CH.

1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

What is Human Resource Management?
Organization-people with formally assigned roles who work together to achieve the
organization’s goals
Manager-the person responsible for accomplishing the organization’s goals and who does so
by managing (planning, organizing, staffing, leading and controlling) the efforts of the
organization’s people
Management Process:
1. Planning-establishing goals and standards, developing rules and procedures, developing
plans and forecasting
2. Organizing-giving each subordinate a specific task, establishing departments, delegating
authority to subordinates, establishing channels of authority and communication, coordinating
subordinate’s work
3. Staffing-determining what type of people you should hire, recruiting prospective employees,
selecting employees, training and developing employees, setting performance standards,
evaluating performance, counselling employees, compensating employees
4. Leading-getting others to get the job done, ,maintaining morale, motivating subordinates
5. Controlling-setting standards such as sales quotas, quality standards, production levels
checking to see how actual performance compares with these standards, taking corrective
action as needed
Why is Human Resource Management Important to All Managers?
1. Avoid Personnel Mistakes
*Hire the wrong person for the job
* Experience high turnover
* Have your people not doing their best
* Waste time with useless interviews
* Have your company taken to court because of your discriminatory actions
* Have your company cited under federal occupational safety laws for unsafe practices
* Have some employees think their salaries are unfair relative to others in the
organization
* Allow a lack of training to undermine your department s effectiveness
* Commit any unfair labor practices
2. Improve Profits and Performance
3. You Too May Spend Some Time As An HR Manager
4. HR For Entrepreneurs
Human Resource Management-the process of acquiring, training, appraising and
compensating employees and of attending to their labor relations, health and safety and
fairness concerns
Line and Staff Aspects of Human Resource Management
Authority-the right to make decisions, direct others’ work and give orders
Line authority-The authority exerted by an HR manager by directing the activities of the people
in his or her own department and in service areas (like the plant cafeteria)
-traditionally gives managers the right to issue others to other managers or employees
-creates a superior (order giver)-subordinate (order receiver) relationship
 Staff authority-Staff authority gives the manager the right (authority) to advise other managers
or employees
-creates advisory relationship
Line Manager-A manager who is authorized to direct the work of subordinates and is
responsible for accomplishing the organization s tasks
Staff Manager-A manager who assists and advises line managers
*Human resource managers are usually staff managers
Line Managers’ Human Resource Duties
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining cooperation and developing smooth working relationships
6. Interpreting the company’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition
Human Resource Manager’s Duties
1. Line Function
2. Coordinative Function/Functional Control/ Functional Authority
- The authority exerted by an HR manager as coordinator of personnel activities
3. Staff (assist and advise) Function
-advises, innovator, employee advocacy, implied authority
Examples of Human Resource Management Specialties:
1. Recruiters-Search for qualified job applicants.
2. Equal employment opportunity (EEO) coordinators- Investigate and resolve EEO
grievances; examine organizational practices for potential violations; and compile and submit
EEO reports.
3. Job analysts-Collect and examine information about jobs to prepare job descriptions.
4. Compensation managers- Develop compensation plans and handle the employee benefits
program.
5. Training specialists- Plan, organize, and direct training activities.
6. Labor relations specialists- Advise management on all aspects of union management
relations.
New Approaches to Organizing HR
1. The transactional HR group uses centralized call centers and outsourcing arrangements
(such as with benefits advisors) to provide support for day-to-day transactional activities (such
as changing benefits plans and employee assistance and counseling). In one survey, about
75% of respondents said their firms were providing transactional, administrative human
resource services through such arrangements.10
2. The corporate HR group focuses on assisting top management in top level big picture issues
such as developing and explaining the personnel aspects of the company s long-term strategic
plan.
3. The embedded HR unit assigns HR generalists (also known as relationship managers or
HR business partners) directly to departments like sales and production. They provide the
localized human resource management assistance the departments need.
4. The centers of expertise are like specialized HR consulting firms within the company for
instance, they provide specialized assistance in areas such as organizational change.
*getting results through people
The Trends Shaping Human Resource Management
1. Globalization and Competition Trends
Globalization-The tendency of firms to extend their sales, ownership, and/or manufacturing to
new markets abroad
Reasons for globalization
1. sales expansion
2. new foreign products
3. cut labor costs
4. forming partnerships
5. job offshoring
2. Indebtedness (“Leverage”) and Deregulation
3. Technological trends
4. Trends in the Nature of Work
1. High-Tech Jobs
2. Service Jobs
3. Knowledge Work and Human Capital
*the best jobs that remain require more education and more skills
-just in time manufacturing, automation
human capital-The knowledge, education, training, skills, and expertise of a firms
workers.
5. Workforce and Demographic Trends
1. Demographic Trends (e.g. non-Hispanic)
2. Generation Y/Millenials
- been pampered, nurtured, and programmed with a slew of activities since they
were toddlers, meaning they are both high-performance and high-maintenance.
Work-centric
Dual-centric/family centric
1. They want fair and direct supervisors who are highly engaged in their
professional development.
2. They seek out creative challenges and view colleagues as vast
resources from whom to gain knowledge.
3. They want to make an important impact on Day 1.
4. They want small goals with tight deadlines so they can build up
ownership of tasks.
5. They aim to work faster and better than other workers
3. Retirees-“the aging workforce”
*there aren’t enough younger workers to replace the projected number of baby
boom era older-worker retirees
 4. Nontraditional Workers
-who hold multiple jobs, contingent, part-time workers, working in alternative work
arrangements
5. Workers from abroad

