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Solution Manual For
Human Resource Management 11e Alan NankervisMarian BairdDr Jane CoffeyJohn Shields Chapter 1-
Chapter 1
Evolution of strategic human resource
management
Contents Learning objectives .................................................................................................................... 1 Summary .................................................................................................................................... 2 Development and concepts of SHRM........................................................................................ 3 SHRM, business strategies, perspectives and models ............................................................... 3 Strategic international human resource management ................................................................ 4 SHRM: Roles, functions and ethical principles ......................................................................... 5 Sample responses to emerging issues ........................................................................................ 5 Tutorial activities and sample responses.................................................................................... 8 Sample response to ethical challenge ...................................................................................... 10 Sample response to case study 1.1 ........................................................................................... 11 Sample response to case study 1.2 ........................................................................................... 12
Learning objectives
After reading this chapter, you will be able to: 1 explain the development and concepts of strategic human resource management (SHRM) 2 evaluate the contemporary challenges and opportunities presented to human resource management (HRM) by dynamic global and national environments 3 discuss the relationship between business strategies and HRM strategies and processes 4 explain the nature and characteristics of strategic international human resource management (SIHRM)
5 understand the principal roles, functions, competencies, skills and ethical principles of SHRM professionals 6 understand the SHRM model and framework used throughout this text.
Summary
SHRM is a complex and rapidly changing field of practice. Despite its comparatively recent origins, and drawing upon both overseas and local influences, SHRM is a critical factor in the success of all organisations. Modern SHRM is a dynamic specialisation in the process of refining its philosophies, practices and overall contributions to organisational effectiveness. In response to external influences, including globalisation; political, demographic, technological, pandemic-related and employability challenges; and significant transitions in the nature of global jobs and workplaces, SHRM and, in particular, SIHRM, require the adoption of a strategic approach to the management of human resources for organisational and employee benefit. As with other professions, SHRM confronts a number of difficult issues and dilemmas concerning its ethical frameworks, roles, processes and practices. Further development of SHRM will eventually resolve these issues in creative and effective ways. The SHRM model presented in this chapter and throughout the book provides a useful practical framework for exploring these dilemmas.
Student activity 1.
The introduction to the chapter suggests that developments in business operations and technology, as well as political, economic, pandemic-related and social changes, have begun to transform the nature of jobs and workplaces. To help students understand the human resource impact of strategic business decisions, the following discussion topics and activities are offered. Either working in groups or individually, ask students to think about and discuss the following.
- Consider and identify the technological developments and workplace changes that have occurred in a specific industry over the past 10–15 years; for instance, banking and finance, education, tourism or retail.
- Examine the HR implications of these developments and changes.
- List the changes in HRM practices in the fast-moving consumer goods (FMCG) industry, then discuss the possible pros and cons of such changes and if these adapted strategies should be retained in the post-pandemic period.
- Conduct a visioning exercise. Take a specific industry (e.g., manufacturing, hospitality, telecommunications, etc.) and brainstorm the changes that are likely to occur within that industry over the next 10–20 years, then explore the HR implications of the predicted changes.
This is a useful point at which to engage with the students about their future career aspirations. It can be surprising to find that many students have not given a great deal of thought to the structure of their own careers and the roles they wish to play in business or human resources.
My business career This activity is a very brief visioning and action planning exercise. Working individually at first, then in small groups, ask the students to predict where they will be in two, five and 10 years’ time. Suppose their plans have gone smoothly; they received the grades they wanted from university, college or school; they have been appointed to the positions they wanted; they have sufficient resources to keep meeting their needs and so on. If required, you could use the following questions as prompts:
- What role will you be working in?
- Where will you be located?
- What is the focus of your life?
- Have you undertaken any additional education?
- Are you employed in the human resources field? If so why; if not, why not? Encourage all students to consider their future and to develop an action plan and specific goals that must be achieved in order for their vision to be fulfilled.
Strategic international human resource
management
Student activity 1.
Provide students with an opportunity to explore the difficulties involved in determining how global workforces are managed. Individually or in groups, ask students to choose a country from a predetermined list (e.g., India, China, Germany, Italy, Ireland, Japan, Korea, Indonesia, Finland and USA). Alternatively, you can let them choose any country, but ensure that a range of countries has been selected (i.e., try to avoid six groups examining China). Next, ask students to select three HR functions from the list on page 29 (e.g., human resource information management system; career management; talent attraction, selection and retention; work health and safety; industrial relations management; performance and quality management).
