Principles of Management Lecture 5 - Human Resource Management

Activities that managers engage in to forecast their current and future needs for human resources.

Demand forecasts
- qualifications and numbers of employees the firm will need
- goals and strategies

Supply forecasts
- availability and qualifications of current employees now and in the future
- qualified workers in the market

• Using outside suppliers and manufacturers to produce goods and services
• Using contract workers rather than hiring them

+  flexibility, cost savings

-  loss of control, less committed and knowledgable staff

• Identifying the tasks, duties and responsibilities that make up a job and the knowledge, skills, and abilities needed to perform the job

  • (Job Description - tasks, duties, responsibilities)

  • (Job Specification - knowledge, skills, abilities)

• Should be done for each job in the organization

• Observing what current workers do
   
• Having workers and manages fill out questionnaires

External recruiting

• Looking outside the organization for people who have not worked at the firm previously
• Newspapers advertisements, open houses, career fairs at colleges, recruiting meetings with groups in the community

Internal recruiting

• Managers turn to existing employees to fill open positions

• Having access to a potentially large applicant pool
• Being able to attract people who have the skills, knowledge, and abilities an organization needs
• Bringing in newcomers who may have a fresh approach to problems and be up to date on the latest technology

• Internal applicants are already familiar with the organization
• Managers already know candidates
• Can help boost levels of employee motivation and morale

Managers find out whether each applicant is qualified for the position and likely to be a good performer.

• Background information
• References
• Paper-and-pencil tests
• Physical ability tests
• Performance tests
• Interviews

Reliability: The degree to which the tool or test measures the same thing each time it is used

Validity: The degree to which a tool or test measures what it purports to measure

Teaching organizational members how to perform current jobs and helping them to acquire the knowledge and skills they need to be effective performers.

Building the knowledge and skills of organizational members so they are prepared to take on new responsibilities and challenges.

An assessment of which employees need training or development and what type of skills or knowledge they need to acquire.

• Classroom instruction
• On-the-job training
• Apprenticeships (can include classroom instruction and on-the-job training)

• Classroom instruction
• On-the-job training
• Varied work experience
• Formal education

• The evaluation of employees’ job performance and contributions to their organization
• Traits, behaviors, results

The process through which managers share performance appraisal information with subordinates, give subordinates an opportunity to reflect on their own performance, and develop— with subordinates— plans for the future.

• Supervisors
• Peers
• Customers or clients
• Subordinates
• Self

are potential sources of performance appraisals

An appraisal conducted at a set time during the year and based on performance dimensions that were specified in advance.

An unscheduled appraisal of ongoing progress and areas for improvement.

• 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

The relative position of an organization’s incentives in comparison with those of other firms in the same industry employing similar kinds of workers.

The arrangement of jobs into categories based on their relative importance to the organization and its goals, level of skills, and other characteristics.

Legally required: Social Security, workers’ compensation, unemployment insurance

Voluntary: Health insurance, retirement, day care, bonuses

Cafeteria-style benefits plans allow employees to choose the best mix of benefits for them, but can be hard to manage

The activities managers engage in to ensure they have effective working relationships with the labor unions that represent their employees interests.

• Represent worker’s interests to management in organizations

• A united group inevitably wields more power than an individual, and this type of power may be especially helpful to employees in some organizations

Negotiation between labor and management to resolve conflicts and disputes about issues such as working hours, wages, benefits, working conditions, and job security.