Chapter 10 Notes
WORKING WITH PEOPLE IS JUST THE BEGINNING
Human Resource Management (HRM): is the process of determining human
resources need and then recruiting, selecting, developing, motivating, evaluating,
compensating and scheduling employees to achiever organizational goals.
SEE HUMAN RESOURCE MANAGEMENT FIGURE ON PAGE 258
DEVELOPING THE ULTIMATE RESOURCE
Employees are the “ultimate resource”
People develop the ideas that eventually become the products that satisfy
consumers’ wants and needs
Qualified employees are scarcer today and that makes recruiting more difficult
David Weiss, a partner of GSW consultant, states that as companies are beginning
to shed outdated processes and unprofitable lines of business, HR is in danger of
extinction if it continues to rely solely on recruiting, employee relations, and
compensation and training.
THE HUMAN RESOURCES CHALLENGE
The ability of businesses to compete in international markets depends on new
products and services, and new levels of productivity (people with good ideas)
Managing talent was the number one human resources challenge worldwide and
there were predictions
In order to create people advantage and overcome some of the human resource
challenges identified, the report suggest five major steps to be taken by companies:
1. Understand the external environment
2. Understand the internal environment
3. Select the most critical human resource topics and set priorities
4. Initiate projects with dedicated teams
5. Secure support from top management
Markets need to be self managed by employers who are willing to accept being
independent in their roles throughout the company
DETERMING YOUR HUMAN RESOURCES NEEDS
FIVE STEPS INVOLVED IN THE HUMAN RESOURCES PLANNING PROCCESS:
1. Prepare a human resources inventory of the organizations employees:
this inventory should include ages, names and education, capabilities, etc.
2. Prepare a job analysis. Job Analysis: a study of what is done by employees who
hold various job titles. Job Description: specifies the objectives of the job, the type
of work to be done, the responsibilities and duties, the working conditions, and the
relationship of the job to other functions. Job Specifications: are a written summary of the minimum qualifications (e.g., education and skills) required of
workers to do a particular job.
Job descriptions are statements about the job, whereas job specifications are
statements about the person who does the job
3. Assessing future human resources demand: because technology changes rapidly,
training programs must be started long before the need is apparent.
4. Assessing future human resources supply: the labour force is constantly shifting:
getting older, becoming more technically oriented, attracting more women, and so
5. Establishing a strategic plan: the plan must address recruitment, selection,
training and development, evaluation, compensation, etc.
RECRUITMENT EMPLOYEES FROM A DIVERSE POPULATION
Recruitment: is the set of activities used to obtain a sufficient number of the right
people at the right time.
The result: a pool of qualified applicants
Recruiting is very difficult, for several reasons:
1. Some organizations have policies that demand promotions
2. Legality (i.e. not hiring a woman)
3. Emphasis on corporate culture to hire people who not only are skilled but also fit
in the culture and leadership of the organization
4. People with necessary skills are not available, which makes training more needed
for unskilled workers
Since recruiting is difficult, human resources turn to many sources for assistance
Internal sources: include employees who are already within the firm and using
employees to recommend who to hire (inexpensive way to recruit someone)
SELECTING EMPLOYEES WHO WILL BE PRODUCTIVE
Selection: the process of gathering information and deciding who should be hired,
under legal guidelines for the best interests of the individual and the organization
Selection is expensive because it involves interview time, medical exams, training
costs, unproductive time spent learning the job, moving expenses, etc.
A typical selection process involves 5 steps:
1. OBTAINING COMPLETE APPLICATION FORMS: legal guidelines limit the kinds of
questions that may appear on an application form. Forms help the employer
discover the applicants educational background, past work experience, career
objectives, and other qualifications. 2. CONDUCTING INITIAL AND FOLLOW UP INTERVIEWS: if the interviewer
considers the applicant a potential employee, the manager who will supervise the
new employee interviews the applicant as well. Questions are delicate in this
process, for example, asking an applicant about his/her family background, children,
and family planning are prohibited.
3. GIVING EMPLOYMENT TESTS: organizations use tests to measure basic
competencies in specific job skills (e.g. word processing) to help evaluate applicants
personalities and interests.
