tài liệu ôn tập Quản trị nguồn nhân lực

CHAPTER 1: MANAGING HUMAN RESOURCES TODAY
1. Organization: An organization consists of people with formally assigned roles who
work together to achieve the organization’s goals.
2. Manager: Someone who is responsible for accomplishing the organization’s goals,
and who does so by managing the efforts of the organization’s people.
3. Managing: To perform five basic functions: planning, organizing, staffing, leading,
and controlling.
4. Management process:
The five basic functions of planning, organizing, staffing, leading, and controlling.
• Planning: Establishing goals and standards; developing rules and procedures;
developing plans and forecasts.
• Organizing: Giving each subordinate a specific task; establishing departments;
delegating authority to subordinates; establishing channels of authority and
communication; coordinating the work of subordinates.
• Staffing: Determining what type of people should be hired; recruiting
prospective employees; selecting employees; setting performance standards;
compensating employees; evaluating performance; counseling employees; training
and developing employees.
• Leading: Getting others to get the job done; maintaining morale; motivating
subordinates.
• Controlling: Setting standards such as sales quotas, quality standards, or
production levels; checking to see how actual performance compares with these
standards; taking corrective action as needed.
Human resource management (HRM): The process of acquiring, training, appraising,
and compensating employees, and of attending to their labor relations, health and safety,
and fairness concerns.
These include:
• Conducting job analyses (determining the nature of each employee’s job)
• Planning labor needs and recruiting job candidates
• Selecting job candidates
• Orienting and training new employees

• Managing wages and salaries (compensating employees)
• Providing incentives and benefits
• Appraising performance
• Communicating (interviewing, counseling, disciplining)
• Training employees, and developing managers
• Building employee relations and engagement
And what a manager should know about:
• Equal opportunity and affirmative action
• Employee health and safety
• Handling grievances and labor relations
Why is Human Resource Management Important to All Managers?


Perhaps it’s easier to answer this by listing some of the personnel mistakes you don’t
want to make while managing. For example, you don’t want to:
• Have your employees not doing their best
• Hire the wrong person for the job
• Experience high turnover
• Have your company in court due to your discriminatory actions
• Have your company cited for unsafe practices
• Let a lack of training undermine your department’s effectiveness
• Commit any unfair labor practices
- Improving Profits and Performance: More important, it can help ensure that you get
results—through people.They were successful because they had the knack for hiring the
right people for the right jobs and then motivating, appraising, and developing them.
- You May Spend Some Time As An HR Manager: the experience was invaluable in
learning how to develop leaders and in understanding the human side of transforming a
company.
- HR for Small Businesses: And here is one final reason to study this book: you may
well end up as your own human resource manager. If you are managing your own small

firm with no human resource manager, you’ll probably have to handle HR on your own.
To do that, you must be able to recruit, select, train, appraise, and reward employees.
There are special HR Tools for
Line Managers and Small Businesses features in most chapters. These show small
business owners how to improve their human resource management practices.
Line versus Staff Authority
Authority: the right to make decisions, to direct the work of others, and to give orders.
Line authority gives managers the right (or authority) to issue orders to other managers
or employees. It creates a superior–subordinate relationship. Staff authority gives a
manager the right (authority) to advise other managers or employees. It creates an
advisory relationship.
Line managers: A manager who is authorized to direct the work of subordinates and
is responsible for accomplishing the organization’s tasks. → Have line authority. They
are authorized to give orders.
Staff managers: A manager who assists and advises line managers. → Have staff
authority. They are authorized to assist and advise line managers.
Human resource managers are staff managers. They assist and advise line managers
in areas like recruiting, hiring, and compensation. In practice, HR and line managers
share responsibility for most human resource activities. For example, human resource and
line managers in about two-thirds of the firms in one survey shared responsibility for
skills training. (Thus, the supervisor might describe what training she thinks the new
employee needs, HR might design the training, and the supervisors might then ensure that
the training is having the desired effect.)


