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Part 4

Creating the
Human Resource
Advantage

Chapter 10

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Part 4
CHAPTER 9
Motivating the Workforce
CHAPTER 10
Managing Human Resources

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Learning Objectives

LO 10-1 Define human resources management,


and explain its significance.

LO 10-2 Summarize the processes of recruiting


and selecting human resources for a
company.

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Nature of Human Resource Management
Human Resource Management (HRM)
• HRM refers to all activities involved in
determining an organization’s
human resources needs, as well as
acquiring, training and
compensating people to fill those
needs.
• HRM managers are concerned with
maximizing employee satisfaction
while motivating them to
productively meet objectives Today’s organizations are
• Called personnel management in more diverse, with a
greater range of women,
some companies minorities, and older
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workers.
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Planning for Human Resource Needs
During a company’s planning period, the human
resources department:
1. Determines the current number of workers and how
many plan to retire or leave during the planning
period
2. Forecasts how many qualified employees will need
to be hired, or determines if layoffs are required
3. Forecasts the availability of people who will have the
necessary qualifications to meet the organization’s
future needs
4. Develops a strategy which may include outsourcing,
automation or temporary workers
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Job Analysis
• Managers analyze jobs within the
organization (WHY?)
o in order to match people to available
assignments
• Job analysis a process that determines -
through observation and study - all pertinent
(relevant) information about a job, including:
o Specific tasks that comprise it
o Necessary abilities, knowledge and skills,
o The environment in which it will be
performed. 6

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Describes Job/Role Describes Person

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Job Description and Job Specification
Using the job analysis, managers develop:
(Output of Job Analysis)
a. Job Description (Related to the job itself)
– A formal, written explanation of a specific job,
usually including job title, tasks, relationship with
other jobs, physical and mental skills required,
duties, responsibilities and working conditions
b. Job Specification (Related to employee filling the job)
– A description of the qualifications necessary for
a specific job, in terms of education, experience,
and personal and physical characteristics
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Job title: Customer Service Representative
Job Description
Tasks to be performed:
Responding to customer inquiries, resolving complaints, processing
orders, and maintaining customer records
Relationship with other jobs:
Collaborating with sales, marketing, and technical support teams
Duties and responsibilities:
Meeting performance targets, adhering to company policies and
procedures, and providing excellent customer service
Working conditions:
Working in an office environment with occasional shifts outside of
regular business hours.
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Job title: Customer Service Representative
Job Specification
Qualifications:
• High school diploma or equivalent; bachelor's degree preferred
• Minimum of 1-2 years of experience in customer service
• Excellent communication and interpersonal skills
• Ability to remain calm & professional in stressful situations
• Strong problem-solving and critical-thinking skills
• Ability to work independently as well as part of a team
• Proficiency in MS Office & customer service software applications

Physical Requirements:
• Ability to sit and use a computer for extended periods of time
• Ability to speak and listen effectively over the phone and in person
• Ability to lift and carry up to 20 pounds
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Recruiting and Selecting New Employees
Job Description and Job Specification are
used to create recruiting materials.
• Recruiting: means forming a pool of qualified
applicants from which management can select
employees
• Recruiting could be from:
o Internal sources: include current employees
o External sources: include everything else, such as:
✓ LinkedIn, internships, websites posting job openings
✓ Some companies use agencies or executive search
firms, sometimes called headhunters
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Recruiters’ Use of Social Networks in the
Recruitment Process

Source: Jobvite,“Recruiter Nation Survey 2015.” 12

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Selection
Selection: is the process of collecting information
about applicants and using that information to make
hiring decisions
✓ Stages of Selection Process:
a. Application,
b. Interviewing,
c. Testing,
d. Reference checking
✓ Selection process can be lengthy and expensive
but necessary in order to find applicants who
can do the work and fit into the firm’s structure
and culture
✓ Careful hiring saves future hiring expenses 13

