Understanding Management 10th Edition Daft Solutions Manual

CHAPTER 9
MANAGING HUMAN RESOURCES AND DIVERSITY
CHAPTER OUTLINE
New Manager Self-Test: Getting the Right People on the Bus
I. The Strategic Role of HRM Is to Drive Organizational Performance
A. The Strategic Approach
B. Building Human Capital to Drive Performance
II. The Impact of Federal Legislation on HRM
III. The Changing Nature of Careers
A. The Changing Social Contract
B. Innovations in HRM
IV. Finding the Right People
A. Human Resource Planning
B. Recruiting
C. Selecting
V. Developing Talent
A. Training and Development
B. Performance Appraisal
VI. Maintaining an Effective Workforce
A. Compensation
B. Benefits
C. Rightsizing the Organization
D. Termination
E. Managing Diversity
VII. Diversity in the Workplace
A. Diversity in Corporate America
B. Diversity on a Global Scale
VIII. Managing Diversity
A. Diversity and Inclusion
B. Diversity of Perspective
C. Dividends of Workplace Diversity
IX. Factors Shaping Personal Bias
New Manager Self-Test: Valuing Workplace Diversity
A. Workplace Prejudice, Discrimination, and Stereotypes
B. Ethnocentrism
X. Factors Affecting Women’s Careers
A. The Glass Ceiling
B. Opt-Out Trend
C. The Female Advantage
D. Increasing Awareness of Sexual Harassment
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managing Human Resources and Diversity 
ANNOTATED LEARNING OUTCOMES

After studying this chapter, students should be able to:
1. Explain the strategic role of human resource management.
The term human resource management (HRM) refers to activities undertaken to attract an
effective workforce, develop the workforce to its potential, and maintain the workforce over the
long term. These goals take place within the larger organizational environment including
competitive strategy, federal legislation, and societal trends. The organization’s competitive
strategy may include mergers and acquisitions, downsizing to increase efficiency, international
operations, or the acquisition of automated production technology. These strategic decisions
determine the demand for skills and employees. The human resource strategy, in turn, must
include the correct employee makeup to implement the organization’s strategy.
2. Describe federal legislation and societal trends that influence human resource management.
Several federal laws have been passed to ensure equal employment opportunity (EEO). The
point of the laws is to stop discriminatory practices that are unfair to specific groups and to
define enforcement agencies for these laws. EEO legislation attempts to balance the pay given to
men and women; provide employment opportunities without regard to race, religion, national
origin, and sex; ensure fair treatment for employees of all ages; and avoid discrimination against
disabled individuals. More recent legislation pertains to illegal aliens.
3. Explain what the changing social contract between organizations and employees means for
workers and human resource managers.
Not since the advent of mass production and modern organizations has a redefinition of work
and career been so profound. Under the emerging social contract, each person must take care of
herself or himself. Particularly in learning organizations, everyone is expected to be a self-
motivated worker who has excellent interpersonal relationships and is continuously acquiring
new skills. Employees take more responsibility and control in their jobs, becoming partners in
business improvement rather than cogs in a machine. Organizations provide challenging work
assignments as well as information and resources to enable workers to continuously learn new
skills. HRM departments can help organizations develop a mix of training, career development
opportunities, compensation packages, and rewards and incentives. They can provide career
information and assessment, combined with career coaching to help employees determine new
career directions. The new social contract can benefit both employees and organizations.
4. Show how organizations determine their future staffing needs through human resource
planning.
Human resource planning is the forecasting of human resource needs and the projected matching
of individuals with expected vacancies. Human resource planning begins with several questions:
What new technologies are emerging, and how will these affect the work system? What is the
volume of the business likely to be in the next five to ten years? What is the turnover rate, and
how much, if any, is avoidable? By anticipating future HRM needs, the organization can prepare
itself to meet competitive challenges more effectively than organizations that react to problems
only as they arise.
5. Describe the tools managers use to recruit and select employees.
Recruiting involves practices that define the characteristics of applicants to whom selection
procedures are ultimately applied. Today, much of the recruiting is done via the Internet and
social media sites such as LinkedIn, Facebook, and Meetup. Many organizations use internal
recruiting, or promotion-from-within, policies to fill their higher-level positions. Internal
recruiting has several advantages because it is less costly; generates higher employee
commitment, development, and satisfaction; and offers opportunities for career advancement to
employees rather than outsiders. External recruiting is recruiting newcomers from outside the
organization. A variety of outside sources provide applicants, including online recruiting
services, advertising, state employment services, private employment agencies, job fairs, and
employee referrals. Referrals are one of the cheapest and most reliable methods of external
recruiting.
6. Describe the pervasive demographic changes occurring in the domestic and global
marketplace and how corporations are responding.
The importance of cultural diversity and employee attitudes that welcome cultural differences
will result from the inevitable changes taking place in the workplace, in our society, and in the
economic environment. These changes include globalization and the changing workforce. In the
past, the United States was a place where people of different national origins, ethnicities, races,
and religions came together and blended to resemble one another. Opportunities for
advancement were limited to those workers who fit easily into the mainstream of the larger
culture. Now organizations recognize that everyone is not the same and that the differences
people bring to the workplace are valuable. Companies are learning that these differences enable
them to compete globally and to acquire rich sources of new talent. Most organizations must
undertake conscious efforts to shift from a monoculture perspective to one of pluralism.
Management activities required for a culturally diverse workforce starts with top managers who
can help shape organizational values and employee mindsets about cultural differences. In
addition training programs can promote knowledge and acceptance of diverse cultures and
educate managers on valuing the differences.
7. Summarize the factors that affect women’s opportunities, including the glass ceiling, the opt-
out trend, and the female advantage.
The glass ceiling is an invisible barrier that separates women and minorities from top
management positions. They can look up through the ceiling and see top management, but
prevailing attitudes and stereotypes are invisible obstacles to their own advancement. Women
and minorities are often excluded from informal manager networks and don’t get access to the
type of general and line management experience required for moving to the top. Glass walls
serve as invisible barriers to important lateral movement within the organization.
Many women choose to get off the fast track long before they hit the glass ceiling. In this opt-
out trend, highly-educated, professional women are deciding that corporate success isn’t worth
the price in terms of reduced family and personal time. Some are opting out to be stay-at-home
moms, while others want to continue working, but just not in the kind of fast-paced, competitive,
aggressive environment that exists in most corporations. Critics argue that this is just another
way to blame women themselves for the dearth of female managers at higher levels.
Some people think women might actually be better managers, partly because of a more
collaborative, less hierarchical, relationship-oriented approach that is in tune with today’s global
and multicultural environment. As attitudes and values change with changing generations, the
qualities women seem to possess may lead to a gradual role reversal in organizations. Women of
all races and ethnic groups are outpacing men in earning bachelor’s and master’s degrees.
Overall, women’s participation in both the labor force and civic affairs has steadily increased
since the mid-1950s, while men’s participation has slowly but steadily declined.
LECTURE OUTLINE
NEW MANAGER SELF-TEST: GETTING THE RIGHT PEOPLE ON THE BUS
Most new managers are shocked at the large amount of time, effort, and skill required to recruit,
place, and retain the right people. The right people can make an organization great; the wrong
people can be catastrophic. This exercise helps students determine their expectations and beliefs
for handling the people part of their management jobs.
Human resource management refers to the design and application of formal systems in an
organization to ensure the effective and efficient use of human talent to accomplish
organizational goals. This term includes activities undertaken to attract, develop, and maintain
an effective workforce. HRM is equally important for government and nonprofit organizations.
Over the past decade, human resource management has shed its old “personnel” image and
gained recognition as a vital player in corporate strategy. Today, all managers need to be skilled
in the basics of human resource management.
I. THE STRATEGIC ROLE OF HRM IS TO DRIVE ORGANIZATIONAL PERFORMANCE
A. The Strategic Approach Exhibit 9.1, Exhibit 9.2
The strategic approach to human resource management recognizes three key elements. First,
all managers are involved in human resource management. Second, employees are viewed as
assets. In today’s brutally competitive business environment, how a company manages its
workforce may be the single most important factor in sustained competitive success. Third,
HRM is a matching process, integrating the organization’s strategy and goals with the correct
approach to managing human capital. Current strategic issues of particular concern to
managers include:
 right people to become more competitive on a global basis;

