HUMAN RESOURCE MANAGEMENT
Moving from thinking about people as consumers to thinking about people as employees.
Many common threads:
o Contributions from social science disciplines.
o Environmental issues and the open systems perspective.
CHAPTER 1 CHALLENGES OF HUMAN RESOURCE MANAGEMENT
o HR processes and activities
o Discussion of line and staff
Human resource management: Integrated set of processes, programs, and systems in an
organization that focuses on the effective deployment and development of its employees.
Deployment: Putting things in the right place.
HR processes and activities:
o Organizational, work, and job design
o Recruitment and selection
o Training and development
o Performance management
o Compensation (pay and benefits)
o Occupational health and safety
o Employee and labor relations
Current business challenges:
o Global economy
Globalization: Moving local or regional businesses into the global
o Survival of firms and business sectors
Downsizing: The planned elimination of jobs.
Outsourcing: Contracting outside the organization for work that was
formerly done by internal employees. The small business owner saves
money, time, and resources by outsourcing tasks such as accounting
o Technology and quality
Human resources information system (HRIS): A technology system
that provides data for purposes of control and decision making. IT influences HRM in three ways:
1. Operational impact
2. Enhancing services to line managers and employees
Six Sigma: A process used to translate customer needs into a set of
optimal tasks that are performed in concert with one another.
ISO 9000: Worldwide quality standards program.
Benchmarking: Finding the best practices in other organizations that
can be brought into a company to enhance performance.
o Environment and climate change
o Human capital and talent management
Human capital: The individuals knowledge, skills, and abilities that
have economic value to an organization.
Core competencies: A combination of knowledge, skills, and
characteristics needed to effectively perform a role in an organization.
Talent management: Leveraging competencies to achieve high
o Demographic and employee concerns
Two types of corporate strategy:
o Restructuring strategy
o Growth strategy
Corporate strategy is NOT business strategy. Corporate strategy asks: should we
be in business? What business should we be in? Business strategy asks: How should we
Strategic human resources management: Identifying key HR processes and linking those
to the overall business strategy.
CHAPTER 4 - HUMAN RESOURCE PLANNING, RECRUITMENT, AND
Human resource planning: Process that the people required to run the company are being
used as effectively as possible, where and when they are needed, in order to accomplish
the organizations goals. Also known as manpower planning or employment planning.
Planning: Elements effective use of labour force, right place and right time, and to
help the organization achieve its goals.
o What are the companys goals?
o What HR-related actions do we need to take to achieve these goals?
Why is planning important?
o Why seek women and immigrants to move into the drilling industry ?
o What is succession planning, and why does a company like Sorin care about it so much?
o How does Statcan date help HR planners?
HR planning approaches:
o Trend analysis: Quantitative approach to forecasting labor demand on an
o Management forecasts: Opinions and judgments of supervisors or managers
and others that are knowledgeable about the organizations future employment
o Staffing table: Graphic representation of organizational jobs along with the
number of employees currently occupying those jobs and future employment
needs (a snapshot of the organization right now in terms of number of people
and work they perform).
o Markov analysis: Method for tracking the pattern of employee movements
through various jobs (like a staffing table over time, dynamic, how
memberships and roles change over time).
o Skills inventory: Information about the education, experiences, skills, etc. of
HR planning steps:
1. Forecast demand for labor
2. Determine supply of labor external and internal
3. Identify the gap between demand and supply
4. Develop action plans to eliminate the gap
The outcome of HR planning is to achieve a usable balance between the demand for and
supply of employees.
Dealing with an OVERSUPPLY:
o Attrition (natural departures of employees)
o Leave of absence without pay
o Job sharing
o Reduced hours
Dealing with a SHORTAGE:
o Hire full time/part time
o Lease employees
o Use overtime
o Retention strategies
Recruitment: The process of locating and encouraging potential applicants to apply for
The recruitment process: o Planning for staffing needs
o Identification of current or future job openings
o Getting individual job information (job description and job specifications)
o Determining recruitment method (internal or external)
o Creating pool of potential qualified applicants
o Capitalize on investments made in current employees
o Boosts morale
o Transferring = reduce or eliminate training and orientation costs
o Multiple sources (HRIS, succession planning, internal job posting)
o Problems? Employee cloning excessive reliance on internal sources, no
new ideas, etc.
Internal job posting: Method of communicating information about job openings.
o New bundles of skills and experiences
o Disadvantage: lack of solid info. on persons performance on the job
o Non-trivial costs related to search and on-boarding
o Costly! Training, time, advertising
o Effect of market conditions
o Multiple sources (ads, internet, employment agencies, educational institutions,
Labor market: Area from which applicants are recruited.
Recruitment is done through
o Employment agencies
o Educational institutions
o Open houses and job fairs
o Employee referrals
o Unsolicited applications and rsums
o Professional organizations
o Recruitment for diversity
Selection: The process of choosing individuals who have relevant qualifications and who
will best perform on the job to fill existing or projected job openings.
Steps in the selection process:
1. Completion of the application form or submission of rsum