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Recruiting VS. Selection
• Recruiting means forming a pool of qualified applicants from
which management can select employees. There are two
sources from which to develop this pool of applicants—internal
and external. Internal sources of applicants include the
organization’s current employees. The cost of hiring current
employees to fill job openings is inexpensive when compared
with the cost of hiring from external sources, and it is good for
employee morale.
• Selection is the process of collecting information about
applicants and using that information to decide which ones to
hire. It includes the application itself, as well as interviewing,
testing, and reference checking. This process can be quite
lengthy and expensive. If an organization finds the “right”
employees through its recruiting and selection process, it will
not have to spend as much money later in recruiting, selecting,
and training replacement employees. 14

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a. The Application
In the first stage of the selection process, individual
fills out application form and perhaps has a brief
interview
✓ Goal: is to get acquainted with the applicants and
weed out those who are obviously not qualified for
the job
✓ Many companies now accept online applications
• May contain a questionnaire that asks more
specific questions:
▪ How they might react in a certain situation
▪ Personality attributes like self-esteem
▪ Ability to interact with people 15

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b. The Interview
Next phase involves interviewing applicants
✓ GOAL: management obtains detailed information
about applicant’s experience and skills, reasons
for changing jobs, attitudes toward the job, and
an idea whether the person would fit in
✓ The interviewer can answer the applicant’s
questions about the job, compensation, working
conditions, company policies, organizational
culture
✓ An interviewee’s (applicant’s) questions may be
as revealing as their answers
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Most Common Questions Asked
During the Interview
1. Tell me about yourself.
2. Why should I hire you?
3. Please tell me about your future objectives.
4. Has your education prepared you for your career?
5. Have you been a team player?
6. Did you encounter any conflict with your previous
professors or employer? What are the steps that you
have taken to resolve this issue?
7. What is your biggest weakness?
8. How would your professors describe you?
9. What are the qualities that a manager should possess?
10. If you could turn back time, what would you change?
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Common Mistakes Candidates Make In
Interviewing
1. Not taking the interview seriously.
2. Not dressing appropriately (dressing down).
3. Not appropriately discussing experience, abilities, and
education.
4. Being too modest about your accomplishments.
5. Talking too much.
6. Too much concern about compensation.
7. Speaking negatively of a former employer.
8. Not asking enough or appropriate questions.
9. Not showing the proper enthusiasm level.
10.Not engaging in appropriate follow-up to the interview.
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c. Testing
Another step in the selection process is testing
✓ Ability tests and performance tests are used to
determine if the applicant has the skills necessary
for the job
o Ability tests (or aptitude tests) are standardised methods of
assessing an individual's performance in different work
related tasks or situations. They measure potential rather
than just academic performance, and are frequently used by
employers as indicators of how people will perform in a work
setting.
✓ May also have to undergo physical examinations to
determine their suitability for some jobs
✓ Many companies require an applicant to be screened
for illegal drug use
• 10% of full-time employees had a recent substance abuse problem
• Loss in productivity from substance abuse is high 22

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Personality Tests
• Aptitude, IQ or personality
tests may be used to assess
an applicant’s potential for a
certain kind of work and
his/her ability to fit into the
organization.
• The Myers-Briggs Type
Indicator (MBTI) test is one of
the most commonly used
tests; to assess an
applicant’s potential for a
certain kind of job
• i.e, extroversion and a love of
people would be good qualities
for a retail job. 23

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Please feel free to take these personality tests

https://my-personality-test.com/personality-type-
indicator

https://www.16personalities.com/free-personality-test

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d. Reference Checking

Before making a job offer, company should check


references
✓ Verifying educational background and previous
work experience
✓ An Internet search is often done to determine
social media or other public activities
✓ Public companies likely to do a more extensive
background search
✓ Applicant’s may misrepresent themselves on
their applications and resumes
✓ Often overlooked stage in the selection process 25

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