Line Managers’ Human Resource Management Responsibilities
The direct handling of people always has been an integral part of every line manager’s
responsibility, from president down to the first-line supervisor. For example, one
company outlines its line supervisors’ responsibilities for effective human resource
management under the following general headings:

1. Placing the right person in the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working relationships
6. Interpreting the company’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining departmental morale
10. Protecting employees’ health and physical conditions
In small organizations, line managers may carry out all these personnel duties unassisted.
But as the organization grows, line managers need the assistance, specialized knowledge,
and advice of a separate human resource staff.
The Human Resource Department
In larger firms, the human resource department provides such specialized assistance.
Typical positions include compensation and benefits manager, employment and
recruiting supervisor, training specialist, and employee relations executive.
Recruiters: Maintain contacts within the community and perhaps travel extensively to
search for qualified job applicants.
Equal employment opportunity (EEO) representatives or affirmative action
coordinators: Investigate and resolve EEO grievances, examine organizational practices
for potential violations, and compile and submit EEO reports.
Job analysts: Collect and examine detailed information about job duties to prepare job
descriptions.
Compensation managers: Develop compensation plans, and handle the employee
benefits program.
Training specialists: Plan, organize, and direct training activities.
Labor relations specialists: Advise management on all aspects of union management
relations.
The Trends Shaping Human Resource Management

Globalization Trends: Globalization refers to companies extending their sales,
ownership, and/or manufacturing to new markets abroad. Thus Toyota builds Camrys in
Kentucky, and Apple assembles iPhones in China. Free trade areas agreements that
reduce tariffs and barriers among trading partners further encourage international trade.
The North American Free Trade Agreement (NAFTA) and the European Union (EU) are
examples.


Economic Trends: Although globalization supported a growing global economy, the
past 15 or so years were difficult economically. Gross national product (GNP)—a
measure of the United States of America’s total output—boomed between 2001 and
2007. During this period, home prices leaped as much as 20% per year. Unemployment
remained docile at about 4.7%.38 Then, around 2007–2008, all these measures fell off a
cliff. GNP fell. Home prices dropped by 10% or more (depending on city).
Unemployment nationwide soon rose to more than 10%. Some economists called it the
“Great Recession.”
Labor Force Trends: Complicating all this is the fact that the labor force in America is
growing more slowly than expected (which is not good, because if employers can’t get
enough workers, they can’t expand). To be precise, the Bureau of Labor Statistics
projects the labor force to grow at 0.2% per year from 2015 to 2025, compared with an
annual growth rate of 0.7% during the 2002–2012 decade.
Technology Trends: Technological change is also reshaping human resource
management. Just over half of companies in one survey were using digital and mobile
devices to “redesign HR.” For example 41% were designing mobile apps to deliver
human resource management services, and about a third were using artificial intelligence.
For instance, Accenture estimates that social media tools like Facebook and LinkedIn
will soon produce up to 80% of new recruits—often letting line managers bypass HR and
do their own recruiting.
Distributed HR and the New Human Resource Management
Perhaps the most important change is that more human resource management tasks are

being redistributed from a central HR department to the company’s employees and line
managers, thanks to digital tools like mobile phones and social media. For example, at
Google, when someone applies for a job, his or her information goes into a system that
matches the recruit with current Google employees based on interests and experiences. In
a process Google calls “crowdsourcing,” Google employees then get a big say in whom
Google hires.
HR and Performance
Today’s human resource manager is in a powerful position to do this and uses three main
levers to do so.
- The first is the HR department lever. He or she ensures that the human resource
management function is delivering its services efficiently. For example, this might
include outsourcing certain HR activities such as benefits management to vendors,
controlling HR function headcount, and using technology to deliver its services more cost
effectively.
- The second is the employee costs lever. For example, the human resource manager
takes a prominent role in advising top management about the company’s staffing levels
and in setting and controlling the firm’s compensation, incentives, and benefits policies.
- The third is the strategic results lever. Here the HR manager puts in place the policies
and practices that produce the employee competencies and skills the company needs to


achieve its strategic goals. For example a bank’s new software helped its customer
service reps improve their performance, thanks to new human resource training and
compensation practices.
HR and Performance Measurement Improving performance requires being able to
measure what you are doing. For example, when IBM’s former HR head needed $100
million to reorganize its HR operations several years ago, he told top management, “I’m
going to deliver talent to you that’s skilled and on time and ready to be deployed. I will
be able to measure the skills, tell you what skills we have, what [skills] we don’t have
[and] then show you how to fill the gaps or enhance our training.”

