Richard L. Daft - Management. 9th ed., 2010

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PART 4 ORGANIZING310

The importance of human capital for business results is illustrated in Exhibit 11.2.

The framework was developed by Accenture and used by software and services

company SAP. SAP needed a way to evaluate and revise its human capital processes

to shift to a new strategy requiring stronger customer focus and greater individual

employee accountability. The idea is to show how investments in human capital

contribute to stronger organizational performance and better  nancial results.

The framework begins at the bottom (level 4) by assessing internal processes such

as workforce planning, career development, learning management, and so forth.

Managers use these activities to increase human capital capabilities (level 3), such

as employee engagement or workforce adaptability. Enhanced capabilities, in turn,

drive higher performance in key areas such as innovation or customer satisfaction

(level 2). Finally, improvements in key performance areas lead to improved busi-

ness results.

As a new manager, recognize that human capital is the organization’s most valuable

asset. If you are involved in hiring decisions, look for the best people you can ﬁ nd,

and then treat them like gold, with opportunities to learn, grow, and develop new

skills and earn appropriate compensation and beneﬁ ts.

TakeaMoment

SOURCE: Susan Cantrell, James M. Benton, Terry Laudal, and Robert J. Thomas, “Measuring the Value of Human Capital Investments: The SAP Case,” Strategy & Leadership

via Copyright Clearance Center.

EXHIBIT 11.2 The Role and Value of Human Capital Investments

Human Capital Capabilities

Leadership

Capability

Workforce

Performance

Employee

Engagement

Workforce

Adaptability

Ability to

Change

Talent

Management

Human Capital

Efficiency

Level 3

Business Results

Level 1

Revenue

Growth

ROIC or ROE

(FS only)

Total Return to

Shareholders

Future

Value

Competency

Management

Rewards and

Recognition

Career

Development

Employee

Relations

Performance

Appraisal

Human Capital

Strategy

Succession

Planning

Learning

Management

Recruiting

Knowledge

Management

Workforce

Planning

Human Capital Infrastructure

Workforce

Design

Level 4

Human Capital Processes

Key Performance Drivers

Level 2

Productivity Quality Innovation Customers

CHAPTER 11 MANAGING HUMAN RESOURCES 311

Organizing

Globalization

An issue of signi cant concern for today’s organizations is competing on a global

basis, and the success of a company’s global business strategies is closely tied to the

effectiveness of the organization’s global HR strategies.

A sub eld known as inter-

national human resource management (IHRM) speci cally addresses the added

complexity that results from coordinating and managing diverse people on a global

scale.

Research in IHRM has revealed that, as the world becomes increasingly inter-

connected, some HR practices and trends are converging. However, IHRM managers

need a high degree of cultural sensitivity and the ability to tailor and communicate

policies and practices for different cultures.

What works in one country may not

translate well to another. Exhibit 11.3 lists some interesting trends related to selection,

compensation, performance appraisal, and training in different countries.

THE IMPAC T OF FEDERAL LEGISLATION ON HRM

A number of federal laws have been passed to ensure equal employment opportunity

(EEO). Some of the most signi cant legislation and executive orders are summarized

in Exhibit 11.4. The point of the laws is to stop discriminatory practices that are unfair

to speci c groups and to de ne enforcement agencies for these laws. EEO legisla-

tion attempts to balance the pay given to men and women; provide employment

opportunities without regard to race, religion, national origin, and gender; ensure

fair treatment for employees of all ages; and avoid discrimination against disabled

individuals.

The Equal Employment Opportunity Commission (EEOC) created by the Civil

Rights Act of 1964 initiates investigations in response to complaints concerning dis-

crimination. The EEOC is the major agency involved with employment discrimina-

tion. Discrimination occurs when some applicants are hired or promoted based on

criteria that are not job relevant; for example, refusing to hire a black applicant for

a job he is quali ed to  ll or paying a woman a lower wage than a man for the

same work are discriminatory acts. When discrimination is found, remedies include

providing back pay and taking af rmative action. Af rmative action requires that

an employer take positive steps to guarantee equal employment opportunities for

people within protected groups. An af rmative action plan is a formal document

that can be reviewed by employees and enforcement agencies. The goal of organiza-

tional af rmative action is to reduce or eliminate internal inequities among affected

employee groups.

Selection • In Japan, HR managers focus on a job applicant’s potential and his or her ability to get along with oth-

ers. Less emphasis is placed on job-related skills and experience.

