Bucharest University of Economic Studies

Faculty of Business Administration

HUMAN RESOURCE MANAGEMENT

Associate Professor, PhD., Valentina Mihaela Ghinea

Lecture 2

MANAGEMENT PROCESS:
- FORECASTING

- PLANNING
- ORGANIZING
- STAFFING
- LEADING
- CONTROLLING

an organizations labor force

people working in an
organization

people having specific

skills and knowledge
different people with different
perceptions, needs and goals

The theoretical discipline the assumption that employees are individuals

with different perceptions, needs and goals

impossible to immediately win everybodys sustainable adhesion on the

long run

object of management should be to secure the maximum prosperity for the

employer, coupled with the maximum prosperity for each employee.
Frederick W. Taylor
As HRM has become viewed as more critical to organizational success, many
companies realized that the employees could provide a competitive advantage.

HRM works to ensure that employees are able to meet the organization's
goals.

"People are our most valuable asset" is a clich which no

member of any senior management team would disagree
with.

The reality shows though that many employees remain undervalued,

under-trained, underutilized, poorly motivated and in consequence
they will not feel mobilized to perform at the true level of their
capabilities.

-socio-cultural filters
(influenced by the
environment that
every person is born
and lives in),
-individual filters
(given by the personal
experience).

VERBAL
COMMUNICATION
PARA-VERBAL
COMMUNICATION
NON-VERBAL
COMMUNICATION

SELECTION PROCESS

WORLD

DISTORTING PROCESS

-neurological filters
(our senses which are
very subjective),

GENERALIZATION PROCESS

"The map is not the territory

A. Korzybski
INDIVIDUAL
WORLD MAP

HRM
GENERAL
MANAGEMENT

restricting its interests to

people

-holistic
-interdisciplinary
-strategic & coherent

A too rigid rational thinking can lead the evolution at a

problem point.
G. Bachelard

HRM deals with: design of formal systems in an organization to ensure

the effective and efficient use of human talent to
accomplish organizational goals.
- bringing people into the organization,
helping them perform,
compensating them for their labor,
and solving problems that arise

beginning of
mankind

-necessity of selecting
tribal leaders,
-of recording and passing
knowledge about safety,
health, hunting, and
gathering on to youth

2000 - 1000 B.C

China and
employees
screening tests

ancient Greek and Babylonian

civilizations and the earliest form
of industrial education, the
apprentice system

EMPIRICAL STAGE

Industrial revolution
Cottage system Factory production

the end of the XIXth century

(Fords first manufacturing line)

-new jobs filled with emigrants
-need for adequate management of
employees

OWNER = the only holder of the capital +

the only organizer of the work
master of the house
(nowadays = in state administration & Japanese families)
-INTUITION, TRADITION, EXPERIENCE
-activities took place by repetitive attempts, with no
scheduling and no previous training
-problems were dealt with as they appeared and the aim
was to adapt to the situations that might occur

the 1880s - the 1940s

United States = the land of opportunity where good-paying industrial jobs were
plentiful
immigration
significantly
rose

F.W. Taylor's
&

- cheap but low skilled

immigrant workers

(1856-1915)

Early HRM techniques:

TEACHING ENGLISH (training), HOUSING, MEDICAL
CARE (reward) increasing productivity
however
labor unions pressure

hazardous tasks,
unhealthy work
environments

wellbeing (prosperity) stage

Scientific
Management

- different languages
spoken

long hours,

until World War II

(existing since 1790 in USA,

&

B.F. Goodrich Co.

(1900)
National Cash
Register (1902)
-worker grievances,

they became much more

powerful during the late 1800s -wage administration,
and early 1900s)
-record keeping, etc.

between the two World Wars

development of
the work unions &
and legislation

-collective
negotiations,
-work agreements,
-resolution of the
employees claims

recruitment of a
large number of
soldiers during
World Wars

-employment of a large
number of women =
the main work force

until World War II

Hawthorne
productivity
studies

Behavioral
school

development of personnel activities

- modern SELECTION, TRAINING, EVALUATION
methods

After the World War II

PERSONNEL ADMINISTRATION STAGE

DEVELOPMENT
STAGE
World war II
1950s

-RECRUITMENT,
REMUNERATION

&

MATURITY
STAGE

the end of the 1970s

1960s - 1970s

-more complex approach of the HR

-unions strengthened

- improvement of SELECTION,
TRAINING and EVALUATION

-personnel services
reoriented

- more complex system of work

LEGISLATION

all medium-sized and large

companies and institutions
had some type of HRM
program in place to handle
recruitment, training,
regulatory compliance,
dismissal etc

