Ch10. HRM Fundamentals — Complete Review & Final Summary

The Complete HRM Framework

Workforce Planning:
Demand & supply forecasting → address surpluses and shortfalls

Staffing:
Recruitment (internal/external) → Selection (validity & reliability)

Development:
OJT & Off-JT → Kirkpatrick 4-level evaluation

Utilization:
Job analysis & design → placement → career development

Maintenance:
Compensation, benefits, motivation, leadership

Separation:
Retirement management, outplacement services

Motivation Theory Comparison Table

┌──────────────┬───────────────────┬──────────────────────────────┐
│ Theory       │ Type              │ Core Idea                    │
├──────────────┼───────────────────┼──────────────────────────────┤
│ Maslow       │ Content (needs)   │ 5-level hierarchy            │
│ Herzberg     │ Content (2-factor)│ Hygiene ≠ Motivator          │
│ Vroom        │ Process (expect.) │ E × I × V                    │
│ Adams        │ Process (equity)  │ Input/output ratio comparison│
│ Skinner      │ Reinforcement     │ Variable-ratio = strongest   │
└──────────────┴───────────────────┴──────────────────────────────┘

Key Numbers & Principles

Kirkpatrick = Reaction → Learning → Behavior → Results (4 levels)
Most accurate job evaluation method = Point-factor method
360-degree feedback = best suited for developmental purposes
Validity is a sufficient condition for reliability
Variable-ratio reinforcement = strongest, most extinction-resistant
Lewin change model = Unfreeze → Change → Refreeze
NLRA: FMCS must be notified 60 days before CBA expiration (US standard)

Top 10 Frequently Missed Exam Points

① HRM = 5 functions: Planning, Staffing, Development, Maintenance, Separation
② Job enrichment = vertical; job enlargement = horizontal
③ Herzberg: pay = hygiene factor (NOT a motivator)
④ Maslow hierarchy: Physiological → Safety → Social → Esteem → Self-Actualization
⑤ Validity is meaningful only when reliability also exists
⑥ Halo effect = one characteristic influences the overall rating
⑦ Vroom = E × I × V (any factor at zero = zero motivation)
⑧ Variable-ratio reinforcement schedule = strongest
⑨ 360-degree feedback = developmental use (linking to pay causes distortion)
⑩ Structured interviews = higher reliability and validity than unstructured

Key Concept Cards

HRM 5 Functions = Plan, Staff, Develop, Maintain, Separate ★★★★★ : Staffing/recruiting is only one function among five. Memory cue: Plan-Staff-Develop-Maintain-Separate

Motivation Theories = Content / Process / Reinforcement ★★★★★ : Content (Maslow, Herzberg) · Process (Vroom, Adams) · Reinforcement (Skinner). Memory cue: CPR for motivation

Kirkpatrick = Reaction → Learning → Behavior → Results ★★★★★ : Four levels measured in sequence. Memory cue: R-L-B-R

Practice Quiz (Comprehensive)

Q. When internal pay equity and external market competitiveness conflict, how should an organization respond?

Internal equity: fairness of pay across jobs within the same organization. External equity: alignment of pay with the external labor market. The conflict: when demand surges for certain skills (e.g., software engineers), market rates spike and internal equity breaks down. Response options: (1) pay a market premium for those roles (prioritize external equity) while managing internal dissatisfaction through transparent communication; (2) create separate pay structures by job family (e.g., a “tech track” with different ranges). Full resolution is rarely possible — transparent communication and a consistent pay philosophy are essential.

Q. What roles must HR take on to be recognized as a strategic business partner?

Understand the business: participate in business unit strategy meetings. Use data: quantify turnover rates, time-to-fill, training ROI. Solve business problems, not just HR problems. Provide leading indicators that predict performance. Lead change management initiatives. Ulrich’s HR model: Strategic Partner + Change Agent roles are the hallmarks of strategic HR. HR must demonstrate measurable impact on business outcomes to earn a seat at the table.