 right people for improving quality, innovation, and customer service;
 right people to retain after mergers, acquisitions, or downsizing; and
 right people to apply new information technology for e-business.
The three broad activities of HRM are to attract an effective workforce, develop the
workforce to its potential, and maintain the workforce over the long term. Achieving these
goals requires skills in planning, training, performance appraisal, wage and salary
administration, benefit programs, and termination techniques.
Discussion Question #2: Assume that it is the year 2027. In your company, central planning has
given way to frontline decision-making, and bureaucracy has given way to teamwork. Shop floor
workers use handheld devices and robots. A labor shortage currently affects many job openings,
and the few applicants you do attract lack skills to work in teams, make their own production
decisions, or use sophisticated technology. As vice president of HRM since 2013, what should
you have done to prepare for this situation?
NOTES________________________________________________________________________
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B. Building Human Capital to Drive Performance Exhibit 9.3
1. Human capital refers to the economic value of the combined knowledge, experience,
skills, and capabilities of employees. To build human capital, HRM develops
strategies for finding the best talent, enhancing their skills and knowledge with
training programs and opportunities for personal and professional development, and
providing compensation and benefits that support the sharing of knowledge and
appropriately reward people for their contributions to the organization.
II. THE IMPACT OF FEDERAL LEGISLATION ON HRM Exhibit 9.4
Several federal laws have been passed to insure equal employment opportunity (EEO). The
purpose of these laws is to stop discriminatory practices that are unfair to specific groups and
define enforcement agencies for these laws. EEO legislation attempts to balance the pay given to
men and women and provide employment opportunities without regard to race, religion, national
origin, sex, age, or disability. The Civil Rights Act of 1964 created the Equal Employment
Opportunity Commission (EEOC), the major agency involved with employment discrimination.
Discrimination occurs when some applicants are hired or promoted based on criteria that are not
job relevant. When discrimination is found, remedies include back pay and affirmative action.
Affirmative action requires an employer to take positive steps to guarantee equal employment
opportunities for people within protected groups. Failure to comply with EEO legislation can
result in substantial fines and penalties for employers.
One issue of growing concern is sexual harassment, which is a violation of Title VII of the Civil
Rights Act. The EEOC guidelines specify that behavior such as unwelcome advances, requests
for sexual favors, and other verbal and physical conduct of a sexual nature becomes sexual
harassment when submission to the conduct is tied to continued employment or advancement, or
when the behavior creates an intimidating, hostile, or offensive work environment.
III. THE CHANGING NATURE OF CAREERS
A. The Changing Social Contract Exhibit 9.5
1. In the old social contract, the employee contributed ability, education, loyalty, and
commitment in return for the company providing wages and benefits, work,
advancement, and training. Volatile changes in the environment have disrupted this
contract. Organizations have downsized, and careers no longer necessarily progress
up a vertical hierarchy.
2. The new social contract is based on the concept of employability rather than lifetime
employment. Individuals are responsible for developing their own skills and abilities,
understanding their employer’s business needs, and demonstrating their value to the
organization. The employer, in turn, invests in creative training and development
opportunities so that people will be more employable when the company no longer
needs them.
3. The new social contract can benefit both employees and organizations. However,
some companies take the new approach as an excuse to treat people as economic
factors to be used when needed and then let go. Studies have found lower employee
and firm performance and decreased commitment in companies where the interaction
between employer and employee is treated as an economic exchange rather than a
genuine human and social relationship.
B. Innovations in HRM
1. Branding the Company as an Employer of Choice
a. An employer brand is similar to a product brand except that rather than

promoting a specific product, its aim is to make the organization seem like a
highly desirable place to work.
b. Employer-branding campaigns are like marketing campaigns to “sell” the

company and attract the best job candidates. However, many large, well-known
companies are also using employer branding as companies fight for talent.
2. Using Temporary and Part-Time Employees
a. Data from the U.S Bureau of Labor Statistics suggest that perhaps up to 40
percent of American workers are contingent workers. People in these temporary
jobs do everything from data entry to becoming the interim CEO. Highly skilled
supertemps do mission-critical work.
b. For organizations, the primary goals are to access specialized skills for specific
projects, enabling the company to maintain flexibility and keep costs low.
c. Contingent workers are people who work for an organization, but not on a
permanent or full-time basis. This may include temporary placements, contracted
professionals, leased employees, or part-time workers.
d. Acqui-hiring has become common in the tech world. Established companies such
as Facebook, buy early-stage start-ups, often shutting them down, simply to
acquire their engineering talent.
NOTES________________________________________________________________________
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IV. FINDING THE RIGHT PEOPLE Exhibit 9.6
The first step in attracting a workforce is planning, predicting the need for new employees based
on the types of vacancies that exist. The second step is to communicate with potential
applicants; the third step is to select those with the best potential; finally, the new employee is
welcomed to the organization.
Underlying the organization’s effort to attract employees is a matching model, in which the
organization and the individual attempt to match the needs, interests, and values they offer each
other. Both the company and the employee are interested in finding a good match.
A. Human Resource Planning
1. Human resource planning is the forecasting of human resource needs and the
projected matching of individuals with expected job vacancies. Human resource
planning begins with several questions:
a. What new technologies are emerging, and how will they affect the work system?
b. What is the volume of business likely to be in the next 5 to 10 years?
c. What is the turnover rate, and how much, if any, is avoidable?
2. The responses to these questions are used to formulate specific questions pertaining to
HR activities, such as:
a. What types of engineers will we need, and how many?
b. How many administrative personnel will we need to support the additional

