Human Resource Management Module Units 1-33 PDF

**UNIT 1: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT** At the end of the unit, the student must have: 1.explained what human resource management is and how it relates to the management process; 2.illustrated the human resource responsibilities of line and staff (HR) managers....

**UNIT 1: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT** At the end of the unit, the student must have: 1.explained what human resource management is and how it relates to the management process; 2.illustrated the human resource responsibilities of line and staff (HR) managers. 3.identified trends influencing human resource management; and 4.Listed the main methods for staffing global organizations; **INTRODUCTION** Human beings are social beings and hardly ever live and work in isolation. We always plan, develop and manage our relations both consciously and unconsciously. The relations are the outcome of our actions and depend to a great extent upon our ability to manage our actions. From childhood each and every individual acquire knowledge and experience on understanding others and how to behave in each and every situations in life. Later we carry forward this learning and understanding in carrying and managing relations at our workplace. The whole context of Human Resource Management revolves around this core matter of managing relations at workplace. Since mid 1980's Human Resource Management (HRM) has gained acceptance in both academic and commercial circle. HRM is a multidisciplinary organizational function that draws theories and ideas from various fields such as management, psychology, sociology and economics. There is no best way to manage people and no manager has formulated how people can be managed effectively, because people are complex beings with complex needs. Effective HRM depends very much on the causes and conditions that an organizational setting would provide. Any Organization has three basic components, People, Purpose, and Structure. In 1994, a noted leader in the human resources (HR) field made the following observation: Yesterday, the company with the access most to the capital or the latest technology had the best competitive advantage; Today, companies that offer products with the highest quality are the ones with a leg up on the competition; But the only thing that will uphold a company's advantage tomorrow is the caliber of people in the organization. That predicted future is today's reality. Most managers in public- and private sector firms of all sizes would agree that people truly are the organization's most important asset. Having competent staff on the payroll does not guarantee that a firm's human resources will be a source of competitive advantage. However, in order to remain competitive, to grow, and diversify an organization must ensure that its employees are qualified, placed in appropriate positions, properly trained, managed effectively, and committed to the firm's success. The goal of HRM is to maximize employees' contributions in order to achieve optimal productivity and effectiveness, while simultaneously attaining individual objectives (such as having a challenging job and obtaining recognition), and societal objectives (such as legal compliance and demonstrating social responsibility). **ACQUIRE PRIOR KNOWLEDGE** Identify at least 10 hospitality and tourism businesses that have a very successful Human Resource Management practices. Fill in each line with your corresponding answer. 1\. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 6. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 2\. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 7. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 3\. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 8. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 4\. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 9. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 5\. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 10. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_  Direction: Based on your answers above, rank the top 3 most popular establishments that can serve as models of good service because of their Human Resource management practices. Justify your answer. Human Resource \| LinkedIn I. **What is Human Resource Management?** Human resources management (HRM) is a management function concerned with hiring, motivating and maintaining people in an organization. It focuses on people in organizations. Human resource management is designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals. HRM is the study of activities regarding people working in an organization. It is a managerial function that tries to match an organization's needs to the skills and abilities of its employees. HRM is the personnel function which is concerned with procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards the accomplishments of the organization's objectives. Therefore, personnel management is the planning, organizing, directing, and controlling of the performance of those operative functions (Edward B. Philippo). According to Invancevich and Glueck, "HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization". According to Dessler (2008) the policies and practices involved in carrying out the "people" or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising comprises of HRM. Generally HRM refers to the management of people in organizations. It comprises of the activities, policies, and practices involved in obtaining, developing, utilizing, evaluating, maintaining, and retaining the appropriate number and skill mix of employees to accomplish the organization's objectives. The goal of HRM is to maximize employees' contributions in order to achieve optimal productivity and effectiveness, while simultaneously attaining individual objectives (such as having a challenging job and obtaining recognition), and societal objectives (such as legal compliance and demonstrating social responsibility). In short Human Resource Management (HRM) can be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.  **Nature of HRM** HRM is a management function that helps managers to recruit, select, train and develop members for an organization. HRM is concerned with people's dimension in organizations. The following constitute the core of HRM: 1. **HRM Involves the Application of Management Functions and Principles.** The functions and principles are applied to acquiring, developing, maintaining and providing remuneration to employees in an organization. 2. **Decision Relating to Employees must be Integrated.** Decisions on different aspects of employees must be consistent with other human resource (HR) decisions. 3. **Decisions Made Influence the Effectiveness of an Organization.** Effectiveness of an organization will result in betterment of services to customers in the form of high quality products supplied at reasonable costs. 4. **HRM Functions are not Confined to Business Establishments Only** but applicable to non-business organizations such as education, health care, recreation and like. HRM refers to a set of programs, functions and activities designed and carried out in order to maximize both employee as well as organizational effectiveness. 18,261 Human resource management Stock Photos \| Free & Royalty-free Human resource management Images \| Depositphotos **Scope of HRM** The scope of HRM is indeed vast. All major activities in the working life of a worker--from the time of his or her entry into an organization until he or she leaves the organization comes under the purview of HRM. The major HRM activities include HR planning, job analysis, job design, employee hiring, employee and executive remuneration, employee motivation, employee maintenance, industrial relations and prospects of HRM. The scope of Human Resources Management extends to: - All the decisions, strategies, factors, principles, operations, practices, functions, activities and methods related to the management of people as employees in any type of organization. - All the dimensions related to people in their employment relationships, and all the dynamics that flow from it. These are given below: - Human Resource Planning - Design of the Organization and Job - Selection and Staffing - Training and Development - Organizational Development - Compensation and Benefits - Employee Assistance - Union/Labour Relations - Personnel Research and Information System a. **Human Resource Planning:** The objective of HR Planning is to ensure that the organization has the right types of persons at the right time at the right place. It prepares human resources inventory with a view to assess present and future needs, availability and possible shortages in human resource. Thereupon, HR Planning forecast demand and supplies and identify sources of selection. HR Planning develops strategies both long-term and short-term, to meet the man-power requirement. b. **Design of Organization and Job:** This is the task of laying down organization structure, authority, relationship and responsibilities. This will also mean definition of work contents for each position in the organization. This is done by "job description". Another important step is "Job specification". Job specification identifies the attributes of persons who will be most suitable for each job which is defined by job description. c. **Selection and Staffing:** This is the process of recruitment and selection staff. This involves matching people and their expectations with which the job specifications and career path available within the organization. d. **Training and Development:** This involves an organized attempt to find out training needs of the individuals to meet the knowledge and skill which is needed not only to perform current job but also to fulfil the future needs of the organization. e. **Organizational Development:** This is an important aspect whereby "Synergetic effect" is generated in an organization i.e. healthy interpersonal and inter-group relationship within the organization. f. **Compensation and Benefits:** This is the area of wages salaries administration where wages and compensations are fixed scientifically to meet fairness and equity criteria. In addition labour welfare measures are involved which include benefits and services. g. **Employee Assistance:** Each employee is unique in character, personality, expectation and temperament. By and large each one of them faces problems everyday. Some are personal, some are official. In their case he or she remains worried. Such worries must be removed to make him or her more productive and happy. h. **Union-Labour Relations:** Healthy industrial and labour relations are very important for enhancing peace and productivity in an organization. This is one of the areas of HRM. i. **Personnel Research and Information System:** Knowledge on behavioral science and industrial psychology throws better insight into the workers expectations, aspirations and behaviour. Advancement of technology of product and production methods have created working environment which are much different from the past. Globalization of economy has increased competition many fold. Science of ergonomics gives better ideas of doing a work more conveniently by an employee. Thus, continuous research in HR areas is an unavoidable requirement. It must also take special care for improving exchange of information through effective communication systems on a continuous basis especially on moral and motivation.  **Objectives of HRM** The primary objective of HRM is to ensure the availability of a competent and willing workforce to an organization. The specific objectives include the following: 1. Human capital: assisting the organization in obtaining the right number and types of employees to fulfill its strategic and operational goals 2. Developing organizational climate: helping to create a climate in which employees are encouraged to develop and utilize their skills to the fullest and to employ the skills and abilities of the workforce efficiently 3. Helping to maintain performance standards and increase productivity through effective job design; providing adequate orientation, training and development; providing performance-related feedback; and ensuring effective two-way communication 4. Helping to establish and maintain a harmonious employer/employee relationship 5. Helping to create and maintain a safe and healthy work environment 6. Developing programs to meet the economic, psychological, and social needs of the employees and helping the organization to retain the productive employees 7. Ensuring that the organization is in compliance with provincial/territorial and federal laws affecting the workplace (such as human rights, employment equity, occupational health and safety, employment standards, and labour relations legislation). To help the organization to reach its goals 8. To provide organization with well-trained and well-motivated employees 9. To increase the employees satisfaction and self-actualization 10. To develop and maintain the quality of worklife 11. To communicate HR policies to all employees 12. To help maintain ethical police and behavior The above stated HRM objectives can be summarized under four specific objectives: societal, organizational, and functional and personnel. 1. **Societal Objectives:** seek to ensure that the organization becomes socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization. The failure of the organizations to use their resources for the society's benefit in ethical ways may lead to restriction. 2. **Organizational Objectives:** it recognizes the role of HRM in bringing about organizational effectiveness. It makes sure that HRM is not a standalone department, but rather a means to assist the organization with its primary objectives. The HR department exists to serve the rest of the organization. 3. **Functional Objectives:** is to maintain the department's contribution at a level appropriate to the organization's needs. Human resources are to be adjusted to suit the organization's demands. The department's value should not become too expensive at the cost of the organization it serves. 4. **Personnel Objectives:** it is to assist employees in achieving their personal goals, at least as far as these goals enhance the individual's contribution to the organization. Personal objectives of employees must be met if they are to be maintained, retained and motivated. Otherwise employee performance and satisfaction may decline giving rise to employee turnover. Human resources - definition and meaning - Market Business News **HRM Objectives and Functions** +-----------------------------------+-----------------------------------+ | **HRM Objectives** | **Supporting Functions** | +===================================+===================================+ | 1. Societal Objectives | Legal compliance | | | | | | Benefits | | | | | | Union-management relations | +-----------------------------------+-----------------------------------+ | 2. Organizational Objectives | Human Resource Planning | | | | | | Employee relations | | | | | | Selection | | | | | | Training and development | | | | | | Appraisal | | | | | | Placement | | | | | | Assessment | +-----------------------------------+-----------------------------------+ | 3. Functional Objectives | Appraisal | | | | | | Placement | | | | | | Assessment | +-----------------------------------+-----------------------------------+ | 4. Personal Objectives | Training and development | | | | | | Appraisal | | | | | | Placement | | | | | | Compensation | | | | | | Assessment | +-----------------------------------+-----------------------------------+  II. **IMPORTANCE OF HRM** Human Resources management has an important role to play in equipping organizations to meet the challenges of an expanding and increasingly competitive sector. Increase in staff numbers, contractual diversification and changes in demographic profile which compel the HR managers to reconfigure the role and significance of human resources management. The functions are responsive to current staffing needs, but can be proactive in reshaping organizational objectives. All the functions of HRM are correlated with the core objectives of HRM as seen on the table above. For example personal objectives is sought to be realized through functions like remuneration, assessment etc. HR management can be thought of as seven interlinked functions taking place within organizations. Additionally, external forces---legal, economic, technological, global, environmental, cultural/geographic, political, and social---significantly affect how HR functions are designed, managed, and changed. The can be grouped as follows: 1. **Strategic HR Management:** As a part of maintaining organizational competitiveness, strategic planning for HR effectiveness can be increased through the use of HR metrics and HR technology. Human resource planning (HRP) function determine the number and type of employees needed to accomplish organizational goals. HRP includes creating venture teams with a balanced skill-mix, recruiting the right people, and voluntary team assignment. This function analyzes and determines personnel needs in order to create effective innovation teams. The basic HRP strategy is staffing and employee development. 2. **Equal Employment Opportunity:** Compliance with equal employment opportunity (EEO) laws and regulations affects all other HR activities. 3. **Staffing:** The aim of staffing is to provide a sufficient supply of qualified individuals to fill jobs in an organization. Job analysis, recruitment and selection are the main functions under staffing. 4. **Talent Management and Development:** Beginning with the orientation of new employees, talent management and development includes different types of training. Orientation is the first step towards helping a new employee to adjust himself to the new job and the employer. It is a method to acquaint new employees with particular aspects of their new job, including pay and benefit programmes, working hours and company rules and expectations. 5. **Total Rewards:** Compensation in the form of pay, incentives and benefits are the rewards given to the employees for performing organizational work. Compensation management is the method for determining how much employees should be paid for performing certain jobs. Compensation affects staffing in that people are generally attracted to organizations offering higher level pay in exchange for the work performed. To be competitive, employers develop and refine their basic compensation systems and may use variable pay programs such as incentive rewards, promotion from within the team, recognition rewards, balancing team and individual rewards etc. This function uses rewards to motivate personnel to achieve an organization's goals of productivity, innovation and profitability. Compensation is also related to employee development in that it provides an important incentive in motivating employees to higher levels of job performance to higher paying jobs in the organization. 6. **Risk Management and Worker Protection:** HRM addresses various workplace risks to ensure protection of workers by meeting legal requirements and being more responsive to concerns for workplace health and safety along with disaster and recovery planning. 7. **Employee and Labor Relations:** The relationship between managers and their employees must be handled legally and effectively. Employer and employee rights must be addressed. It is important to develop, communicate, and update HR policies and procedures so that managers and employees alike know what is expected. In some organizations, union/management relations must be addressed as well. The term labour relation refers to the interaction with employees who are represented by a trade union. Unions are organizations of employees who join together to obtain more voice in decisions affecting wages, benefits, working conditions and other aspects of employment. With regard to labour relations the major function of HR personnel includes negotiating with the unions regarding wages, service conditions and resolving disputes and grievances. **Responsibilities of the Line and Staff Managers in HR**Human Resources High Res Stock Images \| Shutterstock Generally, HR departments are composed of several functional areas, each with staff who are specialists in their fields. These functional areas are: employee/labor relations; compensation and benefits; employee training and development; recruiting or talent acquisition; and health and safety. Line and staff managers in the HR department supervise these specialists, and report to an HR manager or director. The responsibilities of an HR line manager vary according to the functional area and job duties. **Employee Relations and Labor Relations** Depending on staff qualifications and HR department size, the employee relations and labor relations functions might be combined, because the skill sets required to work in these areas are similar. For example, employee relations specialists handle workplace complaints, ranging from an employee who believes she has been the subject of disparate treatment to a supervisor who is having challenges resolving conflict among her team members. Labor relations specialists, on the other hand, traditionally work for companies with a union workforce. They are responsible for administering the labor union contract (called the collective bargaining agreement), interpreting clauses in the agreement, participating in contract negotiations and managing the union grievance process. The line and staff manager for employee relations and labor relations usually reports complaints and grievances on the aggregate level to the HR department manager, and participates in strategic planning to improve employee and labor relations. In addition, the line and staff manager may be the point person who interacts with legal counsel when the company receives complaints from government enforcement agencies. **Compensation and Benefits** Compensation and benefits specialists establish wage and salary rates and ensure the wages and salaries are equitable; they also administer company benefits such as health insurance coverage, retirement plan options and employee short- and long-term disability. They are typically involved in managing the Family and Medical Leave Act (FMLA) process, and providing guidance to department managers about employee rights under FMLA. The compensation and benefits line manager has a dual responsibility to oversee pay and benefits issues, including resolving vacation and sick leave issues. Line and staff managers in this functional area report to the HR manager or director, and depending on their qualifications, may be responsible for determining the strategic direction of the company\'s current and future compensation