Review Questions

This website should be useful to anyone interested in HRM but it is also an electronic companion to the book: Human Resource Management in a Business Context. Page 171 (page 87 in the first edition) of the book includes 7 review questions focusing on the issues discussed in this section. The questions are not shown here (you need the book) The following hints and signposts are provided to help readers without regular tutor contact answer the questions for themselves.

General notes One of the best ways of starting any answer is to define the key terms in the question. This is helpful to you and to anyone who reads your answer. It is worth remembering also that - legislative aspects excepted - HRM is very much a matter of opinion. It is often useful to deal with questions by forming an argument which presents two or more contrasting viewpoints. You could do this by investigating the views of different theorists, comparing alternative models, or contrasting practice in one organization (or country) with another.

Try to avoid a one-sided answer, even if it draws on your own experience and you are totally convinced that you are right. Finish off your answer by summarising the keypoints of each point of view and give your balanced opinion. This should be based clearly on the weight of evidence. Be sure to ground your answer in research evidence or views expressed in the literature (books, journals, etc.).

Dealing with individual questions on page 171 (page 87 in the first edition)   1   2   3   4   5   6   7  

1. This is discussed in pages 147-153 (pages 66-72 in the first edition) under 'why do people work?' You might have noticed that the terms 'job market', 'labour market' and 'employment market' seem to be used interchangeably. But this book (and hrmguide) rarely uses 'labour market', whereas economists and sociologists tend to prefer that term over the other two. This is partly a matter of preference and tradition - economics and sociology evolved much of their jargon in a pre-technological age. But it also reflects some of the underlying thinking: which are the commodities in this market - people or jobs? Earlier theorists seem to conclude that people (or, at least, their efforts, ie labour) are the commodities in the tradition of the slave or cattle market.

There are some flaws in this approach. Firstly, not many of us 'labour' in a physical sense any more (in industrialised countries at least). Secondly, it implies that people have no say in the jobs they take on - and, again, in industrialised countries, few of us take just 'any job' on the basis of the pay involved. (There is also the confusion with 'Labour' or 'Labor' as a political party label). So, you could argue that jobs are the commodity in a market exchange, but in a more complex relationship than the old-fashioned 'effort for money' theories can ever explain. However, you might conclude that it may be more appropriate to use the neutral term 'employment market'.

2. The concept of the labour force participation rate is discussed in pages 160-164 (pages 77-79 in the first edition) under employee supply and demand. There is a short definition followed by an elaboration of some of the underlying factors - such as demographics, immigration and so on - which inter-relate with ideas discussed earlier in the chapter. It seems a simple concept at face value until you try to map out all the factors which lead to the rate for any particular country. You might try doing so for your own country. The labour force participation rate is often quoted in government statistics (or could easily be calculated from them). Go to HR Links.

3. The basic material for this question is found on page 153 (page 72 in the first edition) onwards under participating in the employment market. This is a question in which a definition of the key concept is essential as a prelude to the rest of the answer. In this case what exactly is 'full employment'? In fact, it does not mean zero unemployment - this is impossible because of various factors such as individuals taking their time to obtain work after completing university, a serious illness, etc. Can you find an exact percentage quoted anywhere which is accepted by a particular country or international body as the equivalent to no unemployment? There are other complicating factors to do with calculating relevant statistics, such as the way in which some people who are not working are regarded as 'unemployed' (perhaps claiming state unemployment benefits) whereas others are not (not claiming/ entitled).

Another aspect is the desirability of full employment. This might lead to an inflexible job market which would stifle growth or the development of new industries.

4. To answer this question throughly you need to examine government population and employment statistics which may be accessible through HR Links depending on the country in which you live.

5. Competitive and institutional theories are again discussed in pages 147-153 (pages 66-72 in the first edition) under 'why do people work?'. Read the relevant parts and make notes of key points. Then go back to chapter 1 and see if you can relate the points you have abstracted to the main characteristics of hard and soft HRM. You should find that the monetary reward basis of competitve theories align them more closely to hard HRM, whereas institutional theories are more organizational in approach and have parallels with soft HRM.

6. You could usefully read from pages 167-70 (pages 80-86 in the first edition) in order to answer this question. Make two tables with advantages and disadvantages listed for both employers and employees and fill these in as you read through. Then make brief notes against each to explain the pluses and minuses for both. Which do you think have the best deal?

Then relate your conclusions to the section on flexibility in chapter 7, pages 197-203 (chapter 4, pages 113-117 in the first edition).

7. This is a thorny question to which no-one has produced a perfect answer. So your conclusions are as good as anyone else's!

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