engineers?
c. Can we use temporary, part-time, or virtual workers to handle some tasks?
3. Answers to these questions help define the direction for the organization’s HRM
strategy.
B. Recruiting
Recruiting, sometimes referred to as talent acquisition, is defined as activities or

practices that define the characteristics of applicants to whom selection procedures are
applied. Many organizations use internal recruiting (promote-from-within) policies.

Internal recruiting is less costly, generates higher employee commitment, and offers
career advancement. External recruiting gains newcomers from advertising, state
employment services, online recruiting services, private employment agencies, job fairs,
and employee referrals.
1. Assessing Jobs. Basic building blocks of human resource management include

job analysis, job descriptions, and job specifications. Job analysis is a systematic
process of gathering and interpreting information about the essential duties, tasks,
responsibilities, and context of a job. A written job description is a clear and
concise summary of the specific tasks, duties, and responsibilities of a job. A job
specification outlines the knowledge, skills, education, physical abilities, and
other characteristics needed to adequately perform the job.
2. Realistic job previews. A realistic job preview (RJP) gives applicants all
pertinent and realistic information, positive and negative, about the job and the
organization. RJPs enhance employee satisfaction and reduce turnover, because
they facilitate matching individuals, jobs, and organizations.
3. Social Media. Today, much of the recruiting is done via the Internet and social
media sites such as LinkedIn, Facebook, and Meetup. In a 2012 survey of global
HR executives, 46 percent reported using social media to find good candidates.
Companies still use online recruiting methods, but the trend is towards more
targeted online recruiting.
4. Internships. An internship is an arrangement whereby an intern, usually a high

school or college student, exchanges free or low-cost labor for the opportunity to
explore whether a particular career is appealing. Internships are an increasingly
popular approach to recruiting because they provide a way to “test-drive” a
potential employee.
C. Selecting
In the selection process, employers assess applicants’ characteristics in an attempt to

determine the “fit” between the job and applicant characteristics. The most frequently
used selection devices are the application form, interview, employment test, and
assessment center.
1. Application Form. The application form is used to collect information about the
applicant’s education, previous job experience, and other background
characteristics. Employers should avoid questions that are irrelevant to job
success. Additionally, the application form should not ask questions that create
an adverse impact on protected groups.
2. Interview. The interview serves as a two-way communication channel that allows

both the organization and the applicant to collect information that would
otherwise be difficult to obtain. This selection technique is used in the hiring
process in almost every job category in nearly every organization, but it is not
generally a valid predictor of job performance, though it does have face validity
(i.e. it seems valid). This is another area in which employers can get into legal
trouble if they ask questions that violate EEO guidelines. Some organizations are
using panel interviews, in which the candidate meets with several interviewers
who take turns asking questions. Exhibit 9.7
 Structured interviews use a set of standardized questions that are asked of

every applicant so comparisons can easily be made. These may include
biographical interviews, which ask about the person’s previous life and work
experiences; behavioral interviews, which ask people to describe how they
have performed a certain task or handled a particular problem; and situational
interviews, which require people to describe how they might handle a
hypothetical situation.
 Nondirective interviews allow the applicant a great deal of freedom in

determining the course of the conversation, with the interviewer taking care
not to influence the person’s remarks.
 In addition, some firms are using offbeat approaches, also known as extreme
interviewing, to test job candidates’ ability to handle problems, cope with
change, think on their feet, and work well with others.
Discussion Question #3: Is it wise for managers to evaluate a promising candidate’s tweets or
postings on social networking sites as grounds for rejection before even interviewing him or her?
What might be some ethical and legal issues that managers should consider? Discuss.
NOTES________________________________________________________________________
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Exhibit 9.8
3. Employment Test. An employment test is a written or computer-based test
designed to measure particular attributes such as intelligence, aptitude, ability, or
personality. Many companies are particularly interested in personality inventories
that measure such characteristics as openness to learning, initiative, responsibility,
creativity, and emotional stability. Another unusual type of test, called a brain
teaser, is being used by companies that put a premium on innovativeness and
problem solving.
4. Online Checks. One of the newest ways of gauging whether a candidate is right
for the company is by seeing what the person has to say about him or herself on
blogs and social networking sites. HR managers may also search online for
criminal records, credit history, and other indications of the candidate’s honesty,
integrity, and stability. One way in which HR managers gauge an applicant’s
suitability for an open position is by checking what the applicant says on social
media sites. Maryland was the first state to pass a lawmaking it illegal to ask job
applicants for their social networking passwords.
V. DEVELOPING TALENT
A. Training and Development Exhibit 9.9
1. On-the-Job Training. Training and development is a planned effort by an

organization for employees to learn job-related behaviors. The most common method
of training is on-the-job training (OJT), in which an experienced employee “adopts”
a new employee to teach him or her how to perform job duties. Cross-training places
an employee in a new position for as short as a few hours or for as long as a year to
develop new skills and give the organization flexibility.
2. Social Learning. Social learning basically means learning informally from others by
using social media tools, including mobile technologies, social networking, wikis and
blogs, virtual games, and so forth. The majority of organizational learning occurs
through informal rather than formal channels, so managers are supporting the use of
social media technology for learning in day-to-day work. These tools allow people to
share information, access knowledge, find resources, and collaborate in a natural way.
3. Corporate Universities. A corporate university is an in-house training and

education facility that offers broad-based learning opportunities for employees—and
frequently for customers, suppliers, and strategic partners as well—throughout their
careers.
4. Promotion from Within. Promoting from within helps companies retain valuable
employees. This provides challenging assignments, prescribes new responsibilities,
and helps employees grow by expanding and developing their abilities.
B. Performance Appraisal
1. Performance appraisal is observing and assessing employee performance, recording

