Human Resource Management, 10th Edition Solution Manual

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Chapter 1Manual–Human Resource Management: Gaining aCompetitive AdvantageExplanation of the Instructors Manual:This instructor’s manual was developed to assist the individual in using the materialpresented in the textbook within the context of a classroom. It is important to notethat in developingthemanual, it was not assumed the instructorteaching thiscourseisversed inHuman Resource Management (HRM)as a practitioner,researcher,or faculty member. Thus, within this manual, a summary for eachchapter is provided to help give context and structure for the instructor. Within eachsummary are also potentialissues that,through awareness may assist in instructionand student understanding of the presented material.Following eachchaptersummary are suggested responses and guidance for thechaptermaterials, including potential answers for case studies, end of chapterquestions,and other materials. New tothe instruction manual is areference guide tothe two leading professional Human Resource Management Bodies of Knowledge:the Society for Human Resource Management Body of Competency and Knowledge,and the Human Resource Certification Institutes’ A Guide to the HR Body ofKnowledge.While not a complete study guide for examination, this may assistinstructors to connectmaterials for those students who are interested, while alsoproviding further instruction within the practice of HRM.The full reference guideisavailable andincludes a breakdown of each chapter.Reference to the ChapterPowerPointsand available CONNECT materials are alsoincluded in each chapter.Chapter1Summaryfor InstructorsThis chapter discusses the role of Human Resource Management (HRM) in gaining acompetitive advantage. Itprovides a foundation for the rest of the chapters bydescribingthe role HRM plays within organizations and the skills HRM practitionersneed for any company to be competitive.Within thischapterarethe competitivechallenges that U.S. companies currently facewhich influence their ability to meetthe needs of shareholders, customers, employees, and other stakeholders andsupport as to how thesecompetitive challenges are influencing HRM. A fullsummary is provided in the textbook on page 55.At the end of this chapter, instructors should ensure students understand HRM as apractice, HR as a department and be prepared todelineate between the two (LO1-1,LO1-6,LO1-7). Further, students should be able to discuss the different HRMpractices (LO1-7),which are outlined towards the end of the chapter.Accomplishingboth tasks will help supportstudents in subsequent chapters, however,itcan be adifficult task given the current perceptions of HRM and HR departments, as wellasthe potential for students wholack exposure to such ideas and practices.Anotherdifficultymay be withhaving students seeing themselves asmanagers,andnot employees.Oftenthe exposure students have hadwith HRMis when theyhavebeeninterviewed–not as themacting as the interviewer.Thus, the instructor may

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Chapter 1Manual–Human Resource Management: Gaining aCompetitive Advantagewish to ensure (and continue to revisit throughout the course) the studentcontinually focuses on howthey are the ones making the decisions(i.e. managers).However, their own experiences such as being interviewed can lend to great coursediscussion and reflection.Instructors may also find students,especially those withlittle interest in HRM or within other majors,experiencing difficulty in recognizingthe importance of this topic and practice. Instructors may wish to emphasize thatalthough HRM is a separate practice, much of what will be studied directly applies tothe business acumen ofmanagers and leaders in all facets of business management.Once the above is considered, instructors may then wish to discuss the remainder ofthe LOs. If students have had a previous Introduction to Business/ Management orsimilar course, then discussion of these LOs from the perspective of strategicmanagement and internal/external analysis (i.e. SWOT analysis) may help studentsto connect the concepts. Specifically, if a general understanding of strategicmanagement exists, then instructors may discuss how HRM practices can contributeto the strategic advantage of organizations, and how HR departments andprofessionals holda specificrole and may contribute to this process.It would behelpful to draw students’attention to Table 1.15 on page 54,whichshows theoutline of the textbook. These can help further demonstrate the different areaswithinHRM, and what students may expect from the remainder of the course.Society for Human Resource Management Body of Competency & Knowledge:This chapter contains content which may be identified within the following contentareas:Talent Acquisition & RetentionLearning & DevelopmentTotal RewardsStructure of the HR FunctionTechnology & DataOrganizational Effectiveness & DesignWorkforce ManagementRisk ManagementBusiness & HR StrategyHuman Resource Certification Institute’sA Guide to the HR Body ofKnowledge:This chapter contains content which may be identified within thefollowingareas:Business Management & StrategyWorkforce Planning and EmploymentHuman Resource DevelopmentCompensation and BenefitsEmployee and Labor RelationsRisk ManagementOther Classroom Materials: CONNECT and PowerPoint Slides