6. Economic Challenges and Trends

Important Trends in Human Resource Management

1. The New Human Resource Managers
a. They Focus More on Big Picture Issues
-internal consultants, strategies
*HR managers are shifting their focus from providing transactional services to
providing top management with decisions that “inform and support
b. They Find New Ways to Provide Transactional Services
-outsource, technology, centralized call centers
c. They Have New Proficiencies
-business knowledge and proficiencies, needs to be familiar with strategic
planning, marketing, production and finance
d. They Take an Integrated, “Talent Management” Approach to Managing Human
Resources
Talent Management- the goal-oriented and integrated process of planning,
recruiting, developing, managing, and compensating employees.
- It involves instituting a coordinated process for identifying, recruiting, hiring, and
developing high-potential employees.
e. They Manage Employee Engagement
f. They Manage Ethics
g. They Measure HR Performance and Results
h. They Add Value
-Adding value means helping the firm and its employees gain in a measurable
way from the human resource manager s actions. (ex. high performance work
system)
i. They Have New Competencies
· Talent Managers/Organization Designers, with a mastery of traditional
human resource management tasks such as acquiring, training, and
compensating employees.
· Culture and Change Stewards, able to create human resource
practices that support the firms cultural values.
· Strategy Architects, with the skills to help establish the company s
overall strategic plan, and to put in place the human resource practices
required to support accomplishing that plan.
· Operational Executors, able to anticipate, draft, and implement the
human resource practices (for instance in testing and appraising) the
company needs to implement its strategy.
 · Business Allies, competent to apply business knowledge (for instance in
finance, sales, and production) that enable them to help functional and
general managers to achieve their departmental goals.
· Credible Activists, with the leadership and other competencies that
make them both credible (respected, admired, listened to) and active
(offers a point of view,takes a position, challenges assumptions.)
2. Strategic Human Resource Management
Strategic Human Resource Management-formulating and executing human resource policies
and practices that produce the employee competencies and behaviors the company needs to
achieve its strategic aims
3. High-Performance Work Systems
-a set of HRM policies and practices that together produce superior employer performance
-productivity and performance improvement

4. Evidence-Based Human Resource Management

-the use of data, facts, analytics, scientific rigor, critical evaluation and critically evaluated
research/case studies to support human resource management proposals, decisions, practices
and conclusions
-the deliberate use of the best-available evidence in making decisions about the human
resource management practices you are focusing on
-actual measurements, existing data, research studiess
5. Managing Ethics
Ethics-the standards someone uses to decide what his or her conduct should be
6. HR Certification
*Human Resource management is the responsibility of every manager