Human resource managers use performance measures (or “metrics”) to validate claims
like these. For example, median HR expenses as a percentage of companies’ total
operating costs average just under 1%. On average, there is about 1 human resource staff
person per 100 employees.
HR and Employee Engagement
Employee engagement: The extent to which an organization’s employees are
psychologically involved in, connected to, and committed to getting their jobs done. –
>Employee engagement is important because it drives performance.
New HR programs:
These included measurable objectives, new leadership development programs, new
employee recognition programs, improved internal communications programs, a new
employee development program, and new compensation and other policies.
HR and Strategy
Strategic human resource management: Formulating and executing human resource
policies and practices that produce the employee competencies and behaviors the
company needs to achieve its strategic aims.
For example, PepsiCo wants to deliver “Performance with Purpose,” in other words
financial performance while also achieving human sustainability, environmental
sustainability, and talent sustainability. PepsiCo has goals to measure financial
performance, for instance in terms of shareholder value and long-term financial
performance. Its goals for human sustainability include providing clear nutrition
information on products. Environmental sustainability goals include protecting and
conserving global water supplies. Talent sustainability goals include respecting
workplace human rights and creating a safe and healthy workplace.
Ethics: The principles of conduct governing an individual or a group; specifically, the
standards you use to decide what your conduct should be.
For example, prosecutors filed criminal charges against several Iowa meatpacking plant
human resource managers who allegedly violated employment law by hiring children
younger than 16.

The new HRM
The behaviors or competencies (with definitions) SHRM says today’s HR manager
should be able to exhibit:
• Leadership and Navigation: The ability to direct and contribute to initiatives and
processes within the organization.
• Ethical Practice: The ability to integrate core values, integrity, and accountability
throughout all organizational and business practices.
• Business Acumen: The ability to understand and apply information with which to
contribute to the organization’s strategic plan.
• Relationship Management: The ability to manage interactions to provide service
and to support the organization.
• Consultation: The ability to provide guidance to organizational stakeholders.
• Critical Evaluation: The ability to interpret information with which to make
business decisions and recommendations.
• Global & Cultural Effectiveness: The ability to value and consider the
perspectives and backgrounds of all parties.
• Communication: The ability to effectively exchange information with
stakeholders.
SHRM also says HR managers must have the basic knowledge of principles and practices
of the basic functional areas of HR, which include the following:
• Functional Area #1: Talent Acquisition and Retention
• Functional Area #2: Employee Engagement
• Functional Area #3: Learning and Development
• Functional Area #4: Total Rewards
• Functional Area #5: Structure of the HR Function
• Functional Area #6: Organizational Effectiveness and Development
• Functional Area #7: Workforce Management
• Functional Area #8: Employee Relations
• Functional Area #9: Technology and Data

• Functional Area #10: HR in the Global Context
• Functional Area #11: Diversity and Inclusion
• Functional Area #12: Risk Management
• Functional Area #13: Corporate Social Responsibility
• Functional Area #14: U.S. Employment Law and Regulations
• Functional Area #15: Business and HR Strategy
Gig workers: The large and growing workforce comprised of contract, temp, freelance,
independent contractor, “on-demand,” or simply “gig” workers.
HR and the Manager’s Skills
This text aims to help all managers develop the skills they’ll need to carry out the human
resource management–related aspects of their jobs, such as recruiting, selecting, training,


appraising, and incentivizing employees and providing them with a safe and fulfilling
work environment.
Building Your Management Skills features in each chapter cover matters such as how to
interview job candidates and train new employees.
HR Tools for Line Managers and Small Businesses features aim to provide small
business owners and managers in particular with techniques they can use to better
manage their small businesses.
Know Your Employment Law features highlight the practical information all managers
need to make better HR-related decisions at work.
Employee Engagement Guide for Managers features show how managers improve
employee engagement.
DISCUSSION QUESTIONS
1-1. What is human resource management?
Human resource management (HRM): The process of acquiring, training, appraising,
and compensating employees, and of attending to their labor relations, health and safety,
and fairness concerns.
1-2. Explain with at least five examples why “a knowledge and proficiency in HR

management concepts and techniques is important to all supervisors or managers.”
Having a solid understanding of HR management is crucial for supervisors and managers
because it allows them to effectively lead and support their teams. Here are five examples
of why HR knowledge is important:
- Recruitment and Selection: Managers need to know how to attract and select the right
candidates for their teams. They must understand the recruitment process, interview
techniques, and legal considerations to make informed hiring decisions.
- Performance Management: Supervisors must have the skills to set performance goals,
provide feedback, and evaluate employee performance. This knowledge enables them to
motivate their team members and improve overall productivity.
- Training and Development: Managers need to identify skill gaps within their teams and
provide appropriate training opportunities. Understanding HR concepts helps them design
and implement training programs that enhance employee skills and foster career growth.
- Employee Engagement: Supervisors play a vital role in creating a positive work
environment that promotes engagement and job satisfaction. HR knowledge equips them
with techniques to foster teamwork, recognize employee achievements, and address
concerns effectively.
- Legal Compliance: Managers are responsible for ensuring their actions comply with
labor laws and regulations. Understanding HR concepts helps them navigate legal issues
related to discrimination, harassment, wage and hour regulations, and more.


