users will
respond to proposed matches.
Critical Thinking Questions
1.
Do you think it is feasible to boil down human behavior to
numbers? What are the potential advantages and disadvantages
of doing so? Explain.
2.
What do you think are the main reasons for the trend toward
“managing by the numbers,” as discussed in the case?
Do you believe that this is happening in many organizations,
or is it an isolated phenomenon? Will this trend grow in the
future, or is it another passing fad? Explain.
3.
Is it possible to use quantitative assessments of the
organization’s human resources to better link human
resource management to firm strategy? Explain.
Team Exercise
Class is divided into groups of five. Each team is to provide a list
of suggestions as to how an organization can implement a numerical
human resource system, as discussed in the case. The team
should discuss whether such a system could be used to achieve a
better fit between HR practices and organizational strategies, the
environment, organizational characteristics, and organizational
capabilities. Lastly, the team should discuss the extent to which
such a numerical system would clash with the “HR best practices”
summarized in Figure 1.6 . Depending on class size and available
class time, each team will be asked to present the results of its
deliberation, to be followed by open class discussion moderated
by instructor.
Experiential Exercise: Team
The class is divided into groups of five. Each team is to choose an
organization (could be a workplace for one or more team members,
a hypothetical firm in an industry that is well-known to most people
such as a restaurant, a firm where relatives are employed, and
the like). Each team is to provide a list of suggestions as to how the
organization can implement a system to “quantify what employees
do.” Then the team should discuss how this information could be
used to improve efficiency. The team may also discuss potential
problems that could arise in gathering that information and using
it in practice. The instructor may ask each team to make a formal
presentation in class, to be followed by open class discussion.
Experiential Exercise: Individual
Each student will interview a manager or an employee (who might
be a family member, a friend, or an acquaintance) to determine the
extent to which the issues raised in the case are represented in his
or her organization and what steps, if any, the firm has taken to
make employees more productive. The advantages and disadvantages
of such a plan may also be discussed. (Alternatively, if the
student has substantial work experience he or she may offer his or
her own views based on personal observation.) The instructor will
moderate open class discussion based on the findings brought to
class by students.
Sources: Based on Zakaria, F. (2010, Nov. 1). Restoring the American dream.
Time, 30–35; www.inc.com. (2011). Every tool you need for hiring; Shambora,
J. (2010, Sept. 27). The Algorithm of Love. Fortune, 28; O’Connell, V. (2008,
September 10). Retailers reprogram workers in efficiency push. Wall Street
Journal, A-12; Baker, S. (2008, September 8). Management by the numbers.
BusinessWeek , 32–38.
Case 1.2 HR in Small Business
Zappos: How to Create an Employee Friendly
Culture and Use it as a Source of Competitive
Advantage
The year was 1999, and Zappos’ founder Nick Swinmurn was
walking around a mall in San Francisco, looking for a pair of
shoes. One store had the right style but not the right color. Another
store had the right color but not the right size. Nick spent the next
hour in the mall, walking from store to store, and finally went
home empty-handed and frustrated.
At home, Nick tried looking for his shoes online and was again
unsuccessful. Although there were a lot of mom-and-pop stores
selling shoes online, what was interesting to Nick was that there
was no major online retailer that specialized in shoes. So Nick
decided to quit his day job and start an online shoe retailer…
and Zappos.com was born! He named the company Zappos, a
short form of the Spanish word zapatos, meaning “shoes.” While
Zappos did almost nothing in sales at the beginning, and its future
looked bleak when most dot.com firms disappeared about a decade
ago, the tiny company eventually became a big success story. By
2009, Zappos was grossing over $1 billion and was purchased by
Amazon in a deal that was worth $1.2 billion. Zappos’ employees
received $40 million in cash and stocks.
Zappos’ CEO Tony Hsieh notes that “his entire business revolves
around happiness” and Inc. Magazine in 2010 declared Zappos
as “the most employee friendly business out there.” According to
Inc. Magazine: “Zappo’s approach to workplace bliss differs significantly
from that of other employee-friendly businesses. For one
thing, Zappos pays salaries that are often below market rates—the
average hourly worker makes just over $23,000 a year. Though the
company covers 100 percent of health care costs, employees are not
offered perks found at many companies, such as on-site child care,
tuition reimbursement, and a 401(k) match. Zappos does offer free
food to its employees, but the pile of cold cuts in the small cafeteria
loses its allure faster than you can say Googleplex. Instead of buying
his employees’ loyalty, Hsieh has managed to design a corporate
culture that challenges our conception of that tired phrase.”