structure based on their knowledge of labor market trends and the organization\'s plan for growth. **Employee Training and Development** Specialists in this area often are responsible for developing curriculum, delivering new-hire orientation and providing developmental training, such as training for newly promoted supervisors. In addition, they might be responsible for researching off-site training options and processing requests for employee attendance at workshops and trade conferences. The training and development line manager is responsible for high-level duties in addition to supervising the specialists. He may be involved in conducting needs assessments and skills gap analyses to determine whether workforce planning efforts are effective, whether job classifications are accurate and if employees are in the right jobs to match their skills. In addition, training and development line managers may be responsible for determining the strategic direction for overall workforce development that should align with the company\'s goals. **Recruiting and Talent Acquisition** Line and staff managers for this functional area are likely to be more involved in the strategic brand of recruitment and employment, which is talent acquisition. Talent acquisition focuses on long-term workforce planning -- determining how to align the workforce with the organization\'s needs, whether those are simply sustaining operations or planning for business growth. These line and staff managers are forward-thinking supervisors who also look at labor market trends and availability of workers. Their direct reports are recruiting specialists who post online ads, screen applicants, conduct preliminary interviews, distinguish between applicants and qualified candidates, and interact with department hiring managers concerning their staffing needs. **Employee Health and Safety** In some organizations, employee health and safety is a separate department; however, because it falls under the purview of employee welfare, it makes sense for it to be part of HR. Employee safety specialists perform workplace inspections to ensure employees aren\'t exposed to hazardous materials and that employees are safely using equipment and machinery. They may also interact with the Occupational Safety and Health Administration (OSHA) to correct workplace issues concerning safe use of materials and equipment. The line and staff manager for health and safety oversees inspections and reports to the HR manager or director. In addition, the line and staff manager may approach employee health and safety from a strategic vantage point by incorporating employee wellness as a part of the overall mission to ensure a safe work environment. III. **TRENDS SHAPING HUMAN RESOURCE MANAGEMENT** Human Resources have never been more indispensable than today. The competitive forces that we face today will continue to face in the future demanding organizational excellence. In order to achieve this extended quality, organization's need to focus on learning, quality development, teamwork, and reengineering. These factors are driven by the way organizations implement things and how employees are treated. 1. **HR Can Help in Dispensing Organizational Excellence:** To achieve this paradigm shift in the organization excellence there is a need for organizations to reform the way in which work is carried out by the Human Resource department. By designing an entirely new role and agenda that results in enriching the organization's value to customers, investors and employees, HR can help in delivering organizational excellence. This can be carried out by helping line managers and senior managers in moving planning from the conference room to the market place and by becoming an expert in the way work is organized and executed. 2. **Human Resource Should be a Strategy Partner:** HR should also become a partner in strategy executions by propelling and directing serious discussions of how the company should be organized to carry out its strategy. 3. **HR Accountability Should be Fixed to Ensure Employee Commitment:** HR must be held accountable for ensuring that employees feel committed to the organization and contribute fully. They must take responsibility for orienting and training line management about the importance of high employee morale and how to achieve it. The new HR should be the voice of employees in management discussions. The new role for HR might also involve suggesting that more teams be used on some projects or that employees be given more control over their own work schedules. 4. **The New HR Must Become a Change Agent:** The new HR must become a change agent, which is building the organization's capacity to embrace and capitalize on change. Even though they are not primarily responsible for executing change it is the duty of the HR manager to make sure that the organization carries out the changes framed for implementation. 5. **Improving the Quality of HR:** The most important thing that managers can do to drive the new mandate for HR is to improve the quality of the HR staff itself. Senior executives must get beyond the stereotypes of HR professionals as incompetent support staff and unleash HR's full potential. 6. **Change in Employment Practices:** The balance sheet of an organization shows human resource as an expense and not as a Capital. In the information age, it is perceived that the machines can do the work more efficiently than most people, however; technology to work is dependent on people. 7. **Benchmarking Tool Must be Mastered by HR Professionals:** HR professionals must master benchmarking, which is a tool for continuous improvement- directing the human side associated with the strategic path adopted by the organization. Through this, HR department will start appreciating the changes happening within and outside the environment while expanding the knowledge about how to add value to decision making at the highest level of the organization. 8. **Aligning Human Resources to Better Meet Strategic Objectives:** Too often organizations craft their strategy in a vacuum. Some organizations don't even include key people during strategy formulation resulting in lacunae between the actual problems and the solutions implemented- as critical inputs are not sought from those individuals who are supposed to implement the new strategies. 9. **Promote From Within and Invest in Employees:** Promoting employees from within sends a powerful message that the organization's employees are valued. New blood and fresh ideas often come from newcomers to the organization. To avoid stagnation of the firm, new ideas and approaches are critical. Yet to improve employee morale, promoting individuals from within the organization is essential. This communicates that the organization values their employees and invests in their human resources. 10. **Review the Recruitment and Selection Process:** A key element of human resource planning is ensuring that the supply of appropriate employees (with the right skill mix) is on board when needed. This requires a proactive approach whereby the organization anticipates its needs well in advance. It is important to identify the competencies being sought. That is, the criteria upon which selection decisions are to be made should be decided in advance. A firm must identify those skill sets required by employees to be successful. Charles O'Reilly suggests that companies should hire for attitude (perhaps even more so than technical skills). That is, the fit of the individual with the values of the organization and the culture of the firm should also be considered when selecting employees. This has been referred to as the person-organization- fit. It is no longer enough to simply consider the person's fit (and technical skill set) with the job. Part of the employee's fit with the organization should focus on the core values and beliefs of the organization. This will increase employees' contributions to the overall success of the organization if they already embrace the core values of the organization prior to their selection. 11. **Communicate Mission and Vision:** If employees are expected to contribute to the attainment of the organization's strategic objectives, they must understand what their role is. This can be achieved in part by clearly communicating the mission and vision statements of the firm. The old adage is certainly true. If a person does not know where he or she is going, any road will get him or her there. 12. **Use Teams to Achieve Synergy:** Synergy can be concisely defined as "two plus two equals five". In other words, the whole is greater than the sum of the parts. So much more can be achieved as people work together. Through the effective use of teams, organizations can often achieve synergy. Team goals, however, must be aligned with the organization's strategic objectives. Aligning team objectives with overall corporate objectives ensures that people are working toward the same goal. IV. **Introduction to the Global Human Resources Discipline** **Scope** The global human resources functional area deals with all aspects of HR within the worldwide context, including U.S.-based entities doing business internationally or non-U.S.-based entities operating in their own locale or worldwide. It includes matters such as management of global workforces, expatriation and repatriation, HR practices and laws around the world, and issues arising in specific countries and regions. It also includes matters that focus on careers, communications, legal and regulatory issues, technology, metrics, outsourcing and effective practices in the global HR arena. It does not include matters involving U.S. immigration policies and visas or the requirements for verifying eligibility to work in the United States, which are encompassed in the staffing management functional area. **Overview** HR professionals in organizations ranging from *Fortune *100 multinational corporations to smaller firms that import raw materials from abroad need information on how to practice human resources in a global economy.  A multitude of international trade agreements allows for the ease and cost-efficiency of products moving across borders, and according to the U.S. Department of Commerce, nearly 96 percent of the world\'s customers lie outside the United States. This represents a phenomenal market opportunity for companies worldwide. Even HR professionals working in organizations with a primarily local or domestic focus recognize that global issues have an increasing influence on markets, supply chains and business practices. . HR practitioners must develop new competencies, mainly through developing cross-cultural understanding and substantial knowledge in international employment legislation, labor law and economic trends.  Companies are lured into developing countries not only by cheap labor but also by increasingly skilled or trainable labor and proximity to growth markets. No longer are other countries entirely dependent on the health of the U.S. economy. Developing countries---particularly China and India---are driving a wave of global growth, and emerging markets such as Indonesia, Malaysia, the Philippines, South Africa, Thailand, Turkey and Vietnam are rising sources of talent.  **Global Facets of HR Functional Areas** The practice of global human resources is a functional area in itself, as well as a facet of all other HR functional areas. ***Business leadership*** The subject of global business leadership is the focus of much research, and increasingly, organizations are looking at what it takes to be an effective global leader. While there is no quick answer, research points to common themes to help HR professionals build a global leadership development program.  Part of the challenge of global leadership is adjusting leadership styles to the particular culture(s) where the organization does business.  An effective global leader is one who has the ability to master international business issues, set direction, effectively lead people from different cultures and nations, and align global resources. A global leader should have a global mindset (i.e., the ability to take an international perspective and be inclusive of other cultures and views), sensitivity toward global diversity (i.e., the various ethnic, cultural, religious and class groups that exist within a global enterprise), and respect for human dignity and the welfare of all employees---wherever they may live and work. The global leader must be concerned with global integration, that is, a strategy that emphasizes a consistency of approach, standardization of processes and a common corporate culture across global operations despite differences among cultures and laws.  ***Benefits and compensation*** The cost of talent is a key factor in employment considerations and particularly so for companies operating in multiple global markets or thinking about expanding across borders. As companies aim to streamline their benefits and compensation plans, many attempt to globalize their offerings. What often emerges from this effort is a global philosophy about how employees are remunerated that is flexible enough to be adapted locally. More countries that were slow to adapt individual incentive plans are warming up to the practice. While a global incentive plan helps create a more cohesive culture, implementing it can be challenging. Knowledge of local payroll laws and wage and hour requirements is needed to ensure compliance in other countries. As in the U.S., these requirements may include issues such as minimum wage and overtime pay, income tax withholding and reporting, unemployment contributions, retirement and social services withholding and filing, and record retention requirements. Different types of incentive pay often come into play in a world market. Decades ago, for example, oil companies lured employees into taking dangerous jobs overseas by offering extra compensation, coined \"danger pay.\" Today, incentive allowances (sometimes referred to as location allowances), such as mobility, foreign service, hardship and danger pay, are premiums offered by companies to encourage employees to accept different types of expatriate assignments. To determine the right amount, organizations need to take into consideration several factors, such as housing, crime and remoteness. While international HR consultants are probably the best option for setting up global pay structures, employers also may search the Internet for international salary surveys and fringe benefits data. However, keep in mind that some data found on the Internet may be misleading or unreliable. ***Ethics and social responsibility*** Business ethics and sustainability are important elements of operating in another country. An organization\'s practices in this area can be** **effective in communicating the employment brand to all potential and existing employees as well as to governments in other countries. Corporate social responsibility (CSR) is a burgeoning global trend that HR can influence.  CSR is defined as the commitment by organizations to balance financial performance with contributions to the quality of life of their employees, the local community and society at large. HR has an opportunity to use CSR to brand its employment message globally. Workers actively seek out employers that promote social and environmental responsibility. CSR initiatives help bring together disparate multinational company cultures.  ***Diversity*** Cultural differences, language barriers, religious practices and sexual orientation all factor into the modern workplace. Take this concept global, and even more complicated issues emerge. Transplanting an organization\'s diversity programs in another country requires researching the issues, which may be vastly different from the ones encountered in the home country*.* The [CIA World Fact Book](https://www.cia.gov/library/publications/the-world-factbook/) and the [Library of Congress](http://www.loc.gov/law/help/guide/nations.php) have country-specific information related to cultural differences. Expatriates will need to be familiar with the country\'s culture to successfully transition into the new environment. ***Employee relations*** Living and working internationally bring forth challenging issues in employee relations, performance, absenteeism and motivation. One way of dealing with these is through a global employee assistance program (EAP)---often referred to as an international EAP, or IEAP. IEAPs provide solutions in diverse cultural situations to support or maintain maximum on-the-job performance. Consequently, multinational organizations have begun to offer their international employees---including their non-U.S.-based workforce---the benefits of an IEAP. ***Labor relations*** Global labor relations, in particular the flexibility of the labor market, is one of the first factors to take into consideration when deciding where to operate abroad. How pervasive are the unions? How powerful are they? What industries do they cover? What are the restrictions?  ***Safety and security*** An organization\'s safety and security policies, procedures and practices may need to be developed, revised and implemented as a consequence of its presence in a foreign country. Understanding and following a host country\'s relevant laws and regulations and establishing the organization\'s own safety and security measures are essential.  Compliance with the U.S. Occupational Safety and Health Act will not be adequate or even appropriate when operating in other countries, which have their own labor and safety regulations. In some aspects there is a need for global consistency; for example, the [United Nations Globally Harmonized System of Classification and Labelling of Chemicals](https://www.epa.gov/pesticide-labels/pesticide-labels-and-ghs-comparison-and-samples) has addressed chemical labeling and classification. Understanding various global risks is necessary to formulate appropriate safety and security policies. For example, threats of terrorism against certain country nationals doing business in particular countries are a fact of life. In some areas, expatriates, particularly executives, may need security protection.  Geographic, cultural and technological factors pose challenges in developing safety and security plans that integrate a variety of jurisdictional imperatives and cultural norms. ***Staffing management*** Globalization poses challenges in global staffing management for multinational corporations. What works well in one country might not work nearly as well in another country---and might even be illegal. Some particular staffing management challenges associated with global HR include global recruiting, global relocation, international assignment management and global outsourcing. The U.S. Department of State website has visa and work permit information as well as additional country-specific information. If you are planning to use expatriates, obtaining and communicating country-specific visa requirements will be an important step in preparing these individuals for their new assignments. **Global recruiting. **Thanks to the accelerating globalization trend, companies have more options to find the best people for the right jobs. Global HR professionals are being asked to source candidates for numerous positions---not just IT and support, but management, research and development (R&D), sales and marketing---from around the world. HR will need to identify, screen, test, interview and move talent into jobs more quickly and seamlessly than ever before, challenging HR professionals to figure out which recruitment strategies work best in which cultures. When recruiting in Asia, for example, HR should focus on attracting candidates with diversity, work/life balance, recognition and project responsibility. When recruiting in Europe, the focus may be on empowerment, job fit, work challenge and opportunities for movement. **Global relocation. **Concerns about family and trailing-spouse issues continue to dominate the reasons why employees turn down expatriate assignments. Careful selection, preparation and communication can help ease the transition. As for logistics and support, each destination, be it China or the U.K., comes with its own special challenges.  **International assignment management. **International assignment management is a complex function but one that offers the HR professional many opportunities for growth as well as the chance to contribute positively to the expatriate employee\'s experience and the organization\'s bottom line. A failed assignment can be quite expensive: The cost of a three-year international assignment can easily exceed \$3 million. The increasing importance of global business to a company\'s bottom line means that international assignment management will only grow in value as a critical skill for HR practitioners.  Due to family concerns and the lack of robust repatriation programs, many employees are reluctant to take international assignments. HR professionals are responding by getting creative with shorter-term assignments or commuter options for employees, depending on the scope of the project. **Repatriation** HR professionals can take a number of steps to ensure that expatriates enjoy a smooth return home and that the company can maximize the expatriates\' valuable international experiences. To improve retention and satisfaction of returning expatriates, HR professionals should consider the following suggestions: - Conduct post-assignment career planning before the individual leaves the foreign post. - Facilitate mentor relationships among senior executives and expatriates. - Assign a home-country mentor and an overseas mentor to expatriates. - Maintain strong, regular communication during global assignments. - Require home visits, and encourage expatriates to use them to network professionally. - Keep expatriates in the forefront of succession planning. - Provide repatriation assistance to address assimilation and reverse culture shock when returning home. - Tap repatriates to serve as trainers for future expatriates. - Provide forums for repatriates to share their experiences. - Develop a tracking system to determine if repatriation turnover is a problem. **Offshoring. **Offshoring** **is the relocation of business processes and services from one country to another. As technology allowed for more white-collar jobs to be offshored to India, China and Eastern Europe, many U.S. companies rushed into the practice, lured by promises of major savings in payroll. But reality quickly set in as cultural challenges emerged, quality of service and products declined, and a consumer backlash set in. Offshoring of HR, IT and R&D will continue, but companies will need to consider the pros and cons, the training and knowledge transfer, and the cultural understanding needed to make the practice successful.  ***Technology*** Between a growing global economy and the shift from production orientation to a knowledge and service orientation, organizations increasingly seek avenues that offer greater flexibility to remain competitive. Recruiting and retaining the best talent---wherever that talent may be---is one of the best ways to compete. Accordingly, HR needs to leverage technology solutions to enable employees in dispersed locations to work together in global virtual teams. By using virtual teams, companies can take advantage of competitive synergies that teamwork offers along with the advancements in information and communication technologies.  When addressing the multiple facets of global HR management, employers must ensure compliance by understanding and managing international employment law and cultural differences that affect legal and ethical business practices. **Templates and Tools** [International Assignment Management: Expatriate Policy and Procedure](https://www.shrm.org/resourcesandtools/tools-and-samples/policies/pages/expatriateprocedure(expanded).aspx) [What are the differences among a local national, an expatriate, a third-country national, and an expatriate?](https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/whatarethedifferencesamongalocalnational,anexpatriate,athird-countrynational,andaninpatriate.aspx) [Can a U.S. employer engage someone living in another country as an independent contractor?](https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/engagingindependentcontractorsabroad.aspx) **Summary** It is critical that today's organizations align their human resources to better meet strategic objectives. A failure to do so results in wasted time, energy, and resources. Organizations are more likely to achieve this alignment with their corporate objectives when they review their recruitment and selection processes for fit, communicate the mission and vision statements, use joint goal setting, design an appropriate reward system, empower the workforce, promote and develop from within, and use teams to achieve synergy. Human Resource Management is the management function that helps the managers to plan, recruit, select, train, develop, remunerate and maintain members for an organization. HRM has four objectives of societal, organizational, functional and personal development. An organization must have set policies; definite procedures and well defined principles relating to its personnel and these contribute to the effectiveness, continuity and stability of the organization. **Direction:** Answer briefly the following questions: (5 pts. each number) 1. Define Human Resource Management. What are its functions and objectives? 2. Elaborate the nature of HRM and its importance in the present scenario. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_  1\. Create an e-poster/collage illustrating the responsibilities of line and staff managers. 2\. Group or individual presentation identifying trends that influence human resource management and how it affected the chosen hospitality firm. 3\. Create a chart summarizing the main methods for staffing global organizations. 1 In 3 Job Candidates Removed From Consideration Following Reference Checks, according to survey -- IMDiversity - Aswathappa. K. (2008), Human Resource and Personnel Management (5th edition), Tata McGraw-Hill Publishing Company Ltd., New Delhi. - Biswajeet Pattanayak (2001), Human Resource Management, Prentice Hall of India Pvt. Ltd., New Delhi. - Lloyed L. Byers and Leslie W. Rue (1997), Human Resource Management (5th edition), The McGraw-Hill Companies, USA. - Michael Armstrong (1999), A Handbook of Human Resource Management Practice (7th edition), Kogan Page Limited, 120 Pentonvelle Road, London.   . **UNIT 2: RECRUITMENT, PLACEMENT AND TESTING** **Introduction** **INTRODUCTION**  I. Identify by checking the box of the following images that signifies the process of human Resource Planning. Forecasting with Examples -- StudiousGuy  -- -------------------------------------------------------------------------------------------------------------------------------- -- ------------------------- labor supply Archives - The FinAnalyst  Premium Vector \| People in office with their activities, discussing, working with computer, with office interior illustration  **Directions:** From the pictures above choose only one that helped you accomplished your tasks as a student. Answer the following questions below. Are the task achieved on time?\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_What are the advantages of being Punctual?\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Did you experienced being late in submitting necessary requirements as a student?\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_What are the preparations you did in order to achieve your goals?\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Describe in the box the experience that you had including the place, accessibility, pressure and the rewards and the learnings that you had. Use the back of the sheet if necessary. Please be guided by the following rubric. - 30 pts: 20 or more sentences - 15pts: less than 10 sentences - 0 pts: no description/answer **The Process of Human Resource Planning** In order to meet business objectives and gain an advantage over competitors, organizations should carry out human resource planning. To do this, organizations need a clear idea of the strengths and weaknesses of their existing internal labor force. They also must know what they want to be doing in the future---what size they want the organization to be, what products and services it should be producing, and so on. This knowledge helps them define the number and kinds of employees they will need. Human resource planning compares the present state of the organization with its goals for the future, then identifies what changes it must make in its human resources to meet those goals. The changes may [include downsizing, training existing employees in new skills, or hiring new employees.] **Forecasting** The first step in human resource planning is **forecasting,** as shown in the top portion of Figure 2.1. In personnel forecasting, the HR professional tries to determine the supply of and demand for various types of human resources. The primary goal is to predict which areas of the organization will experience labor shortages or surpluses. Forecasting supply and demand can use statistical methods or judgment. Statistical methods capture historic trends in a company's demand for labor. Under the right conditions, these methods predict demand and supply more precisely than a human forecaster can using subjective judgment. But many important events in the labor market have no precedent. When such events occur, statistical methods are of little use. To prepare for these situations, the organization must rely on the subjective judgments of experts. Pooling their "best guesses" is an important source of ideas about the future.  **Forecasting the Demand for Labor** Usually an organization forecasts demand for specific job categories or skill areas. After identifying the relevant job categories or skills, the planner investigates the likely demand for each. The planner must forecast whether the need for people with the necessary skills and experience will increase or decrease. There are several ways of making such forecasts. **Figure 2.1** Overview of the Human Resource Planning Process At the most sophisticated level, an organization might use **trend analysis,** constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year. These statistics are called **leading indicators**---objective measures that accurately predict future labor demand. They might include measures of the economy (such as sales or inventory levels), actions of competitors, changes in technology, and trends in the composition of the workforce and overall population. Recently, for example, low-interest rates on loans, relatively low prices for gasoline, and a long stretch of slow, steady growth in hiring have together made it a good time for many households to buy a car. Rising demand for car purchases has triggered more hiring by auto dealerships. But the same low oil prices leading to cheap gasoline have meant low payoffs for oil-drilling projects. Therefore, in that industry, demand for labor has fallen. **Figure 2.2** **Transitional Matrix:** **Example for an Auto Parts Manufacturer** **Transitional Matrix-** A chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period. **Determining Labor Supply** Once a company has forecast the demand for labor, it needs an indication of the firm's labor supply. Determining the internal labor supply calls for a detailed analysis of how many people are currently in various job categories or have specific skills within the organization. The planner then modifies this analysis to reflect changes expected in the near future as a result of retirements, promotions, transfers, voluntary turnover, and terminations. One type of statistical procedure that can be used for this purpose is the analysis of a **transitional matrix.** This is a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period. **Determining Labor Surplus or Shortage** Based on the forecasts for labor demand and supply, the planner can compare the figures to determine whether there will be a shortage or surplus of labor for each job category. Determining expected shortages and surpluses allows the organization to plan how to address these challenges. HR professionals can increase the value of this planning by developing competency in applying data and analytic techniques. For example, when an organization is deciding to expand or move to a new location, software can analyze data such as job requirements, local graduation rates, compensation levels, and more to estimate the likelihood that the company can readily find and afford the necessary talent in a given location. **Goal Setting and Strategic Planning** The second step in human resource planning is goal setting and strategic planning, as shown in the middle of Figure 2.1. The purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization's success in addressing labor shortages and surpluses. The goals should come directly from the analysis of labor supply and demand. They should include a specific figure indicating what should happen with the job category or skill area and a specific timetable for when the results should be achieved. For each goal, the organization must choose one or more human resource strategies. A variety of strategies is available for handling expected shortages and surpluses of labor. This planning stage is critical. The options differ widely in their expense, speed, and effectiveness. Options for reducing a labor surplus cause differing amounts of human suffering. The options for avoiding a labor shortage differ in terms of how easily the organization can undo the change if it no longer faces a labor shortage. For example, an organization probably would not want to handle every expected labor shortage by hiring new employees. The process is relatively slow and involves expenses to find and train new employees. Also, if the shortage becomes a surplus, the organization will have to consider laying off some of the employees. Layoffs involve another set of expenses, such as severance pay, and they are costly in terms of human suffering. Another consideration in choosing an HR strategy is whether the employees needed will contribute directly to the organization's success. Organizations are most likely to benefit from hiring and retaining employees who provide a **core competency.