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MBA - HRM Human Resource Management 2017 - Mondy 14th Edition - Chapter Exercise - 05

HRM Human Resource Management

MBA - Human Resource Management 2017

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





5-1.      Contingent workers are seen as a valuable resource to employers.  Describe the conditions under which contingent workers are likely to be most highly valued by employers.  Also, do you believe the employers will replace many of their full-time workers with contingent workers?  Explain your answer. 


Contingent workers are the human equivalents of just-in-time inventory for employers.  They provide maximum flexibility for the employer and lower labor costs.  These workers are likely to be highly valued by employers when the labor market is uncertain.  Because of the flexibility contingent workers provide, it is very likely that employers will continue to use them, even when the economy is more stable.


5-2.      You see the following ad in your local newspaper: Telephone sales: Woman, age 25-40, needed for telephone sales.  Selected applicant must have high school diploma and good credit rating.  E-mail your résumé to This email address is being protected from spambots. You need JavaScript enabled to view it.. Are there possibly hiring standards to avoid in this ad?


Several hiring standards to avoid were included in this ad.


Woman: Specifying that you are only seeking a woman may have violated the Civil Rights Act.


Age 25-40: Specifying that the woman be only between 25 and 40 may have violated the Age Discrimination in Employment Act.


Requiring a high school diploma and a good credit rating: May have violated the Griggs v Duke Power Company Supreme Court decision in that when human resource management practices eliminate substantial numbers of minority or women applicants (prima facie evidence), the burden of proof is on the employer to show that the practice is job related. Requiring a high school diploma and a good credit rating would fall within this category.


5-3.      The process of matching sources and methods of recruitment was discussed in this chapter. For the following positions, match sources and methods.  Assume that in all cases you must use external recruitment to fill the position.  Justify your choices.


  1. College professor who just received his or her Ph.D.

            Source: Universities granting Ph.D.’s

Methods:  Professional associations; advertisement in such journals as the Chronicle of Higher Education and university Web sites.


  1. Senior accountant with a CPA

Source: Competitors in labor market 

Methods: Advertising, Employment agencies, Professional associations and Web sites


  1. Entry-level accountant

            Source: Colleges and universities 

            Methods: Recruiters, Internships, Job fairs, and Web sites


  1. Skilled automobile mechanic

            Source: Competitors in the labor market 

            Methods: Public and private employment agencies and Web sites


  1. Entry-level machine operator

Source: High schools, Vocational schools, Community colleges 

Methods: Advertising, public employment agencies, and Web sites





5-.4      Define recruitment.


Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications to apply for jobs with an organization.


  • What are factors external to the organization that can significantly affect the firm’s recruitment efforts?



 Labor market conditions—A firm’s recruitment process may be simplified when the unemployment rate in an organization’s labor market is high. If demand for a particular skill is high relative to supply, an extraordinary recruiting effort may be required.


Active or passive job seekersActive job seekers, whether presently employed or not, are committed to finding another job. Passive job seekers, on the other hand, are typically employed, satisfied with their employer, and content in their current role.


Legal considerations—A poorly conceived recruiting process can do much to create problems in the selection process. Therefore, it is essential for organizations to emphasize nondiscriminatory practices at this stage.


  • How has social media emerged as an important force in recruiting?


Many organizations are leaving newspapers and general-purpose job boards and turning instead to such avenues as social media recruiting. It has often been said that “If you are not using social media to get recruits, your competitors likely are.” Social networking is the buzzword in recruiting these days. Social media recruiting is based on the principle that people are social animals. They have lots of friends, so send them job postings and they will circulate them to their friends. If you are looking for a job, tell your “friends” and they may be able to help.


  • What are the steps involved in the recruitment process?


Frequently recruitment begins when a manager initiates an employee requisition. The requisition is a document that specifies various details including job title, department, and the date the employee is needed for work. Next, one must determine whether qualified employees are available within the firm (the internal source) or must be recruited externally from sources such as colleges, universities, and other firms. Due to high costs of recruiting, organizations must be assured that they are using the most productive recruitment sources and methods. Sources are where qualified candidates are located, and methods are the specific means to attract potential employees to the firm. Once the sources of potential employees are isolated, appropriate methods for either internal or external recruiting are used to accomplish recruitment goals.


  • Distinguish between recruitment sources and recruitment methods.


