The Foundations of Human Resource Management
Human Resource Management: Set of organizational activities directed at attracting,
developing and maintaining an effective workforce.
Strategic Importance of HRM:
Human resources are critical for effective organizational functioning. Effectiveness of HR
functions have substantial impact on the firms bottom-line performance.
Human Resource Planning:
1. Job Analysis
A detailed study of the specific duties in a particular job and the human
qualities required for that job.
a) Job Description:
Lists the duties of a job, its working conditions, the tools, materials and
b) Job Specification
Lists the skills, abilities and other credentials needed to do the job.
2. Forecasting HR Demand and Supply
Managers assess trends in past HR usage, future organizational plans and
general economic trends. This helps to predict HR needs.
a) Forecasting Internal Supply:
The number and type of employees who will be in the firm at some
b) Forecasting External Supply
The number and type of people who will be available for hiring from
the labor market.
c) Replacement Charts
An HR technique that lists each important managerial position, who
occupies it, how long s/he will stay in it before moving on, and who (by
name) is now qualified or soon will be qualified to move into it. d) Skills Inventories (Employee Information Systems)
Computerized systems that contain information on each employees
education, skills, work experience and career aspirations. For external
supply, companies must consult government reports and figures
supplied by universities.
3. Matching HR Supply and Demand
After comparing future demand and internal supply, managers can make plans
to manage predicted shortfalls or overstaffing. If theres a shortfall, new
employees can be hired, present employees can be kept and moved to
understaffed areas, retirement can be prolonged, etc.
If there is a need to hire, forecasts help managers to plan how to recruit.
Temporary workers can also help staffing problems as they are flexible. If
overstaffing is expected, the managers can tranfer employees, not replace
individuals who quit, encourage early retirement or fire employees.
Staffing the Organization
Recruiting Human Resources
Recruiting: The process of attracting qualified persons to apply for the jobs that
1. Internal Recruiting
Considering present employees as candidates for openings. Promotions.
2. External Recruiting
Attracting people outside the organization to apply for jobs. This can be done
through NEWSPAPER, INTERNET ADVERTISING, CAMPUS
INTERVIEWS, EMPLOYMENT AGENCIES, EXECUTIVE SEARCH
FIRMS, UNION HIRING HALS, REFERRALS BY PRESENT
EMPLOYEES, HIRING WALK-INS, JOB FAIRS, and INTERNSHIPS. Selecting Human Resources
Validation: The process of determining the predictive value of information.
Employers will validate and select the most potentially successful applicants.
1. Application Forms
This is used to gather background information about the applicant in order to
understand the kind of person/employee s/he will be.
All tests used on applicants must be job related and a valid predictor of
performance. The results cannot be used to discriminate.
a) Assessment Center
A series of exercises in which candidates perform realistic management
tasks under the watchful eye of expert appraisers.
b) Video Assessment
Potential hired are shown videos of realistic work situations and are
then asked to choose a course of action to deal with the situation.
Sometimes a poor predictor of job success since biases affect subsequent
evaluation. The interview validity can be improved by training interviewers to
be aware of the biases and ask a set of ready-made questions. Interviewers can
also ask curve-ball questions to see how well applicants think on the spot.
Behavior-based Interviewing: An approach to improving interview validity by
asking questions which focus the interview much more on behavior than on
what a person says.
4. Other Techniques
Lie detectors (although now illegal in many places)