HRM - Trinal Review

Chapter 1
HRM in a Changing
Environment
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Learning Outcomes:
After reading this chapter, students should be able to:
Discuss how cultural environments affect human resource

management (HRM) practices.
Describe how technology is changing HRM
Describe the HRM implications of a labor shortage
Describe how changing skill requirements affect HRM
Explain why organizational members focus on quality and
continuous improvements
Explain the importance of ethics in an organization.

Introduction
HRM is a subset of management. It has five main

goals:
Attract
employees
Utilization Acquisition
employees
Goals employees
of
HRM
Maintainance Development
employees employees
Overall objective = Increasing Productivity
Understanding Cultural Environments
HRM operates in a global business environment.
Countries have different

➢ values (an individual accepted standards of right and wrong)
➢ morals (standards of behavior that enable people to live in a
group)
➢ customs (a pattern of behavior that is followed by members
of a particular culture)
➢ political, economic, and legal systems
HRM helps employees understand other countries’

political and economic conditions.

Understanding Cultural Environments
The Heritage Foundation’s Index of Economic Freedom rates

183 countries on openness to trade, business, investment,
and property rights. The U.S. was #6 in 2009. North Korea is
the most repressed.
TOP 10 FREE COUNTRIES TOP 10 LEAST-FREE COUNTRIES

1. Hong Kong 1. North Korea
2. Singapore 2. Zimbabwe
3. Australia 3. Cuba
4. Ireland 4. Burma
5. New Zealand 5. Eritrea
6. United States 6. Venezuela
7. Canada 7. Dem. Rep. of Congo
8. Denmark 8. Comoros
9. Switzerland 9. Libya
10. United Kingdom 10. Sao Tome & Principe
2009 Country Rankings, see www.heritage.org/index/Ranking.aspx

The Changing World of Technology
HRM operates in a technologically changing

environment.
Thomas Friedman:
Globalization 1.0 Globalization 2.0 Globalization 3.0

(1492-1800) (1800 -2000) (2000 -????)
Driven by transportation Driven by communication Driven by technology
3.0 fueled by instant communication and the Internet.

The IT field is growing.
Knowledge workers focus on the acquisition and

application of information for decision making.
Some books for aspiring knowledge workers:
1. Learning as a Way of Being by Peter B. Vaill

2. Thinking for a Living: How to Get Better Performance and
Results from Knowledge Workers by Thomas H. Davenport
3. Information Anxiety 2 by Richard S. Wurman

HRM information systems help to
➢ facilitate HR plans
➢ make decisions faster
➢ clearly define jobs
➢ evaluate performance
➢ provide desirable, cost-effective benefits
HR managers use technology to:
➢ recruit, hire, and train employees
➢ motivate and monitor workers
➢ research fair compensation packages
➢ communicate throughout the

organization
➢ evaluate decentralized employees’

performance

Workforce Diversity
HRM has moved from the melting pot

assumption to celebrating workforce diversity.
The U.S. Dept. of the Interior’s Web site

www.doi.gov/diversity/8major2.htm overviews major
U.S. civil rights legislation.
The Civil Rights Acts of 1964 and 1991

Equal Pay Act of 1963
Americans with Disabilities Act of 1990
The Age Discrimination in Employment Act
The Rehabilitation Act

Workforce Diversity
Today’s workers want a healthy work/life

balance.
They
➢ can work any time, from almost anywhere
➢ work more than 40 hours per week
➢ are part of a dual-income household
#1 reason
for leaving a company:
lack of work schedule flexibility

The Labor Supply
HR managers monitor the labor supply.
Trend is to rightsize: fit company goals to

workforce numbers.
For agility, companies build a contingent

workforce of
➢ part-time workers
➢ temporary workers
➢ contract workers
 

Continuous Improvement Programs
focus
on
customer
concern for
empowerment continuous
of employees continuous improvement
improvement
components
accurate concern for

measurement total quality
HR managers help workers adapt to continuous improvement changes

through retraining, providing answers, and monitoring expectations.
Employee Involvement
It’s all about employee empowerment through

involvement, which increases worker productivity
and loyalty.
Employee Involvement Concepts
delegation • participative management

work teams • goal setting • employer training
See http://workhelp.org/joomla/content/view/284/ for

managerial tips on empowering employees.

