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MBA - HRM Human Resource Management 2017 - Mondy 14th Edition - Chapter Exercise - 04

HRM Human Resource Management

MBA - Human Resource Management 2017

R. Wayne Mondy, 2016, Human Resource Management, 14th Edition






4-1.   Prepare a job specification for each of the following jobs:


The minimum acceptable qualifications a person should possess in order to perform a particular job are contained in the job specification. Preparing a job specification for jobs without having a detailed knowledge of the job description is difficult, so a few assumptions will have to be made.


  1. Social media recruiter—Since social media recruiter positions are relatively new and few formal education opportunities exist, knowledge of social media will probably be self-taught. Therefore, experience in the industry for which the recruiter will work is important. Also included in the job specification would be the working knowledge of the use of social media technology such as LinkedIn, Twitter, and Facebook.


  1. Automobile mechanic for Lexus dealership—Lexus has a reputation for manufacturing a quality automobile. The company will want mechanics that are able to repair and maintain the Lexus the “company” way. Thus, either having received Lexus training or having experience working on Lexus automobiles is a must.


  1. Chef for an upscale restaurant—Graduating from a recognized culinary academy would likely be a basic requirment. Also, experience working under a master chef in upscale restaurants would be required.


  1. Cook at Burger King—It would likely be very important for cooks to be capable of learning to prepare burgers the “Burger King” way. No formal education is required but a desire to work hard, learn, and have a pleasant personality is important.


4-2.      The section titled “Layoff Alternatives” suggests that layoffs should only be used as a last alternative. Do you agree that alternatives should only be used as a desperate measure? Be prepared to defend your decision.


Layoffs should only be used as a desperate measure. At times, layoffs can be a necessary cost-cutting measure. However, there are counterproductive problems associated with layoffs such as increased turnover, especially among the best, most productive workers and creating anxiety among remaining staff, resulting in lower morale, reduced worker engagement, and decreased productivity. Therefore, firms need to look for alternatives to layoff and retain as many workers as possible.





  • What are the steps involved in the strategic planning process?


Strategic planning at all levels of the organization can be divided into four steps: (1) determination of the organizational mission, (2) assessment of the organization and its environment, (3) setting of specific objectives or direction, and (4) determination of strategies to accomplish those objectives.


  • What are the steps involved in the HR planning process?


After strategic plans have been formulated, human resource planning can be undertaken. Organizational plans identified in the strategic planning process are reduced to specific quantitative and qualitative human resource plans. Human resource planning has two components: requirements and availability. Forecasting human resource requirements involves determining the number and type of employees needed, by skill level and location. These projections will be affected by various factors, such as production plans and changes in efficiency levels.


In order to forecast the availability of human resources, the organization looks to both internal sources (presently employed employees) and external sources (the labor market). When the requirements and availability of employees have been analyzed, the firm is in a position to determine whether there will be a surplus or shortage of employees. Ways must be found to reduce the number of employees if a surplus of workers is projected. Some of these methods include restricted hiring, reduced hours, early retirements, and layoffs. If a shortage is forecast, the firm must look to sources outside the organization to secure the proper quantity and quality of workers. External recruitment and selection is then required.


  • What are the HR forecasting techniques?



Zero-base forecast: Forecasting method that uses the organization’s current level of employment as the starting point for determining future staffing needs.


Bottom-up forecast: Forecasting method in which each successive level in the organization, starting with the lowest, forecasts its requirements, ultimately providing an aggregate forecast of employees needed.


Relationship between Volume of Sales and Number of Workers Required: Historically, o<P>ne of the most useful predictors of employment levels is sales volume. The relationship between demand and the number of employees needed is a positive one.


  • Distinguish between forecasting human resource requirements and availability.


Requirements forecast: Determining the number, skill, and location of employees the organization will need at future dates in order to meet its goals. For example, manufacturing 1,000 personal computers each week might require 10,000 hours of work by assemblers during a 40-hour week. Dividing the 10,000 hours by the 40 hours in the workweek gives 250 assembly workers needed.


Availability forecast: Determination of whether the firm will be able to secure employees with the necessary skills, and from what sources.


  • What are the purposes of human resource databases?


A human resource database contains employee information that permits management to make HR decisions. Information that might appear in such databases includes, but is not limited to, the following: work history and experience, specific skills and knowledge, licenses or certifications held, organizational training completed, educational background, previous performance appraisal evaluations, assessment of strengths and weaknesses, developmental needs, promotion potential at present, and with further development, current job performance, field of specialization, job preferences, geographic preferences, career goals and aspirations, anticipated retirement date, and personal history, including psychological assessments.


  • What actions could a firm take if it forecasted a shortage of workers?


Discussion Question in MyManagementLab. Student responses will vary.


  • What are some alternatives to layoffs?