the assessment, and providing feedback to the employee. During performance
appraisal, skilled managers give feedback and praise concerning the acceptable
elements of the employee’s performance. Performance appraisal can also reward
high performers with merit pay, recognition, and other rewards.
a. Recent thinking is that linking performance appraisal to rewards has unintended

consequences, and that it should be ongoing rather than something that is done
once a year as part of a consideration of raises. HRM professionals concentrate
on the accurate assessment of performance and on training managers to use the
performance appraisal interview effectively.
2. Assessing Performance Accurately
a. To obtain an accurate performance rating, managers must acknowledge that jobs

are multidimensional and performance may be multidimensional as well. The
360-degree feedback is a process that uses multiple raters, including self-rating,
as a way to increase self-awareness of strengths and weaknesses and guide
employee development. Members of the appraisal group may include
supervisors, co-workers, and customers to provide appraisal of the employee from

a variety of perspectives.
b. Performance review ranking system is a method in which managers evaluate

direct reports relative to one another and categorizes each on a scale. These
systems rank employees according to their relative performance: 20 percent
would be placed in the top group of performers; 70 percent have to be ranked in
the middle; and 10 percent are ranked at the bottom. The bottom tier are given a
set period of time to improve their performance, and if they don’t improve, they
are fired. The advantages of this system include identifying the best and worst
performers, and creating and sustaining a high performance culture in which
people continuously improve. The disadvantages are that it may increase
cutthroat competition among employees, discourage collaboration and teamwork,
and potentially harm morale.
3. Performance Evaluation Errors Exhibit 9.10
a. Stereotyping occurs when a rater places an employee into a class or category

based on one or a few traits or characteristics.
b. Halo effect refers to giving an employee the same rating on all dimensions of the
job even if performance is good on some dimensions and not good on others.
c. The behaviorally anchored rating scale (BARS) is developed from critical

incidents pertaining to job performance and is designed to help raters avoid
performance evaluation errors. Each job performance scale is anchored with
specific behavioral statements that describe varying degrees of performance.
VI. MAINTAINING AN EFFECTIVE WORKFORCE
A. Compensation
1. Compensation refers to all monetary payments and all goods or commodities used in
lieu of money to reward employees. Developing an effective compensation system is
an important part of human resource management because it helps to attract and
retain talented workers. A company’s compensation system has an impact on
strategic performance. Human resource managers design the pay and benefit systems
to fit the company strategy and to provide compensation equity.
2. Wage and Salary Systems
a. Management’s strategy for the organization should be a critical determinant of the

features and operations of the pay system. Job-based pay links compensation to
the specific tasks that an employee performs. Skill-based pay systems encourage
employees to develop skills and competencies, making them more valuable to the
organization and more employable if they leave.
3. Compensation Equity
a. Good managers strive to maintain a sense of fairness and equity within the pay
structure to maintain employee morale. Job evaluation is the process of
determining the worth of jobs within the organization through an examination of
job content. The intent is to pay employees fairly. Wage and salary surveys
show what other organizations pay incumbents in jobs that match a sample of
“key” jobs selected by the organization.
4. Pay-for-Performance
a. Pay-for-performance, also called incentive pay, ties at least part of the

compensation to employee effort and performance through merit-based pay,
bonuses, team incentives, gainsharing or profit sharing. With pay-for-
performance, incentives are aligned with the behaviors needed to help the
organization achieve its strategic goals. However, recent years have shown the
potential dangers of misdirected pay-for-performance plans.
B. Benefits
1. The best human resource managers know a compensation package requires more than
money. Although salary is an important component, benefits are equally important.
Some benefits are required by law such as Social Security, unemployment
compensation, and worker’s compensation. One reason that benefits make up such a
large portion of the compensation package is that health care costs have been
increasing so quickly.
2. Other types of benefits, such as health insurance, vacations, or educational

reimbursement are not required by law but are provided by organizations to maintain
an effective workforce.
C. Rightsizing the Organization
1. Rightsizing, also called downsizing, refers to intentionally reducing the company’s

workforce to the point where the number of employees is deemed to be right for the
company’s current situation. The goal is to make the company stronger and more
competitive by aligning the size of the workforce with the company’s current needs.
2. Unless HRM departments carefully manage the rightsizing process, layoffs can lead
to decreased morale and performance. Managers can smooth the rightsizing process
by regularly communicating with employees and providing them with as much
information as possible. Managers can also use training and development to help
address the emotional needs of remaining employees.
D. Termination
1. Despite the best efforts of line managers and HRM professionals, the organization
will lose employees. Terminations are valuable in maintaining an effective workforce
in two ways.
a. Employees who are poor performers can be dismissed. Productive employees

often resent disruptive, low-performing employees who are allowed to stay with
the company and receive pay comparable to theirs.
b. Employers can use exit interviews as an inexpensive way to learn about pockets
of dissatisfaction within the organization and use that information to reduce future
turnover. An exit interview is an interview conducted with departing employees
to determine why they are leaving.
2. Enlightened companies try to find a smooth transition for departing employees. By

showing concern, the company communicates the value of human resources and helps
maintain a positive corporate culture.
E. Managing Diversity Exhibit 9.11
1. Leaders at most companies strive to avoid discriminatory policies and practices that
lead to lawsuits. In addition, many companies have learned that valuing and
supporting diverse employees pays off.
VII. DIVERSITY IN THE WORKPLACE
A. Diversity in Corporate America Exhibit 9.12, Exhibit 9.13
1. Managers are learning that the differences people bring to the workplace enable their
companies to compete globally and tap into rich sources of new talent. Moreover,
vast changes are occurring in today’s workplace and consumer base. The average
worker is older now, and many more women, people of color, and immigrants are
seeking job and advancement opportunities.
a. Unprecedented generational diversity. Today’s workforce is in a state of flux as a

blend of three generations (baby boomers, Gen-X, and Gen-Y) present new
management challenges.
b. Aging workers. Baby boomers are continuously bumping up the average age of
the workforce. While the number of workers between 25 and 45 years old is
expected to decline from 66.9 percent to 63.7 percent by 2020, the number of
baby boomers age 55 years and older will leap from 19.5 percent to 25.2 in the
same period.
c. Increased diversity. Foreign-born workers make up 16 percent of the U.S.

