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I’m working on a management writing question and need an explanation and answer to help me learn.

1) Describe the challenges and opportunities of human resources.

2) Name a company you hope to work for someday. What is its track record in terms of corporate social responsibility and sustainability? Are these factors important to you? Why or why not?

3) What are the differences between offshoring and outsourcing?

4) What criteria must be met if firms are to achieve a competitive advantage through their employees?

Chapter 2
Strategy and
Human
Resources
Planning
Copyright ©2019 Cengage. All Rights Reserved.
Learning Outcomes
After studying this chapter, you should be able to
1. Explain how human resources planning and a firm’s mission, vision,
and values are integrally linked to its strategy.
2. Understand how an organization’s external environment influences
its strategic planning.
3. Understand why it is important for an organization to do an internal
resource analysis.
4. Explain the linkages between competitive strategies and HR.
5. Understand what is required for a firm to successfully execute a
strategy and assess its effectiveness.
6. Describe how firms evaluate their strategies and HR execution.
Copyright ©2019 Cengage. All Rights Reserved.
Discussion Starter #1
Amazon.com has tested technology to deliver small packages to people’s
houses via drones.
How might drone delivery change Amazon’s competitive environment?
 What changes in customers, new entrants, substitutes, and suppliers might
result?
 How would it affect the firm’s HR practices?

Copyright ©2019 Cengage. All Rights Reserved.
2.1 Strategic Planning and
Human Resources Planning
 Strategic planning – Procedures for making decisions
about the organization’s long-term goals and strategies
 Human resources planning (HRP) – The process of
anticipating and providing for the movement of people
into, within, and out of an organization
 Strategic human resources management – The
pattern of human resources deployments and activities
that enable an organization to achieve its strategic goals
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.1: Linking Strategic
Planning and Human Resources
Copyright ©2019 Cengage. All Rights Reserved.
2.2 Step One:
Mission, Vision, and Values
 Mission – The basic purpose of the organization
as well as its scope of operations
 Strategic vision – A statement about where the
company is going and what it can become in the
future
 Core values – The strong and enduring beliefs
and principles that guide a firm’s decisions and
are the foundation of its corporate culture
Copyright ©2019 Cengage. All Rights Reserved.
Video Highlight #1
Two of the most important and yet confusing
strategic decisions a business has to make are,
“What is our mission?” and “What is our vision?”
This video provides an explanation of how radically
different the two are from each other.
“What’s the Difference Between Mission and
Vision?”
Copyright ©2019 Cengage. All Rights Reserved.
2.2a Developing a Mission Statement
 To begin crafting a business’s mission statement, one
should answer the following questions:
 What is my organization’s reason for being? What need does the




organization need to fulfill that isn’t already being met by another
firm or could be better met?
For whom will the firm fulfill the need? Who are its customers?
Where is the firm’s market and customers? Will the firm operate
locally, geographically, or globally?
What core values do the people in the firm share as part of the
organization’s mission?
How do these values differentiate the organization from other
companies?
Copyright ©2019 Cengage. All Rights Reserved.
2.2b HR’s Role in Establishing and Reinforcing
a Firm’s Mission, Vision, and Values
 HR managers help embody the firm’s mission,
vision, and values within the organization by
doing the following:
 Communicating them frequently, both informally and
formally, via verbal and written communications
 Recruiting and hiring employees whose values are
consistent with the organization
 Translating the mission, vision, and values into job
descriptions and specific behaviors and recognizing
and rewarding employees based on them
Copyright ©2019 Cengage. All Rights Reserved.
2.3 Step Two: External Analysis
 SWOT analysis – A comparison of one’s strengths,
weaknesses, opportunities, and threats for strategy
formulation purposes
 Summarizes the major facts and forecasts derived from external
and internal analyses
 Environmental scanning – Systematic monitoring of
the major external forces influencing the organization
 Includes forces in the business environment (also called the
remote environment) and the competitive environment

Business environment – Factors in the external environment that a
firm cannot directly control but that can affect its strategy and
performance
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.2:
The Five Forces Framework
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.3: Primary Stakeholders
versus Secondary Stakeholders
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.4:
An Example of an HR Dashboard
Copyright ©2019 Cengage. All Rights Reserved.
