INTRODUCTION TO MANAGEMENT
UNIT 10 - Human Resource Management
Ref: Daft, R. (2011). Management. 7th ed. Chp 12. Thomson, Southwestern.
Facilitated by: Dr. Tiou Clarke
UNIT OBJECTIVES
 At the end of this unit students should be able to:
Explain the role of human resource
management in organizational strategic
planning.
Relate legislations and societal trends that
influence human resource management.
The goals of Human Resource Management
Differentiate the various means human
resource managers use to meet their goals
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Slides compiled by: Flo Angus
UNIT CONTENT
 Human resource management and organizational strategic
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planning
Local and global legislations
Human resources environmental forces
Changes in the field of human resource management
Recruitment and selection tools
Attracting, developing and maintaining an effective workforce
The Strategic Role
of Human Resource Management
 Human Resource management has shed its old personnel image
and gained recognition as a vital player in corporate strategy
 HRM departments not only support the organization’s strategic
objective but actively pursue an ongoing, integrated plan for
furthering the organization’s performance
●Higher employee productivity
●Stronger financial results
●Achieve organization’s strategic goals
●Key players on management team
Manager’s Challenge: UPS Buffalo, New York
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Current Strategy Issues
 Current strategy issues of interest to managers include:
 Becoming more competitive on a global basis
 Improving quality, productivity, and customer service
 Managing mergers and acquisitions
 Applying new information technology for e-business
 Operating in a completely virtual space
 Accessing international talents without the border and
regulation restrictions.
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Issues /Factors Affecting the Entire
Organization
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Globalization
Changing Technology
Shift to knowledge work
Rapid shifts in markets and the external environment
Societal trends
Government Regulations
Changes in organizational culture
Structure
Strategy and goals
Virtual workspace and CRMs
Tools for Putting Strategy into Action
Environment
Strategy
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Organization
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Leadership
Use persuasion
Motivation
Shape culture / values
Structural Design
• Design organization chart
• Create teams
• Determine centralization/
Decentralization
• Arrange facilities, task design
Human Resources
• Recruit/ select employees
• Manage transfers,
promotions/ training
• Direct layoffs/ recalls
Information and
Control Systems
• Revise pay, reward system
• Change budget allocations
• Implement information
systems
• Apply rules/procedures
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Human Resource Management in
Strategic Planning
 Strategy implementation - putting
strategy into action.
 Tools for Implementation:
 Leadership
 Structural design
 Information and Control Systems
 HUMAN RESOURCES/HUMAN CAPITAL.
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Three Ways HR Is Changing
1 Focus on building human capital
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3The use of information
technology
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Development of
global HR strategies
IHRM
Human Capital - IHRM
 Human Capital = economic value of the knowledge,
experience, skills, and capabilities of employees
 IHRM = addresses the complexity that results from
recruiting, selecting, developing, and maintaining a diverse
workforce on a global scale
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Information Technology
 Human resource information technology = an
integrated computer system designed to provide data and
information used in HR planning and decision making
 Traditional HR to e-HR significantly affected every area of
human resource management
 Some organizations are close to a paperless HRM system
– saves time, money, frees staff
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Elements of
Human Resource Management
All managers
are resource
managers
Employees are
viewed as
assets
Matching process,
integrating the
organization’s
goals with
employees’ needs
How a company manages its workforce may be single
more important factor in sustained competitive success
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Local Labour Legislations
 Primary purpose to protect the workers against unfair
treatment, examples;
 Minimum Wage Act, 1938, last amendment in 2011
 Factory Act (Occupational Safety and Health Act)
 Equal Pay (for Men and Women) Act 1975
 Maternity Leave Act
 Employment (Termination and Redundancy) Payments Act
 Labour Relations and Industrial Disputes Act (LRIDA)
(amended 2010)
 Occupational Health and Safety Billy – currently being tabled in
Parliament
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Human Resource Management
Strategic Goals
Company Strategy
Attract an Effective Workforce
HRM Environment
Legislation
Trends in society
International events
Changing
technology
HRM planning
Job analysis
Forecasting
Recruiting
Selecting
Maintain an Effective Workforce
Wage and salary
Benefits
Labor relations
Terminations
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Develop an Effective Workforce
Training
Development
Appraisal
Attracting an Effective Workforce
HR Planning
Retirements
Growth
Resignations
Choose Recruiting
Sources
Want Ads
Headhunters
Internet
Company’s Needs
Strategic goals
Current and future competencies
Market changes
Employee turnover
Corporate culture
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Company Inducements
Pay and benefits
Meaningful work
Advancement
Training
Challenge
Select the
Candidate
Application
Interview
Tests
Matching Model
Match With
Matching Model
Match With
Welcome New
Employee
Employee Contributions
Ability
Education & experience
Creativity
Commitment
Expertise
Employee’s Needs
Stage of career
Personal values
Promotion aspirations
Outside interests
Family concerns
Human Resource Planning
 Forecasting of human resource needs and the projected matching of
individuals with expected vacancies
● ? = New technologies emerging
● ? = Volume of business likely next 5-10 years
● ? = Turnover rate, how much is avoidable, if any
Matching Model
An employee selection approach in which the organization and the
applicant attempt to match each other’s needs, interests, and values
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Recruiting
 Recruiting involves those activities or practices that define the desired
characteristics of applicants for specific jobs
● Internal – promote-from-within policies used by many to fill high-
level positions
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It is less costly than external search
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Generates higher employee commitment, development and
satisfaction because it offers opportunities for career
advancement to employees rather than outsiders.
