Part One

Introduction and
Background of Human
Resources
1. Human Resource Management: A Strategic Function
2. Equal Employment Opportunity: The Legal Environment
3. Implementing Equal Employment Opportunity
4. Job Analysis and Job Design

Image Source/PunchStock
Chapter One

Human Resource
Management:
A Strategic Function
Chapter Learning Objectives 5. Identify several challenges today’s
human resource managers currently face.
After studying this chapter, you should be
able to: 6. Outline several potential challenges
and contributions that an increasingly
1. Define human resource management. diverse workforce presents.
2. Describe the functions of human 7. Discuss the role of human resource
resource management. managers in the future.
3. Summarize the types of assistance the 8. Explain how human resource managers
human resource department provides. can affect organizational performance.
4. Explain the desired relationship 9. Summarize several guidelines to follow
between human resource managers when communicating human resource
and operating managers. programs.

Chapter Outline Communicating Human Resource Programs

Guidelines for Communicating Human
Human Resource Functions
Resource Programs
Who Performs the Human Resource
Functions? Summary of Learning Objectives
The Human Resource Department Key Terms
Challenges for Today’s Human Resource Review Questions
Managers Discussion Questions
Diversity in the Workforce Incident 1.1: Human Resource Management
Regulatory Changes and Professionals
Structural Changes to Organizations Incident 1.2: Choosing a Major
Technological and Managerial Changes Exercise 1.1: Changes in Terminology
within Organizations
Exercise 1.2: Justifying the Human
Human Resource Management in the Future
Resource Department
Organizational Performance and the
Exercise 1.3: Test Your Knowledge
Human Resource Manager
of HR History
Metrics and the HR Scorecard
Exercise 1.4: Are You Poised for Success?
Notes and Additional Readings

human resource Human resource management (HRM) encompasses those activities designed to provide
management for and coordinate the human resources of an organization. The human resources (HR) of an
Activities designed to provide organization represent one of its largest investments. In fact, government reports show that ap-
for and coordinate the human
proximately 64 percent of national income is used to compensate employees.1 The value of an or-
resources of an organization.
ganization’s human resources frequently becomes evident when the organization is sold. Often the
3
4 Part One Introduction and Background of Human Resources

purchase price is greater than the total value of the physical and financial assets. This difference,
sometimes called goodwill, partially reflects the value of an organization’s human resources. In
addition to wages and salaries, organizations often make other sizable investments in their hu-
man resources. Recruiting, hiring, and training represent some of the more obvious examples.
Human resource management is a modern term for what was traditionally referred to as per-
sonnel administration or personnel management. However, some experts believe human resource
management differs somewhat from traditional personnel management. They see personnel man-
agement as being much narrower and more clerically oriented than human resource management.
For the purposes of this book, we will only use the term human resource management.

HUMAN RESOURCE FUNCTIONS

human resource Human resource functions refer to those tasks and duties performed in both large and
functions small organizations to provide for and coordinate human resources. Human resource functions
Tasks and duties human encompass a variety of activities that significantly influence all areas of an organization. The
resource managers perform
(e.g., determining the
Society for Human Resource Management (SHRM) has identified six major functions of
organization’s human resource human resource management:
needs; recruiting, selecting,
developing, counseling, and
1. Human resource planning, recruitment, and selection.
rewarding employees; acting 2. Human resource development.
as liaison with unions and 3. Compensation and benefits.
government organizations;
and handling other matters of 4. Safety and health.
employee well-being). 5. Employee and labor relations.
6. Human resource research.
Table 1.1 identifies many of the activities that comprise each major human resource function.
Ensuring that the organization fulfills all of its equal employment opportunity and other govern-
ment obligations is an activity that overlays all six of the major human resource functions.

TABLE 1.1 Human Resource Planning, Recruitment, and Selection

Activities of the Major
Human Resource Functions • Conducting job analyses to establish the specific requirements of individual jobs within the organization.
• Forecasting the human resource requirements the organization needs to achieve its objectives.
• Developing and implementing a plan to meet these requirements.
• Recruiting the human resources the organization requires to achieve its objectives.
• Selecting and hiring human resources to fill specific jobs within the organization.
Human Resource Development
• Orienting and training employees.
• Designing and implementing management and organizational development programs.
• Building effective teams within the organizational structure.
• Designing systems for appraising the performance of individual employees.
• Assisting employees in developing career plans.
Compensation and Benefits
• Designing and implementing compensation and benefit systems for all employees.
• Ensuring that compensation and benefits are fair and consistent.
Safety and Health
• Designing and implementing programs to ensure employee health and safety.
• Providing assistance to employees with personal problems that influence their work performance.

Employee and Labor Relations

• Serving as an intermediary between the organization and its union(s).
• Designing discipline and grievance handling systems.
Human Resource Research
• Providing a human resource information base.
• Designing and implementing employee communication systems.
 Chapter 1 Human Resource Management: A Strategic Function 5

talent management Talent management is a relatively new and all-encompassing term used in the human
The broad spectrum of resources field. Talent management refers to the broad spectrum of HR activities involved
HR activities involved in in obtaining and managing the organization’s human resources. This includes everything
obtaining and managing
the organization’s human from crafting a job advertisement to tracking an employee’s progress up the career ladder to
resources. separation of the employee from the organization.2 The specific aspects of talent management
are covered in the different chapters of this book.
In an attempt to cover each of the major areas of human resource management, this
book contains six major sections. Part 1 serves as an introduction and presents material
that applies to all major human resource functions. It contains an introductory chapter,
two chapters on equal employment opportunity, and a chapter on job analysis and design.
Part 2 explores those human resource functions specifically concerned with acquiring
the organization’s human resources: human resource planning, recruiting, and selecting.
Part 3 concentrates on those functions related to the training and development of the or-
ganization’s human resources. This section includes chapters on orientation and employee
training, management and organization development, career planning, and performance
appraisal. Part 4 covers the basic aspects of employee compensation: the organizational
reward system, base wage and salary systems, and incentive pay systems, and employee
benefits. Part 5 deals with employee well-being and labor relations. This part includes
chapters on safety and health, employee relations, unions, and the collective bargaining
process. Issues related to globalization of HR are dispersed throughout the relevant chap-
ters of the book.

operating manager Who Performs the Human Resource Functions?