1-3. Discuss the changing trends in workforce diversity. How do these trends
influence HRM?
Workforce diversity refers to the variety of individuals in terms of their demographic
characteristics, such as age, gender, race, ethnicity, and cultural background. These
changing trends in diversity significantly impact HRM in several ways:
a. Inclusive Workplace: HRM must focus on creating an inclusive environment where
individuals from diverse backgrounds feel valued and respected. This involves
implementing diversity training programs, promoting cultural awareness, and embracing

different perspectives.
b. Talent Acquisition: HRM needs to adopt strategies to attract and recruit a diverse pool
of candidates. By recognizing the benefits of diversity, organizations can tap into a
broader talent pool and gain a competitive advantage.
c. Adapting Policies and Practices: HRM must continually review and update its policies
and practices to accommodate the needs and preferences of a diverse workforce. This
includes flexible work arrangements, religious accommodations, and language support.
d. Managing Cultural Differences: HRM plays a pivotal role in managing cultural
differences within the organization. This involves promoting cross-cultural
understanding, resolving conflicts, and facilitating effective communication across
diverse teams.
1-4. Why is it essential for managers to know about HRM concepts and techniques?
a. Effective Team Management: HRM knowledge equips managers with the skills to
recruit, develop, and retain talented individuals. This helps create high-performing teams
that contribute to organizational success.
b. Legal Compliance: Managers need to make decisions that align with labor laws and
regulations. Understanding HRM concepts ensures they are aware of legal requirements
related to hiring, compensation, employee rights, and more.
c. Conflict Resolution: Managers often encounter employee conflicts and grievances.
HRM knowledge enables them to handle these situations effectively, ensuring fair
treatment, and maintaining a harmonious work environment.
d. Performance Improvement: Managers play a significant role in enhancing employee
performance. With HRM knowledge, they can provide constructive feedback, identify
training needs, and implement performance management strategies.

1-5. Discuss with examples four important issues influencing HR management


today.
a. Technological Advancements: The rapid evolution of technology has revolutionized

HRM processes. HR departments now use applicant tracking systems for recruitment,
online learning platforms for training, and HRIS (Human Resource Information Systems)
for managing employee data.
b. Work-Life Balance: Achieving work-life balance has become a critical concern for
employees and organizations. HRM focuses on implementing policies and programs that
promote flexible work arrangements, wellness initiatives, and family-friendly benefits.
c. Talent Management and Retention: The war for talent continues to intensify. HRM
focuses on attracting and retaining top performers through competitive compensation
packages, career development opportunities, and creating a positive organizational
culture.
d. Ethical and Sustainable HR Practices: Organizations are increasingly focusing on
ethical and sustainable HR practices. This involves promoting fair and equitable
treatment of employees, ensuring compliance with labor laws and regulations, and
embracing environmentally responsible initiatives. HR departments play a crucial role in
fostering ethical conduct, implementing diversity and inclusion policies, and supporting
corporate social responsibility efforts.
1-6. Explain HR management’s role in relation to the firm’s line management.
HR management and line management work in partnership to achieve organizational
goals. Here's an overview of their roles:
HR Management:
● Develops HR strategies and policies aligned with the organization's goals.
● Designs and implements HR programs, such as recruitment, training,
compensation, and performance management.
● Ensures legal compliance and adherence to labor regulations.
● Handles employee relations, including conflict resolution and disciplinary actions.
● Provides guidance and support to line managers on HR-related matters.
● Monitors and analyzes HR metrics to identify trends and make data-driven
decisions.
● Collaborates with line managers to address workforce planning and talent
management.

Line Management:
● Implements HR policies and programs within their respective departments.
● Manages day-to-day operations and supervises employees.
● Sets performance goals and provides feedback to employees.


● Makes hiring decisions in collaboration with HR.
● Identifies training needs and supports employee development.
● Handles employee scheduling and workload management.
● Promotes a positive work environment and fosters team collaboration.
While HR management focuses on developing and implementing HR strategies and
programs, line management is responsible for executing these strategies within their
departments and ensuring their effective implementation.
1-7. Compare the authority of line and staff managers. Give examples of each.
Line Managers:
● Have direct authority over employees within their department.
● Responsible for achieving departmental goals and targets.
● Examples include department heads, supervisors, or team leaders.
● Line managers make day-to-day operational decisions, manage employee
performance, and allocate resources within their departments.
Staff Managers:
● Provide advice, support, and specialized expertise to line managers.
● Examples include HR managers, IT managers, or legal advisors.
● Staff managers do not have direct authority over employees in the same way as
line managers.
● Their role is to assist line managers in making informed decisions and ensure
compliance with policies and regulations.
For example, let's consider a manufacturing company:
● Line Manager: The production supervisor is responsible for overseeing the
production line, ensuring production targets are met, and managing the