workforce and are most likely employed in service industries, such as food
preparation, cleaning, and maintenance. Of the total number of foreign-born
workers, nearly half are Hispanic and 23 percent are Asian.
d. More women workers. Today, women outnumber men in the workplace, and their
numbers are projected to grow slightly faster, at 7.4 percent compared to 6.3
percent for men.
2. The ability of organizations to manage diversity has not kept pace with these
demographic trends, thus creating a number of significant challenges for minority
workers and women. Corporations that truly value diversity will recognize pay
inequality and discrimination in the workplace and make progress toward eliminating
them.
B. Diversity on a Global Scale
Managers across the globe wrestle with many of the same diversity challenges as U.S.
managers, especially concerning the progression of women into upper management
positions. To boost the percentage of women on the corporate boards of European
countries, the European Union is studying whether to introduce quotas across the
continent. Japanese companies have an even greater struggle to bridge the gender gap on
corporate boards. Part of it relates to tepid economic growth and societal expectations.
The progression of women into executive positions continues to be slow in both U.S. and
global corporations, but innovative companies are initiating programs to boost women’s
advancement into higher levels of responsibility.
VIII. MANAGING DIVERSITY
A. Diversity and Inclusion Exhibit 9.14
1. Diversity is defined as all the ways in which employees differ. Many companies
once defined diversity in terms of race, age, gender, lifestyle, and disability. Today,
companies are embracing a more inclusive definition of diversity that recognizes a
spectrum of differences that influence how employees approach work, interact with
each other, derive satisfaction from their work, and define who they are as people in
the workplace.
2. Inclusion is the degree to which an employee feels like an esteemed member of a

group in which his or her uniqueness is highly appreciated. Inclusion creates a strong
sense of belonging where all people can have their voices heard and appreciated.
3. Managing diversity, a key management skill in today’s global economy, means

creating a climate in which the potential advantages of diversity for organizational or
group performance are maximized while the potential disadvantages are minimized.
B. Diversity of Perspective
1. Diversity of perspective is achieved when a manager creates a heterogeneous team

made up of individuals with diverse background and skill sets. By tapping into the
strengths of diversity, teams are more likely to experience higher efficiency, better
quality, less duplication of effort among team members, and increased innovation and
creativity.
C. Dividends of Workplace Diversity Exhibit 9.15
1. Corporations that build strong, diverse organizations reap numerous dividends,

including:
a. Better use of employee talent. Companies with the best talent are the ones with
the best competitive advantage.
b. Increased understanding of the marketplace. A diverse workforce is better able

to anticipate and respond to changing consumer needs.
c. Enhanced breadth of understanding in leadership positions. Diverse top

management teams tend to be less myopic in their perspectives.
d. Increased quality of team problem solving. Teams with diverse backgrounds

bring different perspectives to a discussion that result in more creative ideas and
solutions.
e. Reduced costs associated with high turnover, absenteeism, and lawsuits.

Companies that foster a diverse workforce reduce turnover, absenteeism, and the
risk of lawsuits.
IX. FACTORS SHAPING PERSONAL BIAS
NEW MANAGER SELF-TEST: VALUING WORKPLACE DIVERSITY
This exercise helps students understand their attitudes towards workplace diversity reflected in
their personal values.
A. Workplace Prejudice, Discrimination, and Stereotypes Exhibit 9.16
1. Prejudice is the tendency to view people who are different as being deficient.
Discrimination occurs when people act out their prejudicial attitudes toward other
people who are targets of their prejudice. Although blatant discrimination is not as
widespread as in the past, bias in the workplace often shows up in subtle ways. A
stereotype is a rigid, exaggerated, irrational belief associated with a particular group
of people. To be successful managing diversity, managers need to eliminate harmful
stereotypes from their thinking, shedding any biases that negatively affect the
workplace. Managers can learn to value differences, which means they recognize
cultural differences and see them with an appreciative attitude.
2. Stereotype threat describes the psychological experience of a person who, usually

engaged in a task, is aware of a stereotype about his or her identity group suggesting
that he or she will not perform well on that task. People most affected by stereotype
threat are those we consider as disadvantaged in the workplace due to negative
stereotypes–racial and ethnic minorities, members of lower socioeconomic classes,
women, older people, gay and lesbian individuals, and people with disabilities.
B. Ethnocentrism
1. Ethnocentrism is the belief that one’s own group and subculture are inherently
superior to other groups and cultures, thus making it difficult to value diversity. The
business world tends to reflect values, behaviors, and assumptions based on the
experiences of a homogeneous, white, middle-class, and male workforce. Most
management theories presume workers share similar values, beliefs, motivations,
and attitudes about work and life in general.
2. Ethnocentric viewpoints produce a monoculture that accepts only one way of doing
things and one set of values and beliefs. These assumptions create a dilemma for
people of color, women, gay people, disabled, the elderly, and others who feel
pressure to conform and are presumed deficient because of differences. Valuing
diversity means ensuring that all people are given equal opportunities in the
workplace.
3. The goal for organizations seeking cultural diversity is pluralism rather than a
monoculture and ethnorelativism rather than ethnocentrism. Ethnorelativism is the
belief that groups and subcultures are inherently equal. Pluralism means an
organization accommodates several subcultures. It seeks to fully integrate into the
organization the employees who feel isolated and ignored. Most organizations are
making a conscious effort to shift from a monoculture to pluralism.
X. FACTORS AFFECTING WOMEN’S CAREERS
A. The Glass Ceiling
1. The glass ceiling is an invisible barrier that exists for women and minorities that
limits their upward mobility in organizations. They can look up through the ceiling
and see top management, but prevailing attitudes and stereotypes are invisible
obstacles to their own advancement. This barrier also impedes the career progress of
minorities.
2. In particular, Asian managers bump up against the bamboo ceiling, a combination of

cultural and organizational barriers that impede Asians’ career progress.
3. To break through the glass ceiling into senior management roles, top executives
suggest female and minority managers follow this advice:
a. Be assertive and ask for what you want. Many Asian managers have found
themselves stereotyped as “not top manager material” because they are too quiet
and unassertive. Women in general are also uncomfortable asking for what they
want, for fear of being perceived as too aggressive or too selfish.
b. Highlight your achievements. Women tend to downplay their accomplishments