Person who manages Most managers are periodically involved to some extent in each of the major human resource
people directly involved functions. For example, at one time or another, almost all managers are involved in some
with the production of an aspect of employee recruiting, selecting, training, developing, compensation, team building,
organization’s products or
services (e.g., production and evaluation. In small organizations, most human resource functions are performed by the
manager in a manufacturing owner or by operating managers. These managers perform the human resource functions
plant, loan manager in a bank). in addition to their normal managerial activities. Many medium-size and even some large
organizations use human resource generalists. A human resource generalist devotes a
human resource
majority of his or her working time to human resource issues, but does not specialize in
generalist
Person who devotes a majority any specific areas of human resource management. Large organizations usually have a
of working time to human human resource department that is responsible for directing the human resource functions.
resource issues, but does not In addition to one or more human resource generalists, such a department is normally staffed
specialize in any specific areas. by one or more human resource specialists. These specialists are trained in one or more
human resource specific areas of human resource management. However, even in large organizations that
specialist have a human resource department with many human resource generalists and specialists,
Person specially trained in most operating managers must regularly perform and be involved with many of the human
one or more areas of human resource functions.
resource management (e.g.,
labor relations specialist, wage The Human Resource Department
and salary specialist).
As mentioned previously, most medium-size and some large organizations use human resource
generalists and do not have a human resource department. In these situations, the functions
performed by human resource generalists are essentially the same as those that would be per-
formed by a human resource department. Therefore, the following discussion also applies to
the role of human resource generalists in organizations that do not have a human resource
department.
The primary function of a human resource department is to provide support to operating
managers on all human resource matters. Thus, most human resource departments fulfill a
traditional staff role and act primarily in an advisory capacity. In addition to advising operating
managers, a human resource department customarily organizes and coordinates hiring and
training; maintains personnel records; acts as a liaison between management, labor, and
government; and coordinates safety programs. Therefore, accomplishing the human resource
goals of an organization requires close coordination between the human resource department
and the operating managers.
Precisely how all of the functions related to human resources are split between operating
managers and the human resource department varies from organization to organization. For
6 Part One Introduction and Background of Human Resources

TABLE 1.2
Specific Services Advice Coordination
Examples of the Types
of Assistance Provided Maintaining employee records Disciplinary matters Performance appraisals
by a Human Resource Handling initial phases of employee Equal employment Compensation matters
Department orientation opportunity matters

example, the human resource department in one company may do all the hiring below a certain
level. In another company, all the hiring decisions may be made by operating managers, with
the human resource department acting only in an advisory capacity.
It is helpful to view the human resource department as providing three types of assist-
ance: (1) specific services, (2) advice, and (3) coordination. Table 1.2 presents some typical
examples of each of these types of assistance. Figure 1.1 illustrates the different roles a human
resource department or a human resource generalist might fill.
As stated earlier, a human resource department normally acts in an advisory capacity
and does not have authority over operating managers. As a result, conflict can occur when
operating managers appear to ignore the suggestions and recommendations of the human
resource department. If the human resource department is to be effective, it must continually
cultivate good relations with operating managers. Likewise, operating managers must under-
stand the human resource functions to effectively utilize the human resource department.

CHALLENGES FOR TODAY’S HUMAN RESOURCE MANAGERS

Human resource management has expanded and moved beyond mere administration of the
traditional activities of employment, labor relations, compensation, and benefits. Today HRM
is much more integrated into both the management and the strategic planning process of the
organization.3
One reason for this expanded role is that the organizational environment has become much
more diverse and complex. Compared to a workforce historically dominated by white males,
today’s workforce is very diverse and projected to become more so. Diversity in the work-
force encompasses many different dimensions, including sex, race, national origin, religion,
age, sexual orientation, and disability. Diversity in the workplace presents new and differ-
ent challenges for all managers. Other challenges are the result of changes in government
requirements, organizational structures, technology, and management approaches. Each of
these issues is discussed below.

Diversity in the Workforce

Recent forecasts by the U.S. Bureau of Labor Statistics project that the total U.S. labor force
will consist of only 33 percent white, non-Hispanic males by the year 2018.4 Table 1.3 shows
the projected numbers of entrants and leavers in the total workforce of the groups shown for

FIGURE 1.1
Three Types of Assistance Specific services
Provided by a Human
Resource Department

Human resource
Advice Operating manager
department

Coordination
 Chapter 1 Human Resource Management: A Strategic Function 7

TABLE 1.3 2008–18

Civilian Labor Force, 2008,
Group* 2008 Entrants Leavers Stayers 2018
and Projected 2018;
Entrants and Leavers, Number, 16 years and older
Projected 2008–18 Total 154,287 37,632 25,008 129,279 166,911
Men 82,520 20,429 14,267 68,253 88,682
Source: Mitra Toossi, “Labor Force
Projections to 2018: Older Workers Women 71,767 17,203 10,741 61,026 78,229
Staying More Active,” Monthly Labor
Review, November 2009, p. 47. White 125,635 27,990 21,135 104,500 132,490
Men 68,351 15,554 12,174 56,177 71,731
Women 57,284 12,436 8,961 48,323 60,759

Black 17,740 5,403 2,899 14,841 20,244

Men 8,347 2,673 1,441 6,906 9,579
Women 9,393 2,730 1,458 7,935 10,665

Asian 7,202 2,837 694 6,508 9,345

Men 3,852 1,493 450 3,402 4,895
Women 3,350 1,344 244 3,106 4,450

All other groups** 3,710 1,402 280 3,430 4,832

Men 1,970 709 202 1,768 2,477
Women 1,740 693 78 1,662 2,355

Hispanic origin 22,024 9,237 1,957 20,067 29,304

Men 13,255 5,078 1,282 11,973 17,051
Women 8,769 4,159 675 8,094 12,253

Other than Hispanic 132,263 28,395 23,051 109,212 137,607

Men 69,265 15,351 12,985 56,280 71,631
Women 62,998 13,044 10,066 52,932 65,976

White Non-Hispanic 105,209 20,847 19,222 85,987 106,834

Men 55,971 11,907 10,803 45,168 57,075
Women 49,238 8,940 8,419 40,819 49,759

*Numbers in thousands.
**The “All other groups” category includes those classed as of multiple racial origin, the race categories of American Indian and Alaska
Native, or Native Hawaiian and Other Pacific Islanders.

the years 2008–2018. As the table indicates, almost half the new entrants during that time
span will be women. This one dimension of diversity has many ramifications for organizations
in the areas of child care, spouse relocation assistance programs, pregnancy leave programs,
flexible hours, and stay-at-home jobs.
These same projections also predict that white, non-Hispanic males will comprise fewer
than one-third of new labor force entrants for the years 2008–2018. In 2008, Hispanics repre-
sented approximately 14 percent of the labor force, with over 22 million workers. This figure
is expected to grow by more than 7.3 million by 2018 to a total of 29.3 million. The Asian
labor force, which is the smallest group in the U.S. labor force, is expected to have the second
highest (behind Hispanics) annual rate of growth from 2.6 percent of the total U.S. work force
in 2008 to 5.6 percent by 2018. In addition to the possibility of having differing educational
backgrounds, immigrant employees are likely to have language and cultural differences.
Organizations must begin now to successfully integrate these people into their workforces.
Almost everyone has heard the phrase “the graying of America.” By the year 2018, the
average age of employees will climb to 42.3 from 41.2 in 2008 and from 34.8 in 1978.5 With
the aging of the overall U.S. population along with the emergence of the baby boomers, the
percentage of older employees in the labor force is also expected to increase. The increase in
the percentage of older employees will have a mixed effect. The older workforce will likely
be more experienced, reliable, and stable, but possibly less adaptable to change and retraining.
One result of this trend is that the retirement age has already begun to increase.
8 Part One Introduction and Background of Human Resources

Globalization of HR
Another dimension of diversity is related to the increasing globalization of many companies.
As companies become more global, diversity must be defined in global and not just Western
terms.6 Defining diversity in global terms means looking at all people and everything that makes
them different from one another, as well as the things that make them similar. Differentiating
factors often go beyond race and language and may include such things as values, habits,
and customs. A recent survey conducted by Jeitosa Group International and the International
Association for Human Resource Information Management identified the following areas as
key human resource–related challenges facing global companies:
• Cultural differences (53 percent).
• Compliance with data-privacy regulations (42 percent).
• Varying economic conditions across countries (36 percent).
• Time zone differences (32 percent).
• Legal environment (32 percent).
• International compliance (26 percent).7
Keeping diversity in mind , one key to a successful global HR program is to rely on local
people to deal with local issues. This approach only makes sense when one considers the fact
that locals almost always have a better understanding of local diversity-related issues.