Discussion Starter #2
What external forces influence a firm’s strategy?
Copyright ©2019 Cengage. All Rights Reserved.
2.4 Step Three: Internal Analysis
 In addition to an external analysis, organizations
must also analyze their own strengths and
weaknesses.
Copyright ©2019 Cengage. All Rights Reserved.
2.4a Core Capabilities
 Core capabilities – Integrated knowledge sets within an
organization that distinguish it from its competitors and deliver value
to customers
 Value creation – What a firm adds to a product or service by virtue of
making it; the amount of benefits provided by the product or service
once the costs of making it are subtracted
 Core capabilities can consist of a combination of three resources:
1. Processes – “Recipes” or standard routines for how work will be done
and results will be accomplished
2. Systems (technologies) – Include information systems, databases,
proprietary technologies, and the like
3. People – Include the knowledge, skills, and abilities of employees most
critical for executing the firm’s plan to create the most value for
customers and whose skills are difficult to replicate or replace
Copyright ©2019 Cengage. All Rights Reserved.
2.4b Sustaining a Competitive
Advantage Through People
 Organizations can achieve a sustained
competitive advantage if they have resources—
particularly people—that meet the following
criteria:
 The resources must be valuable.
 The resources must be rare.
 The resources must be difficult to imitate.
 The resources must be organized.
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.5: Mapping Human Capital
Copyright ©2019 Cengage. All Rights Reserved.
2.4c Types of Talent and Their
Composition in the Workforce
Strategic Knowledge Workers
 Tend to have unique skills directly linked to the company’s strategy and are
difficult to replace
Core Employees
 Are valuable to a company but not particularly unique or difficult to replace
Supporting Workers
 Have skills that are less central to creating customer value and generally
available in the labor market
Complementary (External) Partners
 Have skills that are unique and specialized but not directly related to a
company’s core strategy
Copyright ©2019 Cengage. All Rights Reserved.
2.4d Corporate Culture
 Cultural audits – Audits of the culture and quality of
work life in an organization
 Examine values, attitudes, beliefs, and expectations
Conducting a Cultural Audit
 To conduct a cultural audit, employees can be surveyed
about how they feel about issues such as:
 How is business conducted within your organization?
 How do people communicate with one another?
 How are conflicts and crises resolved?
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.6: Four Basic Types of
Organizational Culture
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.7: Model of HR Forecasting
Copyright ©2019 Cengage. All Rights Reserved.
2.4e Forecasting (slide 1 of 3)
Forecasting a Firm’s Demand for Employees
Quantitative Approaches
 Trend analysis – A quantitative approach to forecasting labor demand
based on a factor such as sales
 More sophisticated statistical planning methods include modeling or
multiple predictive techniques.
Qualitative Approaches
 Management forecasts – The opinions (judgments) of supervisors,
department managers, experts, or others knowledgeable about the
organization’s future employment needs
 Delphi technique – Attempts to decrease the subjectivity of forecasts by
soliciting and summarizing the judgments of a preselected group of
individuals
Copyright ©2019 Cengage. All Rights Reserved.
2.4e Forecasting (slide 2 of 3)
Forecasting the Supply of Employees
Staffing Tables and Markov Analyses
 Staffing table – A table that shows a firm’s jobs, along with the numbers
of employees currently occupying those jobs and future (monthly or
yearly) employment requirements
 Markov analysis – A method for tracking the pattern of employee
movements through various jobs in a firm
 Quality of fill – A metric designed to measure how well new hires that fill
positions are performing on the job
Skill Inventories and Management Inventories
 Skill inventories – Files of personnel education, experience, interests,
skills, and so on that allow managers to quickly match job openings with
employee backgrounds.