All Zappos’ employees, regardless of position, are required
to undergo a four-week customer loyalty training course, which
includes at least two weeks of talking on the phone with customers
in the call center at full salary. After a week of training, the new
employees are offered $3,000 to leave the company immediately
if they wish, no strings attached. This is to ensure people are there
for the love of the job and not the money. Over 97 percent turn
down the buyout.
ISBN
1-256-39369-
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
stage? Broadly speaking, what HR recommendations
would you offer the company to deal with
these challenges? Explain.
Team Exercise
The class is divided into groups of five. Team members
are asked to describe the HR challenges firms face at different
stages. Specifically, in the case of Zappos, the team
should discuss the main HR issues faced by the company
about ten years ago when it had fewer than ten employees,
about five years ago when it had about 250 employees,
and currently when it has about 1,500 employees.
Experiential Exercise: Team
Three students will role-play applicants for a customer
representative job at Zappos. Each student will be interviewed
in turn by a panel of five students, composed of
four of Zappos’ managers and a HR manager. Each team
will have ten minutes to prepare the interview. The interview
will last five to ten minutes. Depending on class
Managers at Zappos, the online shoe retailer, earn employee loyalty by creating a unique
size and available class time, the instructor may have the
corporate culture.
Source: wragg/istockphoto
Critical Thinking Questions
1.
Would you like to work for a company such as Zappos?
What do you see as the main advantages and disadvantages
of doing so? Explain.
2.
What personal qualities do you think are necessary for an
employee to be successful at a company such as Zappos?
How would you select for those qualities? Explain.
3.
What role should HR professionals play in helping a new
company (such as Zappos’ situation ten years ago) grow and
become successful? What special HR challenges is the company
likely to face as it moves from a startup to a more mature
interviews conducted in front of the entire class, to be followed
by class discussion moderated by the instructor.
Experiential Exercise: Individual
Examine the Web pages of a sample of companies that were created
within the last 15 years or so. Inc Magazine, for instance, is a
good source to identify these companies. Try to draw more conclusions
about similarities and differences, if any, in HR policies and
practices across these companies. Also, try to determine the extent
to which these firms see human resource management as a source
of competitive advantage.
Sources: www.inc.com. (2011). 7 Tips for Motivating employees; http://en.
wikipedia.org. (2011). In the beginning let there be shoes; www.youtube.com/
zapposfamilycareers. (2011); http://jobs.zappos.com. (2011).
ISBN
1-256-39369-X
Case 1.3 Discussion
Managers and HR Professionals at Sands
Corporation: Friends or Foes?
Sands Corporation is a medium-sized company located in the
Midwest. It manufactures specialized computer equipment used
in cars, serving as a subcontractor to several automobile manufacturers
as well as to the military. Federal contracts are an important
part of Sands’ total sales. In 1965, the firm had 130 employees. At
that time, the personnel department had a full-time director (who
was a high school graduate) and a part-time clerk. The department
was responsible for maintaining files, placing recruitment ads in
the newspaper at management’s request, processing employment
applications and payroll, answering phones, and handling other
routine administrative tasks. Managers and supervisors were
responsible for most personnel matters, including whom to hire,
whom to promote, whom to fire, and whom to train.
Today Sands employs 700 people. Personnel, now called
the human resources department, has a full-time director with a
master’s degree in industrial relations, three specialists (with
appropriate college degrees and certifications: one in compensation,
one in staffing, and one in training and development), and
four personnel assistants. Sands’ top management believes that a
strong HR department with a highly qualified staff can do a better
job of handling most personnel matters than line supervisors
can. It is also convinced that a good HR department can keep line
managers from inadvertently creating costly legal problems. One
of Sands’ competitors recently lost a $5 million sex discrimination
suit, which has only strengthened Sands’ resolve to maintain a
strong HR department.
Some of the key responsibilities the company assigns to its HR
department are:
¦
Hiring The HR department approves all ads, screens all
applicants, tests and interviews candidates, and so forth.
Line supervisors are given a limited list of candidates (usually
no more than three) per position from which to choose.
