Description
Assignment Workload:
This Assignment comprises of a short Case.
Assignments are to be submitted by each student individually.
Assignment Purposes/Learning Outcomes:
After completion of Assignment one students will be able to understand the following
LO1: To understand the role of human resources within the organization.
LO2: To differentiate between the major functions of Human Resources and their interdependency.
Read the case given below and answer the questions:
Maryam, the owner, and manager of a company with ten employees, has hired you to take over the HRM function so she can focus on other areas of her business. During your first two weeks, you find out that the company has been greatly affected by the up economy and is expected to experience overall revenue growth of 10 percent over the next three years, with some quarters seeing growth as high as 30 percent. However, five of the ten workers are expected to retire within three years. These workers have been with the organization since the beginning and provide a unique historical perspective of the company. The other five workers are of diverse ages.
In addition to these changes, Maryam believes they may be able to save costs by allowing employees to telecommute one to two days per week. She has some concerns about productivity if she allows employees to work from home. Despite these concerns, Maryam has even considered closing the physical office and making her company a virtual organization, but she wonders how such a major change will affect the ability to communicate and worker motivation.
Maryam shares with you her thoughts about the costs of health care for the organization. She has considered cutting benefits entirely and having her employees work for her on a contract basis, instead of being full-time employees. She isn’t sure if this would be a good choice.
Maryam schedules a meeting with you to discuss some of her thoughts. To prepare for the meeting, you perform research so you can impress your new boss with recommendations on the challenges presented.
Questions
1.Point out which changes are occurring in the business that affect HRM. (2.5Marks)
2.What are some considerations the company and HR should be aware of when making changes related to this case study? (2.5Marks)
3.What would the initial steps be to start planning for these changes? (2.5Marks)
4.What would your role be in implementing these changes? What would Maryam’s role be? (2.5Marks)
Answers:
1.
2.
3.
4.
Unformatted Attachment Preview
المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية اإللكترونية
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 1
MGT211 (Second Semester 2023-2024)
Due Date: 16/03/2024 @ 23:59
Course Name: HR Management
Student’s Name:
Course Code: MGT211
Student’s ID Number: S
Semester: Second
CRN:
Academic Year: 2023-2024, Second Semester
For Instructor’s Use only
Instructor’s Name: Haifa Al-Harith
Students’ Grade:
/ 10
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
•
•
This assignment is an individual assignment.
The due date for Assignment 1 is 16/03/2024.
•
The Assignment must be submitted only in WORD format via the allocated
folder.
•
Assignments submitted through email will not be accepted.
•
Students are advised to make their work clear and well presented; marks may be
reduced for poor presentation. This includes filling in your information on the
cover page.
•
Students must mention question numbers clearly in their answers.
•
Late submission will NOT be accepted.
•
Avoid plagiarism, the work should be in your own words, copying from students
or other resources without proper referencing will result in ZERO marks. No
exceptions.
•
All answered must be typed using Times New Roman (size 12, double-spaced)
font. No pictures containing text will be accepted and will be considered
plagiarism).
Submissions without this cover page will NOT be accepted.
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية اإللكترونية
College of Administrative and Financial Sciences
Assignment Workload:
•
•
This Assignment comprises of a short Case.
Assignments are to be submitted by each student individually.
Assignment Purposes/Learning Outcomes:
After completion of Assignment one students will be able to understand the following
•
•
LO1: To understand the role of human resources within the organization.
LO2: To differentiate between the major functions of Human Resources and
their interdependency.
Read the case given below and answer the questions:
Maryam, the owner, and manager of a company with ten employees, has hired you to
take over the HRM function so she can focus on other areas of her business. During your
first two weeks, you find out that the company has been greatly affected by the up
economy and is expected to experience overall revenue growth of 10 percent over the
next three years, with some quarters seeing growth as high as 30 percent. However, five
of the ten workers are expected to retire within three years. These workers have been
with the organization since the beginning and provide a unique historical perspective of
the company. The other five workers are of diverse ages.