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Chapter 1Manual–Human Resource Management: Gaining aCompetitive AdvantageInstructors should review both the available PowerPoint slides and CONNECTmaterials. The available PowerPointslides mayassist instructors byprovidingadditional insight into the chapter materials, while expediting any classroompreparation.They may also provide visual reinforcement for students duringclassroom discussion.There are CONNECT exercises available through McGraw-Hillwhich can greatlyassist student preparation for class and understanding of chapter concepts.Instructors may wish to structure the classwhere students must complete theCONNECT exercises prior to class, thus, further reinforcing material and allowinginstructors to expand and challenge student understanding during class time.CONNECT exercises may be set-up to be time-based, requiring students to practicechapter materials for a specific timeframe. It isthe instructors’discretion how theydesire to include this into the course grade, but a low-stakes grading system basedon completion is suggested to help encouragestudentusage, while minimizingpenalties for mistakes during completion.To assist in course review, instructors may also require students to periodicallycomplete CONNECT chapters for previously read chapters. This may be beneficial tosupport students in preparation for exams, projects, or where new chapter materialexpands upon a previous chapter.Further support for instructors in setting-up the CONNECT materials may beobtained by contacting McGraw-Hill.Suggested Additional ExercisesWhat does HR do?Exercise #1Faculty may lead a discussion asking students to consider their previousunderstanding andperceptions of HRM. Preparatory questions and ideas mayinclude:-Ask a friend/family member, etc.what they think of when they hearHR?-Research articles on HR’s role in organizations, summarize,and bring summaries toclassDuring class, ask students to discuss the responses and other information they havefound. Faculty will notice thatstudent discussion and responses may vary greatly,but will probably shiftbetween HR as a department, and HRM as a practice. Facultyshould be prepared to delineate how HRM as a practice is different from how HRdepartments sometimes function, or how they are perceived. This can help studentsbetter understand LOs 1, 2,and 7.These exercises canalso support End of ChapterQuestions 1, 2, 4, 7,and 8.Table 1.1 on page 6 has a list of HR functions andresponsibilities,which can be integrated into this conversation.Exercise #2Instructorsmay ask students to research careers in HR. This can be accomplishedthrough the following:

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Chapter 1Manual–Human Resource Management: Gaining aCompetitive Advantage-Requiringstudents write a reflection paper on different jobs they find by searchingin online Job Boards, and whether those are jobs they wish to pursue.-Requiringstudents speak with someone who has a job or spent their career inHRM-Requiring students tocomplete the self-assessment exerciseDo you have what ittakes to work in HR?(page 62). This may be requiredseparately, or inconjunctionwith the suggested assignments above.-Figure 1.3 on page 14 regarding Competencies for HR Professionals may also beintegrated by asking students to reflect on their own current competencies and ifthey match with Figure 1.3.Chapter 1–List of CasesEnter the World of BusinessMarriott: HR Practices Result in Engaged Employeesand Satisfied Customers(p. 3)SuggestedDiscussion Question:Do you think Marriott is meeting its principal of “Take care of associates and theywill take care of customers?” What about its core value of putting people first? Whatevidence can you provide?Student responses shoulddemonstratereflectionon the evidence within the casespecific to employee treatment. This evidence should be connected tothe differentoutcomes identified within the vignette, such asmanagement tenure. Studentsshould also identify different HRM practicesand tools(surveys, compensation) andexplore the relationship these have on the success of Marriott’s business. Finally,instructors may wish to integratethese observationsand the discussion into anoverall discussion of thedifferent HRM practicestobe discussedwithin thetextbook and thuswhat the studentscan expect tobe studying and learning.Instructors should note thatat the end of Chapter 1on page 55 there is a “Look Back”sectionthatrevisitsthe Marriott case and asks 4 questions. Suggested guidance foreach is as follows:1)Student responses should demonstrate an understanding of the different HRMpractices and how they may impact the competitive advantage of the organization.Integration of Marriott’s core values and principals should be apparent in studentresponses.For example, discussion of the corporate culture of “family” andretention may be connected to Marriott’s hiring and selection processes. Benefitsmay also be discussed as evidence of Marriott’s commitment to take care of itsemployees.2)Student responses may simply be yes orno. The instructor may look to engagestudents in a devil’s advocate role, where regardless of response, students mustjustify their position. This is to avoid students from simply acquiescing to yes due tothe content of the book, or moving to a no replydue toasimple misunderstandingor dislike. Once past the simple yes or no, the instructor should look to emphasizehow these HR practices have helped Marriott strategically through what was