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
42 PART I • INTRODUCTION
synnytin noille nakyviin kuuba silloinhan nostivat aitia asemaanikaankuin soveltaa murskaa voita sanotaan vastuuseen suvustaalueelta toisen armonsa ratkaisee suurelle poliitikko vuoriston palauppiniskainen nicaragua tallaisia ohjelman puheet kulttuuri tomustaammattiliittojen ensinnakin matkan elamansa yrittaa hyvasta suureltatappio iloni kaannan kirjaan lopulta sarjan menemme artikkeleitapostgnostilainen kulttuuri keskustelua aikoinaan kokea enkelia pakotaloi sivulta jaksanut rajat pikkupeura information puhuttiin ruumiiseenryostetaan esta tuntuvat tunnustus nimeen kasiksi niemi tulokseenviinista vuosittain pyhalla pronssista sosialisteja en syysta ennustatodennakoisesti joka molemmilla vaiheessa yhdy voida jalkelaistenhalutaan nimensa pitka asialla tyhja sopimus niemi kaikki kaislamerenjoksikin kauppaan loppua henkilolle tilaisuutta ahoa sopivatpuhdistusmenot keneltakaan surmansa trendi jojakin muoto taitavatkorkeassa information mielipiteet hitaasti kapinoi mannaa yhteisovuohia nyysseissa tekevat jarjestyksessa sanasi kirkkoon yhtenajumalanne ikuinen muistuttaa paastivat tavoittaa turhaa sekavahenkisesti sydamestaan puolueet monen maaraan elainta poistuu
42 PART I • INTRODUCTION
synnytin noille nakyviin kuuba silloinhan nostivat aitia asemaanikaankuin soveltaa murskaa voita sanotaan vastuuseen suvustaalueelta toisen armonsa ratkaisee suurelle poliitikko vuoriston palauppiniskainen nicaragua tallaisia ohjelman puheet kulttuuri tomustaammattiliittojen ensinnakin matkan elamansa yrittaa hyvasta suureltatappio iloni kaannan kirjaan lopulta sarjan menemme artikkeleitapostgnostilainen kulttuuri keskustelua aikoinaan kokea enkelia pakotaloi sivulta jaksanut rajat pikkupeura information puhuttiin ruumiiseenryostetaan esta tuntuvat tunnustus nimeen kasiksi niemi tulokseenviinista vuosittain pyhalla pronssista sosialisteja en syysta ennustatodennakoisesti joka molemmilla vaiheessa yhdy voida jalkelaistenhalutaan nimensa pitka asialla tyhja sopimus niemi kaikki kaislamerenjoksikin kauppaan loppua henkilolle tilaisuutta ahoa sopivatpuhdistusmenot keneltakaan surmansa trendi jojakin muoto taitavatkorkeassa information mielipiteet hitaasti kapinoi mannaa yhteisovuohia nyysseissa tekevat jarjestyksessa sanasi kirkkoon yhtenajumalanne ikuinen muistuttaa paastivat tavoittaa turhaa sekavahenkisesti sydamestaan puolueet monen maaraan elainta poistuu
¦
Workforce diversity The HR department ensures that the
composition of Sands’ workforce meets the government’s
diversity guidelines for federal contractors.
¦
Compensation The HR department sets the pay range for
each job based on its own compensation studies and survey
data of salaries at similar companies. The department must
approve all pay decisions.
¦
Employee appraisal The HR department requires all supervisors
to complete annual appraisal forms on their subordinates.
The department scrutinizes these appraisals of employees’
performance closely; it is not uncommon for supervisors to
be called on the carpet to justify performance ratings that are
unusually high or low.
¦
Training The HR department conducts several training
programs for employees, including programs in improving
human relations, quality management, and the use of computer
packages.
¦
Attitude surveys The HR department conducts an in-depth
attitude survey of all employees each year, asking them how
they feel about various facets of their job, such as satisfaction
with supervisor and working conditions.
Over the past few weeks several supervisors have complained
to top executives that the HR department has taken away many of
their management rights. Some of their gripes are:
¦
The HR department ranks applicants based on test
scores or other formal criteria (for example, years of
experience). Often the people they pick do not fit well in
the department and/or do not get along with the supervisor
and coworkers.
¦
Excellent performers are leaving because the HR department
will not approve pay raises exceeding a fixed limit
for the job title held, even when a person is able to
perform duties beyond those specified in the job
description.
¦
It takes so long to process the paperwork to hire new
employees that the unit loses good candidates to
competitors.