Discussion Question in MyManagementLab. Student responses will vary.


  • Define succession planning. Why is it important?


Succession planning is the process of ensuring that qualified persons are available to assume key managerial positions once the positions are vacant. This definition includes untimely deaths, resignations, terminations, or the orderly retirements of company officials.


  • What is the distinction between a job and a position? Define job analysis.


Job: Group of tasks that must be performed if an organization is to achieve its goals.


Position: A collection of tasks and responsibilities performed by one person.


Job analysis: Systematic process of determining the skills, duties, and knowledge required for performing specific jobs in an organization.


  • When is job analysis performed?


Job analysis is performed on three occasions. First, it is done when the organization is founded and a job analysis program is initiated for the first time. Second, it is performed when new jobs are created. Third, it is used when jobs are changed significantly as a result of new technologies, methods, procedures, or systems. Job analysis is most often performed because of changes in the nature of jobs.


  • What are the types of information required for job analysis?


Considerable information is needed if job analysis is to be accomplished successfully. The job analyst identifies the actual duties and responsibilities associated with the job. Work activities and worker-oriented activities are quite important.


In addition, knowledge of the types of machines, tools, equipment, and work aids that are used in performing the job is also important. Some job analysis systems identify the standards that are established for the job. Work measurement studies may need to be conducted to determine, for example, how long it takes for a task to be performed. With regard to job content, the analyst studies the work schedule, financial and nonfinancial incentives, and physical working conditions. Since jobs are often performed in conjunction with others, organizational and social contexts should also be noted. Also, specific education, training, and work experience pertinent to performing the job are identified.


  • What are the methods used to conduct job analysis? Describe each type.


Questionnaires: Job analyst administers a structured questionnaire to employees who then identify the tasks they perform in accomplishing the job.


Observation: Job analyst actually witnesses the work being performed and records his or her observations when the observation method is used.


Interview: Job analyst interviews both the employee and the supervisor.


Employee recording: Job analysis information may be gathered through the employees describing their daily work activities in a diary or log.


Combination: Combination of the above job analysis methods is often used.


  • What are the basic components of a job description? Briefly describe each.


Job identification: Section includes a job title and a job number or code. A good title will closely approximate the nature of the work content and will distinguish that job from others.


Date of the job analysis: Job analysis date is placed on the job description to aid in identifying job changes that would make the description obsolete.


Job summary: Job summary provides the reader with a concise overview of the job. It is generally a short paragraph that states the job content.


Duties performed: Body of the job description delineates the major duties to be performed. Usually one sentence beginning with an action verb (such as receives, performs, establishes, or assembles) adequately explains each duty.


  • What is the purpose of the Standard Occupational Classification?


The Standard Occupational Classification provides job descriptions for all U.S. workers in more than 800 occupations.


  • What is the purpose of the O*NET, the Occupational Information Network?


O*NET, the Occupational Information Network, is a comprehensive, government-developed database of worker attributes and job characteristics. It is the nation’s primary source of occupational information. It is a flexible, easy-to-use database system that provides a common language for defining and describing occupations.


  • What is meant by the statement “With team design, there are no narrow jobs”?


Discussion Question in MyManagementLab. Student responses will vary.


  • Describe how effective job analysis can be used to satisfy each of the following statutes: (a) Fair Labor Standards Act, (b) Equal Pay Act, (c) Civil Rights Act, (d) Occupational Safety and Health Act, and (e) Americans with Disabilities Act (ADA)/ADA Amendments Act.


  • Fair Labor Standards Act: Employees are categorized as exempt or nonexempt, and job analysis is basic to this determination. Nonexempt workers must be paid time and a half when they work more than forty hours per week. Overtime pay is not required for exempt employees.


  • Equal Pay Act: If jobs are not substantially different, similar pay must be provided. When pay differences exist, job descriptions can be used to show whether jobs are substantially equal in terms of skill, effort, responsibility, or working conditions.


  • Civil Rights Act: Job descriptions may provide the basis for adequate defenses against unfair discrimination charges in initial selection, promotion, and all other areas of human resource administration. When job analysis is not performed, defending certain qualifications established for the job is usually difficult.


  • Occupational Safety and Health Act: Job descriptions are required to specify elements of the job that endanger health, or are considered unsatisfactory or distasteful by the majority of the population.


  • Americans with Disabilities Act (ADA)/ADA Amendments Act: Employers are required to make reasonable accommodations for workers with disabilities. The EEOC defines reasonable accommodation as any modification or adjustment to a job, an employment practice, or the work environment that makes it possible for an individual with a disability to enjoy an equal employment opportunity. The ADA Amendments Act expands the definition of “disability” and many more applicants and employees are eligible for reasonable accommodations. Certainly stating that every task in a job is essential sends a red flag to the EEOC.


  • Why is competency modeling an important practice?


