MCO 101

Unit 6: Human Resources Management

MANAGEMENT

Managing Expectations
TOPIC DETAILS:
After going through UNIT 7, you should be able to:
1.
2.
3.
4.
5.
6.
7.
8.
MCO 101
Issue :2016

describe the basic steps involved in human resource planning.

explain how different employment laws affect human resource
practice.
explain how companies use recruiting to find qualified job
applicants.
describe the selection techniques and procedures that
companies use when deciding which applicants should receive
job offers.
describe how to determine training needs and select the
appropriate training methods.
discuss how to use performance appraisal to give meaningful
performance feedback.
describe basic compensation strategies and explain how they
affect human resource practice.
discuss the four kinds of employee separations: termination,
MANAGEMENT
downsizing, retirements,
and turnover.

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The Human Resource

Management Process
Determining Human
Resource Needs

Human Resource
Planning
Recruiting

Attracting Qualified
Employees

Selection
Training

Developing Qualified
Employees

Performance Appraisal
Compensation

Keeping Qualified
Employees
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Issue :2016

Employee Separation
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Human Resource Planning

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Issue :2016

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Internal Forecast Factors

MCO 101
Issue :2016

New positions

Transfers

New equipment and

technology

Deaths

Promotions

Eliminated positions

Organizations mission

Terminations

Retirements

Productivity of current
employees

Resignations

Turnover

Skills/education of
current employees

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External Forecast Factors

MCO 101
Issue :2016

Demographics of labor
supply

Unemployment rate

Labor unions

Geographic population
shifts

Availability of applicants

Technological advances

Competitors

Growth of businesses

Manufacturing-to
service-to informationbased economy shift
Economic conditions

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Forecast Methods

Direct
Managerial
Input

Based on projections of cash flows,

expenses, or financial measures

Best
Guess

Based on managers assessment of

current head count, plus a guess on
relevant internal/external factors

Statistical/
Historical Ratios

MCO 101
Issue :2016

Based on statistical methods, such as

multiple regression, in combination
with historical data

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Human Resource Information

Systems
Personal Data

Promotion Data

Work History

Educational
Data

HRIS

Company
Employment
History

Performance
evaluation
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Issue :2016

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Finding Qualified Workers

Recruiting
Job Analysis and
Recruiting
Information Collected by a
Job Analysis
work activities
tools and equipment
used to do the job
context in which the
job is performed
personnel
requirements for
performing the job

Internal
Recruiting
A pool of applicants who
already work for the
company
Promotion from within
Improves employee morale
and motivation

Methods for External

Recruiting
Advertising
Employee referrals
Walk-ins

Reduces employer time and

cost

Outside organizations

Job posting is the procedure

for internal advertising

Special events

Career path is a planned

sequence of jobs

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Issue :2016

External
Recruiting

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Employment services
Internet job sites

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Job Analysis and

Recruiting
Recruiting

Selection

Training

Performance
Separation
Appraisal

HR Subsystems
a written summary of
the qualifications
needed to successfully
perform a job

written description of the basic

tasks, duties, and
responsibilities required of an
employee holding a particular
job

Job
Specification

Job Description

Job Analysis
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Issue :2016

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Selection

MCO 101
Issue :2016

Application
Application Forms
Forms
and
and Rsums
Rsums

References
References and
and
Background
Background Checks
Checks

Selection
Selection
Tests
Tests

Interviews
Interviews

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Interviews

Unstructured Interviews: free-flow of

questions
Structured Interviews: interviewer
uses standard set of prepared
questions
Semi-structured Interviews: some
structure combined with interviewer
judgement

Planning the interview

Identify and define the
KSAO needed for job
Develop key behavioral
questions for each KSAO
For each KSAO , develop
a list of things to look for
in applicants responses
KSAO: Knowledge, skills,
abilities, and other
characteristics
MCO 101
Issue :2016

Situational Questions
Behavioral Questions
Background Questions
Job-Knowledge Questions

Conducting the interview

Create a relaxed interview
atmosphere
Review the applicants
information
Allocate adequate time
Put the applicant at ease
Tell the applicant what to
expect
Obtain job-related
information (refer to KSAO)
Describe the job and
organization
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After the interview

Review your notes
immediately
Evaluate the applicant on
each KSAO
Determine each applicants
probability of success and
make a hiring decision

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Training

Training
Training
Needs
Needs

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Training
Training
Methods
Methods

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Training
Training
Evaluation
Evaluation

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Determining Training
Needs
Conducting
Needs
Assessments

Identify
Performance
Deficiencies
Listen to
Customer
Complaints
Survey
Employers
and Managers
Test Employee
Skills and
Knowledge

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Issue :2016

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Step 1 Job Analysis

Step 2 Test Employee Skills

Compare Employee
Step 3 Skills to Required
Skills

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Training Methods

MCO 101
Issue :2016

Impart Information
and Knowledge

films and videos

lecture
planned readings

Develop Analytical
and Problem-Solving
Skills

case studies
coaching and mentoring
group discussions

Practice, Learn, or
Change Job
Behaviors

All of the above

Computer-based learning

on-the-job training
role-playing
simulations and games
vestibule training

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Evaluating Training

Reactions

how satisfied trainees were

with the program

Learning

how much employees improved

their knowledge or skills

Behavior

how much employees actually changed

their on-the-job behavior

Results

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Issue :2016

how much training improved

job performance

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Performance Appraisal
Measuring
Job
Performance

Sharing
Performance
Feedback

COMMON ERRORS
Central tendency: all workers are rated as
being average
Halo error: all workers are rated as
performing at the same level in all parts of
their jobs
Leniency error: all workers are rated as
performing at a high level
IMPROVING MEASURES
Objective performance measures:
quantifiable outcomes (output, scrap,
waste, sales, customer complaints, or
rejection rates)
Subjective performance measures: trait
rating scales; behavioral observation scales
(BOS)
MCO 101
Issue :2016

Managers often fail to effectively give

employees performance feedback
360-degree feedback: boss, subordinates,
peers, and the employee; best for
employee development
WHAT TO DISCUSS
Overall progress
Problems encountered in meeting job
requirements
Opportunities to improve performance
Long-range plans and opportunities
General discussion of possible plans and
goals for the coming year

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Keeping Qualified Workers

Compensation
Compensation
Decisions
Decisions

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Issue :2016

Employment
Employment
Benefits
Benefits

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Compensation Decisions
Pay
Level

Job
evaluation

Pay
Variability

Pay
Structure

Piecework

Hierarchical

Commission

Compressed

Profit sharing
Employee
stock
ownership
plans

Employment
Benefits

Cafeteria
plans
Flexible plans
Payroll
deductions

Stock options

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Issue :2016

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Employee Separations

MCO 101
Issue :2016

Terminations

Downsizing

Retirements

Turnover

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