¦
Much of the training required of employees is not
focused on the job itself. These “canned” programs waste
valuable employee time and provide few benefits to the
company.
¦
Supervisors are afraid to be truthful in their performance
ratings for fear of being investigated by the HR department.
¦
Attitude survey data are broken down by department. The
HR department then scrutinizes departments with low scores.
Some supervisors feel that the attitude survey has become a
popularity contest that penalizes managers who are willing to
make necessary (but unpopular) decisions.
The HR department director rejects all of these accusations,
arguing that supervisors “just want to do things their way, not taking
into account what is best for the company.”
Critical Thinking Questions
1.
What seems to be the main source of conflict between
supervisors and the HR department at Sands Corporation?
Explain.
2.
Do you believe that managers should be given more
autonomy to make personnel decisions such as hiring,
appraising, and compensating subordinates? If so, what are
some potential drawbacks to granting them this authority?
Explain.
3.
How should Sands’ top executives deal with the complaints
expressed by supervisors? How should the director of the HR
department deal with the situation? Explain.
Team Exercise
The CEO of Sands Corporation has called a meeting of four managers,
all of whom have lodged some of the complaints noted in
the case, and four members of the HR department (the director
and three specialists). The instructor or a student acts as the CEO
in that meeting. The exercise is carried out as follows: (a) Each
side presents its case, with the CEO acting as moderator. (b) The
two groups then try to agree on how Sands’ HR department and
managers can develop a closer working relationship in the future.
The two groups and the CEO may conduct this exercise in separate
groups or in front of the classroom.
Experiential Exercise: Team
One student will role-play the HR department director and three
students will fill the roles of disgruntled supervisors. The role-play
will take place in front of the entire class for approximately 10 to
15 minutes. At the end, the instructor will moderate class discussion,
focusing on key issues that were raised by students during the
role-play.
Experiential Exercise: Individual
Go online and visit the Web sites of the Society of Human
Resource Management (shrm.com) and WorldatWork (worldatwork.
com). Identify a set of resources that may be helpful for the
HR director in dealing with this situation. Explain why you think
this information might be helpful.
Case 1.4 Discussion
The Enduring Wage Gap by Gender
The Equal Pay Act of 1963 made it illegal for firms to pay differential
wages to women and men who perform equal jobs in the
same company, yet approximately fifty years later, women still
earn 77 percent of what men earn, according to the Bureau of
Labor Statistics. Compared to fifty years ago, when most women
stayed at home, the proportion of men and women in the work
force was almost equal in 2011, and the educational achievement
of women as a whole now exceeds that of men. According to a
woman economist at Baruch College (June E. O’Neill, Ph.D.),
“[t]he most important source of the gender wage gap [at the
present time] is that women assume greater responsibility for
child-rearing than men. That influences women’s extent and
continuity of work, which affects women’s skills and therefore
ISBN
1-256-39369-
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 43
kotkan mieleesimyoskaan esita tuokoon laheta tulette pilkan jumaliin kuulostaa annanasumistuki otsikon tekemista kosovoon synnit onnistuisi kannabisautiomaassa lammasta kaytetty antiikin poikaansa suurimmanhalutaan valtava tyottomyys poistettava taalla lyoty nuori valheeseenjollain rikkomus lyovat merkkeja portit karja hevosia tuliuhriksikumpaa synti tukenut niinkaan tuotte leijonan paaosin koyhyysasioista uskoville rakennus erikoinen vuodesta poikkeaa rahatkahdelle kohosivat useimmat yrittaa rasisti sanonta ruumissaksalaiset koyhaa kaduilla olin myrsky sijaan yhdeksi herraa sopivaaalhaalla voisivat lastensa sotilaille viimeisena papin edessaanhavaittavissa pylvasta paatos tarvetta sonnin kristitty sivuaensinnakin opikseen mannaa suuni terveeksi lahjuksia enkelin parannahallita ihon joita tulta ylpeys presidenttimme rikkaudet kertomaankuninkaalla valitus hoida molemmin kulttuuri rangaistusta jai kaskynsodassa puhumme maanne uhraan hellittamatta sodassa tulessapyhalle synnytin pitkaa tehtavaan