Human Resource Management

CHAPTER 1 – HUMAN RESOURCE

MANAGEMENT: A STRATEGIC
FUNCTION
Human resource management - Activities designed to provide for and coordinate the
human resources of an organization.
The value of an organization’s human resources frequently becomes evident when the
organization is sold. Often the purchase price is greater than the total value of the
physical and financial assets. This difference, sometimes called goodwill, reflects the
value of an organization’s human resources.
Human resource management is a modern term for what was traditionally referred to
as personnel administration or personnel management.

1. HUMAN RESOURCE FUNCTION

A. Human resource function - Tasks and duties human resource managers perform.
The Society for Human Resource Management (SHRM) has identified six major
functions of human resource management:
i. Human resource planning, recruitment, and selection.
ii. Human resource development.
iii. Compensation and benefits.
iv. Safety and health.
v. Employee and labor relations.
vi. Human resource research.
B. Talent management - The broad spectrum of HR activities involved in obtaining and
managing the organization’s human resources.
C. Who performs the human resource function?
i. Operating manager - Person who manages people directly involved with the
production of an organization’s products or services (e.g., production manager
in a manufacturing plant, loan manager in a bank).
ii. Human resource generalist - Person who devotes a majority of working time
to human resource issues, but does not specialize in any specific areas.
iii. Human resource specialist - Person who devotes a majority of working time to
human resource issues, but does not specialize in any specific areas.
 D. Human resource department
Provide support to operating managers on all human resource matters
Customarily organizes and coordinates hiring and training; maintains personnel
records; acts as a liaison between management, labor, and government; and coordinates
safety programs
Requires close coordination between the human resource department and the
operating managers.
It is helpful to view the human resource department as providing three types of
assistance: (1) specific services, (2) advice, and (3) coordination.
Human resource department normally acts in an advisory capacity and does not have
authority over operating managers

2. CHALLENGES FOR TODAY’S HUMAN RESOURCE MANAGERS

HRM is much more integrated into both the management and the strategic planning
process of the 3 organization.
Diversity in the work force encompasses many different dimensions, including sex, race,
national origin, religion, age, sexual orientation, and disability. Other challenges are the
result of changes in government requirements, organizational structures, technology,
and management approaches.
Today’s human resource managers currently face several challenges. Some of the more
significant issues include an increasingly diverse workforce and changes in government
regulations, organization structures, technology, and managerial approaches.
A. Diversity in the Workforce
Half the new entrants during that time span will be women.
In addition to the possibility of having differing educational backgrounds, immigrant
employees are likely to have language and cultural differences. Organizations must
begin now to successfully integrate these people into their workforces
The increase in the percentage of older employees will have a mixed effect. The older
workforce will likely be more experienced, reliable, and stable, but possibly less
adaptable to change and retraining.
i. Globalization of HR - Defining diversity in global terms means looking at all
people and everything that makes them different from one another, as well as
the things that make them similar. Key to a successful global HR program is to
rely on local people to deal with local issues. Key human resource–related
challenges facing global companies:

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 1. Cultural differences (53 percent).
2. Compliance with data-privacy regulations (42 percent).
3. Varying economic conditions across countries (36 percent).
4. Time zone differences (32 percent).
5. Legal environment (32 percent).
6. International compliance (26 percent)
ii. Challenges and Contributions of Diversity – organization must get away from
the tradition of fitting employees into a single corporate mold. Organizations
must create new human resource policies to explicitly recognize and respond to
the unique needs of individual employees. Greater diversity will not only create
certain specific challenges but also make some important contributions.
Communication problems are certain to occur, including misunderstandings as
well as the need to translate verbal and written materials into several languages.
Greater diversity presents new opportunities. Diversity contributes to creating
an organizational culture that is more tolerant of different behavioral styles and
wider views.
B. Regulatory Changes - Organizations face new regulations routinely issued in the
areas of environment, safety and health, equal employment opportunity, pension
reform, and quality of work life. Many of the new changes to health care and health
insurance will have to be implemented by human resource personnel and will have
a significant impact on their activities.
C. Structural Changes to Organization
i. Downsizing - Laying off large numbers of managerial and other employees.
ii. Outsourcing - Subcontracting work to an outside company that specializes in
that particular type of work.
iii. Rightsizing - Continuous and proactive assessment of mission-critical work and
its staffing requirements.
iv. Reengineering - Fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in cost, quality, service, and speed.
D. Technological and Managerial Changes within Organizations
In addition to their uses in performing the traditional functions of accounting and
payroll calculations, computerized information systems are now being used to maintain
easily accessible employee data that are valuable in job placement and labor utilization.
Since the introduction of eHR in the 1990s, the fundamentals of eHR products haven’t
changed because the basic problems they address are the same.
The costs have dropped and what used to take months to implement can now be done in
hours. Today’s employees are much more receptive to being sent to a Web site for
information.

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 i. Telecommuting - Working at home by using an electronic linkup with a central
office.
ii. Empowerment - Form of decentralization that involves giving subordinates
substantial authority to make decisions.
iii. Self-managed work teams - Groups of peers are responsible for a particular area
or task.
E. Human Resource Management in the Future
If tomorrow’s human resource managers are to earn the respect of their colleagues and
top management, they must overcome certain negative impressions and biases
sometimes associated with human resource management.
Human resource managers should become well-rounded businesspeople. The following
suggestions can help human resource managers become more familiar with their
businesses:
i. Know the company strategy and business plan.
ii. Know the industry.
iii. Support business needs.
iv. Spend more time with the line people.
v. Keep your hand on the pulse of the organization.
vi. Learn to calculate costs and solutions in hard numbers.
HR professionals who thoroughly understand their businesses will help overcome the
common idea that human resource people are unfamiliar with the operating problems
and issues facing the organization.
Human resource managers should also become fully knowledgeable about present and
future trends and issues in HR and other related fields.
Finally, human resource managers should promote effective human resource utilization
within the organization. Human resource managers should stress the importance of
increasing profits through effectively using the organization’s human resources.

3. ORGANIZATIONAL PERFORMANCE AND THE HUMAN RESOURCE

MANAGER
Human resource managers can have a direct impact on organizational performance
in a number of specific ways:
i. Reducing unnecessary overtime expenses by increasing productivity during a
normal day.
ii. Staying on top of absenteeism and instituting programs designed to reduce
money spent for time not worked.
iii. Eliminating wasted time by employees through sound job design.

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 iv. Minimizing employee turnover and unemployment benefit costs by practicing
sound human relations and creating a work atmosphere that promotes job
satisfaction.
v. Installing and monitoring effective safety and health programs to reduce lost-
time accidents and keep medical and workers’ compensation costs low.
vi. Properly training and developing all employees so they can improve their value
to the company and do a better job of producing and selling high-quality
products and services at the lowest possible cost.
vii. Decreasing costly material waste by eliminating bad work habits and attitudes
and poor working conditions that lead to carelessness and mistakes.
viii. Hiring the best people available at every level and avoiding overstaffing.
ix. Maintaining competitive pay practices and benefit programs to foster a
motivational climate for employees.
x. Encouraging employees, who probably know more about the nuts and bolts of
their jobs than anyone else, to submit ideas for increasing productivity and
reducing costs.
xi. Installing human resource information systems to streamline and automate
many human 20 resource functions.
A. Metrics and the HR Scorecard
i. Metrics - any set of quantitative measures used to assess workforce
performance. Ex. analysis of the cost per hire.
ii. HR Scorecard - A measurement and control system that uses a mix of
quantitative and qualitative measures to evaluate performance.

2. COMMUNICATING HUMAN RESOURCE PROGRAMS

Communication - Transfer of information that is meaningful to those involved.
A human resource manager’s first step in becoming an effective communicator is to
develop an appreciation for the importance of communication. The problem is not that
human resource managers tend to belittle the importance of communication; rather,
they often fail to think consciously about it.
A. Guidelines for Communicating Human Resource Programs
i. Avoid communicating in peer group or “privileged-class” language – level of
communication should be determined by the receiving audience and not by the
instigator of the communication.
ii. Don’t ignore the cultural and global aspects of communication - Be careful with
words, symbols, and expressions.
iii. Back up communications with management action - Promises made either orally
or in writing must be backed up by actions if they are to succeed.

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 iv. Periodically reinforce employee communications
v. Transmit information and not just data
1. Data - Raw material from which information is developed composed of
facts that describe people, places, things, or events and that have not been
interpreted.
2. Information - Data that have been interpreted and that meet a need of
one or more managers.