 Management inventories – Data gathered on managers
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.8: Hypothetical Markov
Analysis for a Retail Company
Copyright ©2019 Cengage. All Rights Reserved.
2.4e Forecasting (slide 3 of 3)
Forecasting the Supply of Employees (cont’d)
Replacement Charts and Succession Planning
 Replacement charts – Listings of current jobholders and people
who are potential replacements if an opening occurs
 Succession planning – The process of identifying, developing,
and tracking key individuals for executive positions
 Succession planning and replacement charts are often
developed in conjunction with talent reviews.

Talent reviews – Strategic meetings to determine if a company has
the human resources it needs to compete in the future
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.9:
An Executive Replacement Chart
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.10:
Assessing a Firm’s Human Capital
Copyright ©2019 Cengage. All Rights Reserved.
2.5 Step Four: Formulating a Strategy
 Strategy formulation builds on a SWOT analysis.
 A SWOT analysis can help a company move from
formulating a strategy, to devising a plan, to
capitalizing on opportunities, to counteracting on
threats, to alleviating internal weaknesses.
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.11: An Example of a
SWOT Analysis for Liz Claiborne
Copyright ©2019 Cengage. All Rights Reserved.
2.5a Corporate Strategy
 A firm’s corporate strategy includes the markets
in which it will compete, against whom, and how.
 Growth and diversification
 Mergers and acquisitions
 Strategic alliances and joint ventures
Copyright ©2019 Cengage. All Rights Reserved.
2.5b Business Strategy
 Business strategy is more focused on how the
company will compete against rival firms to
create value for customers.
 Companies can increase the value they offer
customers by decreasing the costs of their goods and
services (low-cost strategy) or by increasing the
benefits their products provide (differentiation
strategy).
Copyright ©2019 Cengage. All Rights Reserved.
Discussion Starter #3
 Explain the difference between a firm’s
corporate strategy and business strategy.
 Why do firms need to look at both aspects?
Copyright ©2019 Cengage. All Rights Reserved.
2.6 Step Five:
Executing a Firm’s Strategy
 Execution is the process of combining the
elements of human capital (alignment and
ability) and organizational capital (agility and
architecture).
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.12: The 4As Framework
of Execution Capability
Copyright ©2019 Cengage. All Rights Reserved.
2.6a HR’s Role in Strategy Execution
Remaining Agile
 HR agility can be achieved in two primary ways:
1. Coordination agility – The ability to rapidly reallocate resources to new
and changing needs
2. Resource agility – Having resources that can be used in different ways
and people who can perform different functions in different ways
Reconciling Supply and Demand
 Part of remaining agile includes reconciling the firm’s demand for its
products with its supply of employees.
 Demand considerations are based on forecasted trends in business
activity.
 Supply considerations involve determining where and how candidates
with the required qualifications can be found to fill a firm’s vacancies.
Copyright ©2019 Cengage. All Rights Reserved.
2.7 Step Six: Evaluation
 To evaluate their performance, firms need to
establish a set of “desired” objectives as well as
the metrics they will use to monitor how well
their organizations delivered against those
objectives.
 The objectives can include achieving a certain level of
production, revenue, profit, market share, market
penetration, customer satisfaction, and so forth.
Copyright ©2019 Cengage. All Rights Reserved.
2.7a Evaluating a Firm’s
Strategic Alignment
 HR policies and practices need to achieve two types of
fit:
1. Vertical fit/alignment – Focuses on the connection between the
business’s objectives and the major initiatives undertaken by HR
2. Horizontal fit/alignment – Focuses on ensuring that the
business’s HR practices are all aligned with one another
internally to establish a configuration that is mutually reinforcing
 Balanced scorecard (BSC) – A measurement
framework that helps managers translate strategic goals
into operational objectives
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.13: Assessing Horizontal Fit
Copyright ©2019 Cengage. All Rights Reserved.
Figure 2.14:
Building the Metrics Model
Copyright ©2019 Cengage. All Rights Reserved.