-to avoid lawsuits for violating this

legislation HRM professionals
1980s HRM and SHRM were conceived in
American universities

each time has its own reality

technological advance

nature of work (more employees in service sector)

manual and clerical workers knowledge workers

globalization new markets (international market)

exporting jobs

workforce demographics more diverse workforce in terms of

age, gender, nationality, believes, etc

MANAGERS: LINE MANAGERS

STAFF MANAGERS

LINE MANAGER

is authorized to direct the work of subordinates ORDERS

is responsible for accomplishing the organizations tasks

STAFF MANAGER = assists & advises line managers

Line function = inside his own dept. (directs the activity)
Coordinative function = coordinates personnel
HR manager = STAFF MANAGER

activities

Staff function = assists & advises

VACANCY =

when an employee leaves the organization

when a new post is created through expansion & reorganization
- Doing

away with the work altogether

- Job enrichment = redesigning jobs in a way that increases

the opportunities for the worker to experience feelings of
responsibility, achievement, growth, and recognition

- Job enlargement = assigning workers additional same-level

activities to increase the number of activities they perform

- Re-think the structure of the work & automate the work

- Sub-contracting (outsourcing)
- Working over-time
- Part-time position

JOB ANALYSIS = DUTIES & SKILLS required by a job

and
CHARECTERISTICS of people who should be hired

JOB DESCRIPTION =
list of jobs duties, reporting relationships, working conditions, etc
WHAT THE WORKER DOES
- simple version
- more complex version
Outdated & superfluous competencies framework

JOB SPECIFICATION = list of jobs human requirements personality, etc.

-essential characteristics
-desirable characteristics

METHODS OF gathering INFORMATION

JOB ANALYSIS

-QUESTIONNAIRES
(may exaggerate the importance of some aspects of work)
-EMPLOYEES AGENDAS
(employees may be reluctant or not be typical)
-OBSERVING EMPLOYEES
(time consuming & people act differently when they
know they are observed = Hawthorne effect)
- INTERVIEWING EMPLOYEES

RECRUITMENT

WHAT TO LOOK FOR?

WHERE TO LOOK FOR?

WHO WILL TAKE CARE OF?

HOW TO LOOK FOR?

METHODS OF RECRUITMENT
- - IN-FORMAL METHODS from inside the CO

RECOMMENDATIONS (referral recruitment) risk of high subjectivism

(ex. Life insurance companies, Assystem)

CONSULTING THE PORTFOLIO WITH HIRING REQUESTS

GRADUATES HAVING AN INTERNSHIP

(ex.Ogilvy, Assystem, Deloitte, P&G..)

RE-HIRING FORMER EMPLOYEES (once they left, it is very likely to

leave it again)
(ex. Martplast, life insurance companies, Heidenhain)

PROMOTING INTERNAL CANDIDATES (ex. P&G)

METHODS OF RECRUITMENT
- - FORMAL METHODS external sources

CO alone (using advertising agencies)

Using RECRUITMENT AGENCIES (staff recruited through agencies

has the tendency to move on quicker)

HEAD-HUNTING COs

EDUCATIONAL ESTABLISHMENTS

Recruiting Yield Pyramid

Recruiting yield pyramid = the historical arithmetic relationships between

-

recruitment leads and invitees,

invitees and interviews,
interviews and offers made,
and offers made and offers accepted.

EEO = Equal Employment Opportunities

- sources of discrimination

DISPARATE TREATMENT = intentional discrimination - an employer treats an

individual differently because he is a member of a particular race, religion,
gender or ethnic group
DISPARATE IMPACT = an apparently neutral employment practice that
creates an ADVERSE IMPACT (disproportion within the pool of
candidates hired)
Disparate rejection rates
Four-fifths rule of thumb prima facie case of discrimination
Restricted policy (intentionally or not)
McDonnell Douglas test intentionally discrimination
-The person belongs to a protected class
-The person applied & was qualified for the job
-The person was rejected despite qualification
-After rejection, the position remained open

EEO = Equal Employment Opportunities

- BONA FIDE OCCUPATIONAL QUALIFICATION (BFOQ)

BFOQ = an employee to be of a certain religion, gender or nationality

where that is reasonably necessary to the organizations normal operation
BUSINESS NECESITY
AFFIRMATIVE ACTION = employer to make an extra effort to HIRE &
PROMOTE those in a protected group
REVERSE DISCRIMINATION = average people are discriminated against

-Good intentions are no excuse

-Employers cannot hide behind collective bargaining agreements

The devil wears Prada

Antitrust