Managing Human Resources Week 2

CHAPTER 4 | DIVERSITY AT WORK

4. WORKFORCE DIVERSITY: AN ESSENTIAL COMPONENT OF HR

STRATEGY
Managing diversity means establishing a heterogeneous workforce (including white
men) to perform to its potential in an equitable work environment where no member or
group of members has an advantage or a disadvantage.
Managing diversity is not the same thing as managing affirmative action. Affirmative
action refers to actions taken to overcome the effects of past or present practices,
policies, or other barriers to equal employment opportunity.
Over the long term, however, the challenge is to create a work setting in which each
person can perform to his or her full potential and therefore compete for promotions
and other rewards on merit alone.
There are five reasons diversity has become a dominant activity in managing an
organization’s human resources:
i. The shift from a manufacturing to a service economy
ii. Globalization of markets
iii. New business strategies that require more teamwork
iv. Mergers and alliances that require different corporate cultures to work together
v. The changing labor markets

A. The service economy

Manufacturing will maintain its share of total output, while productivity in this sector
increases and the need for additional labor decreases. Virtually all of the growth in new
jobs will come from service producing industries.

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Service employees need to be able to “read” their customers—to understand them, to
anticipate and monitor their needs and expectations, and to respond sensitively and
appropriately to those needs and expectations.
A growing number of companies now realize that their workforces should mirror their
customers. Similarities in culture, dress, and language between service workers and
customers creates more efficient interactions between them and better business for the
firm.
When companies discover they can communicate better with their customers through
employees who are similar to their customers, those companies then realize they have
increased their internal diversity. And that means they have to manage and retain their
new, diverse workforce.

B. The globalization of markets

With more options to choose from, customers have more power to insist that their
needs and preferences be satisfied. To satisfy them, firms have to get closer and closer
to their customers.
Either way, diversity must be managed—by working through domestic diversity or by
merging national as well as corporate cultures.

C. New business strategies that require more teamwork

Firms have found that only through work teams can they execute newly adopted
strategies stressing better quality, innovation, cost control, or speed. Further, team
membership is often fluid, evolving according to changing task requirements. This has
created a rich training agenda, as members from diverse backgrounds must learn to
work productively together.
Diversity is an inevitable byproduct of teamwork, especially when teams are drawn
from a diverse base of employees. Coordinating team talents to develop new products,
better customer service, or ways of working more efficiently is a difficult, yet essential,
aspect of business strategy.

D. Mergers and strategic international alliances

A key source of problems in mergers, acquisitions, and strategic international alliances
is differences in corporate cultures. Corporate cultures may differ in many ways, such as
the customs of conducting business, how people are expected to behave, and the kinds
of behaviors that get rewarded.

E. Changing labor market

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 The first step to attaining the advantages of diversity is to teach all employees to
understand and value different races, ethnic groups, cultures, languages, religions,
sexual orientations, levels of physical ability, and family structures. Such teams
incorporate practices that provide their members with the information, skills,
incentives, and responsibility to make decisions that are essential to innovate, to
improve quality, and to respond rapidly to change.

F. Diversity at work – a problem for many organization

Not surprisingly, therefore, a 2008 study of more than 475,000 professionals and
managers from 20 large corporations found that minorities and women quit companies
much more often than white males do, especially during the early period of
employment, although over time, racial differences in quit rates disappear.
So how should you handle questions and concerns about diversity? Here are some
suggestions: inquire (“What makes you say that?”), show empathy (“It is frustrating
when you can’t understand someone”), educate (debunk myths, provide facts, explain),
state your needs or expectations (“Let’s develop an approach we can both live with”), and
don’t polarize people or groups (“What might be other reasons for this behavior?”).

2. CULTURE – THE FOUNDATION OF GROUP DIFFERENCES

Culture refers to the characteristic behavior of people in a country or region. “Valuing
diversity” means more than feeling comfortable with employees whose race, ethnicity,
or gender differ from your own. It means more than accepting their accents or language,
their dress or food. It means learning to value and respect styles and ways of behaving
that differ from yours.

A. African American in the workforce

African Americans will make up about 12.3 percent of the U.S. civilian work force by the
year 2016. Among companies that are committed to making diversity a competitive
advantage, here are some other practices to consider:
vi. Hire only those search firms with a solid track record for providing diverse
slates of candidates for positions at all levels.
vii. Forge links with colleges and universities with significant numbers of minority
students, and bring real jobs to the recruiting table.
viii. Start formal mentoring and succession programs to ensure that minorities are in
the leadership pipeline.
ix. Include progress on diversity issues in management performance reviews and
compensation.

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 x. Set specific goals in critical areas, such as the percentages of minorities and
women hired, promoted, and in the overall workforce. Also set goals for the
amount of business conducted with outside vendors owned by minorities and
women.
xi. Provide all employees with confidential outlets to air and settle grievances, for
example, telephone and e-mail hot lines.

B. Hispanics in the workforce

Hispanics, who will comprise 16.4 percent of the civilian labor force by the year 2016,
experience many of the same disadvantages as African Americans. However, the term
Hispanic encompasses a large, diverse group of people who come from distinctively
different ethnic and racial backgrounds and who have achieved various economic and
educational levels. Hispanics own a total of 1.6 million businesses in the United States
generating $222 billion in revenue.
Hispanics are also getting wealthier, as mean household income grew 11.2 percent in
real terms from 1990 to 2005, to $35,967.

C. Asian Americans in the workforce

The share of the workforce comprised by Asian Americans was 4.6 percent in 1998 and
is expected to reach an estimated 5.3 percent by 2016, largely due to immigration. It is
propelled by the fact that Asian Americans are better educated than the average
American. Thus, many hold top jobs, and the increasing number of successful Asian
entrepreneurs also helps to increase the group’s buying power.

D. Women in the workforce

Over the past 30 years, women have raised their expectations and levels of aspiration
sharply higher, largely because of the women’s movement, coupled with landmark civil
rights legislation and well-publicized judgments against large companies for gender
discrimination in hiring, promotion, and pay. So much for the myth that women don’t
hold high-level business jobs because they supposedly don’t aim high enough.
Five key forces account for these changes:
i. Changes in the family
ii. Changes in education
iii. Changes in self-perception
iv. Changes in technology
v. Changes in economy

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The clearest picture we need to see from the data reflecting all these changes is this: If
all the working women in the United States were to quit their jobs tomorrow and stay at
home to cook and clean, businesses would disintegrate. It is important that executives
see that creative responses to work/family dilemmas are in the best interests of both
employers and employees.

E. Age-based diversity
i. The silent generation (born 1930–1945) was born in the middle of the Great
Depression Many went to the best colleges, were courted by corporations, rose
rapidly, and were paid more than any other group in history. In return they
embraced their elders’ values and became good “organization men”
ii. The baby-boom generation (born 1946–1964) currently accounts for 78
million people and 55 percent of the workforce. The boomers believe in rights to
privacy, due process, and freedom of speech in the workplace; that employees
should not be fired without just cause; and that the best should be rewarded
without regard to age, gender, race, position, or seniority. Boomers represent a
huge base of knowledge and talent in organizations.
iii. Generation X, also known as “baby busters” (born 1965–1980), represent
approximately 50 million Americans, or about one-third of the workforce. They
have grown up in times of rapid change, both social and economic. Hurt more by
parental divorce and having witnessed corporate downsizing first-hand, they
tend to be independent and cynical and do not expect the security of long-term
employment. On the other hand, they also tend to be practical, focused, and
future oriented. Five characteristics define the kinds of work environments that
Gen Xers find most rewarding: (1) control over their own schedules, (2)
opportunity to improve their marketable skills, (3) exposure to decision makers,
(4) the chance to put their names on tangible results, and (5) clear areas of
responsibility.
iv. Generation Y (born after 1980 to about 2000) includes offspring of the baby
boomers as well as an influx of immigrants throughout the 1990s. Generation Y
has grown up amid more sophisticated technologies and has been exposed to
them earlier than members of Generation X ever were. Multitasking is easy for
them. The good news is that Generation Y will be good at engaging in multiple
tasks, filtering out distractions, and juggling numerous projects. The bad news:
short attention spans, the constant need for stimulation/entertainment, and a
blurring of the lines between work and leisure time while on the job.

F. Intergenerational conflict

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 Evidence indicates that the incidence of intergenerational conflict is low, and that many
myths exist about generational differences. When it does occur, such conflict seems to
stem from three primary causes: work ethic, organizational hierarchy, and managing
change.
In terms of solutions to intergenerational conflict, it appears that separating workers
from different generations does not work. What does work is communicating
information in multiple ways thereby addressing different generations’ learning styles.
Two other solutions are collaborative decision making and training managers to handle
generational differences.

