Chapter 9-Managing Human Resources
Human Resources-set of organizational activities directed at attracting, developing, and
maintaining an effective workplace.
The Strategic Importance of HRM
Human resources are critical for effective organizational functioning.
Importance has grown dramatically in the last two decades.
New importance stems from increased legal complexities, the recognition that human
resources are a valuable means for improving productivity, and the awareness today of
the costs associated with poor human resource management.
Human Resource executives of most large businesses is a vice president directly
accountable to the CEO.
Human Resource Planning
HR planning involves job analysis and forecasting the demand for and supply of labour.
Job Analysis-is a systematic analysis of jobs within a organization.
Made into 2 parts: Job Description & Job Specification
Job Description-lists the duties of a job, its working conditions, and the tools, materials
and equipment used to perform it.
Job Specification-lists the skills, abilities, and other credentials needed to do the job.
Forecasting HR Demand and Supply
Managers fully understand the jobs to be performed within an organization, they can start
planning for the organization’s future HR needs.
Forecasting the supply of labour involves two tasks:
i. Forecasting internal supply-the number and type of employees who will be in the
firm at some future date.
ii. Forecasting External Supply-the number and type of employees who will be
available for hiring from the labour market at large.
The simplest approach merely adjusts present staffing levels for anticipated turnover and
Replacement Charts-an HR technique that lists each important managerial position who
occupies it, how long he or she will probably stay in it before moving on, and who (by
name) is now qualified or soon will be qualified to move into it.
Managers can make plans to manage predicted shortfalls or overstaffing.
If organization needs to hire, the external labor-supply forecast helps managers plan how
to recruit according to whether the type of person needed is readily available or scarce in
the labour market. Main options are transferring the extra employees, not replacing individuals who quit,
encouraging early retirement, and laying people off.
Staffing the Organization
Recruiting-The phrase in the staffing of a company in which the firm seeks to develop a
pool interested, qualified applicants for a position.
Internal Recruiting-Considering present employees as candidates for job openings.
For higher level positions, managers may be asked to recommend individuals who
should be considered.
External Recruiting-involves attracting people outside the organization to apply for
Private employment agencies can be a good source of clerical and technical
employees, and executive search firms specialize in locating top-management
Job fairs are also cheaper than posting jobs with an agency or head-hunter.
Internship-short term paid position where students focus on a specific object.
Selecting Human Resources
The intent of the selection process is to gather information from applicants that will
predict their job success and then to hire the candidates likely to be most successful.
Validation-The process of determining the predictive value of information.
The first step in selection is usually asking the candidate to fill out an application form.
Application forms is an efficient method of gathering information about the applications
previous work history, educational background, and other job-related demographic data.
Tests of ability, skill, aptitude, or knowledge relevant to a particular job are usually the
best predictors of job success, although tests of general intelligence or personality are
occasionally useful as well.
Type of tests that is used, it must be job-related (it must not serve as a basis for
discriminating against anyone for reasons unrelated to the job).
Must be a valid predictor of performance (it must provide evidence that people who score
well on it are more likely to perform well in the job than are people who score poorly on
Interviews is a population selection device, but sometimes is a poor predictor of job
success because biases that are inherent in the way people perceive and judge others on
first meeting affect subsequent evaluations.
Interview validity can be improved by training interviewers to be aware of potential
biases and by increasing the structure of the interview.
Interviewers can also increase interview validity by asking “curveball” questions.
Developing Human Resources
Other selection process begins with orientation and then proceeds to the assessment of
training and development needs. New Employee Orientation
Orientation-the process of introducing new employees to the company’s policies and
programs, personnel with whom they will interact, and the nature of the job.
Some organizations also find it appropriate to include as a part of their orientation a
general overview of and introduction to the business itself.
Organizations with strong corporate cultures are especially likely to include such
information because it is a quick and efficient way to provide information about the
firm’s culture to new hires.
Training and Development
Most organizations also find it effective to continue training and development on a
The starting point in assessing training and development needs is conducting a needs
analysis-determining the organization’s true needs and the training programs necessary to
Work-Based Program-A technique that tries training and development activities
directly to task performance.
On the Job Training-Development programs which employees gain new skills while
performing them at work.
Systematic Job Rotations and Transfers-Technique in which an employee is
systemically rotated or transferred from one job to another.
Instructional Based Programs
Instructional Based Programs-Training workers through the use of classroom-based
programs such as the lecture approach. (eg: universities, colleges)
Off-the-job Training-development programs in which employees learn new skills at a
location away from the normal work site.
Other type of instructional based program is the computer assisted instruction.
Advantage of that method is that it allows self-paced learning and immediate feedback.
Evaluating Employee Performance
Performance Appraisal-formal program for evaluating how well an employee is
performing the job but also determining how effective they are in re