- List the things a human resources manager at a multinational with employees based in the chosen country would need to consider.
- What are the HR policy and practice implications?
- What is the impact of globalisation on HR policies and practices?
- What is the impact of technological advances for HR in multinationals? Ask students to develop an action plan of the strategic considerations needed and the SIHRM policies and practices that would follow.
Teaching note
This exercise can be used as an in-class activity to help students to begin thinking deeply about SIHRM and globalisation. Alternatively, the exercise can be expanded into a larger research project in which students are required to find an organisation,
analyse its HRM strategy, then develop an internationalisation strategy for that organisation. The students can then explore and justify the HRM strategy (using research) and the implications for the processes and policies of managing an international workforce. This exercise can, therefore, form a component of formal assessment.
SHRM: Roles, functions and ethical
principles
Student activity 1.
Exploring ethical dilemmas is the most effective way of asking students to examine the nature of professionalism and ethical codes. Usually, it is not until conflicts between values and ethics arise that the difficulties in decision making occur. Individually or in small groups, ask students to visit the Ethics Centre at http://www.ethics.org.au, which has archived numerous cases of ethical dilemmas. Students can choose a specific case, then prepare a brief presentation for the class that explores the dilemma from an HR perspective. The students could also lead a class debate about the dilemma and how it might be resolved.
Sample responses to emerging issues
The emerging issues that follow are intended to encourage students to analyse topics discussed in the text and should be supplemented with further reading. The provided responses are intended only as a guide to promote discussion and are not the ‘correct’ response. Used effectively, these emerging issues should extend students’ appreciation of the evolution of HRM.
Emerging issue 1 – Globalisation and de-globalisation
Globalisation of business has become the norm, with the economic interconnectedness of nations and their organisations facilitated by new technologies and an increasing number of trade agreements developing between countries and regions. More recently, especially due to the impact of COVID-19 and tensions in the trading relationship between Australia and China, there has been discussion of ‘de- globalisation’ (or the ‘re-onshoring’) of manufacturing and back-office operations (for example, call centres) to their Australian operations.
1 Consider the benefits and disadvantages of de-globalisation processes in an industry of your choice.
characteristics to respond and problem solve in ways similar to the human experience. At present, among the jobs most likely to become automated or replaced is transportation (e.g., driverless trucks for transportation; delivery drones; driverless vehicles to replace taxis, Ubers, buses). Self-check-in and check-out facilities will also reduce jobs in the retail and tourism industries. Online platforms could replace classroom teachers (education), travel agents (travel and tourism), accountants and bank tellers (financial arrangements), and print journalism (media). Students should be able to identify careers that will be harder to replace and to suggest a strategy to balance robotic and human work systems. For example, people will be needed to ensure that any robotic solutions continue to meet the needs of organisations and their customers.
Emerging issue 4 – COVID-
Apart from the direct community health concerns associated with COVID-19, there have been significant effects on workplaces, jobs, work organisation and employee competencies.
1 Do you think that these effects will be long or short term in their impacts?
2 How well have employers responded to these challenges?
Students may present a range of responses as COVID-19 has had multifaceted impacts on different people depending on diverse issues. Some of these issues are listed below:
- Health and mental conditions
- Working environment
- Nature of work itself
- Social class in which the employee belongs
- Work–life balance perspective
Emerging issue 5 – Employability or work-readiness
Using Figure 1.2: Work-Readiness Integrated Competency Model as your framework:
1 Rate your level of mastery of each of the competencies in the model on a scale of 1 (lowest) to 5 (highest).
2 Compare your assessments with one of your colleagues.
3 Consider your common strengths and weaknesses.
4 How can you improve ratings in your weaker competencies?
Answers to questions 1–3 should be based on the students’ evaluations of themselves. Competency improvement strategies and an overall evaluation may be influenced by accountability, employer and employee competencies, and compatibility with the organisational goal and environment.