5. MANAGING DIVERSITY
A. Racial and ethnic minorities
To derive maximum value from a diverse workforce, corporations now realize that it’s
not enough just to start a mentoring program or to put a woman on the board of
directors. Rather, they have to undertake a host of programs—and not just inside the
company. More specifically, to attract and retain racial and ethnic minorities, consider
taking the following steps:
i. Focus on bringing in the best talent, not on meeting numerical goals.
ii. Establish mentoring programs among employees of same and different races.
iii. Hold managers accountable for meeting diversity goals.
iv. Develop career plans for employees as part of performance reviews.
v. Promote racial and ethnic minorities to decision-making positions, not just to
staff jobs.
vi. Diversify the company’s board of directors.

B. Female workers
Here are six ways that firms today provide women with opportunities not previously
available to them:
i. Alternative career paths.
ii. Extended leave
iii. Flexible scheduling
iv. Flextime
v. Job sharing
vi. Teleworking

C. Generations X and Y
Here are 11 suggestions for integrating Generations X and Y into the workforce:

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 i. Explain to them how their
work contributes to the
bottom line.
ii. Always provide full disclosure.
iii. Create customized career
paths.
iv. Allow them to have input into
decisions.
v. Provide public praise.
vi. Treat them as sophisticated
consumers.
vii. Encourage the use of mentors.
viii. Provide access to innovative
technology.
ix. Consider new benefits and
compensation strategies.
x. Offer opportunities for
community involvement.
xi. Emphasize “You can do it your
way—in a collegial work
environment.”

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In terms of compensation, these generations are used to having and spending money.

D. Older workers
Here are six priorities to consider to maximize the use of older workers:
i. Age/experience profile. Executives should look at the age distribution across
jobs, as compared with performance measures, to see what career paths for
older workers might open in the future and what past performance measures
have indicated about the kinds of knowledge, skills, abilities, and other
characteristics necessary to hold these positions.
ii. Job-performance requirements. Companies should then define more precisely
the types of abilities and skills needed for various posts. Clear job specifications
must serve as the basis for improved staffing, job design, and performance-
management systems.
iii. Performance management. Not only must a firm analyze the requirements of
jobs better, there must also be improved ways of managing the performance of
workers in those jobs.
iv. Workforce-interest surveys. Once management understands the abilities its
older workers have, it must determine what they want. The idea is to survey
workers to determine their career goals so that the ones who are capable of
achieving their goals won’t stall.
v. Training and counseling. To meet the needs of the workforce remaining on the
job, firms need to develop training programs to avoid mid- career plateaus (i.e.,
performance at an acceptable but not outstanding level, coupled with little or no
effort to improve one’s current performance), as well as training programs to
reduce obsolescence (the tendency for knowledge or skills to become out of
date).
vi. The structure of jobs. To whatever degree management may consider changing
older workers’ work conditions, such as work pace or the length or timing of the
workday, it should explore the proposed changes jointly with the workforce.

E. Workers with disability

Consider several possible modifications:
i. Placing a desk on blocks, lowering shelves, and using a carousel for files are all
inexpensive accommodations that enable people in wheelchairs to be employed.
ii. Installing telephone amplifiers for hearing-impaired individuals or magnifying
iii. glasses for sight-impaired individuals is relatively easy. Much to their delight,
employers have found that these systems helped them gain new customers with
hearing or sight impairments.
 iv. Flextime, job sharing, and other modifications to the work schedule that enable
mothers with young children to continue to work are being used to help
employees with AIDS, cancer, and other life-threatening diseases to continue to
work.

F. LGBT Employees
Efforts like these are surfacing some key lessons:
i. Targeting diverse clients drives the need for a similarly diverse work force.
ii. To drive the diversity initiative throughout the company, it must be integrated
into business plans, with a requirement to measure specific results.
iii. Leaders of the efforts to acquire diverse clients must not only have client
acquisition expertise in that specific market segment, but also have strong
project-management experience.
Human Resource Management Week 4

CHAPTER 4 | JOB ANALYSIS AND

JOB DESIGN
Job analysis is “the process of determining and reporting pertinent information
relating to the nature of a specific job. It is the determination of the tasks that comprise
the job and the skills, knowledge, abilities, and responsibilities required of the holder
for successful job performance. Job analysis serves as the beginning point of many
human resource functions.
Job design is the process of structuring work and designating the specific work
activities of an individual or group of individuals to achieve certain organizational
objectives.
In practice, most job analyses are performed on existing jobs that have previously been
designed. Job analysis and job design processes are usually conducted by industrial
engineers and entry level human resource specialists.

6. BASIC TERMINOLOGY
Today, the word job has different meanings depending on how, when, or by whom it is
used. It is often used interchangeably with the words position and task.
The simplest unit of work is the micromotion. Micromotion - Simplest unit of work;
involves very elementary movements, such as reaching, grasping, positioning, or
releasing an object.

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 An aggregation of two or more micromotions forms an element. Element – Aggregation
of two or more micromotions; usually thought of as a complete entity, such as picking
up or transporting an object.
A grouping of work elements makes up a work task. Task – Consisting of one or more
elements; one of the distinct activities that constitute logical and necessary steps in the
performance of work by an employee. A task is performed whenever human effort,
physical or mental, is exerted for a specific purpose
Related tasks compromise the duties of a job. Duties – One or more tasks performed in
carrying out a job responsibility.
One task, as part of this duty, would be to respond to all routine inquiries.
Responsibilities – Obligations to perform certain tasks and assume certain duties.
Duties, when combined with responsibilities (obligations to be performed), define a
Position – Collection of tasks and responsibilities constituting the total work
assignment of a single employee.
A group of positions that are identical with respect to their major tasks and
responsibilities form a Job – Group of positions that are identical with respect to their
major or significant tasks and responsibilities and sufficiently alike to justify their being
covered by a single analysis. One or many persons may be employed in the same job.
The difference between a position and a job is that a job may be held by more than one
person, whereas a position cannot.
A group of similar jobs forms an occupation. Occupation – A grouping of similar jobs or
job classes.

7. JOB ANALYSIS
Job analysis is the process of determining and reporting pertinent information relating
to the nature of a specific job. The end product of a job analysis is a job description,
which is a written description of the actual requirements of the job. Job descriptions are
discussed later in this section. These activities include the following:
i. Job definition - A job analysis results in a description of the duties and
responsibilities of the jobs.
ii. Job redesign – A job analysis often indicates when a job needs to be redesigned.
iii. Recruitment – Process of seeking and attracting a pool of people from which
qualified candidates for job vacancies can be chosen. A job analysis not only
identifies the job requirements but also outlines the skills needed to perform the
job.
iv. Selection and placement – Process of choosing from those available the
individuals who are most likely to perform successfully in a job. A job analysis
determines the importance of different skills and abilities.

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 v. Orientation – Introduction of new employee to the organization, work unit, and
job.
vi. Training – Learning process that involves the acquisition of skills, concepts,
rules, or attitudes to increase employee performance.
vii. Career counseling – Managers and human resource specialists are in a much
better position to counsel employees about their careers when they have a
complete understanding of the different jobs in the organization.
viii. Employee safety – A thorough job analysis often uncovers unsafe practices
and/or environmental conditions associated with a job.
ix. Performance appraisal – The objective of performance appraisal is to evaluate
an individual employee’s performance on a job.
x. Compensation – A proper job analysis helps ensure that employees receive fair
compensation for their jobs.
When performing a job analysis, the job and its requirements (as opposed to the
characteristics of the person currently holding the job) are studied. The analyst lists the
tasks that comprise the job and determines the skills, personality characteristics,
educational background, and training necessary for successfully performing the job.

a. Products of Job Analysis

xi. Job description – concentrates on describing the job as it is currently being
performed.
xii. Job specification – concentrates on the knowledge, skills, abilities, and other
characteristics (KSAOs) needed to perform the job.
Often the job description is not periodically updated to reflect changes that have
occurred in the job.

B. Job analysis method

Four of the most frequently used methods are discussed below, as is O*NET, an
important tool that all these methods can utilize.
i. Observation
Observation is a method of analyzing jobs that is relatively simple and straightforward.
This information includes such things as what was done, how it was done, how long it
took, what the job environment was like, and what equipment was used.
1. Motion study (sometimes called methods study) involves determining the
most efficient way to do a task or job.
2. Time study is the analysis of a job or task to determine the elements of
work required to perform it, the order in which these elements occur, and
the times required to perform them effectively.

