I/O chapter 5
description
Transcript of I/O chapter 5
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HUMAN RESOURCE DEVELOPMENT
AND MANAGEMENT
by Jason O. Manaois, Psychology Department
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Objectives
At the end of the learning period, the students will be
able to be:
Familiarize and Examine the nature of different
facets of HRD
Actualize the different functional components of
HRD
Analyze the process incorporated in the each facet
of HRD
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Context and Definition
Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development.
The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers.
http://humanresources.about.com/od/glossaryh/f/hr_development.htm
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Context and Definition
Organizations have many opportunities for human resources or employee development, both within and outside of the workplace.
Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort. Or, Human Resource Development can be informal as in employee coaching by a manager. Healthy organizations believe in Human Resource Development and cover all of these bases.
http://humanresources.about.com/od/glossaryh/f/hr_development.htm
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Context and Definition
HRD is "organized learning activities arranged within an organization in order to improve performance and/or personal growth for the purpose of improving the job, the individual, and/or the organization" (1). HRD includes the areas of training and development, career development, and organization development.
This is related to Human Resource Management -- a field which includes HR research and information systems, union/labor relations, employee assistance, compensation/benefits, selection and staffing, performance management systems, HR planning, and organization/job design (2).
http://alumnus.caltech.edu/~rouda/T1_HRD.html
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Context and Definition
Human Resource Management (HRM) is the function
within an organization that focuses on recruitment of,
management of, and providing direction for the people
who work in the organization. HRM can also be
performed by line managers.
HRM is the organizational function that deals with issues
related to people such as compensation, hiring,
performance management, organization development,
safety, wellness, benefits, employee motivation,
communication, administration, and training.
http://humanresources.about.com/od/glossaryh/f/hr_management.htm
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Context and Definition
HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives.
HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.
http://humanresources.about.com/od/glossaryh/f/hr_management.htm
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Components of a Human Resource
Management System
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The Facets of H.R. Department
Recruitment and Selection
Training and Development
Employee Relations
Compensation and Benefits
Organizational Development
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http://www.peoples-edge.de/en/home/
RECRUITMENT AND SELECTION
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Definition
Recruitment can be defined as:
all activities directed towards locating potential employees
the attraction of applications from suitable applicants.
The aim of recruitment is to get the best person suited to the job based on objective criteria for a particular job.
Used to attract and hire new employees who have the abilities, skills, and experiences that will help an organization achieve its goals.
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Recruitment and Selection
Recruitment:
Attracting qualified candidates to work in an organization.
is the process of generating a pool of capable people to
apply for employment to an organization.
Selection:
Selecting among the applicants.
is the process by which managers and others use specific
instruments to choose from a pool of applicants a person or
persons most likely to succeed in the job(s), given
management goals and legal requirements.
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Purpose of Recruitment
Determine present and future needs for personnel
Increase the pool of qualified applicants
Increase the fit of the applicants attracted
Increase chances of retention by attracting the right
candidates
Provide realistic job previews
Adhere to legal and social requirements
Analyze the labor pools
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Why is recruitment and selection so important?
Costs of mistakes:
engaging incompetent,
underqualified, unmotivated
employees; employing
another person requires
repeating the process and
generates costs
Element of PR
strategy
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Rules of recrutiment and selection
Commonality
Openess
Competitiveness
Legality
Non-discrimination
Constancy of criteria
Neutrality
Objectivism
Transparency
Personal data security
Acting without delay
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The typical staffing process
Planning and approval for staffing
Position announcement
Selection of recruitment strategies
Selection of “tests”
Screen, interview, and checks (reference and other)
Final selection / Negotiate and hire
Postselection considerations
Rec
ruit
men
t S
elec
tion
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Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
The stages of recruitment and selection
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Recruitment and Selection
Recruitment and selection are vital to the formation of a
positive psychological contract, which provides the basis of
organizational commitment and motivation.
The attraction and retention of employees is part of the
evolving employment relationship, based on a mutual and
reciprocal understanding of expectations.
There are wide variations in recruitment and selection practices,
reflecting an organization‘s strategy and its philosophy towards
the management of people.
Progressive HR practices are crucial to a positive psychological
contract – this includes attention to effective recruitment and
selection practices.
Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
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Employer recruitment
Elements influencing effectiveness of recruitment:
The breadth and quality of the process
The size of the labour pool and the location of jobs
Offered pay and benefits
Job quality and requirements of the position
Organizational image
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Agency Affiliation
Job Title
Salary range
Description of duties & responsibilities
Minimum qualifications
Application procedures
Time and place of applications
Position announcement
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Analysis: Candidates
Who is the ideal candidate for the agency?
What has attracted qualified candidates to the agency?
How did those qualified candidates learn about openings?
Why is the pool of qualified candidates shrinking?
What is the value system of the new generation and how can the agency package itself to show potential candidates that the agency has what they desire?
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Recruitment strategies
Job posting
Electronic posting
Personal contact recruitment
Recruitment by mail
Head-hunting
Noncompetive recruitment
Develop a recruiting DVD
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Recruitment strategies: Partnerships
University/college/
high school
communications, art
and computer
science programs
Student Interns
Professional
production
companies and
advertising
agencies
Other city departments or agencies to advertise
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Analysis: recruitment strategies
What has worked or not worked in terms of recruitment strategies and advertising in the past?
Are signing bonuses or other incentives important?
How can current employees be ambassadors for the agency and help recruit qualified candidates?
What recruitment materials does the agency already have and how current are they?
Does the agency have a recruitment website and how many hits is it generating?
Has the agency used paid advertisement in the past and, if so, what value did it ad to the recruitment process?
What strategies is the agency using to attract the interest of grade school up to high school students?
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Selection criteria
Selection criteria should be expressed in terms of:
Essential – requirements that are critical to successful performance in the position without which a person could not be appointed; and
Desirable – requirements that would enable the person to perform at a higher level in the position, but without which the person could still be appointed.
The total number of essential and desirable criteria shall not exceed 10.
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Selection criteria
Selection criteria shall:
be written in simple and clear language;
be specific and not overlapping or repetitive;
be based on the real requirements of the position;
not be excessive in number (i.e. not more than 10 in total)
not discriminate unlawfully either directly or indirectly against applicants
not favour either internal or external applicants; and
be consistent with the classification standards of the position.
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Screening
Retention Survey found that nationally small agencies took an
average of 6.84 weeks to conduct the screening processes,
while large agencies took an average of 11.51 weeks (U.S.
Department of Justice, Office of Justice Programs, Hiring and
Keeping Police Officers)
GOAL: reduce this time so that valuable candidates are still
available
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Screening Process
1 • Discriminating among the qualified and the unqualified
2 • Identifying most highly qualified candidates
3 • Screening particular candidates; results in offering position
to the best candidate
4 • Confirming the qualifications and ability of the chosen
candidate; it may include the first period of employment
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Principles of the screening
A fair set of screening criteria
The criteria must be in line with the job content and appointment as well as advertised requirements
Applicants should be clear on the criteria that apply
The criteria should apply to all applicants in a consistent manner
Any waivers should be fully motivated and approved
Declarations should be made of whether any candidate is related to or friends of an official in the component where the vacancy exists
The various activities of the screening process should be documented and put on record
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12-30
Selection Tools
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Initial reviewing and testing
Education and experience evaluations
Letters of recommendation
Self-assessment
General aptitude and trait test
Performance test for specific jobs
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Reducing the pool: interview
1. Plan how it should proceed: persons, place, roles
2. Prepare list of written questions asked of all candidates
3. Use a work sample as part of the process
Critique or evaluate sth
Solve a problem
Deliver oral presentation, etc
4. Explain basic facts about the position
5. Use the job description and advertisement guides to ensure that the focus is on essential job functions
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Reducing the pool: interview
6. Set up interviews in private
job-settings where distractions
are unlikely
7. Concentrate on listening to
applicant‘s answers and take
notes during the interview
8. Be careful that no oral commitments or suggestions about
employment prospects are made
9. Complete your evaluation notes when impressions are fresh
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Reducing the pool: interview
Subjects to Avoid
Marital status
Children and other dependants
Religion
Politics
Ethnic origins
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Final selection
1. Keep a list of all applicants considered for final selection.
2.Identify fair selection criteria for the final selection phase.
3.Ensure that the criteria are in line with the advertised requirements as well as the job content.
4. Ensure that each selection committee member is provided with all the relevant information pertaining to each short-listed applicant.
5. Ensure that the interviews are conducted in a fair and effective manner and that each candidate is weighed comprehensively against the requirements as advertised.
