CHAPTER 1 Managing Human Resources

Chapter 1
Opening Case: Managing Human Resources at Google
Since being founded in 1998 by two peope wit! no empoyees" t!e firm now !as
o#er $%"&&& empoyees and wort! 1%& biion' T!e firm(s success owes muc! to
its effecti#e management of !uman resources and its retention of capabe
peope' T!e t!ings t!at )ooge !as done to manage !uman resources effecti#ey
incude carefu panning regarding HR needs o#er time" finding" training and
de#eoping t!e #ery best empoyees" pro#iding opportunities for empoyees to
create and inno#ate" treating t!e empoyees t!e way t!ey want empoyees to
treat t!e customers" and !oding managers responsibe for empoyee
performance' As a resut" empoyees !a#e stayed wit! )ooge because t!e
corporate cuture is buit on integrity and trust" empoyees fee t!at t!e company
is !onest and et!ica" and t!ey are gi#en t!e opportunity to create and be
Human resources are assets t!at re*uire sound management if t!e
organi+ation is to remain competiti#e in t!e future' ,-rainpower. industries"
usuay !ea#iy based on tec!noogy" continue to grow and dominate t!e
economy' Attracting and retaining superior !uman taent is increasingy
important for a organi+ations/business and non0business ai1e'
A" Satis$%ing Multiple Sta&ehol'ers
Sta1e!oders are indi#iduas or groups t!at !a#e interests" rig!ts" or
owners!ip in an organi+ation and its acti#ities' Customers" suppiers"
empoyees" and strategic partners are e2ampes of sta1e!oder groups
3see E2!ibit 1'14' Eac! sta1e!oder group stands to benefit from a
company(s successes and be !armed by its faiures and mista1es' T!e
organi+ation !as an interest in maintaining t!e wefare of t!ese
sta1e!oder groups in order to furt!er its own we0being'
Some sta1e!oder groups may be more important to a gi#en organi+ation
t!an ot!ers' Customers" empoyees" s!are!oders" and society are
important or primary sta1e!oders for most American companies'
(" O)ners an' In*estors
Most owners and in#estors in#est t!eir money in companies for financia
reasons5to preser#e or grow t!eir capita' T!e 6ob of institutiona
CHAPTER 1 Managing Human Resources
in#estors" w!ic! is to ma1e money by c!oosing companies to in#estment
in" !as become increasingy compe2 as difficut to measure assets !a#e
become more important' Tangible assets are relatively easy to measure
and include such assets as inventory, equipment, real estate, and financial
assets' 7ntangibe !uman assets are comparatively social in nature and
include such organizational characteristics as an employer-of-choice
reputation, the depth of employee talent and loyalty, and the ability to
innovate and change'
7ntangibe assets affect an organi+ation(s bottom ine t!roug! compe2
c!ains of causes and effects' T!e cause0and0effect c!ain begins wit! an
approac! to managing !uman resources t!at attracts taented empoyees
and ensures t!at t!ey fee we treated' T!e #aue of t!e firm(s approac! to
managing !uman resources e#entuay s!ows in t!e company(s bottom
Some organi+ations !a#e ony intangibe !uman assets' Companies t!at
pay attention to !uman resources are fa#ored by initia in#estors and
sur#i#e onger' Accountants find it difficut to set monetary #aues for
!uman resources' Howe#er companies t!at manage !uman resources
we can more t!an doube s!are!oder returns" increase profitabiity" saes
per empoyee" mar1et #aue" and earnings per s!are' T!e importance of
intangibe !uman assets suc! as reputation" empoyee taent and oyaty"
inno#ation and c!ange" are being increasingy recogni+ed by in#estors'
Returns for firms on 8ortune(s ist of ,1&& -est Companies to 9or1 for in
America. in 198: were twice t!ose in t!e Russe ;&&& inde2 of