performance of the production team.
● Staff Manager: The HR manager supports the production supervisor by providing
guidance on recruitment and selection, conducting training programs for the
production team, and handling employee relations issues.
CASE STUDY
Carter Cleaning Company
Jennifer Carter graduated from State University in June 2013 and, after considering
several job offers, decided to do what she really always planned to do—go into business
with her father, Jack Carter.
Jack Carter opened his first laundromat in 2001 and his second in 2004. The main
attraction of these coin laundry businesses for him was that they were capital intensive


rather than labor intensive. Thus, once the investment in machinery was made, the stores
could be run with just one unskilled attendant and have none of the labor problems one
normally expects from being in the retail service business.
The attractiveness of operating with virtually no skilled labor notwithstanding, Jack had
decided by 2003 to expand the services in each of his stores to include the dry cleaning
and pressing of clothes. He embarked, in other words, on a strategy of “related
diversification” by adding new services that were related to and consistent with his
existing coin laundry activities. He added these in part because he wanted to better utilize
the unused space in the rather large stores he currently had under lease. But he also did so
because he was, as he put it, “tired of sending out the dry cleaning and pressing work that
came in from our coin laundry clients to a dry cleaner 5 miles away, who then took most
of what should have been our profits.” To reflect the new, expanded line of services, he
renamed each of his two stores Carter Cleaning Centers and was sufficiently satisfied
with their performance to open four more of the same type of stores over the next five
years. Each store had its own on-site manager and, on average, about seven employees
and annual revenues of about $700,000. It was this six-store cleaning centers chain that
Jennifer joined upon graduating from State University.

Her understanding with her father was that she would serve as a troubleshooter and
consultant to the elder Carter with the aim of both learning the business and bringing to it
modern management concepts and techniques for solving the business’s problems and
facilitating its growth.
Questions
1-21. Make a list of five specific HR problems you think Carter Cleaning will have
to grapple with.
- Recruitment and Retention: Finding and retaining skilled employees, especially
managers and on-site staff, who possess the necessary expertise and work ethic to
maintain the quality of service.
- Training and Development: Ensuring that employees receive adequate training to
perform their duties effectively, including customer service skills, operating machinery,
dry cleaning techniques, and quality control.
- Performance Management: Implementing a performance management system to set
clear expectations, provide feedback, and reward high-performing employees, while
addressing underperformance and providing opportunities for improvement.
- Employee Relations: Establishing and maintaining positive employee relations,
addressing any conflicts or grievances that may arise, and fostering a supportive and
respectful work environment.
- Compensation and Benefits: Developing a fair and competitive compensation structure,


including wages and benefits, to attract and retain qualified employees and motivate them
to perform at their best.
1-22. What would you do first if you were Jennifer?
If I were Jennifer, the first step I would take is to conduct a comprehensive HR audit to
assess the current state of HR practices within the company. This would involve
reviewing existing policies, procedures, and documentation related to recruitment,
training, performance management, and compliance. Additionally, I would gather
feedback from employees to understand their concerns and expectations. Based on the

audit findings, I would develop an HR strategy and action plan to address the identified
HR problems and align HR practices with the company's goals and objectives.
Overall, my initial focus would be to understand the current HR landscape, identify areas
for improvement, and develop a strategic plan to address the HR challenges faced by
Carter Cleaning.

CHAPTER 3: HUMAN RESOURCE STRATEGY AND PERFORMANCE
Strategic plan: The company’s plan for how it will match its internal strengths and
weaknesses with its external opportunities and threats to maintain a competitive position.
Management planning involves five steps: setting goals, making basic planning
forecasts, reviewing alternative courses of action, evaluating which options are best, and
then choosing and implementing your plan.


