HRM Test 1 Revision

Introduction to HRM & HR Strategy

Explain what human resource management is and how it relates to the
management process.
- Human Resource Management (HRM) is the integrated use by an organization of
systems, policies and management practices to recruit, develop and retain employees
who will help the organization meet its goals.
- HRM plays an important role in assuring employee satisfaction, improving performance
and productivity.
- With a strong and equitable HRM system, employees:
• Receive compensation that reflects their level of responsibility.
• Feel more motivated and understand how their work relates to the organization's
mission and values.
• More satisfied with their jobs.
- With a strong and equitable HRM system, organizations:
• Are better equipped to achieve their goals.
• Increase the level of employee performance.
• Save costs through the improved efficiency and productivity of workers.
• Improve their ability to manage change.

HR Strategy
- Talent and Human Capital
- HRM department needs to identify the various competencies required for each job, such as
the skills, abilities, and knowledge required to perform various tasks effectively.
- This will allow them to draw detailed job descriptions that will ultimately guide them to find
the best people for the job.
 - Leadership of an Organization
- An HRM department that can boast past success in choosing the right executives will
generally find it easier to convince the board of its recruits the next time an executive is
required.
- In order to do this job effectively, HR managers need to be active in an advisory capacity
when engaging with other organizational leaders so as to give their input on what is best for
the company’s future.
- Human Resources Planning
- The HRM department plays an important role in helping the business to plan for the future.
- For example: by conducting regular surveys of the employees to determine employee
satisfaction, the HRM department can give important insights to business leaders on what
needs to be done in the future to contribute to a happier workplace.
- Performance Metrics and Corporate Culture
- Through developing well-defined performance metrics, regular performance evaluations,
and schemes to reward employees for high performance and creativity in accomplishing
their tasks, the HRM department will create a high-performance culture where the
interests of the employees are aligned with those of the business, and they are genuinely
motivated to do their best.
- Employees who feel appreciated by their companies and receive recognition for their
achievements in the workplace are likely to want to do more.

The Talent Management Process

• Decide what positions to fill
• Build a pool of job candidates
• Obtain application forms
• Use selection tools
• Decide to whom to make an offer
• Orient, train, and develop employees
• Appraise employees
• Compensate employees to maintain their motivation
Job Analysis
The Basics of Job Analysis
• Work activities
• Human behaviors
• Machines, tools, equipment, and work aids
• Performance standards
• Job context
• Human requirements
What Is Job Analysis?
• Job Analysis – procedure through which you determine the duties and skill requirements of
a job and the kind of person who should be hired for it.
Uses of Job Analysis Information
• Recruitment and selection
• EEO compliance
• Performance appraisal
• Compensation
• Training
Conducting a Job Analysis
1. How will information be used?
2. Background information
3. Representative positions
4. Collect and analyze data
5. Verify
6. Job description and specification
Processes involved in Job Analysis
• Workflow Analysis
• Business Process Reengineering
– Job Redesign
– Job Enlargement
– Job Rotation
– Job Enrichment

Methods for Collecting Job Analysis Information

The Interview
1. Typical Questions
2. Structure Interviews
3. Pros and Cons
4. Interviewing Guidelines
Quantitative Job Analysis Techniques
1. Position Analysis Questionnaire
2. Department of Labor (DOL) Procedure

Personnel Planning and Recruiting

I. Explain the main techniques used in employment planning and forecasting.
Workforce Planning and Forecasting = process of deciding what positions the firm

will have to fill, and how to fill them.

Forecasting Personnel Needs (Labor Demands)

1. Trend Analysis – Is a study of a firm’s past employment needs over a period of years to
predict future needs.

2. Ratio Analysis – is a forecasting technique for determining future staff needs by using
ratios between, for example, sales volume and number of employees
needed.
3. Scatter Plot – is a graphical method used to help identify the relationship between two
variables.

4. Managerial Judgment – Few historical trends, ratios, or relationships will continue unchanged
into the future so managerial judgment is needed to adjust the
forecast.

Forecasting the Supply of Inside Candidates = Personnel Replacement Charts

Forecasting the Supply of Outside Candidates

Predictive Workforce Monitoring

• Most employers review their workforce plans every year or so, but this isn’t
always sufficient.
• Workforce planning therefore often involves paying continuous attention to
workforce planning issues.
• Managers call this predictive workforce monitoring.
Matching Projected Labor Supply and Labor Demand
• Workforce planning should logically culminate in a workforce plan.
• This plan lays out the employer’s projected workforce and skills gaps, as well as
staffing plans for filling these gaps.
Succession Planning
• Succession planning is the ongoing process of systematically identifying,
assessing, and developing organizational leadership to enhance performance.
• It entails three steps: identify key position needs, develop inside candidates, and
assess and choose those who will fill the key positions.