comparabe companies'
Teaching Note: CALPERS, the group that controls the California state
employees’ pension fund, is an etremely acti!e and influential
organi"ation, and has #een responsi#le for the ouster of some chief
Teaching Note: Analytical %raphics, &nc$ 'as named the ())* +,est Small
Company to -or. for in America/ #y 0ortune 1aga"ine, in part #ecause of
the 23)))4employee per.s it annually spends on such things as free
caterer5prepared #rea.fasts, lunches and dinners6 an eercise gym, and
discount #all game tic.ets$ Company eecuti!es state that they more than
ma.e up for these ependitures through increased producti!ity and
reduced turno!er$
C" Customers
Cisco Systems" Ama+on'com" and many ot!er firms !a#e found t!at
impro#ing customer satisfaction by creating new products" reducing costs
and impro#ing *uaity is a primary means t!roug! w!ic! !uman resource
management practices affect success' T!ere is a direct reations!ip
CHAPTER 1 Managing Human Resources
between !ow companies manage t!eir empoyees and customer
Sa1s 8ift! A#enue is an e2ampe of a company t!at gi#es e2ceent
customer ser#ice' <sing empoyee sur#eys" t!ey found a direct
correation between empoyee engagement and customer satisfaction"
customer oyaty and saes'
+" Societ%
T!e concerns of t!e owners of businesses may be different from society in
genera' At!oug! economists argue t!at t!e primary obigation of
management is to ma2imi+e s!are!oders( profits" a#erage Americans
beie#e t!at firms aso !a#e an obigation to society in genera' Sociay
responsibe organi+ations are more attracti#e to potentia empoyees and
do not 6ust obey t!e etter of t!e aw" but see1 to !a#e a positi#e impact on
1" !egal Compliance
8orma aws" reguation by go#ernment agencies" and" for companies
operating outside t!e <nited States" empoyment aws in ot!er
countries a affect !ow !uman resources are managed' T!roug!
compiance" companies estabis! t!eir egitimacy and gain community
acceptance and support" t!us en!ancing t!eir c!ances for ong0term
sur#i#a' Many different aws" reguations" and court decisions affecting
!uman resource management are described t!roug!out t!is boo1"
beginning wit! an o#er#iew in C!apter ;'
," Communit% Relations
Effecti#e companies respond to community e2pectations far beyond"
and often muc! earier" t!an t!e forma codification of t!ose
e2pectations t!at ta1es pace t!roug! t!e enactment of aws' -eing
proacti#e" rat!er t!an reacti#e" is t!e 1ey !ere' A commitment to
community in#o#ement and de#eopment can !a#e ma6or impications
for !uman resource management' T!e need for #ounteer abor is
often an important dimension w!ic! companies can pro#ide for t!eir
oca community' <PS is one e2ampe of a company t!at is sociay
responsi#e' T!e impications for !uman resource management"
incuding t!e foowing=
• T!e type of empoyees t!e company c!ooses to !ire'
• T!e criteria used to e#auate t!eir performance'
 T!e sc!eduing and coordination of acti#ities wit!in wor1 units'
• Compensation poicies for empoyees doing community ser#ice'
CHAPTER 1 Managing Human Resources
Teaching Note: 1any companies gi!e #ac. to society 'hen they are doing
'ell, #ut often these types of acti!ities are the first to #e dropped 'hen the
company is struggling$ -hole 0oods is a company that is en!ironmentally
E" Other Organi-ations
Companies are becoming more and more interdependent on ot!er
organi+ations for t!eir ong0term success' )i#en t!is" ot!er organi+ations
are often ma6or sta1e!oders for an organi+ation'
1" Suppliers
Suppiers pro#ide resources 3e'g'" materias" e*uipment" information"
peope4 a firm needs to conduct business'
," Unions
<nions represent t!e empoyees of a company in negotiating wit!