Other HRM Challenges
Challenges for HRM:
➢ The recession has brought layoffs and low

morale.
➢ Increased offshoring means jobs can move

overseas, even HR.
➢ Today’s spate of mergers and acquisitions

increase HR’s role.

A Look at Ethics
Code of ethics: a formal statement of an

organization’s primary values and the ethical rules
it expects members to follow.
HR managers must take part in enforcing ethics

rules.
Sarbanes-Oxley Act of 2002
Requires proper financial recordkeeping
for public companies
Video: Robert Lane, Ethics at Deere

-End of Lesson 1-
Chapter 2
HRM Functions and

Strategy

Learning Outcomes:
» Explain what we mean by strategic human resource

management.
» Describe the importance of human resource
management.
» Identify the primary external influences affecting
human resource management.
» Characterize how management practices affect
human resource management.

Importance of HRM
HRM has a dual nature:

.
supports the
organization’s strategy
represents and advocates

for the employees
Strategic HRM provides a clear connection between the

organization’s goals and the activities of employees.

The HRM Functions
HRM has four basic functions:
staffing
training and
development
motivation
maintenance
In other words, hiring people, preparing them, stimulating

them, and keeping them.

The HRM Functions
staffing
➢ strategic human resource planning: match prospects’ skills to

the company’s strategy needs
➢ recruiting: use accurate job descriptions to obtain an
appropriate pool of applicants
➢ selection: thin out pool of applicants to find the best choice
Staffing has fostered the most change in HR departments

during the past 30 years.

The HRM Functions
training and
development
➢ orientation: teach the rules, regulations, goals, and culture of the

company
➢ employee training: help employees acquire better skills for the job
➢ employee development: prepare employee for future position(s) in the
company
➢ organizational development: help employees adapt to the company’s
changing strategic directions
➢ career development: provide necessary information and assessment
in helping employees realize career goals
The goal is to have competent, adapted employees.

The HRM Functions
motivation
➢ theories and job design: environment and well-constructed jobs

factor heavily in employee performance
➢ performance appraisals: standards for each employee; must provide
feedback
➢ rewards and compensation: must be link between compensation and
performance
➢ employee benefits: should coordinate with a pay-for-performance
plan
Video: Robin Sieger: The Truth About Motivation

The HRM Functions
maintenance
➢ safety and health: caring for employees’ well-being has a big

effect on their commitment
➢ communications and employee relations: keep employees
well-informed of company doings, and provide a means of
venting frustrations
Job loyalty has declined over the past decade.

External Influences on HRM
dynamic
environment
management laws and

thought
HRM regulations
labor
unions
External influences affect HRM functions.

dynamic
environment
globalization decentralized work sites
workforce diversity technology

teams employee involvement
changing skill requirements ethics
continuous improvement
“The only constant in life is change.”

laws and
regulations
➢ legislation has an enormous effect on HRM
➢ laws protect employee rights to union representation, fair

wages, family medical leave, and freedom from discrimination
based on conditions unrelated to job performance
➢The U.S. Equal Employment Opportunity Commission

www.eeoc.gov enforces federal laws on civil rights at work.

labor unions
➢assist workers in dealing with company management

➢negotiate wages, hours, and other terms of employment
➢promote and foster a grievance procedure between workers
and management
When a union is present, employers can not fire workers for

unjustified reasons.

management
thought
Frederick Taylor developed principles to enhance worker productivity

Hugo Munsterberg devised improvements to worker testing, training,
evaluations, and efficiency
Mary Parker Follet advocated people-oriented organizations
Elton Mayo’s Hawthorne Studies: dynamics of informal work groups
have a bigger effect on worker performance than do wage incentives
The Hawthorne Studies gave rise to the human relations movement:

benefits, healthy work conditions, concern for employee well-being.

