MGTA01H3 Lecture Notes - The Foundations

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9 Aug 2010
human resource management (HRM): set of organizational activities directed at attracting,
developing, and maintain an effective workface
Æ most difficult to manage b/c we are human beings and have feelings. They can be
unproductive and counterproductive
The strategic Importance of HRM
- human resources are critical for effective organization functioning
- HRM use to be second class in many organizations but its importance has grown due to
increased legal complexities, the recognition that human resources are a valuable means for
improving productivity, and the awareness today of the costs associated with poor human
resource management
Human Resource Planning
- starting pnt in attracting qualified human resources is planning
- HR planning involves job analysis and forecasting the demand for and supply of labour
Job Analysis: a detailed study of the specific duties in a particular job and the human qualities
required for that job
2 parts:
1) job description: the objective, responsibilities, and key tasks of a job, the conditions under
which it will be done, its relationship to other positions, and the skills needed to perform it
Æ lists the duties of a job, its working conditions, and the tools, materials, and equipment use to
perform it
2) job specification: the specific skills, education, and experience needed to perform a job
Ælists the skills, abilities, and other credentials needed to do that job
Forecasting HR Demand and Supply
- after managers understand the jobs to be performed within an organization, they start planning
Æ start by assessing trends in past HR usage, future organization plans, and general economic
- good sales forecast is often the foundation
- historical ratios can be used to predict demand for types of employees, such as operating
employees and sales representatives
- large organizations use more complicated models
forecasting supply of labour involves 2 tasks:
1) forecasting internal supply: the number and type of employees who will be in the firm at
some future date
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2) forecasting external supply: the number of type of ppl who will be available for hiring from
the labour market at large
- simplest approach merely adjusts present staffing levels for anticipated turnover and promotion
Replacement charts: an HR technique that lists each imp managerial positions, who occupies it,
how long he or she will probably stay in it b4 moving on, and who (by name) is now qualified or
soon will be qualified to move into it
- at higher levels of the organizations, managers make plans for specific ppl and positions.
Æ technique most used and allows ample time to plan development experiences for ppl
identified as potential successors to critical managerial jobs
Skills Inventory
- to facilitate both planning and identifying ppl for transfer or promotion, some organization also
have employee information systems (skills inventories) ± computerized systems that contain
Æ system can quickly locate every employee who is qualified to fill a position requiring
- forecasting the external supply of labour relies on outside sources
ex. Gov reports, and figures supplied by colleges and unis on the number of students in major
Matching HR supply and Demand
- comparing future demand and internal supply enable managers to predict shortfalls or
- shortfall: hire, retrain present employees, transfer to under staff areas, convince ppl not to retire,
labour-saving or productivity enhancing systems can be installed
- Hire: external labour supply curve helps managers plan how to recruit according to whether the
type of person needed is readily available or scarce in the labour market. Temporary workers
give managers extra flexibility.
- RYHUVWDIILQJWUDQVIHUH[WUDVGRQ¶WUHSODFHGWhose who quit, encourage early retirement, lay off
- top 3 characteristic employers look for: good work ethic, reliability, willingness to stay on the
- staffing is one of most complex and imp in HRM
Recruiting Human Resources
recruiting: the phase in the staffing of a company in which the firm seeks to develop a pool of
interested, qualified applicants for a position
Internal recruiting
Æ considering present employees as candidates for job openings
- promotion from within can help build morale and keep high quality employees from leaving
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- unionized firms: procedures for notifying employees of internal job-change opportunities are
usually spelled out in the union contract
- for higher-level positions, a skills inventory system may be used to identify internal candidates
or managers may be asked to recommend individuals
External recruiting
Æ attracting ppl outside the organization to apply for jobs
- external recruiting methods include advertising, campus interviews, employment agencies or
executive search firms, union hiring halls, referrals by present employees, hiring ³walk ins´,
- private employment agencies can be a good source of clerical and technical employees
- executive search firms specialize in locating top management talent
- job fair survive despite of internet career postings and the proliferation of employment agencies
and headhunters
Internships: a short term paid position where students focus on a specific project
Selecting human resources
- intent of selection process is to gather info from applicants that will predict their job success
and then to hire the candidates likely to be the most successful
Validation: the process of determining the predictive value of info
Application forms
- candidates fill out an application form: efficient method of gathering info about the applicants
previous work history, educational background, and other job related demographic area
- tests of ability, skill, aptitude, or knowledge related to a particular job are usually the best
predictor or job success, although tests of general intelligence or personality are occasionally
useful as well
- popular selection device but sometimes a poor predictor of job success cyz biases that are
inherent in the way ppl perceive and judge others on first meetings affect subsequent evaluations
- interview validity can be improved by training interviewers to be aware of potential biases and
by increasing the structure of interviews
- ³curve ball questions´ : questions job applicants are not expecting
Other techniques
- varies depending on job
- lie detectors (polygrahs) are illegal now + drugs
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