Recruitment sources: Where qualified candidates are located.

Recruitment methods: Specific means used to attract potential employees to the firm.


  • What are some internal recruitment methods?


Job Posting and Job Bidding: Job posting is a procedure for informing employees that job openings exist.  Job bidding is a procedure that permits employees who believe that they possess the required qualifications to apply for a posted position.


  • Why is employee referral so important in the recruitment process?


Employee referrals continue to be the way that top performers are identified. Because of this, many companies are beefing up their employee referral program. Many organizations have found that their employees can serve an important role in the recruitment process by actively soliciting applications from their friends and associates. Some firms even give incentives, financial or otherwise, for successful referrals.


  • What traditional external methods of recruitment are available?


Media Advertising

Employment agencies


Job fairs


Executive search firms

Professional associations

Unsolicited applicants

Open houses

Event recruiting

Sign-on bonuses

Competitive games


  • What external sources of recruitment are available?


High schools and vocational schools

Community colleges

Colleges and universities

Competitors in the labor market

Former employees


Military personnel

Self-employed workers



  • What might be some advantages of using mobile recruiting?


The world of recruiting via mobile technology is moving at light-speed. More and more people are adopting mobile technology and many organizations are trying to figure out how to start using mobile devices in the recruiting process. Recruiters use mobile apps to post jobs, run text message-based recruiting campaigns, create online communities for potential new hires to learn about their companies, monitor social networks for news about industries they hire for, and keep in touch with staff and outside agencies. These tasks used to have to be done from a desktop or laptop computer. The move to mobile recruiting has generated blogs, webinars, seminars, e-newsletters, and online groups.


  • What online recruitment methods are available?


  • Internet recruiter: Also called a “cyber recruiter,” is a person whose primary responsibility is to use the Internet in the recruitment process.


  • Virtual job fair: Online recruiting method engaged in by a single employer or group of employers to attract a large number of applicants.


  • Corporate career Web sites: Job sites accessible from a company homepage that list the company positions available and provide a way for applicants to apply for specific jobs.


  • Weblogs, or blog: Google or a blog search engine such as Technorati.com can be used.


  • General-Purpose Job Boards: Firms use general-purpose job boards by typing in key job criteria, skills, and experience, and indicating their geographic location. Job seekers can search for jobs by category, experience, education, location, or any combination of categories.


  • NACElink Network: Result of an alliance among the National Association of Colleges and Employers, DirectEmployers Association, and Symplicity Corporation, is a national recruiting network and suite of Web-based recruiting and career services automation tools serving the needs of colleges, employers, and job candidates.


  • .Jobs: Network of employment Web sites where any company can list job openings for free.


  • AllianceQ: Group of Fortune 500 companies, along with over 3000 small and medium-sized companies, that have collaborated to create a pool of job candidates.


  • Niche sites: Web sites that cater to highly specialized job markets such as a particular profession, industry, education, location, or any combination of these specialties.


  • Contract Workers’ Sites: Sites are available to assist contingent workers.


  • Hourly Workers’ Sites: Sites available to attract blue-collar and service workers.


  • What are the typical alternatives to recruitment that a firm may use?


Contingent Workers<H2>: Described as the “disposable American workforce” by a former secretary of labor, have a nontraditional relationship with employers and work as part-timers, temporaries, or independent contractors.</P> <P>Contingent workers are the human equivalents of just-in-time inventory.


Offshoring is the migration of all or a significant part of the development, maintenance and delivery of services to a vendor located in another country.


Onshoring involves moving jobs not to another country but to lower cost American cities.


Overtime: Perhaps the most commonly used method of meeting short-term fluctuations in work volume is through the use of overtime.


  • What is meant by the policy of promotion from within?


Promotion from within (PFW) is the policy of filling vacancies above entry-level positions with current employees. When an organization emphasizes promotion from within, its workers have an incentive to strive for advancement. When employees see co-workers promoted, they become more aware of their own opportunities.


  • Define reshoring. Why is it being used as an alternative to offshoring?


Reshoring is the reverse of offshoring and involves bringing work back to the United States. Advocates of reshoring believe that manufacturers should calculate the real impact of offshoring because there are often hidden expenses such as higher costs for travel, packaging, shipping, and inventory.





HRM Incident 1: A Problem Ad?