In addition to these changes, Maryam believes they may be able to save costs by allowing
employees to telecommute one to two days per week. She has some concerns about
productivity if she allows employees to work from home. Despite these concerns, Maryam
has even considered closing the physical office and making her company a virtual
organization, but she wonders how such a major change will affect the ability to
communicate and worker motivation.
Maryam shares with you her thoughts about the costs of health care for the organization.
She has considered cutting benefits entirely and having her employees work for her on a
contract basis, instead of being full-time employees. She isn’t sure if this would be a good
choice.
Maryam schedules a meeting with you to discuss some of her thoughts. To prepare for the
meeting, you perform research so you can impress your new boss with recommendations
on the challenges presented.
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية اإللكترونية
College of Administrative and Financial Sciences
Questions
1.Point out which changes are occurring in the business that affect HRM. (2.5Marks)
2.What are some considerations the company and HR should be aware of when making
changes related to this case study? (2.5Marks)
3.What would the initial steps be to start planning for these changes? (2.5Marks)
4.What would your role be in implementing these changes? What would Maryam’s role
be? (2.5Marks)
Answers:
1.
2.
3.
4.
Because learning changes everything. ®
Chapter 1
Human Resource
Management: Gaining a
Competitive Advantage
Human Resource Management
Gaining A Competitive Advantage
TWELFTH EDITION
Raymond Noe, John Hollenbeck, Barry Gerhart,
Patrick Wright
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
Learning Objectives 1
LO 1-1 Discuss the roles and activities of a company’s
human resource management function.
LO 1-2 Discuss the implications of the economy, the makeup
of the labor force, and ethics for company
sustainability.
LO 1-3 Discuss how human resource management affects a
company’s balanced scorecard.
LO 1-4 Discuss what companies should do to compete in
the global marketplace.
© McGraw Hill
2
Learning Objectives 2
LO 1-5 Identify how social networking, artificial intelligence,
and robotics are influencing human resource
management.
LO 1-6 Describe how automation using artificial intelligence
and robotics has the potential to change jobs.
LO 1-7 Discuss human resource management practices that
support high-performance work systems.
LO 1-8 Provide a brief description of human resource
management practices.
© McGraw Hill
3
Introduction
Human Resource Management (HRM)
• Plays a role in company’s survival, effectiveness, and
competitiveness.
• Refers to the policies, practices, and systems that
influence employees’ behavior, attitudes, and performance.
© McGraw Hill
4
Figure 1.1 Human Resource Management Practices
© McGraw Hill
5
What Responsibilities and Roles Do HR Departments
Perform? 1
High-Impact HR Functions
• More integrated with the business
• Skilled at attracting and retaining employees
• Can adapt quickly
• Identify and promote talent from within
• Identify what motivates employees
• Continuously building talent and skills
LO 1-1
© McGraw Hill
6
What Responsibilities and Roles Do HR Departments
Perform? 2
HR Department Responsibilities
• Outplacement
• Labor law compliance
• Record keeping
• Testing
• Unemployment compensation
• Some aspects of benefits administration
© McGraw Hill
7
Table 1.1 Responsibilities of HR Departments 1
FUNCTION
RESPONSIBILITIES
Analysis and design of Job analysis, work analysis, job descriptions
work
Recruitment and
selection
Recruiting, posting job descriptions, interviewing,
testing, coordinating use of temporary employees
Training and
development
Orientation, skills training, development programs,
career development
Performance
management
Performance measures, preparation and
administration of performance appraisals,
feedback and coaching, discipline
Compensation and
benefits
Wage and salary administration, incentive pay,
insurance, vacation, retirement plans, profit
sharing, health and wellness, stock plans
SOURCES: Bureau of Labor Statistics. 2019. U.S. Department of Labor, Occupational Outlook Handbook, Human
Resources Specialists; SHRM-BNA Survey No. 66. 2001. “Policy and Practice Forum: Human Resource Activities,
Budgets, and Staffs, 2000–2001.” Bulletin to Management, Bureau of National Affairs Policy and Practice Series.
Washington: Bureau of National Affairs.