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One drawback to using the observation method is that the observer must be carefully
trained to know what to look for and what to record.
A second drawback of most observation methods is that the application is somewhat
limited to jobs involving short and repetitive cycles.
On the other hand, the job analyst can use direct observation to get a feel for a particular
job and then combine this method with another method to thoroughly analyze the job.
Another possibility is to use work sampling. Work sampling is a type of observation
method based on taking statistical samples of job actions throughout the workday, as
opposed to continuous observation of all actions.

ii. Interviews
The interview method requires that the person conducting the job analysis meet with
and interview the jobholder.
The major drawback to the interview method is that it can be extremely time-
consuming because of the time required to schedule, get to, and actually conduct the
interview.

iii. Questionnaires
Job analysis questionnaires are typically three to five pages long and contain both
objective and open-ended questions. The questionnaire method can obtain information
from a large number of employees in a relatively short time period.
A major disadvantage is the possibility that either the respondent or the job analyst will
misinterpret the information.
1. Position Analysis Questionnaire (PAQ) - a highly specialized
instrument for analyzing any job in terms of employee activities. It uses
six major categories of employee activities. Using a five-point scale, one
can analyze each description for the degree to which it applies to the job.
The primary advantage of the PAQ is that it can be used to analyze almost
any type of job. The major disadvantage is the sheer length of the
questionnaire.
2. Management Position Description Questionnaire (MPDQ) - The MPDQ
is a highly structured questionnaire designed specifically for analyzing
managerial jobs. It contains 208 items relating to managerial
responsibilities, restrictions, demands, and other miscellaneous position
characteristics

iv. Functional Job Analysis

Functional job analysis (FJA) is a job analysis method developed by the Employment
and Training Administration of the Department of Labor. FJA uses standardized
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statements and terminology to describe the content of jobs. Functional job analysis
collects detailed task statements and then rates them according to function level or
function orientation. Function level describes how an employee interacts with data,
people, and things.

v. Occupational Information Network (O*NET)

The United States’ primary source of occupational information. The O*NET database is a
comprehensive online database of employee attributes and job characteristics.
www.onet.center.org It provides definitions and concepts for describing employee
attributes and workplace requirements that can be broadly understood.
Called the Content Model, this model encapsulates the key features of an occupation into
a standardized, measurable set of variables called “descriptors.” The model starts with
six domains that describe the day-to-day aspects of the job and the qualifications and
interests of the typical worker.
The model also allows occupational information to be applied across jobs, sectors, or
industries (cross-occupation descriptors) and within occupations (occupational-
specific descriptors).

C. The ADA and job analysis

The ADA and the ADAAA also require the identification of the essential functions of each
job and a reasonable accommodation to the disabilities of qualified individuals.
An essential job function is one that is fundamental to successful performance of the
job; in contrast, marginal job functions may be performed at certain times but are
incidental to the main purpose of the job. A particular job function is considered
marginal if its performance is a matter of convenience and not a necessity.
Reasonable accommodation means the employer may be required to alter the
conditions of a particular job so as to enable the candidate to perform all essential
functions.

D. Potential problem with Job Analysis

i. Top management support is missing. Top management should at least make
it clear to all employees that their full and honest participation is extremely
important to the process.
ii. Only a single means and source are used for gathering data. As discussed in
this chapter, there are many proven methods for gathering job data.
iii. The supervisor and the jobholder do not participate in the design of the
job analysis procedure. Too many analyses are planned and implemented by
one person who assumes exclusive responsibility for the project.

18
 iv. No training or motivation exists for jobholders. Job incumbents are
potentially a great source of information about the job. Unfortunately, they are
seldom trained or prepared to generate quality data for a job analysis.
v. Employees are not allowed sufficient time to complete the analysis. Usually
a job analysis is conducted as though it were a crash program, and employees
are not given sufficient time to do a thorough job analysis.
vi. Activities may be distorted. Without proper training and preparation,
employees may submit distorted data, either intentionally or not.
vii. Participants fail to critique the job. Many job analyses do not go beyond the
initial phase of reporting what the jobholder currently does.

8. JOB DESIGN
As mentioned in the introduction to this chapter, job design is the process of structuring
work and designating the specific work activities of an individual or group of
individuals to achieve certain organizational objectives.
The job design process can generally be divided into three phases:
i. The specification of individual tasks: What different tasks must be performed?
ii. The specification of the method of performing each task: Specifically, how will
each task be performed?
iii. The combination of individual tasks into specific jobs to be assigned to
individuals: How will the different tasks be grouped to form jobs?
The overall goal of job design is to develop work assignments that meet the
requirements of the organization and the technology, and that satisfy the personal and
individual requirements of the jobholder.
The idea is to specialize but not overdo it. HRM in Action 4.2 discusses a very early
example of specialization.

B. Job scope and job depth

Job Scope – Number and variety of tasks performed by the jobholder.
Job Depth – Freedom of jobholders to plan and organize their own work, work at their
own pace, and move around and communicate.
A job can be high in job scope and low in job depth, or vice versa.

C. Sociotechnical approach to job design

The sociotechnical approach to job design was first introduced as an alternative to
viewing job design strictly as a matter of specializing the job as much as possible.

19
The following guidelines use the sociotechnical approach to designing jobs:
iv. A job needs to be reasonably demanding for the individual in terms other than
sheer endurance, yet provide some variety (not necessarily novelty).
v. Employees need to be able to learn on the job and to continue learning.
vi. Employees need some minimum area of decision making that they can call their
own.
vii. Employees need some minimal degree of social support and recognition in the
workplace.
viii. Employees need to be able to relate what they do and what they produce to their
social lives.
ix. Employees need to believe that the job leads to some sort of desirable future.
The sociotechnical approach to job design has been applied in many countries, often
under the heading “autonomous work groups,” “Japanese-style work groups,” or
employee involvement (EI) teams.

B. The physical work environment

The physical work environment, which includes factors such as temperature, humidity,
ventilation, noise, lighting, color, and spatial density, can have an impact on the design
of jobs. In general, the physical work environment should allow for normal lighting,
temperature, ventilation, and humidity.
If employees must be exposed to less-than-ideal physical conditions, it is wise to limit
these exposures to short periods of time to minimize the probability that the employee
will suffer any permanent physical or psychological damage.
When designing jobs, thought should also be given to the mental and psychological
impacts of the physical environment. Consideration should be given to how the physical
work environment of the job impacts the mental stress of the jobholder.
The implementation of the Occupational Safety and Health Act (OSHA) in 1970
magnified the importance of safety considerations in the design process.

C. Flexible Work Agreements (FWAs)

Other factors and arrangements that affect job design are the work schedule and
alternative work arrangements.
Flexible work arrangements – (FWAs) is a relatively new term that refers to
alternative work schedules and arrangements. FWAs allow an employee to alter the
time and/or place when/where work is conducted on a regular basis, consistent and
predictable with the employer’s operations.
i. Flextime

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Flextime, or flexible working hours, allows employees to choose, within certain limits,
when they start and end their workday. Usually the organization defines a core period
(such as 10 A.M. to 3 P.M.) when all employees will be at work.
Flextime has the advantage of allowing employees to accommodate different lifestyles
and schedules. Other potential advantages include avoiding rush hours, having less
absenteeism and tardiness, and improved health.
On the downside, flextime can create communication and coordination problems for
supervisors and managers.
ii. Telecommuting
Telecommuting is the practice of working at home or while traveling and being able to
interact with the office.
Advantages of telecommuting include less travel time and travel expenses, avoiding
rush hour, avoiding distractions at the office, and being able to work flexible hours.
Another drawback is that some state and local laws restrict just what work can be done
at home. Evidence has emerged indicating that, when given a choice, employees prefer a
mix of working part of the time from home and part of the time in the office.
iii. Job sharing
Job sharing is a relatively new concept whereby two or more part-time individuals
perform a job that would normally be held by one full-time person. Job sharing can be in
the form of equally shared responsibilities, split duties, or a combination of both.
In recessionary times and when organizations are cutting back, job sharing can be used
to avoid layoffs and to retain trained employees.
iv. Condensed workweek
Under the condensed workweek, the number of hours worked per day is increased and
the number of days in the workweek is decreased.
Advantages of the condensed workweek are lower absenteeism and tardiness, less
start-up time, and more time available for employees to take care of personal business.
One potential disadvantage is the fatigue that often accompanies longer hours.
v. Contingent workers
The U.S. Labor Department’s Bureau of Labor Statistics (BLS) separates contingent
workers into two groups: (1) independent contractors and on-call workers, who are
called to work only when needed, and (2) temporary or short-term workers.
Some people also include part-time and leased employees under the category of
contingent workers
Contingent workers present certain challenges for human resource people, among
which
are the following:

21
 1. Management issues. Who manages the different contingent workers and
what role does HR play?
2. Tracking and reporting. How do contingents fi t into the different HR
system such as payroll?
3. Compensation. How are contingents compensated compared to other
employees?
4. Retention. Since most contingents don’t receive benefits, they can be hard
to retain.
5. Attitude and work quality. Most contingents do not share the same degree
of commitment as other employees.
6. Orientation and training. Orientation and training can be difficult to
schedule because of scheduling conflicts with other jobs.
7. Legal issues. Contingent workers must meet the legal definition of
“independent contractor” under IRS rules.
8. Use of company resources. This can include everything from company
discounts to participation in company educational programs.
9. Physical security. Do contingent workers have the same access to
company facilities as other employees?
Human Resource Management Week 5

CHAPTER 5 | HUMAN RESOURCE

PLANNING
Human Resource Planning (HRP) – Process of determining the human resource needs
of an organization and ensuring that the organization has the right number of qualified
people in the right jobs at the right time.
Poor human resource planning can also cause substantial problems in the short term.
The need for HRP is due to the significant lead time that normally exists between the
recognition of the need to fill a job and securing a qualified person to fill that need.
Effective HRP can also help reduce turnover by keeping employees apprised of their
career opportunities within the company.

9. HOW HRP RELATES TO ORGANIZATIONAL PLANNING

In essence, the success of HRP depends largely on how closely the human resource
department can integrate effective people planning with the organization’s business

22
 planning process. Strategic business planning seeks to identify various factors critical to
the success of the organization. To accomplish this, the planning process should provide
i. A clear statement of the organization’s mission.
ii. A commitment from staff members to the mission.
iii. An explicit statement of assumptions.
iv.A plan of action in light of available or acquirable resources, including trained
and talented people.
In essence, the human resource demands and needs are derived from the strategic and
operating planning and then compared with human resource availability. A common
error occurs when human resource planners focus on the short-term replacement
needs and fail to coordinate their plans with the strategic and long-term plans of the
organization.

D. Strategy-Linked HRP
All managers, especially line managers, should view human resource planning as one of
their most important job responsibilities. One of the best ways to encourage genuine
cooperation between human resource managers and line managers is to use what is
called strategy-linked HRP. Strategy-linked HRP is based on a close working
relationship between human resource staff and line managers.
Linking HRP to the Business Strategy:
v. Be familiar with the business strategy.
vi. Ensure that all traditional human resource programs are satisfying the needs of
senior and functional management.
vii. Identify the human resource implications of the organization’s business
strategy.
viii. Identify those human resource issues that may affect business objectives, and
notify the appropriate functional managers.
ix. Convert business objectives into human resource objectives that can provide the
foundation for a strategic human resource plan.
x. Review the strategic planning process to identify new opportunities to involve
human resource personnel.

10. TIME FRAME OF HRP

A. Short Range (0-2 Years)
i. Demand: Authorized employment including growth, changes, and turnover
ii. Supply: Employee census less expected losses plus expected promotions from
subordinate groups.

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 iii. Net needs: Numbers and kinds of employees needed.
B. Intermediate Range (2-5 Years)
i. Demand: Operating needs from budgets and plans.
ii. Supply: Human resource vacancies expected from individual promotability data
derived from development plans.
iii. Net needs: Numbers, kinds, dates, and levels of needs.
C. Long Range (Beyond 5 Years)
i. Demand: In some organizations, the same as “intermediate”; in others, an
increased awareness of changes in environment and technology—essentially
judgmental.
ii. Supply: Management expectations of changing characteristics of employees and
future available human resources.
iii. Net needs: Management expectations of future conditions affecting immediate
decisions.

11. HRP: AN EVOLVING PROCESS

D. Quinn Mills has identified five stages, or benchmarks, along this continuum.
i. Stage 1 companies have no long-term business plans, and they do little or no
human resource planning.
ii. Stage 2 have a long-term business plan, but tend to be skeptical of HRP. At the
same time, such companies do realize to some degree that human resource
planning is important.
iii. Stage 3 companies do engage in some aspects of human resource planning, but
for the most part these efforts are not integrated into the long-range business
plan.
iv. Stage 4 companies do a good deal of human resource planning, and their top
managers are enthusiastic about the process. These companies have at least one
human resource component integrated into the long-range plan.

12. STEPS IN THE HRP PROCESS

A. Determining Organizational Objectives
Specific human resource requirements in terms of numbers and characteristics of
employees should be derived from the objectives of the entire organization.

24
Organizational objectives - Statements of expected results that are designed to give
the organization and its members direction and purpose. Long-term objectives and
strategies are formulated based on the organization’s mission statement. Short-term
performance objectives generally have a time schedule and are expressed
quantitatively.
Cascade approach to setting objectives - Objective-setting process designed to
involve all levels of management in the organizational planning process.

The idea is to involve all levels of management in the planning process. This also
ensures that the objectives are communicated and coordinated through all levels of the
organization. When properly used, the cascade approach involves both operating
managers and human resource personnel in the overall planning process.

i. Environmental Factors Affecting Human Resource Need

Many factors in the organization’s external environment may have an impact on the
organization’s objectives and the human resources needed to realize those objectives.
Some of these factors include government influences, general economic conditions, the
competition, and changes in the workforce. Changes in workforce refer not only to the
workforce composition but also to its work habits.

B. Determining the Skills and Expertise Required (Demand)

The key here is not to look at the skills and abilities of present employees but to
determine the skills and abilities required to meet the objectives. A good starting point
is to review current job descriptions. The final step in this phase is to translate the
needed skills and abilities into types and numbers of employees.
i. Method of Forecasting Human Resource Needs

25
Methods for forecasting human resource needs can be either judgmentally or
mathematically based.
Judgmental methods:
1. Managerial Estimates - Judgmental method of forecasting that calls on
managers to make estimates of future staffing needs.
2. Delphi techniques - Judgmental method of forecasting that uses a panel of
experts to make initially independent estimates of future demand. An
intermediary then presents each expert’s forecast and assumptions to the
other members of the panel. Each expert is then allowed to revise his or
her forecast as desired. This process continues until some consensus or
composite emerges.
3. Scenario analysis - Using workforce environmental scanning data to
develop alternative workforce scenarios.

Mathematically based methods:

1. Time-series analysis – Past staffing levels (instead of workload
indicators) are used to project future human resource requirements. Past
staffing levels are examined to isolate seasonal and cyclical variations,
long-term trends, and random movements. Long-term trends are then
extrapolated or projected using a moving average, exponential
smoothing, or regression technique.
2. Personnel ratios – Past personnel data are examined to determine
historical relationships among the number of employees in various jobs or
job categories. Regression analysis or productivity ratios are then used to
project either total or key group human resource requirements, and
personnel ratios are used to allocate total requirements to various job
categories or to estimate requirements for non-key groups.
3. Productivity ratios – Historical data are used to examine past levels of a
productivity index, P=workload/number of people. Where constant, or
systematic, relationships are found, human resource requirements can be
computed by dividing predicted workloads by P.
4. Regression – Past levels of various workload indicators, such as sales,
production levels, analysis and value added, are examined for statistical
relationships with staff ng levels. Where sufficiently strong relationships
are found, a regression (or multiple regression) model is derived.
Forecasted levels of the related indicator(s) are entered into the resulting
model and used to calculate the associated level of human resource
requirements.
Historically, judgmental forecasts have been used more frequently than mathematically
based forecasts. However, with the increasing proliferation of user-friendly software
and computers, mathematically based methods will probably be used more frequently.

26
In addition to the previously described judgmentally and mathematically based
forecasting techniques, some organizations help forecast human resource needs by
benchmarking what other successful organizations are doing.
Benchmarking – Thoroughly examining internal practices and procedures and
measuring them against the ways other successful organizations operate.

B. Determining Additional (Net) Human Resource Requirements

Once a manager has determined the types and numbers of employees required, he or
she analyzes these estimates in light of the current and anticipated human resources of
the organization.
i. Skills Inventory
Consolidated list of biographical and other information on all employees in the
organization. In most situations, seven broad categories of information should be
included in a skills inventory:
4. Personal data: age, sex, marital status.
5. Skills: education, job experience, training.
6. Special qualifications: membership in professional groups, special
achievements.
7. Salary and job history: present and past salary, dates of raises, various
jobs held.
8. Company data: benefit plan data, retirement information, seniority.
9. Capacity of individual: test scores on psychological and other tests, health
information.
10. Special preferences of the individual: geographic location, type of job
The primary advantage of a skills inventory is that it furnishes a means to quickly and
accurately evaluate the skills available within the organization

ii. Management Inventory

Specialized, expanded form of skills inventory for an organization’s current
management team; in addition to basic types of information, it usually includes a brief
assessment of past performance and potential for advancement.

iii. Anticipating Changes in Personnel

Changes such as retirements can be forecasted with reasonable accuracy from
information in the skills inventory. Other changes, such as transfers and promotions,
can be estimated by taking into account such factors as the ages of individuals in specific
jobs and the requirements of the organization. Individuals with potential for promotion

27
can and should be identified. Planned training and development experiences should also
be considered when evaluating anticipated changes.