6. Ensure that a comprehensive motivation is compiled in respect of all the applicants interviewed.
7. Ensure that all applicants are informed about the outcome of the final selection phase.
8. Ensure that all relevant information is put on record.
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Closing selection
• Phone call and further clarification
• Letter of intent
• Completing employment forms
• Protocols may be available for intetested
individuals
• Number of candidates
• Names, surenames and adresses of 5 top
candidates
• Recruitment and selection criteria
• Justification of the decision
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Trends in recruitment and selection
Procedural Changes:
Eliminating arbitrary rules and regulations that restrict the choices of hiring managers and supervisors
Adopting flexible and appealing hiring procedures.
Screening applicants quickly
Validating entry requirements and examinations.
Instituting worker-friendly personnel policies,
Creating more flexible job descriptions.
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Trends in recruitment and selection
Improvements to the Recruitment and Selection Process:
The decentralization movement — "New Public Management"
is known in many quarters as devolution, often characterized
by the decentralization of HR responsibility.
Aggressive outreach efforts
Current employees as recruiters
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Trends in recruitment and selection
Use of Technology:
Many scholars believe that technology will be the most notable HRM trend of the next few decades
Many large public organizations use computer bulletin boards and electronic mail to improve recruitment process
Managers can have online access to applicants' test scores, qualifications and contact information
Software programs: to administer online examinations, track applicants, match resumes with skill sets, expedite background checks, and shepherd job candidates through a paperless staffing process
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10 golden rules of recruitment & selection
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1. Develop a Recruitment Plan
2. Conduct Research
3. Personalize the Recruitment Process
4. Select and Train the Right People as Recruiters
5. Build Strong Partnerships
6. Develop an Employee Referral Program
7. Improve the Selection Process
8. Develop an Advertising Plan
9. Develop an Internet Presence
10. Employ Effective Recruitment Strategies
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Internal Sources of Candidates:
Hiring from Within
Advantages
Foreknowledge of
candidates‘ strengths and
weaknesses
More accurate view of
candidate‘s skills
Candidates have a
stronger commitment to the
company
Increases employee morale
Less training and
orientation required
Disadvantages
Failed applicants become
discontented
Time wasted interviewing
inside candidates who will
not be considered
Inbreeding of the status
quo
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Internal vs External Labor Markets
Germany, Japan, France, and Switserland use more
internal sources for promotions
Britaion, USA, Denmark, Hong Kong use external
sources more
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Offshoring/Outsourcing White-Collar
and Other Jobs
• Specific issues in outsourcing jobs abroad
– Political and military instability
– Likelihood of cultural misunderstandings
– Customers‘ security and privacy concerns
– Foreign contracts, liability, and legal concerns
– Special training of foreign employees
– Costs associated with companies supplying foreign
workers
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Selection Techniques
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UK 78.1 51.7 66.7 47.6 26.7 1.1 79.7 France 22.1 92.1 75.7 23.6 12.9 19.3 46.4 Germany 56.8 60.2 13.5 6.1 23.3 2.0 45.8 Turkey 29.2 53.2 47.4 15.8 11.1 1.8 60.8 Australia 77.2 53.3 44.4 37.1 5.8 1.2 77.6 USA 59.6 68.5 59.2 10.0 7.3 0.4 64.6 Tunisia 9.0 65.6 50.8 34.9 5.3 3.7 29.6
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Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Recruitment and Attraction
A key role for HR is to align performance within roles with
the strategy, so recruiting for the ‗right‘ people for a role
depends on how it is defined in terms relating to
performance to achieve the strategy.
Criterion-related behaviours or standards of performance
are referred to as competencies.
Competencies can be used to provide the behaviours
needed at work to achieve the business strategy, and
enable organizations to form a model of the kinds of
employee it wishes to attract through recruitment.
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Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Fig 7.2 Attraction and Selection
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Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Attracting Applicants
The main approaches to attracting applicants can be summarized
as follows:
• Walk-ins
• Employee referrals
• Advertising
• Websites
• Professional associations
• Educational associations
• Professional agencies
• E-recruitment (general recruitment
agents/ companies‘ own sites)
• Word-of-mouth
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Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Recruitment Considerations
An organization will take account of a number of factors when
forming its recruitment plans and choice of media.
