Management

O Chapter 12

Managing Human Resources

 Learning Objectives
12.1 Explain the importance of human resource management and the
human resource management process.
12.2 Describe the external influences that affect the human resource
management process.
12.3 Discuss the tasks associated with identifying and selecting
competent employees.
12.4 Explain how companies provide employees with skills and
knowledge.
12.5 Describe strategies for retaining competent, high-performing
employees.
Why Human Resource Management is
Important and the Human Resource
Management Process
O Human resource management (HRM) can be a
significant source of competitive advantage
O HRM is an important part of organizational
strategies
O The way organizations treat their people can
significantly impact performance
Exhibit 12-2
HRM Process
 Human Resource Planning

O Human resource planning: ensuring that the organization has

the right number and kinds of capable people in the right
places and at the right times
O Two steps:
O Assessing current human resources
O Meeting future HR needs
 Current Assessment

O Job analysis: an assessment that defines jobs and the

behaviors necessary to perform them
O Job description (position description): a written
statement that describes a job
O Job specifications: a written statement of the minimum
qualifications a person must possess to perform a given
job successfully
 Recruitment and Decruitment
O Recruitment: locating, identifying, and attracting capable applicants

Source Advantages Disadvantages

Internet Reaches large numbers of people; can get Generates many unqualified
immediate feedback candidates
Employee Knowledge about the organization May not increase the diversity
referrals provided by current employee; can and mix of employees
generate strong candidates because a
good referral reflects on the
recommender
Company Wide distribution; can be targeted to Generates many unqualified
website specific groups candidates
College Large centralized body of candidates Limited to entry-level positions
recruiting
Professional Good knowledge of industry challenges Little commitment to specific
recruiting and requirements organization
organization
 Exhibit 12-7: Selection Tools
Tool Characteristics

Application Almost universally used

forms Most useful for gathering information
Can predict job performance but not easy to create one that does
Written tests Must be job-related
Include intelligence, aptitude, ability, personality, and interest tests
Are popular (e.g., personality tests; aptitude tests)
Relatively good predictor for supervisory positions
Performance Use actual job behaviors
simulation Work sampling—test applicants on tasks associated with that job; appropriate for
tests routine or standardized work
Assessment center—simulate jobs; appropriate for evaluating managerial
potential

Interviews Almost universally used

Must know what can and cannot be asked
Can be useful for managerial positions
Background Used for verifying application data—valuable source of information
investigations Used for verifying reference checks—not a valuable source of information

Physical Are for jobs that have certain physical requirements

examinations Mostly used for insurance purposes
 Orientation and Training
O Orientation: introducing a new employee to his or her job
and the organization
O Training: the action of introducing a particular skill or
type of behavior at workplace
Training Methods
 On-the-job training includes job rotation, apprenticeships,
assignments, and formal mentoring programs.
 Live classroom lectures.
 E-training (computer-based training) is the fastest growing training
delivery mechanism.
 Employee Performance Management
O Performance management system: establishes
performance standards used to evaluate employee
performance
Compensation and Benefits
O Skill-based pay: a pay system that rewards employees for
the job skills they can demonstrate
O Variable pay: a pay system in which an individual’s
compensation is contingent on performance