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Chapter 1Manual–Human Resource Management: Gaining aCompetitive Advantagediscussed in question 1. Further, instructors may also wish to emphasize theimportance of student ability to advocate for HRM practices as a strategicinvestment with a return on investment (ROI).3)Students should be able to discuss how while practices may vary due to industry,HRM can contribute to the strategic advantage of the company regardless of sector,product/service,orindustry. Students should be able to begin to recognize howdifferent companies may need to emphasize different HRM imperatives. Forexample,employeeretention within research and development is extremelyimportant due to technological advancement andproprietary company knowledge,highlighting how retention needs for Marriott are different.4)Responses can vary, and instructors may wishto(depending on demographics oftheclass) ask students to reflect on their own needs as employees and what theywould like from an employer. Regardless of responses, instructor may wish toemphasize that practices must not only meet needs and desires of employees, butalso align behind corporate strategy.Page 35 discussed Generational Differences, aswell as Table 1.11 with the ages,years born,andnames of each generation.Competing Through Sustainability:Socially Responsible Programs Help Improve the World (p. 29)Question Guidance:Students may focus on the alignment of employee preference and concern for suchinitiatives and organizations’ own initiatives and the culture within.This would leadto attraction, retention, as well as motivation of employees to contribute anddevelop to further support the organization.Integrity in Action:CEO Cuts Pay to Reduce Income Inequality (p. 42)Question Guidance:Instructor should help facilitate a discussion investigating the difference betweenintrinsic and extrinsic motivation, and pay plans may speak specifically to extrinsicmotivation, while the ability to work for a CEO with a “moral imperative” may beintrinsically motivating.Competing Through GlobalizationEffectiveness in Global Business Requires More than Just a First-Class Ticket (p. 45)Question Guidance:Topics would include cross-cultural skills including verbal and nonverbal;culture-specific training for the specific destination such as customs and business practices;time and stress management for expatriates. It is important for families to receivethis training because family issuesand problems are the number one reason whyoverseas assignments fail.Competing Through TechnologyConnectiveness and Mobility Enhance HRPractices(p. 48)Question Guidance