These might include:
Cost
Time taken to recruit and select
Labour market focus, for example: skills, profession or occupation
Mobility of labour – geographic and occupational
Legislation on sex discrimination, race discrimination and disability
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Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Job description format
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Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
A seven-point plan
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Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Five-fold grading system
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Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Person specs vs competencies
Personnel specifications versus competencies
Personnel specifications may contain stereotypes of the
‗ideal‘ person and so organizations may be reinforcing the
stereotype in their recruitment practices.
The use of competencies allows organizations to free
themselves from traditional stereotypes in order to attract
applicants from a variety of sources.
Competencies appear to be more objective, have a variety
of uses in attracting applicants and allow an organization
to use more reliable and valid selection techniques.
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Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Selection: costs
Organizations have become increasingly aware of
making good selection decisions, since it involves a
number of costs:
The cost of the selection process itself, including the use
of various selection instruments
The future costs of inducting and training new staff
The cost of labour turnover if the selected staff are not
retained
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Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan
Selection: principles
Underlying the process of selection and the choice of
techniques are two key principles:
1. Individual differences: Attracting a wide choice of
applicants will be of little use unless there is a way of
measuring how people differ, i.e. intelligence, attitudes,
social skills, psychological and physical characteristics,
experience etc.
2. Prediction: A recognition of the way in which people
differ must be extended to a prediction of performance
in the workplace.
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Reliability and Validity Issues
Reliability refers to the extent to which a selection technique
achieves consistency in what it is measuring over
repeated use.
Validity refers to the extent to which a selection technique
actually measures what it sets out to measure.
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Selection Interviews
Information elicited – interviews have a specific focus, i.e. facts,
subjective information, underlying attitudes.
Structure – ranging from the completely structured to the
unstructured. A compromise between the two enables the
interviewer to maintain control yet allowing the interviewee
free expression.
Order and involvement – the need to obtain different kinds of
information may mean the involvement of more than one
interviewer. Applicants may be interviewed serially or in a
panel.
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Selection table 7.1
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Selection table 7.1
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Psychometric Testing
Personality research has lent support to the use of sophisticated
selection techniques such as psychometric tests that have a
good record of reliability and validity.
• Ability tests: these focus on mental abilities
(verbal/numerical) and physical skills testing. Right/wrong
answers allow applicants to be placed in ranked order.
• Inventories: self-report questionnaires indicating traits,
intelligence, values, interests, attitudes and preferences. No
right/wrong answers but a range of choices between
possible answers.
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E-assessment
On-line testing, or e-assessment, is also used for selection and
other HR purposes.
Benefits:
Online testing enables organizations to test at any time and
anywhere in the world.
It enables the quick processing of applicants.
Drawback:
Loss of control over the administration of the tests – anyone can
be called on to help
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Assessment Centres
Assessment centres are designed to yield information that can
be used to make decisions concerning suitability for a job.
They provide a fuller picture by combining a range of
techniques.
General methods used include group discussions, role plays and
simulations, interviews and tests.
Candidates attending an assessment centre will be observed by
assessors who should be trained to judge candidates‘
performance against criteria contained within the competency
framework.
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Realistic Job Previews
Applicants have expectations about how the organization will
treat them. Recruitment and selection represent an opportunity
to clarify these.
Realistic job previews (RJPs) provide a means of achieving this.
RJPs can take the form of case studies, shadowing, job sampling
and videos – this enables the expectations of applicants to
become more realistic.
RJPs: lower initial expectations, cause some applicants to de-select
themselves, increase levels of organization commitment, job
satisfaction, performance and job survival.
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Best practices
National Nuclear Security Administration (NNSA)
Problem:
A review of the hiring practices found that job announcements were filled with jargon, lots of facts and information, and extensive list of job duties which made it difficult to identify major features and selling points of the job.
Recruitment was passive… NNSA waited for applicants to apply.
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Makeover:
A new look to convey the importance and excitement of their positions, as well as why they were a great place to work
Added photos to depict the unique work environment at NNSA.
Implemented an internet-based targeted recruitment strategy to identify potential candidates from job boards and other locations
They sent recruiters to fifteen universities in the South and West to recruit interns with an emphasis on diversity
The results produced 28 qualified candidates, up from three unqualified candidates in the previous recruitment process + 30 highly qualified interns
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Best practices
U.S. Department of Education
Problem:
The hiring process took too long and did not always deliver qualified candidates.
Upon mapping out the hiring process, it was discovered that there were discrete steps with over 45 handoffs between different managers, administrative officers and HR specialists.