• Employment tests are considered a crucial part of the selection process in Korea, whereas in Taiwan,

the job interview is considered the most important criterion for selection.

Compensation

• Seniority-based pay is used to a greater extent in Asian and Latin countries.

• China and Taiwan have surprisingly high use of pay incentives and are moving toward more incentives

based on individual rather than group performance.

Performance Appraisal

• Across ten countries surveyed, managers consider recognizing subordinates’ accomplishments, evaluat-

ing their goal achievement, planning their development, and improving their performance to be the

most important reasons for performance appraisals.

Training

• In Mexico, managers consider training and development a reward to employees for good performance.

• HR managers in Korea incorporate team-building into nearly all training and development practices.

SOURCE: Mary Ann Von Glinow, Ellen A. Drost, and Mary B.Teagarden,“Converging on IHRM Best Practices: Lessons Learned from a Globally Distributed Consortium on

Theory and Practice,” Human Resource Management 41, no. 1 (Spring 2002): 123–140.

EXHIBIT 11.3 Some Trends in International Human Resource Management

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PART 4 ORGANIZING312

Failure to comply with equal employment opportunity legislation can result

in substantial  nes and penalties for employers. Suits for discriminatory practices

can cover a broad range of employee complaints. One issue of growing concern is

sexual harassment, which is also a violation of Title VII of the Civil Rights Act. The

EEOC guidelines specify that behavior such as unwelcome advances, requests for

sexual favors, and other verbal and physical conduct of a sexual nature becomes

sexual harassment when submission to the conduct is tied to continued employ-

ment or advancement or when the behavior creates an intimidating, hostile, or

offensive work environment.

Sexual harassment will be discussed in more detail

in Chapter 12.

Exhibit 11.4 also lists the major federal laws related to compensation and bene ts

and health and safety issues. The scope of human resource legislation is increasing

at federal, state, and municipal levels. The working rights and conditions of women,

minorities, older employees, and the disabled will likely receive increasing legisla-

tive attention in the future.

As a new manager, you may need to keep detailed records that document compliance

with federal laws and regulations. Complete the New Manager Self-Test on page 313

to see if you have a natural orientation toward systematic record-keeping.

TakeaMoment

Federal Law Year Provisions

Equal Opportunity/Discrimination Laws

Civil Rights Act 1991 Provides for possible compensatory and punitive damages plus

traditional back pay for cases of intentional discrimination brought

under title VII of the 1964 Civil Rights Act. Shifts the burden of

proof to the employer.

Americans with Disabilities Act 1990 Prohibits discrimination against qualiﬁ ed individuals by employers on

the basis of disability and demands that “reasonable accommoda-

tions” be provided for the disabled to allow performance of duties.

Vocational Rehabilitation Act 1973 Prohibits discrimination based on physical or mental disability and

requires that employees be informed about afﬁ rmative action plans.

Age Discrimination in Employment

Act (ADEA)

1967 (amended

1978, 1986)

Prohibits age discrimination and restricts mandatory retirement.

Civil Rights Act, Title VII 1964 Prohibits discrimination in employment on the basis of race, reli-

gion, color, sex, or national origin.

Compensation/Beneﬁ ts Laws

Health Insurance Portability

Accountability Act (HIPPA)

1996 Allows employees to switch health insurance plans when changing

jobs and get the new coverage regardless of preexisting health con-

ditions; prohibits group plans from dropping a sick employee.

Family and Medical Leave Act 1993 Requires employers to provide up to 12 weeks unpaid leave for

childbirth, adoption, or family emergencies.

Equal Pay Act 1963 Prohibits sex differences in pay for substantially

equal work.

Health/Safety Laws

Consolidated Omnibus Budget Reconcilia-

tion Act (COBRA)

1985 Requires continued health insurance coverage (paid by employee)

following termination.

Occupational Safety and Health Act

(OSHA)

1970 Establishes mandatory safety and health standards in

organizations.

EXHIBIT 11.4 Major Federal Laws Related to Human Resource Management

CHAPTER 11 MANAGING HUMAN RESOURCES 313

Organizing

What Is Your HR Work

Orientation?

As new manager, what is your orientation con-

cerning day-to-day work issues? To ﬁ nd out, think

about your preferences for the questions below.

Circle a or b for each item depending on which

one is accurate for you. There are no right or

wrong answers.

