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One of the most important resources in all organizations is its human resources – the people involved in the production and distribution of its goods and services. Human resources include all members of an organization, ranging from top managers to entry-level employees. This chapter examines how managers can tailor their human resources management system to their organization’s strategy and structure. The major components of the human resources management are discussed: recruitment and selection, training and development, performance appraisal, pay and benefits, and labor relations. The central role that human resources management plays in creating a high performing organization is emphasized. learning objectives

1. Explain why strategic human resources management can help an organization gain a competitive advantage. (LO1)
2. Describe the steps managers take to recruit and select organizational members.(LO2)
3. Discuss the training and development options that ensure that organizational members can effectively perform their jobs.(LO3)
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.(LO4)
5. Explain the issues managers face in determining levels of pay and benefits. (LO5)


Semco was founded in 1954 in San Paolo, Brazil. Today, its revenues are over $200 million annually and its growth rate exceeds 30% per year. This privately held, highly profitable company is involved a diverse set of businesses, including industrial machinery, facility management, and consulting.

Semco has become a case study in the business community because of its novel approach toward human resources management. The company has no rules, regulations, or organizational charts, and workplace democracy rules the day. Flexibility and trust are

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