Managers were disengaged from the hiring process. Job descriptions were problematic. When managers could not find good candidates they had a tendency to sit on the list, until ultimately it was re-posted.
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Makeover:
The hiring process was streamlined by eliminating redundancies and unnecessary steps resulting in a reduction of more than half of the steps…down to 53.
The automated process for assessing applicants has been overhauled and questions are more closely aligned with skills needed to be successful on the job.
The process of change has not been easy and has taken a commitment of time and effort on the part of leaders, HR, managers and others involved in the hiring process.
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Best practices
Centers for Medicare & Medicaid Services
Problem:
Federal law changed requiring the agency to add 500 new
positions. The length of time to complete the hiring process was long
and the quality of candidates was lacking.
The automated staffing system in place was believed to be
inadequate to meet the demands of the hiring needs. The agency
wanted top talent and a faster process.
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Makeover:
The agency started with an ―end-to-end‖ mapping of the hiring process and identified both short and long term fixes. They used focus groups to document the process, identify roles and responsibilities, and assess obstacles.
Through the process the agency eventually reduced the number of steps in the hiring process by more than twenty percent.
Other key things they did included better marketing positions using visually appealing, plain-English announcements, proactively targeting qualified candidates via internet, resume databases and built tools to effectively screen applicants to ensure they were a good fit for the position.
They eventually assigned responsibility for the process to one person at the executive level.
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Figure 12.3 Steps in the selection process: the
case of a rejected job applicant.
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How do organizations attract a quality workforce?
Step 1—application forms
Declares individual to be a job candidate.
Documents applicant‘s personal history and
qualifications.
Personal résumés may be included.
Applicants lacking appropriate credentials are rejected
at this step.
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How do organizations attract a quality workforce?
Step 2—interviews
Exchange of information between job candidate and
key members of the organization.
Opportunity for job candidate and organizational
members to learn more about each other.
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How do organizations attract a quality workforce?
Step 3 — employment tests
Used to further screen applicants by gathering
additional job-relevant information.
Common types of employment tests:
Intelligence
Aptitude
Personality
Interests
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How do organizations attract a quality workforce?
Criteria for selection devices:
Reliability
The selection device is consistent in measurement.
Validity
There is a demonstrable relationship between a person‘s
score or rating on a selection device and his/her eventual
job performance.
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How do organizations attract a quality workforce?
Behaviorally-oriented employment tests:
Assessment center
Evaluates a person‘s performance in simulated work
situations.
Work sampling
Evaluates a person‘s performance on actual job tasks.
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How do organizations attract a quality workforce?
Step 4 — reference and background checks
Inquiries to previous employers, academic advisors, coworkers and/or acquaintances regarding applicant‘s:
Qualifications.
Experience.
Past work records.
Can better inform potential employer.
Can enhance candidate‘s credibility.
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How do organizations attract a quality workforce?
Step 5 — physical examinations
Ensure applicant‘s physical capability to fulfill job
requirements.
Basis for enrolling applicant in life, health, and
disability insurance programs.
Drug testing is done at this step.
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How do organizations attract a quality workforce?
Step 6 — final decision to hire or reject
Best selection decisions will involve extensive
consultation among multiple parties.
Selection decision should focus on all aspects of the
candidate‘s capacity to perform the designated job.
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TRAINING AND DEVELOPMENT
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Training and Development
Training and Development
Ensures that organizational members develop the skills
and abilities that will enable them to perform their jobs
effectively in the present and the future
Changes in technology and the environment require that
organizational members learn new techniques and
ways of working
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Study Question 4: How do organizations develop a
quality workforce?
Socialization
Process of influencing the expectations, behavior, and
attitudes of a new employee in a way considered
desirable by the organization.
Orientation
Set of activities designed to familiarize new employees
with their jobs, coworkers, and key aspects of the
organization.
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Management - Chapter 12 83
Study Question 4: How do organizations develop a
quality workforce?
Training
A set of activities that
provides the
opportunity to acquire
and improve job-
related skills.
On-the-job training
Job rotation
Coaching
Mentoring
Modeling
Off-the-job training
Management
development
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Training and Development
Training
Teaching organizational members how to perform current jobs and helping them to acquire the knowledge and skills they need to be effective performers.
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Training and Development
Development
Building the knowledge and skills of organizational
members to enable them to take on new responsibilities
and challenges.