management regarding issues suc! as compensation and benefits and
wor1ing conditions' T!e trend in recent years !as been toward a more
coaborati#e reations!ip between unions and empoyers' Howe#er"
t!e stri1es and wor1 disruptions associated wit! abor disputes sti
!a#e t!e potentia to crippe unioni+ed companies and companies in
reated industries'
." Alliance Partners
Cooperati#e reations!ips wit! ot!er firms or 6oint #entures can !ep
one or more organi+ations to better ac!ie#e t!eir ong0term ob6ecti#es'
Aiances between firms may be formed to infuence go#ernment
action" to coaborate on researc! and de#eopment'
#" Organi-ational Mem/ers 0he Emplo%ees1
T!is group incudes a empoyees5top management" managers and
super#isors" speciaists" ine empoyees" part0timers" and so on'
Empoyees !a#e a #ariety of concerns t!at incude pay and benefits"
*uaity of wor1 ife" and empoyabiity'
1" Pa% an' (ene$its
Empoyees not ony want to be paid we t!ey want to be paid fairy' 8or
e2ampe" a nationa sur#ey of >&"&&& women re#eaed t!at many fee
t!eir empoyer is not i#ing up to t!e spirit of t!e principe of e*ua pay
for e*ua wor1' Secure and affordabe !eat! insurance" paid sic1
ea#e" and assured pension and retirement benefits were amost as
important to t!e respondents on t!is sur#ey' Per!aps surprisingy"
c!id0care was consideraby ess important t!an t!ese ot!er concerns'
CHAPTER 1 Managing Human Resources
Progressi#e companies monitor and respond to empoyee concerns'
CHAPTER 1 Managing Human Resources
," 2ualit% o$ 3or& !i$e
Empoyees want to earn a good i#ing and t!ey aso want to en6oy a
good *uaity of ife on t!e 6ob' Suc! aspects of !uman resource
management t!at contribute to a good *uaity of wor1ing ife are t!e
• training and de#eopment opportunities
• 6ob design t!at aows empoyees to use
t!eir 1nowedge and s1is
• management practices t!at gi#e
empoyees responsibiity for important decisions
• seection and promotion systems t!at
assure fair and e*uitabe treatment
• safe and !eat!y p!ysica and
psyc!oogica en#ironments
• wor1 organi+ed around teams
Suc! practices increase empoyee commitment" satisfaction" and
feeings of empowerment" w!ic! in turn increase customer satisfaction'
Hig!er returns on saes and in#estments tend to foow'
." Emplo%a/ilit%
T!e rapidy c!anging en#ironment in w!ic! companies must compete
today !as increased empoyee uncertainty" insecurity and an2iety'
At!oug! empoyees are no onger surprised w!en downsi+ing or
ayoffs occur" security is sti an issue for t!em' 7n t!e new economy"
empoyers wi focus more on ac!ie#ing empoyment security 3i'e'"
!eping empoyees to de#eop t!e 1nowedge and s1is needed to
remain empoyed4 rat!er t!an on 6ob security' Empoyment security
can aso be en!anced t!roug! t!e pro#ision of outpacement
assistance as part of se#erance pac1ages offered to aid0off wor1ers'
Teaching Note: The implicit employment contract #et'een firms and
employees has #een changing o!er the past fe' decades$ &n the past,
employees often #elie!ed that they 'ould remain 'ith the same company
fore!er, no' the a!erage ' 'ill change 7o#s more than 3 times$ 8o'
many of your students ha!e changed 7o#s9 0or 'hat reasons9 8a!e they
noticed a change 'ithin their o'n company :if they ha!e #een '
there for a long time;9
G" Creating 3in43in Situations
At!oug! t!e interests of sta1e!oder groups can #ary" t!ey often !a#e