Structure of the HR Department
There are four areas in a typical nonunion HR

department:
compensation /
employment
benefits
training and employee

development relations
Many HR departments also offer services such as operating the

company’s credit union, making child-care arrangements,
providing security, or running in-house medical or food services.

Structure of the HR Department
promotes staffing activities, recruits new

employment employees, but does not make hiring decision
training and helps workers adapt to change in the company’s

development external and internal environments
compensation/ pays employees and administers their benefits

benefits package
ensures open communication within the company by

employee fostering top management commitment, upward and
relations accurate communication, feedback, and effective
information sources

Careers in HR
HR positions include:
➢ assistants who support other HR professionals
➢ generalists who provide service in all four HR functions
➢ specialists who work in one of the four HR functions
➢ executives who report to top management and coordinate HR

functions to organizational strategy
Interpersonal communication skills and ambition are two

factors that HR professionals say advance their careers.

Careers in HR
Organizations that spend money for quality HR

programs perform better than those that don’t.
(HCI study)
Quality programs:
➢reward productive work
➢offer a flexible, work-friendly environment
➢properly recruit and retain quality employees
➢provide effective communications
Make sure HR services match the overall

organizational strategy.

HR Trends and Opportunities
➢ more than half of all companies outsource all or some

parts of their HR functions
➢ professional employer organizations (PEO) help small- to

medium-size companies attract stronger candidates and
handle new laws in HR
➢ shared services allow organizations with several divisions

or locations to consolidate some HR functions into one
central location while retaining certain functions in divisional
locations

Entrepreneurial, Global, Ethical HR
➢ HR managers in small businesses perform the same

functions of those in larger businesses, but on a smaller
scale
➢ international HRM is very involved and costly
➢ recent corporate scandals and resulting legislation (SOX)

have spurred the “corporate ethicist / ombuds” position
See www.ombudsassociation.org for info on the profession.
Match the Fours
Four major HR positions staffing, training, motivation, maintenance
Four HR department environment, laws, labor unions, management

areas thought
Four quality programs employment, training, compensation,

employee relations
Four HRM functions

assistants, generalists, specialists, executives
reward productive work

Four external influences offer a flexible, work-friendly environment
on HRM properly recruit and retain quality employees
provide effective communications

Chapter 3
Employment Laws

Learning Outcomes
▪ Identify the groups protected under the Civil Rights Act of 1964,
Title VII.
▪ Discuss the importance of the Equal Employment Opportunities
Act of 1972.
▪ Describe affirmative action plans.
▪ Identify the important components of the Americans with
Disabilities Act of 1990.
▪ Explain the coverage of the Family and Medical Leave Act of
1993.
▪ Discuss how a business can protect itself from discrimination
charges.
▪ Define what constitutes sexual harassment in today’s
organizations.
▪ Discuss the term glass ceiling.
▪ Identify legal issues faced when managing HR in a global
environment.

Introduction
Almost every U.S. organization, public and private,

must abide by
➢the 1964 Civil Rights Act
➢its 1972 amendment
➢other federal laws regulating employment
State and municipal laws may go beyond federal laws.

Laws Affecting Discriminatory Practices
The 1866 Civil Rights Act prohibited discrimination in

employment based on race and color.
White males have used it to argue reverse discrimination in court cases.

The 1964 Civil Rights Act
➢ outlawed racial segregation and discrimination in

employment, public facilities, and education
➢ Title VII covers hiring, promotion, dismissal,

benefits, compensation or any other terms,
conditions, or privileges based on race, religion,
color, gender, or national origin
Organizations must have at least 15 employees to be

covered.

