1. Lincoln Electric (25 points)
2. Kurt Landgraf (25 points)
When faced with charges of discrimination and harassment by women and minorities in DuPonts pharmaceutical division in 1988, Landgrafs responses included (1) establishing hiring goals for women and minorities (and using success or failure in meeting those goals as one factor in allocating raises and promotions to managers), (2) mandating sensitivity training and (3) setting up a Diversity Task Force. Now he is facing a similar situation in 1994 with African-American employees in the R&D division of Du Pont Merck Pharmaceutical Company threatening a lawsuit.
If you were in Kurt Landgrafs situation, how would you respond to the concerns of African-American employees? In your answer be sure to explain what the consequences would be of applying his 1988 actions to this situation and consider which (if any) of these steps would still be appropriate, which would not be, and what additional steps might be necessary. Briefly justify your recommendations.
Answer any 3 of the remaining questions (51 points, 17 points each)
3. Interviews are used in just about every hiring decision. What does the evidence say about the validity of interviews? What steps can a manager take to make the interview process as effective as possible?
4. Traditionally performance appraisals are done by an employees direct supervisor. Now many organizations have begun using a system where all managers at a given level collectively evaluate all of their subordinates. Explain why they think this committee-based approach might work better.
5. As we saw in the Merck case, many organizations follow a strategy of paying salaries that are designed to be above the average salary of their competitors. What is the business logic behind this practice?
6. Select one of the following HR systems and briefly describe how it operates: up-or-out system, high-commitment system, internal labor market. Point out two examples of technical complementarities between the different HR policies in that system (i.e., how do they help re-enforce each other). Give one example of a situation (use a specific company if you like, or provide some firm or market characteristics) where that system would be a good fit with a firms overall business strategy and one example where it would not be a good fit.