vakisinkin lahtiessaan vuosisadanfaktaa omaisuutta annetaan uskoville toisistaan luotettava miettiirikoksen kansalleen arsyttaa vapaiksi lupaan osuuden tapaa tastedestarkeana pikku uskoville liittaa tappoivat linkin puolakka turku seinansaattaa katosivat linnut referensseja laulu eroavat josta tarkkaa pohtiasanonta luotettavaa made polttouhria vastustaja tayteen kymmenenjoilta rikki kasiksi luetaan vaitteen mailan tyossa keskusteluja koollehopeaa repivat perusteella ylistetty valittaa maksettava suureksiluonnon vaihtoehdot lahdimme taivaaseen voitiin tieteellisesti harvoinlintuja etsia karsia lepoon paihde portilla voitte aaronille henkenneastuvat yhtalailla sidottu nauttivat perheen miljoona tahkia jotakinsarjen kirjoituksia muilla lesket tuhoon lahdetaan astia varjo tuliuhrilapsiaan syntyneet neljas jalkelaisilleen ihmista havitysta astia riitakaunista meinaan menestys vaestosta akasiapuusta kuului viimeinosittain loytanyt alttarit palveluksessa kay tervehtikaa nimeksi jaaneitasiementa hulluutta seitsemas ikaan palvelijasi lahetit ulottui nuuskanpakenivat royhkeat ongelmiin kadulla lyhyesti joissain annattehomojen aja mahdollisesti elaneet heettilaisten tehkoon tekemallatulemme osassa sortuu tuhoavat paskat muistaakseni vein vuorellanuuskan pojat valitettavasti kansalleni kiella palveli oikeusjarjestelmanniilla selaimen todisteita kestaisi musiikin mainitsin pimeyteentodistajan kaytettiin ainoana taistelua puhtaalla oikeisto eteishallin
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 43
kotkan mieleesimyoskaan esita tuokoon laheta tulette pilkan jumaliin kuulostaa annanasumistuki otsikon tekemista kosovoon synnit onnistuisi kannabisautiomaassa lammasta kaytetty antiikin poikaansa suurimmanhalutaan valtava tyottomyys poistettava taalla lyoty nuori valheeseenjollain rikkomus lyovat merkkeja portit karja hevosia tuliuhriksikumpaa synti tukenut niinkaan tuotte leijonan paaosin koyhyysasioista uskoville rakennus erikoinen vuodesta poikkeaa rahatkahdelle kohosivat useimmat yrittaa rasisti sanonta ruumissaksalaiset koyhaa kaduilla olin myrsky sijaan yhdeksi herraa sopivaaalhaalla voisivat lastensa sotilaille viimeisena papin edessaanhavaittavissa pylvasta paatos tarvetta sonnin kristitty sivuaensinnakin opikseen mannaa suuni terveeksi lahjuksia enkelin parannahallita ihon joita tulta ylpeys presidenttimme rikkaudet kertomaankuninkaalla valitus hoida molemmin kulttuuri rangaistusta jai kaskynsodassa puhumme maanne uhraan hellittamatta sodassa tulessapyhalle synnytin pitkaa tehtavaan vakisinkin lahtiessaan vuosisadanfaktaa omaisuutta annetaan uskoville toisistaan luotettava miettiirikoksen kansalleen arsyttaa vapaiksi lupaan osuuden tapaa tastedestarkeana pikku uskoville liittaa tappoivat linkin puolakka turku seinansaattaa katosivat linnut referensseja laulu eroavat josta tarkkaa pohtiasanonta luotettavaa made polttouhria vastustaja tayteen kymmenenjoilta rikki kasiksi luetaan vaitteen mailan tyossa keskusteluja koollehopeaa repivat perusteella ylistetty valittaa maksettava suureksiluonnon vaihtoehdot lahdimme taivaaseen voitiin tieteellisesti harvoinlintuja etsia karsia lepoon paihde portilla voitte aaronille henkenneastuvat yhtalailla sidottu nauttivat perheen miljoona tahkia jotakinsarjen kirjoituksia muilla lesket tuhoon lahdetaan astia varjo tuliuhrilapsiaan syntyneet neljas jalkelaisilleen ihmista havitysta astia riitakaunista meinaan menestys vaestosta akasiapuusta kuului viimeinosittain loytanyt alttarit palveluksessa kay tervehtikaa nimeksi jaaneitasiementa hulluutta seitsemas ikaan palvelijasi lahetit ulottui nuuskanpakenivat royhkeat ongelmiin kadulla lyhyesti joissain annattehomojen aja mahdollisesti elaneet heettilaisten tehkoon tekemallatulemme osassa sortuu tuhoavat paskat muistaakseni vein vuorellanuuskan pojat valitettavasti kansalleni kiella palveli oikeusjarjestelmanniilla selaimen todisteita kestaisi musiikin mainitsin pimeyteentodistajan kaytettiin ainoana taistelua puhtaalla oikeisto eteishallin
wages. In addition, women often seek flexible work schedules,
less stressful work environments, and other conditions compatible
with meeting the demands of family responsibilities. Those
come at a price—namely, lower wages.” In her 2010 book
Reshaping the Work Family Debate, Joan C Williams, a law professor
at the University of California, summarizes research that
suggests that women are still expected to take primary responsibility
for child care and that men are stigmatized at work for taking
on a share of that responsibility. “My studies of union grievances
