1. How would you go about developing a performance management system for an organization consisting primarily of professionals (knowledge workers) who work primarily with concepts and ideas, such as analysts and software developers, rather than production workers who work in an assembly-line environment? Is a performance management system even needed to measure the performance of professionals? What kind of performance appraisal system would you recommend for this type of worker? Why?

2. Employee benefits have become an important component of the American worker’s total compensation—at all levels. What changes are taking place and what forces are driving these changes? In which areas do you foresee changes in U.S. benefits in the next five years?

3. In your own words, discuss the basic structure of U.S. labor-management relations and why the proportion of workers represented by unions keeps dropping, while the number of nonunion workers, who indicate they would like to be represented by a union, keeps rising.

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