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Organizational Behavior – [Instructor Solutions Manual (ISM), Chapter 17, Questions & Answers] (Updated 2025–2026)

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Organizational Behavior – [Instructor Solutions Manual (ISM), Chapter 17, Questions & Answers] (Updated 2025–2026)

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This OpenStax ancillary resource is © Rice University under a CC BY 4.0 International license; it may be reproduced or modified but
must be attributed to OpenStax, Rice University and any changes must be noted.



CHAPTER SEVENTEEN

Human Resource Management


CHAPTER SUMMARY

This chapter begins with a recap of how human resource management has changed over
the years. From its earliest inception as a primarily compliance-type function, it has
further expanded and evolved into its current state as a key driver of human capital
development.

An important aspect of HR management involves keeping current with laws that govern
the employer-employee relationship. Some of the more common laws include the
following: Age Discrimination in Employment Act (ADEA), Americans with Disabilities Act
(ADA), Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), National
Labor Relations Act (NLRA), and the Worker Adjustment and Retraining Notification Act
(WARN). of the rules and regulations in an employee handbook can be one of the most
important resources that HR can provide to the organization to mitigate compliance risk.

Companies use performance management help the company differentiate between
different levels of employee performance through the management of feedback and a
rewards structure. While these practices and processes are among the most important
that human resources manages, they are also among the most contentious processes in
an organization.

While most people think of compensation rewards, which are very important drivers
and motivators for most people, other aspects of the total rewards strategy are
important to consider. A total rewards strategy includes the following six elements:
compensation, benefits, work-life effectiveness, recognition. performance management,
and talent development.

Talent acquisition is the area within human resource management that defines the
strategy for selection, recruiting, and hiring processes, and helps the organization find
talent in good times and bad. In addition, two critical human resource management
processes include talent development and succession planning.

LEARNING OUTCOMES

, Organizational Behavior


 11.1 An Introduction to Human Resource Management
1. What has been the evolution of human resource management over the years,
and what is the current value it provides to an organization?

Human resource management began in its first “wave” as a primarily
compliance-type function, with the HR staff charged with enforcing compliance
of employees and running the ongoing administrative processes. In the second
wave, HR became focused on the design of HR practice areas, which could be
built upon best-practice models. Wave 3 of HR brought with it the concept that
HR should be a true partner to the business and should support the business
strategy through its programs and services. Finally, in the fourth wave, HR is still
a partner to the business, but it looks outside of the business to customers,
investors, and communities to see how it can be competitive in terms of
customer share, investor confidence, and community reputation.
Some key areas that HR supports within the employee life cycle process include
human resources compliance, employee selection and hiring, performance
management, compensation rewards, and talent development and succession
planning.

 11.2 Human Resource Management and Compliance
2. How does the human resources compliance role of HR provide value to a
company?

Human resources helps protect the company and its employees to ensure that
they are adhering to the numerous regulations and laws that govern the
employment relationship. The impact of noncompliance can be very costly and
can be in the form of financial, legal, or reputational cost. Some of the key
legislation that HR manages compliance around includes the Fair Labor
Standards Act (FLSA), the Age Discrimination in Employment Act (ADEA), the
Americans with Disabilities Act (ADA), and the Family and Medical Leave Act
(FMLA), among others.
Some of the best practices for informing and holding employees accountable are
to provide education and training to explain the regulations, to provide
reference documentation for guidance with the regulations, and to schedule
regular compliance audits to ensure that processes are being followed.
Scheduling regular internal HR audits help the organization plan and feel
comfortable with its level of preparedness and illustrates the value that a strong
HR group can bring to the organization.

 11.3 Performance Management
3. How do performance management practices impact company performance?



May 12, 2019 2

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