C. Developing Action Plans

Once the net human resource requirements have been determined, managers must
develop action plans for achieving the desired results.
i. Adding Human Resources
Contingent Workers and Outsourcing – have the advantage of allowing the organization
to easily accommodate swings in demand for human resources. Other potential
advantages of using contingent workers and, specifically, temporary agencies, is that the
agencies often provide both testing and training for employees before they are hired. A
final potential advantage of contingent workers is that, because of their varied
experiences, they can bring a new perspective to the organization.

ii. Reducing Human Resources

However, if the organization cannot afford the luxury of natural attrition, it can reduce
human resource costs either by cutting the total number of employees or by making
other adjustments that do not result in employees leaving the organization.
1. Downsizing – There are four basic ways to downsize: (1) layoffs, (2)
terminations, (3) early retirement inducements, and (4) voluntary
resignation inducements.
2. Other way to reducing human resource cost:
a. Reclassification – Reclassification involves demoting an employee,
downgrading job responsibilities, or a combination of the two
b. Transfer – A transfer involves moving the employee to another part of
the organization.
c. Work sharing – Work sharing seeks to limit layoffs and terminations
through the proportional reduction of hours among employees.
d. Job sharing – job sharing occurs when two or more part-time
individuals perform a job that would normally be held by one full-time
person.

D. Synthesizing the HRP Process

As the figure shows, organizational objectives are influenced by many historical and
environmental factors. Once the organizational objectives have been established, they
are translated into divisional and departmental objectives. Similarly, HR personnel
determine the additional (net) human resource requirements based on the information
submitted by the various organizational units in light of available resources and
anticipated changes.

28
13. SUCCESSION PLANNING
Technique that identifies specific people to fill future openings in key positions
throughout the organization. The goal of replacement planning is to identify a “backup”
to fill a job when it becomes vacant. The focus is on past performance and
demonstrating the skills necessary to perform the job in question. The emphasis of
succession planning is on developing people rather than naming replacements.
One problem with many succession plans, especially informal plans and those for large
organizations, is the “crowned prince” syndrome. This means management considers
for advancement only those who have managed to become visible to senior
management.
A second problem with succession planning in many organizations is that it is focused
on just the senior-most levels in the organizations.
As organizations evolve from replacement planning to succession planning, there are
four important ingredients for success:
i. Define what competencies (knowledge, skills, abilities, and personal
characteristics) people must possess to move the organization forward both
now and in the foreseeable future.
ii. Focus on critical positions, not just the very top.
iii. Evaluate the current talent pools; distinguish between current performance and
future potential.
iv. Identify individual development needs.
Taking a proactive approach to succession planning that includes the above four
ingredients will help ensure an organization’s future success.

14. HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)

A database system that contains all relevant human resource information and provides
facilities for maintaining and accessing these data.
A major advantage of an HRIS is its potential for producing more accurate and more
timely information for operating, controlling, and planning purposes than manual or
payroll-based systems can produce.
Historically the major disadvantage of an HRIS was its financial cost and the labor
requirements for implementing the system.
The following areas represent some specific potential applications for an HRIS:
i. Clerical application – Automating certain routine clerical tasks avoids the use of
additional staff, overtime, and temporary help.

29
 ii. Applicant search expenditures – An HRIS can easily store a summary of
applicant qualifications and subsequently perform searches for candidates for
certain positions.
iii. Risk management –Today it is critical in many industries that people in certain
jobs have licenses, safety training, and even physical examinations.
iv. Training management – An HRIS can compare job training requirements with
the actual training experiences of individual jobholders.
v. Training experiences – An HRIS can provide organization wide training
development and delivery, especially for jobs using computers.
vi. Financial planning –By using an HRIS, human resource managers can stimulate
the financial impact of salary and benefit changes.
vii. Turnover analysis – Turnover can be closely monitored with an HRIS.
viii. Succession planning - An HRIS can identify a logical progression path and the
steps required for advancement.
ix. Flexible-benefits administration – An HRIS can be used to administer a flexible-
benefits program.
x. Compliance with government regulations – An HRIS can be used to keep up with
current EEO and related government-required regulations.
xi. Attendance reporting and analysis – The documentation of sick days, vacation
time, personal time, and tardiness can be a significant expense if done manually.
xii. Accident reporting and prevention – An HRIS can be used to record accident
details and subsequently provide analyses that can help prevent future
accidents.
xiii. Strategic planning – Today’s client/server systems are transforming human
resource people from simple administrators to strategic planners who can
influence CEO decisions.
xiv. Human resource planning – Human resource planning can be greatly assisted by
an information system that is capable of making projections based on the
current workforce.
A major indirect benefit of an HRIS is that it helps enable HR managers become more
strategic.

HR and the Internet

The real value of the Internet to HR professionals is the information that it makes
available. Through the Internet, managers can access massive amounts of information.

HR Intranets and Portals

An intranet is a private computer network that uses Internet products and technologies
to provide multimedia applications within organizations. A Web portal is similar to an

30
 intranet except that portals enable other specific groups such as business partners,
customers, or vendors to access an organization’s intranet.

HR and Web 2.0

Web 2.0 technologies use Web-based communities and hosted services such as social
networking sites, blogs, and wikis. An emerging use for HR of Web 2.0 is on the
recruitment front by blogging about the organization as a great place to work.

Software as a Service
Software as a service (SaaS) or “on-demand software” is a relatively new approach to
software delivery that involves users accessing standard business applications over the
Internet. Major benefits of software as a service are that no large capital expenditure is
required to buy and install equipment and that there are fewer hassles related to
managing the systems.

Human Resource Management Week 6

CHAPTER 6 | RECRUITING
EMPLOYEES
Recruitment – Process of seeking and attracting a pool of people from which qualified
candidates for job vacancies can be chosen.
Organizations do have options other than recruiting new employees to accomplish the
work. Some of these options include using temporary workers, offering overtime to
existing employees, subcontracting the work to another organization and leasing
employees.

15. JOB ANALYSIS, HUMAN RESOURCE PLANNING, AND

RECRUITMENT

31
 Figure 6.1 illustrates the relationships among job analysis, human resource planning,
recruitment, and the selection process. Job analysis gives the nature and requirements
of specific jobs. Human resource planning determines the specific number of jobs to be
filled. Recruitment concerns providing a pool of people qualified to fill these vacancies.

16. PERSONNEL REQUISITION FORM

Describes the reason for the need to hire a new person and the requirements of the job.

17. SOURCES OF QUALIFIED PERSONNEL

A. Internal Sources
If an organization has been effective in recruiting and selecting employees in the past,
one of the best sources of talent is its own employees. In general, more accurate data are
available concerning current employees, thus reducing the chance of making a wrong
decision.
Therefore, the likelihood of the employee having inaccurate expectations and/or
becoming dissatisfied with the organization is reduced when recruiting is done from
within.
Another advantage is that recruitment from within can have a significant, positive effect
on employee motivation and morale when it creates promotion opportunities or
prevents layoffs.
A final advantage relates to the fact that most organizations have a sizable investment in
their workforce.