Video Highlight #2
Robert S. Kaplan is the Marvin Bower Professor of
Leadership Development, Emeritus at the Harvard
Business School. In this video, Kaplan explains the
importance of using the balanced scorecard to
communicate a company’s strategy to its employees.
Kaplan uses examples of real-world companies in his
discussion.
“Communicating Strategy with the Balanced Scorecard”
Copyright ©2019 Cengage. All Rights Reserved.
Group Activity
To understand the important relationship between HR
functions and competitive advantage, divide into groups of
three and answer the following questions:
 Why are HR functions important?
 What do you understand from the term competitive
advantage?
 What is the relationship between HR functions and
competitive advantage?
 How can HR functions be used to gain competitive
advantage in a market? Cite examples.
Copyright ©2019 Cengage. All Rights Reserved.
Chapter 1
The Rewards
and Challenges
of Human
Resources
Management
Copyright ©2019 Cengage. All Rights Reserved.
Learning Outcomes
After studying this chapter, you should be able to
1. Explain how human resource managers and other managers can have
rewarding careers by helping their firms gain a sustainable competitive
advantage through the strategic utilization of people.
2. Explain how good human resource practices can help a firm’s globalization,
corporate social responsibility, and sustainability efforts.
3. Describe how technology can improve how people perform and how they
are managed.
4. Explain the dual goals HR managers have in terms of increasing
productivity and controlling costs.
5. Discuss how firms can leverage employee differences to their strategic
advantage and how educational and cultural changes in the workforce are
affecting how human resource managers engage employees.
6. Provide examples of the role and competencies of today’s HR managers
and their relationship with other managers.
Copyright ©2019 Cengage. All Rights Reserved.
Discussion Starter #1
Ordering kiosks like this
one in a New York City
store are likely to
replace some workers.
Will technology eliminate the need for human
resource managers?
Copyright ©2019 Cengage. All Rights Reserved.
1.1 Why Should You Study Human
Resources Management? Will It Pay Off?
 Human resources management (HRM) – The
process of managing human talent to achieve an
organization’s objectives
 Importance:
 Managers play a key role in selecting, training,
motivating, appraising, and promoting employees.
 Great personnel help build a business.
 Understanding HRM can help you understand your
responsibilities and rights as an employee.
Copyright ©2019 Cengage. All Rights Reserved.
1.1a Human Capital and
Organizational Culture
 Human capital – The knowledge, skills, and capabilities
of individuals that have economic value to an
organization
 Human capital is intangible and cannot be managed the way
organizations manage jobs, products, and technologies.
 To build human capital in organizations, managers must continue
to develop superior knowledge, skills, and experience within their
workforces and retain and promote top performers.
 Organizational culture – The shared values, beliefs,
and assumptions people in an organization have
Copyright ©2019 Cengage. All Rights Reserved.
Figure 1.1: Overall Framework for
Human Resources Management
Copyright ©2019 Cengage. All Rights Reserved.
1.2a Responding Strategically to Changes
and Disruptions in the Marketplace (slide 1 of 2)
 Agility – A firm’s ability to make quick changes to gain a competitive
advantage
 HR managers cope with ever-changing business conditions by helping
redesign their firms to achieve agility.
Human Resource Managers and Business Strategies
 HR professionals can improve the top line by redesigning work to
foster innovation, by forecasting labor trends, by recruiting and
motivating employees, and by measuring their effectiveness.
 HR managers can also help their firms with business strategies, as
well as mergers, acquisitions, and ways to enter new and global
markets.
Copyright ©2019 Cengage. All Rights Reserved.
1.2a Responding Strategically to Changes
and Disruptions in the Marketplace (slide 2 of 2)
Human Resource Managers and Business Strategies (cont’d)
 Sometimes changing a firm’s strategy requires adjusting the labor
force.
 Downsizing – The planned elimination of jobs
 Outsourcing – Contracting outside the organization to have work done
that formerly was done by internal employees
 Offshoring – The business practice of sending jobs to other countries
 Strategic changes could be reactive or proactive.
