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Solution Manual Managing Human Resources 16th Edition By Scott Snell, George Bohlander
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Solution Manual Managing Human Resources 16th Edition By Scott Snell, George Bohlander
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Chapter 1: The Challenge of Human Resources Management 1Instructor’s Resource Guide
Solution Manual Managing Human
Resources
SIXTEENTH EDITION
By Scott Snell, George Bohlander
c h a p t e r
THE CHALLENGE OF HUMAN
1 RESOURCES MANAGEMENT
The purpose of this chapter is to acquaint students with the importance of human resources management (HRM) and
how it contributes to the achievement of an organization’s overall objectives. In this chapter we discuss how people
can be a source of competitive advantage, the competitive challenges facing firms, and the concerns of employees
themselves. Students are made aware of some of the important efforts that both large and small companies are
making to develop and utilize the talents of their people as well as the changes taking place in the work
environment. We end the chapter with a discussion of the competencies HR managers and line managers need to
possess in order to work together to make the most of employees’ talents.
Chapter Learning Outcomes
Explain how human
LEARNING resources
OUTCOME 1 managers can help their firms gain a
sustainable competitive advantage through the strategic utilization
Of people.
Explain how globalization affects human resources management.
Explain how good
LEARNING human2resources practices can help a firm
OUTCOME
achieve its corporate social responsibility and sustainability goals.
Describe
LEARNINGhowOUTCOME
technology 3can improve how people perform and are
managed.
LEARNING OUTCOME 4
,2 Chapter 2: Strategy and Human Resources Planning
Discuss
LEARNINGhow cost pressures
OUTCOME 5 affect human resources management
policies.
Discuss how firms can leverage employee differences to their
strategic advantage.
LEARNING OUTCOME 6
Explain how educational and cultural changes in the workforce
are affecting human resources management.
Provide examples
LEARNING of the roles
OUTCOME 7 and competencies of today’s HR
managers.
LEARNING OUTCOME 8
Lecture Outline
I. WHY STUDY HUMAN RESOURCES MANAGEMENT?
Figure 1.1 will be useful as you discuss this question. The answer to this question is much
the same whether the student plans on a career in HRM or not. Organizations compete
through people. Studying HRM gives students an understanding of the systems and processes
needed to develop and utilize the talents and energies of employees in order for the firm to
gain a competitive advantage.
A. Human Capital and HRM
The idea that organizations “compete through people” highlights the fact that achieving success
increasingly depends on an organization’s ability to manage talent, or human capital. The term human
capital describes the economic value of employees’ knowledge, skills, and capabilities.
II. COMPETITIVE CHALLENGES AND HUMAN RESOURCES MANAGEMENT
Highlights in HRM 1-3 and Figures 1.2 will be useful in your discussion of these
challenges. The Society for Human Resource Management (SHRM) and the Commerce
Clearinghouse have identified the most important trends facing human resources.
Reinforce the idea that large and small companies are equally affected by these trends.
A. Challenge 1: Responding Strategically to Changes in the Marketplace
Given the pace of commerce, organizations can rarely stand still for long. In today’s highly
competitive environments in which competition is global and innovation is continuous, being able to
adapt has become the key to capturing Opportunities and Overcome Obstacles as well as the very
survival of organizations.
,3 Chapter 2: Strategy and Human Resources Planning
Programs focused on total quality management, Six Sigma efforts
downsizing, reengineering, outsourcing, offshoring, and the like are all examples
of organizations making changes to modify the way they operate to be more
successful. Some of these changes are reactive, while others are proactive and
designed to take advantage of targeted opportunities.
To meet customers’ expectations, managers must focus on quality,
innovation, variety, and responsiveness. Total quality management (TQM) is a
set of principles and practices developed in the 1940s by Edward Deming after
studying Japanese companies. The core ideas of TQM include understanding
customers’ needs, doing things right the first time, and striving for continuous
improvement. More recently, companies have adopted a more systematic
approach to quality, called Six Sigma, which is a statistical method of translating
a customer’s needs into separate tasks and defining the best way to perform each
task in concert with the others. The Malcolm Baldrige National Quality Award has
provided the impetus for both large and small companies to rethink their approach
to HRM.
Six Sigma initiatives work best when organizations make other changes in
their HRM philosophies and programs. The connection of HR to Six Sigma
begins with the formation of teams and extends to training, performance
management, communications, culture, and even rewards.
Mention that programs such as TQM and Six Sigma balance two
opposing forces: (1) the need for order/control (pulls organizations toward
stability) and (2) the need for growth/creativity (drives toward disintegration).
HR practices help managers balance these two forces and again, shift the focus of
the HR department from routine, functional tasks to strategic personnel
management.
Reengineering goes beyond TQM and Six Sigma to include more
“fundamental rethinking and radical redesign of business processes to achieve
dramatic improvements in cost quality, service, and speed.” HR issues include
creating an environment for change, ensuring effective leadership and
, 4 Chapter 2: Strategy and Human Resources Planning
communication processes, and reviewing and modifying administrative systems
(e.g., selection, job descriptions, training, career planning, performance
appraisal, compensation, and labor relations).
Spend some time discussing with students both the opportunities afforded
by international business and the difficulties in managing a global workforce.
Mention the challenges of different geographies, cultures, laws, and business
practices such as offshoring. HRM issues such as staffing, training,
compensation, and labor relations lie at the heart of these concerns. Mention to
students that an entire chapter (Chapter 15) will be devoted to international
issues in HRM.
Explain to students that organizations that fail to change, don’t survive. Ask
students what changes they think are most important today. Ask them how HRM
issues are involved. Refer to the textbook for a list of some of the major reasons
why change efforts can fail and how, by contrast, some companies manage
change effectively.
B. Human Resources Managers and Business Strategy
Ten or 20 years ago, human resources personnel were often relegated to conducting administrative
tasks. But that has changed. Executives know that human resource professionals can help them
improve not only a company’s bottom line by streamlining employment costs but the top line by
forecasting labor trends, designing new ways to acquire and utilize employees, measuring their
effectiveness, and helping managers enter new markets.
C. Challenge 2: Competing, Recruiting, and Staffing Globally
Today companies of all sizes are seeking business opportunities in global
markets, or are engaging in globalization in some way. In fact, according to the
U.S. Small Business Administration, nearly 97 percent of all U.S. exporters are
small companies, and these firms employ about half of all the private-sector
employees in the nation. The World Trade Organization (WTO) and its 150
member countries are establishing free trade globally. The WTO utilizes the
General Agreement on Tariffs and Trade (GATT) to establish rules and guidelines
for over 97 percent of world commerce. On a regional basis, the North
American Free Trade Agreement (NAFTA), European Unification (EU), and
APEC (Asia Pacific Economic Cooperation) are the major agreements among
many forged to establish freer trade among countries in various parts of the world.
Two events will likely expand globalization further: China’s increasing
commitment to free trade and the expansion of the EU country bloc.
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