1. The work elements I prefer are

_____ a. Administrative

_____ b. Conceptualizing

2. The work elements I prefer are

_____ a. Creative

_____ b. Organizing

3. My mode of living is

_____ a. Conventional

_____ b. Original

4. Which is more important to you?

_____ a. How something looks (form)

_____ b. How well it works (function)

5. I like to work with

_____ a. A practical person

_____ b. An idea person

6. I am more

_____ a. Idealistic

_____ b. Realistic

7. For weekend activities, I prefer to

_____ a. Plan in advance

_____ b. Be free to do what I want

8. A daily work routine for me is

_____ a. Painful

_____ b. Comfortable

SCORING AND INTERPRETATION: The HR

department typically is responsible for monitor-

ing compliance with federal laws, and it provides

detailed and speciﬁ c employee procedures and

records for an organization. Every new manager

is involved in HR activities for his or her direct

reports, which involves systematic record keeping,

awareness of applicable laws, and follow through.

For your HR work orientation, score one point

for each “a” answer circled for questions 1, 3, 5,

7 and one point for each “b” answer circled for

questions 2, 4, 6, 8.

New managers with a high score (seven or eight)

for HR work orientation tend to be practical,

organized, good at record keeping, and meet com-

mitments on time. New managers with a low score

(one or two) on HR work orientation tend to be

more free-spirited, creative, and conceptual. These

managers tend to think out-of-the-box and may

dislike the organization, routine, and legal record

keeping required for efﬁ cient HR management. If

your score is midrange (three to six), you may do

well with HR work if you put your mind to it, but

HR may not be your area of greatest strength.

New ManagerSelf-Test

PART 4 ORGANIZING314

THE CHANGING NATURE OF CAREERS

Another current issue is the changing nature of careers and a shift in the relationship

between employers and employees.

The Changing Social Contract

In the old social contract between organization and employee, the employee could

contribute ability, education, loyalty, and commitment and expect in return that

the company would provide wages and bene ts, work, advancement, and training

throughout the employee’s working life. But volatile changes in the environment

have disrupted this contract. Consider the following list found on a bulletin board at

a company undergoing major restructuring:

▪ We can’t promise you how long we’ll be in business.

▪ We can’t promise you that we won’t be acquired.

▪ We can’t promise that there’ll be room for promotion.

▪ We can’t promise that your job will exist when you reach retirement age.

▪ We can’t promise that the money will be available for your pension.

▪ We can’t expect your undying loyalty, and we aren’t even sure we want it.

Downsizing, outsourcing, rightsizing, and restructuring have led to the elimina-

tion of many positions in organizations. Employees who are left may feel little stabil-

ity. The above list re ects a primarily negative view of the new employer-employee

relationship, but there are positive aspects as well. Many people, particularly younger

employees, like the expectation of responsibility and mobility embedded in the new

social contract. Everyone is expected to be a self-motivated worker who is continu-

ously acquiring new skills and demonstrating value to the organization.

Exhibit 11.5 lists some elements of the new social contract. The new contract is

based on the concept of employability rather than lifetime employment. Individuals are

responsible for developing their own skills and abilities, understanding their employ-

er’s business needs, and demonstrating their value to the organization. The employer,

in turn, invests in creative training and development opportunities so that people will

be more employable when the company no longer needs their services. This means

offering challenging work assignments, opportunities to participate in decision mak-

ing, and access to information and resources. In addition, an important challenge for

HRM is revising performance evaluation, compensation, and reward practices to be

compatible with the new social contract. Smart organizations contribute to employees’

long-term success by offering extensive professional training and development oppor-

tunities, career information and assessment, and career coaching.

EXHIBIT 11.5

The Changing Social

Contract

New Contract Old Contract

Employee • Employability; personal responsibility

• Partner in business improvement

• Learning; skill development

• Job security

• A cog in the machine

• Knowing

Employer • Creative development opportunities

• Lateral career moves; incentive

compensation

• Challenging assignments

• Information and resources; decision-

making authority

• Standard training programs

• Traditional compensation package

• Routine jobs

• Limited information

SOURCES: Based on Louisa Wah,“The New Workplace Paradox,”Management Review ( January 1998): 7; and Douglas T. Hall

and Jonathan E. Moss,“The New Protean Career Contract: Helping Organizations and Employees Adapt,”Organizational Dynamics

(Winter 1998): 22–37.

