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CHAPTER 7: MANAGING HUMAN RESOURCES

Human Resource Management (HRM) 

 –  The management function concerned with getting, training, motivating, and

keeping competent employees

Legal Environment of HRM

o  HR practices are governed by laws.

o  Laws are not similar globally.

HUMAN RESOURCE FUNCTIONS

 Job Analysis(JA) 

 –  An assessment that defines jobs and the behaviors necessary to perform them 

 –  Based on JA, 2 documents are developed: 

 –   Job Description: A written statement that describes a job (main task,

duties and responsibilities)

 –   Job Specification:

A written statement of the minimum qualifications knowledge, skill,

abilities) that a person must possess to perform a given job successfully.

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Employment Planning 

 –  The process by which managers ensure they have the right numbers and kinds of

people in the right places at the right time

 –  Organizations should carry out HR planning (HRP) to meet their business

objectives. 

 – 

Involve 2 major steps: 

•  Assess current HRs and future HR needs

•  Developing appropriate plans accordingly

Recruitment

 –  Locating, identifying, and attracting capable applicants

 –  Organizations must make decision to use internal or external recruitment source.

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How does a manager handle layoffs?

Selection Process 

Screening job applicants to ensure that the most appropriate candidates are hired

Pre-employment testing

Measure mental abilities such as verbal skills, quantitative skills and reasoning ability.

Performance-Simulation Tests

Selection devices based on actual job behaviors

Interview

Goal-oriented conversation where interviewer and applicant exchange information.

Unstructured interview  

•  Do not have a predetermined checklist of questions

•  Ask open-ended questions

• 

Often time consuming

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Structured Interview  

An interview in which a set of standardized questions having an established set of

answers is used.

Situational Interview  

An applicant is given a hypothetical incident and asked how he or she would

respond to it.

Behavioral Description Interview

An applicant is asked questions about what he or she actually did in a given

situation.

Realistic Job Preview (RJP) 

A preview of a job that provides both positive and negative information about the job and the

company.

 

Provide realistic job expectations  Increase job satisfaction

  Reduce turnover

Orientation 

Introducing a new employee to the job and the organization.

Employee Training 

A learning experience that seeks a relatively permanent change in employees by improving their

ability to perform on the job.

Involves changing: skills, knowledge, attitudes or behavior

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Performance Management System 

A system that establishes performance standards that are used to evaluate employee

performance.

  Essay

 

Rater prepares a narrative/written statement describing an individual’s strengths,

weaknesses, and past performance.

  Critical Incident  

  The manager keeps a log or diary for each employee throughout the appraisal

period and notes specific critical incidents related to how well they perform.

  Multiperson

  Compare an individual’s performance with that of others. 

  Adopts relative-based (comparative) evaluation.

  Graphic Rating Scale 

  List a set of performance factors and provides a rating scale to indicate the extent

to which an employee displays each factors.

  Behaviorally Anchored Rating Scale (BARS) 

  Appraiser rates employees according to items along a numerical scale that

describe different levels of performance.

  360-degree appraisal 

 

An appraisal device that seeks feedback from a variety of sources for the personbeing rated

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Discipline

Actions taken by a manager to enforce an organization’s standards and regulations 

Employee Counseling

A process designed to help employees overcome performance-related problems.

Compensation Administration 

The process of determining a cost-effective pay structure that will attract and retain employees,

provide an incentive for them to work hard, and ensure that pay levels will be perceived as fair

•  Basic Pay  

•  Variable Pay  

 –  A pay system in which an individual’s compensation is contingent on performance 

•  Employee Benefits 

 –  Nonfinancial rewards designed to enrich employees’ lives