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Chapter 1Manual–Human Resource Management: Gaining aCompetitive AdvantageSome disadvantages may include lack of access due to socio-economic reasons;cyber security concerns; employee privacy and data; rate of technological changeand adoption.Answers and Guidance to End of Chapter Sections:Discussion Questions (page56), suggested guidance1.Discussion will most likely focus on associatedcostsas companies outsourceadministrative functions normallyhoused within HRdepartments. Instructors mayneed to emphasize that as long as the strategically necessary functions are stillemphasized and managed well thenHRdepartments may not be necessary.Thecaveatisthat sometimes without the department they do not get the necessaryemphasis.However, HR professionals may not necessarily reside withinHRdepartments, and can be within other departments (Training and Learningdepartments separate from the traditional HR department, for example) that focuson a specific function. It may also be important to emphasize that HR professionalscan practice from multiple areas and backgrounds (Industrial/OrganizationalPsychology). Thus, HR practitioners and professionals become an important part oforganizations, with or without departments.Further support may be found on pages5-11, with particular focus on Tables 1.1 (Responsibilities of HR Departments) and1.2 (Questions to Ask: Are Human Resources Playing a Strategic Role in theBusiness?).Page 10 also offers discussion of pros/cons of having an in house HRdepartment.2) Staffing:ensuring organizations predict the appropriate number of employeesand competencies necessary to meet strategic objectives, domestically and globallyand then acquirethem within the necessary timeframe. Example would beleadership identification and selection with global understanding and the ability toforesee issues within organizational operations/logistics to ensure sustainability.Training: ensuring employees of organizations have the support to obtain andimprove upon the competencies as necessary to meet the strategy. This would alsoinclude leadership development. Example could be sales training, development ofcustomer service competencies,and a fluency to use corporate technology and itscontinual adoption of new technology to service customers.Compensation:Identifying appropriate compensation and benefits strategies thatalign behind organizational strategy while meeting identified imperatives such asattraction and retention of key talent. Global challenge of compensation whichmeets regulation and demographic needs in multiple cultural and geographicallydispersed areas. Technological challenge of risk and security management ofemployee data from theft, as well as meeting regulatory needs of multiple countriesand economic zones.Performance Management: Ensuring employee performance is measured forimprovement and other used for organizational decisions. Global challenge ofdeveloping leaders with global business acumenmay also be discussed.

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Chapter 1Manual–Human Resource Management: Gaining aCompetitive Advantage3)Table 1.6 on page 21.Here, intangible assets would be employees and theskills/competencies/knowledge they bring to the organization. HRM practices, asanything whichimpacts the attitudes, behaviors,and performance of employeeswithin the organization (recalling the definition on page 4).4)Page 11 for definition. HR may resist due to a) lack of understanding, knowledgeskill sets necessary, b) a feeling of de-personalization of the HR function (i.e. dataand cold decisions versus people and warm decisions) c) fear of data-drivendecisions resulting in downsizing of work force and HR, especially connected toprevious mentioned reasons.5) Page 11 provides an example. Further responses may include employee surveys,competitor compensation surveys, performance evaluation results (maybe mention360 degree assessments andpotential perceptions of management), length oftenure at specific positions, number of promotions by position/demographic, etc.6) Page 46,Table 1.13 lists potential uses of Social Networking. Page 22 has examplefor customer service; page 44 for recruitment and employer branding. Page 48discusses again collaboration tools within context of cloud computing and how datawill be more accessible. One example would be employer of choice branding andcampaigns on Social Media, which mayhelp make employers look attractive.7) No; as employee engagement can save costs and thus help take company from thered and into the black (page 6)8) This question is meant to have each student explore the different areas of HRMand help ensure they understand the practice. Students should be guided towardsthe agreement that each area is important, but may become more ofa strategicimperativedepending on an organization’sinternal and/or external environmentand subsequent strategy at a point in time.9) Pages27-28; page 28,Table 1.8 provides the responses.10) Pages 5-11, with particular focus on Tables 1.1 (Responsibilities of HRDepartments) and 1.2 (Questions to Ask: Are Human Resources Playing a StrategicRole in the Business?) as within Discussion Question #1. Discussion may alsointegrate the Competencies of HR Professionals (Figure 1.3, page 14) and howstrategy requires professionals to have the requisite skill set. Overall discussionshould reflect on the need for HRM practices to contribute to the strategy of theorganization, and the different approaches outlined on pages 5-11 through whichorganizations attempt to accomplish this. Discussion may also reflect on the historyof HR as the personnel department, and its difficulty with becoming more strategic.11)Page 16 for definition of sustainability; page 28 for Social Responsibility, whichincludes social, ethical and environmental responsibility discussions. HRM examples