CHAPTER 11 MANAGING HUMAN RESOURCES 315

Organizing

The new social contract can bene t both employees and organizations. However,

some companies take the new approach as an excuse to treat people as economic factors

to be used when needed and then let go. This attitude hurts morale, employee commit-

ment, and organizational performance. Studies in both the United States and China, for

example, have found lower employee and  rm performance and decreased commitment

in companies where the interaction between employer and employee is treated as a con-

tractlike economic exchange rather than a genuine human and social relationship.

As a new manager, appreciate the opportunities that are offered by the new social

contract. Allow people to make genuine contributions of their talents to the organiza-

tion, and provide them with challenging work and opportunities to learn new skills

they can transfer to other jobs in the future.

Innovations in HRM

The rapid change and uncertainty in today’s business environment bring signi cant

new challenges for human resource management. Some important issues are becom-

ing an employer of choice, addressing the needs of temporary employees and part-

time workers, acknowledging growing employee demands for work/life balance,

and humanely managing downsizing.

Becoming an Employer of Choice The old social contract may be broken for

good, but today’s best companies recognize the importance of treating people right

and thinking for the long term rather than looking for quick  xes based on an eco-

nomic exchange relationship with employees. An employer of choice is a company that

is highly attractive to potential employees because of human resources practices that

focus not just on tangible bene ts such as pay and pro t sharing, but also on intangi-

bles (such as work/life balance, a trust-based work climate, and a healthy corporate

culture), and that embraces a long-term view to solving immediate problems.

engage people and spur high commitment and performance, an employer of choice

chooses a carefully balanced set of HR strategies, policies, and practices that are tai-

lored to the organization’s own unique goals and needs.

Using Temporary and Part-Time Employees Con-

tingent workers are becoming a larger part of the work-

force in both the United States and Europe. Contingent

workers are people who work for an organization, but

not on a permanent or full-time basis. These include

temporary placements, contracted professionals, leased

employees, or part-time workers.

The temporary staff-

ing industry doubled between 2002 and 2007 and is

projected to grow into a $200 billion industry by 2010.

People in temporary jobs do everything from data entry,

to project management, to becoming the interim CEO.

Although in the past, most temporary workers were in

clerical and manufacturing positions, in recent years

demand has grown for professionals, such as accoun-

tants and  nancial analysts, interim managers, informa-

tion technology specialists, product managers, and even

lawyers and health-care workers. A related trend is the

use of virtual teams. Some are made up entirely of people

who are hired on a project-by-project basis. Many com-

panies depend on part-time or temporary employees to

maintain  exibility.

TakeaMoment

REDUX IMAGES

The Federal Deposit Insurance

Corporation is handling the increasing demand for its intervention

in bank failures with contingent professionals, mostly retirees who

bring the needed expertise. Gary Holloway, shown here, was recruited

back after two years of retirement and now considers his ofﬁ ce “on

the road” as he travels to failing banks in his temporary job. An FDIC

group swoops in like a SWAT team, sorts through a bank’s troubled

loans, sells assets, and reopens the bank under new ownership.

Holloway brings to this task his experience with the FDIC during the

1980s savings and loan crisis, which resulted in 534 closings.

con

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PART 4 ORGANIZING316

Promoting Work/Life Balance Initiatives that enable employees to lead

a balanced life are a critical part of many organizations’ retention strategies. One

approach is to let people work part of the time from home or another remote location.

Telecommuting means using computers and telecommunications equipment to do

work without going to an of ce. The most recent report from the Bureau of Labor

Statistics shows that 30.7 million people in the United States worked from home at

least one day a week in 2004. This includes more than 100,000 employees of the fed-

eral government, according to the Of ce of Personnel Management.

Other forms of

 exible scheduling are also important in today’s workplace, and 55 percent of HRM

professionals surveyed say they are willing to negotiate  exible work arrangements

with interviewees and new employees.

In addition, many companies have implemented broad work/life balance ini-

tiatives, partly in response to the shift in expectations among young employees.

Generation Y workers are a fast-growing segment of the workforce. Typically, Gen Y

employees work smart and work hard on the job, but they refuse to let work be their

whole life. Unlike their parents, who placed a high priority on career, Gen Y workers

expect the job to accommodate their personal lives.