and insights to avoid being judged as unfeminine.
Discussion Question #10: If talkative men are viewed as powerful and competent, why do you
think talkative women are seen as less capable and pushy? Do you think this perception would
be different in an organization with a large percentage of female managers at top levels?
Notes_________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________
B. Opt-Out Trend
Many women choose to get off the fast track long before they hit the glass ceiling. In this
opt-out trend, highly-educated, professional women are deciding that corporate success
isn’t worth the price in terms of reduced family and personal time. Some are opting out
to be stay-at-home moms, while others want to continue working, but just not in the kind
of fast-paced, competitive, aggressive environment that exists in most corporations.
Critics argue that this is just another way to blame women themselves for the dearth of
female managers at higher levels.
C. The Female Advantage
collaborative, less hierarchical, relationship-oriented approach that is in tune with today’s
global and multicultural environment. As attitudes and values change with changing
generations, the qualities women seem to possess may lead to a gradual role reversal in
organizations. Women of all races and ethnic groups are outpacing men in earning
bachelor’s and master’s degrees. Over all, women’s participation in both the labor force
and civic affairs has steadily increased since the mid-1950s, while men’s participation
has slowly but steadily declined.
Discussion Question #8: Until Sheryl Sandberg was promoted to chief operating officer of
Facebook in 2012, its board was composed of only men. Yet a majority of Facebook’s 845
million users are women. Given this demographic, explain how Facebook might benefit from
increasing the presence of women on its corporate board.
NOTES________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
D. Increasing Awareness of Sexual Harassment
Sexual harassment creates an unhealthy and unproductive work environment and is illegal.
As a form of sexual discrimination, sexual harassment in the workplace is a violation of the
1964 Civil Rights Act. Sexual harassment in the classroom is a violation of the Education
Amendment of 1972. The following categories describe various forms of sexual
harassment.
1. Generalized. This form involves sexual remarks and actions not intended to lead
to sexual activity.
2. Inappropriate/offensive. Though not sexually threatening, it causes discomfort in

a coworker and limits the offended person’s freedom and ability to function at
work.
3. Solicitation with promise of reward. This action treads a fine line as an attempt to
“purchase” sex, with the potential for criminal prosecution.
4. Coercion with threat of punishment. The harasser coerces a coworker into sexual
activity by using the threat of power to jeopardize the victim’s career.
5. Sexual crimes and misdemeanors. These acts, if reported, would be considered

felony crimes and misdemeanors.
SUGGESTED ANSWERS TO END-OF-CHAPTER DISCUSSION

QUESTIONS
1. Does it seem like a good idea to let a big data computer program make hiring decisions, as
some companies like Xerox are doing, as described in this chapter? What types of positions
do you think this might be suitable for? What might be some drawbacks to this approach?
Big data computer programs have a role in hiring, but should not be used exclusively because
they omit a personal interview. This is the main drawback to this approach. The personal
interview is a good indicator for measuring skills, and this would be omitted in a big data
computer program for hiring. The information obtained through a personal interview for an
assembly-line worker in a manufacturing plant is practical in the exchange of information
regarding the applicant’s background and expectations and the job requirements. Beyond
that point, the personal interview may fail to accurately assess the potential of the worker as a
result of flaws in the system, such as prejudice on the part of the interviewer, or the
individual’s skill in providing answers the interviewer wants to hear.
A computerized performance test in which the skills needed on the assembly line are
simulated would be a good predictor of actual job performance for an assembly-line worker.
For management personnel, computerized intelligence, aptitude, and ability are good
indicators of potential because answers provide important information on skills and
intelligence in crucial areas. Aptitude tests and personality inventories are excellent sources
of information in putting together strong teams.
2. Assume that it is the year 2027. In your company, central planning has given way to
frontline decision making and bureaucracy has given way to teamwork. Shop floor workers
use handheld devices and robots. A labor shortage currently affects many job openings, and
the few applicants you do attract lack skills to work in teams, make their own production
decisions, or use sophisticated technology. As vice president of HRM since 2013, what
should you have done to prepare for this situation?
This question should get the point across that the field of human resources is always changing.
One of the things that should have been done is human resource planning. You should have kept
in touch with changes that were occurring and projected the human resource needs in advance.
This way you have the right skills and the right mixture of people in your workforce. This would
have to be accomplished through effective recruiting and selection techniques. Another vital
thing you should have done is provided training and development for your people so that they
had the skills to work in teams, make decisions, and use sophisticated technology. Having made
this investment in people, you would also want to have provided the compensation, including
benefits, needed to maintain this effective workforce.
3. Is it wise for managers to evaluate a candidate’s tweets or postings on social networking

sites as grounds for rejection before even interviewing him or her? What might be ethical
and legal issues that managers should consider? Discuss.
While online checks may seem like an effective way to perform background checks on potential
candidates, it is important to consider the ethical and legal implications of it. Maryland became
the first state to make it illegal for employers to ask job candidates for their social media
passwords, and other states are considering similar laws. Using social networking as a
background check without disclosing the investigation to the candidate can also open
organizations to lawsuits. Moreover, because an online search often reveals information such as
race, gender, sexual orientation, and so forth, HR managers have to be sure that this information
isn't used in a way that could be construed as discriminatory.
4. As HR manager for a small company that makes computer games and software, what are
some steps that you might take to create an employer brand?
Potential candidates for a company that makes computer games are more likely to be young. This
should be a vital consideration while promoting the company. The question here is “What would
appeal to young software professionals?” Attractive benefits, flexible schedules, and a lot of
room to work independently are just some ways to attract potential candidates. However, skilled
candidates are often not motivated by monetary benefits alone. It is important to also appeal to
their intellectual needs by offering challenging work.
5. One HR manager recently got a thank-you note on her iPhone that said “Thx 4 the Iview!
Wud ♥ to wrk 4 u!!!” The manager had liked the candidate’s interview, but after getting the
note, she put him in the reject pile. Do you think it was fair for the manager to automatically
reject the candidate? Should “textspeak” be considered acceptable workplace
communication? Discuss.
The answer to this question may depend to some extent on the culture of the company in
question. It is much more likely for this type of communication to be accepted in companies
with younger management, especially the newer Internet companies and personal technology
companies. Companies with older management, or those in more traditional fields or with a
more traditionally professional culture will be less accepting of “textspeak.”
6. How would you go about deciding whether to use a job-based, skills-based, or pay-for-
performance compensation plan for employees in a textile manufacturing plant? For
waitstaff in a restaurant? For salespeople in an insurance company?
The decision of what type of compensation plan to use should reflect the organization’s overall
strategy. Because the textile industry is quite mature, the textile manufacturing plant’s strategy
is likely to be focused on innovation and quality. Accordingly, the compensation plan should
encourage innovation and motivation of employee performance by rewarding risk taking, idea
sharing, and productivity. A pay-for-performance plan is probably best in this situation.
For waitstaff in a restaurant, skills-based pay may work best because it would encourage
employees to acquire additional skills such as supervising other waitstaff, tending bar, opening
and closing the restaurant, etc., thus improving their potential to move into restaurant
management and give the restaurant more flexibility in scheduling.
Salespeople in an insurance company would likely do well with a combination of skill-based