 To provide knowledge on key business issues, companies:
 Assign HR representatives to their core business teams
 Rotate non-HR managers into HR positions and vice versa
Copyright ©2019 Cengage. All Rights Reserved.
1.2b Competing, Recruiting,
and Staffing Globally (slide 1 of 2)
 The integration of world economies and markets have led
companies to:
 Look for opportunities abroad
 Fend off foreign competitors domestically
 Search for the right employees
 Importing and exporting, partnerships, mergers, and acquisitions are
ways companies are preparing for globalization.
 The national identities of products are blurring.
 Numerous free-trade agreements forged between nations in the last
half century have helped quicken the pace of globalization.
 The General Agreement on Tariffs and Trade (GATT) paved the way for
the European Union and the North American Free Trade Agreement
(NAFTA).
Copyright ©2019 Cengage. All Rights Reserved.
1.2b Competing, Recruiting,
and Staffing Globally (slide 2 of 2)
How Globalization Affects HRM
 Issues:
 Dealing with better informed employees who are
willing to pursue global job opportunities
 Gauging the knowledge and skill base of workers
worldwide and figuring out how best to hire and train
them
 Relocating managers and training foreign managers
abroad to direct the efforts of an international
workforce
Copyright ©2019 Cengage. All Rights Reserved.
1.2c Setting and Achieving Corporate Social
Responsibility and Sustainability Goals
 Corporate social responsibility – The responsibility of the firm to
act in the best interests of the people and communities affected by
its activities
 Many firms have ethics codes, and some have appointed “chief ethics
officers.”
 Being ethical and socially responsible helps companies avoid lawsuits
and improve their earnings.
 Sustainability – Doing business in a way that does as little harm to
the environment and depletes as few natural resources as possible
 Achieving complete sustainability is nearly impossible, but companies
are making strides to reduce their “carbon footprints.”
 HR should spearhead the development and implementation of
corporate citizenship throughout their organizations.
Copyright ©2019 Cengage. All Rights Reserved.
Video Highlight #1
Today, many chefs are using their restaurants to push for
sustainability and for social change. Ben Shewry is one of
those chefs. Shewry, who owns the restaurant Attica in
Melbourne, Australia, is regarded among the best in the
world. Shewry has made his menu into an example of how
sustainable ingredients can be made delicious.
“A Sustainable Chef”
Copyright ©2019 Cengage. All Rights Reserved.
Discussion Starter #2
Name a company you hope to work for someday.
 What is its track record in terms of corporate
social responsibility and sustainability?
 Are these factors important to you? Why or why
not?
Copyright ©2019 Cengage. All Rights Reserved.
1.3 Technology Challenges (slide 1 of 4)
 Advancements in information technology have
enabled organizations to take advantage of the
information explosion.
 Computer networks
 “Cloud computing”
 Document-sharing platforms
 Videoconferencing
 Social media networking
Copyright ©2019 Cengage. All Rights Reserved.
1.3 Technology Challenges (slide 2 of 4)
From Touch Labor to Knowledge Workers
 Technology—and automation in particular—have
reduced the number of jobs that require tasks and little
skill and have increased the number of jobs that require
considerable skill.
 Knowledge workers – Workers whose responsibilities extend
beyond the physical execution of work to include planning,
decision-making, and problem-solving
 There has been an increase in knowledge-based training and
virtual learning.
Copyright ©2019 Cengage. All Rights Reserved.
1.3 Technology Challenges (slide 3 of 4)
Technology’s Effect on HRM
 Human resources information system (HRIS) – A
computerized system that provides current and accurate
HR-related data for purposes of control and decisionmaking
 Used to:




Automate payroll processing and administer benefits program
Access employee records
Recruit, screen, and pretest applicants online
Train, track, and promote employees
Copyright ©2019 Cengage. All Rights Reserved.
