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Chapter 8 โ€“ 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 โ€“ 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 โ€“
costly in terms of unemployment compensation payments, training expenses, and
morale.
Human Resource Planning โ€“
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 โ€“ 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 โ€“ the number
and type of employees who will be in the firm at some future date.
๎€Forecasting external supply โ€“ 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 โ€“ At higher levels of the organization, managers make plans for
specific people and position. Common use โ€œreplacement chartโ€ which list each important
managerial position who occupies it, how long will he or she stay before moving, and whoโ€™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.
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Skill inventories: Facilitate both planning and identifying people for transfer or
promotion some organizations have employee systems info system or skill inventories. Itโ€™s a
computerized system that contains information on each employeeโ€™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 and layoff.
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 recruiting.
๎€Internal Recruiting โ€“ considering present employees as candidates for opening.
Promotion can help build morale and keep high quality employees to stay in the
companies.
๎€External Recruiting โ€“ 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 โ€œwalk-insโ€ or โ€œgate โ€“ hiringโ€.
๎€Internships โ€“ One method of external recruiting involves offering college and
university student internships. Itโ€™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
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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 โ€“ 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 โ€“ 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 score.
๎€Interviews โ€“ 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 โ€œcurveballโ€ questions that a
applicant would never expect to be asked.
๎€Other techniques โ€“ Includes physical examination, job related examination so
theyโ€™re best suited for the job.
Developing Human Resources:
๎€Most employees now need further training so that theyโ€™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 โ€“ is the process of introducing new employees to the companyโ€™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 theyโ€™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.
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Document Summary

Chapter 8 foundation of human resources management: Human resource management (hr m ) is the set of organization activities directed at attracting developing and maintaining an effective workforce. poor human resource planning can result in spurts of hiring followed by layoffs costly in terms of unemployment compensation payments, training expenses, and morale. 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. 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.

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