Tutorial activities and sample
responses
1 In small groups, draw up two separate lists of the features you consider would lead to the ideal workplace for (a) management and (b) employees. Discuss your choices with the other group members and consider the areas in which conflict might arise between the two. How might these issues be reconciled?
Conflict areas will include remuneration, working conditions, work structure, training and development, and rewards. To reconcile these issues, it is important to have an open and transparent discussion while being mindful of the psychological contract that exists. Employees and management have mutual obligations to one another and while it is important for the business to maximise profits, it must seek compromise with its employees in order to achieve this. Equitable remuneration, flexible working hours, performance-based rewards and career plans are all techniques that can be used as tools to meet employee and management needs.
2 Do you think companies such as McDonald‟s, KFC and 7-Eleven have effective psychological contracts with their employees? How are they demonstrated and how could they be improved for both franchisees and employees?
Students will have different ideas on this topic; however, the foundation for their answers should be a clear understanding of the psychological contract. The psychological contract is seen as assuming two forms: the transactional contract and the relational contract. The transactional contract is short term and limited to well-defined economic terms of exchange such as offers of financial benefits or incentives for performing specific tasks, which are clearly verifiable by third parties. In contrast, relational contracts are embedded in webs of social concerns – such as interpersonal relationships, reputation and justice – that influence how those contracts are viewed and evaluated. Accordingly, they focus on trust, job security, career path and loyalty. More recently, the framework of the psychological contract has been expanded to incorporate an ideology-infused or
HR professionals need to keep up to date with advances being made in their industry and develop HR strategies to address anticipated changes while being flexible enough to adapt them in response to unknown technological advances. They should realise they are creating a workforce capable of meeting the needs of organisations in an unknowable future.
5 The Australian Human Resources Institute (AHRI) Model of Excellence consists of seven HR capabilities. As a group, discuss how an HR professional might demonstrate their capabilities as (a) workforce and workplace designer, and (b) culture and change leader in a small information technology start-up company. What activities will be required? What outcomes might be expected?
Students should identify a few ways of demonstrating workforce and workplace designer and culture and change leader capabilities that are appropriate for a small information technology start-up company. The following examples have been taken from an exhaustive list of possible competencies on the AHRI website (https://ahri.com.au/media/1161/moe-descriptions-1-may2017.pdf). A workforce and workplace designer:
- designs a productive and engaging workplace that integrates work and life
- constructs and designs jobs that match the needs of the organisation
- attracts, retains, develops, engages, supports and rewards a talented and capable workforce reflective of the organisation’s diverse needs
- builds frameworks that enable the development of workforce capacity and capabilities for the future requirements of the organisation
- develops and enables the workforce to use new and emerging technologies. A culture and change leader:
- understands organisational culture (relative to the business stage)
- designs and delivers innovative HR solutions that create and foster the desired organisational culture
- determines, communicates and implements frameworks of expected employee behaviours
- translates culture and values into workforce and workplace practices
- manages and supports a collaborative, innovative and values-based culture.
Sample response to ethical challenge
China‟s Shenzhen makes holidays compulsory
1 Why do you think that the Chinese labour laws were previously not adhered to in the SEZs?
Students should discuss factors such as the weak enforcement mechanism, limited power of workers to negotiate and bargain, the greed of companies to attract foreign investment via the supply of cheap labour and competitive labour markets. Furthermore, a lack of awareness of the labour laws among the Chinese workers might have made it easier for companies to violate them without severe penalties.
2 For whose benefit have some companies decided to adhere to them now – themselves or their employees?
Students should highlight benefits both for companies and employees. Companies need to boost their global reputation regarding their corporate social responsibilities (CSR), avoid legal disputes in case of increased law enforcement, and confront recruitment challenges. Employees, meanwhile, are afforded a better work–life balance and increased fairness in treatment.
Sample response to case study 1.
Can (and should) AI replace HR departments?
1 Would you be willing to use a chatbot to record a grievance or complaint at work? Why or why not?
Students should outline their views on the advantages and disadvantages of a chatbot used to record grievances or complaints. Advantages include a quicker, more convenient and less intimidating means to express concerns. Disadvantages include limited empathy and lack of human interaction, as well as limited understanding of technology and trust in the effectiveness of chatbots.
