Study Guide
C202 Managing Human Capital
Instructions: Read each chapter for the purpose of
understanding key concepts below. Apply your
knowledge by answering the accompanying questions.
CHAPTER 1
Question Answer
1. What is human resource The organizational function is responsible for attracting, hiring,
management (HRM)? developing, rewarding, and retaining talent. Responsible for
people-related issues and employment-related legal
compliance.
2. List the 6 HRM functional areas, and 1. Staffing- the process of planning, acquiring, deploying,
what each area is about in only 1 and retaining employees that enable the organization
sentence. to meet its talent needs and execute its business
strategy.
2. Training and Development-focus on developing
employee capabilities through both formal and informal
activities, also responsible for career planning, org.
development, and often legal compliance.
3. Performance Management - involves aligning
individual employees’ goals & behaviors with
organizational goals & strategies, appraising &
evaluating past & current behaviors & performance, &
providing suggestions for improvement.
4. Rewards & Benefits-Compensation and benefits
perceived as both adequate and equitable that reward
employees for their contributions to organizational goal
attainment are important to employee motivation,
performance, and retention.
5. Health & Safety-Workplace health and safety include
topics ranging from wellness, fire and food safety,
ergonomics, injury management, disaster
preparedness, industrial hygiene, and even bullying
and workplace violence.
6. Employee-Management Relations-ultimately
determines the employment rights of both employers
and employees.
3. In addition to managing risk, what Managing human resources strategically helps organizations
are several other ways effective HRM manage four primary types of risk:
systems influence the performance 1. Strategic risk involves all aspects of company culture,
of an entire organization? ethics, investments in people, and the implementation
of change.
2. Operational risk encompasses everything to do with
talent acquisition and development.
3. Financial risk is associated with all workforce and
productivity costs.
4. Compliance risk involves the decisions related to
legal matters made by the organization.
,4. Explain HRM’s role in executing an For a company to execute its business strategy, not only must
organization’s business strategy. its HRM policies and practices fit with its strategy, but its
business strategy must also align with the competitive
environment and the immediate business conditions.
Concept Referenc Notes
e
Human resource 1.1 – 1.3
management
HRM functions (6) 1.4 – 1.10
HRM & organizational 1.11 HRM supports the organization by creating the system that:
performance - Acquires, motivates, manages, develops & retains talent
- Improves efficiency & contributes to revenue growth
- Complies with legal requirements & limits risk
HRM influences organizational performance through its
influence of 3 key areas:
1. Influencing what employees should do.
2. Influencing what employees can do.
3. Influencing what employees will do.
Effective HRM systems 1.11 Effective HRM systems increase the organization’s ability to
meet its goals, enhance the organization’s ability to grow and
manage change, and increase employee engagement, effort,
and performance.
What Effective HRM Systems Do:
Improve organizational efficiency.
Contribute to revenue growth.
Increase employees’ understanding of their
responsibilities and how they relate to the
organization’s mission, business strategy, and goals.
Develop and enhance employee capabilities and
talents to enable strategic execution and goal
attainment.
Equitably link rewards to responsibility level and
performance.
Promote the efficient and effective utilization of
employees’ skills and knowledge.
Increase employee engagement, effort, and
performance.
Increase the organization’s ability to manage change.
Decrease an organization’s legal liability for compliance
with employment laws.
HRM & business strategy 1.12 – 1.14 Business strategy defines how the firm will compete in its
marketplace. A business strategy should reflect what the
organization’s customers want, what the firm wants, and what
the firm can cost-effectively deliver.
HRM responsibility 1.15 – 1.16 HRM activities are performed by HRM professionals, managers,
individual employees, shared service centers, outside vendors,
and professional employer organizations.
Human Resource Strategy – links the entire human
resource function with the firm’s business strategy.
,Talent philosophy 1.12 & Talent philosophy- a system of beliefs about how its
1.15 employees should be treated, including:
the value placed on diversity;
ethics;
whether the firm would like employees to stay for a
limited time or for their entire careers; and
whether employees are viewed as assets to be
managed or as investors choosing where to allocate
their time and effort.
Employee handbook 1.15 Print or online materials that document the organization’s HRM
policies and procedures.
HRM systems 1.17 – 1.18 Human resource management systems (HRMS) are
technology-based platforms that help human resource
management professionals securely house sensitive employee
records, including benefits and payroll information; monitor
the performance of the recruiting and staffing process;
conduct analytics, and more. They can be cloud-based, such
as Workday or Cornerstone OnDemand, or they can be
maintained by the company.
CHAPTER 2
Question Answer
1.What are 3 specific ways HR can HRM practices promoting power-sharing, information-sharing,
support the organization should it and training tend to best support HPWS.
choose to shift its culture?
HRM supports organizational change by creating a culture of
trust, managing employee resistance to change, and aligning
employees’ goals and behaviors with the new goals and needs
of the organization.