Challenges and Contributions of Diversity

What challenges and contributions does the increasingly diverse workforce present? From
an overall viewpoint, organizations must get away from the tradition of fitting employees
into a single corporate mold.8 Everyone will not look and act the same. Organizations must
create new human resource policies to explicitly recognize and respond to the unique needs
of individual employees.
Greater diversity will not only create certain specific challenges but also make some important
contributions. Communication problems are certain to occur, including misunderstandings
among employees and managers as well as the need to translate verbal and written materials
into several languages. Solutions to these problems will necessitate additional training involving
Organizations must
successfully integrate
work in basic skills such as writing and problem solving. An increase in organizational
different cultures and age factionalism will require dedicating increasing amounts of time to dealing with special interest
groups. Photodisc/PunchStock and advocacy groups.
In addition to creating the above challenges, greater diversity presents new opportunities.
Diversity contributes to creating an organizational culture that is more tolerant of different
behavioral styles and wider views. This often leads to better business decisions. Another
potential payoff is a greater responsiveness to diverse groups of customers.
The increasing diversification of the workplace is fact. Learning to effectively manage
a diverse workforce should be viewed as an investment in the future. HRM in Action 1.1
describes how and why Scotiabank of Canada encourages diversity among its workforce.

Regulatory Changes
The deluge of government regulations and laws has placed a tremendous burden on human
resource managers. Organizations face new regulations routinely issued in the areas of environ-
ment, safety and health, equal employment opportunity, pension reform, and quality of work
life. Often new regulations require significant paperwork and changes in operating procedures.
Implementing these changes frequently falls on human resource managers. In addition, every
year thousands of cases relating to the interpretation of human resource issues are brought
before the courts. Once a case has been decided, human resource managers must implement
the findings. Many of the new changes to health care and health insurance will have to be im-
plemented by human resource personnel and will have a significant impact on their activities.

Structural Changes to Organizations

In recent times, organizations have undergone many structural changes that present challenges
for human resource managers—and they continue to face such changes. Some of the structural
HRM in Action 1.1

ENCOURAGING DIVERSITY AT SCOTIABANK career fairs, and targeted recruitment materials. One example
Scotiabank Group, one of Canada’s leading financial of how Scotiabank attracts diverse groups is regarding
institutions, is a firm believer that diversity is good for employees with disabilities. A central budget, known as the
business. At Scotiabank diversity is more about having an Scotiability Fund, has been established to pay for measures
employee population that mirrors its customers and less required to accommodate these employees. This ensures
about compliance measures. Cory Garlough, vice president, that funding is not an issue for any departments or branches
employee relationships, believes there are many additional when it comes to hiring employees with disabilities. Quoting
benefits to diversity: “Having a more diverse workforce Garlough, “Our goal is to remove barriers so that employees
has resulted in more creativity and innovation in our who have disabilities feel comfortable that they can be
services. Input from a variety of different groups influences accommodated and successful.”
everything from branch layout to marketing materials.”
Scotiabank operates under an “inclusive umbrella” and
reaches out to attract and retain many diverse groups of Source: Neil Crawford and Andres Tapia, “Diving Deeper into the
employees through university recruitment efforts, specialized Talent Pool,” Benefits Canada, January 2008, pp. 19–23.

downsizing changes are caused by downsizing, outsourcing, rightsizing, and reengineering. Downsizing
Laying off large numbers is laying off large numbers of managerial and other employees. As a result of downsizing and/
of managerial and other
employees.
or attempts to reduce costs, many companies are outsourcing services that the human resource
department previously provided. Outsourcing is subcontracting work to an outside company
outsourcing that specializes in that particular type of work. Some examples of human resource services
Subcontracting work to being outsourced include retirement plan administration, payroll, training, and management
an outside company that
specializes in that particular
development programs. Under the right circumstances outsourcing certain HR activities can be
type of work. more efficient and less costly. A recent survey by Hewitt Associates, a global human resources
services firm, of 104 organizations, approximately two-thirds of which are publicly traded
companies, found that most of the responding companies have achieved their expected benefits
from outsourcing. The survey also reported that one-third of the responding companies were
currently more inclined to outsource than they were two years ago.9 Organizations that human
resource tasks are outsourced to are referred to as professional employer organizations (PEO’s).
PEO’s provide integrated services to effectively manage human resource responsibilities and
employer risks for clients.10
rightsizing Rightsizing is the continuous and proactive assessment of mission-critical work and its
Continuous and proactive staffing requirements.11 Rightsizing differs from downsizing in that it is an ongoing planning
assessment of mission-critical process to determine the optimal number of employees in every area of the organization. Other
work and its staffing
requirements. companies are implementing reengineering programs. Reengineering is a fundamental re-
thinking and radical redesign of business processes to achieve dramatic improvements in cost,
reengineering quality, service, and speed.12 In essence, reengineering usually results in sweeping changes in
Fundamental rethinking and management and organizational structures.
radical redesign of business
processes to achieve dramatic
improvements in cost, quality,
Technological and Managerial Changes within Organizations
service, and speed. New technologies and management approaches have added to the challenges facing human
resource managers. While the technological changes affecting human resource managers are
widespread, none are more dramatic than those related to information systems. In addition
to their uses in performing the traditional functions of accounting and payroll calculations,
computerized information systems are now being used to maintain easily accessible employee
data that are valuable in job placement and labor utilization. Information systems are also
being used in employee training, succession planning, and compensation management, and to
track and report affirmative action activity. Cyberspace and the Internet are changing the way
many human resource managers operate. Today more and more human resource managers are
going online to recruit personnel, conduct research using electronic databases, send e-mail,
and engage in valuable networking and discussions.
Many organizations have implemented Web-based human resource systems that allow
employees to complete many HR-related tasks online. These systems are sometimes
referred to as electronic human resources (eHR). These self-service systems have the ad-
vantages of employee convenience, immediate response, increased accuracy, and reduced
9
HRM in Action 1.2

