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Chapter 9

Chapter 9 Notes


Department
Management (MGT)
Course Code
MGTA01H3
Professor
Chris Bovaird
Chapter
9

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Chapter 9 Managing Human Resources Notes
The Foundations of Human Resource Management
x human resource management (HRM) : set of organizational activities directed at attracting, developing, and maintaining an
effective workforce; HRM takes place within a complex and ever-changing environmental context and is increasingly being
recognized for its strategic importance
The Strategic Importance of HRM
x HRM has new importance, which 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 HRM
Human Resource Planning
Job Analysis
x job analysis : a detailed study of the specific duties in a particular job and the human qualities required for that job
x a job analysis is made up of the job description and the job specification
x job description : the objectives, responsibilities, and key tasks of a job; the conditions under which it will be done; its
relationship to other positions; and the skills needed to perform it
x job specification : the specific skills, education, and experience needed to perform a job
Forecasting HR Demand and Supply
x forecasting the supply of labour involves two tasks:
¾ forecasting internal supplythe number and type of employees who will be in the firm at some future date
¾ forecasting external supplythe number and type of people who will be available for hiring from the labour market at large
x replacement chart : 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
x employee information systems (skills inventories) : computerized systems that contain information on each employee’s
education, skills, work experience, and career aspirations
Matching HR Supply and Demand
x after comparing future demand and internal supply, managers can make plans to manage predicted shortfalls or overstaffing
x if shortfall, new employees can be hired, present employees can be refrained and transferred into understaffed areas, individuals
approaching retirement can be convinced to stay on, or labour-saving or productivity-enhancing systems can be installed
x if overstaffing is expected to be a problem, the main options are transferring the extra employees, not replacing individuals who
quit, encouraging early retirement, and laying people off
Staffing the Organization
Recruiting Human Resources
x recruiting : phase in staffing of company in which firm seeks to develop a pool of interested, qualified applicants for a position
Internal Recruiting
x internal recruiting : considering present employees as candidates for job openings
External Recruiting
x external recruiting : attracting people outside the organization to apply for jobs
x external recruiting methods include advertising, campus interviews, employment agencies or executive search firms, union hiring
halls, referrals by present employees, and hiring “walk-ins” or “gate-hires” (people who show up without being solicited)
x internship : a short-term paid position where students focus on a specific project
Selecting Human Resources
x validation : the process of determining the predictive value of information
Application Forms
x the first step in selection is usually asking the candidate to fill out an application form
x an application form is an efficient method of gathering information about the applicant’s previous work history, educational
background, and other job-related demographic data
x application form data are generally used informally to decide whether a candidate merits further evaluation, and interviewers use
application forms to familiarize themselves with candidates before interviewing them
Tests
x 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
x regardless of the type of test that is used, it must be job-related and it must be a valid predictor of performance
Interviews
x the interview is a popular selection device, but it is sometimes 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
x validity can be improved by training interviewers to be aware of potential biases and by increasing structure of interview
x in a structured interview, questions are written in advance and all interviewers follow the same question list with each candidate
x for interviewing managerial or professional candidates, although question areas and information-gathering objectives are still
planned in advance, specific questions may vary with the candidates’ backgrounds
x interviewers can also increase interview validity by asking “curveball” questions—that is, questions that job applicants would
never expect to be asked—to see how well they think on their feet
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