© McGraw Hill
8
Table 1.1 Responsibilities of HR Departments 2
FUNCTION
RESPONSIBILITIES
Employee
relations/labor relations
Attitude surveys, employee handbooks, labor law
compliance, relocation and outplacement services
Personnel policies
Policy creation, policy communications
Employee data and
information systems
Record keeping, HR information systems,
workforce analytics, social media, intranet and
Internet access
Legal compliance
Policies to ensure lawful behavior; safety
inspections, accessibility accommodations, privacy
policies, ethics
Support for business
strategy
Human resource planning and forecasting, talent
management, change management, organization
development
© McGraw Hill
9
Figure 1.2 HR as a Business with Three Product Lines
SOURCE: Adapted from Figure 1, “HR Product Lines” in E. E. Lawler, “From Human Resource Management to Organizational Effectiveness,” Human Resource Management
44 (2005), pp. 165–69.
Access the text alternative for slide images.
© McGraw Hill
10
Strategic Role of the HRM Function 1
HRM Role
• Time spent on administrative tasks is decreasing.
• Roles as a strategic business partner, change agent, and
employee advocate are increasing.
• Shared service model
• Central place for administrative and transactional tasks.
• Includes centers of expertise or excellence, service centers, and
business partners.
© McGraw Hill
11
Strategic Role of the HRM Function 2
Role of Technology
• Reducing HRM role in administrative tasks, maintaining
records, and providing self-service to employees.
• Shift to self-service gives employees access to many HR functions.
• HR managers have more time to work with managers on employee
issues.
© McGraw Hill
12
Strategic Role of the HRM Function 3
Outsourcing
• Most commonly outsourced activities:
• Benefits administration
• Relocation
• Payroll
• Most common reasons for outsourcing:
• Cost savings
• Increased ability to recruit and manage talent
• Improved HR service quality
• Protection of the company from potential lawsuits by standardizing
processes such as selection and recruitment
© McGraw Hill
13
Strategic Role of the HRM Function 4
Strategic Role
• Lead efforts focused on talent management and
performance management
• Use and analyze data to make a business case for ideas
and problem solutions
• Use people management skills across the business
• Structure and responsibilities changing to ensure strategic
role
© McGraw Hill
14
Table 1.2 Questions to Ask: Is HRM Playing a Strategic
Role in the Business?
1. What is HRM doing to provide value-added services to internal clients?
2. Do the actions of HRM support and align with business priorities?
3. How are you measuring the effectiveness of HRM?
4. How can we reinvest in employees?
5. What HRM strategy will we use to get business from point A to B?
6. From an HRM perspective, what should we be doing to improve our
marketplace position?
7. What’s the best change we can make to prepare for the future?
8. Do we react to business problems or anticipate them in advance?
SOURCES: Ulrich, D., D. Kryscynski, M. Ulrich, W. Brockbank. Victory Through Organization. New York: McGraw-Hill
Education, 2017; and Wright, P. Human Resource Strategy: Adapting to the Age of Globalization. Alexandria: Society for
Human Resource Management Foundation, 2008.
© McGraw Hill
15
Strategic Role of the HRM Function 5
Demonstrating the Strategic Value of HRM: HR Analytics and
Evidenced-Based HR
• HR can engage in evidence-based HR
• Requires use of HR or workforce analytics
• Big data
• Information merged from HR databases, corporate financial
statements, employee surveys, and other data sources
• Results in evidence-based HR decisions
• Show that HR practices influence the organization’s bottom line,
including profits and costs
© McGraw Hill
16
Strategic Role of the HRM Function 6
The HRM Profession: Positions and Jobs
• Primary activities involve performing the HR generalist role
• Fewer HR professionals involved in HR functions at the
executive level, training and development, HR consulting,
and administrative activities
• Overall employment in HR-related positions expected to
grow by 9 percent between 2014 and 2024
© McGraw Hill
17
Table 1.3 Median Salaries for HRM Positions
© McGraw Hill
POSITION
SALARY
Chief human resource officer (CHRO)
$238,710
Global HR manager
127,800
Management development manager
123,543
Health and safety manager
102,162
Employee benefits manager
100,901
HR manager
102,162
Mid-level labor relations specialist
89,030
Campus recruiter
68,590
Entry-level HRIS specialist
56,590
HR generalist
55,283
Entry-level compensation analyst
59,855
Entry-level employee training specialist
40,590
SOURCE: Based on data from Salary Wizard, http://swz.salary.com.