INTRODUCING eHR AT PHILIPS ELECTRONICS AND If the image IT already has within an organization is
PHILIPS NETHERLANDS positive, the eHR should be relatively easy to implement. If
Philips Electronics Netherlands and Philips Netherlands not, one should expect a slow process of gaining trust and
together employ over 1,000 people in Eindhoven, credibility while implementing eHR. The second finding
Netherlands. After eHR had been implemented at both indicates that employees will be more positive towards an
Philips facilities, a survey was conducted to determine the eHR implementation if they prefer a strategic role for HR as
employees’ attitudes toward the new system. The survey opposed to a more transactional role.
was conducted online and included 99 managers and 257 One overall conclusion from the Philips’ experience is
nommanagers. that organizations should not leave the introduction of eHR
While many factors influence employee attitudes toward to the technical people alone.
eHR, two main factors were found to impact attitude towards
eHR: (1) Previous experiences with Information Technology Sources: “The Introduction of e-HRM at Philips: Some Lessons for
(IT) systems and (2) the employee’s preferences as to the Large Organizations: Don’t Leave It All to the Technical Specialists,”
Human Resource Management International Digest 16, No. 2
role played by HR in the organization. The first finding (2008), p. 20; and M. Voermons and M. van Veldhoven, “Attitudes
implies that for an eHR implementation to be successful, the Towards e-HRM: An Empirical Study at Philips,” Personnel Review
broader IT environment should be taken into consideration. 36, No. 6 (2007), p. 887.

costs. Some examples of self-service HR-related options include payroll systems that let
employees input hours worked and requests for vacation time, payroll direct deposits that
allow employees to view current and historical pay information, and various aspects of ben-
efits administration.
Since the introduction of eHR in the 1990s, the fundamentals of eHR products haven’t
changed because the basic problems they address are the same.13 However, the manner in
which the eHR products are delivered and maintained has undergone a major overhaul and vast
improvement. As part of this evolution, the costs have dropped and what used to take months
to implement can now be done in hours. Another reason for the growth of eHR products is
that today’s employees are much more receptive to being sent to a Web site for information.
Because of the widespread use of information systems and technology in the HR field, specific
applications as related to the different HR functions are discussed throughout this book. HRM
in Action 1.2 discusses some of the lessons learned from implementing eHR at two Philips
facilities in the Netherlands.
telecommuting More and more frequently, companies are using telecommuting. Options range from
Working at home by using an allowing employees to work at home one day a week to running entire projects, or even firms,
electronic linkup with a central through electronic communication, with employees all over the country or even on different
office.
continents working closely together, yet never meeting face to face.
empowerment Empowerment of employees and self-managed work teams are two specific management
Form of decentralization that approaches that are having a significant impact on today’s human resource managers.
involves giving subordinates Empowerment is a form of decentralization that involves giving subordinates substantial
substantial authority to make
decisions. authority to make decisions. Under empowerment, managers express confidence in the ability
of employees to perform at high levels. Employees are also encouraged to accept personal
self-managed work teams responsibility for their work. In organizations using self-managed work teams, groups
Groups of peers are responsible of employees do not report to a single manager; rather, groups of peers are responsible for a
for a particular area or task.
particular area or task.
The breadth of the changes in so many areas—workforce diversity, the regulatory envi-
ronment, organizational structure, new technologies, management approaches—will have a
powerful impact on today’s human resource managers.

Human Resource Management in the Future

To meet the challenges of the future, tomorrow’s human resource departments must possess
different competencies and be much more sophisticated than their predecessors.14 Given the
expanding role human resource departments must fill, it is essential that human resource
managers be integrally involved in the organization’s strategic and policy-making activities.
Fortunately, there are signs that this is happening in many organizations. For example, in
10
 Chapter 1 Human Resource Management: A Strategic Function 11

the majority of Fortune 500 companies, the head of the human resource department is an
officer (usually a vice president) who answers to the chief executive officer (CEO). In many
companies, the head of the human resource department sits on the board of directors, the plan-
ning committee, or both.
If tomorrow’s human resource managers are to earn the respect of their colleagues and
top management, they must overcome certain negative impressions and biases sometimes
associated with human resource management. They can do so in several ways. First, human re-
source managers should become well-rounded businesspeople. In addition to having a sound
background in the basic disciplines of the profession, human resource professionals need to
understand business complexities and strategies.15 The following suggestions can help human
resource managers become more familiar with their businesses:
• Know the company strategy and business plan.
• Know the industry.
• Support business needs.
• Spend more time with the line people.
• Keep your hand on the pulse of the organization.
• Learn to calculate costs and solutions in hard numbers.16
A 2007 survey of 589 HR professionals by the Society for Human Resource Management
(SHRM) found that nearly two-thirds of HR professionals viewed their department’s role as
equally strategic and transactional; only one-third reported their department’s role as prima-
rily transactional. HR professionals from small organizations were more likely than those
from large organizations to report that they viewed their HR functions as being primarily
transactional.17 A 2008 poll also conducted by SHRM of 345 randomly selected HR profes-
sionals found that 58 percent of the respondents believed that HR’s role in their organization’s
strategic planning had increased significantly.18 A British survey published in 2009 of 269 HR
professionals reported that 65 percent of the respondents believed that the HR profession
was more strategic than when they began their careers.19 Outsourcing many of the clerical
functions, eHR, and the use of other computerized information systems (discussed further in
Chapter 5) have all contributed to making today’s HR managers more strategic.
HR professionals who thoroughly understand their businesses will help overcome the
common idea that human resource people are unfamiliar with the operating problems and
issues facing the organization. Figure 1.2 lists several pertinent questions that human resource
managers should be able to answer to develop greater understanding of the organization’s
business strategies. HRM in Action 1.3 describes why and how Cardinal Health is expanding
the strategic role of its HR functions.
Human resource managers should also become fully knowledgeable about present and
future trends and issues in HR and other related fields. This will help them guard against
becoming enamored with passing fads or ineffective techniques.
Finally, human resource managers should promote effective human resource utilization
within the organization. Rather than taking a moralistic approach when dealing with operating
managers, human resource managers should stress the importance of increasing profits
through effectively using the organization’s human resources. In this light, human resource
managers should learn to be proactive and seize opportunities to demonstrate how they can
positively affect the bottom line.

FIGURE 1.2
• What are the goals of the organization over the next year, 3 years, 5 years, and 10 years?
Questions for
• How would you describe the organization’s core business?
Understanding the
• How does your organization compare with competitors in market share and customer service?
Organization’s Business
• Will the company be growing via merger and acquisition or from internal growth?
Strategy
• Will growth be local, national, or global?
Source: Adapted from Daphne Woolf, • Will growth be from expansion of current businesses or from an expansion in scope?
“The Long Road to the Executive
• Instead of growth, will there be downsizing and if so, why?
Boardroom,” Canadian HR Reporter,
June 17, 2002, pp. 7–8. • What are the organization’s revenue objectives over the short and long terms?
HRM in Action 1.3

HR TAKING A MORE STRATEGIC ROLE while establishing new HR field operations. Cardinal has
AT CARDINAL HEALTH outsourced the more administrative HR functions by signing
Cardinal Health, based in Dublin, Ohio, ranks 19th on the a multiyear contract with ExcellerateHRO, which is jointly
Fortune 500 list and is a major provider of health-care owned by EDS and Towers Perrin.
products, services, and technologies. Forty-two percent of Cardinal’s management believes that these changes will
Cardinal’s 55,000 employees live outside the United States. enable the company to make HR a more strategic player
Corporate leaders at Cardinal recently decided that the and greatly increase its global HR capabilities. Cardinal’s
company’s competitive advantage lies in its people. As a result new perspective on HR comes in the aftermath of very rapid
of their decisions, the company is concentrating its human growth, zooming from $7.8 billion to $74.9 billion over the
resource efforts on more strategic issues and outsourcing the past 10 years.
more administrative functions. Cardinal is placing human
resource “business partners” across the company who focus Source: Mark Schoeff Jr., “Cardinal Health HR to Take More
on strategic activities such as finding and developing talent Strategic Role,” Workforce Management, April 24, 2006, pp. 7–8.

