Chapter 9 Human Resources
• they are deeply involved in planning, record keeping, and other administrative duties.
• it is the process of determining human resources needs and then recruiting, selecting, developing,
motivating, evaluating, compensating and scheduling employees to achieve organization goals.
• people are the ultimate resource. THey are the ones to develop ideas that eventually become the
products that satisfy consumer wants and needs.
• they are not expected to be involved in providing strategic input and less time and energy will be spent
on HR administration. HR is in danger of extinction if it continnues to rely solely on recruiting, employee
relations, and compensation and training. HR should instead streamline its core responsibilities and
align its efforts with the company's vision and customer needs.
• in the future, HR may become the most critical function in that it will be responsible for dealing with all
aspects of a business's most critical resource - people. THis function is incredibly important, that it
becomes the function of the managers as well.
• changes in the business environment that have had the most dramatic impact on the workings of the
free enterprise system are the changes in the labour force. The ability of businesses to compete in
internation markets depends on new products/services, and new levels of productivity. In other owrds
people wit good ideas.
• executives also identified other critical challenges: managing demographics (aging workforce),
improving leadership development, managing work-life balance, and transforming HR into a strategic
• To create people advantage and overcome some of the HR challenges ^ there are five steps to follow:
understand the external environment, understand the internal environment, select the most critical HR
topics and set priorities, initiate projects with dedicated teams, secure support from top management.
• To identify what HR needs:
o Prepare an HR inventory of the organization's employees. The names, ages, education,
capabilities, raining and skills of the employees
o prepare a job analysis: provide a study of what is done by employees who hold the job title. This
needs a job description and job specification (a summary of min qualification)
o assessing future HR demand: because technology changes rapidly, training programs must be
started before the need is apparent.
o assessing future human resources supply: labour force is constantly shifting: getting older and
becoming technically oriented. There are likely to be increased shortages of some workers in
the future (computer and robotic repair) and an oversupply of others (assembly line workers)
o establishing a strategic plan: The plan must address recruitment, selection, training and
development, evaluation, compensation, scheduling and career management for the labour
• recruitment is the set of activities used to obtain a sufficient number of the right people at the right time. • recruitment gas become very difficult because some organizations have policies that offer low wages,
which makes recruiting and keeping employees difficult; there are legal guidelines that surround hiring
practices. Like the Canadian Human Rights Acts. You need to rovide each employee with equal
opportunities; 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 organization; sometimes people with the necessary skills are not available, in this case workers
must be hired and then trained internally.
• internal sources are employees who are already within the firm and can recommend others to hire.
Using internal sources is less expensive that recruiting outside the compnay. The greatest adv of hiring
from within is that it helps maintain employee morale.
• selection is 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 selection process takes 5 steps:
o obtaining complete application forms,
o conduig initial and follow-up interviews
o giving employee tests
o confirming background information
o establishing trial periods - often an organization will hire an employee conditionally. After a
specific period of time, the firm may permanently hire the employee or fire them
• The process helps ensure that new employees meet the requirements in all relevant areas, in
communication skills, education, technical skills, experience, personality, and health.
• contingent workers are defined as workers who don't have regular, full time employment. A need for
employees is the most common reason for hiring contingent workers. Companies may also look to hire
contingent workers when full-time employees are on some type of leave (maternity leave), when there
is a peak demand for labour or when quich service to customers is a priority. They receive few enefits
and are not permanent. They have more flecxibility
• training and development include all attempts to improve productivity by increasing an employees
ability to perform.
• training and development have three steps: assessing the needs of the organization and the skills of
the employees to etermine training needs, designing training activities to meet the identified needs,
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, practicees, values, and objectives of the
• on the job training is 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 for a while and then imitates
them right at the workplace. • apprentice programs involve a period during which a learner works alongside an experienced employee
to master the skills and procedures of a craft.
• off the job training: ocurs away from the workplace and consists of internal or external programs to
develop any of a variety of skills or to foster personal development. Training is becoming more
sophisticated as jobs become more sophisticated.
• Online training offeres an example of how tech is improving the efficiency of many off the job training
programs. In such training, employees attend classes via the internet
• vestibule training is done in classrooms where employees are taught on equipment similar to that used
on the job.
• job simulation is the use of equipment that duplicates job conditions and tasks so that trainees can
learn sills before attempting them on the job.
• management development is the process of training and educating eplotees to become good managers
and then monitoring the progress of their managerial skills over time. The training programs include
several of the following:
o on the job coaching, where a senior manager will assist a lower level manager by teaching him
or her needed skills and enerally providing direction, advice, and helpfl feedback.
o understudy positions: job titles such