18
Strategic Role of the HRM Function 7
Education and Experience
• Four-year college or graduate HR degree
• Senior HR role
• Developing and supporting the company culture
• Employee recruitment, retention, and engagement
• Succession planning
• Designing company’s overall HR strategy
© McGraw Hill
19
Strategic Role of the HRM Function 8
Education and Experience continued
• Junior HR role
• Handle transactions related to paperwork, benefits, and payroll
administration
• Answering employee questions
• Data management
• Professional certification
© McGraw Hill
20
Strategic Role of the HRM Function 9
Competencies and Behaviors
• Most HRM professionals are generalists
• Lack business acumen
• Need nine competencies developed by SHRM
• Primary professional organization for HRM with more than 300,000
members
© McGraw Hill
21
Strategic Role of the HRM Function 10
Nine Competencies
1. HR Technical Expertise and Practice
• Apply principles of HRM to contribute to success of the business
2. Business Acumen
• Understand business functions and metrics within the organization
and industry
3. Critical Evaluation
• Interpret information to determine return on investment and
organizational impact in making recommendations and business
decisions
© McGraw Hill
22
Strategic Role of the HRM Function 11
Nine Competencies continued
4. Ethical Practice
• Integrate core values, integrity, and accountability throughout all
organizational and business practices
5. Global and Cultural Effectiveness
• Manage HR both within and across boundaries
6. Communications
• Effectively exchange and create free flow of information with and
among various stakeholders at all levels of the organization to
produce meaningful outcomes
© McGraw Hill
23
Strategic Role of the HRM Function 12
Nine Competencies continued
7. Organizational Leadership and Navigation
• Direct initiatives and processes within the organization and gain
buy-in from stakeholders
8. Consultation
• Provide guidance to stakeholders such as employees and leaders
seeking expert advice on a variety of circumstances and situations
9. Relationship Management
• Manage interactions with and between others with specific goal of
providing service and organizational success
© McGraw Hill
24
Competitive Challenges Influencing Human Resource
Management 1
Competing Through Environment, Social, and Governance
(ESG) Practices
• Sustainability
• Company’s ability to meet its needs without sacrificing the ability of
future generations to meet their needs
• Company must meet stakeholders’ needs
• ESG practices must be part of company’s business model to gain
competitive advantage and reduce legal risks
LO 1-2
© McGraw Hill
25
Figure 1.4 Competitive Challenges Influencing U.S.
Companies
Access the text alternative for slide images.
© McGraw Hill
26
Competitive Challenges Influencing Human Resource
Management 2
Deal with the Workforce and Employment Implications of the
Economy
• Skill demands for jobs have changed
• Remaining competitive in global economy requires
demanding work hours and changes in traditional
employment patterns
• Companies give more attention to HR practices that
influence their ability to attract and retain employees
• Currently economy is thriving and unemployment low
© McGraw Hill
27
Table 1.4 Highlights of Employment Projections to 2026
• The labor force is projected to increase by 11.5 million, reaching approximately
168 million.
• Today, 93% of U.S. jobs are nonagriculture wage and salary jobs: 12% are in
goods-producing industries (mining, construction, manufacturing); 81% are in
service-providing industries; and 1.3% in agriculture, forestry, fishing, and
hunting. The distribution of jobs across industries is projected to be similar in
2026.
• 46.5 million job openings are expected, with more than three-fourths resulting
from the need to replace workers who retire or leave an occupation.
• The median age of the workforce will increase to 42.3 years, the highest ever
recorded.
• Health care support and practitioner occupations are projected to be the
fastest-growing occupational groups and contribute the most new jobs (one out
of four new jobs).
