MGM101- chapter 9- Human resource management
human resource management (HRM): The process of determining human resource needs and
then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling
employees to achieve organizational goals.
One reason why human resource management is receiving increased attention is the major shift
from traditional manufacturing industries to service and high-tech manufacturing industries that
require highly technical job skills. This shift means that many workers must be retrained for new,
more challenging jobs.
Job analysis: A study of what is done by employees who hold various job titles.
Job description: A summary of the objectives of a job, the type of work to be done, the
responsibilities and duties, the working conditions, and the relationship of the job to other
Job specifications: A written summary of the minimum qualifications required of workers to do a
All management, including human resource management, begins with planning. Five steps are
involved in the human resources planning process:
1. Preparing a human resources inventory of the organization’s employees. This inventory should
include ages, names, education (e.g., languages spoken), capabilities, training, specialized skills,
and other information pertinent to the specific organization. Such information reveals whether
the labour force is technically up to date, thoroughly trained, and so forth.
2. Preparing a job analysis. A job analysis is a study of what is done by employees who hold
various job titles. Such analyses are necessary to recruit and train employees with the necessary
skills to do the job.
3. Assessing future human resources demand. Because technology changes rapidly, training
programs must be started long before the need is apparent. Human resources managers who are
proactive—that is, who anticipate the organization’s requirements identified in the forecasting
process—ensure that trained people are available when needed.
4.Assessing future human resources supply. The labour force is constantly shifting: getting older,
becoming more technically oriented, attracting more women, and so forth. There are likely to be
increased shortages of some workers in the future (e.g., computer and robotic repair workers)
and an oversupply of others (e.g., assembly line workers).
5. Establishing a strategic plan. The plan must address recruitment, selection, training and
development, evaluation, compensation, scheduling, and career management for the labour force.
Recruitment: The set of activities used to obtain a sufficient number of the right people at the
Recruiting has become very difficult, for several reasons:
•Some organizations have policies that demand promotions from within, operate under union contracts, or offer low wages, which makes recruiting and keeping employees difficult or subject
to outside influence and restrictions.
•There are legal guidelines that surround hiring practices.
•The emphasis on corporate culture, teamwork, and participative management makes it important
to hire people who not only are skilled but also fit in with the culture and leadership style of the
•Sometimes people with the necessary skills are not available; in this case, workers must be hired
and then trained internally
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.
A typical selection process