The Challenge of Human Resources Management

Topics: Unemployment, Employment, Supply and demand Pages: 49 (13204 words) Published: May 31, 2014
Chapter 1 – The Challenge of Human Resources Management

1. What is the difference between human capital and human resources management? Human capital: people’s actual knowledge, skills, and capabilities that have economic value to the company Human resources: managing human capital to achieve objectives 2. Explain how globalization is influencing human resource management. Partnerships with foreign firms & lower trade and tariff barriers -requires knowledge of business practices of the particular countries they are working with: compensation, employee training, finding expatriates, overseas benefit packages, cultures, laws 3. Describe the challenges in managing human capital.

-Managing change, globalization, technology, (acquiring, developing, and managing human capital), responding to the market, containing costs. 1. Responding Strategically to Changes in the Marketplace—strategy, downsizing, outsourcing, offshoring 2. Competing, Recruiting, and Staffing Globally—globalization 3. Setting and Achieving Corporate Social Responsibility

and Sustainability Goals
4. Advancing HRM with Technology—human resources information system 5. Containing Costs While Retaining Top Talent and Maximizing Productivity 6. Responding to the Demographic and Diversity
Challenges of the Workforce
7. Adapting to Educational and Cultural Shifts Affecting
the Workforce
4. Discuss the primary social issues in managing people.
-education level, diversity, ethnicity, age, gender
-deal with employee rights, privacy, policy change, attitude towards work, and balancing family life

Chapter 2 – The Markets for Labor, Capital, and Land (Supply & Demand) 1. Demonstrate basic knowledge of the workings of a labor market by: a. Graphing supply and demand
demand curve: downward sloping, lower wage = increase quantity of labor demanded supply curve: upward sloping, higher wages = quantity of labor increases b. Identifying and interpreting the meaning of equilibrium

equilibrium: point of intersection between the supply and demand curves -only at the equilibrium wage are both suppliers and demanders able to exchange the quantity of labor they desire c. Identifying the difference between a shift in the curve and a movement along the curve as well as what factors cause a shift. Shift: 1. Increase in labor productivity (technology advances) 2. Changes in output price of a good (due to increased demand) Increases in Labor Productivity

Workers can increase productivity if:
They have more capital or land with which to work.
Technological improvements occur.
They acquire additional skills or experience.
This increase in productivity will increase the marginal product of labor and shift the demand curve for labor to the right. However, if labor productivity falls, then marginal product will fall, and the demand curve for labor will shift to the left. Increased Demand for Firm’s Product

The greater the demand for the firm's product, the greater the firm’s demand for labor or any other variable input. Higher demand for the firm's product increases the firm's marginal revenue, which increases marginal revenue product. If demand for the firm's product falls, the labor demand curve will shift to the left, as marginal revenue product falls. Movement:

2. Identify factors that would cause the labor supply and labor demand curves to shift and how those factors affect the equilibrium level of wages and employment. Several factors can cause the labor supply curve to shift:

Immigration and population growth
The number of hours workers are willing to work at a given wage (worker tastes or preferences) Non-wage income
Amenities (fringe benefits)
Available Labor
If new workers enter the labor force, it will shift the labor supply curve to the right. If there are fewer workers in the labor force, it will cause the labor supply curve to shift to the left Worker Preferences

If people become willing to work more hours at a given wage (due to...
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