Chapter 9: Managing the human resources
The rise of knowledge workers
Why human resources are important:
Before: Canada was “Industrial” Economy We made and sold “things”
Now: Canada is “knowledge” economy We sell knowledge, expertise
Knowledge Workers: require education apply theoretical knowledge apply analytical knowledge
Why human resources matter:
Brain power will make Canada wealthy, ability
70% of Canadian GDP from services
75% of Canadian employment: services
Business success will require individual businesses to attract and retain the best people
The Human Resource Function:
Predicts Human resources needs
Locates the best candidates
Selects the best employees
Provides training to new employees
Design and administer [ay and benefits
Provide counselling and assistance
Manager’s job is to pull employees into the right direction
If a manger lies to an employee, treats employee badly, employees will not take 50% raise,
employees will not be motivated to work overtime; Or To work get a raise in wage means to
work harder over time etc.
Motivation is and internal force that makes you behave in a certain way
Human resources management (HRM) is the set of organizational activities directed at
attracting, developing and maintaining an effective work-force.
The Strategic Importance of HRM
Valuable means for improving productivity and the awareness today of the costs associated with
poor human resource management
Human Resource Planning
Involves job analysis and forecasting the demand for and supply of labour.
Is a systematic analysis of jobs within an organization. Made up of two parts:
1. Job description list of duties of a job, its working condition, and the tools,
materials and equipment used to perform it
2. Job specification lists the skills, abilities and other credentials needed to do the
Forecasting HR Demand and Supply
After managers understand jobs that need to be performed within the organization they start
planning for the organization’s future HR needs.
Forecasting the supply of labour involves two tasks:
1. Forecasting internal supply- the number and type of employees who will be in the firm at
some future date 2. Forecasting external supply- the number and type of people who will be available for
hiring from the labour market at large.
Replacement Charts at higher levels managers make plans for positions and for people. The
replacement chart lists important managerial positions, who occupies it, how long her or she
will probably stay in it before moving on, and who (by name) is now qualified or soon will be
qualified to more into it.
Skills Inventory To facilitate both planning and identifying people for transfer or promotion,
some organizations also have employee information or skills inventories.
Matching HR Supply and Demand
After comparing future demand and internal supply, managers can male plans to manage
predicted shortfalls or overstaffing. If shortfalls are predicted, new employees can be hired,
present employees can be retrained and transferred into understaffed areas, individuals
approaching retirement can be convinced to stay on. Or labour-saving or productivity-enhancing
systems can be installed.
Staffing the Organization
Look for when they hire;
Good work, ethic, reliability and willingness to stay on the job.
Recruiting Human Resources
Recruiting is the process of attracting qualified persons to apply for jobs that are open.
Means considering present employees as candidates for openings. Promotions will help build
morale and keep high-quality employees from leaving.
Involves attracting people outside the organization to apply for jobs. For example external
methods is advertising., campus interviews, employment agencies or executive search firms,
union hiring halls. Referrals by present employees and hiring `walk-ins` or `gate-hires`
Internships short term paid positions where students focus on a specific project (involves
college or university students). If individual works well then company usually hires them.
Selecting Human Resources
Validation the process of determining the predictive value if information.
Other Techniques (physical examinations, polygraph tests-lie detector tests, etc)
Developing Human Resources
New Employee Orientation
The process of introducing new employees to the company`s policies and programs, personnel
with whim they will interact, and the nature of the job so that they can more quickly become
effective contributors. Poor orientation can result in disenchantment, dissatisfaction, anxiety,
turnover and other employee problems.
Training and Development
Train and develop employees to enhance and otherwise improve the quality of the contributions
they make to the organization. The starting point in assessing training and development needs is conducting a needs analysis
– determining the organizations true needs and the training programs necessary to meet them.
Analysis focuses on two things: the organizations job-related needs and the capabilities of the
Worked-Base Programs- a technique that ties training and development activities to task
performance. Common method of work-based training is on-the-job training employees gain
new skills while on the job.
Another work-based program is systematic job rotations and transfers this method is most
likely to be used for lower level manager or for operating employees being groomed for
promotions to supervisory management positions. Employee learns new task, acquires more
abilities and develops a more comprehensive view of the work of an organization or a particular
Instructional-based programs training workers through the use of classroom-based programs
such as the lecture approach.
Commonly used of these programs is the lecture of discussion approach – a trainer presents
material in a descriptive fashion to those attending a trainee program. For example professor
lectures students on a particular subject matter, and organizational trainer `lectures` trainees.
Off-the-job training is performed at a location away from the work sure.
Team Building and Group-Based Training
•Outdoor training exercises For example a group doing through a physical obstacle course that
requires climbing, crawling and other physical activities.
Evaluating Employee Performance
•Important part of human resources: Performance appraisal-the specific and formal evaluation
of an employee to determine the degree to which he or she is performing effectively
•Performance appraisal help managers assess the extent to which they are recruiting and
selecting the best employees
Time performance Appraisal Process
Conducting the performance appraisal
For example a supervisor. The supervisor is both responsible for employe