** **Table 2.3** **HR Strategies for** **Addressing a Labor** **Shortage or Surplus** Organizations try to anticipate labor surpluses far enough ahead that they can freeze hiring and let natural attrition (people leaving on their own) reduce the labor force. Unfortunately for many workers, organizations often stay competitive in a fast-changing environment by responding to a labor surplus with downsizing, which delivers fast results. The impact is painful for those who lose jobs, as well as those left behind to carry on without them. To handle a labor shortage, organizations typically hire temporary employees or use outsourcing. Because downsizing, using temporary employees, and outsourcing are most common, we will look at each of these in greater detail in the following sections. **Downsizing**- is the planned elimination of large numbers of personnel with the goal of enhancing the organization's competitiveness. The primary reason organizations engage in downsizing is to promote future competitiveness. According to surveys, they do this by meeting four objectives: 1. ***Reducing costs***---Labor is a large part of a company's total costs, so downsizing is an attractive place to start cutting costs. 2. ***Replacing labor with technology***---Closing outdated factories, automating, or introducing other technological changes reduces the need for labor. Often, the labor savings outweigh the cost of the new technology. 3. ***Mergers and acquisitions***---When organizations combine, they often need less bureaucratic overhead, so they lay off managers and some professional staff members. 4. ***Moving to more economical locations*** Some organizations move from one area of the United States to another, especially from the Northeast and Midwest to the South and the mountain regions of the West. **Downsizing** The planned elimination of large numbers of personnel with the goal of enhancing the organization's competitiveness. **Reducing Hours** Given the limitations of downsizing, many organizations are more carefully considering other avenues for eliminating a labor surplus. Companies will choose a reduction in work hours not only because this is considered a more equitable way to weather a slump in demand, but also because it is less costly than layoffs requiring severance pay and it is easier to restore the work hours than to hire new employees after a downsizing effort. When plastics manufacturer Saint-Gobain in Bristol, Rhode Island, experienced a business slowdown, it did not lay off any workers but cut many workers' hours by 40%. **Early-Retirement Programs** Another popular way to reduce a labor surplus is with an early-retirement program. average age of the U.S. workforce is increasing. But even though many baby boomers are reaching traditional retirement age, indications are that this group (especially women) has no intention of leaving the workforce soon. 12 Reasons include improved health of older people, jobs becoming less physically demanding, insufficient savings, high levels of debt, lack of pensions, enjoyment of work (especially in the higher-paying occupations), and laws against age discrimination. Under the pressures associated with an aging labor force, many employers try to encourage older workers to leave voluntarily by offering a variety of early-retirement incentives. The more lucrative of these programs succeed by some measures. Research suggests that these programs encourage lower-performing older workers to retire. Sometimes they work so well that too many workers retire they work so well that too many workers retire. **Employing Temporary and Contract Workers** While downsizing has been a popular way to reduce a labor surplus, the most widespread methods for eliminating a labor shortage are hiring temporary and contract workers and outsourcing work. Employers may arrange to hire a temporary worker through an agency that Specializes in linking employers with people who have the necessary skills. The employer pays the agency, which in turn pays the temporary worker. Employers also may contract directly with individuals, often professionals, to provide a particular service. To use this source of labor effectively, employers need to overcome some disadvantages. In particular, temporary and contract workers may not be as committed to the organization, so if they work directly with customers, that attitude may spill over and affect customer loyalty. Therefore, many organizations try to use permanent employees in key jobs and use temporary and contract workers in ways that clearly supplement---and do not potentially replace---the permanent employees. **Temporary Workers** According to estimates by the federal government, organizations are using almost 3 million temporary workers. **Temporary employment is popular with employers because it gives them flexibility they need to operate efficiently when demand for their products changes rapidly.** If an employer believes a higher level of demand will persist, it often can hire the temps as permanent workers. Thus, employment levels for temporary employees tend to fall ahead of a recession and rise ahead of a recovery as companies make these quick adjustments to falling and rising demand. In addition to flexibility, temporary employment offers lower costs. Using temporary workers frees the employer from many administrative tasks and financial burdens associated with being the "employer of record." The cost of employee benefits, including health care, pension, life insurance, workers' compensation, and unemployment insurance, can account for 40% of payroll expenses for permanent employees. Assuming the agency pays **Outsourcing** Instead of using a temporary or contract employee to fill a single job, an organization might want a broader set of services. Contracting with another organization to perform a broad set of services is called **outsourcing. Organizations use outsourcing as a way to operate more efficiently and save money.** They choose outsourcing firms that promise to deliver the same or better quality at a lower cost. One reason they can do this is that the outside company specializes in the service and can benefit from economies of scale (the economic principle that producing something in large volume tends to cost less for each additional unit than producing in small volume). This efficiency is often the attraction for outsourcing human resource functions such as payroll. Costs **Overtime and Expanded Hours**  Organizations facing a labor shortage may be reluctant to hire employees, even temporary workers, or to commit to an outsourcing arrangement. Especially if the organization expects the shortage to be temporary, it may prefer an arrangement that is simpler and less costly. Under some conditions, these organizations may try to garner more hours from the existing labor force, asking them to go from part-time to full-time status or to work overtime. **A major downside of overtime is that the employer must pay non-management employees one-and-a-half times their normal wages for work done overtime**. Even so, employers see overtime pay as preferable to the costs of hiring and training new employees. The preference is especially strong if the organization doubts that the current higher level of demand for its products will last long. For a short time at least, many workers appreciate the added compensation for working overtime. Over extended periods, however, employees feel stress and frustration from working long hours. Overtime therefore is best suited for short-term labor shortages. **Implementing and Evaluating the HR Plan** Implementation that ties planning and recruiting to the organization's strategy and to its efforts to develop employees becomes a complete program of talent management. Today's computer systems have made talent management more practical. Companies can tap into databases and use analytic tools to keep track of which skills and knowledge they need, which needs have already been filled, which employees are developing experiences to help them meet future needs, and which sources of talent have met talent needs most efficiently. In evaluating the results, the most obvious step is checking whether the organization has succeeded in avoiding labor shortages or surpluses. Along with measuring these numbers, the evaluation should identify which parts of the planning process contributed to success or failure. For example, consider a company where meeting human resource needs requires that employees continually learn new skills. If there is a gap between needed skills and current skill levels, the evaluation should consider whether the problem lies with failure to forecast the needed skills or with implementation. Are employees signing up for training, and is the right kind of training available? HR managers should also measure the efficiency of the processes. Sometimes the best way to improve results is to cut costs or shorten time lines. For example, Jared Olsen said his company, Xima Software, studied the time required to hire---from advertising a job to making an offer and waiting for the employee to start. The average time was 54 days, and management decided that was slowing the company down. They revised the process to focus on developing leads before positions actually became available, which shortened the hiring time to just 12 days. **Applying HR Planning to Affirmative Action** As we discussed in Chapter 3, many organizations have a human resource strategy that includes affirmative action to manage diversity or meet government requirements. Meeting affirmative-action goals requires that employers carry out an additional level of human resource planning aimed at those goals. In other words, besides looking at its overall workforce and needs, the organization looks at the representation of subgroups in its labor force---for example, the proportion of women and minorities. Affirmative-action plans forecast and monitor the proportion of employees who are members of various protected groups (typically, women and racial or ethnic minorities). The planning looks at the representation of these employees in the organization's job categories and career tracks. The planner can compare the proportion of employees who are in each group with the proportion each group represents in the labor market. For example, the organization might note that in a labor market that is 25% Hispanic, 60% of its customer service personnel are Hispanic. This type of comparison is called a **workforce utilization review.