BEO midterm: chapter 12

Chapter 12: Human resources management

Human Resource Management (HRM)

The process of determining human resource needs and recruiting, selecting, motivating, evaluating, and developing employees to meet organizational goals.

Human Resource Challenges

• Jobs will be disrupted by technology (AI)

• Uncertainty in global politics

• Multigenerational workforce

• Shortage of trained workers in growth areas/ Large number of trained workers in declining industries

• Unemployed workers

• New workers who lack required knowledge

• retirement

5 steps of determining HR Needs

1. Prepare HR Inventory 

2. Prepare Job analysis

• Description

• Specification

3. Assess Demand

4. Assess Supply

5. Establish Strategic plan

Step 1: Prepare HR Inventory of organizations employees

Inventory should include

• ages, names, education (e.g languages spoken etc), capabilities, training, specialized skills, and other information.

Step 2: Preparing a Job analysis 

Job Analysis: a study of what is done by employees who hold various job titles

• necessary for recruiting and training employees with skills needed for the job 

Step 3: Assessing Future HR demand

• As technology is rapidly changing, training programs must start long before the need is apparent 

Step 4: Assessing future human resource supply

• The labour force is constantly shifting (getting older, becoming more technically oriented, and diverse) some workers will be scarcer whilst others will be over supplied. 

Step 5: Establishing a strategic plan

The plan must address recruitment, selection, training and development, evaluation, compensation, scheduling, and career management for the labour force.

Statements found within a job analysis

• Job description: specifies the objectives of the job, the type of work, the responsibilities and duties, working conditions and jobs relationship to other functions 

• Job specification: written summary of the minimal education and skills a person needs to do a particular job. 

Recruitment

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

• should end up resulting in a pool of qualified applicants 

Reasons recruiting has become difficult

• Some organizations…

  • have policies demanding promotions from within

  • operate under union contracts 

  • offer low wages 

• thus making it difficult to recruit and keep employees 

Internal sources of recruitment

• current employees who can be transferred, promoted or can recommend others to hire. 

• usually cheaper and maintains employee moral 

External sources of recruitment

• Advertisements, online applications, and social media. 

Selection

The process of gathering information and deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization 

• has become extremely expensive 

5 steps for selecting Employee 

1. Obtaining complete application forms 

2. conducting initial and follow up interviews

3. giving employment tests

4. conducting background investigations

5. obtaining results from physical exams

6. establishing trial (probationary) periods

Contingent Workers

Workers who do not have regular, full-time employment

Gig economy

An informal labour market characterized by temporary, short-term, or contract work (AKA: on-demand economy/contingent workforce) 

Training and development 

All attempts to improve productivity by increasing an employee ability to perform 

Training

planned activities aimed to provide employees with enhanced skills to perform their current jobs 

Employee Orientation

The activity that initiates new employees to the organization, to fellow employees, to their supervisors, and to the policies, practises, values, and objectives of the firm. 

Onboarding

Targeted to new employees, it is a series of events (including orientation) that helps new hires understand how to be successfull in their day to day job as well as how their work contributes to the overall business 

On-the-job training

The employee being trained on the job immediately beings his or her tasks and learns by doing, or watched other for a while them imitates them, right at the workplace. 

• the most functional 

Apprentice programs

a period during which a learner works alongside an experienced employee to master the skills and procedures of a craft 

Off-the-job training 

occurs away form the workplace and consists of internal or external programs to develop any of the variety of skills or foster personal development. 

Online Training

offers an example of how technology is improving the efficiency of many off-the-job training programs 

• major advantage os how many employees in different locations can participate at once 

Vestibule training (near-the-job training)

done in classrooms where employees are taught on equipment similar to that used on the job 

• this enables employees to learn proper methods and safety procedures 

Job Simulation

the use of equipment that duplicates job conditions and tasks so that trainees can learn skills before attempting them on the job. 

Management development 

The process of training and educating employees to become good managers, and then monitoring the progress of their managerial skills over time.

• Most management training programs include 

  • on-the-job coaching 

  • understudy positions 

  • job rotation 

  • off-the-job courses and training 

Networking 

the process of establishing and maintaining contacts with key mangers in ones own organization and in other organizations and using those contacts to weave strong relationships that serve as informal development systems 

Mentor 

a corporate manager who supervises, coaches, and guides selected lower-level employees by introducing them to the right people generally being their organizational sponsor 

Performance appraisal

An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination 

6 steps of performance appraisal

1. establish standards 

2. communicate standards 

3. evaluate performance 

4. discuss results 

5. take corrective action 

6. use results to make decisions 

compensation

all types of financial rewards, such as pay in the form of cash, employees receive as apart of their employment.  

Fringe benefits 

Compensation in forms other than cash (indirect compensation). also known as employee benefits 

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

work schedule that gives employees some freedom to choose when to work as long as they work the required number of hours

• usually incorporates core time (times all employees are expected to be at work) 

compressed workweek

work schedule tha allows an employee to work a full number of hours per week but in fewer days 

Home-based work 

home based workers can choos their own hours, interrupt work for child care or other tats, and take time out for personal reasons

• isn’t for everyone

Job sharing

an arrangement whereby two part time employees ahre one full time job 

Retiring employees 

another tool used to downsize companies is to offer early retirement benefits to entice older (and more expensive) workers to retire 

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, marital/family status, disability, etc

• employers should accommodate to the point of undue hardship

Gender Wage Gap

the difference between wages earned by men and wages earn by women

• on average Canadian women earn $0.89 for every $1 a man earns

Hay payment method

Created by Edward Hay, this plan is based on job grades where each of which has a strict pay range.

Hot decking

Sharing a desk with other employees who work at different times