1.3 Technology Challenges (slide 4 of 4)
Technology’s Effect on HRM (cont’d)
 Big data – A buzzword that describes the massive amounts of data
available online and offline today that can be “crunched” to make
decisions
 Workforce (HR) analytics – The process of gathering and
analyzing data to improve a firm’s human resources management
 An HRIS should provide HR personnel with analytical information
that helps them to analyze, refine, and better implement a firm’s
strategic direction.
 Includes:
 Forecasting personnel needs
 Planning for career and employee promotions
 Evaluating the impact of the firm’s policies
Copyright ©2019 Cengage. All Rights Reserved.
1.4a Maximizing Productivity
 Productivity – “The output gained from a fixed
amount of inputs”
 Organizations can increase their productivity
either by reducing their inputs or by increasing
the amount that employees produce by adding
more human and/or physical capital to the
process.
 Additional productivity will have to come from
the enhanced ability of employees, their
motivation, and their work environment.
Copyright ©2019 Cengage. All Rights Reserved.
1.4b Managing the
Size of the Workforce
 Managing productivity involves matching the size of the workforce to
the firm’s demand requirements given technology, the firm’s
strategic direction, and global competition.
 To manage the size of the workforce, many companies are using:
 Offshoring
 Outsourcing
 Nearshoring – Occurs when a firm relocates jobs abroad to nations




closer to its domestic market
Homesharing – The practice of outsourcing work to domestic workers
who work out of their homes
Downsizing
Furloughing – A situation in which an organization asks or requires
employees to take time off for either no pay or reduced pay
Part-time or contract employees
Copyright ©2019 Cengage. All Rights Reserved.
1.4c Managing Pay and Benefits
 Companies are trying numerous approaches to manage
pay and benefits.
 Charging employees higher premiums to cover spouses
 Giving employees a set amount of money to purchase health
insurance on their own
 Employee leasing – The process of eliminating the jobs of
employees who are then hired by a leasing company and
contracting with that company to lease back the employees
 Hiring freelancers, part-time employees, independent
contractors, and consultants
Copyright ©2019 Cengage. All Rights Reserved.
1.5a Responding to the Demographic and
Diversity Challenges of the Workforce (slide 1 of 2)
 To forecast trends to support the strategies of
their organizations, HR managers frequently
analyze the capabilities of different demographic
groups and how well each is represented in fastand slow-growing occupations.
 The labor force participation rate—the number of
people employed or actively looking for work—is
declining in the United States, and is predicted
to continue to fall due to declining birth rates and
the aging U.S. population.
Copyright ©2019 Cengage. All Rights Reserved.
Figure 1.2: U.S. Labor Force
Participation Rates over Time
Copyright ©2019 Cengage. All Rights Reserved.
1.5a Responding to the Demographic and
Diversity Challenges of the Workforce (slide 2 of 2)
Ethnic and Racial Diversity in the Workforce
 U.S. workers are becoming more diverse.
Age Distribution of the Workforce
 Many babyboomers (individuals born between 1946 and 1964) are
remaining in the labor force due to advances in medicine that keep
them healthier, an increase in the official retirement age (from 65 to
67), and economic factors.
Gender Distribution of the Workforce
 The number of women joining the U.S. labor force has tapered off
some in recent years and is expected to continue to do so.
Copyright ©2019 Cengage. All Rights Reserved.
Figure 1.3: Labor Force Participation Rates of Workers
of Hispanic Origin versus Non-Hispanic Origin
Copyright ©2019 Cengage. All Rights Reserved.
Figure 1.4: Labor Force Participation Rates of
Workers in the Labor Force by Their Ages
Copyright ©2019 Cengage. All Rights Reserved.
Figure 1.5: Labor Force
Participation Rates by Gender
Copyright ©2019 Cengage. All Rights Reserved.
Video Highlight #2
In this video, Beth Brooke, Ernst & Young’s global
sponsor for Diversity and Inclusiveness, discusses
the state of women in the workforce and as global
consumers.
“Women as an Emerging Powerhouse”
Copyright ©2019 Cengage. All Rights Reserved.
