• Unit 4: Managing Human Capital

    This unit reviews the purpose and process of management and then extends into the function of managing people. Modern stakeholder theory is addressed as the manager considers the ethical responsibilities of managing people.

    Completing this unit should take you approximately 7 hours.

    • Upon successful completion of this unit, you should be able to:

      • explain how viewing people as part of the human capital of the firm adds value to the organization in terms of talent management and competitive advantage;
      • explain the forces (such as technology, business processes, workflow, skills gaps, generational changes, and talent development) that affect enterprise decision-making in managing human resources; and
      • use ethical principles and employee rights, such as trustworthiness and equal pay, to fairly manage people and effectively execute corporate social responsibility.

    • 4.1: Managing People

      Managing people occurs within several contexts. You may only be responsible for managing a team for one particular project. You may have a virtual team. You may manage a more traditional team within a business environment (such as retail, office, or healthcare). As a manager, you will be responsible for coaching them to reach their highest potential and ensuring that the team works together to accomplish the company's strategic goals. Managers and leaders must recognize the value of the employees in fulfilling the organization's mission. This represents a shift in the culture from a more autocratic management style. Companies that invest in their people have been shown to reap positive results on the bottom line. The materials in this section will show some current research on the value of human capital and the value of investing in employees.
      • Investing in Human Capital Book
        This resource shows investment in human resources can help a small or medium-sized enterprise prosper. Be attentive to how investment in human capital affects productivity, lower turnover, intellectual capital, and salary.

    • 4.2: Management Processes

      In addition to the behaviors we need to understand and manage in the workplace, there are also processes used when managing people. The resources in this section will help you develop processes for managing human resources and their work as groups. As managers and leaders, we have to keep performance at high levels, and we need to use modern processes as much as our skill sets to achieve the organization's goals and grow people.
      • Virtual Work Collaboration Book
        This resource describes the processes that need to be in place to support a virtual team. The processes include computer-based communication, work methodologies, and collaboration technology. While the focus is on using these tools in a virtual situation, we might also use the tools in other settings.
      • Transforming Talent Page
        Watch this video to learn how technology, politics, and changing generations are transforming the face of today's workforce. This transformation represents real challenges for acquiring, developing, and retaining talent.
      • State Government Managers Book
        Public employees may feel under public scrutiny; thus, managers may be averse to risk. Read this case study for a comprehensive view of all the issues managers and leaders face in planning and developing their workforce in the public sector.

    • 4.3: Forces Affecting Human Capital Management

      No company operates in an isolated environment. As you learned earlier in the course, internal factors affect people management, such as time, budget, infrastructure, and human resources (HR) practices. Additionally, external pressures may affect the management of people, such as lockdowns during a pandemic. Today, high-performing organizations operate much differently than they did in the past and may even be different than they were ten years ago. This section will explore modern trends in managing human capital.
      • Leading Change in a Complex World Book
        One of the challenges of the external environment businesses face is the aging of their workers. Recall that we discussed this in the context of motivating factors. There is a demographic shift in the workplace as baby boomers retire. With that comes a loss of knowledge and skills, which managers and companies have to address, and which training may help address. As part of the HR process, managers must remember that older, professionally competent workers can mentor newer employees as part of training and talent management. This article explores the challenges of population aging and the opportunities it provides.
      • Implementation of a Digital Workplace Strategy Book
        The digital workplace strategy may require a cultural change that needs to be supported by "learning measures". The article points out the benefits of a good digital strategy to the firm. It also discusses the ways that the digital strategy impacts the employees. Be attentive to the digital toolbox and how the digital strategy can be a business driver.

