Textbook Notes (363,253)
Canada (158,278)
RSM100Y1 (431)
Chapter 8


13 Pages
Unlock Document

University of Toronto St. George
Rotman Commerce
Marcel Danesi

CHAPTER 8: MANAGING HUMAN RESOURCES THE FOUNDATIONS OF HUMAN RESOURCE MANAGEMENT - Human resource management (HRM): set of organizational activities directed at attracting, developing, and maintaining an effective workforce - Takes place within a complex and ever-changing environmental context and is increasing being recognized for its strategic importance The Strategic Importance of HRM - Human resources are critical for effective organizational functioning - Was once relegated to second-class status in many organizations, but its importance has grown dramatically in the last 2 decades - New importance stems from: 1. Increased legal complexities 2. Recognition that human resources are a valuable means for improving productivity 3. Awareness today of the costs associated with poor HRM - Effectiveness of their HR function has a substantial impact on a firms bottom-line performance - Poor HR planning can result in spurts of hiring followed by layoffs- costly in terms of unemployment compensation payments, training expenses, and morale - Chief HR executive of most large businesses is a vice-president directly accountable to the CEO - Many firms are developing strategic HR plans that are integrated with other strategic planning activities Human Resource Planning - The starting point in attracting qualified human resources is planning - HR involves job analysis and forecasting the demand for and supply of labour Job Analysis - Job analysis: a detailed study of the specific duties in a particular job and the human qualities required for that job - Systematic analysis of jobs within an organization - Is made up of two parts: 1. 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 2. Job specification: the specific skills, education, and experience needed to perform a job - Job analysis information is used in many HR activities - Is necessary is develop appropriate selection methods and job-relevant performance appraisal systems and to set equitable compensation rates Forecasting HR Demand and Supply - After managers fully understand the jobs to be performed within an organization, they can start planning for the organizations future HR needs - Starts by assessing trends in part HR usage, future organizational plans, and general economic trends - Good sales forecast is often the foundation, especially for smaller organizations - Historical ratios can be used to predict demand for types of employees - Forecasting the supply of labour involves two tasks: CHAPTER 8: MANAGING HUMAN RESOURCES 1. Forecasting internal supply: the number and type of employees who will be in the firm at some future date 2. Forecasting external supply: the number and type of people who will be available for hiring from the labour - Large organizations use extremely sophisticated models to keep track of the present & future distributions of professionals and managers - Replacement Charts: An HR technique that lists each important managerial position, who occupies it, how long he/she will probably stay in it before moving on, and who is now qualified or soon will be qualified to move into it (Commonly used at higher levels of organization) - Skills inventories: computerized systems that contain information on each employees education, skills, work experience, and career aspirations. It can quickly locate every employee who is qualified to fill a position requiring. - Forecasting external supply of labour is a different problem; to get an idea of the future availability of labour, planners must rely on information from outside resources - Matching HR Supply and Demand - Compare future demand & internal supply managers can make plans to manage predicted shortfalls/overstaffing - If a shortfall is predicted, new employees can be hired, present employees can be retrained and transferred into understaffed areas, individuals approaching retirement can be convinced to stay on, labour-saving can be installed - If the organization needs to hire, the external labour-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 - The use of temporary workers also helps managers in staffing - If overstaffing is predicted, options are transferring the extra employees, not replacing individuals who quit, encouraging early retirement, and laying people off STAFFING THE ORGANIZATION - Managers decide what positions they need to fill find and hire individuals who meet the requirements - Top three characteristics employers are looking for when they hire people: good working ethic, reliability, and willingness to stay on the job CHAPTER 8: MANAGING HUMAN RESOURCES - Staffing = most complex and important aspects of good HRM - The top 10 employers by numbers of employees: George Weston Ltd (150000)> Onex Corp (138000)> Magna International Inc.> McDonalds> Wal-Mart> Alcan> Metro> Royal Bank of Canada> BCE Inc.> Canada Post Recruiting Human Resources - Recruiting: the phase in the staffing of a company in which the firm seeks to develop a pool of interested, qualified applicants for a position Internal Recruiting - Internal recruiting: considering present employees as candidates for job openings - Promotion from within can help build morale and keep high quality employees from leaving - For higher-level positions, a skills inventory system may be used to identify internal candidates or managers may be asked to recommend individuals who should be considered External Recruiting - External recruiting: Attracting people outside the organization to apply for jobs - Methods include advertising, campus interviews, employment agencies or executive search times, etc - Manager must select the most appropriate method for each job - Private employment agencies can be good source of clerical and technical employees - Executive search firms specialize in locating top-management talent - Newspaper ads often used: reach a wide audience and thus allow minorities equal opportunity to learn and apply - Job fair has survived in spite of internet career posting and the proliferation of employment agencies Candidates browse through the positions available and employers can see a sample of skills candidates have Candidates and recruiters can talk to each other face-to-face Cheaper than posting jobs with an employment agency or headhunter - Internships: one method of external recruiting; involves offering college and university students internships; a short-term paid position where students focus on a specific project Selecting Human Resources - Select someone to hire - 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 - To reduce uncertainty, managers use a variety of selection techniques - Each organization develops its own mix of selection techniques Application Forms - First step is usually asking the candidate to fill out an application form - Efficient method of gathering information about the applicants previous work history, educational background, and other job-related demographic data - Should not contain questions about areas unrelated to the job - Generally used informally to decide whether candidate merits further evaluation
More Less

Related notes for RSM100Y1

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.