2.Explain 2 situations/reasons that
managers across various
departments might seek out HR’s
guidance.
3.How can HR support and reinforce Hire employees likely to behave ethically.
ethical behavior in the workplace? Train employees on how to recognize and handle
different ethical situations.
Implement a company code of conduct and make all
employees accountable for following it.
Promptly remove employees involved in unethical
behavior or decision-making.
Develop a support system that helps employees make
the right decisions and anonymously report others’
unethical behavior.
, 4.Provide an example of what these 5 different types of ethical standards that help us evaluate the
ethical standards might look like at ethics of an action:
your workplace: 1. Utilitarian standard-The ethical action best balances
a. Virtue – A company that good over harm.
values honesty quickly 2. Rights standard-The ethical action is the one that
recalling products that best respects and protects the moral rights of everyone
affected by the action.
might be defective or
3. Fairness standard - The ethical action treats all
dangerous.
people equally, or at least fairly, based on some
b. Fairness – The debate defensible standard.
over the appropriateness 4. Common good standard - The ethical action shows
of CEO salaries and respect and compassion for all others, especially the
bonuses that are most vulnerable.
hundreds of times larger 5. Virtue standard - The ethical action is consistent with
than the pay of the certain ideal virtues including civility, compassion,
average employee. benevolence, etc.
c. Utilitarian – Southwest
Airlines cuts all
employees’ pay rather
than laying anyone off.
d. Common good –
Ensuring that suppliers
do not employ child labor
or provide unsafe
working conditions.
e. Rights – If a supervisor
tells an employee to
handle a toxic substance
without appropriate
protective gear, the
employee has a right to
refuse.
5.What are a few of the most common 1. New production processes
change initiatives that HR manages? 2. Opening a new location
3. Rolling out a new benefits program
4. Implementing a new human resource information
system (HRIS) or upgrading the current HRIS system
5. Expanding international operations
6.In addition to a lack of planning, Culture mismatch is often blamed as a cause of the failure of
what other factors can hinder the mergers and acquisitions.
success of a merger or acquisition?
Through their behaviors and decisions to stay or leave the
merged company, employees affect the success or failure of
a merger or acquisition.
7.Explain the connection between
performance metrics, employee
behavior, and the organization’s
goals.
Concept Referenc Notes
e
HRM role in business 2.1 – 2.2
Organizational culture 2.3 & 2.14 Organizational culture - The norms, values, and
assumptions of organizational members that guide members’
attitudes and behaviors.
C202 Managing Human Capital
Instructions: Read each chapter for the purpose of
understanding key concepts below. Apply your
knowledge by answering the accompanying questions.
CHAPTER 1
Question Answer
1. What is human resource The organizational function is responsible for attracting, hiring,
management (HRM)? developing, rewarding, and retaining talent. Responsible for
people-related issues and employment-related legal
compliance.
2. List the 6 HRM functional areas, and 1. Staffing- the process of planning, acquiring, deploying,
what each area is about in only 1 and retaining employees that enable the organization
sentence. to meet its talent needs and execute its business
strategy.
2. Training and Development-focus on developing
employee capabilities through both formal and informal
activities, also responsible for career planning, org.
development, and often legal compliance.
3. Performance Management - involves aligning
individual employees’ goals & behaviors with
organizational goals & strategies, appraising &
evaluating past & current behaviors & performance, &
providing suggestions for improvement.
4. Rewards & Benefits-Compensation and benefits
perceived as both adequate and equitable that reward
employees for their contributions to organizational goal
attainment are important to employee motivation,
performance, and retention.
5. Health & Safety-Workplace health and safety include
topics ranging from wellness, fire and food safety,
ergonomics, injury management, disaster
preparedness, industrial hygiene, and even bullying
and workplace violence.
6. Employee-Management Relations-ultimately
determines the employment rights of both employers
and employees.
3. In addition to managing risk, what Managing human resources strategically helps organizations
are several other ways effective HRM manage four primary types of risk:
systems influence the performance 1. Strategic risk involves all aspects of company culture,
of an entire organization? ethics, investments in people, and the implementation
of change.
2. Operational risk encompasses everything to do with
talent acquisition and development.
3. Financial risk is associated with all workforce and
productivity costs.
4. Compliance risk involves the decisions related to
legal matters made by the organization.
,4. Explain HRM’s role in executing an For a company to execute its business strategy, not only must
organization’s business strategy. its HRM policies and practices fit with its strategy, but its
business strategy must also align with the competitive
environment and the immediate business conditions.
Concept Referenc Notes
e
Human resource 1.1 – 1.3
management
HRM functions (6) 1.4 – 1.10
HRM & organizational 1.11 HRM supports the organization by creating the system that:
performance - Acquires, motivates, manages, develops & retains talent
- Improves efficiency & contributes to revenue growth
- Complies with legal requirements & limits risk
HRM influences organizational performance through its
influence of 3 key areas:
1. Influencing what employees should do.
2. Influencing what employees can do.
3. Influencing what employees will do.
Effective HRM systems 1.11 Effective HRM systems increase the organization’s ability to
meet its goals, enhance the organization’s ability to grow and
manage change, and increase employee engagement, effort,
and performance.