** The organization can use this process to determine whether there is any subgroup whose proportion in the relevant labor market differs substantially from the proportion in the job category. **Recruiting Human Resources** As the first part of this chapter shows, it is difficult to always predict exactly how many (if any) new employees the organization will have to hire in a given year in a given job category. The role of human resource recruitment is to build a supply of potential new  **Recruiting** consists of any practice or activity carried on by the organization with the primary purpose of identifying and attracting potential employees. It thus creates a buffer between planning and the actual selection of new employees (the topic of the next chapter). The goals of recruiting (encouraging qualified people to apply for jobs) and selection (deciding which candidates would be the best fit) are different enough that they are most effective when performed separately, rather than combined as in a job interview that also involves selling candidates on the company. **Personnel Policies** An organization's *personnel policies* are its decisions about how it will carry out human resource management, including how it will fill job vacancies. These policies influence the nature of the positions that are vacant. According to the research on recruitment, it is clear that characteristics of the vacancy are more important than recruiters or recruiting sources for predicting job choice. Several personnel policies are especially relevant to recruitment: **due-process policies**, which formally lay out the steps an employee may take to appeal an employer's decision to terminate that employee. An organization's lawyers may advise the company to ensure that all recruitment documents say the employment is "at will" to protect the company from lawsuits about wrongful charge. Management must decide how to weigh any legal advantages against the impact on recruitment. **Recruitment Sources** Another critical element of an organization's recruitment strategy is its decisions about where to look for applicants. The total labor market is enormous and spread over the entire globe. As a practical matter, an organization will draw from a small fraction of that total market. The methods the organization chooses for communicating its labor needs and the audiences it targets will determine the size and nature of the labor market the organization taps to fill its vacant positions. A person who responds to a job advertisement on the Internet is likely to be different from a person responding to a sign hanging outside a factory. Each of the major sources from which organizations draw recruits has advantages and disadvantages. **Internal Sources** As we discussed with regard to personnel policies, an organization may emphasize internal or external sources of job applicants. Internal sources are employees who currently hold other positions in the organization. Organizations recruit existing employees through **job posting,** or communicating information about the vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else the organization communicates with employees. Managers also may identify candidates to recommend for vacancies. Policies that emphasize promotions and even lateral moves to achieve broader career experience can give applicants a favorable impression of the organization's jobs. The use of internal sources also affects what kinds of people the organization recruits. For the employer, relying on internal sources offers several advantages. First, it generates applicants who are well known to the organization. In addition, these applicants are relatively knowledgeable about the organization's vacancies, which minimizes the possibility they will have unrealistic expectations about the job. Finally, filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization. **External Sources** Despite the advantages of internal recruitment, organizations often have good reasons to recruit externally.33 For entry-level positions and perhaps for specialized upper-level positions, the organization has no internal recruits from which to draw. Also, bringing in outsiders may expose the organization to new ideas or new ways of doing business. An organization that uses only internal recruitment can wind up with a workforce whose members all think alike and therefore may be poorly suited to innovation.34 And finally, companies that are able to grow during a slow economy can gain a competitive edge by hiring the best talent when other organizations are forced to avoid hiring, freeze pay increases, or even lay off talented people. So organizations often recruit through direct applicants and referrals, advertisements, employment agencies, schools, and websites. **Direct Applicants and Referrals** Even without a formal effort to reach job applicants, an organization may hear from candidates through direct applicants and referrals. **Direct applicants** are people who apply for a vacancy without prompting from the organization. **Referrals** are people who apply because someone in the organization prompted them to do so. The major downside of referrals is that they limit the likelihood of exposing the organization to fresh viewpoints. People tend to refer others who are like themselves. Furthermore, sometimes referrals contribute to hiring practices that are or that appear unfair, an example being **nepotism,** or the hiring of relatives. Employees may resent the hiring and rapid promotion of "the boss's son" or "the boss's daughter," or even the boss's friend. **Electronic Recruiting** Few employers can fill all their vacant positions through direct applications and referrals, so most need to advertise openings. Most often today, that means posting information online. Online recruiting generally involves posting career information at company websites to address people who are interested in the particular company and posting paid advertisements at career services to attract people who are searching for jobs. Many companies post ads on job boards such as Monster and CareerBuilder. However, the popularity of such paid sites has been declining because more and more job seekers are turning to *job aggregators,* such as Indeed and Simply Hired. These online services gather job information from job boards, company websites, newspaper ads, and more, making it all available through one website or mobile app. In addition, companies are turning to social media, as described in "HRM Social". **Private Employment Agencies** In contrast to public employment agencies, which primarily serve the blue-collar labor market, private employment agencies provide much the same service for the white-collar labor market. Workers interested in finding a job can sign up with a private employment agency whether or not they are currently unemployed. Another difference between the two types of agencies is that private agencies charge the employers for providing referrals. Therefore, using a private employment agency is more expensive than using a public agency, but the private agency is a more suitable source for certain kinds of applicants. **Colleges and Universities** Most colleges and universities have placement services that seek to help their graduates obtain employment. On-campus interviewing is the most important source of recruits for entry-level professional and managerial vacancies. Organizations tend to focus especially on colleges that have strong reputations in areas for which they have critical needs---say, chemical engineering or public accounting. **Placemen** t**Evaluating the Quality of a Source** In general, there are few rules that say what recruitment source is best for a given job vacancy. Therefore, it is wise for employers to monitor the quality of all their recruitment sources. One way to do this is to develop and compare **yield ratios** for each source. A yield ratio expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next. For example, the organization could find the number of candidates interviewed as a percentage of the total number of résumés generated by a given source (that is, number of interviews divided by number of résumés). A high yield ratio (large percentage) means that the source is an effective way to find candidates to interview. By comparing the yield ratios of different recruitment sources, HR professionals can determine which source is the best or most efficient for the type of vacancy. Another measure of recruitment success is the **cost per hire.** To compute this amount, find the cost of using a particular recruitment source for a particular type of vacancy. Then divide that cost by the number of people hired to fill that type of vacancy. A low cost per hire means that the recruitment source is efficient; it delivers qualified candidates at minimal cost. **Recruiter Traits and Behaviors** As we saw in Figure 5.2, the third influence on recruitment outcomes is the recruiter, including this person's characteristics and the way he or she behaves. The recruiter affects the nature of both the job vacancy and the applicants generated. However, the recruiter often becomes involved late in the recruitment process. In many cases, by the time a recruiter meets some applicants, they have already made up their minds about what they desire in a job, what the vacant job has to offer, and their likelihood of receiving a job offer. Many applicants approach the recruiter with some skepticism. Knowing it is the recruiter's job to sell them on a vacancy, some applicants discount what the recruiter says in light of what they have heard from other sources, such as friends, magazine articles, and professors. When candidates are already familiar with the company through knowing about its products, the recruiter's impact is especially weak. For these and other reasons, recruiters' characteristics and behaviors seem to have limited impact on applicants' job choices. **Characteristics of the Recruiter** Most organizations must choose whether their recruiters are specialists in human resources or are experts at particular jobs (that is, those who currently hold the same kinds of jobs or supervise people who hold the jobs). According to some studies, applicants perceive HR specialists as less credible and are less attracted to jobs when recruiters are HR specialists. 51 The evidence does not completely discount a positive role for personnel specialists **Behavior of the Recruiter** Recruiters affect results not only by providing plenty of information, but by providing the right kind of information. Perhaps the most-researched aspect of recruiting is the level of realism in the recruiter's message. Because the recruiter's job is to attract candidates, recruiters may feel pressure to exaggerate the positive qualities of the vacancy and to downplay its negative qualities. Applicants are highly sensitive to negative information. The highest-quality applicants may be less willing to pursue jobs when this type of information comes out. But if the recruiter goes too far in a positive direction, the candidate can be misled and lured into taking a job that has been misrepresented. Then unmet expectations can contribute to a high turnover rate. When recruiters describe jobs unrealistically, people who take those jobs may come to believe that the employer is deceitful. Many studies have looked at how well **realistic job previews**---background information about jobs' positive and negative qualities---can get around this problem and help organizations minimize turnover among new employees. On the whole, the research suggests that realistic job previews have a weak and inconsistent effect on turnover. Although realistic job previews have only a weak association with reduced turnover, the cost of the effort is low, and they are relatively easy to implement. Consequently, employers should consider using them as a way to reduce turnover among new hires.  