Figure 3.1 Sample Hierarchy of Goals
Diagram for a Company
Policies and Procedures Policies and procedures provide the day-to-day guidance
employees need to do their jobs in a manner that is consistent with the com- pany’s plans
and goals. Policies set broad guidelines delineating how employees should proceed. For
example, “It is the policy of this company to comply with all laws, regulations, and
principles of ethical conduct. Each employee must observe this policy.”
Strategy: A course of action the company can pursue to achieve its strategic aims. (Một
q trình hành động mà cơng ty có thể theo đuổi để đạt được các mục tiêu chiến lược của
mình)
For example, Both PepsiCo and Coca-Cola face the same basic problem: people are
drinking fewer sugary drinks. However, they each chose different strategies to deal with
this. PepsiCo diversified by selling more food items like chips. Coca-Cola concentrated
relatively more on sweet beverages, and on boosting advertising to (hopefully) boost
Coke sales.
Strategic management: The process of identifying and executing the organization’s

strategic plan, by matching the company’s capabilities (strengths and weaknesses) with
the demands of its environment (its competitors, customers, and suppliers).
The Strategic Management Process:
Step1: Define the current business.
Step2: Perform external and internal audits
Step3: Formulate a new direction


Step4: Translate the mission into strategic goals
Step5: Formulate strategies to achieve the strategic goals
Step6: Implement the strategies
Step7: Evaluate performance
(Step 1-5: Strategic planning, Step 6: Strategic Execution, Step 7: Strategic Evaluation)
Vision statement: A general statement of the firm’s intended direction that shows, in
broad terms, “what we want to become.”
Mission statement: Summarizes what the company’s main tasks are today.
Corporate-level strategy: Type of strategy that identifies the portfolio of businesses
that, in total, comprise the company and the ways in which these businesses relate to each
other.

Type of Strategy at Each Company Level
Competitive strategy: A strategy that identifies how to build and strengthen the
business’s long-term competitive position in the marketplace.
Competitive advantage: Any factors that allow an organization to differentiate its
product or service from those of its competitors to increase market share.
Managers use three standard competitive strategies to achieve competitive
advantage:
● Cost leadership means becoming the low-cost leader in an industry. Walmart is a
classic example.
● Differentiation is a second possible competitive strategy. In a differentiation

strategy, the firm seeks to be unique in its industry along dimensions that are
widely valued by buyers. Thus, Volvo stresses the safety of its cars, Uber stresses


fast, seamless pickups, and GE stresses the reliability of its Greenville plant’s
aircraft parts.
● Focusers carve out a market niche (like Ferrari). They offer a product or service
that their customers cannot get from generalist competitors (such as Toyota).
Functional strategy: A department’s functional strategy identifies what the department
must do in terms of specific departmental policies and practices to help the business
accomplish its competitive goals.
Managers’ Roles in Strategic Planning
Devising a strategic plan is top management’s responsibility. However, top executives
rarely formulate strategic plans without the input of lower-level managers. Few people
know as much about the firm’s competitive pressures, vendor capabili- ties, product and
industry trends, and employee capabilities and concerns than do the company’s
department managers.
For example, the human resource manager is in a good position to supply “competitive
intelligence”—information on what competitors are doing. Details regarding competitors’
incentive plans, employee opinion surveys that elicit information about customer
complaints, and information about pending legislation such as labor laws are examples.
Human resource managers should also be the masters of information about their own
firms’ employees’ strengths and weaknesses.
Strategic Human Resource Management
Strategic Human Resource Management: Formulating and executing human resource
policies and practices that produce the employee competencies and behaviors the
company needs to achieve its strategic aims.
For example, a high-end hotel like the Shanghai Portman will have different employee
selection, training, and pay policies than will a small roadside motel because the
Shanghai’s customers expect service commensurate with the higher fees they’re paying.

For example, PepsiCo aims to deliver “Performance with Purpose.” This means
achieving financial performance while also achieving human sustainability,
environmental sustainability, and talent sustainability.
Management formulates strategic plans and goals. In turn, executing these plans and
achieving these goals depends on having the right mix of employee competencies and
behaviors. And finally, to produce these required employee competencies and behaviors,
the human resource manager must put in place the right mix of recruitment, selection,
training, and other HR strategies, policies, and practices


Strategy map: A strategic planning tool that shows the “big picture” of how each
department’s performance contributes to achieving the company’s overall strategic goals.
HR scorecard: A process for assigning financial and nonfinancial goals or metrics to the
human resource management related chain of activities required for achieving the
company’s strategic aims and for monitoring results.
Digital dashboard: Presents the manager with desktop graphs and charts, thus presenting
a computerized picture of where the company stands on all the metrics from the HR
Scorecard process.
Human resource metric: The quantitative gauge of a human resource management
activity such as employee turnover, hours of training per employee, or qualified
applicants per position.
For example, there is (on average) one human resource employee per 100 company
employees for firms with 100–249 employees. The HR employee-to-employee ratio
drops to about 0.79 for firms with 1,000–2,499 employees and to 0.72 for firms with
more than 7,500 employees.
Benchmarking Measuring how one is doing (for instance, in terms of employee turnover
or productivity) is rarely enough for deciding what to change. Instead, one must know
“How are we doing?” in relation to something. For example, are our accident rates rising
or falling? Similarly, you may want to benchmark your results and compare highperforming companies to your own, to understand what makes them better.