4. CONFIRMING BACKGROUND INFORMATION: most organizations now confirm a
candidates work record, school record, credit history, and references more carefully
than they have in the past. Background checks help an employer identify which
candidates are most likely to succeed in a given position.
5. ESTABLISHING TRIAL (PROBITIONARY) PERIODS: often an organization will hire
an employee conditionally, this enables the person to prove his/her worth to the
The selection process is long and difficult but it worth the effort to select new
employees carefully because of the high costs of replacing workers
HIRING CONTINGENT WORKERS
Contingent Workers: workers who do not have regular, full time employment. (i.e.
part time workers -30 hours, temporary workers, seasonal workers, independent
contractors, interns, and co-op students)
Companies may also look to hire contingent workers when full-time employees
are on some type of leave (such as maternity leave), when there is a peak demand
for labour (basically when there is a high need for workers)
Contingent workers receive few benefits; they are rarely offered health insurance,
vacation time, or private pensions.
Many people find that temporary workers offer them a lot more flexibility
TRAINING AND DEVELOPING EMPLOYEES FOR OPTIMUM PERFORMANCE
Employers find that spending money on training is money usually well spent.
A quality training program could lead to higher retention rates, increased
productivity, and greater job satisfaction among employees
Training and Development: include all attempts to improve productivity by
increasing an employee’s ability to perform.
Training focuses on short-term skills, whereas development focuses on long term
TRAINING AND DEVELOPMENT INVOLVE THREE STEPS:
1. Assessing the needs of the organization and the skills of the employees to determine training needs
2. Designing training activities to meet the identified needs
3. Evaluating the effectiveness of the training
Employee Orientation: is the activity that initiates new employees to the
organization, to fellow employees, to their immediate supervisors, and to the
policies, practices, values, and objectives of the firm
On-the-job training: the most fundamental type of training, the employee being
trained on the job immediately begins his or her tasks and learns by doing, or
watches others while and then imitates, right at the workplace (shadowing)
Apprentice programs: involve a period during which a learner works alongside
an experienced employee to master the skills and procedures of a craft (i.e.
classroom training, bricklaying, plumbing, etc.)
Off-the-job training: occurs away from the workplace and consist of internal or
external programs to develop any of a variety of skills or to foster personal
Online training: offers an example of how technology is improving the efficiency
of many off-the-job training programs. Employees “attend” classes via the internet.
Vestibule training: (near-the-job training) is done in classrooms where
employees are taught on equipment similar to that used on the job. (i.e. computer
and robotics training)
Job simulation: the use of equipment that duplicates job conditions and tasks so
that trainees can learn skills before attempting them on the job. (this is mainly used
by astronauts, pilots, etc.)
Management development: the process of training and educating employees to
become good managers and then monitoring the progress of their managerial skills
Managers MUST have good communication skills
Most management training programs also include several of the following:
1. On-the-job coaching: a senior manager will assist a lower level manager by
teaching him or her needed skills and general providing direction, advice and
2. Understudy positions: job titles such as undersecretary and assistant are part of a
relatively successful way of developing managers.
3. Job rotation: able to learn about different functions of the organization, managers are often given assignments in different departments
4. Off-the-job courses and training: managers periodically go to schools or seminars
for a week or more to hone their technical and human relation skills
Directing: managers telling workers what to do to meet the goals and objectives of
In traditional organizations, directing involves giving assignments, explaining
routines, clarifying policies, and providing feedback on performance
Progressive managers give specific instructions to employees
Empowerment means giving employees the authority (the right to make a
decision without consulting the manager) and the responsibility (the requirement
to accept the consequences of one’s actions) to respond quickly to customer
Enabling: the term used to describe giving workers the education and tools they
need to make decisions. (Enabling is the key success to empowerment)
Networking: the process of establishing and maintain contacts with key managers
in one’s own organization and in other organization and using those contacts to
weave strong relationships that serve as informal development systems (basically
getting your name and building a good reputation for yourself so that jobs can come
to you more easily)
Mentor: an experienced employee who supervises, coaches, and guides lower-level
employees by introducing them to the right people and being their original sponsor.
“Networking works only when you have something to say that’s of interest”
Connections help you succeed
DIVERSITY IN MANAGEMENT DEVELOPMENT
more older manag