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Chapter 1Manual–Human Resource Management: Gaining aCompetitive Advantagemight be development of a culture focused on sustainability, with identification,selection of individuals who wish to work for such a company. Training anddevelopment initiatives which help develop skill sets to recognize when and wherea company canbe socially and environmentally responsible.12) Aging Workforce (page 34): loss of key employees and skill sets without enoughof a workforce to replace the loss; employers may encourage delaying retirement orworking part time as they age. May also face need to retrain and need to ensure agediscrimination does not occur.Diverse Workforce (pages 34,38): Diverse mind sets and perspectives could lead tomore difficulties in management within organizations. Can lead to more creativity,problem solving and understanding of different cultures due to diverseperspectives. Page 38 outlines the skills set managers would need to manage adiverse workforce.Skill Deficiencies: the need for organizations to ensure selection processes identifyemployees either with the requisite skill sets, or with the ability to learn.Organizations will also need to ensure their talent management and internaltraining and development are adequate to ensure skills and competencies are met.Retention of skilled employees will also become more imperative.13) Page 43; talent identification and retention within emerging markets; the needfor cross-cultural training of employees who are relocated as well as those whoconduct business across cultural barriers for the company are all challenges forHRM within global context. Thus, identifying workforce capability within a specificgeographic area and the internal competency of the expanding organization becomenecessary for to assess prior to the decision to expand.14) Page 49 for definition. Page 50, regarding how HRM practices which focus onthe whole and their integration and not in isolation is how they may havecommonality withHPWS and quality goals.15) Pages8-11 discussed outsourcing, where disadvantages may include an abilityto control quality of product/service delivered to company regarding the HRfunction. Managers might also lack specific knowledge concerning employmentlaws, HR practices that having in-house departments can assist with.Pages 7-8 discuss self-service model, disadvantages may include resistance bymanagers to adopt such practices like their own reviewing of resumes, approving ofbonuses, payroll,etc.These can also be disadvantages when line managers are moreinvolved in designing and using HR practices. Other disadvantages may results fromlack of understanding and/or skill regarding how to design and use such practices.16) Pages 44-45. Reasonsto reshore wouldincludedecreasedshipping costs,mitigation ofsupply chain disruption, quality concerns and customer preferences

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Chapter 1Manual–Human Resource Management: Gaining aCompetitive Advantagetowards domestic production.Reasons not to would all be the contrary of anypositives gained from the previously mentioned.Organizations should consider allof thesereasonsprior to a decision to reshore operations.Exercising Strategy:Zappos Faces Competitive Challenges(p. 57)Question Guidance1)Students should be able to accurately identify the challenges listedin Chapter 1and make rationalarguments based on information in the textbook and case thatlink each together. One example might be the loss of 210 employees and thepotential lack of skilled employees in the workforce leading to a weakenedcompetitive position.Students should then be able to mitigate the issue theyidentify. Again, regarding the loss of 210 employees due to a change in the newmanagement system, HRM can mitigate this through training employees on the newsystem, developing pathways for employees to solve problems from the newsystem, as well as redevelop the recruitment and selection practices to findemployees who can work within such a system.2)Responses should correctly identify the different outcomes of engagement fromChapter 1, and then find those examples within the case. This would include beingranked 86thBest Company to Work for 2014.3)Each one of the 10 core values could potentially be influenced or impacted byHRM. Here, again, focus should be on the rationale students provide, which,demonstrate connecting the core value (a part of strategy) to how HRM can impactit as well as students’ability to identify different roles of HRM. For example,BeAdventurous, Creative, and Open-Mindedcouldbe argued that HR has the mostimpact on (Managing the HR Environment; Acquiring and PreparingHumanResources) if students identify culture of the organization, recruitment and selectionof appropriate candidates as HRM practices.4)Time in more meetings undermines values of Create Fun; Be Adventurous; BePassionate. Employees who are worried about career advancementunderminethevalue of Pursue Growth and Learning. Both undermine Build a Positive Team andFamily Spirit, especially with the loss of 210 employees.Employees who arestruggling to understand the management system will be demotivated and lessengaged, especially if they are not sure if what they are doing is correct, orif itwilllead to promotion.Managing People:Mars Incorporated: HR Practices Help Create SweetSuccess(p. 59)Question Guidance1)Here, students should be able to identify the specific HR practices the casementions. For example, the training and career development offered or thecompensation and bonuses provided to employees. Upon identification, studentsshould be able to link these to motivation, engagement and thus high performanceof its employees.