ORGANIZATIONAL PERFORMANCE AND THE HUMAN RESOURCE MANAGER

There is no doubt that human resource managers spend considerable time working on prob-
lems and concerns related to the human side of the organization. Because of this, many people
perceive human resource managers as being concerned only with matters that relate directly to
the human side of the organization. Contrary to this view, human resource managers can have
a direct impact on organizational performance in a number of specific ways:
1. Reducing unnecessary overtime expenses by increasing productivity during a normal day.
2. Staying on top of absenteeism and instituting programs designed to reduce money spent
for time not worked.
3. Eliminating wasted time by employees through sound job design.
4. Minimizing employee turnover and unemployment benefit costs by practicing sound
human relations and creating a work atmosphere that promotes job satisfaction.
5. Installing and monitoring effective safety and health programs to reduce lost-time
accidents and keep medical and workers’ compensation costs low.
6. Properly training and developing all employees so they can improve their value to the
company and do a better job of producing and selling high-quality products and services
at the lowest possible cost.
7. Decreasing costly material waste by eliminating bad work habits and attitudes and poor
working conditions that lead to carelessness and mistakes.
8. Hiring the best people available at every level and avoiding overstaffing.
9. Maintaining competitive pay practices and benefit programs to foster a motivational
climate for employees.
10. Encouraging employees, who probably know more about the nuts and bolts of their jobs
than anyone else, to submit ideas for increasing productivity and reducing costs.
11. Installing human resource information systems to streamline and automate many human
resource functions.20

Metrics and the HR Scorecard

As a direct result of increasingly available information and computer systems, the human
resource department can use numerous strategies to contribute to the bottom line.21 The basic
idea behind these strategies is to translate knowledge of human resources into terms that have
metrics
Any set of quantitative tangible and recognizable economic benefits, especially to operating managers.
measures used to assess Metrics refers to any set of quantitative measures used to assess workforce performance.
workforce performance. Examples of metrics that HR might use include such things as analysis of the cost per hire,
12
 Chapter 1 Human Resource Management: A Strategic Function 13

average length of time to fill a position, training cost per employee, turnover cost per employee,
and new-hire performance by recruiting strategy.
While the HR metrics discussed in the previous paragraph relate specifically to measures
about people in the organization, there is also a need to measure the overall contribution of the
HR scorecard HR function to the well-being of the organizations. The HR scorecard is one method used to
A measurement and control do this.
system that uses a mix of The HR scorecard is basically a modified version of the balance scorecard system applied
quantitative and qualititative
measures to evaluate to the human resources function. The balance scorecard system is a measurement and control
performance. system that uses a mix of quantitative and qualitative measures to evaluate performance. The
HR scorecard is discussed in more depth in Chapter 11.

COMMUNICATING HUMAN RESOURCE PROGRAMS

Communicating human resource programs has been compared to marketing a new product.22
Consider the fact that approximately 90 percent of all new consumer products fail. In some
cases, the failure is due to a poor product that does not fill a current need. In other cases
however, the product fails because of a breakdown in the marketing system. The product may
have been inadequately researched , the salespeople may not have been properly trained , the
distribution system may have been poor, or the overall marketing strategy may have been
misguided. Unfortunately, many well-designed human resource programs also fail because
they are not properly “marketed.” In today’s world of global companies, communicating with
employees located throughout the world can present even greater problems. A recent survey
by Watson Wyatt found that U.S. companies “are stingy when it comes to allocating human
and financial resources to communicate with their workforces overseas.”23
communication Communication is much more than talking, speaking, and reading. True communication
Transfer of information that is takes place when an understanding has been transferred from one party or source to another.
meaningful to those involved. Therefore, communication can be defined as the transfer of information that is meaningful to
those involved.
In this light, each and every one of the human resource functions discussed in this book
requires some degree of effective communication to succeed. For example, think of the impor-
tant role communication plays in career planning, recruiting, and performance appraisal. In all
too many instances, human resource managers spend tremendous amounts of time developing
very good programs, only to subsequently do a poor job of communicating them. The end
result is often great programs that go largely unused.
A human resource manager’s first step in becoming an effective communicator is to de-
velop an appreciation for the importance of communication. The problem is not that human
resource managers tend to belittle the importance of communication; rather, they often fail to
think consciously about it.

Guidelines for Communicating Human Resource Programs

As just discussed, it is helpful for human resource managers to develop a marketing approach
when implementing their programs. Even when this is successfully done, numerous other
communication-related guidelines remain to follow. Some of these are discussed next.24
Avoid communicating in peer group or “privileged-class” language. The level of
communication should be determined by the receiving audience and not by the instigator
of the communication. Take the common procedure for developing employee benefit
information. Often a highly educated writer makes a first draft and gives it to the
department head. The department head, being a specialist, then adds a few “clarifying”
remarks. The company lawyer and perhaps an actuary or an insurance person then add
more explanations to guard against liability and to be legally correct. Thus, the final
document may be accurate and legal, but also barely understood by the employees for
whom it is intended! The key is to consciously remember for whom the communication
is intended.
Don’t ignore the cultural and global aspects of communication. Be careful with words,
symbols, and expressions. Today’s workforce is much more culturally sensitive and
14 Part One Introduction and Background of Human Resources

global than it was one or two decades ago. Expressions like “They wear the black hats”
or “You act like an old lady” can easily be taken out of context and offend someone in the
audience.
Back up communications with management action. The old saying “People watch what
you do and not what you say” is certainly true with regard to employee communications.
Promises made either orally or in writing must be backed up by actions if they are to succeed.
Periodically reinforce employee communications. Most communications tend to be
forgotten unless they are periodically reinforced. This is especially true with many
personnel-related communications. It is a good idea, for example, to periodically remind
employees of the value of the benefits they receive.
data Transmit information and not just data. Data can be defined as “the raw material from
Raw material from which which information is developed; it is composed of acts that describe people, places,
information is developed; things, or events that have not been interpreted.” Data that have been interpreted and that
composed of facts that describe
people, places, things, or meet a need of one or more managers are called information. Employees receive piles
events and that have not been of data from numerous sources, but until the data have been interpreted, they are of little
interpreted. value. Human resource managers need to guard against transmitting numbers, statistics,
and other data that have little meaning without an accompanying interpretation.
information
Data that have been interpreted Don’t ignore the perceptual and behavioral aspects of communication. Try to anticipate
and that meet a need of one or employee reactions to communications and act accordingly. For example, it might be
more managers. a good strategy to informally separate older employees from younger employees when
introducing a new pension program through employee meetings. It would only be natural
for these different groups to have different questions and levels of interest.
The preceding suggestions largely involve good common sense. It is not that human re-
source managers are not practical; rather, they often do not take the time to think through a
communication. One good approach is to ask, “How could this message be misinterpreted?” The
answer to this question should then be taken into account when structuring the communication.
The Web-based human resource systems (eHR) that many organizations have implemented
(discussed earlier in this chapter) have greatly helped to communicate human resource
programs. One survey conducted by Towers Perrin reported that 67 percent of the more than
200 respondents said that Web-based self-services for HR improved employee awareness and
appreciation of company-sponsored HR programs.25