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Training and Development
Needs Assessment
An assessment of which employees need training or
development
and what type of skills
or knowledge they need
to acquire.
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Training and Development
Figure 12.4
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Types of Training
Classroom Instruction Employees acquire skills in a classroom setting.
Includes use of videos, role-playing, and simulations.
On-the-Job Training Employee learning occurs in the work setting as new
worker does the job. Training is given by co-workers and can be done
continuously to update the skills of current employees.
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Types of Development
Varied Work Experiences Top managers have need to and must build expertise
in many areas. Employees identified as possible top managers are
assigned different tasks and a variety of positions in an organization.
Formal Education Tuition reimbursement is common for managers taking
classes for MBA or job-related degrees. Long-distance learning can also be used to reduce travel
and other expenses for managerial training.
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HUMAN RESOURCE PRACTICES
Orientation And Training
Orientation
the process of formally introducing new employees to their jobs and socializing them with performance expectations.
Training
keeping workers‘ skills up to date and job relevant; important training approaches include coaching and mentoring.
Coaching
An experienced person offers performance advice to a less experienced person
Mentoring
Assigns early career employees as protégés to more senior ones
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EMPLOYEE RELATIONS
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Employee Relations
Labor relations
Steps that managers take to develop and maintain
good working relationships with the labor unions that
may represent their employees‘ interests
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Study Question 5: How do organizations maintain a
quality workforce?
Career development
Career — a sequence of jobs that constitute what a person
does for a living.
Career path — a sequence of jobs held over time during a
career.
Career planning —matching career goals and individual
capabilities with opportunities for their fulfillment.
Career plateau — a position from which someone is unlikely
to move to a higher level of responsibility.
Progressive employers seek ways to engage plateaued employees.
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Management - Chapter 12
94
Study Question 5: How do organizations maintain a
quality workforce?
Work-life balance
How people balance career demands with personal and
family needs.
Progressive employers support a healthy work-life balance.
Contemporary work-life balance issues:
Single parent concerns
Dual-career couples concerns
Family-friendliness as screening criterion used by candidates
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Study Question 5: How do organizations maintain a
quality workforce?
Retention and turnover
Replacement is the management of promotions,
transfers, terminations, layoffs, and retirements.
Replacement decisions relate to:
Shifting people between positions within the organization.
Retirement.
Termination.
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Study Question 5: How do organizations maintain a
quality workforce?
Labor-management relations
Labor unions deal with employers on the workers‘ behalf.
Labor contracts specify the rights and obligations of employees and management regarding wages, work hours, work rules, seniority, hiring, grievances, and other conditions of employment
Collective bargaining is the process of negotiating, administering, and interpreting a labour contract.
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Figure 12.5 The traditional adversarial view of
labor-management relations.
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Management - Chapter 12 98
Study Question 5: How do organizations maintain a
quality workforce?
Unions can create
difficulties for
management by…
Striking
Boycotting
Picketing
Management can
create difficulties for
unions by…
Using lockouts
Hiring strike-breakers
Seeking injunctions
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The Legal Environment of HRM
Equal Employment Opportunity (EEO)
The equal right of all citizens to the opportunity to
obtain employment regardless of their gender, age,
race, country of origin, religion, or disabilities.
Equal Employment Opportunity Commission (EEOC)
enforces employment laws.
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The Legal Environment of HRM
Contemporary challenges for managers
How to eliminate sexual harassment
How to make accommodations for employees with
disabilities
How to deal with employees who have substance abuse
problems
How to manage HIV-positive employees and employees
with AIDs
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Question?
What are the activities managers engage in to ensure
they have effective working relationships with
unions?
A. Collective bargaining
B. Labor relations
C. Employee negotiations
D. Labor deal
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Labor Relations
Labor Relations
The activities managers engage in to ensure they have
effective working relationships with the labor unions
that represent their employees interests.
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Labor Relations
Laws regulating areas of employment.
Fair Labor Standards Act (1938) prohibits child labor,
sets a minimum wage and maximum working hours.
Equal Pay Act (1963) men and women doing equal
work will get equal pay.
Work Place Safety (1970) OSHA mandates procedures
for safe working conditions.
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Unions
Unions
Represent worker‘s interests to management in organizations.
The power that a manager has over an individual worker causes workers to join together in unions to try to prevent this.
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Unions
Collective bargaining
Negotiation between labor and management to
resolve conflicts and disputes about issues such as
working hours, wages, benefits, working conditions,
and job security.