● External = recruiting newcomers from outside has advantage of
multiple sources
● E-cruiting = use of Internet - fastest-growing approach to recruiting
● Caribbeanjobs.com, Indeed, etc.
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Sources of Recruits
 Advertising
 State (government) Employment services
 Private employment agencies (headhunters)
 Job fairs or Recruitment Drive
 Employee referrals
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Assessing Organizational Needs
 Basic building blocks of HRM include:
Job Analysis
Job Description
Job Specification
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Job Analysis
Job Analysis is the systematic process of gathering and
interpreting information about the essential duties, tasks,
and responsibilities of a job, as well as about the context
within which the job is performed.
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Job analysis helps organizations recruit the right kind of
people and match them to appropriate jobs.
To perform job analysis, managers or specialists ask about
work activities and workflow, the degree of supervision
given and received in the job, knowledge and skills needed,
performance standards, working conditions, and so forth.
Realistic Job Previews
 Job Analysis helps enhance recruiting effectiveness by
enabling the creation of realistic job previews.
 A Realistic Job Preview is a recruiting approach that
gives applicants all pertinent and realistic information about
the job and the organization.
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Job Descriptions & Specifications
 After the job analysis is done, a job description is prepared.
 The job description is a clear and concise summary of
the specific tasks, duties and responsibilities.
 The job specification outlines the knowledge, skills,
education, physical abilities and other
characteristics needed to adequately perform the
job.
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Selection
 Selection is the process of determining the skills,
abilities, and other attributes a person needs to
perform a particular job.
 In the selection process, employers assess applicants’
characteristics to determine the “best fit” between the job
and applicant characteristics.
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Application Form
 The application form is used to collect information
about the applicant’s education, previous job experience
and other background characteristics.
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The Interview
 The interview serves as a 2-way communication
channel that allows both the organization and the
applicant to collect information that would otherwise be
difficult to obtain.
 Panel interviews – candidate meets with several
interviewers who take turns asking questions – increases
interview validity
 Computer-based interviews - complement traditional
interviewing information
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Inappropriate or Illegal Questions (USA)
Employment Applications and Interviews
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Race-related questions
Age
Religion
Gender
National origin
Marital/family status
Testing and Assessment
 Employment Test = written or computer-based test
designed to measure a particular attribute such as
intelligence or aptitude
 Assessment Center = technique for selecting
individuals with high managerial potential based on their
performances on a series of simulated managerial tasks
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Assessment Center
 Assessment centers present a series of managerial
situations to groups of applicants, over, say, two ot threeday period.
 One technique is the in-basket simulation, which requires
the applicant to play the role of a manager who must
decide how to respond to ten memos in his or her inbasket within a 2-hour period. Panels of 2 or 3 trained
judges observe the applicant’s decisions and assess the
extent to which they reflect interpersonal,
communication and problem-solving skills.
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Developing an Effective Workforce
 Training and Development represent a planned effort by
an organization to facilitate employees’ learning of jobrelated skills and behaviors.
 Organizations spend nearly $100 billion each year on
training.
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Types of Training
 On-the-job Training, where an experienced employee is
asked to take a new employee “under his or her wing” and
show the newcomer how to perform job duties.
 Moving people to various types of jobs within the
organization, where they work with experienced employees
to learn different tasks – cross-training
 Advantages of OJT include:
 Few out of pocket costs for training facilities, materials or
instructor fees
 Easy transfer of learning back to the job
 Fastest and most effective means of facilitating learning in
the workplace.
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Types of Training
 Mentoring
 Orientation Training
 Classroom Training
 Self-Directed Learning
 Computer-based Training
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Corporate Universities
 Corporate University is an in-house training and
education facility that offers broad-based learning
opportunities for employees – and frequently for customers,
suppliers and strategic partners as well – throughout their
careers.
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Promotion from Within
 Another way to further employee development is through
promotion-from-within, which can help companies retain
valuable employees.
 This provides challenging assignments, prescribes new
responsibilities, and helps employees grow by expanding and
developing their abilities.
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Performance Appraisal
 Performance Appraisal is the process of observing
and evaluating an employee’s performance, recording the
assessment, and providing feedback to the employee
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Maintaining an Effective Workforce
 Compensation
 Wage and Salary Systems
 Pay for Performance
 Benefits
 Vacation, other leaves
 Education grants, etc.
 Termination
Ethical Dilemma: A Conflict of Responsibilities
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Compensation
 Compensation refers to:
 All monetary payments
 All goods or commodities used in lieu of money to
reward employees
 An organization’s compensation structure includes wages
and/or salaries and benefits such as health, insurance,
paid vacations, or employee fitness centers.
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Benefits
 Health insurance
 Vacation
 Subsidized lunch
 Subsidized utilities
 On-site gym
 Uniforms
 Day-care centres for children of staff
 Pension contributions
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Termination
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Some will retire, others will depart voluntarily for other
jobs, and still others will be forced out through mergers
and cutbacks or for poor performance.
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The value of termination for maintaining an effective
workforce is twofold:
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2.
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Employees who are poor performers can be dismissed.
Productive employees often resent disruptive, lowperforming employees who are allowed to stay with the
company and receive pay and benefits comparable to theirs.
Employers can use exit interviews as a valuable HR tool,
regardless of whether the employee leaves voluntarily or is
forced out.
Exit Interview
 An exit interview is an interview conducted with
departing employees to determine why they are leaving.
 The value of the exit interview is to provide an excellent and
inexpensive way to learn about pockets of dissatisfaction
within the organization and hence reduce future turnover.
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EL FIN!
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