2 What are the potential difficulties of the human–computer interface in cases such as this?
Potential limitations associated with the human–computer interface include lack of emotional intelligence, limited information programmed into chatbots, lack of user trust and technical capabilities, technical failure, lack of context leading to misunderstanding or irrelevant responses, and greater reliance on natural language processing (NLP), which limits the ability of chatbots to understand human language accurately.
3 What roles might HR professionals play here?
Students should highlight the key roles HR professionals can play in the use of chatbots in the workplace, including:
mention personal attributes or characteristics that contribute to their skills development (e.g., listening skills, empathy, etc.).
2 Analyse the positive and negative aspects of the knowledge, skills and competencies you have acquired in your university studies. Was the experience more positive than negative? Why or why not?
Students will have a range of answers to this question, but the response should demonstrate self-reflection. They should be able to explain clearly whether or not the experience was positive or negative.
3 How effective do you think Readify‟s transition-to-work program is likely to be? What other initiatives might be useful?
Students must demonstrate that they can identify the key aspects of Readify’s transition-to-work program, including:
- two years of industry-based learning
- three months of mentoring
- shadowing consultants on client sites. Regardless of whether they think it will be effective, students should be able to explain their position clearly and be able to identify other initiatives and HRM strategies that might be useful.
Chapter 2
The context of strategic human
resource management
Contents
Learning objectives .............................................................................................................. 14 Summary .............................................................................................................................. 14 The global economic context ............................................................................................... 15 The Australian economy ...................................................................................................... 16 Sample responses to emerging issues .................................................................................. 17 Tutorial activities and sample responses.............................................................................. 20 Sample response to ethical challenge .................................................................................. 22 Sample response to case study 2.1 ....................................................................................... 23
Learning objectives
After reading this chapter, you will be able to: 1 understand and identify the key challenges in the current global and national economic contexts and the implications for strategic human resource management (SHRM) 2 understand and identify the pressing issues in the current social context and the implications for SHRM 3 understand how economic and social contexts change over time, but can also do so unexpectedly as a result of economic, health or political crises.
Summary
Understanding the global and national contexts of organisations is important for strategic human resource managers if they are to provide accurate input into the business’s strategic direction. As the chapter explains, there have been significant changes in trade relations and geo-politics in recent years, with increasing focus on Australia’s regional relations. The change in Australia’s industry structure has impacted the demand for certain types of labour, with skilled professional, technical and knowledge workers in increasing demand. It is also critical for HR managers to understand the labour markets from which
- How should Australian companies overcome these challenges by adapting to the business environment within regional trading blocs?
- How do these challenges impact on the human resource planning and management of Australian companies?
The Australian economy
Student activity 2.
HR professionals must address industry shifts and structural changes to meet their organisation’s future workforce needs. Using Figure 2.1 as a guide, ask students to consider the influence of new technologies and globalisation on the shifting skill mix required in Australia. They should also explore the impact that occupational skills shortages are going to have on the ability of organisations to attract and retain high- quality qualified staff, and develop an HR strategy based on the anticipated needs of service organisations. More information about the shifting skills mix is available in The Productivity Commission’s report: https://www.pc.gov.au/inquiries/completed/workplace- relations/issues/workplace-relations-issues1.pdf
Student activity 2.
Ask students to discuss the ethical challenges for HR professionals of increasing female labour-force participation rates in Australia. They should mention diversity, inclusion, equity, workforce flexibility, gender pay gap, quotas and representation on boards among other HR policy areas.
Student activity 2. 4
In class, divide the whiteboard/blackboard/flipchart between four generations of employees: veterans, Baby Boomers, Gen X and Gen Y. Next, brainstorm and list the dominant needs and values of each generation, considering the major events that have occurred during their working lives.
- How can each generation be accommodated to ensure that their human capital is effectively accessed and incorporated?
Student activity 2. 5
In an open class discussion, explore the situation currently being faced by many large municipal environments – that of an ageing workforce. This has become of particular concern for occupations that have attracted less interest from younger generations, including bus drivers. One large domestic city fleet is facing a staffing crisis. Its staffing profile reveals that 75 per cent of the staff are male and over the age of 45. Most are employed on a full-time shift work basis, often working split shifts (e.g., four hours during peak hour in the morning and four hours during peak hour in the afternoon). Recruitment of entry-level staff is proving difficult. Many of the existing staff have developed lucrative superannuation accounts over their years of employment and recent early retirement seminars have become very popular among drivers. Meanwhile, the city bus fleet is in high demand; the growth of the city, the cost of inner-city parking and the population’s developing need for public transport are putting pressure on the council to expand the bus fleet.
