Chapter 8 – Foundation of human resources management:
Human resource management (HRM) is the set of organization activities directed at attracting
developing and maintaining an effective workforce.
The strategic importance of HRM – The importance has grown dramatically in complexities, the
recognition that human resources are a valuable means for improving productivity, and the awareness
today of the cost associated with poor human resource management.
- Poor human resource planning can result in spurts of hiring followed by layoffs – costly in terms
of unemployment compensation payments, training expenses, and morale.
Human Resource Planning –
Job Analysis: - is a systematic analysis of jobs within an organization.
- Job Description - lists of duties of a job, its working condition, and tools, materials, and
equipment used to perform it.
- Job specification – Lists the skill abilities and other credentials needed to do the job.
Forecasting HR demand and Supply:
- The manager starts by assessing trends in past HR usage, future organization plans, and general
economic trends. Forecast of sales the demand of employees etc.
- Forecasting the supply of labor involves: Forecasting internal supply – the number and type of
employees who will be in the firm at some future date.
- Forecasting external supply – the number and type of people who will be available for hiring
from the labor market at large.
- Also, large companies keep track of future distribution of professionals and managers. So they
can keep track the competition of professions in the future.
Replacement Charts – At higher levels of the organization, managers make plans for specific people and
position. Common use “replacement chart” which list each important managerial position who occupies
it, how long will he or she stay before moving, and who’s qualified to move into it. This will allow
companies to evaluate or give developmental experience for people identified as potential successor to
critical managerial jobs.
Skill inventories: Facilitate both planning and identifying people for transfer or promotion some
organizations have employee systems info system or skill inventories. It’s a computerized system that
contains information on each employee’s education, skills, work experience, and career aspirations.
Match HR Supply and Demand:
- The future demand and internal supply can give managers prediction on shortfalls or
overstaffing. If shortfall happens companies can start hiring. If overstaffing happens, companies will transfer extra employees, not replacing individual who quit, and encourage early retirement
Staffing the Organization:
- Once position is needed to be fill organization will start seeking people who meet the job
requirement. Statistics has shown that companies look for ethic, reliability and willingness to
stay on the job.
Recruiting Human Resources:
- Once companies have what they need, they next phase is recruiting. Recruiting is the process of
attracting qualified person to apply for the jobs that are open. There is external and internal
- Internal Recruiting – considering present employees as candidates for opening. Promotion can
help build morale and keep high quality employees to stay in the companies.
- External Recruiting – involves attracting people outside the organization to apply for jobs. This
includes method such as advertising, campus interviews, employment agencies or executive
search firms, union hiring halls, referrals by present employees, and hiring “walk-ins” or “gate –
- Internships – One method of external recruiting involves offering college and university student
internships. It’s a short-term paid position where students focus on a specific project.
Selecting Human Resources:
- Once a pool of applicant has been obtained, the next step is to select someone to hire. Through
the gather of information from applicants, a prediction can be made on their job success and
then to hire the candidates likely to be most successful. The process of determine predictive
value of information is called validation.
- Application forms – is usually the appropriate first step in analyzing the candidates background
information which include the previous work history, education background, and other job-
related demographic data. Should not include unrelated questions to the job.
- Test – Test of ability, skill, aptitude, or knowledge is relevant to a particular job are usually the
best predictors of job success. All tests should be administer in a fair way and scored
consistently. The test must be related to the job and who will best fit for it through their test
- Interviews – is a popular selection device, but sometimes a poor predictor of job success
because biases that are inherent in the way people perceive and judge others on their first
meeting. Some of the ways to validate can improved by training interviewers to be aware of
potential biases is by writing down question before hand and to ask each candidate.
Interviewers can also add a “curveball” questions that a applicant would never expect to be
asked. - Other techniques – Includes physical examination, job related examination so they’re best
suited for the job.
Developing Human Resources:
- Most employees now need further training so that they’re able to grow and develop in their job.
This include orientation, and then proceeds to assessment of training and development needs
and the selection of the best training techniques and methods.
New Employee Orientation:
- Orientation – is the process of introducing new employees to the company’s policies and
program, personnel with whom they will interact, and the nature of the job so that they can
more quickly become effective contributors. In a poor orientation will cause dissatisfaction,
anxiety or etc employee problems. An effective orientation will give the impression that they’re
welcome to the team; introduce co-workers, supervisors and etc. Companies may also include a
general overview of an introduction to the business itself.
Training and Development:
- Employees must be continually trained and developed to enhance and otherwise improve the
quality of the contributions they make to the organization.
- The starting point usually include assessing training and develop need is conducting a need
- Determining what an organization truly needs: the organization’s job-related needs and the
capabilities of the current workforce.
- Work-Based Program – One major family of technique and methods consist of various work-
based program that tie training and development activities directly to task performance.
- The Job training – the employee is place in the actual work situation and is shown how to
perform a task by a supervisor or an experienced employee.
- System job rotation and transfers- A technique which an employee is systemically rotated or
transferred from one job to another.
- Instructional Based program – training workers through the use of classroom- based program
such as lecture approach.
- Lecture or discussion approach – an instructional – based program in which a trainer presents
material in a descriptive fashion to those attending a trainee program .
- Off the job training – those development programs in which employee learn new skills at a
location away fro