s!ared interests as we' Managers are earning t!at a company(s !uman
resource practices can potentiay create synergies between 1ey
sta1e!oders' 7n many cases" effecti#e !uman resource practices can
CHAPTER 1 Managing Human Resources
create win0win soutions for mutipe sta1e!oders in organi+ations'
CHAPTER 1 Managing Human Resources
A company !as competiti#e ad#antage w!en its customers prefer its products
and?or ser#ices o#er t!ose of its competitors in t!e mar1etpace' Human
resources can be used to ac!ie#e and sustain competiti#e ad#antage in a
number of different ways'
A" Emplo%ees 3ho Are a Source o$ A''e' 5alue
Empoyees add #aue by using t!eir s1is and 1nowedge to transform
ot!er resources to produce products and ser#ices t!at impro#e t!e bottom
ine' ,Core. empoyees are t!ose most cosey associated wit! acti#ities
t!at add #aue' @t!er support and staff empoyees support core
empoyees and !ep impro#e t!e organi+ation(s efficiency' To ma2imi+e
#aue" t!e organi+ation must be staffed wit! t!e rig!t empoyees doing t!e
rig!t t!ings at t!e rig!t time under t!e rig!t conditions'
(" Emplo%ees 3ho Are Rare
7f a of its competitors can successfuy access t!e same poo of !uman
taent as a gi#en organi+ation" t!ere is no ad#antage for t!at organi+ation'
-y being an ,empoyer of c!oice. an organi+ation can gain access to t!e
best a#aiabe taent' Put anot!er way" ,t!e best get t!e best'. T!ere are
many popuar pubications purporting to ist t!e ,best paces to wor1. and
empoyees read t!ese pubications' 9ord of mout! is aso important in
de#eoping a reputation as being a good pace to wor1' 9!en a arge
number of appicants turns up in proportion to a#aiabe openings t!e
empoyer can !ire wor1ers w!o are muc! more producti#e t!an t!ose at
ot!er firms' Aincon Eectric and -M9" referred to in t!e te2t" are
Teaching Note: Top management teams ha!e #een pro!en to #e a source
of sustained competiti!e ad!antage$ 0or eample, e!en though <ac. -elch
of %E pu#lished #oo.s a#out his management style, other companies 'ere
una#le to duplicate his success$
C" A Culture that Can6t /e Copie'
A company cuture t!at is easiy dupicated by competitors offers itte
ad#antage' <suay" t!e most difficut cutures to copy are t!ose t!at !a#e
e#o#ed o#er time to suit t!e specific needs of t!e organi+ation' Sout!west
Airines 3S9A4 and 8edE2 are two e2ampes' At S9A" empoyees
understand t!e company(s strategy and do e#eryt!ing possibe to ac!ie#e
company success' At 8edE2" t!e company formuated a p!iosop!y of
managing peope based upon si2 cornerstones=
• no ayoffs
• fair treatment
CHAPTER 1 Managing Human Resources
• sur#ey" feedbac1" action
• promotion from wit!in
• profit s!aring
• an open0door poicy
Company cutures at companies i1e S9A and 8edE2 are often difficut for
outsiders to understand" et aone copy'
Teac!ing Bote= American Airines" w!en faced financia difficuties"
decided to benc!mar1 S9A in an effort to turn t!e company around' T!ey
found t!ey were unabe to dupicate S9A(s cuture" and abandoned t!ose
Human resources are a of t!e peope w!o currenty contribute to doing t!e
wor1 of t!e organi+ation" as we as t!ose peope w!o potentiay coud
contribute in t!e future" and t!ose w!o !a#e contributed in t!e recent past'
T!e best companies understand managing !uman resources effecti#ey
re*uires a ong0term perspecti#e t!at is responsi#e not ony to current
empoyees" but to potentia future empoyees and t!ose w!o !a#e recenty