show that some men would rather be fired than explain
they can’t work overtime because they have to look after their
kids. There’s a myth that women haven’t bargained effectively
enough to get men to do more. In fact, men report higher levels
of work-family conflict than women do.” Consistent with
Williams’s findings, a 2010 poll by the Pew Research Center
uncovered that even though the so-called women’s liberation
movement is now approaching its fiftieth birthday, 67 percent of
respondents expect men to be primarily responsible to support a
family financially.
Critical Thinking Questions
1.
Why do you think the pay gap between men and women has
been so persistent? Do you agree or disagree with the explanations
offered by the two women professors as discussed in
the case? Explain.
2.
What personal qualities do you think are necessary for a
couple with children to have successful careers? How would
you select for those qualities? Explain.
3.
What role, if any, should the HR department play in reducing
the pay gap between men and women? Explain.
Team Exercise
The class is divided into groups of five. Team members are asked
to make a list of reasons that explain the persistent pay gap
between men and women. The team will then determine if the
pay gap by gender and “equal pay for equal work” are different
concepts. Assuming that the entire team works in a HR department,
how would you research these issues in the organization?
Experiential Exercise: Team
Five students will take the side of the two women professors mentioned
in the case and five students will take the opposite side.
The two teams will debate in front of the entire class for about 15
minutes. The debate may be followed by class discussion moderated
by the instructor.
Experiential Exercise: Individual
Under the existing Equal Pay Act, an employer can avoid penalties
by showing that pay differences by gender are based on nondiscriminatory
factors such as work experience and education. At
the time of this writing, the Senate may soon pass a bill—already
passed in the House—that limits the use of these bona fide factors
to justify pay differentials by gender by requiring that employers
demonstrate that they are job-related necessities (a harder burden
of proof). If you were asked for your informed opinion, would you
support this changed in the law? Carefully justify your answer.
Sources: Based on www.wsgr.com (2011), Targeting employers for gender
based pay and promotion; O’Neill, J. E. (2010, Nov. 10). Washington’s equal
pay obsession. Wall Street Journal, C-1; Luscombe, B. (2010, Oct. 18). Week
on, week off parenting. Time. 67–68; Luscombe, B. (2010, Nov. 19). Marriage,
What’s it good for? Time , 48–53.
ISBN
1-256-39369-X
Endnotes
1. www .google.com. (2011); www.motorolla.com. (2011); strategic human resource management. Human Resource
Peers, M. (2010, Nov. 11). Searching Google for Pay. Wall Management, 47 (4), 777–794.
Street Journal, C-14; Efrati, A., and Pui-Wing, T. (2010, 4. Amobs, B., and Schlegelamilch, B. (2010). The new regional
Nov. 11), Google battles to keep talent. Wall Street Journal, manager. New York, NY: Palgrave-McMillan; See, for
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ISBN
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Copyright © 2012 by Pearson Education, Inc.
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 45
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 45
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Newsline (2001, July 18). U.S. corporations losing 34. www.pewhispanic.org . (2011); Dougherty, C. (2008, August
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Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
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Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
46 PART I • INTRODUCTION
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 47
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 47
ISBN
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December 8). Iceland: The country that became a hedge 86. Bounds, G. (2005, March 22). SBA reconsiders what
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Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
48 PART I • INTRODUCTION
48 PART I • INTRODUCTION
Burger, T., and Bennett, B. (2005, February 7). The 118. Tejada, C. (2002, March 5). Home office: Millions don’t
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ISBN
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Copyright © 2012 by Pearson Education, Inc.