Summary 1. Define human resource management.

of Learning Human resource management encompasses those activities designed to provide for and
coordinate the human resources of an organization. Human resource management is also
Objectives a modern term for what has traditionally been referred to as personnel administration or
personnel management.
2. Describe the functions of human resource management.
Human resource functions are those tasks and duties performed in large and small
organizations to provide for and coordinate human resources. Human resource functions
include the following:
a. Human resource planning, recruitment, and selection.
b. Human resource development.
c. Compensation and benefits.
d. Safety and health.
e. Employee and labor relations.
f. Human resource research.
3. Summarize the types of assistance the human resource department provides.
The primary function of the human resource department is to provide support to operating
managers of all human resource matters. In general terms, the human resource department
provides three types of assistance: (1) specific services, (2) advice, and (3) coordination.
 Chapter 1 Human Resource Management: A Strategic Function 15

4. Explain the desired relationship between human resource managers and operating
managers.
The human resource department normally acts in an advisory capacity and does not have
authority over operating managers. To be effective, human resource managers must continually
cultivate good relations with operating managers. Likewise, operating managers must under-
stand the human resource functions to effectively utilize the human resource department.
5. Identify several challenges today’s human resource managers currently face.
Today’s human resource managers currently face several challenges. Some of the more
significant issues include an increasingly diverse workforce and changes in government
regulations, organization structures, technology, and managerial approaches.
6. Outline several potential challenges and contributions that an increasingly diverse
workforce presents.
An increasingly diverse workforce creates specific challenges in the areas of communication,
more training, and potentially higher factionalism. On the positive side, increased diversity
will contribute to an organizational culture that is more tolerant of different views,
which may lead to better decisions. Another potential payoff is greater organizational
responsiveness to diverse groups of customers.
7. Discuss the role of human resource managers in the future.
Human resource managers are predicted to play an increasingly important role in the
management of organizations. In fulfilling this role, human resource managers should
become thoroughly familiar with the business and business strategies, be knowledgeable
about present and future trends, and learn to emphasize the impact human resources can
have on organizational performance.
8. Explain how human resource managers can affect organizational performance.
Human resource managers can have a direct impact on organizational performance in
many ways. Some of them include reducing unnecessary overtime expenses by increasing
productivity, instituting programs to reduce absenteeism, eliminating wasted time through
sound job design, minimizing employee turnovers and unemployment costs by practicing
sound human relations and creating a work atmosphere that promotes job satisfaction,
installing and monitoring effective safety and health programs, properly training and
developing employees, decreasing costly material waste by eliminating bad work habits
and attitudes, hiring the best people available, maintaining competitive pay practices and
benefit programs, encouraging employees, and installing human resource information
systems to streamline many human resource functions.
9. Summarize several guidelines to follow when communicating human resource
programs.
Overall, it is helpful for human resource managers to develop a marketing approach when
implementing and communicating their programs. In addition, they can follow several spe-
cific guidelines: avoid communicating in peer group or privileged-class language, remem-
ber the cultural aspects of communication, back up communications with management
action, periodically reinforce employee communications, transmit information and not
just data, and consider the perceptual and behavioral aspects of communication.

Key Terms communication, 13 human resource reengineering, 9

data, 14 management, 3 rightsizing, 9
downsizing, 9 human resource specialist, 5 self-managed work teams, 10
empowerment, 10 information, 14 talent management, 5
HR scorecard, 13 metrics, 12 telecommuting, 10
human resource functions, 4 operating manager, 5
human resource generalist, 5 outsourcing, 9
16 Part One Introduction and Background of Human Resources

Review 1. What is human resource management? Distinguish between a human resource generalist
and a human resource specialist.
Questions
2. What functions does a human resource department normally perform? Why are these
functions important in today’s organizations?
3. What does the term talent management mean?
4. List several challenges facing today’s human resource managers.
5. What is meant by an “increasingly diverse workforce”?
6. Differentiate among downsizing, outsourcing, rightsizing, and reengineering.
7. What are Web-based human resource systems?
8. What are some things human resource managers should do to become more familiar with
the organization’s business?
9. Differentiate between the terms HR metrics and HR scorecard.
10. List several guidelines to follow when communicating human resource programs.
11. Name several specific ways human resource managers can positively affect an
organization’s profits.

Discussion 1. Some people believe human resource management is an area reserved for those “who can’t
do anything else.” Why do you think this belief has emerged? Is there any factual basis for it?
Questions
2. Describe some current trends that you believe will have an impact on human resource
management in the next 10 years.
3. Many human resource managers claim to love their work because they like to work
with people. Do you think liking people is the most important ingredient in becoming a
successful human resource manager?
4. As a human resource manager, how might you go about convincing top management that
you should be heavily involved in the company’s strategic planning process?

Incident 1.1
Human Resource Management and Professionals
You are a senior member of a national law firm in New York City. The managing partner
of the firm has asked you to head up the southern branch in Raleigh, North Carolina. This
branch is 1 of 10 under the main office. On the whole, the firm has been successful since
its establishment in the mid-1950s, but in the last five years, many of the younger staff have
Web site: Society elected to leave the firm. The managing partner is convinced the problem is not salary, be-
for Human Resource cause a recent survey indicated that the firm’s salary structure is competitive with that of
Management other major firms. However, he requests that you study this matter firsthand in your new
www.shrm.org assignment.
After getting settled in Raleigh, one of your first projects is to meet with the four senior
managers to determine why the branch has had such a high attrition rate among the younger
staff. Harding Smith, age 45, states that the younger staff lacks dedication and fails to appre-
ciate the career opportunities the firm provides. Wilma Thompson, age 50, says the younger
staff members are always complaining about the lack of meaningful feedback on their per-
formance, and many have mentioned that they would like to have a sponsor in the organiza-
tion to assist with their development. Thompson further explains that the firm does provide
performance ratings to staff and the previous manager had always maintained an open-door
policy. Brian Scott, age 40, says he has received complaints that training is not relevant and
is generally dull. He explains that various persons in the firm who worked with training from
time to time acted mainly on guidance from New York. Denise Rutherford, age 38, says she
believes the root of the problem is the lack of a human resource department. However, she
says that when the idea was mentioned to the managing partner in New York, it was totally
rejected.
 Chapter 1 Human Resource Management: A Strategic Function 17

Questions
1. What do you think about the idea of a human resource department in a professional office?
2. How would you sell the idea of a human resource department to the managing partner?
3. What type of organizational structure would you propose?

