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Chapter 10-11

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Rita Cossa

CHAPTER TEN – HUMAN RESOURCE MANAGEMENT: FINDING AND KEEPING THE BEST EMPLOYEES Working with People is Just the Beginning  Human resource management (HRM): process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating compensating and scheduling employees to achieve organizational goals  Link between what happens in organizations and prosperity of community Developing the Ultimate Resource  HRM more important because of shift from traditional manufacturing industries to service and high-tech manufacturing industries  Many workers must be retrained for new/more challenging jobs  Employees are the “ultimate resource”  Qualified employees are scarcer so recruiting is more difficult  HR departments’ roles will be involved in providing strategic input  Less time/energy will be spent on HR administration  HR in danger of extinction if continues to only rely on recruiting, employee relations, compensation and training  Might become most critical function in future  Will be responsible for dealing with all people (most critical resource) The Human Resources Challenge  Survey: Creating People Advantage: How to Address HR Challenges Worldwide Through 2015  Number one HR challenge worldwide: managing talent  Executives in Canada’s challenges: o Managing demographics o Improving leadership development o Managing work-life balance o Transforming HR into strategic partner  Report suggested five steps to overcome challenges: 1. Understand external environment 2. Understand internal environment 3. Select most critical HR topics and set priorities 4. Initiate projects with dedicated teams 5. Secure support from top management  HR professionals must: o Ensure everything has a positive business impact o Promote constructive change by building on strengths of organization o Build people systems that differentiate organization in the marketplace so it can be self-managed Determining Your Human Resource Needs Human resource planning process: 1. Preparing HR inventory of employees o Ages, names, education, capabilities, training, specialized skills 2. Preparing a job analysis o Job analysis: study of what is done by employees with various job titles (needed for recruitment and training) o Job description: summary of objective of a job, type of work to be done, responsibilities and duties, working conditions, relationship of job to other functions o Job specifications: written summary of minimum qualifications required of workers to do a particular job o Job descriptions are about job; job specifications are about person 3. Assessing future HR demand o Training programs must be started before people are needed o HR ensure trained people available when needed 4. Assessing future HR supply o Labour force constantly changing o Going to be shortage of some workers and surplus of others 5. Establishing strategic plan o Plan must address: recruitment, selection, training, development, evaluation, compensation, scheduling, career management o Must have upper management support for implementation  Some companies use databases to match employees skills with job needed Recruiting Employees From a Diverse Population  Recruitment: set of activities used to obtain sufficient number of right people at right time  Why recruiting is difficult: 1. Difficult to recruit/keep employees: o Policies that demand promotions from within o Union contracts o Low wages 2. Legal guidelines: o Could complain if employer would not hire woman/visible minority regardless of competency 3. People must fit in with culture and leadership style of organization 4. People with necessary skills not always available  HR managers turn to either internal or external resources for help  Internal: employees within the firm that can be promoted or employees who recommend others to hire (less expensive and maintains employee morale)  External: advertisements, employment agencies, school placement offices Selecting Employees Who Will be Productive  Selection: process of gathering info and deciding who should be hired for best interests of individual and organization  Selecting and training employees are expensive processes  Selection process: 1. Obtaining complete application forms o Legal guidelines limit questions that can be on application form o Discover educational background, work experience, career objectives 2. Conducting initial and follow-up interviews o HR member screens applicants in first interview o Manager who will supervise employee interviews if pass first 3. Giving employment tests o Used to measure basic competencies in specific job skills o Also to evaluate personality and interests 4. Confirming background information o Look at criminal records, driving records, credit history o Verify work experience and educational credentials o Also look at social networking sites 5. Establishing trial periods o Hire employee conditionally to prove themselves Hiring Contingent Workers  Contingent workers: workers who do not have regular, full-time employment  Ex. part-time workers, temporary workers, seasonal workers, contractors, interns, coop students  Good for companies that do not need employees all the time  Contingent workers do not get same benefits (ex. no health insurance, vacation time or pension)  Also paid less than permanent workers  Temporary workers work harder if trying to secure permanent position  Sometimes temping can be more secure than full-time employment Training and Developing Employees for Optimum Performance  Spending money on quality training program leads to higher retention rates, increased productivity, greater job satisfaction  Training and development: o All attempts to improve productivity by increasing employee’s ability to perform o Training focuses on short-term skills o Development focuses on long-term abilities  T&D programs have three steps: (1)Determine training needs by assessing needs of organization and skills of employees (2)Design training activities to meet needs (3)Evaluate effectiveness of training  Employee orientation: introduces new employees into organization; to fellow employees; to supervisors; to policies, objectives, values, practices  On-the-job training: employee immediately begins tasks and learns by doing or imitating others  More demanding jobs require more intense training  Web has allowed workers to be trained online at any time of the day  Apprentice programs: learner works alongside experienced employee to master skills and procedure of a craft  Off-the-job training: internal/external programs away from the workplace to develop skills or foster personal development (ex. MBA)  Online training: employees attend classes over the internet  Vestibule training: o Done in schools where employees are taught on equipment similar to that used in the job o Can learn safety procedures before going into actual job  Job simulation: o Use equipment that duplicates job conditions/tasks so skills can be learned before attempting them on the job o For jobs where cost of real-world mistake is huge o Ex. Pilots, astronauts, ship captains Management Development  Management development: o Process of training/educating employees to become good managers o Monitor progress of managerial skills over time  Management training programs include: o On-the-job coaching (senior manager will assist lower-level manager) o Understudy positions (employees work as assistants to managers until they can assume position themselves) o Job rotation (managers given assignments in variety of departments) o Off-the-job courses and training (managers go to schools/seminars to improve skills) Empowering Workers  Some managers empowering employees to make decisions on their own instead of giving specific directions  Give them: o Authority: to make decision without consulting manager o Responsibility: to accept consequences of their actions  Allow to respond to customer requests faster  Enabling: giving workers education/tools needed to make decisions  Enabling is key to success of empowerment Networking  Networking: o Process of establishing/maintaining contacts with key managers in one’s own organization and in other organizations o Using contacts to weave strong relationships that serve as informal development systems  Mentor: experienced employee who supervises, coaches, guides lower-level employees by introducing to right people and being organizational sponsor  Can network at school with instructors, classmates, business people Diversity in Managemen
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