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Movie Example: The Firm
Were any or the
partners‘ questions
inappropriate? How
should Mitch have
responded to these
questions?
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COMPENSATION AND BENEFITS
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Compensation and Benrfits
Pay and Benefits
Rewarding high performing organizational members
with raises, bonuses and recognition.
Increased pay provides additional incentive.
Benefits, such as health insurance, reward membership in
firm.
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Study Question 5: How do organizations maintain a
quality workforce?
Compensation and benefits
Base compensation
Salary or hourly wages
Fringe benefits
Additional non-wage or non-salary forms of
compensation
Flexible benefits
Employees can select a set of benefits within a certain
dollar amount
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Study Question 5: How do organizations maintain a
quality workforce?
Compensation and benefits (cont.)
Family-friendly benefits
Help in balancing work and nonwork responsibilities
Employee assistance programs
Help employees deal with troublesome personal
problems.
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Pay and Benefits
Pay
Includes employees‘ base salaries, pay raises, and
bonuses
Determined by characteristics of the organization and
the job and levels of performance
Benefits are based on membership in an organization
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Pay and Benefits
Pay level
The relative position of an organization‘s incentives in comparison with those of other firms in the same industry employing similar kinds of workers
Managers can decide to offer low, average or high relative wages.
High wages attract and retain high performers but raise costs; low wages can cause turnover and lack of motivation but provide lower costs.
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Pay and Benefits
Pay Structure
The arrangement of jobs
into categories based on
their relative importance
to the organization and
its goals, level of skills,
and other characteristics.
CEO
VP
Director
VP
Director
Dept Manager
VP
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Pay and Benefits
Benefits
Legally required: social security, workers‘ compensation
Voluntary: health insurance, retirement, day care
Cafeteria-style benefits plans allow employees to choose the best mix of benefits for them; can be hard to manage.
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ORGANIZATIONAL DEVELOPMENT
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Organizational Development
Performance Appraisal and Feedback
Provides managers with the information they need to
make good human resources decisions about how to
train, motivate, and reward organizational members
Feedback from performance appraisal serves a
developmental purpose for members of an
organization
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HUMAN RESOURCE PRACTICES
Performance Appraisals
Performance Appraisal
The process of formally evaluating performance and
feedback to an employee
Two Purposes of Performance Appraisal
1. Evaluation—document and let people know how well they are
doing; judgmental role.
2. Development—identify how training and support can improve
performance; counseling role.
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HUMAN RESOURCE PRACTICES
Performance Appraisals
Critical Incident Technique Keeps a log of a person‘s effective and ineffective job
behavior
360 Degree feedback Includes superiors, subordinates, peers and even customers in
the appraisal process
Multi-person Comparison Rates employees against each other
Graphic Rating Scale Uses a checklist of characteristics or traits to evaluate
performance
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HUMAN RESOURCE PRACTICES
Performance Appraisals
Behaviorally Anchored Rating Scale
Uses specific descriptions of actual behaviors to rate various levels of actual performance
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Study Question 4: How do organizations develop a
quality workforce?
Performance management systems ensure that—
Performance standards and objectives are set.
Performance results are assessed regularly.
Actions are taken to improve future performance
potential.
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Management - Chapter 12
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Study Question 4: How do organizations develop a
quality workforce?
Performance appraisal
Formally assessing someone‘s work accomplishments
and providing feedback.
Purposes of performance appraisal:
Evaluation — lets people know where they stand relative to
objectives and standards.
Development — assists in training and continued personal
development of people.
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Figure 12.4 Sample behaviorally anchored rating scale for
performance appraisal.
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Management - Chapter 12
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Study Question 4: How do organizations develop a
quality workforce?
Graphic rating scales
Uses checklists of traits or characteristics to evaluate
performance.
Relatively quick and easy to use.
Questionable reliability and validity.
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Management - Chapter 12
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Study Question 4: How do organizations develop a
quality workforce?
Behaviorally anchored rating scales (BARS)
Describes actual behaviors that exemplify various levels of performance achievement in a job.
More reliable and valid than graphic rating scales.
Helpful in training people to master important job skills.
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Management - Chapter 12
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Study Question 4: How do organizations develop a
quality workforce?
Critical-incident techniques
Keeping a running log or inventory of effective and
ineffective behaviors.
Documents success or failure patterns.