The 1972 Equal Employment Opportunity Act

(EEOA)
➢ enforced the 1964 Civil Rights Act

➢ established the Equal Employment Commission
(EEOC)
➢expanded scope of civil rights protection to
employees of state and local governments,
education, and labor
➢introduced affirmative action

1967 Age Discrimination in Employment Act

(ADEA)
➢ protects people over age 39
➢ stopped companies from requiring mandatory

retirement at any age
➢ uses four criteria to determine discrimination

whether:
1. the employee is part of a protected group
2. adverse employment action was taken
3. worker was replaced by a younger worker
4. worker was qualified for the job

The Pregnancy Discrimination Act of 1978
Companies may not
➢ fire a female employee for being pregnant

➢ refuse positive treatment based on pregnancy
➢ deny insurance coverage to women
Companies must
➢ offer pregnancy leave (typically 6-10 weeks)
➢ offer returning employee a similar job should the exact
one be unavailable upon return

Americans with Disabilities Act (ADA) of 1990
➢ extends protection and reasonable

accommodations to those with a disability
➢ defines disabled as a person who:

1. has a physical or mental impairment that substantially limits
one or more life activities
2. has a history or record of such impairment
3. is perceived by others as having such impairment
Covers not only those with mobility and communication

disabilities, but those with HIV/AIDS and intellectual
disabilities.

The Civil Rights Act of 1991
➢reinforced the 1964 Act, as a number of Supreme Court cases

over the years weakened it
➢included the Glass Ceiling Act and established the Glass

Ceiling Commission to study management practices
First time such an act allowed individuals to sue for

punitive damages.

The Family and Medical Leave Act of 1993
➢ allows employees to take up to 12 weeks of unpaid

leave in a 12-month period for family matters
➢ employees must
1. live within a 75-mile radius
2. have worked at least 1,250 hours in the past 12 months
3. work for a company that employs at least 50 workers
FMLA difficulties for HR: defining conditions sufficient to take leave,

staffing problems that result, and timing of leave notification.

USERRA and Executive Orders

➢Uniformed Services Employment and Reemployment Rights
Act of 1994 clarifies and strengthens rights of veterans who
served in the national guard or reserves
➢Executive Order 11246 prohibits discrimination by federal

agencies and contractors / subcontractors
➢Executive Order 11375 added sex-based criteria to 11246
➢Executive Order 11478 added that employment practices of

the federal government must be based on merit and
prohibit discrimination

Guarding Against Discrimination Practices
Four tests can determine if discrimination occurred:
4/5ths rule geographical

comparisons
restricted McDonnell
policy Douglas test
But it is up to a judicial body to make the

final determination.

4/5ths
rule
➢ number of minority members hired must equal at least 80

percent (4/5ths) of the majority members in the population
hired
➢ issued by the EEOC, it helps to assess if adverse impact
has occurred
➢ Connecticut v. Teal (1984) case established that decisions in
each step of decision process must conform to the 4/5ths rule
Exhibit 3.3 shows an example of compliance and non-

compliance with the 4/5ths rule.

restricted
policy
Do HRM policies exclude a class of individuals?
geographical
comparisons
Does company’s mix of employees at all levels reflect its

recruiting market?

McDonnell
Douglas
Test
Charge must meet four criteria:
1. the applicant is a member of a protected group

2. the applicant was qualified for job
3. the applicant was rejected
4. the organization, after rejecting applicant, continued to seek
other applicants with similar qualifications

How companies can respond to discrimination

charges if found to have adverse impact:
➢ discontinue the practice

➢ defend against the charges by arguing:
1. business necessity
2. bona fide occupational qualification
3. seniority
Proving job relatedness is often the

most common approach.

Enforcing Equal Opportunity Employment
Federal Government
EEOC OFCCP
within dept. of labor
The EEOC Web site posts notices on current issues. For example, see
its notice on the Swine Flu: http://www.eeoc.gov/facts/h1n1.html

EEOC
Enforces federal laws on civil rights at work.

www.eeoc.gov
➢ Follows a five-step process:
1. EEOC notifies company within 10 days of filing and begins
investigation
2. EEOC notifies company of findings within 120 days
3. if unfounded, process stops; if founded, EEOC tries to resolve
4. if unsuccessful, EEOC begins mediation (settlement meeting)
5. if unsuccessful, EEOC may file charges in court
Has power to investigate claims but no enforcement power.