Strategy-based metric: Metrics that specifically focus on measuring the activities that
contribute to achieving a company’s strategic aims.
Workforce/Talent Analytics and Data Mining
● Data mining is “the set of activities used to find new, hidden, or unexpected
patterns in data”.
Employers are using talent analytics to answer questions like these:
● Analytical HR. For example, “Which units, departments, or individuals need
attention?” Lockheed Martin collects performance data to identify units needing
improvement.
● Human capital investment analysis . For example, “Which actions have the
greatest impact on my business?” By monitoring employee satisfaction levels,
Cisco was able to improve its employee retention rate from 65% to 85%, saving
the company nearly $50 million in recruitment, selection, and training costs.
● Talent value model. For example, “Why do employees choose to stay with or
leave my company?” For example, Google was able to anticipate when an
employee felt underutilized and was preparing to quit, thus reducing turnover
costs.
● Talent supply chain. For example, retail companies use special analytical models
to predict daily store volume and release hourly employees early.
HR audit: An analysis by which an organization measures where it currently stands and
determines what it has to accomplish to improve its HR function. (Kiểm toán nhân sự:
Một phân tích trong đó một tổ chức đo lường vị trí hiện tại của mình và xác định những
gì tổ chức phải hoàn thành để cải thiện chức năng nhân sự của mình)
Typical things audited include the following:
1. Roles and headcount (including job descriptions and employees categorized by
exempt/nonexempt and full- or part-time)
2. Compliance with federal, state, local employment–related legislation
3. Recruitment and selection (including use of selection tools, background checks,
and so on)

4. Compensation (policies, incentives, survey procedures, and so on)
5. Employee relations (union agreements, disciplinary procedures, employee
recognition)
6. Mandated benefits (Social Security, unemployment insurance, workers’ compensation, and so on)
7. Group benefits (insurance, time off, flexible benefits, and so on)
8. Payroll (such as legal compliance)
9. Documentation and record keeping (For example, do our files contain information
including résumés and applications, offer letters, job descriptions, performance
evaluations, benefit enrollment forms, payroll change notices, and documentation
related to personnel actions such as employee handbook acknowledgments?)
10. Training and development (new employee orientation, workforce develop- ment,


technical and safety, career planning, and so on)
11. Employee communications (employee handbook,
programs)
12. Termination and transition policies and practices.

newsletter,

recognition

Building High-performance work system
High-performance work system: A set of human resource management policies and
practices that promote organizational effectiveness.
- First, it shows examples of human resource metrics, such as hours of training per
employee, or qualified applicants per position.
- Second, it illustrates what employers must do to have high-performance systems.
- Third, show that high-performance work practices usually aspire to encourage employee
involvement and self-management.

Employee engagement refers to being psychologically involved in, connected to, and
committed to getting one’s jobs done. Engaged employees “experience a high level of
connectivity with their work tasks,” and therefore work hard to accomplish their taskrelated goals. Engaged employees do their jobs as if they own the company.
Why is employee engagement important ? Employee engagement is important because
it drives performance and productivity.
For example, based on a Gallup survey, business units with the highest levels of
employee engagement have an 83% chance of performing above the company median;
those with the lowest employee engagement have only a 17% chance.
The Employee Engagement Problem: The problem is that, depending on the study,
only about 21–30% of employees nationally are engaged. Gallup distinguishes among
engaged employees “who work with passion and feel a profound connection to their
company,” not-engaged employees who are essentially “checked out,” and actively
disengaged employees who “act out their unhappiness” by undermining what their
engaged coworkers are accomplishing. Gallup recently found that about 30% of
employees were engaged, 50% were not engaged, and 20% were actively disengaged.
What Can Managers Do to Improve Employee Engagement?
Managers improve employee engagement by taking concrete steps to do so, one
important activity is providing supportive supervision. Foster employee engagement
include making sure employees understand how their departments contribute to the
company’s success, see how their own efforts contribute to achieving the company’s
goals, and get a sense of accomplishment from working at the firm. Employees who are
highly involved as when working in self-managing teams also tend to be engaged
employees. Employers should also hold managers responsible for employee engagement.
How to Measure Employee Engagement ?
First, Accenture assesses how positively the employee speaks about the company and
recommends it to others. Second, it looks at who stays with the company, and why.
Third, it looks at “strive.” For instance, “do employees take an active role in the overall
success of the organization by moving beyond just doing tasks to going above and