CH.3 THE MANAGER’S ROLE IN STRATEGIC HUMAN RESOURCE MANAGEMENT

Why Strategic Planning is Important to All Managers
The Hierarchy of Goals
Fundamentals of Management Planning
The Planning Process:
1. Set an objective
2. Make forecasts
3. Determine what your alternatives are for getting from where you are now to where
you want to be
4. Evaluate your alternatives
5. Implement and evaluate your plan
*There is usually a hierarchical aspect to managerial planning
Business Plan-provides a comprehensive view of the firm’s situation today and of its company-
wide an departmental goals and plans for the next 3 to 5 years
-“long-term”/”strategic” plan
Contents of typical business plan:
1. Description of the business (ownership, products/services)
2. The marketing plan-specifies the nature of the product/service; 4PS: product, price,
promotion, place
3. The financial plan
4. The management and/or personnel/ human resource plan
5. The Production/Operations Plan
How Managers Set Objectives
· Setting SMART Goals (specific, measurable, attainable, relevant, timely)
· How to Set Motivational Goals
Goal-setting studies
1. Assign specific goals
2. Assign measurable goals
3. Assign challenging but doable goals
4. Encourage participation
*But when (as is usually the case) the participatively set goals are more difficult than the
assigned ones, participatively set goals usually produce higher performance
· Using Management by Objectives
Management by Objectives (MBO)-the supervisor and subordinate jointly set goals for the
latter and periodically assess progress toward those goals
-a formal oragnizationwide program in which managers at each organizational level meet with
the subordinates to hammer out goals that make sense in terms of each department’s assigned
goals

5 steps of MBO Process:

1. Set organization goals
2. Set department goals
3. Discuss department goals
4. Set individual goals
5. Give feedback
· Using the Management Objectives Grid
4 things why use the MBO grid:
1. To list their supporting goals
2. To clarify what your own goals should be
3. What their goals are (for subordinates)
4. To track subordinates’ progress (start and end date)
The Strategic Management Process
Strategic plan-the company’s plan for how it will match its internal strengths and weaknesses
with external opportunities and threats in order to maintain a competitive advantage
Strategy-a course of action
Strategic management-the process of identifying and executing the organization’s strategic
plan, by matching the company’s capabilities with the demands of its environment
7 steps in strategic management process
1. Define the Current Business
2. Perform External and Internal Audit
 Environmental scanning worksheet-a simple guide for compiling relevant information about
the company’s environment
-includes things like economic competitive, and political trends
SWOT chart
3. Formulate a New Direction
Vision statement-a general statement of the firm’s intended direction and shows, in broad
terms, “what we want to become”
Mission statement-summarizes your answer to the question, “What business are we in?”
-vertically integrate, product scope, (diversify), geographic coverage, competitive advantage
4. Translate the Mission into Strategic Goals
5. Formulate Strategies to Achieve the Strategic Goals
6. Implement the Strategies
-strategies into action
7. Evaluate Performance
Improving Productivity Through HRIS: Using Computerized Business Planning Software
Types of Strategies
1. Corporate-wide strategic planning-identifies the portfolio of businesses that, in total,
comprise the company and the ways in which these businesses relate to each other
1. concentration (single) business-the company offers one product or product line,
usually in one market
-market penetration, product development, horizontal integration (which means
acquiring control of competitors in the same or similar markets with the same or
similar products)
2. diversification
-related diversification-diversifying so that a firm’s lines of businesses still possess some kind
of fit
-conglomerate diversification-diversifying into products or markets not related to the firm’s
current businesses or to one another
3. vertical integration-firm expands by, perhaps, producing its own raw materials, or selling its
product direct
4. consolidation-reducing the company’s size
5. geographic expansion-taking the business abroad
2. Business unit (competitive) strategic planning-identifies how to build and strengthen the
business’s long-term competitive position in the marketplace
Competitive advantage-any factors that allows a company to differentiate its product or service
from those of its competitors to increase market share
1. Cost leadership
2. Differentiation
3. Focuses
3. Functional (departmental) strategic planning-identify the broad activities that each
department will pursue in order to help the business accomplish its competitive goals
Strategic fit- Michael Porter: the idea that each department’s strategy needs to fit the parent
business’s competitive aims
The Top Manager’s Role in Strategic Planning
 *devising a strategic plan is top management’s responsibility
*Top management must decide what businesses the company will be in and where, and on
what basis it will compete
Departmental Manager’s Strategic Planning Roles
1. They Help Devise the Strategic Plan
*the heart of strategic planning is gathering information on the company’s strengths, weakness,
opportunities, and threats
Offshoring-the exporting of jobs from developed countries to countries where labor and other
costs are lower
2. They Formulate Supporting, Functional/Departmental Strategies
3. They Execute the Plans
Strategic Human Resource Management
Strategic Human Resource Management-formulating and executing human resource policies
and practices that produce the employee competencies and behaviors the company needs to
achieve its strategic aims
-strategic plan, implies certain workforce requirements, HR strategies (policies, practices)
*The human resource manager identifies the measures he or she can use to gauge the extent
to which its new policies and practices are actually producing the required employee skills and
behaviors
Strategic HR in Action: Improving Mergers and Acquisitions
1. Using HRM
2. Due Diligence Stage-before finalizing a deal, it is usual for the acquirer (or merger partners) to
perform “due diligence” reviews to assure they know what they’re getting into
-includes reviewing things like organizational culture and structure, employee compensation and
benefits, labor relations, pending employee litigation human resource policies and procedures
and key employees
3. Integration Stage-include choosing the top management team, ensuring top management
leadership, communicating changes effectively to employees, retaining key talent, and aligning
culture
4. Using HR Consultants
1. Manage the deal costs
2. Manage the messages
3. Secure the top team and key talent
4. Define and implement an effective HR service delivery stage
5. Develop a workable change management plan
6. Design, and implement the right staffing model
7. Aligning total rewards
Strategic Human Resource Management Tools
1. Strategy map
-shows the “big picture” of how each department’s performance contributes to achieving the
company’s overall strategic goals
-helps the manager understand the role his or her department plays in helping to execute the
company’s strategic plan
2. HR scorecard-is not a scorecard
 -refers to a process for assigning financial and nonfinancial goals or metrics to the human
resource management-related chain of activities required for achieving the company’s strategic
aims and for monitoring results
Computerized Scorecard process helps quantify the relationship between:
1. The HR activities (mount of testing, training)
2. The resulting employee behaviors (customer service)
3. The resulting firm-wide strategic outcomes and performance (customer satisfaction,
profitability)
3. Digital Dashboard
-presents the manager with desktop graphs and charts, and so a computerized picture of where
the company stands on all those metrics from the HR Scorecard process
Translating Strategy into Human Resource Policies and Practices: Einstein Medical Example
1. New Strategy
3 important organizational outcomes: initiate, adapt, deliver
2. New Employee Competencies and Behaviors
-dedicated, accountability, apply new knowledge
3. New Human Resource Policies and Practices
New Human Resource Programs:
1. New training program
2. Enriching work
3. Appropriate returns
4. Improved selection, orientation and dismissal procedures
Building Your Own High-Performance Work System
High-Performance Work System (HPWS)-a set of human resource management policies and
practices that promote organizational effectiveness
4 things about high-performing firms’ human resource management systems
1. It helps demonstrate why metrics are important
Human resource metric-the quantitative measure of some human resource
management yardstick such as employee turnover, hours of training per employee or qualified
applicants per position
2. The things human resource systems must do to be high-performance systems
- For example, they hire based on validated selection tests fill more jobs from
within, organize work around self-managing teams and extensively train
employees
3. High-performance practices generally aspire to help workers to manage themselves
- the point of the recruiting, screening, training, and other human resources
practices is to foster a trained, empowered, self-motivate and flexible
workforce
4. The notable differences between high-performance and low-performance companies’ human
resource management systems
- For example, high-performing companies have more than 4 times the
number of qualified applicants per job than do low performance
 Benchmarking-means comparing and analysing the practices of high-
performing companies to your own in order to understand what they do that makes them
better