Rightsizing the Organization In some cases,

organizations have more people than they need and

have to let some employees go. Rightsizing refers to

intentionally reducing the company’s workforce to

the point where the number of employees is deemed

to be right for the company’s current situation. Also

called downsizing, planned reductions in the size of

the workforce are a reality for many of today’s com-

panies. As the term rightsizing implies, the goal is to

make the company stronger and more competitive by

aligning the size of the workforce with the company’s

current needs. However, some researchers have found

that massive cuts often fail to achieve the intended

bene ts and in some cases signi cantly harm the orga-

nization.

Unless HRM departments effectively and

humanely manage the rightsizing process, layoffs can

lead to decreased morale and performance. Managers

can smooth the process by regularly communicating

with employees and providing them with as much

information as possible, providing assistance to work-

ers who will lose their jobs, and using training and development to help address

the emotional needs of remaining employees and enable them to cope with new or

additional responsibilities.

FINDING THE RIGHT PEOPLE

Now let’s turn to the three broad goals of HRM:  nding, developing, and maintaining

an effective workforce. The  rst step in  nding the right people is human resource

planning, in which managers or HRM professionals predict the need for new employ-

ees based on the types of vacancies that exist, as illustrated in Exhibit 11.6. The second

step is to use recruiting procedures to communicate with potential applicants. The

third step is to select from the applicants those persons believed to be the best poten-

tial contributors to the organization. Finally, the new employee is welcomed into the

organization.

Underlying the organization’s effort to attract employees is a matching model.

With the matching model, the organization and the individual attempt to match

When the Maytag operations closed in

Newton, Iowa, Derek Winkel decided that was where he should locate

his new company, Central Iowa Energy. Winkel knew he could attract

an effective workforce for the biodiesel production company because

there would be plenty of skilled and available labor in the area. Almost

all of his employees are former Maytaggers.

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CHAPTER 11 MANAGING HUMAN RESOURCES 317

Organizing

the needs, interests, and values that they offer each other.

For example, a small

software developer might require long hours from creative, technically skilled

employees. In return, it can offer freedom from bureaucracy, tolerance of idiosyn-

crasies, and potentially high pay. A large manufacturer can offer employment secu-

rity and stability, but it might have more rules and regulations and require greater

skills for “getting approval from the higher-ups.” The individual who would thrive

working for the software developer might feel stymied and unhappy working for

a large manufacturer. Both the company and the employee are interested in  nding

a good match.

Human Resource Planning

Human resource planning is the forecasting of human resource needs and the pro-

jected matching of individuals with expected vacancies. Human resource planning

begins with several questions:

▪ What new technologies are emerging, and how will these affect the work system?

▪ What is the volume of the business likely to be in the next  ve to ten years?

▪ What is the turnover rate, and how much, if any, is avoidable?

The responses to these questions are used to formulate speci c questions pertain-

ing to HR activities, such as the following:

▪ What types of engineers will we need, and how many?

▪ How many administrative personnel will we need to support the additional

engineers?

▪ Can we use temporary, part-time, or virtual workers to handle some tasks?

By anticipating future human resource needs, the organization can prepare itself

to meet competitive challenges more effectively than organizations that react to prob-

lems only as they arise. One of the most successful applications of human resource

planning occurred at the Tennessee Valley Authority.

EXHIBIT 11.6 Attracting an Effective Workforce

hum

an resource planning

forecastin

of human re

rce

eds

pro

jec

ted

atc

ivi

s wit

pecte

vacancies

PART 4 ORGANIZING318

TVA created an eight-step plan that assesses future HR needs and formulates actions to meet

those needs. The ﬁ

rst step is laying the groundwork for later implementation of the pro-

gram by creating planning and oversight teams within each business unit. Step two involves

assessing processes and functions that can be benchmarked. Step three involves projecting

the skills and employee numbers (demand data) that will be necessary to reach goals within

each business unit. Once these numbers are in place, step four involves projecting the current

employee numbers (supply data) over the planning horizon without new hires and taking into

consideration the normal attrition of staff through death, retirement, resignation, and so

forth. Comparison of the difference between supply and demand (step ﬁ ve) gives the future

gap, or surplus situation. This knowledge enables HR to develop strategies and operational

plans (step six). Step seven involves communicating the action plan to employees. The ﬁ nal

step is to periodically evaluate and update the plan as the organization’s needs change. When

TVA faces a demand for additional employees, this process enables the company to recruit

workers with the skills needed to help meet organizational goals.

Recruiting

Recruiting is de ned as “activities or practices that de ne the characteristics of appli-

cants to whom selection procedures are ultimately applied.”