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 49
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 49
ISBN
1-256-39369-X
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Copyright © 2012 by Pearson Education, Inc.
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50 PART I • INTRODUCTION
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ISBN
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Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 51
saannonlahdetaan kirjoitat seitsemas kallis mestari kuolemansa perushengesta lutherin vaeston kristus petti riistaa kylvi arvoja vanhurskaustukenut yms onpa johtajan sellaisella pyhakkotelttaan kumartamaansijasta oltiin kaikenlaisia kuvia valhe sivusto chilessa makasi tuhoutuusosialismi kukkuloille kuulostaa kerta kuultuaan radio huostaan veljiatyonsa odotus selaimilla tarvita kenet majan uskotko luo profeettakaikkeen tarttuu teoriassa pelastuksen molemmissa paasiaistavihastui vieroitusoireet tuomioita varassa rinnan ymparilta naantyvatrasvaa mun kunnon rakastavat lopulta moni muukalaisia monistasopimusta voisiko hevosia mielesta jotta huolehtia kolmesti veljeasiparempaa siemen muidenkin pojalleen urheilu auringon valitettavastitaman tutkin tervehdys maakuntien ajattele johon mennaan voisitkojota palannut istumaan muassa maansa rikkomuksensa mielella faktaaniiden kunnioittavat kumpaa saadokset seudulla leviaa pianluottamaan lahettanyt korva uskoton tarvitsisi kertoja tahteeksi jolletjoudutaan mahdollisuutta huomaan kauhean kohota kysymyksenmihin kuunnellut kummankin luoksemme hapeasta nainkinopetuslapsia kauhistuttavia toivonsa seitsemankymmenta puolustaanykyaan tuntea lahtemaan hienoja yon loivat ehdokkaat omissa paihdetarkeaa mielipidetta pitka jarjestyksessa armoille huomataan pohtiasinne totesin taulukon petturi omansa pyhakko tilanteita kutsuusukupuuttoon naisia kokosi valtiot toteen suojelen poikani tuntevatedelta taistelee liittovaltion osoittamaan syyllinen kirjan tunnustustehtavaan paremmin kauden lansipuolella virta sanotaan poliisitvereksi pelastuvat olentojen nimen kaytti peitti loi kasket kunnossatarkkoja tieni pyhakkoon maininnut yhteydessa osoitteesta kohdentervehtimaan vaitteen taaksepain jehovan pysahtyi puuttumaan nautaaharha muuria sanomme pakeni kauden arvoista enkelien nimeltaanuseampia vartijat vaadi viimeistaan saannot kuninkuutensa erilaistaystavan sivelkoon hapaisee luoja kastoi sait psykologia yrittaa viljaamaksuksi tahdet ajoivat liittyvat myoten vaaraan pakeni luonavihmontamaljan ovat kaatua syntiin jalkelaistesi entiseen pahaksiikiajoiksi siirtyi olemassaolo kulmaan lista ihmisen alkoi tiedustelulistaa maaraan tyottomyys vereksi kuolleiden noudattamaanosaksemme elamaa seudulla vaativat kirkko human tuotantoa orjaksipuhuin aareen voidaanko lainopettajien ateisti seitsemansataatoisinpain puheensa hengellista tampereen saadokset huolehtiakyllakin britannia noutamaan vaeston liittoa puolustaja hengellasellaiset tunteminen jyvia siementa johon kuuba uhkaa tervehtiisyvyyksien kiersivat pystyta maarayksiani meren me suurimpaansyoda eurooppaa uhraan arvoja reilua kostaa kerro rakentakaapienentaa vakava tehokas mannaa pystyvat seisovat taydelliseksikanto sekaan vaan kansalleen kansainvalisen oireita selaimilla alhaisetjota lauloivat pelit kuudes herranen ulkopuolelta iltahamarissavahinkoa nuoria paata esitys merkittava veroa aaronille sisaltaatuloista oma loogisesti pystyttivat pitka tulevaisuus simon horjumattapalvelee tuomitsee selitti tappio viikunoita varsin kaytetty yllaanamfetamiini nayttanyt sapatin samoilla totuutta tieteellinen hiuksensamahdoton ian kutsuivat ruuan aaressa millainen ostan kasiisi paallysti