Tools for Evidence-Based Human Resource Management

1. Human resource audits
2. Benchmarking
Science-a way of going about doing something/methodology
Ground Rules of Science
1. Objectivity
2. Experimentation
3. Quantification
4. Explanation
5. Prediction
6. Replication
4 steps in experimentation:
1. Setting up a hypothesis
Hypothesis-a tentative explanation of what to expect, usually based on prior theories and
observations
2. Developing a method for testing the hypothesis
3. Gather the data
Data-actually making the observations and measuring what you find
4. Drawing conclusions based on the findings
Quantification-they measure or assign numerical values to , the phenomenon that they’re
studying
HR audit-an analysis by which an organization measure where it currently stands and
determines what it has to accomplish to improve its HR function
Types of HR Audits:
1. Compliance audits-how well are we complying with relevant laws and regulations?
2. Best practices audits-how do our recruitment practices, hiring practices and so on compare
to those of “best practices” companies?
3. Strategic audits-are our HRM practices helping us to achieve the strategic goals, by fostering
the required employee behaviors
4. Function Specific audits-audits here concentrate on one or more specific human resource
management areas, such as compensation or training and development
The HR Audit Process
1. Decide on the scope of the audit
2. Draft an audit team
3. Compile the checklists and other tools that are available
4. Know your budget
5. Consider the legalities
6. Get top management support
7. Develop the audit checklist
8. Use the questionnaire to collect the data
9. Benchmark the findings
10. Provide feedback
11. Create action plans
3 illustrative sets of HR audit checklist areas and checklist items
1. Personnel Files
2. Wage and hour compliance
3. Headcount
HR Metrics and Benchmarking
Benchmark-compare your results to those of comparable companies
Types of metrics
-sales per employee, absence rate, cost per hire, health care costs per employee
1. Absence Rate
2. Cost per Hire
3. Health Care Costs per Employee
4. HR Expense Factor
5. Human Capital ROI

CH.4 JOB ANALYSIS

Talent Management-the goal-oriented and integrated process of planning, recruiting,
developing, managing and compensating employees
1. Understands that the talent management tasks are part of a single interrelated talent
management process
2. Makes sure talent management decisions (staffing, training, and pay) are goal-oriented
3. Consistently uses the same “profile of competencies, traits, knowledge, experience for
formulating recruitment plans for a job as for making selection, training, appraisal, payment
decisions for it
4. Actively segments and proactively manages employees
5. Integrates and coordinates all the talent management functions
The Basics of Job Analysis
Job Analysis-the procedure through which you determine the duties of these positions and
the characteristics of the people to hire for them
Job description-a list of what the job entails, (job duties, responsibilities, reporting
relationships, working conditions)
Job Specification-what kind of people to hire for the job
-a list of job’s human requirements that is the requisite education, skills, personality and son
on
Types of Information via the job analyses:
1. Work activities
2. Human behaviors
3. Machines, tools, equipment and work aids
4. Performance standards
5. Job context
6. Human requirements
Uses of Job Analysis Information
1. Recruitment and Selection
2. Compensation
3. Training
4. Performance Appraisal-compares each employee’s actual performance with his or her
performance standards
5. Discovering Unassigned Duties
6. EEO Compliance
Steps in Job Analysis
1. Decide how you’ll use the information
2. Review relevant background information such as organization charts, process charts and job
descriptions
Organization charts-show the organization-wide division of work, how the job in question
relates to other jobs and where the job fits in the overall organization
-show the title of each position and, by means of interconnecting lines, who reports to whom
and with whom the job incumbent communicates
Process chart-provides a more detailed picture of the work flow
Business reengineering
Job redesign
3. Select representative positions
4. Actually analyse the job—by collecting data on job activities, required employee behaviors,
working conditions and human traits and abilities needed to perform the job
5. Verify the job analysis information with the worker performing the job and with his or her
immediate supervisor
6. Develop a job description and job specification
Job Analysis Guidelines
1. Make the job analysis a joint effort by a human resource specialist, the worker and the worker’s
supervisor
2. If there are several employees doing the same job in different departments, collect job analysis
information from employees in different departments
3. Make sure the questions and process are clear to the employees
4. Use several different tools for the job analysis
Methods for collecting Job Analysis Information
1. Interview
1. unstructured interviews (“Tell me about your job”)
2. structured interviews-includes a series of questions regarding matters like the general
purpose of the job, supervisory responsibilities, education, experience, skills required