Competency modeling specifies and defines all the competeencies necessary for succss in a group of jobs that are set within an industry context.  They are important as they are often derived from an anlysis of the overall strategic statements of companies.


  • Define each of the following: (a) job design, (b) job enrichment, (c) job enlargement, (d) job rotation, and (e) reengineering.


Job design: Process of determining the specific tasks to be performed, the methods used in performing these tasks, and how the job relates to other work in an organization.


Job enrichment: Changes in the content and level of responsibility of a job so as to provide greater challenges to the worker.


Job enlargement: Increasing the number of tasks a worker performs, with all of the tasks at the same level of responsibility.


Job rotation:</KT><LINK LINKEND="MN2.07.020"><SIDEIND NUM="20" ID="MN2.07.020"/></LINK> Moves employees from one job to another to broaden their experience.


Reengineering: Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.


4-22.   Why is the use of talent management so important in today’s environment?


Discussion Question in MyManagementLab. Student responses will vary.





HRM Incident 1: A Degree for Meter Readers


Judy Anderson was assigned as a recruiter for South Illinois Electric Company (SIE), a small supplier of natural gas and electricity for Cairo, Illinois, and the surrounding area. The company had been expanded rapidly, and this growth was expected to continue. In January 2014, SIE purchased the utilities system serving neighboring Mitchell County. This expansion concerned Judy. The company workforce had increased by 30 percent the previous year, and Judy had struggled to recruit enough qualified job applicants. She knew that new expansion would intensify the problem.


Judy was particularly concerned about meter readers. The tasks required in meter reading are relatively simple. A person drives to homes served by the company, finds the gas or electric meter, and records its current reading. If the meter has been tampered with, it is reported. Otherwise, no decision making of any consequence is associated with the job. The reader performs no calculations. The pay was $10.00 per hour, high for unskilled work in the area. Even so, Judy had been having considerable difficulty keeping the 37 meter reader positions filled.


Judy was thinking about how to attract more job applicants when she received a call from the human resource director, Sam McCord. “Judy,” Sam said, “I’m unhappy with the job specification calling for only a high school education for meter readers. In planning for the future, we need better-educated people in the company. I’ve decided to change the education requirement for the meter reader job from a high school diploma to a college degree.” 


“But, Mr. McCord,” protested Judy, “the company is growing rapidly. If we are to have enough people to fill those jobs we just can’t insist that college graduates get paid to do such basic tasks.  I don’t see how we can meet our future needs for this job with such an unrealistic job qualification.”


Sam terminated the conversation abruptly by saying, “No, I don’t agree. We need to upgrade all the people in our organization. This is just part of a general effort to do that. Anyway, I cleared this with the president before I decided to do it.”




  • Should there be a minimum education requirement for the meter reader job? Discuss.


In this job, a simple reading and writing skills test could replace the educational requirement. While Mr. McCord’s goal of upgrading the educational level in the company is commendable, the standard of education he is imposing is probably legally indefensible. It certainly will make Judy’s job more difficult. Having overqualified persons in jobs frustrates the worker and often results in too-rapid turnover. People with college degrees should, in general, be brought into the company in jobs that will challenge them.


  • What is your opinion of Sam’s effort to upgrade the people in the organization?


Sam’s effort is probably misguided. It is not at the very lowest level where SIE probably needs educated people. If the company is growing rapidly, the need for workers, managers, and technically skilled persons should be increasing. Lower levels of an organization should not be deprived of a proper match between worker and job just in order to have more highly educated employees available.


  • What legal ramifications, if any, should Sam have considered?


If Sam’s new educational requirements result in a disproportionate exclusion of minorities from the workforce, the company will be susceptible to a challenge on civil rights grounds. It is surprising that a human resource director like Sam could make such a mistake. It is national policy, reflected in the Civil Rights laws that the qualifications for access to jobs in general relate to the ability to do those jobs. This attitude should permeate the human resource management practices at SIE.


  • Based on the information provided in this incident, what tasks would likely be included in the “Duties Performed” section? How would this affect the job specification section?


Duties performed for the meter reader position: Drive to central location, locate the gas meter, electronically record the current reading, report meters that have been tampered with, return to car, and go to another location.


Job specification: Driver’s license required, high school graduate preferred, dependable.


HRM Incident 2: Strategic HR?


Brian Charles, the vice president of marketing for Sharpco Manufacturing, commented at the weekly executive directors’ meeting, “I have good news. We can get the large contract with Medord Corporation. All we have to do is complete the project in one year instead of two. I told them we could do it.”