Incident 1.2
Choosing a Major
Tom Russell is a junior in the school of business administration at a large midwestern university.
Tom, who is an honor student, hasn’t fully decided what his major should be. He has considered
majoring in management, but just can’t get excited about the field; it seems to be too general.
Tom’s first course in management did appeal to him; however, this was largely because of
the professor. Tom decided to talk to this professor about his dilemma. The following conver-
sation occurred:
Tom: Professor, I would like your advice on selecting a major field of study. Right now,
I just don’t know what to do.
Professor: Tom, just let me say that you are making an important decision, and your
concern is justified. How many courses have you taken in the School of Business
Administration?
Tom: Only your introductory course in management, a basic course in marketing, and a
statistics course, I do know that I don’t want to major in statistics!
Professor: How about majoring in human resource management?
Tom: I don’t think so. That is basically a staff job that can’t really lead anywhere.
Professor: Hold on, Tom, I think I’d better tell you a little more about human resource
management.

Questions
1. If you were the professor, what would you tell Tom?
2. Specifically, what future trends do you see that might help persuade Tom to major in human
resource management?

EXERCISE 1.1 Go to your college or university library or go online and search under the terms Personnel Man-
Changes in agement and Human Resources Management. Based on your findings, approximately when was
the term Personnel Management replaced by the term Human Resource Management? Why do
Terminology you think this change occurred? Be prepared to present your findings to the class.

EXERCISE 1.2 Assume you work in the human resource department of a medium-size manufacturing company
Justifying the (annual sales of $300 million). The company has been unionized for many years but has never
had a strike. The president of the company has just requested that all departments develop a
Human Resource budget for the coming fiscal year and be prepared to justify their budget requests. As part of this
Department justification, your boss, the director of human resources, has just asked you to prepare a list of at
least 10 reasons why the human resource department and its performance are important to the
success of the entire company. Be prepared to present your list to the class.

EXERCISE 1.3 Each of these events happened in the 20th century. See if you can put them in the correct chrono-
Test Your Knowledge logical order. For a greater challenge, name the year that the event occurred. Search for clues with
your Web browser. Hint: Summaries of many labor laws can be found at the U.S. Department of
of HR History*
Labor, Major Laws & Regulations Enforced by the Department of Labor, Web site.
18 Part One Introduction and Background of Human Resources

A. The minimum wage is raised to $7.25 an hour.

Web site B. Executive Order 11246 is issued to provide for equal employment opportunity for those
www.dol.gov/dol/compliance/ working for government contractors.
compliance-majorlaw.htm C. President Clinton signs the Family and Medical Leave Act (FMLA).
D. Congress passes the Railway Labor Act, requiring employers to bargain with unions.
E. Congress passes the Fair Labor Standards Act (FLSA), banning child labor.
F. Congress passes the Occupational Safety and Health Act.
G. President Truman seizes the steel industry when steel companies reject recommendations
made by the Wage Stabilization Board.
H. The Uniformed Services Employment and Reemployment Rights Act (USERRA) is signed to
protect workers who are called to active military duty.
I. Congress passes the Employment Retirement Income Security Act regulating all private
pension plans.
J. The North American Free Trade Agreement is passed.
K. Congress passes the Equal Pay Act prohibiting wage differentials based on gender for workers
covered by the FLSA.
L. President Reagan signs a welfare reform bill requiring single parents with children over 3 years
old to get regular jobs.
M. United States enters World War II.
N. Frances Perkins becomes secretary of labor and the first woman named to a presidential
cabinet.

*Source: Adapted from Workforce, Workforce Extra Supplement, October 1998, p. 7, and the U.S.
Department of Labor, Major Laws & Regulations Enforced by the Department of Labor, Web site.

EXERCISE 1.4 As discussed in this chapter, a successful career in HR demands a broader range of skills and
Are You Poised experiences than ever before. While designed for people currently employed in HR positions, the
following exam provides good insights into what is necessary to succeed in HR today. If you are
for Success?** currently employed in HR, take the exam and see how well you are doing. If you are not currently
in HR, go over the exam questions to learn how you might prepare yourself for a career in HR.

I. Starting Points (10 points)

(10 points if you have a managerial, directorial, or VP title) _____

II. Knowledge of General Business and Finance (10 points)

During the past six months, have you initiated conversations with the
CFO or other finance executive to discuss the financial implications of
HR programs? If yes, add 2 points. _____
Have you completed some general business courses at the college level?
If yes, add 2 points. _____
Do you have an MBA? If yes, add 2 points. _____
Do you develop the first draft of the company’s annual HR budget and then
advocate for it during the corporate budget-setting sessions? If yes,
add 2 points. _____
Did you meet HR budget goals (⫹ or ⫺5%) during the most recent fiscal year?
If yes, add 2 points. _____

III. Mastery of HR Disciplines (10 points)

Have you initiated, developed, and implemented a specific HR program within
a specific HR niche (e.g., training or compensation)? If yes, add 1 point for
each program, to a maximum of 4 points. _____
Before assuming your present position, did you hold a title of manager or
director of a specific HR function, such as benefits or staffing? If yes,
add 2 points for each title, to a maximum of 4 points. _____
Have you mentored someone else in HR who was designing a program within
a specific HR niche? If yes, add 2 points. _____
 Chapter 1 Human Resource Management: A Strategic Function 19

IV. Knowledge of Your Organization (10 points)

Can you state your company’s earnings for the most recent fiscal year?
If yes, add 1 point. _____
Can you state your company’s profit (or loss) for the most recent fiscal year?
If yes, add 1 point. _____
Can you identify your organization’s primary product or service lines and
the relative revenue generated by each? If yes, add 1 point. _____
Can you identify your chief competitors and state your competitive position
relative to them? If yes, add 2 points. _____
Do you report directly to the CEO? If yes, add 2 points. _____
During the past year, have you initiated a meeting or meetings with a line
manager or other colleague at the management level for the express
purpose of learning about their business needs or objectives? If yes, add
3 points. _____

V. Cross-Functional Experience (10 points)

Have you ever “shadowed” another executive or accepted a temporary
assignment to gain a better understanding of another business function?
If yes, add 2 points. _____
Have you ever held a position in an industry outside the one in which you’re
presently working? If yes, add 4 points. _____
Have you ever held a position in a discipline outside HR (e.g., marketing,
communication, or finance)? If yes, add 4 points. _____

VI. International/Cross-Cultural Experience (10 points)

Have you ever participated in a cross-cultural training program? If yes,
add 1 point. _____
Have you ever served as a member of a task force addressing a global business
issue? If yes, add 1 point. _____
Have you ever traveled abroad? If yes, add 1 point for each country you’ve
visited, to a maximum of 3 points. _____
Have you ever held an overseas assignment of six months or longer?
If yes, add 5 points. _____

VII. Mentors (10 points)

Have you had one or more mentors during your career? If yes, add 4 points. _____
Have any of your mentors been
a. the opposite gender? _____
b. another race or ethnic group? _____
c. in a discipline other than HR? _____
Add 2 points for each yes answer.