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Management - Chapter 12
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Study Question 4: How do organizations develop a
quality workforce?
Multiperson comparisons
Formally compare one person‘s performance with that
of one or more others.
Types of multiperson comparisons:
Rank ordering
Paired comparisons
Forced distributions
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Management - Chapter 12
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Study Question 4: How do organizations develop a
quality workforce?
Alternatives to supervisory appraisal:
Peer appraisal
Occurs when people who work regularly and directly with a
jobholder are involved in the appraisal.
Upward appraisal
Occurs when subordinates reporting to the jobholder are involved in
the appraisal.
360° feedback
Occurs when superiors, subordinates, peers, and even internal and
external customers are involved in the appraisal of a jobholder‘s
performance.
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Performance Appraisal and Feedback
Performance Appraisal
The evaluation of employees‘ job performance and
contributions to their organization.
Performance Feedback
The process through which managers share
performance appraisal information, give subordinates
an opportunity to reflect on their own performance,
and develop with subordinates, plans for the future.
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Types of Performance Appraisal
Trait Appraisals
Assessing subordinates on personal characteristics that
are relevant to job performance.
Disadvantages of trait appraisals
Employees with a particular trait may choose not to use
that particular trait on the job.
Traits and performance are not always obviously linked
It is difficult to give feedback on traits.
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Performance Appraisal and Feedback
Behavior Appraisals
Assesses how workers perform their jobs—the actual actions and behaviors that exhibit on the job.
Focuses on what a worker does right and wrong and provides good feedback for employees to change their behaviors.
Results appraisals
Managers appraise performance by the results or the actual outcomes of work behaviors
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Performance Appraisal and Feedback
Objective appraisals
Assesses performance based on facts (e.g., sales figures).
Subjective appraisals
Assessments based on a manager‘s perceptions of traits, behavior, or results.
Graphic rating scales
Behaviorally anchored rating scales (BARS)
Behavior observation scales (BOS)
Forced ranking systems
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Question?
Which is the most effective type of performance
appraisal?
A. Trait appraisal
B. Behavior appraisal
C. Results appraisal
D. Objective appraisal
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Subject Measures of Performance:
Graphic Rating Scale
Figure 12.5
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Subject Measures of Performance:
Behaviorally Anchored Rating Scale
Figure 12.5
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Subject Measures of Performance:
Behavioral Observation Scale
Figure 12.5
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Who Appraises Performance?
Figure 12.6
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Who Appraises Performance?
Self Self appraisals can supplement manager view.
Peer appraisal Coworkers provide appraisal; common in team
settings.
360 Degree A performance appraisal by peers, subordinates,
superiors, and clients who are in a position to evaluate a manager‘s performance
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Effective Performance Feedback
Formal appraisals
An appraisal conducted at a set time during the year
and based on performance dimensions that were
specified in advance
Informal appraisals
An unscheduled appraisal of ongoing progress and
areas for improvement
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Effective Feedback Tips
Be specific and focus on behaviors or outcomes that are correctable and within a worker‘s ability to improve.
Approach performance appraisal as an exercise in problem solving and solution finding, not criticizing.
Express confidence in a subordinate ability to improve.
Provide performance feedback both formally and informally.
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Effective Feedback Tips
Praise instances of high performance and areas of
a job in which a worker excels.
Avoid personal criticisms and treat subordinates
with respect.
Agree to a timetable for performance
improvements.
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HUMAN RESOURCE PRACTICES
Retention And Career Development
Career Development
Manages how a person grows and progresses in their
career
Career Planning
The process of managing career goals and individual
capabilities with opportunities for their fulfillment
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Human Resource Planning
Human Resource Planning (HRP)
Activities that managers engage in to forecast their
current and future needs for human resources.
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Human Resource Planning
Demand forecasts
Estimates the qualifications and numbers of employees
the firm will need given its goals strategies.
Supply forecasts
Estimates the availability and qualifications of current
employees now and in the future, as well as the supply
of qualified workers in the external labor market.
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Human Resource Planning
Outsourcing
Using outside suppliers and manufacturers to produce goods and services
Using contract workers rather than hiring them.
More flexible for the firm.
Provides human capital at a lower cost.
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Human Resource Planning
Problems with Outsourcing
Loss of control over output; outsource contractors are
not committed to the firm.
Unions are against outsourcing that has potential to
eliminate member‘s jobs.