OFCCP
“ESA’s Office of Federal Contract

compliance Programs (OFCCP) is responsible
for ensuring that contractors doing business
with the Federal government do not discriminate
and take affirmative action.”
http://www.dol.gov/esa/ofccp/
➢ follows similar practice as EEOC in evaluating claims

➢ can cancel an organization’s contract with the federal
government if organization fails to comply with EEO laws
 
 
 
 

Issues in Employment Law
EEOC: Instances where verbal or physical

conduct creates:
sexual ➢ an intimidating, offensive, or hostile environment
harassment ➢ unreasonably interferes with an individual’s work
➢ adversely affects an employee’s employment
opportunities
Glass ceiling - lack of women and minority

representation at the top levels of organizations
comparable
➢OFCCP has glass ceiling initiative
worth ➢promotes career development for women
and minorities
➢looks for such in its audits

HRM in a Global Environment

Laws affecting HRM vary greatly by country.
60/100-hour work-weeks not uncommon.

China China’s recent labor laws seek to protect
employees from such practices
Canada Canadian laws closely parallel those in the U.S.
Mexico In Mexico, employees more likely to be unionized
Australia’s discrimination laws not enacted until the

Australia 1980s
Representative participation (work councils and board

Germany representatives) put labor on par with management
and stockholders
- End of Lesson 3 -
Chapter 4
Employer & Employee

Rights
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins 1

Learning Outcomes:
• Explain the intent of the Privacy Act

of 1974, the Drug-Free Workplace
Act of 1988, and the Polygraph
Protection Act of 1988 and their
effects of HRM.
• Identify the pros and cons of
employee drug testing.
• Discuss the benefits of using honesty
tests in hiring.
2

Learning Outcomes:
• Explain legal and ethical issues involved in

monitoring employees.
• Describe the general guidelines for
administering discipline.
• Explain the elements of the Hot Stove Rule
and their application to discipline in the
workplace.
• Identify important procedures to follow
when firing an employee.
3

Introduction
➢ employee rights have become one of the

more important human resource issues
➢ the U.S. Constitution, laws, and Supreme

Court rulings have increasingly constrained
employer actions.
Employee Rights Legislation

Privacy Act of 1974
➢ requires government agencies to make
available to employees information contained in
their personnel files
➢ employees can review letters of

recommendation made on their behalf
➢ similar state laws apply to state and private-

sector employees
➢ restrictions: employee waivers of right-to-

review procedures that stipulate when and how a
file can be accessed
The Fair Credit Reporting Act of 1971
➢ extension to the Privacy Act
➢ requires employers to notify employees that

their credit is being checked
➢ provides additional information to applicants

who are negatively affected by a credit check
➢ information used must be job-relevant

The Drug-Free Workplace Act of 1988
Requires government agencies, federal
contractors, and those receiving federal funds of
$25,000 or more to
➢ establish and disseminate drug-free policies

➢ provide substance-abuse awareness programs
Drug-free policies must include:
➢ what is expected of employees

➢ penalties for infractions of policies
➢ substance abuse awareness programs

Polygraph Protection Act of 1988
➢prohibits employers in the private sector from

using lie-detector tests in all employment decisions
➢may still be used during investigations of

suspected criminal activity
➢employees can challenge the results of a

polygraph
Worker Adjustment and Retraining Notification

Act of 1988
Protects employees from unexpected plant closings.

➢ organizations of 100+ employees must give 60
days notice if closing facility or laying off 50 or more
workers
➢ state officials must be notified
➢ penalty for not notifying is one day’s pay and

benefits for each day’s notice
The law does recognize circumstances in which
advance notice is impossible.
Current Issues in Employee Rights
Drug Testing
For current employees, it:
➢offers rehabilitation to those who fail
➢communicates that drugs will not be tolerated
For applicants:
➢it should be done after a job offer is made
➢those who fail are usually no longer considered
Companies are
➢moving to more precise tests (that do not use body fluids)
➢communicating clear policies and procedures
➢relating the testing program to safety and job performance
Even organizations not covered by the Drug-Free Workplace

Act conduct drug testing.
10

Honesty Tests
➢ written tests to get applicants to reveal information about

their integrity
➢ legal alternative to polygraph
➢ used to predict theft and drug use
➢ multiple questions on the same topic to assess consistency

of responses
➢ shouldn’t be sole criterion for a hiring decision
11

Employee Monitoring and

Workplace Security
Company interests are protected against
➢ theft
➢ revealing of trade secrets to competitors
➢ using the customer database for personal gain
➢ lost productivity
HRM policies must be clear on monitoring

➢ e-mail
➢ the Internet
➢ phone
How to balance security with employees’ rights?

