Business Environment Chapter 12

Human Resource Management

The process of determining human needs and recruiting,

selecting,

developing,

motivating,

evaluating, and

compensating employees—while following the legal environment

Human Resource Management Shift

Traditional manufacturing industries to
service and high-tech manufacturing industries
that require highly technical job skills

Human Resource Challenges

• job disruption by AI

• Uncertainty in global politics

• Multigenerational workforce

• Shortages of trained workers in areas like biotech/green tech

The Hiring Process 

Recruit → Select → Application form → Interview → Test → Investigate → Train/Develop (orientation, apprenticeship, online training)

Determining a Firm’s Human Resource Needs

1.Prepare HR inventory

2.Prepare Job Analysis 

  a) Description 

  b) Specification 

3.Assess Demand 

4.Assess Supply 

5.Establish Study Plan 

Determining a Firm’s Human Resource Needs step 1

Preparing a human resources inventory of
the organization’s employees. This inventory should include ages, names, education (e.g., languages spoken)

Determining a Firm’s Human Resource Needs step 2

A job analysis is a study of what is done by employees who hold various Job titles

analyses ( recruit, train employees, with skillsfor job)

Determining a Firm’s Human Resource Needs step 3

Assessing future human resources demand. (Technology changing rapidly)

Determining a Firm’s Human Resource Needs step 4

assessing future human resources supply (Labour force always shifting)

Determining a Firm’s Human Resource Needs step 5

Establishing a strategic plan 

(plan addressing recruitment, selection,
training and development, evaluation,
compensation, scheduling)

Job Analysis

job analysis yields two important statements:
• job descriptions
• job specifications

Recruitment

A set of activities used to obtain the right number of qualified people at the right time

Recruitment Difficulty

Policies like promotion from within, union contracts, low wages, or cultural mismatch

Selection 

Gathering information and deciding who to hire, under legal guidelines, for the best interests of both the individual and the organization

6 steps in Selection

1. Application forms.
2. Interviews (initial and follow-up)
3. Employment tests

4. Background checks

5. Physical exams

6. Probationary periods

Gig Economy

An informal labor market of temporary, short-term, or contract work

Contingent Worker

Employee without regular, full-time employment, hired to meet varying workforce needs

3 Steps of Training Programs

Assess needs → Design training → Evaluate effectiveness

Training and Development Activities

Orientation, onboarding, on-the-job, apprenticeships, online training, vestibule training, job simulation

Vestibule training

(near-the-job training) is done
in classrooms where employees are taught on
equipment similar to that used on the job

Management development

Training employees to become good managers through coaching, job rotation, off-the-job courses, and mentoring

Networking

Building professional contacts for career growth and development, often supported by mentors

Performance appraisal

The process of evaluating employee performance against standards to guide decisions on promotions, pay, training, or termination

6 Steps of Performance Appraisal

Establish standards → Communicate → Evaluate → Discuss results → Take corrective action → Use results for decisions

Cafeteria-style benefits (flexible benefits
plan)

Benefit plans that allow employees to choose
which benefits they want, up to a certain dollar
amount

Flex time plan

A plan allowing employees to choose work hours as long as they complete required hours (with core time set)

Job sharing

Two part-time employees share one full-time job.

The Act

Requires that every employer ensure
equal opportunities and that there is no
discrimination with regard to race, ethnicity,
religion, age, sex, sexual orientation

Gender wage gap

On average, women earn 89 cents for every dollar men earn

Reverse discrimination

Discrimination against a majority group due to equity policies