eft t!e organi+ation' E2!ibit 1'$ presents an o#era framewor1 t!at identifies
t!e #arious HR acti#ities 3e'g'" ensuring fairness and ega compiance"
compensating empoyees4 and !ow t!ey are reated to a arger organi+ationa
en#ironment 3e'g'" eaders!ip" strategy" structure4 and e2terna en#ironment
3e'g'" economic and poitica trends" aws and reguations4 in t!e satisfaction
of sta1e!oder needs 3e'g'" *uaity" financia returns" ong0term empoyabiity4'
A 1ey point t!at is iustrated by t!is mode is t!at HRM does not occur in a
A" he Importance o$ the E8ternal an' Organi-ational En*ironments
1" he E8ternal En*ironment in w!ic! organi+ations function and
compete incudes abor mar1ets" industry dynamics and economic
conditions' T!ese factors re*uire organi+ations to adapt t!eir
approac! to managing !uman resources to a compe2 array of cutura"
ega and poitica differences w!ic! are especiay important in goba
," he Organi-ational En*ironment
T!e organi+ationa en#ironment can aso infuence HRM acti#ities'
C!aracteristics suc! as eaders!ip" company cuture" tec!noogy and
business strategy a s!ape !ow a firm manages its peope' T!e te2t
pro#ides an e2ampe of two companies in t!e same industry59a0
Mart and 9egman(s5wit! two different approac!es to HRM'
CHAPTER 1 Managing Human Resources
(" Acti*ities $or Managing Human Resources
HR acti#ities incude t!e forma HR poicies de#eoped by t!e company as
we as t!e actua way t!ese poicies are impemented' 9!en poices and
practices are not aigned" t!e company is ess t!an effecti#e' T!e HRM
acti#ities t!at companies need to understand incude=
1' HR Panning for Aignment and C!ange5aigning HR practices wit!
e2terna and organi+ationa en#ironments and wit! eac! ot!er 3see
C!apter > for more information4'
$' Cob Anaysis and Competency Modeing5aocating wor1 to 6obs
and identifying t!e empoyee competencies needed to perform
t!em 3see C!apter % for more information4'
;' Recruitment and Retaining Duaified Empoyees5attracting and
1eeping *uaified empoyees in t!e organi+ation 3see C!apter E for
more information4'
>' Seecting Empoyees to 8it t!e Cob and t!e @rgani+ation5sorting
and ran1ing appicants w!o fit t!e criteria of t!ey 6ob and t!e cuture
of t!e organi+ation 3see C!apter : for more information4'
%' Training and Fe#eoping a Competiti#e 9or1force5ensuring t!at
empoyees possess t!e 1nowedge and competencies needed to
be proficient in t!eir 6obs 3see c!apter 8 for more information4'
E' Conducting Performance Management5ensuring t!at empoyees
are performing t!eir 6obs at a satisfactory e#e and t!at t!ey
recei#e appropriate de#eopmenta feedbac1 and recognition 3see
C!apter 9 for more information4'
:' Fe#eoping an Approac! to Tota Compensation5pro#iding base
wages or saaries" incenti#e pay" and benefits for empoyees in
e2c!ange for t!eir performing wor1 for t!e organi+ation 3see
C!apter 1& for more information4'
8' <sing Performance0-ased Pay to Ac!ie#e Strategic @b6ecti#es5
in1ing monetary and non0monetary rewards wit! t!e performance
of empoyees in order to en!ance t!eir moti#ation and producti#ity
3see c!apter 11 for more information4'
9' Pro#iding -enefits and Ser#ices5Pro#iding incenti#es for
organi+ationa members!ip suc! as !eat! insurance and #arious
fe2ibe wor1 arrangements suc! as teecommuting 3see C!apter 1$
for more information4'
1&' Promoting 9or1pace Safety and Heat!5creating a wor1