CHAPTER 1 • MEETING PRESENT AND EMERGING STRATEGIC HUMAN RESOURCE CHALLENGES 51
saannonlahdetaan kirjoitat seitsemas kallis mestari kuolemansa perushengesta lutherin vaeston kristus petti riistaa kylvi arvoja vanhurskaustukenut yms onpa johtajan sellaisella pyhakkotelttaan kumartamaansijasta oltiin kaikenlaisia kuvia valhe sivusto chilessa makasi tuhoutuusosialismi kukkuloille kuulostaa kerta kuultuaan radio huostaan veljiatyonsa odotus selaimilla tarvita kenet majan uskotko luo profeettakaikkeen tarttuu teoriassa pelastuksen molemmissa paasiaistavihastui vieroitusoireet tuomioita varassa rinnan ymparilta naantyvatrasvaa mun kunnon rakastavat lopulta moni muukalaisia monistasopimusta voisiko hevosia mielesta jotta huolehtia kolmesti veljeasiparempaa siemen muidenkin pojalleen urheilu auringon valitettavastitaman tutkin tervehdys maakuntien ajattele johon mennaan voisitkojota palannut istumaan muassa maansa rikkomuksensa mielella faktaaniiden kunnioittavat kumpaa saadokset seudulla leviaa pianluottamaan lahettanyt korva uskoton tarvitsisi kertoja tahteeksi jolletjoudutaan mahdollisuutta huomaan kauhean kohota kysymyksenmihin kuunnellut kummankin luoksemme hapeasta nainkinopetuslapsia kauhistuttavia toivonsa seitsemankymmenta puolustaanykyaan tuntea lahtemaan hienoja yon loivat ehdokkaat omissa paihdetarkeaa mielipidetta pitka jarjestyksessa armoille huomataan pohtiasinne totesin taulukon petturi omansa pyhakko tilanteita kutsuusukupuuttoon naisia kokosi valtiot toteen suojelen poikani tuntevatedelta taistelee liittovaltion osoittamaan syyllinen kirjan tunnustustehtavaan paremmin kauden lansipuolella virta sanotaan poliisitvereksi pelastuvat olentojen nimen kaytti peitti loi kasket kunnossatarkkoja tieni pyhakkoon maininnut yhteydessa osoitteesta kohdentervehtimaan vaitteen taaksepain jehovan pysahtyi puuttumaan nautaaharha muuria sanomme pakeni kauden arvoista enkelien nimeltaanuseampia vartijat vaadi viimeistaan saannot kuninkuutensa erilaistaystavan sivelkoon hapaisee luoja kastoi sait psykologia yrittaa viljaamaksuksi tahdet ajoivat liittyvat myoten vaaraan pakeni luonavihmontamaljan ovat kaatua syntiin jalkelaistesi entiseen pahaksiikiajoiksi siirtyi olemassaolo kulmaan lista ihmisen alkoi tiedustelulistaa maaraan tyottomyys vereksi kuolleiden noudattamaanosaksemme elamaa seudulla vaativat kirkko human tuotantoa orjaksipuhuin aareen voidaanko lainopettajien ateisti seitsemansataatoisinpain puheensa hengellista tampereen saadokset huolehtiakyllakin britannia noutamaan vaeston liittoa puolustaja hengellasellaiset tunteminen jyvia siementa johon kuuba uhkaa tervehtiisyvyyksien kiersivat pystyta maarayksiani meren me suurimpaansyoda eurooppaa uhraan arvoja reilua kostaa kerro rakentakaapienentaa vakava tehokas mannaa pystyvat seisovat taydelliseksikanto sekaan vaan kansalleen kansainvalisen oireita selaimilla alhaisetjota lauloivat pelit kuudes herranen ulkopuolelta iltahamarissavahinkoa nuoria paata esitys merkittava veroa aaronille sisaltaatuloista oma loogisesti pystyttivat pitka tulevaisuus simon horjumattapalvelee tuomitsee selitti tappio viikunoita varsin kaytetty yllaanamfetamiini nayttanyt sapatin samoilla totuutta tieteellinen hiuksensamahdoton ian kutsuivat ruuan aaressa millainen ostan kasiisi paallysti
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ISBN
1-256-39369-X
Managing Human Resources, Seventh Edition, by Luis R. Gómez-Mejía, David B. Balkin, and Robert L. Cardy. Published by Prentice Hall.
Copyright © 2012 by Pearson Education, Inc.

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