1.5b Educational Shifts
Affecting the Workforce
 The educational attainment of the U.S. labor
force has risen dramatically.
 Challenges:
 American students are said to lag behind in math and
science test scores.
 American adults score low on literacy, math, and
computer skills tests.
 HR managers have to find strategies to help
their firms compete, despite these challenges.
Copyright ©2019 Cengage. All Rights Reserved.
Figure 1.6: Earnings and Unemployment Rates
of Full-Time U.S. Workers by Education
Copyright ©2019 Cengage. All Rights Reserved.
1.5c Adapting to Cultural and Societal
Changes Affecting the Workforce (slide 1 of 4)
Changing Employee Rights
 Laws affecting employee rights are continually
changing.
 Equal employment opportunities
 Union representation
 A safe and healthy work environment
 Unemployment and health care benefits
 Regulation of pension plans
 Equal pay for equal work
Copyright ©2019 Cengage. All Rights Reserved.
1.5c Adapting to Cultural and Societal
Changes Affecting the Workforce (slide 2 of 4)
Privacy Concerns of Employees
 Employers are:
 Implementing privacy policies
 Limiting the use of social security numbers on employment forms
 Restricting access to employee files
 Conducting background checks on employees
 Contracting with outside firms that specialize in identity theft to
prevent the abuse of employee information
 Using the global positioning system (GPS) and smartphone
applications to monitor employees
 Scrutinizing information employees post on the Web and social
media
Copyright ©2019 Cengage. All Rights Reserved.
1.5c Adapting to Cultural and Societal
Changes Affecting the Workforce (slide 3 of 4)
Changing Attitudes Toward Work and How They Relate to
Employee Engagement
 Many employees, especially younger ones, believe satisfaction in
life is more likely to result from balancing their work challenges and
rewards with those in their personal lives.
 Employees today are focused on finding interesting work and are
more inclined to pursue multiple careers.
 Employee engagement – The extent to which employees are
enthused about their work and committed to it
 A growing number of firms are focusing on how employee engagement
can be achieved.
Copyright ©2019 Cengage. All Rights Reserved.
1.5c Adapting to Cultural and Societal
Changes Affecting the Workforce (slide 4 of 4)
Balancing Work and Family
 Employees are working more hours than they have at
any time since 1973.
 Competitive organizations are finding it advantageous to
provide employees with more family-friendly options,
such as telecommuting, flexible work hours, day care,
elder care, job sharing, and assistance with family
problems.
 Companies with programs such as these calculate that accommodating
their employees’ individual needs and circumstances is a powerful way
to attract and retain top-caliber people.
Copyright ©2019 Cengage. All Rights Reserved.
Discussion Starter #3
What are the pros and cons of having a more
diverse workforce? Is the United States in a better
position to compete globally because of its diverse
population?
Copyright ©2019 Cengage. All Rights Reserved.
1.6 The Role HR Managers Play and Their
Partnership with Other Managers
 By staying abreast of workforce trends and developments and
gathering and analyzing data, HR managers help their firms choose
the best strategies for competing globally, selecting ideal HR
systems, maximizing productivity, and managing benefits.
 Line managers – Non-HR managers who are responsible for
overseeing the work of other employees
 Successful organizations combine the experience of line managers with
the expertise of HR managers to develop and utilize the talents of
employees to their greatest potential.
 There are different types of HR managers that specialize in different
functions.
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Figure 1.7: Positions in HR and
Their Median Annual Wages
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1.6a Responsibilities of
Human Resource Managers
 The major activities for which HR managers are
typically responsible include:
 Strategic advice and counsel
 Service
 Policy formulation and implementation
 Employee advocacy
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Figure 1.8: Human Resource
Competency Model
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Group Activity
Step 1: Split into groups and select a company to
which you would consider applying.
Step 2: Make an assessment of the HR policies of
the company. Consider these policies as the
criteria for either joining the company or deciding
against it.
Step 3: Report to the classroom on the perceived
sense of the “health” of the HR policies of the
company and whether you would recommend it as
a place to work.
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