en#ironment t!at minimi+es t!e ris1 of in6ury or disease 3see
C!apter 1; for more information4'
11' <nioni+ation and Coecti#e -argaining5de#eoping effecti#e
partners!ips wit! abor unions in order to ac!ie#e organi+ationa
ob6ecti#es and to ma2imi+e competiti#eness 3see C!apter 1> for
more information4'
CHAPTER 1 Managing Human Resources
7n successfu firms" managing !uman resources is done t!roug! partners!ip"
using t!e s1is and 1nowedge of ine managers" !uman resource
professionas" ot!er administrati#e staff" and a first0ine empoyees in e#ery
department' T!ese firms recogni+e t!at a company managers are
responsibe for managing peope' Bo singe department aone can effecti#ey
manage a company(s !uman resources' As a saying at Merc1 goes" ,!uman
resources are too important to be eft to t!e HR department'. T!is boo1 treats
managing HR as being s!ared by everyone in t!e organi+ation'
T!is ,HR Triad". as it is caed" must be a partners!ip in order for !uman
resource management acti#ities to effecti#e' T!e E2!ibit entited" ,T!e HR
Triad= Roes and Responsibiities for Managing Human Resources". pro#ides
a summary of w!at eac! of t!e t!ree payers must do to support t!is
A" !ine Managers Ha*e Al)a%s (een Responsi/le
T!e owner of a new" sma business must wear many !ats' Part of t!at
broad range of responsibiities incudes !a#ing necessary HR e2pertise"
e#en t!oug! no forma HR poicies may e2ist' As t!e business grows
ot!ers may be !ired 3or t!e duties may be contracted out4 but e#en t!en
not a HR responsibiities can e#er be ,isoated. as t!e soe domain of any
group or department in t!e organi+ation' T!is partners!ip may e#en
e2tend outside t!e organi+ation" consistent wit! t!e sta1e!oder mode in
E2!ibit 1'1' T!e utimate responsibiity rests wit! ine managers'
(" HR Pro$essionals Pro*i'e Special E8pertise
Peope wit! substantia speciai+ed and tec!nica 1nowedge of HR issues"
aws" poicies" and practices are referred to as HR professionals. A coege
degree in HR and?or accreditation from a professiona association may
indicate specia e2pertise in HR' See E2!ibit 1'; for t!e roes payed by
HR professionas'
1" 7e% HR Competencies
Researc! conducted at t!e <ni#ersity of Mic!igan -usiness Sc!oo
during t!e past two decades !as identified fi#e ma6or types of
competencies t!at HR professionas need to be effecti#e=
• Strategic understanding and contribution'
• Persona credibiity'
• HR dei#ery'
• -usiness acumen'
• HR tec!noogy'
CHAPTER 1 Managing Human Resources
A certification process by t!e Society for Human Resource
Management 3SHRM4 ensures t!at HR professionas !a#e t!e 1ey
competencies re*uired for t!eir positions'
," HR Competencies $or Glo/al #irms
As companies e2pand gobay" it is important t!at HR competencies
refect t!ese new goba responsibiities' At!oug! HR professionas
!a#e many of t!e same roes around t!e word" t!e specifics of w!at
t!ey do refect t!e cuture" aws and economy of eac! country' T!e
9ord 8ederation of Personne Management Associations 398PMA4
in1s toget!er professiona associations suc! as SHRM'
." Ethical (eha*ior
Et!ica organi+ations !a#e an edge in recruiting and retaining t!e best
empoyees w!ic! ensures t!e best wor1 force possibe to ac!ie#e t!e
firm(s ob6ecti#es' 9or1pace et!ics re*uires t!at peope be 6udged
soey on performance and t!e eimination of t!ings suc! as fa#oritism
and biases' HR professionas can encourage et!ica be!a#ior t!roug!