© McGraw Hill
28
Competitive Challenges Influencing Human Resource
Management 3
Labor Force and Employment Characteristics
• Population is most important factor in determining size and
composition of labor force
• Growth is slow as labor force is aging
• Diversity is increasing, especially Hispanics
• Importance of service sector, especially health care
• Education is important to meet job requirements
• Shortage of qualified workers, especially with STEM skills
© McGraw Hill
29
Competitive Challenges Influencing Human Resource
Management 4
Understand and Enhance the Value Placed on Intangible
Assets and Human Capital
• Three types of assets:
• Financial assets (cash and securities)
• Physical assets (property, plant, equipment)
• Intangible assets (human capital, customer capital, social capital,
intellectual capital)
© McGraw Hill
30
Table 1.6 Examples of Intangible Assets
Human capital
• Tacit knowledge
• Education
• Work-related know-how
• Work-related competence
Social capital
• Corporate culture
• Management philosophy
• Management practices
• Informal networking systems
• Coaching/mentoring relationships
Customer capital
• Customer relationships
• Brands
• Customer loyalty
• Distribution channels
Intellectual capital
• Patents
• Copyrights
• Trade secrets
• Intellectual property
SOURCES: Weatherly, L. Human Capital: The Elusive Asset. Alexandria: SHRM Research Quarterly, 2003; Holton, E., and
S. Naquin. “New Metrics for Employee Development.” Performance Improvement Quarterly 17, no. 1(2004): 56–80;
Huselid, M., B. Becker, and R. Beatty. The Workforce Scorecard. Boston: Harvard University Press, 2005.
© McGraw Hill
31
Competitive Challenges Influencing Human Resource
Management 5
Understand and Enhance the Value Placed on Intangible
Assets and Human Capital continued
• Knowledge workers
• Contribute specialized knowledge
• Share knowledge and collaborate on solutions
• In demand because companies need their skills and jobs requiring
them are growing
© McGraw Hill
32
Competitive Challenges Influencing Human Resource
Management 6
Emphasize Empowerment and Continuous Learning
• Give employees responsibility and authority
• Hold them accountable
• Employees share in the rewards and losses
• Learning organization
© McGraw Hill
33
Competitive Challenges Influencing Human Resource
Management 7
Adapt to Change
• Inevitable
• Employees expected to take more responsibility for own
careers
• Challenge is how to build a committed, productive
workforce
• Employees manage change through agility
• Changes in the employment relationship
© McGraw Hill
34
Competitive Challenges Influencing Human Resource
Management 8
Maximize Employee Engagement
• Passionate about their work
• Committed to the company and its mission
• Work hard to contribute
• Measured with attitude or opinion surveys
• Focus on employee experience
• Employee value proposition (EVP)
© McGraw Hill
35
Table 1.7 Common Themes of Employee Engagement
1. Pride in employer
2. Satisfaction with employer
3. Satisfaction with the job
4. Opportunity to perform challenging work
5. Recognition and positive feedback
6. Personal support from manager
7. Effort above and beyond the minimum
8. Understand link between one’s job and company’s mission
9. Prospects for future growth with the company
10. Intention to stay with the company
SOURCES: Vance, R. Employee Engagement and Commitment. Alexandria: Society for Human
Resource Management, 2006; Lytle, T. The Engagement Challenge. HR Magazine, 2016.
