MANAGING HUMAN RESOURCES Responsibilities of HR Departments

Human Resource Management (HRM)

The policies, practices, and systems that influence employees’:
 behavior
 attitudes
 performance

Companies with Effective Hrm: High-Performance Work System:

Employees and customers tend to be more satisfied. An organization in which technology, organizational structure, people,
The companies tend to: and processes all work together to give an organization a competitive
▪ be more innovative advantage.
▪ have greater productivity
▪ develop a more favorable reputation in the community Job Analysis
Process of getting detailed information about jobs.
Human Capital
– an organization’s employees described in terms of their: Job Design
 training Process of defining the way work will be performed and the tasks that
 experience a given job requires.
 judgment
 intelligence Recruitment
 relationships The process through which the organization seeks applicants for
 insight potential employment.
The concept of HRM implies that employees are resources of the
employer. Selection
The process by which the organization attempts to identify applicants
Impact of HRM with the necessary knowledge, skills, abilities, and other
characteristics that will help the organization achieve its goals.

Training
A planned effort to enable employees to learn job-related knowledge,
skills, and behavior.

Development
Acquisition of knowledge, skills, and behaviors that improve an
employee’s ability to meet changes in job requirements and in
customer demands.

Performance Management
– The process of ensuring that employees’ activities and outputs
match the organization’s goals.
– HR department may be responsible for developing or obtaining
questionnaires and other devices for measuring performance.
HRM and Sustainable Competitive Advantage
• An organization can succeed if it has sustainable competitive
Planning Pay & Benefits
advantage.
▪ How much salary, wages bonuses, commissions, and other
• HR have the necessary qualities to help give organizations
performance -related pay to offer.
this advantage:
▪ Which benefits to offer and how much of the cost will be
• HR are valuable, cannot be imitated, have no good
shared by employees.
substitutes and with needed skills and knowledge are
sometimes rare.
Administering Pay & Benefits
▪ Systems for keeping track of employees’ earnings and
Top Qualities Employers Seek in Job Candidates
benefits are needed.
▪ Employees need information about their benefits plan.
▪ Extensive record keeping and reporting is needed.

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Maintaining Positive Employee Relations Supervisors’ Involvement in HRM
– Preparing and distributing:
▪ employee handbooks and policies
▪ company publications and newsletters
–Dealing with and responding to communications from employee
questions:
▪ about benefits and company policy, possible discrimination
or harassment, safety hazards etc.
–Collective bargaining and contract administration.

Establishing and Administering Personnel Policies

 Organizations depend on their HR department to help establish
and communicate policies related to:
◼ hiring
◼ discipline
◼ promotions
◼ benefits Ethics – fundamental principles of right and wrong.
 All aspects of HRM require careful and discreet record keeping. Ethical behavior – is behavior that is consistent with those principles.
Many ethical issues in the workplace involve HRM.
Ensuring Compliance with Labor Laws
Government requirements include: Employee Rights
▪ filing reports and displaying posters • free consent
▪ avoiding unlawful behavior • privacy
Managers depend on HR professionals to help them keep track of • freedom of conscience
these requirements. • freedom of speech
Lawsuits will continue to influence HRM practices concern job • due process
security.
Ethical companies act according to
HR planning four principles:
– Identifying the numbers and types of employees the organization 1. In their relationships with customers, vendors, and clients,
will require to meet its objectives. ethical companies emphasize mutual benefits.
–The organization may turn to its HR department for help in managing 2. Employees assume responsibility for the actions of the
the change process. company.
–Skilled HR professionals can apply knowledge of human behavior, 3. The company has a sense of purpose or vision that
along with performance management tools, to help the organization employee value and use in their day-to-day work.
manage change constructively. 4. They emphasize fairness.

Evidence-based HR
–Collecting and using data to show that human resource practices Standards for Identifying Ethical Practices
have a positive influence on the company’s bottom line or key
stakeholders.

Corporate Social Responsibility

–A company’s commitment to meeting the needs of its stakeholders.

Stakeholders
–The parties with an interest in the company’s success (typically,
shareholders, the community, customers, and employees).