VIII. Career Decisions (10 points)

Have you developed a specific career goal for yourself? If yes, add 4 points. _____
Have you initiated activities intended to give you the skills/responsibility
needed to progress toward your career goal? If yes, add 3 points. _____
Have you sought or accepted a lateral transfer for the purpose of expanding
your career opportunities? If yes, add 3 points. _____

IX. Technology (10 points)

Have you directed a project in which the application of technology (computers,
voice-response systems, etc.) improved HR’s value or productivity? If yes,
add 5 points. _____
Have you been a member of a group or task force responsible for applying
technology to solve an HR-related issue? If yes, add 3 points. _____
Do you use a computer yourself in the course of doing your job? If yes, add
1 point. _____
20 Part One Introduction and Background of Human Resources

Do you consider yourself conversant in the current technological lingo

(e.g., client/server, open architecture)? If yes, add 1 point. _____

X. Continual Learning (10 points)

Do you subscribe to and read at least two business/professional publications?
If yes, add 2 points. _____
Do you keep current on general issues that have implications for HR
(e.g., health care reform)? If yes, add 2 points. _____
Do you periodically take classes or attend seminars in areas not directly
related to HR, such as creativity or statistics? If yes, add 2 points. _____
Do you participate in professional organizations or attend conferences
specifically directed to HR executives? If yes, add 2 points. _____
Do you regularly engage in right-brain activities, such as reading for pleasure,
going to museums, or attending performing-arts events? If yes, add 2 points. _____

HOW DID YOU DO?

To calculate your score, add all the numbers you entered on the spaces provided.

Enter Subtotal Here _____

Review the score sheet. For each section in which you gave yourself no points (for example, you
earned no points under Career Decisions or Technology), deduct 10 points from the subtotal
above.

Enter the Total Points Deducted Here _____

Subtract the deductions (if any) from the subtotal.

Enter the Grand Total Here _____

85–100 Congratulations! You’re clearly a leader in HR.
70–84 The foundation you’ve built for your career is solid. You’re on the way
to the top.
55–69 You’ve got a good start; additional experience in one or two key areas should
help you get to the top. Set specific goals.
40–54 You have valuable experience in some key areas, but to get to the top you
need additional experience. Start now.
0–39 Getting to the top in HR will be very difficult.

**Source: Adapted from “Are You Poised for Success in the 90’s? Take the Quiz and Find Out,” Personnel
Journal, June 1994, pp. 72–73.

Notes and 1. U.S. Department of Commerce, Bureau of Economic Analysis, NIPA Tables, Table 1.12, www.bea.
Additional gov/bea/dn/nipaweb/Tableview.asp. Accessed January 5, 2010.
2. “Many Actions Add Up to Successful Talent Management,” HR Focus, July 2006, pp. 3–4.
Readings
3. Laurence O’Neil, “Executing Strategies for a New Way of Doing Business,” HR Magazine,
June 2009, p. 12; John Hobel, “The Time Is Right for Strategic HR,” Canadian HR Reporter,
October 23, 2006, p. 30; and “How Strategic Is HR Now? The Latest Research Shows Progress,” HR
Focus, December 2006, pp. 3–5.
4. Mitra Toossi, “Labor Force Projections to 2018: Older Workers Staying More Active,” Monthly
Labor Review, November 2009, pp. 44–45.
5. Ibid., p. 47.
6. Ibid., p. 46.
7. John M. Ivancevich and Jacqueline A. Gilbert, “Diversity Management: Time for a New Approach,”
Public Personnel Management 29, No. 1 (Spring 2000), pp. 75–92.
8. Much of this section is drawn from Benson Rosen and Kay Lovelace, “Piecing Together the
Diversity Puzzle,” HR Magazine, June 1991, pp. 78–84; and John D. Wheeler, “Managing Workforce
Diversity,” Tax Executive, November/December 1997, pp. 493–95.
 Chapter 1 Human Resource Management: A Strategic Function 21

9. “HR Outsourcing Trends and Insights 2009,” www.hewitt.com. Accessed January 6, 2010.
10. “What Is a Professional Employer Organization?” www.NAPEO.org. Accessed January 6, 2010.
11. Duncan Davidson, Duane Dickson, and Jane Trice, “Rightsizing for Success,” Business Forum,
Winter–Spring 1993, pp. 10–12.
12. M. Hammer and J. Champy, Reengineering the Corporation: A Manifesto for Business Revolution
(New York: HarperCollins, 1993).
13. Much of this paragraph is drawn from Alan Cohen, “New Electronic HR Tools Are Hitting Their
Stride,” National Underwriter, February 9, 2004, pp. 27–28.
14. Bradford S. Bell, Sae-Won Lee, and Sarah K. Yeung, “The Impact of E-HR on Professional
Competencies in HRM: Implications for the Development of HR Professionals,” Human Resource
Management, Fall 2006, pp. 295–308; and Thomas W. Garvey and Brian S. Klass, “The Use and
Impact of eHR: A survey of HR Professionals,” People and Strategy 31, No. 3 (2008), pp. 50–55.
15. “Tips for Expanding Your Corporate Role,” HR Focus, September 2000, p. 1.
16. Phil Farish, “Broader View Needed,” Personnel Administrator, February 1987, p. 27; and Donald
M. Burrows, “Increase HR’s Contribution to Profits,” HR Magazine, September 1996, pp. 103–10.
17. HR’s Evolving Role in Organizations and Its Impact on Business Strategy (Alexandria, Va.; The
Society for Human Resource Management, 2008), p. 27.
18. “Changes in the Human Resources Profession in the Last 10 Years,” SHRM weekly online survey,
March 18, 2008, accessed January 7, 2010.
19. Helen Williams, “HR Careering Ahead,” Personnel Today, June 16, 2009, pp. 14–15.
20. Todd Raphael, “Think Twice: HR and an RX for the Bottom Line,” Workforce, October 2001, p. 104;
Samuel Greengard, “Increase the Value of Your Intranet,” Workforce, March 1997, pp. 80–90.
21. Samuel Greengard, “Catch the Wave,” Personnel Journal, July 1995, p. 59; Shari Caudron, “How
HR Drives Profits,” Workforce, December 2001, pp. 26–31, and Alan Cohen, “New Electronic HR
Tools Are Hitting Their Stride,” Natural Underwriter, February 9, 2004, pp. 27–28.
22. Joseph A. Banik, “The Marketing Approach to Communicating with Employees,” Personnel
Journal, October 1985, pp. 62–64; Joe Pasqueletto, “An HRS Marketing Strategy,” Personnel
Journal, June 1989, pp. 62–71.
23. Gina Ruiz, “Communication Often Bypasses Those Overseas,” Workforce Management, February 13,
2006, pp. 7–8.
24. Much of this section is drawn from Banik, “The Marketing Approach,” pp. 62–68.
25. “Three New Surveys Track the Growth of eHR,” HR Focus, April 2002, pp. 4–6.