That is the question!
12

Employee Monitoring and

Workplace Security
Monitoring could extend to cyber places such as:
See “Twitter with Care” from SHRM

http://www.shrm.org/hrdisciplines/
technology/Articles/Pages/
TwitterCarefully.aspx
Technology has blurred the line between public and private.
13


Workplace Romance
Companies
➢ try to prevent employee romance because of

potential discrimination or sexual harassment
issues
➢ can issue fraternization policies and guidelines

on how relationships at work may exist
➢ may ask parties to sign a consensual contract
HRM concerns: favoritism charges, ethics breeches, low

productivity, even workplace violence
14

The Employment-at-Will Doctrine

Employment-at-Will Doctrine
Allows dismissal of employees at any time for any reason

except race, religion, sex, national origin, age, or
disability.
Exceptions to the doctrine:
1. contractual relationship:a legal

agreement exists defining how employee
issues are handled
2. statutory considerations: federal and/or

state laws can create exceptions
15

The Employment-at-Will Doctrine
Employment-at-Will Doctrine
Exceptions to the doctrine:
3. Public policy violation: Employees cannot be fired

for disobeying an illegal order from the employer
4. Implied employment contract: any promise or

guarantee about job security, verbal or written.
5. Breach of good faith: An employer breaches a

promise or abuses its managerial powers.
16

Discipline and Employee Rights

Discipline
A condition where employees conduct
themselves in accordance with the organization’s
rules and standards of acceptable behavior.
HR managers should first consider:
➢ seriousness of the problem

➢ duration of the problem
➢ frequency and nature of the problem
➢ extenuating factors
➢ degree of socialization
➢ history of organization’s discipline practices
➢ management backing
17

The most frequent violations requiring

disciplinary action
attendance
dishonesty Job behaviors
outside
activities
Video: Ed Liddy, Integrity
18

Even tardiness can lead to disciplinary action.
Real people’s “real” reasons for being late to work:

“My heat was shut off so I had to stay home to keep my snake warm.”
“My husband thinks it’s funny to hide my car keys before he goes to work.“
“My father didn’t wake me up.”
“My bike tire went flat after a groundhog bit it.“
“A gurney fell out of an ambulance and delayed traffic.”
“I feel as if I’m in everyone’s way if I show up on time.“
http://www.shrm.org/Publications/HRNews/Pages/TardinessTermination.aspx
19


Disciplinary Guidelines
➢ make disciplinary action corrective rather than

punitive
➢ use a progressive approach (verbal warning,

written warning, suspension, dismissal)
➢ follow the Hot-Stove rule:

give an immediate response
give ample warning
be consistent
be impersonal
Allow employees to have a representative present for
disciplinary meetings.
20

Disciplinary Actions
written/verbal warning
written warning
suspension
dismissal
21
When firing an employee:

1. review all facts
2. set the stage
3. be very clear
4. allow a little dignity
5. let the employee talk
6. give severance pay
7. sign waiver of right to sue
8. pay for earned time
9. have person leave that day
10. inform person of benefits
11. take protective steps (change passwords, etc.)
12. inform staff of firing
22

-End of Chapter 4 -
23
Chapter 5
Effective Job Analysis
Fundamentals of Human Resource Management, 10/e, DeCenzo/ 1