Skills of HRM Professionals

Standards for Identifying Ethical Hrm Practices

1. HRM practices must result in the greatest good for the
largest number of people.
2. Employment practices must respect basic human rights of
privacy, due process, consent, and free speech.
3. Managers must treat employees and customers equitably
and fairly.

SUMMARY
HRM consists of an organization’s “people practices”
◼ policies, practices, and systems that influence employees’
behavior, attitudes, and performance.
◼ HRM influences who works for the organization and how
those people work.
HR departments have responsibility for a variety of functions related
to acquiring and managing employees.

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HRM requires human relations skills, including skill in: Transitional matrix: a chart that lists job categories held in one period
▪ communicating and shows the proportion of employees in each of those job
▪ negotiating categories in a future period.
▪ team development
HR professionals also need to: It answers two questions:
▪ understand the language of business 1. “Where did people in each job category go?”
▪ be a credible with line managers and executives 2. “Where did people now in each job category come from?
▪ be strategic partners
Determining Labor Surplus or Shortage
Non-HR managers must be familiar with the basics of HRM and their • Based on the forecasts for labor demand and supply, the
own role regarding managing human resources. planner can compare the figures to determine whether
▪ Supervisors typically have responsibilities related to all there will be a shortage or surplus of labor for each job
the HR functions. category.
HR professionals should make decisions consistent with sound ethical • Determining expected shortages and surpluses allows the
principles. organization to plan how to address these challenges.

Decisions of HR professionals should: Goal Setting and Strategic Planning

▪ result in the greatest good for the largest number of • The purpose of setting specific numerical goals is to focus
people. attention on the problem and provide a basis for measuring
▪ respect basic rights of privacy, due process, consent, and the organization’s success in addressing labor shortages and
free speech. surpluses.
▪ treat employees and customers equitably and fairly. • The goals should come directly from the analysis of supply
Careers in HRM may involve specialized work in fields and demand.
such as recruiting, training, or compensation • For each goal, the organization must choose one or more
human resource strategies.
PLANNING FOR AND RECRUITING HUMAN RESOURCES • Organizations should retain and attract employees who
provide a core competency (what makes it better than
The Process of Human Resource Planning competitors)
 Organizations should carry out human resource planning so
as to meet business objectives and gain a competitive Options for Reducing a Surplus
advantage over competitors. • Downsizing
– Human resource planning compares the present • Pay reductions
state of the organization with its goals for the • Demotions
future • Transfers
– Then identifies what changes it must make in its • Work sharing
human resources to meet those goals • Hiring freeze
• Natural attrition
Overview of the Human Resource Planning Process • Early retirement

Options for Avoiding a Shortage

• Overtime
• Temporary employees
• Outsourcing
• Retrained transfers
• Turnover reductions
• New external hires
• Technological innovation

Implementing and Evaluating the HR Plan

• When implementing the HR strategy, the organization must
hold some individual accountable for achieving the goals.
• That person must also have the authority and resources
needed to accomplish those goals.
Forecasting: attempts to determine the supply and demand for • Regular progress reports should be issued.
various types of human resources to predict areas within the • The evaluation of results should not only look at the actual
organization where there will be labor shortages or surpluses. numbers but should also identify which parts of the
planning process contributed to success or failure.
There are three major steps to forecasting:
1. Forecasting the demand for labor Workforce Utilization Review: a comparison of employees in
2. Determining labor supply protected groups with the proportion that each group represents
3. Determining labor surplus or shortage in the relevant labor market.
• The steps in a workforce utilization review are identical to
Trend Analysis the steps in the HR planning process.
• Constructing and applying statistical models that predict • The organization must assess current utilization patterns,
labor demand for the next year, given relatively objective then forecast how they are likely to change in the near
statistics from the previous year. future.
• If the analyses forecast underutilization of certain groups,
Leading Indicators then goals and a plan will be established.
• Objective measures that accurately predict future labor
demand.

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Recruiting Human Resources Enhancing the Recruiter’s Impact
• The role of human resource recruitment is to build a supply • Recruiters should provide timely feedback.
of potential new hires that the organization can draw on if • Recruiters should avoid offensive behavior.
the need arises. • They should avoid behaving in ways that might convey the
• Recruiting: any activity carried on by the organization with wrong impression about the organization.
the primary purpose of identifying and attracting potential • The organization can recruit with teams rather than
employees. individual recruiters.

