1-1. Go back to the Manager’s Notebook, “A Cold Way to Get a Job.” What do you see as the main advantages and disadvantages of Internet-based recruiting? Explain.

1-2. Roughly two generations ago, many HR articles decried problems with performance appraisal. A common complaint was that managers did not devote sufficient time to conducting the appraisals and that biases were rampant. Another common complaint was that most managers gave high ratings to all employees and did not bother to properly differentiate and carefully document the performance evaluation of subordinates. Several old surveys reported that three-quarters or more of employees “hated performance appraisals and found them to be useless, increasing tension at work.”187 Today, performance appraisals are standard practice in American businesses and presumably these are used to make key HR decisions, such as distributing merit pay and incentives, screening people for promotions, providing feedback, choosing candidates for layoffs, ensuring equal pay for equal work, and so on (Chapter 7 of this book is devoted to these issues). Many organizations have spent a lot of money in designing and redesigning appraisal systems, and a specialized cadre of HR consultants, industrial psychologists, and other academics have focused most of their efforts and/or research on improving appraisal systems (such as reducing interpersonal biases in the evaluations). Surprisingly, a recent large-scale survey of 750 HR professionals conducted by New York–based consulting firm Sibson Consulting Inc. and WorldatWork, a professional association, found that, if anything, dissatisfaction with performance appraisal systems had gotten worst over the years. Only 3 percent of human resource executives graded their own performance appraisal system as “A,” and the majority rated it as “C” or below. In what seems like déjà vu, this new generation of HR executives say they are frustrated that managers don’t have the courage to make truthful appraisal decisions and to give constructive feedback to employees.188 How would you explain this? Do you see this situation as a lack of progress or as an indication that some faulty assumptions continue to be made by the HR professionals who design these programs? Based on what you have learned in this chapter, what implications does this have for HR practices that presumably rely on an accurate assessment of employee performance (such as promotions and merit pay decisions)?189

1-3. Go back to Managers’ Notebook “How Harley-Davidson Is Taking Advantage of a Diverse Customer Base.” If you were an HR manager of a company such as Harley-Davidson, what human resource programs would you put in place to help the company expand its customer base? Explain.

1-4. Of all the issues affecting HR practices discussed in this chapter, which three, in your opinion, are the most important ones? Justify your answer.

1-5. In your opinion, which of the environmental, organizational, and individual challenges identified in this chapter will be most important for human resource management in the twenty-first century? Which will be least important? Use your own experiences in your answer.

1-6. Go back to the Managers’ Notebook, “Watching Over Your Shoulders: Paying a Price for Unhealthy Life Styles.” Do you think it is fair for a company to discipline employees by charging higher fees for those who show evidence of “unhealthy life styles”? According to Dr. Kevin Volpp, Director of the Center for Health Incentives and Behavioral Economics at the University of Pennsylvania, punitive surcharges and tough health targets may hurt those who need assistance the most. Do you agree? Explain.

1-7. 3M’s competitive business strategy is based on innovation. 3M requires that at least 25 percent of its annual sales come from products introduced over the previous five years, a goal it often exceeds. Specific HR programs adopted to implement this strategy include the creation of a special fund that allows employees to start new projects or follow up on ideas. 3M’s “release time” program, in which workers are given time off during the day to pursue their own interests, is given credit for the creation of new products that management would not have thought of by itself. In addition, 3M’s appraisal process encourages risk taking. A senior manager at 3M says, “If you are threatened with dismissal after working on a project that fails, you will never try again.” What other types of HR policies might 3M institute to spur product innovation?

1-8. Many believe that top managers care little about human resources compared to such areas as marketing, finance, production, and engineering. What might account for this perception, and what would you do to change it?