32
One danger associated with promotion from within is that infighting for promotions can
become overly intense and have a negative effect on the morale and performance of
people who are not promoted. Another danger involves the inbreeding of ideas.
Two major issues if organization promotes from within: First, the organization needs a
strong employee and management development program to ensure that its people can
handle larger responsibilities. The second issue concerns the desirability of using
seniority as the basis for promotions.

i. Job Posting and Bidding

A method of informing employees of job vacancies by posting a notice in central
locations and giving a specified period to apply for the job. The next step is an interview
by the prospective manager. Some suggestions include the following:
1. Both promotions and transfers should be posted.
2. Openings should be posted for a specified time period before external
recruitment begins.
3. Eligibility rules for the job posting system need to be developed and
communicated. For example, one eligibility rule might be that no
employee can apply for a posted position unless the employee has been in
his or her present position for six months.
4. Specific standards for selection should be included in the notice.
5. Job bidders should be required to list their qualifications and reasons for
requesting a transfer or promotion.
6. Unsuccessful bidders should be notified by the human resource
department and advised as to why they were not accepted.
ii. External Sources
One inherent advantage of recruiting from outside is that the pool of talent is much
larger than that available from internal sources. Another is that employees hired from
outside can bring new insights and perspectives to the organization. Also, it is often
cheaper and easier to hire technical, skilled, or managerial people from the outside
rather than to train and develop them internally. M3
One disadvantage of external recruitment is that attracting, contacting, and evaluating
potential employees is more difficult. Another is that employees hired from the outside
need a longer adjustment or orientation period. Also, recruiting from outside may cause
morale problems among people within the organization who feel qualified to do the
jobs.
1. Advertising - The placement of help wanted advertisements in daily
newspapers, in trade and professional publications, or on radio and
television. It is generally true that people respond more frequently to
advertisements from companies with a positive corporate image than to
those companies with a lower corporate image.
33
 2. Employment Agencies - State employment agencies provide free service
for individuals seeking employment and for business organizations
seeking employees.
a. The executive search fi rm (or headhunter) seeks candidates for high-
level positions.
b. The second type of employment agency recruits for lower-level
positions.
The fees of private employment agencies are paid by the individual or the
employing organization.
3. Temporary Help Agencies and Employee Leasing Companies – Temporary
help are people working for employment agencies who are subcontracted
out to businesses at an hourly rate for a period of time specified by the
businesses. The use of temporary help is not dependent on economic
conditions. One obvious disadvantage of using temporary employees is
their lack of commitment to the organization.
Employee leasing companies are providing permanent staffs at customer
companies. In addition, they supply highly skilled technical workers such
as engineers and information technology specialists for long-term
projects under contract between a company and a technical services firm.
4. Employee Referrals and Walk-Ins/Unsolicited Applications - These
recruiting systems may be informal and operate by word-of-mouth, or
they may be structured with definite guidelines to be followed. One
drawback to the use of employee referrals is that cliques may develop
within the organization because employees tend to refer only friends or
relatives.
5. Campus Recruiting - Recruitment activities of employers on college and
university campuses. If the human resource department uses campus
recruiting, it should take steps to ensure that recruiters are
knowledgeable concerning the organization and the jobs to be filled and
that they understand and use effective interviewing skills. Another
method of tapping the products of colleges, universities,
technical/vocational schools, and high schools is through cooperative
work programs. Through these programs, students may work part-time
and go to school part-time, or they may go to school and work at different
times of the year.
6. Internet Recruiting

18. EFFECTIVENESS OF RECRUITMEN METHODS

A. Internal
i. Advantages:

34
 1. Company has a better knowledge of strengths and weaknesses of job
candidate.
2. Job candidate has a better knowledge of company.
3. Morale and motivation of employees are enhanced.
4. The return on investment that an organization has in its present
workforce is increased.
ii. Disadvantages:
1. People might be promoted to the point where they cannot successfully
perform the job.
2. Infighting for promotions can negatively affect morale.
3. Inbreeding can stifle new ideas and innovation.
4. Attracting, contacting, and evaluating potential employees is more
difficult.
B. External
i. Advantages:
1. The pool of talent is much larger.
2. New insights and perspectives can be brought to the organization.
3. Frequently it is cheaper and easier to hire technical, skilled, or
managerial employees from outside.
ii. Disadvantages:
1. Adjustment or orientation time is longer.
2. Morale problems can develop among those employees within the
organization who feel qualified to do the job.

19. REALISTIC JOB PREVIEW

A method of providing complete job information, both positive and negative, to the job
applicant.

35
20. WHO DOES RECRUITING, AND HOW?
In most large and middle-size organizations, the human resource department is
responsible for recruiting. The role of personnel in the employment office is crucial.
Walk-ins/write-ins and respondents to advertising develop an impression of the
organization through their contacts with the employment office.
When recruiting is done away from the organization’s offices, the role of the recruiter is
equally critical.
In small organizations, the recruitment function, in addition to many other
responsibilities, is normally handled by one person, frequently the office manager. Also,
it is not unusual for line managers in small organizations to recruit and interview job
applicants.

21. ORGANIZATIONAL INDUCEMENT IN RECRUITMENT

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 Positive features and benefits offered by an organization to attract job applicants.
Starting salaries, frequency of pay raises, incentives, and the nature of the organization’s
fringe benefits can all influence the number of people attracted through the recruitment
process.
Organizations that have a reputation for providing employees with career opportunities
are also more likely to attract a larger pool of qualified candidates through their
recruiting activities.
Finally, the organization’s overall reputation, or image, serves as an inducement to
potential employees.

22. EQUAL EMPLOYMENT OPPORTUNITY AND RECRUITMENT

The entire subject of recruitment interviewing is made even more complex by equal
employment opportunity legislation and court decisions relating to this legislation.
Equal opportunity legislation has significantly influenced recruitment activities. All
recruitment procedures for each job category should be analyzed and reviewed to
identify and eliminate discriminatory barriers.
The EEOC also suggests that the content of help-wanted ads should not indicate any
race, sex, or age preference for the job unless age or sex is a bona fi de occupational
qualification (BFOQ).
Campus recruiting visits should be scheduled at colleges and universities with large
minority and female enrollment.
Employers are encouraged to contact nontraditional recruitment sources, such as
organizations that place physically and mentally handicapped persons.
More than likely, recruiters will also have to pay more attention to the spouse, male or
female, of the person being recruited.

Human Resource Management Week 7

CHAPTER 7 | SELECTING
EMPLOYEES
Selection – The process of choosing from among available applicants the individuals
who are most likely to successfully perform a job.

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23. THE SELECTION PROCESS
Processing an applicant for a job normally entails a series of steps.

A. Employment Application Form

Completing an employment application form is normally the first step in most selection
procedures. The application provides basic employment information for use in later
steps of the selection process and can be used to screen out unqualified applicants.
i. EEOC Requirement
Some of the major questions that should be eliminated from preemployment inquiries
(both employment application forms and interviews) because of their potential to be
discriminatory include the following:
1. Race, color, national origin, and religion.
2. Arrest and conviction records.
3. Credit rating

ii. Processing
Normally a member of the human resource department reviews the information on the
application form to determine the applicant’s qualifications in relation to the
requirements of currently available jobs.
Weighted Application Forms – Application forms that assign different weights or values
to different questions.

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 iii. Accuracy of Information
Placing full reliance on information provided on the application form may not be
prudent unless some means of verification is used. However, employers view
falsification of an application form as a serious offense that, if detected, normally leads
to discharge.

iv. Applicant Flow Record

A form completed voluntarily by a job applicant and used by an employer to obtain
information that could be used to illegally discriminate. Data and information from the
applicant flow record can be used to provide statistical reports to the EEOC or OFCCP or
in defense against charges of discrimination concerning the employer’s recruitment and
selection activities.

B. Preliminary Interview
The preliminary interview is used to determine whether the applicant’s skills, abilities,
and job preferences match any of the available jobs in the organization, to explain to the
applicant the available jobs and their requirements, and to answer any questions the
applicant has about the available jobs or the employer

C. Formal Testing
If a test is to be used in the selection process and if the selection process has adverse
impact on legally protected groups, the EEOC requires the employer to establish validity
and reliability using the procedures outlined in the “Uniform Guidelines on Employee
Selection Procedures”

i. Aptitude Tests
Means of measuring a person’s capacity or latent ability to learn and perform a job.
Some of the more frequently used tests measure verbal ability, numerical ability,
perceptual speed, spatial ability, and reasoning ability.
One of the oldest and, prior to the passage of equal opportunity legislation, most
frequently used aptitude tests was the general intelligence test.

ii. Psychomotor Tests

Tests that measure a person’s strength, dexterity, and coordination.
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 iii. Job Knowledge Tests and Proficiency Tests
Job knowledge tests – Tests used to measure the job-related knowledge of an applicant.
Proficiency tests – Tests used to measure how well a job applicant can do a sample of
the work to be performed in the job.

iv. Interest Tests

Tests designed to determine how a person’s interests compare with the interests of
successful people in a specific job.

v. Personality Tests
Two of the better-known personality tests are the Rorschach inkblot test and the
Thematic Apperception Test (TAT). In the Rorschach test, the applicant is shown a
series of cards that contain inkblots of varying sizes and shapes. With the TAT, the
applicant is shown pictures of real-life situations for interpretation. The Myers-Briggs
Type Indicator (MBTI) is one of the most widely used instruments.