Learning Outcomes:
• Describe the importance of human resource planning.
• Define the steps involved in the human resource
planning process.
• Explain what human resource information systems
are used for.
• Define the term job analysis
• Identify the six general techniques for obtaining job
analysis information.
• Describe the steps involved in conducting the job
analysis.
• Explain job descriptions, job specifications, and job
evaluations.
Introduction
Human resource planning is a process by

which an organization ensures that
➢ it has the right number and kinds of people
➢ at the right place
➢ at the right time
➢ capable of effectively and efficiently completing those

tasks that will help the organization achieve its overall
strategic objectives
Introduction
HR planning must be
➢ linked to the organization’s overall strategy to

compete domestically and globally
➢ translated into the number and types of

workers needed
Senior HRM staff need to lead top

management in planning for HRM issues.
An Organizational Framework
A mission statement defines what business the

organization is in, including
➢ why it exists
➢ who its customers are
➢ strategic goals set by senior management to establish

targets for the organization to achieve
Goals are generally defined for the next 5-20 years.
Linking Organizational Strategy to HR Planning
During a corporate assessment,
➢ SWOT (Strengths-Weaknesses-Opportunities-Threats)
analysis determines what is needed to meet objectives
➢ strengths and weaknesses and core competencies are

identified
HRM determines what knowledge, skills, and abilities are needed by

the organization’s human resources through a job analysis.
STRATEGIC DIRECTION HR LINKAGE
determining organization’s
mission
business
setting goals and

objectives and goals
objectives
strategy determining how to attain

goals and objectives
determining what jobs need to be

structure done and by whom
matching skills, knowledge,

people and abilities to required jobs
7
HR must ensure staff levels meet strategic

planning goals.
➢A n H R i n v e n t o r y r e p o r t s u m m a r i z e s
information on current workers and their skills
➢HR information systems (HRIS)
➢ process employee information
➢ quickly generate analyses and reports
➢ provide compensation/benefits support
Succession planning includes the

development of replacement charts that
➢ portray middle- to upper-level management positions that
may become vacant in the near future
➢ list information about individuals who might qualify to fill the

positions
HR must forecast staff requirements.
➢HR creates an inventory of future staffing

needs for job level and type, broken down by
year
➢forecasts must detail the specific knowledge,

skills, and abilities needed, not just “we need
25 new employees”
10

Linking Organizational Strategy to Human Resource Planning
HR predicts the future labor supply.
➢a unit’s supply of human resources comes from:

➢new hires
➢contingent workers
➢transfers-in
➢individuals returning from leaves
➢predicting these can range from simple to

complex
➢transfers are more difficult to predict since they
depend on actions in other units
11

Decreases in internal supply come about through:

➢ retirements easiest to forecast
➢ dismissals possible to forecast
➢ transfers possible to forecast
➢ layoffs possible to forecast
➢ sabbaticals possible to forecast
➢ voluntary quits difficult to forecast
➢ prolonged illnesses difficult to forecast
➢ deaths hardest to forecast
12

Candidates come from
➢migration into a community
➢recent graduates
➢individuals returning from military service
➢increases in the number of unemployed and

employed individuals seeking other
opportunities, either part-time or full-time
The potential labor supply can be expanded by formal or

on-the-job training.
13

 
To match labor demand and supply, HR
➢compares forecasts for demand and supply of

workers
➢monitors current and future shortages, and

overstaffing. Sometimes, strategic goals must
change as a result
➢uses downsizing to reduce supply and balance

demand
14

Employment Planning and

the Strategic Planning Process
demand for labor Outcomes
demand exceeds recruitment

assess current supply
define establish human resources compare demand
organization corporate goals -- - - - - - - - - - - - - for and supply of
mission and objectives HRMS: human resources
job analysis supply exceeds
demand decruitment
supply of
human resources
15
Job Analysis
Job analysis is a systematic exploration of the

activities within a job.
➢i t d e f i n e s a n d d o c u m e n t s t h e d u t i e s ,
responsibilities, and accountabilities of a job and
the conditions under which a job is performed
See http://www.staffing-and-recruiting-essentials.com/Sample-Job-
Analysis.html for a sample job analysis.
16

Job Analysis
Job analysis methods

1. observation– job analyst watches employees directly or reviews
film of workers on the job
2. individual interview– a team of job incumbents is selected and
extensively interviewed
3. group interview– a number of job incumbents are interviewed
simultaneously
4. structured questionnaire– workers complete a specifically
designed questionnaire
5. technical conference– uses supervisors with an extensive
knowledge of the job
6. diary– job incumbents record their daily activities
The best results are usually achieved with some combination of methods.
17