© McGraw Hill
36
Competitive Challenges Influencing Human Resource
Management 9
Manage Talent
• Acquiring and assessing employees
• Learning and development
• Performance management
• Compensation
© McGraw Hill
37
Competitive Challenges Influencing Human Resource
Management 10
Consider Nontraditional Employment and the Gig
Economy
• Between 20 and 35% of total U.S. workforce
• Workers set own schedule and do not work for a company
• Offers flexibility
© McGraw Hill
38
Competitive Challenges Influencing Human Resource
Management 11
Provide Flexibility to Help Employees Meet Work and Life
Demands
• 46% of employees work more than 45 hours per week
• Only half of employees in U.S. believe they have the
flexibility they need for work/life balance
• Solution: flexible work schedules, work-at-home
arrangements, protecting employees’ free time, and more
productively using employees’ work time
• Co-working sites or shared offices
© McGraw Hill
39
Competitive Challenges Influencing Human Resource
Management 12
Meet the Needs of Stakeholders, Shareholders, Customers,
Employees, and Community
• Demonstrate performance to stakeholders: the balanced
scorecard
• Being customer-focused
• Improving quality
• Emphasizing teamwork
• Reducing new product and service development times
• Managing for the long term
LO 1-3
© McGraw Hill
40
Table 1.8 The Balanced Scorecard
PERSPECTIVE
QUESTIONS
ANSWERED
EXAMPLES OF CRITICAL
BUSINESS INDICATORS
CRITICAL HR INDICATORS
Customer
How do customers
see us?
Time, quality, performance,
service, cost
Employee satisfaction with HR
department services; Employee
perceptions of the company as
an employer
Internal
What must we
excel at?
Processes that influence
customer satisfaction,
availability of information on
service, and/or manufacturing
processes
Training costs per employee,
turnover rates, time to fill open
positions
Innovation and
learning
Can we continue to
improve and create
value?
Improve operating efficiency,
launch new products,
continuous improvement,
empowering of workforce,
employee satisfaction
Employee/skills competency
levels, engagement survey
results, change management
capability
Financial
How do we look to
shareholders?
Profitability, growth,
shareholder value
Compensation and benefits per
employee, turnover costs, profit
per employee, revenue per
employee
© McGraw Hill
41
Competitive Challenges Influencing Human Resource
Management 13
Demonstrate Social Responsibility
• Helps boost company’s image with customers.
• Helps gain access to new markets.
• Helps attract and retain talented employees.
© McGraw Hill
42
Competitive Challenges Influencing Human Resource
Management 14
Emphasize Customer Service and Quality
• Total quality management (TQM) five core values:
1. Methods and processes are designed to meet internal and
external customers’ needs.
2. Every employee receives training in quality.
3. Promote cooperation with vendors, suppliers and customers.
4. Managers measure progress with feedback based on data.
5. Quality is designed into a product or service so that errors are
prevented rather than being detected and corrected.
© McGraw Hill
43
Competitive Challenges Influencing Human Resource
Management 15
Malcolm Baldrige National Quality Award
• Competition that promotes quality
ISO (International Organization for Standardization) 9000
Standards
• International standards of quality
© McGraw Hill
44
Competitive Challenges Influencing Human Resource
Management 16
Six Sigma
• Process of measuring, analyzing, improving, and
controlling processes
Lean Thinking and Process Improvement
• Do more with less effort, equipment space, and time
• Improve quality of employees’ work experiences
© McGraw Hill
45
Competitive Challenges Influencing Human Resource
Management 17
Recognize and Capitalize on the Demographics and
Diversity of the Workforce
• Internal labor force
• External labor market
• Average age of workforce will increase
• Increased workforce diversity
• Immigration will affect size and diversity
© McGraw Hill
46
Competitive Challenges Influencing Human Resource
Management 18
Aging of the Workforce
• Labor force participation of those 55 years and older
expected to grow
• HRM issues such as career plateauing, retirement
planning, and retraining older workers
The Multigenerational Workforce
• Five generations
© McGraw Hill
47
Figure 1.5 Comparison of the Age Distribution of the
2016 and 2026 Labor Forces
SOURCE: Bureau of Labor Statistics, U.S. Department of Labor, “Employment projections: 2016–2026,” News Release, October 24, 2017, from
www.bls.gov/emp, accessed January 5, 2019.
Access the text alternative for slide images.
© McGraw Hill
48
Table 1.11 Generations in the Workforce
© McGraw Hill
YEAR BORN
GENERATION
AGES
1925 to 45
Traditionalists Silent
Generation
>74
1946 to 64
Baby Boomers
55 to 74
1965 to 80
Generation X
39 to 54
1981 to 95
Millennials Generation Y
Echo Boomers
24 to 38
1996
Generation Z
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