Today, recruiting is

sometimes referred to as talent acquisition to re ect the importance of the human fac-

tor in the organization’s success.

Even when unemployment rates are high, com-

panies often have trouble  nding people with the skills the organization needs. A

survey by Manpower Inc. of 33,000 employers in 23 countries found that 40 percent

reported having dif culty  nding and hiring the desired talent.

Although we frequently think of campus recruiting as a typical recruiting activ-

ity, many organizations use internal recruiting, or promote-from-within policies, to  ll

their high-level positions.

Internal recruiting has two major advantages: It is less

costly than an external search, and it generates higher employee commitment, devel-

opment, and satisfaction because it offers opportunities for career advancement to

employees rather than outsiders. Frequently, however, external recruiting—recruiting

newcomers from outside the organization—is advantageous. Applicants are pro-

vided by a variety of outside sources including advertising, state employment ser-

vices, online recruiting services, private employment agencies (headhunters), job fairs,

and employee referrals.

Assessing Organizational Needs Basic building blocks of human resource man-

agement include job analysis, job descriptions, and job speci cations. Job analysis

is a systematic process of gathering and interpreting information about the essential

duties, tasks, and responsibilities of a job, as well as about the context within which

the job is performed.

To perform job analysis, managers or specialists ask about

work activities and work  ow, the degree of supervision given and received in the

job, knowledge and skills needed, performance standards, working conditions, and so

forth. The manager then prepares a written job description, which is a clear and con-

cise summary of the speci c tasks, duties, and responsibilities, and job speci cation,

which outlines the knowledge, skills, education, physical abilities, and other charac-

teristics needed to adequately perform the job.

Job analysis helps organizations recruit the right kind of people and match them

to appropriate jobs. For example, to enhance internal recruiting, Sara Lee Corporation

identi ed six functional areas and 24 signi cant skills that it wants its  nance execu-

tives to develop, as illustrated in Exhibit 11.7. Managers are tracked on their develop-

ment and moved into other positions to help them acquire the needed skills.

Realistic Job Previews Job analysis also enhances recruiting effectiveness by

enabling the creation of realistic job previews. A realistic job preview (RJP) gives

applicants all pertinent and realistic information—positive and negative—about the

Tennessee Valley

Authority (TVA)

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CHAPTER 11 MANAGING HUMAN RESOURCES 319

Organizing

job and the organization.

RJPs contribute to greater employee satisfaction and lower

turnover because they facilitate matching individuals, jobs, and organizations. Indi-

viduals have a better basis on which to determine their suitability to the organization

and “self-select” into or out of positions based on full information.

Legal Considerations Organizations must ensure that their recruiting practices

conform to the law. As discussed earlier in this chapter, equal employment opportu-

nity (EEO) laws stipulate that recruiting and hiring decisions cannot discriminate on

the basis of race, national origin, religion, or gender. The Americans with Disabilities

Act underscored the need for well-written job descriptions and speci cations that

accurately re ect the mental and physical dimensions of jobs, so that people with dis-

abilities will not be discriminated against. Af rmative action refers to the use of goals,

timetables, or other methods in recruiting to promote the hiring, development, and

retention of protected groups. Most large companies try to comply with af rmative

action and EEO guidelines. Prudential Insurance Company’s policy is presented in

Exhibit 11.8. Prudential actively recruits employees and takes af rmative action steps

to recruit individuals from all walks of life.

EXHIBIT 11.7

Sara Lee’s Required Skills

for Finance Executives

SOURCE: Victoria Grifﬁ th, “When Only Internal Expertise Will Do,” CFO (October 1998):

95–96, 102.

An Equal Opportunity Employer

Prudential recruits, hires, trains, promotes, and compensates individuals without regard to race,

color, religion or creed, age, sex, marital status, national origin, ancestry, liability for service in the

armed forces of the United States, status as a special disabled veteran or veteran of the Vietnam

era, or physical or mental handicap.

This is ofﬁ cial company policy because: • we believe it is right

• it makes good business sense

• it is the law

We are also committed to an ongoing program of afﬁ rmative action in which members of under-

represented groups are actively sought out and employed for opportunities in all parts and at all

levels of the company. In employing people from all walks of life, Prudential gains access to the full

experience of our diverse society.

EXHIBIT 11.8

Prudential’s Corporate

Recruiting Policy