*Job analysis is often a prelude to changing a job’s pay rate. Employees therefore may
legitimately view the interview as a sort of “efficiency evaluation: that may affect their pay
-simple task statements
-ability statements
2. Questionnaire
3. Observation
Direct observation is especially useful when jobs consist mainly of observable physical
activities
*observation is usually not appropriate when the job entails a lot of mental activity
*reactivity: the worker’s changing what he or she normally does because you are
watching
Cycle-the time it takes to complete the job
4. Participant Diary/Logs
Diary/log-for every activity engaged in, the employee records the activity (along with the time)
in a log
5. Quantitative Job Analysis Techniques
Position analysis questionnaire (PAQ)
-consists of a detailed questionnaire containing 194 items (such as written materials) each
represent a basic element that may or may not play a role in the job
5 PAQ basic activities
1. Having decision-making, communication, social responsibilities
2. Performing skilled activities
3. Being physically active
4. Operating vehicles/equipment
5. Processing information
Department of Labor (DOL) Procedure-uses a set of standard basic activities called
worker functions to describe what a worker must do with respect to data, people,
things
functional job analysis-similar to DOL method
-rates the job not just on data, people and things, but also on the extent to which
performing the task also requires 4 other things—specific instructions, reasoning and
judgment, mathematical ability, and verbal and language facilities

6. Internet Based Job Analysis

-to develop a system that would allow the collection of job-related information with minimal
intervention and guidance, so that the system could be used in a distributed manner
1. shows workers a set of general work activities
2. select those general work activities that are important to their job
3. list specific duties of their jobs that fit each of those select work activities
Writing Job Descriptions
1. Job Identification
Job Title-specifies the name of the job
Date-the date the job description was actually approved
2. Job Summary
Job summary-should summarize the essence of the job and include only its major functions or
activities
3. Relationships
-shows the jobholder’s relationships with others inside and outside the organization
 (reports to, supervises, works with, outside the company)
4. Responsibilities and duties
-How do I determine what the job’s duties are and should be
Answer from the job analysis: this should reveal what employees on each job are
doing now
-the manager will turn to various sources of standardized job description
information
5. Authority of incumbent
6. Standards of performance
Standards of performance
-the lists the standards the company expects the employee to achieve under each of the job
description’s main duties and responsibilities
-guides both the employee and manager in assessing how the former is performing
-I will be completely satisfied with your work when…
Essential job functions-the job duties that employees must be able to perform, with or without
reasonable accommodation
7. Working conditions
8. Job specifications
How to use O*Net
1. Decide on a Plan
2. Develop an Organization chart
3. Use a simplified job analysis Questionnaire
4. Obtain Job Duties from O*Net
5. List the Job’s Human Requirements from O*NET
6. Finalize the Job Description
Writing Job Specifications
1. Specifications for Trained Versus Untrained Personnel
Writing job specifications for trained employee is relatively straightforward
-your job specifications might focus mostly on traits
-it’s usually not too difficult to determine the human requirements for placing already trained
people on a job

When you’re filling jobs with untrained people

-you must specify qualities such as physical traits, personality, interests, or sensory skills that
imply some potential for performing or for being trained to do the job

2. Specifications Based on Judgment

*Don’t ignore the behaviors that may apply to almost any job but that might not normally surface
through a job analysis