    • 4.4: Business Ethics in Human Capital Management

      In the context of this unit, we will explore business ethics in terms of how it affects managerial decision-making. We may all think we know right from wrong, but decisions are not made in a sterile environment. Most frequently, decisions have to be made when there are competing interests and the path to the decision is unclear. Additionally, it can be easy to confuse what is legal with what is ethical. Earlier, we looked at some decision-making models. Using a decision-making process can help managers when they have to weigh their ethical decision choices. This section will not tell you what is best because there is no one way to resolve an ethical decision. However, it will introduce the idea of business ethics and differing points of view on approaches that we might take in our decision-making.
      • Business Ethics Book
        This resource introduces the concept of business ethics and the relationships with stakeholders that give rise to legal duties and ethical responsibilities.
      • Whistle Blowers Page
        Remember that it is up to the employees to make and uphold ethical decisions. We seem to have a double standard where whistle-blowing is concerned. How do we act with courage in a difficult business environment? Watch this video to examine ethical issues in the workplace and how difficult it is to decide to get involved in whistle-blowing.
      • Managing Employee Performance Book
        One of the reasons companies have processes and human resources departments is because there are employment laws. This resource starts with an employee dilemma. You will be introduced to various performance issues and employee rights as you read.

    • 4.5: Managing People Ethically

      The manager represents the face of the company to their subordinates. The company is, of course, held to particular legal standards when dealing with employees. However, just meeting legal requirements does not form a relationship with the employees nor ensure that the company is acting ethically regarding their treatment of employees. The resources in this section will address the regulations affecting the employee relationship and ways to foster a satisfied workforce.
      • How Ethical Leadership Shapes Employees' Readiness to Change Book
        Organizations must continuously adapt to compete in today's changing business environment. However, employees tend to resist change viewing it as a threat. When organizations need to change, employees need to be ready for it, a concept known as individual readiness. Employees are less resistant to change when they perceive their leaders are trustworthy and have "faith in their intentions. This resource points out how ethical leadership can aid employees when undertaking change initiatives. The research analyzes the mechanisms that ethical leaders can use.
      • Workplace Environment and Working Conditions Book
        Beyond providing a safe workplace free from harassment, workers want to be treated with dignity. Generally, we expect our employers to be honest with us and transparent in their communications. However, there are times when the company should not be transparent such as when negotiating the firm's sale. Thus, managers can be placed in a difficult position. This text highlights some of the challenges managers face when fostering an environment where people can thrive. Pay attention to the end of the discussion on what people expect and want from firms regarding the benefits they are offered. Also, note that managers need to be authentically interested in the employees who report to them.
      • Ethical Leadership Page
        Research shows that ethical leadership and culture positively affect employee well-being and job satisfaction. The text states that emerging research finds that ethical leadership is not a leadership style but a behavioral component. You will also read about the behaviors associated with unethical leadership and their negative effects.

    • 4.6: Discriminatory Practices

      At this point in your career, you probably know that discrimination is against the law besides being morally and ethically wrong. We have also addressed the benefits and challenges of diversity in the workplace. However, how do we identify discriminatory practices? Given the civil unrest in the United States in 2020 with Black Lives Matter and other global civil movements on gender and racial equality, we need to question the behaviors at work that may be discriminatory. After we look at these practices, we will consider ways to manage workplace diversity and discrimination.
      • Prejudice and Discrimination Book
        We have previously learned about many of the descriptions of social groups that constitute diversity. This resource explains how stereotypes play into prejudice and discrimination. The prejudice and discriminatory conduct of racism, sexism, ageism, and homophobia are explored. The text also looks at how stereotypes can lead to scapegoating and how we can overcome these potential conflicts by expressing empathy, acknowledging the problem and conflict, and changing destructive behaviors.
      • Employment Discrimination Book
        Discrimination leads to earnings gaps by gender and race. However, economic forces can also lead to reasons not to discriminate. The resource provides an overview of the laws passed to prohibit discrimination.
      • Multiculturalism and the Law Book
        This text explores the laws against discrimination and how they are enforced. You will read about legal protections against discrimination, including Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA), and retaliation.
      • Stereotypes, Prejudice, and Discrimination Book
        Knowing how to change discriminatory attitudes and behaviors is knowing how they develop in the first place. This text explores how people become prejudiced and how it becomes embedded in society. It looks at prejudice, stereotyping, and discrimination in terms of social psychology rather than how they directly impact business. You will learn how to reduce discrimination, and while you may not be able to change society, there are practical tips on dealing with specific instances.

    • Unit 4 Study Resources

      This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.

    • Unit 4 Assessment

      • Unit 4 Assessment Quiz
        Receive a grade

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.