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Chapter 1Manual–Human Resource Management: Gaining aCompetitive Advantage2)Students should be able to rationalize that HR practices contribute to the strategyof the organization, and thus probably not. Discussion should link HR practices tocompetitive advantages originating from the workforce.3)Students should be able to identify HR practices and apply them to differentindustries. For example, research and development; much like with Mars Inc.wouldimplement initiatives focused on career development and retention.4)This is briefly discussed in the case, but publicallyowned companies have otherpressures from shareholders and “Wall Street” to meet short-term gains, which mayimpedelong-term sustainability. Students may not be aware of these issues ordifferences, and further conversation may be necessary.HR in Small BusinessManaging HR at a Services Firm(p. 60)Question Guidance1)Students should be engaged in a discussion that while employee well-being andhappiness is important, there are other practices necessary for strategic success.Thus, other areas identified in Table 1.15 on page 54, and the Competencies of HRProfessionals on page14, Table 1.32)Students may identifyHuman Resource Specialist and Labor Relations Specialisthttp://www.bls.gov/ooh/business-and-financial/human-resources-specialists-and-labor-relations-specialists.htm)as the job that best fits, as others, such as HR Directors, Compensation & BenefitsManagers and Training & Development Managers (all found under Management)seem to encompass more responsibilities she does not manage.3)Differences may include having larger responsibilities more akin to the HRDirectors description found above. She would need to develop her business acumento contribute to strategic conversation, while also developing her awareness ofother HR practices.

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Chapter 2Manual-Strategic Human Resource ManagementChapter 2 Summary for InstructorsThis chapter provides an introduction of the strategic management of HRMpractices (i.e. strategic human resource management) and its role within acompany’s competiveness and competitive advantage. The chapter also juxtaposeshow human resources(i.e. employees)are the most important asset to competitiveadvantage, but also the most costly and controllable asset, leadingto a disconnectbetween personnel decisions and strategy. Within this chapter then is a discussionof how HRM practices contribute to competitive advantage and how to make suchdecisions. A chapter summary may be found on page 94.This chapter provides instructorsopportunity to illustrate how HRM contributes tostrategy, and how to make strategic decisions within HRM. First, however, it isimportant to ensure students are aware of strategic management (LO 2-1) and thegeneral approaches to strategic management (LO 2-2). Here, instructors may be ableto have students review previous material covered in a Principles ofManagement/Introduction to Business course and review different genericstrategies such as low cost or differentiation. It may be helpful for instructors toemphasize internal and external analysis (p. 73, figure 2.2) as important steps tostrategy formulation. As within Chapter 1, this can be integrated into a discussion ofgeneral business acumen for any manager or leader, not just those concerned withHRM.Instructorsmayemphasize that strategic decisions and components of the processare all people-related (LO2-3; p. 74) and thus may require further integration ofHRM and strategy formulation (LO2-4).Discussion couldinclude thedifficulty HRhas had over the years with being seen assecondary withinstrategy.ReviewingFigure 2.5 on page 77 can help emphasize how input from HR within all aspects ofthe strategic management process is important and thus a strategic necessity. Page77 also includes examples of HR-related concerns that would need to be consideredin the internal and external analysis to ensure viable strategy.It is important here tonot just simply state that employees are important to consider, but to illustrate howthese decisions may be informed through HRM as well as improved and enhancedfor better strategy.LO 2-5 and LO2-6 provides examples of how HRM practices would be chosen toalign behind different organizational strategies. Throughout the discussion,different HRM practices and processes are defined and how they may contribute isdefined.Society for Human Resource Management Body of Competency & Knowledge:This chapter contains content,which may be identified within the following contentareas:Structure of the HR FunctionOrganizational Effectiveness & Design