pay and pay-for-performance. The skills-based pay would encourage salespeople to learn
about a broad variety of products, as well as to learn other aspects of the insurance company’s
activities. Pay-for-performance would reward those with higher sales.
7. Evaluate your own experiences with people from other backgrounds. How well do you think
those experiences prepared you to understand the unique needs and dilemmas of a diverse
workforce?
In addressing the question, students should clearly demonstrate their understanding of the unique
needs and dilemmas of a diverse workforce. Answers should include both the needs and
dilemmas of a diverse workforce for which their experience did prepare them and the needs and
dilemmas for which it did not.
8. Until Sheryl Sandberg was promoted to chief operating officer of Facebook in 2012, its
board was composed of only men. Yet a majority of Facebook’s 845 million users are
women. Given this demographic, explain how Facebook might benefit from increasing the
presence of women on its corporate board.
collaborative, less hierarchical, relationship-oriented approach that is in tune with today’s global
and multicultural environment. According to James Gabarino, an author and professor of human
development at Cornell University, women are “better able to deliver in terms of what modern
society requires of people—paying attention, abiding by rules, being verbally competent, and
dealing with interpersonal relationships in offices.” His observation is supported by the fact that
female managers are typically rated higher by subordinates on interpersonal skills, as well as on
factors such as task behavior, communication, ability to motivate others, and goal
accomplishment. Recent research found a correlation between balanced gender composition in
companies and higher organizational performance. Moreover, a study by Catalyst indicates that
organizations with the highest percentage of women in top management financially outperform,
by about 35 percent, those with the lowest percentage of women in higher-level jobs.
9. Describe employees who are most vulnerable to stereotype threat. Why is it important for
managers to understand that some employees may experience stereotype threat?
Stereotype threat describes the psychological experience of a person who, usually engaged in a
task, is aware of a stereotype about his or her identity group suggesting that he or she will not
perform well on that task. People most affected by stereotype threat are those we consider as
disadvantaged in the workplace due to negative stereotypes—racial and ethnic minorities,
members of lower socioeconomic classes, women, older people, gay and bisexual men, and
people with disabilities. Employees who experience stereotype threat may feel more anxiety
about their performance at work due to the anticipation of extra scrutiny and worry that their
failure will reflect not only on themselves as individuals but on the larger group to which they
belong.
10. If talkative men are viewed as powerful and competent, why do you think talkative women
are seen as less capable and pushy? Do you think this perception would be different in an
organization with a large percentage of female managers at top levels?
This is an example of a stereotype about women; talkative, pushy, and less capable.
Stereotypes are often based on folklore, media portrayals, and other unreliable sources of
information. For example, studies have shown that the traditional stereotype of a “good”
manager is masculine, adopting characteristics such as assertiveness. Stereotypes contain
negative connotations. Stereotypes assume that all members of a group have the same
characteristics. The perception might be different if there were a large percentage of female
managers at top levels, although women are also subject to stereotypical thinking about other
women.
APPLY YOUR SKILLS: SELF-LEARNING

How Tolerant Are You?
This exercise helps students understand how tolerant they are of people who are different from
themselves.
APPLY YOUR SKILLS: GROUP LEARNING

Management Competencies
An important responsibility of the Human Resources Department at many companies is to

develop a list of management competencies and then to provide training to help managers
improve on those competencies. Students are asked to make notes for each of several
competencies provided in the exercise, then discuss their notes in groups and agree on the
expected behaviors for each competency. Then, students should take turns stating the
competencies they believe will be easiest and hardest for them to master.
APPLY YOUR SKILLS: ETHICAL DILEMMA

Sunset Prayers
1. Continue the current policy that leaves it up to the Muslim workers as to when they leave the
assembly line to perform their sunset rituals.
This is not a good course of action. With an increasingly higher percentage of assembly-line
workers leaving the line to perform sunset rituals, production will likely be negatively impacted.
2. Try to hire the fewest possible Muslim workers so the work line will be efficient on second
shift.
This is also not a good course of action. First, it would probably qualify as discrimination based
on religion. Second, the Muslim Somali temporary workers are saving Frank a substantial
amount of money in wages and benefits, which may be largely what keeps him in a competitive
position.
3. Ask the Muslim workers to delay their sunset prayers until a regularly scheduled break
occurs, pointing out that North Woods is primarily a place of business, not a house of
worship.
This may be the best of the three alternatives. Having a large number of workers leaving the
assembly line at the same time could be considered an unreasonable accommodation. Frank
might be able to convince them to have a smaller number go at sunset each day while the others
wait for a scheduled break, and rotate who goes at sunset and who waits so that everyone gets to
go at sunset at least once or twice a week. Frank may also be able to adjust the scheduled break
so that it is closer to the actual sunset time, thus accommodating the request as closely as
possible.
APPLY YOUR SKILLS: CASE FOR CRITICAL ANALYSIS

The Right Way with Employees?
1. What kind of employee social contract is assumed by Kirby and by Drew? Explain.
Kirby appears to assume a more traditional social contract that is based on the concept that the
employee contributes ability, education, loyalty, and commitment and in return the company
provides wages and benefits throughout the employee's working life. Drew, however, assumes a
new social contract, which is based on the concept of employability rather than lifetime
employment. While the new social contract offers several benefits to both the employees as well
as the organizations, Drew appears to be using this approach to treat people as economic factors
to be used when needed and then let go.
2. If you were an HR manager at the company, which view would you support? Why?
While Drew’s proposed across-the-border cuts in employees might help the company in the
short-term, the strategy is more likely to have a negative impact in the long run. If employees are
treated merely as economic factors to be used when needed and then let go, they are less likely to
be committed to organizational performance. Studies in both the United States and China have
found lower employee and firm performance and decreased commitment in companies where the
interaction between employer and employee is treated as an economic exchange rather than a
genuine human and social relationship.
Kirby’s approach might take a little longer in helping the company recover from the crisis, but it
is more likely to be effective in the long run.
3. HR departments hire and develop human capital to serve the organization’s strategy and
drive performance. Which approach—Kirby’s or Drew’s — is more likely to have a greater
positive impact on performance? Discuss.
Drew’s approach of treating employees as economic factors—to be used when needed and then
let go—will have a negative impact on performance. Studies in both the United States and China
have found lower employee and firm performance and decreased commitment in companies
where the interaction between employer and employee is treated as an economic exchange rather
than a genuine human and social relationship.
Kirby’s approach, while being a little traditional, is more likely to have a greater positive impact
on performance.
ON THE JOB VIDEO CASE ANSWERS