Brainstorm what the council could do to ensure it has enough trained personnel to staff its growing fleet.
Sample responses to emerging issues
The emerging issues that follow are intended to encourage students to analyse topics discussed in the text and should be supplemented with further reading. The provided responses are intended only as a guide to promote discussion and are not the ‘correct’ response. Used effectively, these emerging issues should extend students’ appreciation of the conceptual and practical aspects of the context of HRM.
Emerging issue 1 – Care and work
Increasingly, women and men are facing challenges combining their work and care responsibilities. They may need to provide care for children, elderly parents or relatives, and family and community members with a disability.
4 How can employers assist workers with care responsibilities?
Student should mention the need to introduce a range of HRM policies, often referred to as ‘family friendly’, ‘diversity’, ‘work–life’ or ‘flexibility.’
5 What can be done to enable men to provide more parental care for their children?
Students should mention parental leave, provision for flexible hours, care for children and job design.
6 What employer policies might assist workers with elder care responsibilities?
Students should mention carers leave, provision for flexible hours, care for the elderly, and support (e.g., counselling services).
Emerging issue 2 – Women and leadership
The feminism of workforces around the global represents ongoing challenges for HR managers.
7 Why do governments around the world advocate increasing female workforce participation?
Students should include in their response an understanding that increasing the participation rates of women in the workforce leads to better living standards for individuals and families, improves the bottom line for business and is a significant driver of national economic growth.
challenges in terms of shaping career beyond traditional retirement age. Some of the workplace changes students mention may include: age discrimination policies and training, managing intergenerational conflict, better understanding of the needs of older workers and an ageing workforce, a renewed emphasis on work redesign, and strategies for retention of older workers.
Emerging issue 4 – Flexibility
Workplace flexibility can take many forms.
13 List three forms of flexibility that you are familiar with and compare their benefits for employers and employees.
Policies such as flextime, space sharing and telecommunicating.
The benefits of flexible work arrangements for employers and managers include:
ability to attract and retain a larger pool of talents
greater employee engagement and productivity
benefits to the bottom line achieved through less staff turnover, higher productivity and less time wasted at work
building a positive company culture and better psychological contracts that value the different needs of employees.
save costs by reducing demand for office space, facilities, resources, and cheaper salary and benefits.
The benefits of flexible work arrangements for employees include:
better work-life balance
reduced costs; e.g. childcare costs, reduced fuel and motor maintenance costs, etc.
making work possible for people with disabillities
can travel into work at times that avoid rush hour traffic
14 What are the pros and cons of working from home for female and male employees?
Advantages Increases workforce participation for women Provides more opportunities for care work for men
Disadvantages May entrench gender inequality
15 What are the challenges for managers of flexible working arrangements?
The challenges of flexible work arrangements include:
- arranging meetings with employees working flexible hours
- managing performance fairly across full-time and part-time employees
- equitable development and promotion opportunities for flexible employees
- building a strong company culture when employees do work face to face.
Tutorial activities and sample
responses
16 Allocate teams to examine the advantages and disadvantages of the following HR strategies.
— Increasing the proportion of casual employees relative to permanent employees
Advantages:
- Employers have more flexibility in that they can downsize and lay off employees as they wish.
- Employers do not have to pay benefits such as holiday pay and sick leave.
- Tools such as contracts can improve organisational productivity. Disadvantages:
- Employers have to pay a premium on flexible workers and therefore labour costs can be high.
- Employers will not have a stable workforce.
- Turnover can be high due to lack of benefits and the nature of the positions. — Providing flexible work arrangements exclusively for women, with the intent of attracting and retaining female employees
Advantages:
- Women will feel more empowered to enter the workforce while balancing their family commitments.
- Increased female participation in the workforce can lead to the discovery of new talent and help to meet labour demands created by an ageing population. Disadvantages:
- Such an arrangement may undermine equal employment opportunity policies.