t!e design of t!e reward system" de#eoping standards and guideines"
and setting up !ot0ines'
Teaching Note: The classic eample is Arthur Anderson, the accounting
firm that had #een responsi#le for auditing Enron’s #oo.s$ =ne of the top
3 accounting firms at the time, it is no longer in eistence due to the
scandal resulting from Enron’s :and their; unethical #eha!ior$
HR professionas are guided by t!e HR profession(s code of et!ics
3see E2!ibit 1'> for t!e SHRM code of et!ics4' Specificay" t!ey are
e2pected to=
• t!oroug!y understand probems and underta1e w!ate#er
researc! is necessary to ensure continuing competence and
best professiona attentionG
• maintain !ig! standards of persona !onesty and integrityG
• gi#e t!oug!tfu consideration to t!e persona interest" wefare
and dignity of a empoyees t!ey affectG
• ma1e sure t!e organi+ations t!at represent t!em maintain a
!ig! regard and respect for t!e pubic interest'
C" Emplo%ees Share Responsi/ilit%
E#en non0speciaists s!are t!e HR responsibiity' Empoyees often write
t!eir own 6ob descriptions" for e2ampe' T!ey must assess t!eir own
needs and #aues" manage t!eir own careers" and pro#ide input for t!eir
own performance appraisas' @t!er e2ampes of t!is s!ared responsibiity
are summari+ed and compared in t!e HR Triad= Rues and
CHAPTER 1 Managing Human Resources
Responsibiities for Managing Human Resources e2!ibit'
A" Managing eams
Sur#eys re#ea t!at managers beie#e t!at teamwor1 is #ery important for
success as an organi+ation' E2!ibit 1'% ists some of t!e more common
reasons for using teams at wor1'
Teams must be managed to be effecti#e" !owe#er' <nproducti#e conficts
and turno#er are 6ust two of t!e counterproducti#e side effects t!at may
occur' Since t!e widespread use of teams is sti fairy new in t!e
American wor1pace" e2perimentation is sti t!e 1ey to finding successfu
ways of using teams' T!e use of HR practices to ma2imi+e team
effecti#eness is !ig!ig!ted t!roug!out t!is boo1'
(" Managing the Multicultural 3or&$orce
T!e issue of cutura di#ersity !as become increasingy important for
empoyers in recent years' Fifferent dimensions incude gender" et!nicity"
reigion" se2ua orientation" famiy?marriage status" and ot!er ife
e2periences' T!e increasing di#ersity of t!e wor1force" combined wit!
new attitudes about differences t!at may !a#e been ignored in t!e past
present bot! c!aenges and opportunities for HR' T!roug!out t!is boo1"
t!e feature caed Managing t!e Muticutura 9or1force describes !ow
effecti#e organi+ations use HR practices to e#erage empoyee
muticuturaism and create competiti#e ad#antage'
C" Managing Glo/ali-ation
@#er t!e past few decades more and more firms !a#e gone from being
stricty domestic to being truy goba' T!is e#oution generay ta1es t!ree
• E2port goods to 1 or $ foreign mar1ets
• Manufacture t!ose goods o#erseas
• Set up operations cose to foreign mar1ets
8or truy goba organi+ations" t!e c!aenge is determining an appropriate
HR approac! abroad' How we a company does t!is may determine its
success in t!e goba mar1et' 7ssues of !ow gobai+ation affects HR are
treated t!roug!out t!is boo1' Some are !ig!ig!ted in t!e Managing
Globalization feature'
Teaching Note: 1anaging epatriates is a ma7or 8R challenge$ 1any firms
are often reluctant to send 'omen on international assignments, although
research has sho'n that they tend to #e more successful than their male
CHAPTER 1 Managing Human Resources
counterparts, e!en in 1iddle East assignments$ Results from Ara#ic
countries indicate that they !ie' 'omen as foreigners first, 'omen
Teaching Note: -hat is the most common source of failure on an
international assignment9 0amily issues$
+" Managing Ethics an' Corporate Social Responsi/ilit%
@rgani+ations must de#eop and enforce a code of et!ics' HR
professionas can assist wit! t!ese efforts by de#eoping HR acti#ities t!at
encourage empoyees to do t!e rig!t t!ings5t!at is" to act in t!e best
interests of society and t!e company' Bew tec!noogies" aws" reguations
and c!ange in organi+ation structure a impact on et!ica practices'
Managers and empoyees must earn !ow to dea et!icay wit! day0to0day
conditions' Bot a agree on t!e e2tent to w!ic! corporate socia
responsibiity 3CSR4 is good for business 3note E2!ibit 1'E4 but it !as
become an important area of concern for HR professionas at many ma6or
E" Managing )ith Metrics
,7f you can(t measure it" it doesn(t e2istH.5HR professionas use a #ariety
of metrics to determine t!e #aue of t!eir contributions to t!eir
organi+ation(s success' 7n t!e foowing c!apters" descriptions of w!at
some HR professionas are doing wit! metrics appear in t!e feature caed
,Managing wit! Metrics'.