3. Job Specifications Based on Statistical Analysis

1. Some predictor (human trait such as height, intelligence or finger dexterity)
2. Some indicator or criterion of job effectiveness
5 steps:
 1. Analyze the job and decide how to measure job performance
2. Select personal traits like finger dexterity that you believe should predict successful
performance
3. Test candidates for these traits
4. Measure these candidates’ subsequent job performance
5. Statistically analyse the relationship between the human trait and job performance
*ideally, you do this with a statistical validation study, as in the 5-step approach outlined
earlier
*in practice, most employers probably rely more on judgmental approaches
Job Analysis in a worker-empowered world
Job-unchanging specific set of duties that one carries out for pay
From Specialized to Enriched Jobs
Job enlargement-means assigning workers additional same level activities
Job rotation-means systematically moving workers from one job to another
Job enrichment-means redesigning jobs in a way that increases the opportunities for the
worker to experience feelings of responsibility, achievement, growth and recognition
Lean production systems-inventories stay negligible due to the arrival just in time of parts
-organizes employees into work teams and emphasizes that all employees must dedicate
themselves to continuous improvement
Business process reengineering-means redesigning a business process so that small
multidisciplinary self-managing teams get the task done together, all at once
-create job descriptions that are based on competencies—on what employees these jobs must
be able to do—rather than on lists of specific duties
Competency-Based Job Analysis
Competencies-demonstrable characteristics of the person that make performance possible
Competency-based job analysis-describing the job in terms of measurable, observable,
behavioural competencies (knowledge, skills and/or behaviors) that an employee doing that job
must exhibit to do the job well
*Traditional job analysis is more job-focused
*Competency-based analysis is more worker-faced
1. general competencies
2. Leadership competencies
3. Technical competencies
How to Write Job Competencies-Based Job Descriptions
*Competency-based analysis usually comes down to identifying the basic skills an employee
needs to do the job
1. the basic skills needed for that job (technical expertise)
2. The minimum level of each skill required for that job or job family
*instead focus is on developing the new skills needed for the employees’ broader and
empowered responsibilities
1. skills-based pay plan
2. performance appraisals
3. training
*describing jobs in terms of competencies rather (or in addition to) duties
*traditional job descriptions may actually backfire if a high-performance work system is your goal
*the important thing is to ensure that each worker has the skills he or she needs to move among
the jobs
*describing jobs in terms of skills can help the company support its strategic aims

CH. 5 Personnel Planning and Recruiting

Recruitment and Selection Process
1. Personnel planning and forecasting
2. Recruiting internal/external candidates
3. Application Forms
4. Selection tools
5. Interview the candidates
Workforce/Employment/Personnel Planning-the process of deciding what position the firm
will have to fill, and how to fill them
Succession Planning-process of deciding how to fill executive jobs
3 things:
1. Personnel needs/labor demand
2. Supply of inside candidates
3. Supply of outside candidates

Forecasting Personnel Needs

1. Trend Analysis-studying variations in your firm’s employment levels over the last few
years
-study of a firm’s past employment needs over a period of years to predict future needs
2. Ratio Analysis-making forecasts based on the historical ratio between (1) some causal
factor (like sales volume) and (2) the number of employees required (such as number of
sales people)
3. Scatter Plot-shows graphically how 2 variables--such as sales and staffing levels--are
related
4. Markov/transition analysis-involves creating a matrix that shows the probabilities that
employees in the chain of feeder positions for a key job will move from position to
position and therefore be available to fill the key position
Drawbacks of scatter plots
1. Generally focus on historical sales/personnel relationships and assume that the firm’s
existing activities will continue as is
2. Tend to support compensation plans that reward managers for managing ever-larger
staffs, irrespective of the company’s strategic needs
3. Institutionalize existing ways of doing thing, even in the face of change

*Whichever forecasting tool you use, managerial judgment should play a big role
It’s rare that any historical trend, ratio, or relationship will simply continue
Forecasting the Supply of Inside Candidates
Qualifications/skills inventories-contain data on employees’ performance records,
educational background, and promotability
-manual or computerized records listing employees’ education, career and development
interests, languages, special skills and so on, to be used in selecting inside candidates for
promotion
Personnel inventory and development record form-compiles qualifications information on
each employees
Personnel replacement charts-for the firm’s top positions
-company records showing present performance and promotability of inside candidates for the
most important positions
Position replacement card-present performance, promotion potential, and training
-a card prepared for each position in a company to show possible replacement candidates and
their qualifications

Forecasting the Supply of Outside Candidates

*Applying a talent management philosophy to workforce planning requires being more proactive
Predictive workforce monitoring-requires paying continuous attention to workforce planning
issues

The need for Effective Recruiting

Employee recruiting-finding and/or attracting applicants for the employer’s open positions