Management 

Skills II: Chapter 6: Human Resource Management
Planning and Organizing

Strategic Human Resource 

II
MANAGEMENT Management

SKILLS • Human Resource Management (HRM)
–Activities in which managers engage to attract and 
PLANNING AND retain employees and ensure they perform at a 
high level and contribute 
g
ORGANIZING to the accomplishment 
of organizational goals.
Chapter 6: 
Human Resource Management

Strategic Human Resource  Components of a Human Resource 
Management Management System
• Strategic Human Resource Management
– The process by which managers design the 
components of a HRM system to be consistent 
with each other with other elements of
with each other, with other elements of 
organizational architecture, and with the 
organization’s strategy and goals.

Figure 6.1

The Legal Environment of HRM  The Legal Environment of HRM 

• Equal Employment Opportunity (EEO) • Contemporary challenges for managers
– Established by US Law – How to eliminate sexual harassment.
– The equal right of all citizens to the opportunity to  – How to make accommodations for employees 
obtain employment regardless of their gender age
obtain employment regardless of their gender, age,  with disabilities
with disabilities.
race, country of origin, religion, or disabilities. – How to deal with employees who have substance 
– Equal Employment Opportunity Commission  abuse problems.
(EEOC) enforces employment laws. – How to manage HIV‐positive employees and 
employees with AIDs.

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Management Skills II: Chapter 6: Human Resource Management
Planning and Organizing

The Recruitment and 
Recruitment and Selection Selection System
• Recruitment
– Activities in which managers engage to develop a 
pool of candidates for open positions.
• Selection
– The process managers use to determine the 
relative qualifications of job applicants and their 
potential for performing well in a particular job.

Figure 6.2

Human Resource Planning Human Resource Planning
• Human Resource Planning (HRP) • Outsourcing
– Activities in which managers engage to forecast  – Using outside suppliers and manufacturers to 
current and future human resource needs. produce goods and services.
• Demand forecast – Using contract workers rather than hiring them
g g
– Estimates the qualifications and numbers of  • More flexible for the firm.
employees the firm will need given its goals, strategies. • Provides human capital at a lower cost.
• Supply forecast
– Estimates the availability and qualifications of current 
employees now and in the future, as well as the supply 
of qualified workers in the external labor market.

Job Analysis Job Analysis
• Job Analysis • Job analysis methods
– Identifying the tasks, duties and responsibilities  – Observing what current workers do.
that make up a job and the knowledge, skills, and  – Having workers and managers fill out 
abilities needed to perform the job.
p j questionnaires.
questionnaires
– Should be done for each job in the organization.

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Management Skills II: Chapter 6: Human Resource Management
Planning and Organizing

Recruitment Recruitment
• External Recruiting • Internal Recruiting
– Looking outside the organization for people who  – Managers turn to existing employees to fill open 
have not worked at the firm previously. positions. 
• Newspaper
Newspaper advertisements, open houses, on‐campus 
advertisements open houses on‐campus
recruiting, employee referrals, and through the Internet.
• Benefits of internal recruiting:
fi fi l ii
– Applicants are familiar with the organization.
– Managers already know candidates.
– Can help boost employee motivation and morale.

Honesty in Hiring The Selection Process
• Realistic Job Preview • Selection process
– Providing an honest assessment of the advantages  – Managers determine 
and disadvantages of a job and organization. whether each applicant 
– Can reduce the number of new hires who quit 
Can reduce the number of new hires who quit is qualified for the
is qualified for the 
when their new job and/or organization fails to  position and likely to be 
meet unrealistic expectations. a good performer.

Reliability and  Validity of 
Selection Tools
Tools and Tests
• Reliability
– The degree to which a tool measures the same 
thing consistently each time it is used
• Validity 
Validity
– The degree to which a test measures what it is 
supposed to measure

Figure 6.3

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Management Skills II: Chapter 6: Human Resource Management
Planning and Organizing

Training and Development Training and Development
• Training • Needs Assessment
– Teaching organization members how to perform  – Determining which employees need training or 
current jobs and helping them to acquire the  development and what skills 
knowledge and skills they need to be effective  or knowledge they need
or knowledge they need 
performers.
to acquire. 
• Development
– Building the knowledge and skills of organization 
members to enable them to take on new 
responsibilities and challenges.

Performance Appraisal and 
Training and Development Feedback
• Performance Appraisal
– The evaluation of employees’ job performance 
and contributions to their organization.
• Types of Performance Appraisal
Types of Performance Appraisal
– Traits: personal characteristics that are relevant to 
job performance (skills, abilities, personality)
– Behaviors: actual on the job actions and behaviors
– Results: what is actually accomplished
Figure 6.4

Subject Measures of Performance: Subject Measures of Performance:
Graphic Rating Scale Behavioral Observation Scale

Figure 6.5
Figure 6.5

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Management Skills II: Chapter 6: Human Resource Management
Planning and Organizing

Who Appraises Performance? Effective Performance Feedback
• Formal appraisals
– An appraisal conducted at a set time during the 
year and based on performance dimensions that 
were specified in advance
were specified in advance.
• Informal appraisals
– An unscheduled appraisal of ongoing progress and 
areas for improvement.

Figure 6.6

Pay and Benefits Pay and Benefits
• Pay • Pay Structure CEO

– Includes employees’ base salaries, pay raises, and  – The arrangement of 
bonuses.
jobs into categories  VP VP VP

– Determined by characteristics of the organization  based on their

based on their 
and the job and levels of performance.
relative importance  Director Director

• Pay level to the organization 
– The relative position of an organization’s  and its goals, level of  Dept Manager

incentives in comparison with those of other firms  skills, and other 
in the same industry employing similar kinds of  characteristics.
workers.

Pay and Benefits Labor Relations
• Benefits • Labor Relations
– Legally required: social security, workers’  – Activities in which managers engage to ensure 
compensation, unemployment insurance. they have effective working relationships with the 
– Voluntary: health insurance, retirement, day care.
y , , y labor unions that represent their employees
labor unions that represent their employees 
• Cafeteria‐style plans  interests.
– Allow employees to choose the best mix of 
benefits for them.
– Can be hard to manage.

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Management Skills II: Chapter 6: Human Resource Management
Planning and Organizing

Unions Unions
• Unions • Collective bargaining
– Represent worker’s interests to management in  – Negotiation between labor and management to 
organizations. resolve conflicts and disputes about issues such as 
– The power that a manager has over an individual 
The power that a manager has over an individual working hours wages benefits working
working hours, wages, benefits, working 
worker causes workers to join together in unions  conditions, and job security.
to try to prevent this.