Three Aspects of Recruiting Summary

• The first step in human resource planning is personnel
forecasting. Through trend analysis and good judgment, the
planner tries to determine the supply and demand for
various human resources.
• The next step is to determine the labor demand for workers
in various job categories. Analysis of a transitional matrix
can help the planner identify which job categories can be
filled internally and where high turnover is likely.
• To reduce a surplus, downsizing, pay reductions, and
demotions deliver fast results but at a high cost in human
suffering that may hurt surviving employees’ motivation and
future recruiting.
• To avoid a labor shortage, requiring overtime is the easiest
and fastest strategy.
Personnel Policies • Internal recruiting generally makes job vacancies more
Several personnel policies are especially relevant to recruitment: attractive because candidates see opportunities for growth
• Internal versus external recruiting and advancement.
• Lead-the-market pay strategies • Lead-the-market pay strategies make jobs economically
• Employment-at-will policies desirable.
• Image advertising • Internal sources are usually not sufficient for all of an
organization’s labor needs.
Recruitment Sources: Internal Sources • Through their behavior and other characteristics, recruiters
Job Posting: the process of communicating information about a job influence the nature of the job vacancy and the kinds of
vacancy: applicants generated.
– On company bulletin boards
– In employee publications JOB ANALYSIS
– On corporate intranets Job Analysis
– Anywhere else the organization communicates with • Is a systematic exploration of the activities within a job
employees • A technical procedure used to define a job’s duties,
responsibilities, and accountabilities
Advantages of Internal Sources • Involves the identification and description of what is
1. It generates applicants who are well known to the happening on the job accurately and precisely identifying
organization. the required tasks, the knowledge, and the skills necessary
2. These applicants are relatively knowledgeable about the for performing them, and the conditions under which they
organization’s vacancies, which minimizes the possibility of must be performed.
unrealistic job expectations.
3. Filling vacancies through internal recruiting is generally Job Analysis Methods
cheaper and faster than looking outside the organization. 1. Observation method
2. Individual interview method
Recruitment Sources: External Sources 3. Group interview method
• Direct applicants 4. Structured questionnaire method
• Referrals 5. Technical conference method
• Advertisements in newspapers and magazines 6. Diary method
• Electronic recruiting
• Public employment agencies Observation method
• Private employment agencies • A job analysis technique in which data are gathered by
• Colleges and universities watching employees work
• Provides first-hand information, however, workers rarely
Evaluating the Quality of a Source function most efficiently when they are being watched
Yield Ratios • This method requires that the entire range of activities be
• A ratio that expresses the percentage of applicants who observable, which is possible with some jobs, but impossible
successfully move from one stage of the recruitment and for many others, for example most managerial jobs
selection process to the next.
• By comparing the yield ratios of different recruitment Individual interview method
sources, we can determine which source is the best or most • Meeting with employee to determine what his or her job
efficient for the type of vacancy. entails
Cost Per Hire • Involves assembling a team of job incumbents for extensive
• Find the cost of using a particular recruitment source for a individual interviews
particular type of vacancy. • Effective in assessing what a job entail
• Divide that cost by the number of people hired to fill that • Involving employees in the job analysis is essential
type of vacancy.
• A low cost per hire means that the recruitment source is
efficient

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Group interview method Uses of Job Analysis Information
• Meeting with several employees to collectively determine  Preparing the job description and writing the job
what their job entails specifications
• Accuracy is increased in assessing jobs, but group dynamics  Recruitment and selection
may hinder its effectiveness  Determining the rate of compensation
 Performance appraisal
Structured questionnaire method  Training
• Specifically, designed questionnaire on which employees  Career planning and development
rate tasks they perform in their jobs  Safety
• Excellent for gathering information about jobs, however,  Labor relations
exceptions to a job may be overlooked, and opportunity
may be lacking to ask follow-up questions or clarify the O*NET
information received.  Occupational Information Network
 Provides more information to students needing career
Technical conference method research to write reports and to HR professionals who want
• A job analysis technique that involves extensive input from updated information on job requirements for job analysis
the employee’s supervisor.  O*NET database contains information on hundreds of
• A good data-gathering method, but it often overlooks the careers, and is continually updated and provided on line at
incumbent workers’ perceptions about what they do on no cost
their job
Structured Job Analysis Techniques
Diary Method
• Requires job incumbents to record their daily activities
• The most time consuming of the job analysis methods and
may extend over long periods of time – all adding to its cost

