1 Explain why strategic human resource management can help an organization gain a competitive advantage.

1. Strategic Human Resource Management
   Human resource management (HRM) includes activities needed to attract and retain employees so that the organization achieves its goals. Strategic HRM is the process of designing an HRM system.
   1. Overview of the components of HRM
      1. The training and development of current workers is a constant process.
      2. Performance appraisal and feedback are needed to make good human resource decisions.
      3. Labor relations describes the process of developing good working relationships with labor unions.
   2. The legal environment of HRM
   3. The goal of equal employment opportunity (EEO) is to ensure that all applicants have an equal opportunity to be hired.

2 Describe the steps managers take to recruit and select organizational members.

2. Recruitment and Selection
   Recruitment deals with developing a group of candidates for a job opening, while selection deals with deciding which applicant to hire.
   1. Human resource planning
      1. Demand forecasts – estimate the number and qualifications of employees that the organization will need in the future.
      2. Supply forecasts – estimate the number of current employees that are qualified for different positions.
      3. Outsourcing – people who do not work for the organization on a daily basis are hired to work on specific projects as needed.
   2. Job analysis
      1. Job description – identifying the tasks, responsibilities, and duties of a job
      2. Job specifications – the knowledge, skills, and abilities needed to perform a specific job.
   3. External and internal recruitment
      1. External recruiting – trying to find job applicants from people who do not work for the organization.
      2. Internal recruiting – trying to find existing employees who can fill a job opening.
      3. Honesty in recruiting – giving job applicants an honest picture of what the organization and the job will be like as a workplace.
   4. The selection process
      1. Background information – checking the education and work experience of job applicants.
      2. Interviews – meeting with applicants to determine their acceptability for a specific job.
      3. Paper-and-pencil tests – tests of ability or personality
      4. Physical ability tests – measures of strength or stamina or mechanical dexterity.
      5. Performance tests – measure performance on actual job tasks.
      6. References – recommendations used to confirm a hiring decision.
      7. The importance of reliability and validity
         1. Reliability – does the test produce the same results each time it is administered to a specific job applicant?
         2. Validity – does the test measure what it claims to measure?

3 Discuss the training and development options that ensure organizational members can effectively perform their jobs.

3. Training and Development
   Training involves helping employees to learn how to do their current job better, while development focuses on improving the knowledge and skills of employees so that they can take on new responsibilities.
   1. Types of training
      1. Classroom instruction – knowledge pursued in a classroom setting.
      2. On-the-job training – learning occurs at work in performing a job
   2. Types of development
      1. Varied work experience – giving employees experience in a variety of different jobs.
      2. Formal education – college courses taken while working
      3. Transfer of training and development – knowledge must be transferred to the actual work situation in order to be useful on the job.

4 Explain why performance appraisal and feedback is such a crucial activity, and list the choices managers must make in designing effective performance appraisal and feedback procedures

4. Performance Appraisal and Feedback
   Performance appraisal – evaluating an employee's job performance.
   Performance feedback – managers share performance information with subordinates and discuss ways in which to improve it.
   1. Types of performance appraisal
      1. Trait appraisal – assessing skills, abilities, and personality.
      2. Behavior appraisals – assess how workers perform their jobs
      3. Result appraisals – focusing on what a worker accomplishes
      4. Objective and subjective appraisals
         1. Objective – based on facts.
         2. Subjective – based on a manager's perception of ability and results achieved.
   2. Who appraises performance? – this is typically the job of the employee's supervisor.
      1. Self, peers, subordinates, and clients – all of these can provide appraisal of the quality of the work of an employee.
      2. 360-degree performance appraisal – fellow employees at several levels as well as customers appraise a manager's performance.
   3. Effective performance feedback
      1. Formal appraisals -- occur at regular intervals (e.g. quarterly).
      2. Informal appraisals – managers and subordinates meet as needed
         1. Focus on specific behaviors that can be corrected.
         2. Avoid criticizing and focus on problem-solving.
         3. Express confidence in the subordinate's ability to improve.
         4. Provide regular performance feedback.
         5. Praise good performance when it occurs
         6. Avoid personal criticisms.
         7. Set a time frame for improving performance.

5 Explain the issues managers face in determining levels of pay and benefits

5. Pay and Benefits
   Pay includes base salaries, raises, and bonuses, while benefits include sick days, vacation days, and insurance benefits.
   1. Pay level – how the organization's pay compares to similar organizations.
   2. Pay structure – creates categories of similar jobs to set pay ranges for these types of jobs.
   3. Benefits
      1. Organizations are legally required to provide workers' compensation, Social Security, and unemployment insurance benefits.
      2. Other benefits can include health insurance, dental insurance, vacation time, pension plans, life insurance, flexible working hours, day-care assistance, and wellness programs.
      3. Cafeteria-style benefit plans – workers are allowed to choose the set of benefits that they most want from a list of possible benefits.
6. Labor Relations
   1. Unions – represent worker's interests in the organization.
   2. Collective bargaining – negotiations between management and labor unions to resolve conflict and working issues.
      1. Mediator – a third party that helps management and labor unions to agree.
      2. Grievance procedure – the union represents workers who feel that they have been treated unfairly.