Job Analysis
understand the purpose review draft

of the job analysis with supervisor
understand the roles of

develop draft
jobs in the organization
benchmark positions seek clarification
determine how to collect

job analysis information
18

Job Analysis
The Occupational Information Network

(O*NET) content model includes:
1. worker characteristics
2. worker requirements
3. experience requirements
4. occupation-specific information
5. workforce characteristics
6. occupational requirements
See http://online.onetcenter.org/
19

Job Analysis
Position analysis questionnaire (PAQ)
➢jobs are rated on 194 elements, grouped

in six major divisions and 28 sections
➢the elements represent requirements

applicable to all types of jobs
➢its quantitative structure allows many job

comparisons, however, it appears to apply
to only higher-level jobs
20

Job Analysis
Job descriptions list:

➢ job title
➢ job identification
➢ job duties/essential functions in order of importance
➢ job specifications - minimal qualifications for job
They are critical to:

➢ describing job to candidates
➢ guiding new-hires
➢ developing performance evaluation criteria
➢ evaluating job’s compensation worth
21

Job Analysis
Almost all HRM
activities are tied
to job analysis; it
recruiting
is the starting labor selection
point for sound relations
HRM.
HR
safety &
planning
health
job analysis
job description
job specifications employee
compensation development
performance employee
management training
career
development
22

Job Analysis
Job design is how a position and its tasks are organized.

➢great job design enriches and motivates through
skill variety task identity task significance
autonomy feedback from job itself
➢flexible work schedules keep employees motivated

and loyal
flex time job sharing telecommuting
➢part of HR planning and job analysis is finding team

members with
technical and interpersonal skills
23

- End of Lesson 5 -
24

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Chapter 1

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

After reading this chapter, students should be able to:

Discuss how cultural environments affect human resource

HRM is a subset of management. It has five main

Overall objective = Increasing Productivity

Understanding Cultural Environments

HRM operates in a global business environment.

Countries have different

HRM helps employees understand other countries’

Understanding Cultural Environments

The Heritage Foundation’s Index of Economic Freedom rates

TOP 10 FREE COUNTRIES TOP 10 LEAST-FREE COUNTRIES

2009 Country Rankings, see www.heritage.org/index/Ranking.aspx

The Changing World of Technology

HRM operates in a technologically changing

Globalization 1.0 Globalization 2.0 Globalization 3.0

3.0 fueled by instant communication and the Internet.

The Changing World of Technology

The IT field is growing.

Knowledge workers focus on the acquisition and

Some books for aspiring knowledge workers:

1. Learning as a Way of Being by Peter B. Vaill

The Changing World of Technology

HRM information systems help to

➢ make decisions faster

➢ clearly define jobs

➢ provide desirable, cost-effective benefits

The Changing World of Technology

HR managers use technology to:

➢ recruit, hire, and train employees

➢ motivate and monitor workers

➢ research fair compensation packages

➢ communicate throughout the

➢ evaluate decentralized employees’

HRM has moved from the melting pot

The U.S. Dept. of the Interior’s Web site

The Civil Rights Acts of 1964 and 1991

Today’s workers want a healthy work/life

The Labor Supply

HR managers monitor the labor supply.

Trend is to rightsize: fit company goals to

For agility, companies build a contingent

Continuous Improvement Programs

accurate concern for

HR managers help workers adapt to continuous improvement changes

It’s all about employee empowerment through

Employee Involvement Concepts

delegation • participative management

See http://workhelp.org/joomla/content/view/284/ for

Other HRM Challenges

Challenges for HRM:

➢ The recession has brought layoffs and low

➢ Increased offshoring means jobs can move

➢ Today’s spate of mergers and acquisitions

Code of ethics: a formal statement of an

HR managers must take part in enforcing ethics

Video: Robert Lane, Ethics at Deere

HRM Functions and

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

» Explain what we mean by strategic human resource

HRM has a dual nature: