HRM201 Tutorial 1 (Solutions)

Group Activity
1. Laurie Siegel senior vice presi!ent o" #u$an resources "or Tyco
%nternational too& over #er 'o( in 200) 'ust a"ter nu$erous c#arges
"orce! t#e co$pany*s previous +oar! o" ,irectors an! top e-ecutives
to leave t#e "ir$. Hire! (y ne. /01 0!.ar! +reen Siegel #a! to
tac&le nu$erous !i""icult pro(le$s starting t#e $o$ent s#e
assu$e! o""ice. 2or e-a$ple s#e #a! to #elp #ire a ne.
$anage$ent tea$. S#e #a! to !o so$et#ing a(out .#at t#e outsi!e
.orl! vie.e! as a culture o" 3uestiona(le et#ics at #er co$pany.
An! s#e #a! to !o so$et#ing a(out t#e co$pany*s top $anage$ent
co$pensation plan .#ic# $any "elt contri(ute! to t#e allegations (y
so$e t#at t#e co$pany*s "or$er /01 #a! use! t#e co$pany as a
sort o" private ATM.
Siegel ca$e to Tyco a"ter a very i$pressive career. 2or e-a$ple s#e
#a! (een #ea! o" e-ecutive co$pensation at Allie! Signal an! .as a
gra!uate o" t#e Harvar! +usiness Sc#ool. +ut as strong as #er
(ac&groun! .as s#e o(viously #a! #er .or& cut out "or #er .#en
s#e too& t#e senior vice presi!ent o" HR position at Tyco.
4or&ing in groups use your $o(ile p#ones to con!uct an %nternet
searc# to ans.er t#e "ollo.ing 3uestions: 4#at #u$an resource
$anage$ent5relate! steps !i! Siegel ta&e to #elp get Tyco (ac& on
t#e rig#t trac&6 ,o you t#in& s#e too& t#e appropriate steps6 4#y
or .#y not6 4#at i" anyt#ing !o you suggest s#e !o no.? (LO 1.6;
AACSB: Analytic Skills & Using Information !c"nology; L!arning
O#tcom!: $!fin! %&' an( (!scri)! mo(!rn tr!n(s in t"! fi!l(*
yco+s to, !-!c#ti.!s/ (t"! C"airman0C"i!f 1-!c#ti.! as 2!ll as t"! C3O*
"a( )!!n acc#s!( of ,laying fast an( loos! 2it" cor,orat! acco#nting an(
of #sing t"! com,any+s coff!rs as ,!rsonal ,iggy )anks. U,on taking
offic!/ Br!!n fir!( t"! !ntir! )oar( of (ir!ctors an( t"!n (ismiss!( t"!
!ntir! "!a(4#art!rs staff of 156 ,!o,l!. %! r!cr#it!( a n!2/ com,l!t!ly
in(!,!n(!nt )oar( of (ir!ctors an( "ir!( a C3O/ an om)#(sman/ an( a
.ic! ,r!si(!nt of cor,orat! go.!rnanc!/ 2"o r!,orts (ir!ctly to t"! )oar(.
Br!!n+s (ir!cti.! to Si!g!l 2as t"at "!r first ,riority )! s!tting #,
cor,orat!7go.!rnanc! an( com,!nsation syst!ms an( controls/ t"!n to
transition 8to r!ally (ri.ing t"! tal!nt mac"in!.8 Si!g!l+s first st!, 2as to
(raft a strict com,any co(! of !t"ics. S"! t"!n arrang!( to "a.! it ta#g"t
sim#ltan!o#sly at a s,!cial !t"ics training (ay to !.!ry yco !m,loy!!.
S"! a(.is!( t"! com,!nsation committ!! on "o2 to r!,lac! yco+s ol(
salary an( )on#s ,olicy/ 2"ic" r!2ar(!( ac4#isition7)as!( com,any
gro2t". "! n!2 syst!m is )as!( on m!as#ra)l! com,any ,!rformanc!.
Bon#s!s an( r!strict!(7stock grants ar! link!( to o)9!cti.! m!as#r!m!nts/
incl#(ing !ac" )#sin!ss #nit+s !arnings )!for! int!r!st an( ta-!s/ an(
yco Int!rnational+s o.!rall ,!rformanc!. o, offic!rs ar! r!4#ir!( to "ol(
com,any stock 2ort" : to 1; tim!s t"!ir y!arly )as! salary. "!y m#st
"ol( <6 ,!rc!nt of t"!ir r!strict!( stock an( stock o,tions #ntil a minim#m
l!.!l "as )!!n r!ac"!(. A)o.! t"at l!.!l/ t"!y m#st "ol( 56 ,!rc!nt for at
l!ast t"r!! y!ars. S!.!ranc! ,ay is limit!( to t2o tim!s an in(i.i(#al+s
y!arly salary ,l#s )on#s. =ost7"an(s"ak! ,!rks/ lik! cons#lting contracts
an( fr!! trans,ortation in com,any aircraft/ "a.! )!!n a)olis"!(.
As a r!s#lt of t"! a)o.! st!,s/ yco is no2 aiming for "ig"!r marks in
!t"ics. It "as 2ritt!n an( circ#lat!( a m#lti7,ag! !t"ics ,olicy/ an( "ir!(
mor! t"an 1;; int!rnal a#(itors to !nforc! it. It "as a n!2 cor,orat!
om)#(sman to a((r!ss !m,loy!! conc!rns a)o#t !t"ics an( ,olici!s. All
of yco+s !m,loy!!s att!n(!( man(atory on!7(ay !t"ics s!minars/ an(
mor! (!tail!( ,rograms ar! in t"! 2orks for its 56/;;; manag!rs. In t"!
,ast/ t"! ,ractic! 2as to a2ar( "#g! )on#s!s to anyon! 2"o >som!"o2
(ro.! t"! n#m)!rs #,.? "! n!2 syst!m ass!ss!s "o2 2!ll manag!rs s!t
an( m!!t goals. As a r!s#lt/ yco+s )on#s )#(g!t for t"! fiscal y!ar 5;;:
2as r!(#c!( )y @A; million.
St#(!nts 2ill ,ro)a)ly agr!! t"at/ in g!n!ral/ Si!g!l took t"! a,,ro,riat!
st!,s/ an( t"! t#rnaro#n( an( r!co.!ry of yco+s financ!s/ ,rofits/ an(
stock ,ric!s ar! t!stimony to t"! !ff!cti.!n!ss of "!r a,,roac".
S#gg!stions for 2"at Si!g!l s"o#l( (o mo.ing for2ar( may incl#(!
contin#!( !t"ics training/ %& strat!gi!s/ an( scor!car(s t"at (ri.! t"!
a,,ro,riat! !m,loy!! )!"a.iors in s#,,ort of t"! )#sin!ss strat!gy.
,iscussion 7uestions
1. 0-plain .#at HR $anage$ent is an! #o. it relates to t#e
$anage$ent process. "!r! ar! fi.! )asic f#nctions t"at all manag!rs
,!rform: ,lanning/ organiBing/ staffing/ l!a(ing/ an( controlling. %&
manag!m!nt in.ol.!s t"! ,olici!s an( ,ractic!s n!!(!( to carry o#t t"!
staffing (or ,!o,l!* f#nction of manag!m!nt. %& manag!m!nt "!l,s t"!
manag!m!nt ,roc!ss to a.oi( mistak!s an( g!t r!s#lts. (LO 1.1; AACSB:
Comm#nication Skills; L!arning O#tcom!: $!fin! %&' an( (!scri)!
mo(!rn tr!n(s in t"! fi!l(*
2. Give e-a$ples o" #o. HR $anage$ent concepts an! tec#ni3ues can
(e o" use to all $anagers. %& manag!m!nt conc!,ts an( t!c"ni4#!s
can "!l, all manag!rs to !ns#r! t"at t"!y g!t r!s#lts C t"ro#g" ot"!rs.
"!s! conc!,ts an( t!c"ni4#!s also "!l, manag!rs a.oi( common
,!rsonn!l mistak!s s#c" as: "iring t"! 2rong ,!rson; !-,!ri!ncing "ig"
t#rno.!r; fin(ing yo#r ,!o,l! not (oing t"!ir )!st; 2asting tim! 2it"
#s!l!ss int!r.i!2s; facing la2s#its )!ca#s! of (iscriminatory actions;
r!c!i.ing citations #n(!r f!(!ral occ#,ational saf!ty la2s for #nsaf!
,ractic!s; "a.ing som! !m,loy!!s t"ink t"!ir salari!s ar! #nfair an(
in!4#ita)l! r!lati.! to ot"!rs in t"! organiBation; allo2ing a lack of training
to #n(!rmin! a (!,artm!nt+s !ff!cti.!n!ss/ an( committing any #nfair
la)or ,ractic!s. (LO 1.5; AACSB: Comm#nication Skills; L!arning
O#tcom!: $!fin! %&' an( (!scri)! mo(!rn tr!n(s in t"! fi!l(*
). %llustrate t#e HR responsi(ilities o" line an! sta"" $anagers. Lin!
manag!rs ar! som!on!Ds )oss; t"!y (ir!ct t"! 2ork of s#)or(inat!s in
,#rs#it of accom,lis"ing t"! organiBationDs )asic goals. Som! !-am,l!s
of t"! %& r!s,onsi)iliti!s of lin! manag!rs ar!: ,lacing t"! rig"t ,!rson on
t"! 9o); starting n!2 !m,loy!!s in t"! organiBation (ori!ntation*; training
!m,loy!!s for 9o)s t"at ar! n!2 to t"!m; im,ro.ing t"! 9o) ,!rformanc! of
!ac" ,!rson; gaining cr!ati.! coo,!ration an( (!.!lo,ing smoot" 2orking
r!lations"i,s; int!r,r!ting t"! com,any+s ,olici!s an( ,roc!(#r!s;
controlling la)or costs; (!.!lo,ing t"! a)iliti!s of !ac" ,!rson; cr!ating
an( maintaining (!,artm!nt moral!; an( ,rot!cting !m,loy!!s+ "!alt" an(
,"ysical con(itions. Staff manag!rs assist an( a(.is! lin! manag!rs in
accom,lis"ing t"!s! )asic goals. "!y (o/ "o2!.!r/ n!!( to 2ork in
,artn!rs"i, 2it" !ac" ot"!r to )! s#cc!ssf#l. Som! !-am,l!s of t"! %&
r!s,onsi)iliti!s of staff manag!rs incl#(! assistanc! in "iring/ training/
!.al#ating/ r!2ar(ing/ co#ns!ling/ ,romoting/ an( firing of !m,loy!!s/ an(
a(minist!ring .ario#s )!n!fits ,rograms. (LO 1.:; AACSB: Comm#nication
Skills; L!arning O#tcom!: $!fin! %&' an( (!scri)! mo(!rn tr!n(s in t"!
fi!l(*
8. 4#y is it i$portant "or a co$pany to $a&e its #u$an resources into
a co$petitive a!vantage6 Ho. can HR contri(ute to !oing t#is6
B#il(ing an( maintaining a com,!titi.! a(.antag! is 2"at allo2s a
com,any to )! s#cc!ssf#l/ r!main ,rofita)l!/ an( stay in )#sin!ss. %&
can mak! a critical contri)#tion to t"! com,!titi.! a(.antag! of a com,any
)y )#il(ing t"! organiBational climat! an( str#ct#r! t"at allo2s t"!
com,any to ta, into its s,!cial skills or cor! com,!t!nci!s an( ra,i(ly
r!s,on( to c#stom!rsD n!!(s an( com,!titorsD mo.!s. (LO 1.1; AACSB:
Comm#nication Skills; L!arning O#tcom!: $!fin! %&' an( (!scri)!
mo(!rn tr!n(s in t"! fi!l(*
9. T#in& o" so$e co$panies t#at you are "a$iliar .it# or t#at you:ve
rea! a(out .#ere you t#in& t#e #u$an resource $anagers #ave (een
success"ul in ;a!!ing value<. 4#at !o t#e HR $anagers !o to lea!
you to your conclusion6 St#(!nt ans2!r 2ill .ary )as!( on com,ani!s
c"os!n. (LO 1.6; AACSB: Analytic Skills; L!arning O#tcom!: $!fin! %&'
an( (!scri)! mo(!rn tr!n(s in t"! fi!l(*