What Effective HRM Systems Do:
Improve organizational efficiency.
Contribute to revenue growth.
Increase employees’ understanding of their
responsibilities and how they relate to the
organization’s mission, business strategy, and goals.
Develop and enhance employee capabilities and
talents to enable strategic execution and goal
attainment.
Equitably link rewards to responsibility level and
performance.
Promote the efficient and effective utilization of
employees’ skills and knowledge.
Increase employee engagement, effort, and
performance.
Increase the organization’s ability to manage change.
Decrease an organization’s legal liability for compliance
with employment laws.
HRM & business strategy 1.12 – 1.14 Business strategy defines how the firm will compete in its
marketplace. A business strategy should reflect what the
organization’s customers want, what the firm wants, and what
the firm can cost-effectively deliver.
HRM responsibility 1.15 – 1.16 HRM activities are performed by HRM professionals, managers,
individual employees, shared service centers, outside vendors,
and professional employer organizations.
Human Resource Strategy – links the entire human
resource function with the firm’s business strategy.
,Talent philosophy 1.12 & Talent philosophy- a system of beliefs about how its
1.15 employees should be treated, including:
the value placed on diversity;
ethics;
whether the firm would like employees to stay for a
limited time or for their entire careers; and
whether employees are viewed as assets to be
managed or as investors choosing where to allocate
their time and effort.
Employee handbook 1.15 Print or online materials that document the organization’s HRM
policies and procedures.
HRM systems 1.17 – 1.18 Human resource management systems (HRMS) are
technology-based platforms that help human resource
management professionals securely house sensitive employee
records, including benefits and payroll information; monitor
the performance of the recruiting and staffing process;
conduct analytics, and more. They can be cloud-based, such
as Workday or Cornerstone OnDemand, or they can be
maintained by the company.
CHAPTER 2
Question Answer
1.What are 3 specific ways HR can HRM practices promoting power-sharing, information-sharing,
support the organization should it and training tend to best support HPWS.
choose to shift its culture?
HRM supports organizational change by creating a culture of
trust, managing employee resistance to change, and aligning
employees’ goals and behaviors with the new goals and needs
of the organization.
2.Explain 2 situations/reasons that
managers across various
departments might seek out HR’s
guidance.
3.How can HR support and reinforce Hire employees likely to behave ethically.
ethical behavior in the workplace? Train employees on how to recognize and handle
different ethical situations.
Implement a company code of conduct and make all
employees accountable for following it.
Promptly remove employees involved in unethical
behavior or decision-making.
Develop a support system that helps employees make
the right decisions and anonymously report others’
unethical behavior.
, 4.Provide an example of what these 5 different types of ethical standards that help us evaluate the
ethical standards might look like at ethics of an action:
your workplace: 1. Utilitarian standard-The ethical action best balances
a. Virtue – A company that good over harm.
values honesty quickly 2. Rights standard-The ethical action is the one that
recalling products that best respects and protects the moral rights of everyone
affected by the action.
might be defective or
3. Fairness standard - The ethical action treats all
dangerous.
people equally, or at least fairly, based on some
b. Fairness – The debate defensible standard.
over the appropriateness 4. Common good standard - The ethical action shows
of CEO salaries and respect and compassion for all others, especially the
bonuses that are most vulnerable.
hundreds of times larger 5. Virtue standard - The ethical action is consistent with
than the pay of the certain ideal virtues including civility, compassion,
average employee. benevolence, etc.
c. Utilitarian – Southwest
Airlines cuts all
employees’ pay rather
than laying anyone off.
d. Common good –
Ensuring that suppliers
do not employ child labor
or provide unsafe
working conditions.
e. Rights – If a supervisor
tells an employee to
handle a toxic substance
without appropriate
protective gear, the
employee has a right to
refuse.
5.What are a few of the most common 1. New production processes
change initiatives that HR manages? 2. Opening a new location
3. Rolling out a new benefits program
4. Implementing a new human resource information
system (HRIS) or upgrading the current HRIS system
5. Expanding international operations
6.In addition to a lack of planning, Culture mismatch is often blamed as a cause of the failure of
what other factors can hinder the mergers and acquisitions.
success of a merger or acquisition?
Through their behaviors and decisions to stay or leave the
merged company, employees affect the success or failure of
a merger or acquisition.
7.Explain the connection between
performance metrics, employee
behavior, and the organization’s
goals.
Concept Referenc Notes
e
HRM role in business 2.1 – 2.2
Organizational culture 2.3 & 2.14 Organizational culture - The norms, values, and
assumptions of organizational members that guide members’
attitudes and behaviors.
