Principles of Business - Human Resources

Understanding Human Resources

Responsibility for HRM

Shared responsibility between line and staff managers; specific HRM activities are assigned to those in the best position to perform them

How is a forecast of human resources demand related to a firm’s organizational planning?

It is an organization’s overall strategic plan; the starting point of the process

When demand is greater than supply

HR planners make plans to recruit new employees

When the supply of employees is predicted to be greater than the demand

The firm must take steps to reduce the size of its workforce through: Layoffs, Attrition, Early retirement, Buyouts, Firing

Major benefits of a culturally diverse workforce

Cost, Resource acquisition, Marketing edge, Flexibility, Creativity, Problem solving, and bilingual communication skills

Major disadvantages of a culturally diverse workforce

Communication issues, multiple differing opinions, hostility, and generation gaps

What is an advantage of external recruiting?

It brings people into a firm who have new perspectives and varied business backgrounds

What are the disadvantages of external recruiting?

It is expensive and may provoke resentment among present employees

What are the advantages of internal recruiting?

It provides strong motivation for current employees and helps the firm retain quality personnel

What is the disadvantage of internal recruiting?

It leaves another position open