STEPS IN CONDUCTING JOB ANALYSIS

1. Examine the total organization and the fit of each job
2. Determine the purpose of JA (Job Analysis)
3. Select job to be analyzed
4. Collect data by using acceptable JA Techniques
5. Prepare JD (Job Description)
6. Prepare JS (Job Specification)
7. Use information from Steps 1-6 for Job Design, Planning,
Selection and Training, Recruitment, Performance Appraisal,
Compensation, etc.

JOB DESCRIPTION, JOB SPECIFICATION, & JOB DESIGN Job Description

 Is a written statement of what the jobholder does, how it is
Purpose of Job Analysis done, under what conditions, and why?
 Is to generate three tangible outcomes: job description, job  It should accurately portray job content, environment, and
specifications, and job evaluation conditions of employment
Definition of job terms Format for a Job Description
1. Position – consists of the responsibility and duties  Job title usually describes the job and hints at the nature
performed by an individual and duties of the job
2. Job – group of positions that are similar in their duties  Job Identification section includes the department location
3. Occupation - groups of jobs that are similar to kind of work of the job, who the person reports to, a job identification
and are found throughout an industry. An occupation is a code, and the date the description was last revised
category of work found in many firms.  Job duties or essential functions lists the job duties in order
of importance
Specific Information Provided by Job Analysis  Job specifications explain the personal qualifications
1. Job title and location necessary to perform the duties listed above including
2. Organizational relationship – brief explanation of the specific skills, education, certification, and physical abilities
number of persons supervised (if applicable) and job title of
the position supervised. It also reflects supervision Uses of Job Description
received. 1. Describes the job to potential candidates (either verbally by
3. Relation to other jobs – describes and outlines the recruiters and interviewers or in written advertisements
coordination required by the job 2. Guides newly hired employees in what they are specifically
4. Job Summary – condensed explanation of the content of the expected to do
job 3. Develops criteria for evaluating performance of the
5. Information concerning job requirements – it varies from job individual holding that job
to job. Usually provide information about machines, tools, 4. Establishes the relative worth of the job for compensation
6. materials, mental complexity and attention required,
physical demands, and working conditions.

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Job Specifications
 Statements indicating the minimal acceptable qualifications
incumbents must possess to successfully perform the
essential elements of their jobs
 It identifies pertinent knowledge, skills, education,
experience, certification, and abilities
 It is an important tool for keeping the selector’s attention on
the list of necessary qualifications and assisting in
determining whether candidates are essentially qualified

Job Evaluation
 Specifies the relative value of each job in the organization
 Necessary to have an equitable compensation program, jobs
that have similar demands in terms of skills, knowledge, and
abilities should be placed in common compensation groups

Job Design
 Refers to the way that the position and the tasks within that
position are organized
 It describes what tasks are included; how and when the
tasks are done; and any factors that affect the work, such as
in what order the tasks are completed and the conditions
under which the tasks are completed.
 Good job design incorporates tasks that relate to
organizational goals and values into every job description

Job Enrichment
 Expanding job content to create more opportunities for job
satisfaction

If you want people to do a good job, give them a good job to

do.” – Fredrick Herzberg

Five Core Job Characteristics for an Effective Job Design

1. Skill Variety – allowing workers to use different skills and
talents to do a number of different activities
2. Task identity – workers are able to see a completed product
or project or some visible outcome that creates a sense of
accomplishment
3. Task significance – the tasks performed have some
meaningful impact on the organization, or the external
environment.
4. Autonomy – worker has some control over the job
5. Feedback from the job itself – the job includes some
opportunity to show the worker if the tasks are done
properly

Flexible Work Schedules

 Compressed work week schedules – employees work
longer days in exchange for longer weekends or other days
off
 Flex time – allows employees to schedule the time they
begin their eight-hour working day
 Job sharing – allows two people to share one job by splitting
the work week and the responsibilities of the position
 Telecommuting – using technology to work in a location
other than the traditional workplace.

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