vi. Polygraph Tests

Device that records physical changes in a person’s body as he or she answers questions
(also known as a lie detector).
The use of a polygraph rests on a series of cause-and-effect assumptions: Stress causes
certain physiological changes in the body; fear and guilt cause stress; lying causes fear
and guilt. However, the polygraph machine itself does not detect lies; it detects only
physiological changes. The operator must interpret the data recorded by the machine.
Thus, the operator, not the machine, is the real lie detector.
The Employee Polygraph Protection Act of 1988, with a few exceptions, prohibits
employers from conducting polygraph examinations on all job applicants and most
employees.
The major exemptions to the law are as follows: (1) All local, state, and federal
employees are exempt from coverage, although state laws may be passed to restrict the
use of polygraphs; (2) industries with national defense or security contracts are
permitted to use polygraphs; (3) businesses with nuclear power–related contracts with
the Department of Energy may use polygraphs; and (4) businesses and consultants with
access to highly classified information may use polygraphs.
Private businesses are also allowed to use polygraphs under certain conditions: when
hiring private security personnel, when hiring persons with access to drugs, and during
investigations of economic injury or loss by the employer

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 vii. Graphology
Use of a trained analyst to examine a person’s handwriting to assess the person’s
personality, emotional problems, and honesty.

viii. Drug and AIDS Testing

The most common practice is to test current employees when their job performance
suggests substance abuse and all new potential employees. Urine sampling is one of the
most common forms of drug testing. Testing can create an adversarial relationship in
which the employee tries to escape the employer’s detection.
People with AIDS and people who test positive for HIV antibodies are protected in their
jobs by the Vocational Rehabilitation Act and the Americans with Disabilities Act.
In some instances, AIDS in the workplace has caused fear among employers and
coworkers, who often seek to be separated from those infected by the virus. If an HIV
testing program is not to be considered as a violation of an employee’s basic rights, the
employer should be able to show that the interests to be served by testing outweigh
privacy expectations.

ix. Genetic Testing

These sophisticated medical tests use gene coding to identify individuals with gene
structures that may make them susceptible to illness

D. Second or Follow-Up Interview

i. Types of Interview
1. Structured Interview - An interview conducted according to a
predetermined outline.
2. Unstructured Interview - An interview conducted without a
predetermined checklist of questions.
3. Stress Interview - Interview method that puts the applicant under
pressure to determine whether he or she is highly emotional.
4. Board or Panel Interviews – Interview method in which two or more
people conduct an interview with one applicant.
5. Group Interview – Interview method in which several applicants are
questioned together.

ii. Problems in Conducting Interviews

1. Initial Impressions – Interviewer draws conclusions about a job applicant
within the first 10 minutes of the interview.

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 2. Halo Effect – Occurs when managers allow a single prominent
characteristic of the employee to influence their judgment on several
items of a performance appraisal.
3. Overgeneralizing – An interviewee may not behave exactly the same way
on the job as during the interview. Personal preferences, prejudices, and
biases can also cause problems in conducting employment interviews.

iii. Conducting Effective Interviews

1. First, careful attention must be given to selecting and training
interviewers.
2. Second, the plan for the interview should include an outline specifying the
information to be obtained and the questions to be asked. The plan should
also include room arrangements.
3. Third, the interviewer should attempt to put the applicant at ease. The
interviewer should not argue with the applicant or put the applicant on
the spot.
4. Fourth, the facts obtained in the interview should be recorded
immediately.
5. Finally, the effectiveness of the interviewing process should be evaluated.

E. Reference Checking
Reference checking can take place either before or after the second interview. For the
most part, personal references have limited value because generally no applicant will
list someone who will not give a positive recommendation.
Reference checking is most frequently conducted by telephoning previous employers.
However, many organizations will not answer questions about a previous employee
unless the questions are put in writing. However, most employers are hesitant to
answer questions about previous employees because of the threat of defamation
lawsuits.
The Privacy Act of 1974 prevents government agencies from making their employment
records available to other organizations without the consent of the individual involved.
The Fair Credit and Reporting Act (FCRA) of 1971 requires private organizations to give
job applicants access to information obtained from a reporting service.

F. Physical Examination
The physical examination is normally required only for the individual who is offered the
job, and the job offer is often contingent on the individual passing the physical
examination. The expense of physical examinations has also caused many organizations

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 to have applicants complete a health questionnaire when they fi ll out their application
form.

G. Making the Final Selection Decision

The final step in the selection process is choosing one individual for the job.
The responsibility for making the final selection decision is assigned to different levels
of management in different organizations. In many organizations, the human resource
department handles the completion of application forms. The diagnostic interview and
final selection decision are usually left to the manager of the department with the job
opening.
In other organizations, the human resource department handles all of the steps up to
the final decision. Many organizations leave the final choice to the manager with the job
opening, subject to the approval of those at higher levels of management.
In some organizations, the human resource department handles all the steps in the
selection process, including the final decision. In small organizations, the owner often
makes the final choice.
An alternative approach is to involve peers in the final selection decision.

24. VALIDATION OF SELECTION PROCEDURES

Criteria of Job Success – Ways of specifying how successful performance of the job is to
be measured.
Criterion predictors – Factors such as education, previous work experience, and scores
on tests that are used to predict successful performance of a job.
Validity and reliability are extremely important concepts not only in the selection of
new employees but also in promotion decisions or any other area where selection
decisions are made.
Validity – Refers to how accurately a predictor actually predicts the criteria of job
success.

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Reliability – Refers to the extent to which a criterion predictor produces consistent
results if repeated measurements are made.

A. Criterion-Related Validity
Criterion-related validity is established by collecting data and using correlation analysis
(a statistical method used to measure the relationship between two sets of data) to
determine the relationship between a predictor and the criteria of job success.
A criterion predictor never correlates perfectly with a criterion of job success.
Two primary methods for establishing criterion-related validity are predictive validity
and concurrent validity.
i. Predictive Validity
Validity established by identifying a predictor, administering it to applicants, hiring
without regard to scores, and later correlating scores with job performance. Predictive
validation is used infrequently because it is costly and slow. Furthermore, for criteria to
be predictive, all new employees must have equivalent orientation and training.
ii.

Concurrent Validity

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 Validity established by identifying a predictor, administering it to current employees,
and correlating the test data with the current employee’s job performance.
One disadvantage of concurrent validation is that in situations in which either racial or
sexual discrimination has been practiced in the past, minorities and women will not be
adequately represented. Another potential drawback is that among present employees
in a particular job, the poorer performers are more likely to have been discharged or
quit and the best performers have frequently been promoted.
Criterion-related validation procedures (either predictive or concurrent) are preferred
by the Equal Employment Opportunity Commission (EEOC) in validation studies.

B. Content and Construct Validity

Content Validity – The extent to which the content of a selection procedure or
instrument is representative of important aspects of job performance.
Construct Validity – The extent to which a selection criterion measures the degree to
which job candidates have identifiable characteristics determined to be important for
successful job performance.

25. RELIABILITY
Reliability refers to the reproducibility of results with a criterion predictor. Three
methods can be used to demonstrate the reliability of a criterion predictor.
Test-retest – One method of showing a test’s reliability; involves testing a group an d
giving the same group the same test at a later time.
Parallel (or alternative) forms – A method of showing a test’s reliability; involves giving
two separate but similar forms of the test.
Split halves – A method of showing a test’s reliability; involves dividing the test into
halves.

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26. UNIFORM GUIDELINES ON EMPLOYEE SELECTION
PROCEDURES
The Uniform Guidelines are designed to provide the framework for determining the
proper use of tests and other selection procedures in any employment decision.
Employment decisions include but are not limited to hiring, promotion, demotion,
membership (e.g., in a labor organization), referral, retention, licensing and
certification, selection for training, and transfers.
The Uniform Guidelines on Employee Selection Procedures also contain technical
standards and documentation requirements for the validation of selection procedures.
The guidelines broadly defi ne selection procedures to include not only hiring but also
promotion decisions, selection for training programs, and virtually every selection
decision an organization makes.
A. Adverse (or Disparate) Impact
Adverse Impact - Condition that occurs when the selection rate for minorities or women
is less than 80 percent of the selection rate for the majority group in hiring, promotions,
transfers, demotions, or any selection decision
4/5ths or 80 percent rule – A limit used to determine whether or not there are serious
discrepancies in hiring decisions and other employment practices affecting women or
minorities.
B. Where Adverse Impact Exist: The Basic Options
First, the employer has the option to modify or eliminate the procedure that produces
the adverse impact. In the language of industrial psychology, the employer must
validate the selection procedure.

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