A" Social Me'ia
Socia media refers to a set of tec!noogies and communication c!annes
targeted at forming and enabing a potentiay massi#e community of
participants to producti#ey coaborate' 7t incudes 7T toos suc! as bogs"
tweets" etc' Some companies are using t!e media 3suc! as Twitter4 in
t!eir recruiting' @t!er uses incude management of goba teams'
(" Managing Comple8it% an' Uncertaint%
Compe2ity resuts from rapidy e#o#ing goba competition" constant
inno#ations in products and ser#ices" c!anging organi+ationa structure
and strategies" poitica and economic dynamics" and continuous
introduction of new tec!noogies' HR professionas must design"
impement and manage HR processes effecti#ey and efficienty to !ep
ot!er managers dea wit! t!e c!aenges of compe2ity'
CHAPTER 1 Managing Human Resources

1" 3hat has Google /een 'oing that 'emonstrates the *alue o$
managing human resources9 3h% 'o emplo%ees sta% )ith Google9

," Re$er to the list o$ sta&ehol'ers an' their o/:ecti*es in E8hi/it 1"1"
#or each sta&ehol'er group; state at least one additional concern that
%ou thin& might shape ho) organi-ations manage human resources"
hen; gi*e one speci$ic e8ample o$ ho) each sta&ehol'er6s concerns
coul' a$$ect a ma:or HR acti*it% 0e"g"; planning; recruitment;
compensation; training; sa$et% an' )ell4/eing or unioni-ation1"
." Gi*e some e8amples to illustrate the possi/le conse<uences that
occur )hen the 'ail% HR practices o$ managers are inconsistent )ith
the organi-ation6s $ormal HR policies"
=" 3hich mem/er o$ the HR ria' has the most responsi/ilit% $or
ensuring that organi-ations e$$ecti*el% manage their human resources9
E8plain %our ans)er"
>" 3h% are the themes o$ managing teams; managing multicultural
)or&$orce; managing glo/ali-ation; managing ethics an' CSR; an'
managing )ith metrics so important to'a%9 3hich o$ these challenges
are li&el% to increase in importance o*er the ne8t 'eca'e9 3h%9
1" 3ho are the primar% sta&ehol'ers o$ 7nights Apparel9
," #or each sta&ehol'er group; )hat are their ma:or concerns9
." +escri/e the &e% roles an' responsi/ilities o$ HR pro$essionals at 7night
=" +o %ou thin& this $actor% )ill succee' an' /ecome a mo'el $or
competitors; such as Ni&e an' A'i'as9 3h%; or )h% not9
CHAPTER 1 Managing Human Resources
1" 3hen Chris starte' #ruit Gu%s in 1@@A; his lea'ership <ualities
inclu'e' *ision; *alue an' a mission" 3h% )as that not enough to
pre*ent the pro/lems his $irm encountere' in ,BB19
," In the earl% perio' o$ his $irm; Chris reali-e' that he ha' traine'
someone to /ecome his competitor" Ho) 'i' that impact on his HR
." In selecting people $or his e8ecuti*e team; Chris see&s not onl%
<uali$ie' people /ut also those )ho he can trust to re$lect the compan%
culture" 3h% is that especiall% important in a compan% that is gro)ing
an' un'ergoing change9
=" Chris an' his sister ha*e gro)n their organi-ation internall% thus $ar"
#rom an HR perspecti*e; )oul' %ou recommen' gro)th through M CA 4
mergers an' ac<uisitions9