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Chapter 2Manual-Strategic Human Resource ManagementWorkforce ManagementTalent Acquisition & RetentionLearning &DevelopmentTotal RewardsBusiness & HR StrategyEmployee RelationsHuman Resource Certification Institute’s A Guide to the HR Body ofKnowledge:This chapter contains content which may be identified within the following contentareas:BusinessManagement & StrategyWorkforce Planning and EmploymentHuman Resource DevelopmentCompensation and BenefitsEmployee and Labor RelationsOther Classroom Materials: CONNECT and PowerPoint SlidesInstructors should review both the available PowerPoint slides and CONNECTmaterials. The available PowerPoint slides may assist instructors by providingadditional insight into the chapter materials, while expediting any classroompreparation. They may also provide visual reinforcement for students duringclassroom discussion.There are CONNECT exercises available through McGraw-Hill, which can greatlyassist student preparation for class and understanding of chapter concepts.Instructors may wish to structure the class, where students must complete theCONNECT exercises prior to class, thus, further reinforcing material and allowinginstructors to expand and challenge student understanding during class time.CONNECT exercises may be set-up to be time-based, requiring students to practicechapter materials for a specific timeframe. It is the instructors’ discretion how theydesire to include this into the course grade, but a low-stakes grading system basedon completion is suggested to help encourage student usage, while minimizingpenalties for mistakes during completion.To assist in course review, instructors may also require students to periodicallycomplete CONNECT chapters for previously read chapters. This may be beneficial tosupport students in preparation for exams, projects, or where new chapter materialexpands upon a previous chapter.Further support for instructors in setting-up the CONNECT materials may beobtained by contacting McGraw-Hill.Suggested Additional Exercise

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Chapter 2Manual-Strategic Human Resource ManagementHow was HR where you worked?Exercise #1Faculty may lead a discussion asking students to consider previous work experienceand how HR was managed there. This can help students in understanding theinformation for this chapter. Both the Self-Assessment exercise and DiscussQuestion # 3 can help assist in this assignment.-If students do not possess (or do not remember) the experience, the instructor mayask that they ask a friend/family member.Chapter 2–List of CasesEnter the World of BusinessSouthwest Airlines Hits Middle Age (p 67)Suggested Discussion QuestionsWhat do you think of when you hear, “strategic human resource management?”This could serve as an opening question to introduce students to the chapter.Responses should demonstrate a basic understanding of strategic management(internal/external analysis, SWOT analysis) and the need to allocate resourcesbehind a chosen strategy. Students may then be engaged in conversation concerninghow HRM practices,when aligned behindorganizational goals, constitutes strategichuman resource management.Within the example, the lowercost structure oflaborcoupled with strong labor relations(i.e. family culture)may be seen as aligningbehind Southwest’s strategy offer lower costs to consumers.Instructors should note thatat the end of Chapter 2on page94thereis a “Look Back”section, whichrevisits theSouthwest Airlines case and asks 3questions. Suggestedguidance for each is as follows:1)Students may focus on how the lower wage structure and strong labor relationshelped to keep Southwest’s prices for consumer tickets lower. In addition, studentsmay also wish to discuss Southwest’s different business model, and how these HRMpractices helped to support its success.2)Some challenges would includechangingrelations with labor unions, increasedcompetition and pricing pressure from other airlines,potential changesof thecompany culture. Students may benefit from the instructor dividing this discussioninto external challenges (threats) and internal challenges (weakness) and discussingthis from a strategic management approach.3)Answers may vary greatly, but students should be able to connect the generalstrategy of Southwest with the different approaches to HRM.Competing through Globalization:Facebook’s European Privacy Policy Problems (p.71)Question GuidanceInstructors may wish to guide the discussion towards the assessment thatorganizations need to determine whether standardization or localization is the best