             Charmagne Powell, vice president of human resources, brought Brian back to reality by reminding him, “Remember the strategic plan we were involved in developing and we all agreed to? Our present workers do not have the expertise required to produce the quality that Medord’s particular specifications require. Under the two-year project timetable, we planned to retrain our present workers gradually. With this new time schedule, we will have to go into the job market and recruit workers who are already experienced in this process. We all need to study your proposal further. Human resource costs will rise considerably if we attempt to complete the project in one year instead of two. Sure, Brian, we can do it, but with these constraints, will the project be cost-effective?”




  • Was Charmagne considering the strategic nature of human resource planning when she challenged Brian’s “good news” forecast? Discuss.


Charmagne was considering the strategic nature of human resource planning when she challenged Brian’s “good news” forecast. In today’s fast-paced, competitive environment, failure to recognize the strategic nature of human resource planning will often destroy an otherwise well-thought-out plan.


  • How did the involvement in developing the corporate strategic plan assist Charmagne in challenging Brian?


Without this strategic outlook and attitude, Charmagne might have just gone along with Brian’s proposal and tried to make the best out of a bad situation. As with Charmagne, HR executives now have the role of a strategic partner with line executives in assuring that the organization achieves its mission.  Brian Charles tried to exclude HR from the strategic planning process and wanted to accept a contract that would not be cost effective because of HR constraints. Charmagne, acting in her strategic planning role, did not accept his proposal.


  • Strategic planning at all levels of the organization can be divided into four steps. Which step in the strategic planning process did Brian violate?


Brian did not properly evaluate the environment assessment phase of the strategic planning process. Here, the organization should assess its strengths and weaknesses in the internal environment and the threats and opportunities from the external environment (often referred to as a SWOT analysis). A weakness is that the company does not have the workforce on board to complete the project in one year.







Human Resource Management
Human Resource Management, 15th Edition, 2017, Gary Dessler,
Strategic Compensation: A Human Resource Management Approach, 9th Edition, 2017, Joseph J. Martocchio
Fundamentals of Human Resource Management, 4th Edition, 2016, Gary Dessler
Human Resource Management, 14th Edition, 2016, R. Wayne Dean Mondy, Retired, Joseph J. Martocchio
Mastering Project Human Resource Management: Effectively Organize and Communicate with All Project Stakeholders, 2015, Harjit Singh
Managing Human Resources, 8th Edition, 2016, Luis R. Gomez-Mejia, David B. Balkin, Robert L. Cardy


PART 1: Setting the Stage for Strategic Compensation
1. Strategic Compensation: A Component of Human Resource Systems
2. Contextual Influences on Compensation Practice
PART 2: Bases for Pay
3. Seniority Pay and Merit Pay
4. Incentive Pay
5. Person-Focused Pay
PART 3: Designing Compensation Systems
6. Building Internally Consistent Compensation Systems
7. Market-Competitive Compensation Systems
8. Building Pay Structures that Recognize Employee Contributions
PART 4: Employee Benefits
9. Discretionary Benefits
10. Legally-Required Benefits
PART 5: Contemporary Strategic Compensation Challenges
11. Compensating Executives
12. Compensating the Flexible Workforce
PART 6: Compensation Around the World
13. Compensating Expatriates
14. Pay and Benefits outside the United States
15. Challenges Facing Compensation Professionals
Managing Human Resources Today
Managing Equal Opportunity and Diversity
Human Resource Strategy and Analysis
Job Analysis and Talent Management
Personnel Planning and Recruiting
Selecting Employees
Training and Developing Employees
Performance Management and Appraisal
Managing Careers
Developing Compensation Plans
Pay for Performance and Employee Benefits
Maintaining Positive Employee Relations
Labor Relations and Collective Bargaining
Improving Occupational Safety, Health, and Risk Management
Managing HR Globally
Managing Human Resources in Small and Entrepreneurial Firms
PHR and SPHR Knowledge Base
Comprehensive Cases
Human Resource Management: An Overview
Business Ethics and Corporate Social Responsibility
Equal Employment Opportunity, Affirmative Action, and Workforce Diversity
Strategic Planning, Human Resource Planning, and Job Analysis
Performance Management and Training
Performance Management and Appraisal
Training and Development
Direct Financial Compensation (Core Compensation)
Indirect Financial Compensation (Employee Benefits)
Labor Relations, Employee Relations, Safety, and Health
Labor Unions and Collective Bargaining
Internal Employee Relations
Employee Safety, Health, and Wellness
Operating in a Global Environment
Global Human Resource Management
Lectures, Test Bank, Case Study, Video Guides
Equal Opportunity,
Recruitment, Placement, Talent Management,
Job Analysis, Talent Management Process,
Personnel Planning, Recruiting,
Employee Testing, Selection,
Training, Development,
Developing Employees,
Performance Management, Appraisal,
Managing Careers, Retention,
Establishing Strategic Pay Plans,
Pay for Performance, Financial Incentives,
Benefits, Services,
Labor Relations,
Human Resource Management Lectures




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