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.

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.

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

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

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 individuals 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 individuals 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 person
being rated

Discipline
Actions taken by a manager to enforce an organizations 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 individuals compensation is contingent on performance
Employee Benefits
Nonfinancial rewards designed to enrich employees lives