Dorothy Bryant was the new recruiting supervisor for International Manufacturing Company in Salt Lake City, Utah. One of Dorothy’s first assignments was to recruit two software design engineers for International. Design engineers are hard to recruit because of the difficulty of their training and the high demand for them. After considering various recruitment alternatives, Dorothy placed the following ad in a local newspaper with a circulation in excess of 1,000,000:




2 positions available for engineers desiring career in growth industry.

Prefer recent college graduates with good appearance.

Good credit rating

Apply Today! Send your résumé,

in confidence, to: D. A. Bryant

International Manufacturing Co., P.O. Box 1515

Salt Lake City, UT  84115

More than 300 applications arrived in the first week, and Dorothy was elated. When she reviewed the applicants, however, it appeared that few people possessed the desired qualifications for the job.




  • Dorothy overlooked some of the proper recruiting practices, which resulted in an excessive number of unqualified people applying. What are they?


She obviously failed to include specific job requirements in her newspaper ad. As a result, an excessive number of unqualified people applied. She should have based her ad on the content of the job description. The ad described above does not suggest what is required of the job.


  • Identify the hiring standards that should be avoided in the ad.


The road is paved for a potential legal problem because Dorothy uses a subjective criterion, good appearance, which may not be job related. In addition, stating a preference for a recent college graduate may also prove to be ill advised because of the age implication. Adding further to Dorothy’s dilemma is the potential liability her ad creates for the firm by implying a career for employees. Her corporate attorney will probably advise her to avoid any semblance of creating an implied contract for a candidate who is hired. The individual may later be discharged, and then sue the company for breach of contract.


  • What recruitment sources and methods might have been used to have generated a better applicant pool for the two software design engineer positions for International Manufacturing? Defend your recommendations.


Sources: Dorothy specified that she desired “recent college graduates.” If this is indeed true the likely source for qualified applicants would be universities offering degrees in systems engineering or computer science. If she had wanted experienced software design engineers, likely sources would have been competitors in the labor market.


Method: The most likely recruitment method for recent graduates in software design engineers would be the use of college recruiters. Of course, Dorothy should have placed the ad on the firm’s corporate career Web site. NACElink and networking might also be used.


HRM Incident 2: I Am Qualified, Why Not Me?


Five years ago when Bobby Bret joined Crystal Productions as a junior accountant, he felt that he was on his way up. He had just graduated with a B+ average from college, where he was well liked by his peers and by the faculty and had been an officer in several student organizations. Bobby had shown a natural ability to get along with people as well as to get things done. He remembered what Roger Friedman, the controller at Crystal, had told him when he was hired: “I think you will do well here, Bobby. You’ve come highly recommended. You are the kind of guy that can expect to move right on up the ladder.”


Bobby felt that he had done a good job at Crystal, and everybody seemed to like him. In addition, his performance appraisals had been excellent. However, after five years he was still a junior accountant. He had applied for two senior accountant positions that had opened, but they were both filled by people hired from outside the firm. When the accounting supervisor’s job came open two years ago, Bobby had not applied. He was surprised when his new boss turned out to be a hotshot graduate of State University whose only experience was three years with a large accounting firm. Bobby had hoped that Ron Greene, a senior accountant he particularly respected, would get the job.


On the fifth anniversary of his employment at Crystal, Bobby decided it was time to do something. He made an appointment with the controller. At that meeting Bobby explained to Mr. Friedman that he had worked hard to obtain a promotion and shared his frustration about having been in the same job for so long. “Well,” said Mr. Friedman, “you don’t think that you were all that much better qualified than the people that we have hired, do you?” “No,” said Bobby, “but I think I could have handled the senior accountant job. Of course, the people you have hired are doing a great job too.” The controller responded, “We just look at the qualifications of all the applicants for each job, and considering everything, try to make a reasonable decision.”




  • Do you believe that Bobby has a legitimate complaint? Explain.


Bobby probably has a legitimate complaint. Crystal will likely experience a high turnover if they continue the policy of only hiring external candidates. Bobby may be one of the first to leave.


  • Explain the benefits of a promotion from within policy. Would such a policy be appropriate for Crystal?


When an organization emphasizes promotion from within, its workers have an incentive to strive for advancement. When employees see coworkers being promoted, they become more aware of their own opportunities. Motivation provided by this practice often improves employee morale. A promotion from within policy likely will provide a motivational tool for Crystal. Certainly Bobby would be pleased.










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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