beyond?
How Kia Motors (UK) Improved Performance with an HR Strategy Aimed at Boosting
Employee Engagement
Kia Motors today is a successful automobile manufacturer employing tens of thou- sands
of employees around the world, and one famous for its 10-year warranty and for the
quality and value of its products. However, Kia was not always so successful. In July
1997, Kia was under bankruptcy protection and having difficulty ser- vicing its $10.6
billion of debt. In 1998, Hyundai Motorcar Company of Korea purchased 51% of Kia.
That triggered a multiyear program aimed at improving Kia’s operating performance.
Today, Hyundai only owns about one-third of Kia Motors, although Kia is still a close
knit part of Hyundai Motor Group.

DISCUSSION QUESTIONS
3-1. What is strategic planning? Explain the steps involved in the strategic
management process.
Strategic planning is a process of setting goals, identifying strategies, and creating action
plans to achieve long-term objectives. It helps organizations define their direction and
allocate resources effectively.
The strategic management process consists of seven steps
Step 1: Assess the Current Position - In this step, the organization asks the question,
"Where are we now as a business?" It involves conducting a thorough analysis of the
internal and external factors that may impact the organization's performance. This
assessment helps identify the organization's strengths, weaknesses, opportunities, and
threats (SWOT analysis) and provides a foundation for strategic decision-making.
Step 2: Evaluate Internal and External Factors - Building upon the SWOT analysis, this
step involves a deeper evaluation of the organization's internal capabilities, resources, and
competencies, as well as the external environment. Internal analysis helps identify the
organization's core competencies and competitive advantage, while external analysis
considers factors such as market trends, industry dynamics, and competitive forces.
Step 3: Formulate a New Business Direction - Based on the assessment of the

organization's current position and the insights gained from the internal and external
analysis, this step focuses on formulating a new business direction. It involves identifying
potential opportunities for growth, exploring new markets or product/service offerings,
and considering potential strategic alternatives.
Step 4: Set Strategic Goals - Once the new business direction is established, it is
important to set clear strategic goals. These goals should be specific, measurable,
achievable, relevant, and time-bound (SMART). Setting strategic goals provides a clear
direction and helps guide decision-making throughout the organization.
Step 5: Choose Specific Strategies - With the strategic goals in place, the next step is to


choose specific strategies or courses of action to achieve those goals. This involves
identifying the key initiatives, projects, or actions that will help the organization move
towards its desired future state. Strategies may include market expansion, new product
development, cost leadership, differentiation, or strategic partnerships, among others.
Step 6: Implement the Strategic Plan - Implementation is a critical step where the chosen
strategies are put into action. It involves allocating resources, aligning organizational
structures and processes, and developing action plans to execute the strategic initiatives.
Effective implementation requires clear communication, employee engagement, and
monitoring progress to ensure that the strategies are being executed as planned.
Step 7: Evaluate the Strategic Plan - The final step involves evaluating the effectiveness
of the strategic plan. This includes monitoring and measuring the performance against the
set strategic goals, assessing the outcomes, and identifying any deviations or areas for
improvement. Evaluation helps organizations learn from their experiences, make
necessary adjustments, and continuously improve the strategic management process.
3-2. What are human resource metrics and benchmarking primarily used for?
Explain with an example of each.
Human resource metrics are quantitative measures used to assess and track various
aspects of an organization's workforce, such as employee performance, turnover rates,
training effectiveness, and diversity. These metrics provide valuable insights into the HR

function and help in decision-making.
Example of HR Metrics: One commonly used HR metric is the employee turnover rate. It
measures the percentage of employees who leave the organization within a specific
period. For instance, if a company has 100 employees and 10 employees leave in a year,
the turnover rate would be 10%.
Benchmarking involves comparing an organization's HR metrics and practices against
industry standards or best practices. It helps identify areas for improvement and provides
a basis for setting performance targets.
Example of Benchmarking: Let's say a manufacturing company wants to assess its
training effectiveness. They can benchmark their training program against other similar
companies in the industry to identify whether their training outcomes are comparable or
if there is room for improvement.
3-3. What are the three main features of the policies and practices of a highperformance work system?
High-performance work system: A set of human resource management policies and
practices that promote organizational effectiveness.
- Employee Involvement: It involves empowering employees to contribute their ideas,
suggestions, and opinions regarding work processes and decision-making. This could
include practices like participative management, self-managed teams, and regular
feedback sessions.
- Skill Development: A HPWS emphasizes continuous learning and development of