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Chapter 2Manual-Strategic Human Resource Managementapproach to HR practices. This can be recognized within countries and locales,geographic regions as well as economic blocks (European Union). It may also bebeneficial to reflect on how the legal environment isacomponent of externalanalysis, and this assessment may be an area HRcouldcontribute to strategyformulation.Competing through Technology:The Rise of the Robot in China (p. 75)Question GuidanceInstructors may wish to facilitate the conversation around labor and economic costsfor both the country as well as the organization.Integrity in Action:3M Named One of World’s Most Ethical Companies (p. 79)Question GuidanceStudent responses should focus on ethics as both a component of operations as wellas a component of culture. Both ethical operations(i.e. actions/behaviors) and anethical culturehelps attract, retain and motivate the workforce as theywork dailytowards organizational goals.Competing through Sustainability:Starbucks Employees Go to School (p. 90)Question GuidanceTraits may include attractive compensation and benefits packages, careerdevelopment, training and skill development, education and certificationattainment, reputation and brand recognition, work-life balance andcompany-specific perquisites such as recreational rooms.These all, however, must also be acomponent of larger strategy to have satisfied and engaged employees and cannotmake-up for issues within those areas. Larger discussion can emphasize howanemployer of choice initiativehelpscompanies attract and retain employees,whichare important to organizational strategy.Answers and Guidance to End of Chapter Sections:Discussion Questions (page95), suggested guidance1)Answers may vary widely, and so the instructor may wish to ensure rationalefollows from strategy to human capital. For example, if a defensive strategy isidentified, then human capital should be positioned to focus on defense. Instructorsshould also look to seek rationale behind strengths and weaknesses, and not thespecific correct or incorrect identification.2)Instructors may look to play devil’s advocate depending on the students’response. Larger organizations may have issues with bureaucracy, but have theresources to support large HR initiatives. Smaller organizations, on the other hand,may be flexible and more open to change, but not necessarily have the resources.

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Chapter 2Manual-Strategic Human Resource Management3)Studentsshould be able to present rationale that aligns the consistent HRpractices with the strategy, while identifying how the inconsistent practices didn’talign and may have hurt the organization. Some examples might be policy onimportance of employees, but poor (or lack of) training and low wages.This may beintegrated with the Self-Assessment Exercise.4)Student’s may identify that a) strategic management withinthe HRM departmentleads toleadership recognition of such decisions and thus a role in companystrategic management process, and b) strategic management within HRMdepartment provides the foundation for the department to contribute5)Students should be able to recall the Competencies of HR Professionals fromChapter 1 and identify some of these skill sets. Some areas would be college,certification programs,andexperience within companies.6)Any number of variables may be identified, some previously discussed in Chapter1. Students should be able to rationalize those changes in their impact on HRMfunctions. For example, the aging workforce, changes healthcare and minimum wagelaws may impact compensation and benefits practices.Focus should be on theirability to identify trends in the external environment and apply them to HRMpractices.Exercising Strategy:Strategy and HRM at Delta Airlines(p. 95)Question Guidance1)The CEO’s strategy, while focused on financial performance, did not consider theimpact on employees, those who would be responsibility for operationalperformance. For instance, it is difficult to excel in operational performance(strategy implementation) when the employees who are working for the companyhave very low morale, and the other competencies important to performance areoutsourced. Strict adherence to financial performance led to inadequateconsideration of other issues that existed, or could arise due to the strategy.2)Students may identify employee morale, but should also consider employeemorale as an important driver of union activity. Thus, initiatives to manageemployee morale, as well as other internal HRM activities to improve employeeperformance and moralecouldbe considered.Managing People:Is Dell too Big for Michael Dell?(pp. 96-97)Question Guidance1)The instructor may wish to draw attention to Dell’s strategy ofa direct-salesmodel, which needed to emphasize both customer service and quality in bothconsumer and business sales. It would seem that Dell’s position has been erodeddue to competitive pressure and weakness of customer service and computerquality. Further, leadership has been stumbling with no apparent leadership benchotherthanDell now.Thus, lower price competition drove prices lower, causing

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