Barcelona Restaurant Group: Managing Human Resources
1. List the three main activities of (HRM) and identify which activity is examined at length in the
video.
The three activities and goals of HRM are (1) finding the right people, (2) managing talent, and
(3) maintaining an effective workforce over the long term. The video on Barcelona Restaurant
Group deals primarily with finding the right people. In particular, the video focuses on the
process of recruiting and selecting candidates. It is clear in the interviews that Lawton believes
finding the right people is the human resource activity most critical to Barcelona’s success—a
perspective no doubt related to the industry’s high turnover.
2. Of the various steps in Barcelona’s employee selection process, the job interview is the
briefest. Do you agree with the company’s approach to interviewing? Why or why not?
Students’ opinions will vary. For most firms, the selection process involves multiple tools for
assessing the “fit” between the job candidate and the organization. While Barcelona makes use
of recruiters, interviews, and various employment tests, the company places little significance on
the interview, allowing no more than 20 minutes per candidate. According to COO Scott
Lawton, interviews provide little dependable information about the fitness of the applicant.
Lawton says he doesn’t get anything out of the actual conversation with candidates, and he notes
that many impressive interviewees over the years “ended up being a dud.” As a result, only 10
percent of Barcelona’s job applicants are refused during the interview stage of selection.
Instead of trying to judge the candidate’s personality and work attitudes during an interview,
Barcelona uses interviews to provide applicants with company information and to set up a series
of assessments that ultimately reveal the proper match between the company’s needs and the
employee’s expertise.
3. Identify Barcelona’s three-stage process for matching job applicants with its organizational
objectives, and explain how each stage reveals the fit between job applicants and the needs of
the restaurant.
The video highlights Barcelona’s three-stage selection process:
(1) The interview – managers at Barcelona use interviews to give candidates information about
the company and to set up a series of employment tests and assessment exercises. COO Scott
Lawton says that interviews do not reveal much useful information about job fit. As a result, only
10 percent of candidates are refused at this stage.
(2) The “shop” – this employee assessment activity requires that candidates dine at a Barcelona
restaurant, observe their experience, and write an essay that grades the presentation of food and
performance of the wait staff. According to Lawton, sending applicants on a shop provides
significant insight into candidates’ thought processes, perception, attitudes, education, skills, and
work ethic. The activity also reveals if the potential hire is paying attention to the kinds of details
that are important at all the Barcelona restaurants. This selection activity eliminates
approximately 60 percent of applicants.
(3) The “trail” – this assessment asks candidates to pretend that they have been with the company
for six months, and it asks applicants to take command of the floor, talk to the staff, engage
customers, and demonstrate their abilities. Top managers observe the candidate and make a
decision whether to hire the person. This assessment reveals the personal, technical, and people
skills of the applicant. Only one in four candidates who performs a “trail” can expect to be hired
at Barcelona.

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CHAPTER 9

MANAGING HUMAN RESOURCES AND DIVERSITY

ANNOTATED LEARNING OUTCOMES

1. Explain the strategic role of human resource management.

5. Describe the tools managers use to recruit and select employees.

I. THE STRATEGIC ROLE OF HRM IS TO DRIVE ORGANIZATIONAL PERFORMANCE

A. The Strategic Approach Exhibit 9.1, Exhibit 9.2

 right people to become more competitive on a global basis;

B. Building Human Capital to Drive Performance Exhibit 9.3

II. THE IMPACT OF FEDERAL LEGISLATION ON HRM Exhibit 9.4

III. THE CHANGING NATURE OF CAREERS

A. The Changing Social Contract Exhibit 9.5

1. Branding the Company as an Employer of Choice

a. An employer brand is similar to a product brand except that rather than

b. Employer-branding campaigns are like marketing campaigns to “sell” the

2. Using Temporary and Part-Time Employees

IV. FINDING THE RIGHT PEOPLE Exhibit 9.6

A. Human Resource Planning

b. What is the volume of business likely to be in the next 5 to 10 years?

c. What is the turnover rate, and how much, if any, is avoidable?

a. What types of engineers will we need, and how many?

b. How many administrative personnel will we need to support the additional

c. Can we use temporary, part-time, or virtual workers to handle some tasks?

Recruiting, sometimes referred to as talent acquisition, is defined as activities or

applied. Many organizations use internal recruiting (promote-from-within) policies.

1. Assessing Jobs. Basic building blocks of human resource management include

4. Internships. An internship is an arrangement whereby an intern, usually a high

In the selection process, employers assess applicants’ characteristics in an attempt to

2. Interview. The interview serves as a two-way communication channel that allows

 Structured interviews use a set of standardized questions that are asked of

 Nondirective interviews allow the applicant a great deal of freedom in

A. Training and Development Exhibit 9.9

1. On-the-Job Training. Training and development is a planned effort by an

3. Corporate Universities. A corporate university is an in-house training and

1. Performance appraisal is observing and assessing employee performance, recording

a. Recent thinking is that linking performance appraisal to rewards has unintended

2. Assessing Performance Accurately

a. To obtain an accurate performance rating, managers must acknowledge that jobs

supervisors, co-workers, and customers to provide appraisal of the employee from

b. Performance review ranking system is a method in which managers evaluate

3. Performance Evaluation Errors Exhibit 9.10

a. Stereotyping occurs when a rater places an employee into a class or category

c. The behaviorally anchored rating scale (BARS) is developed from critical

VI. MAINTAINING AN EFFECTIVE WORKFORCE

2. Wage and Salary Systems

a. Management’s strategy for the organization should be a critical determinant of the

a. Pay-for-performance, also called incentive pay, ties at least part of the

2. Other types of benefits, such as health insurance, vacations, or educational

C. Rightsizing the Organization

1. Rightsizing, also called downsizing, refers to intentionally reducing the company’s

a. Employees who are poor performers can be dismissed. Productive employees

2. Enlightened companies try to find a smooth transition for departing employees. By

E. Managing Diversity Exhibit 9.11

VII. DIVERSITY IN THE WORKPLACE

A. Diversity in Corporate America Exhibit 9.12, Exhibit 9.13

a. Unprecedented generational diversity. Today’s workforce is in a state of flux as a

c. Increased diversity. Foreign-born workers make up 16 percent of the U.S.

B. Diversity on a Global Scale

VIII. MANAGING DIVERSITY

A. Diversity and Inclusion Exhibit 9.14

2. Inclusion is the degree to which an employee feels like an esteemed member of a

3. Managing diversity, a key management skill in today’s global economy, means

1. Diversity of perspective is achieved when a manager creates a heterogeneous team

C. Dividends of Workplace Diversity Exhibit 9.15