C:\\Users\\ACER\\Downloads\\tarining fbs\\module HR\\58-589005\_strategic-hr-human-resource-consultant-icon-clipart.png **Selection Process** Through **personnel selection,** organizations make decisions about who will or will not be invited to join the organization. Selection begins with the candidates identified through recruitment and with attempts to reduce their number to the individuals best qualified to perform the available jobs. At the end of the process, the selected individuals are placed in jobs with the organization. The process of selecting employees varies considerably from organization to organization and from job to job. At most organizations, however, selection includes the steps illustrated in Figure 2.1. First, a human resource professional reviews the applications received to see which meet the basic requirements of the job. For candidates who meet the basic requirements, the organization administers tests and reviews work samples to rate the candidates' abilities. Those with the best abilities are invited to the organization for one or more interviews. Supervisors and team members often are involved in this stage of the process. By this point, the decision makers are beginning to form opinions about which candidates are most desirable. For the top few candidates, the organization should check references and conduct background checks to verify that the organization's information is correct. Then supervisors, teams, and other decision makers select a person to receive a job offer. In some cases, the candidate may negotiate with the organization regarding salary, benefits, and the like. If the candidate accepts the job, the organization places him or her in that job. **Figure 2.3** Steps in the Selection Process How does an organization decide which of these steps to use and in what order? Some organizations simply repeat a selection process that is familiar. If members of the organization underwent job interviews, *they* conduct job interviews, asking familiar questions. However, what organizations *should* do is to create a selection process in support of its job descriptions. In Chapter 3 we explained that a job description identifies the knowledge, skills, abilities, and other characteristics (KSAOs) required for successfully performing a job. The selection process should be set up in such a way that it lets the organization identify people who have the necessary KSAOs. This not only helps the company choose the right people, it offers a basis to build positive experiences for job hunters. According to surveys, job candidates want to understand what is happening during the selection process, but few organizations are responsive to that desire.3 Those who have a great process and communicate about it should gain an edge in the market for talent. A strategic approach to selection requires ways to measure the effectiveness of selection tools. From science, we have basic standards for this: ∙ The method provides *reliable* information. ∙ The method provides *valid* information. ∙ The information can be *generalized* to apply to the candidates. ∙ The method offers *high utility* (practical value). ∙ The selection criteria are *legal.* **Reliability** The **reliability** of a type of measurement indicates how free that measurement is from random error. A reliable measurement therefore generates consistent results. Assuming that a person's intelligence is fairly stable over time, a reliable test of intelligence should generate consistent results if the same person takes the test several times. Organizations that construct intelligence tests should be able to provide (and explain) information about the reliability of their tests. Usually this information involves statistics such as *correlation coefficients.* These statistics measure the degree to which two sets of numbers are related. A higher correlation coefficient signifies a stronger relationship. At one extreme, a correlation coefficient of 1.0 means a perfect positive relationship---as one set of numbers goes up, so does the other. If you took the same vision test three days in a row, those scores would probably have nearly a perfect correlation. At the other extreme, a correlation of −1.0 means a perfect negative correlation--- when one set of numbers goes up, the other goes down. In the middle, a correlation of 0 means there is no correlation at all. For example, the correlation (or relationship) between weather and intelligence would be at or near 0. A reliable test would be one for which scores by the same person (or people with similar attributes) have a correlation close to 1.0. Reliability answers one important question---whether you are measuring something accurately---but ignores another question that is as important: Are you measuring something that matters? Think about how this applies at companies that try to identify workers who will fit in well with the company's culture. **Validity** For a selection measure, **validity** describes the extent to which performance on the measure (such as a test score) is related to what the measure is designed to assess (such as job performance).Although we can reliably measure such characteristics as weight and height, these measurements do not provide much information about how a person will perform most kinds of jobs. Thus, for most jobs height and weight provide little validity as selection criteria. One way to determine whether a measure is valid is to compare many people's scores on that measure with their job performance. For example, suppose people who score above 60 words per minute on a keyboarding test consistently get high marks for their performance in data-entry jobs. This observation suggests the keyboarding test is valid for predicting success in that job. As with reliability, information about the validity of selection methods often uses correlation coefficients. A strong positive (or negative) correlation between a measure and job performance means the measure should be a valid basis for selecting (or rejecting) a candidate. This information is important not only because it helps organizations identify the best employees, but also because organizations can demonstrate fair employment practices by showing that their selection process is valid. The federal government's *Uniform Guidelines on Employee Selection Procedures* accept three ways of measuring validity: criterion-related, content, and construct validity. **Criterion-Related Validity** The first category, **criterion-related validity**, is a measure of validity based on showing a substantial correlation between test scores and job performance scores. In the example in Figure 6.2, a company compares two measures---an representative. In the left graph, which shows the relationship between the intelligence test scores and job performance, the points for the 20 sales reps fall near the 45-degree line. The correlation coefficient is near.90 (for a perfect 1.0, all the points would be on the 45-degree line). In the graph at the right, the points are scattered more widely. The correlation between college GPA and sales reps' performance is much lower. In this hypothetical example, the intelligence test is more valid than GPA for predicting success at this job. Two kinds of research are possible for arriving at criterion-related validity: 1. **Predictive validation** ---This research uses the test scores of all applicants and looks 2. **Concurrent validation**---This type of research administers a test to people who currently hold a job, then compares their scores to existing measures of job performance. If the people who score highest on the test also do better on the job, the test is assumed to be valid. Predictive validation is more time consuming and difficult, but it is the best measure of validity. Job applicants tend to be more motivated to do well on the tests, and their performance on the tests is not influenced by their firsthand experience with the job. Also, the group studied is more likely to include people who perform poorly on the test---a necessary ingredient to accurately validate a test. **Figure 2.4** Criterion-Related Measurements of a Student's Aptitude **Content and Construct Validity** Another appear at a construction site and entering a shed to identify construction errors that had intentionally been made for testing purposes.7 More commonly today, employers use computer role-playing games in which software is created to include situations that occur on the job. The game measures how the candidate reacts to the situations, and then it computes a score based on how closely the candidate's responses match those of an ideal employee. The usual basis for deciding that a test has content validity is through expert judgment. Experts can rate the test items according to whether they mirror essential functions of the job. Because establishing validity is based on the experts' subjective judgments, content validity is most suitable for measuring behavior that is concrete and observable. For tests that measure abstract qualities such as intelligence or leadership ability, establishment of validity may have to rely on **construct validity.** This involves establishing that tests really do measure intelligence, leadership ability, or other such "constructs," as well as showing that mastery of this construct is associated with successful performance of the job. For example, if you could show that a test measures something called "mechanical ability," and that people with superior mechanical ability perform well as assemblers, then the test has construct validity for the assembler job. Tests that measure a construct usually measure a combination of behaviors thought to be associated with the construct. **Ability to Generalize** Along with validity in general, we need to know whether a selection method is valid in the context in which the organization wants to use it. A **generalizable** method applies not only to the conditions in which the method was originally developed---job, organization, people, time period, and so on. It also applies to other organizations, jobs, applicants, and so on. In other words, is a selection method that was valid in one context also valid in other contexts? Researchers have studied whether tests of intelligence and thinking skills (called *cognitive ability*) can be generalized. The research has supported the idea that these tests are generalizable across many jobs. However, as jobs become more complex, the validity of many of these tests increases. In other words, they are most valid for complex jobs. **Practical Value** Not only should selection methods such as tests and interview responses accurately predict how well individuals will perform, but they should also produce information that actually benefits the organization. Being valid, reliable, and generalizable adds value to a method. Another consideration is the cost of using the selection method. Selection procedures such as testing and interviewing cost money. They should cost significantly less than the benefits of hiring the new employees. Methods that provide economic value greater than the cost of using them are said to have **utility.** The choice of a selection method may differ according to the job being filled. If the job involves providing a product or service of high value to the organization, it is worthwhile to spend more to find a top performer. At a company where salespeople are responsible for closing million-dollar deals, the company will be willing to invest more in selection decisions. At a fast-food restaurant, such an investment will not be worthwhile; the employer will prefer faster, simpler ways to select workers who ring up orders, prepare food, and keep the facility clean. Still, as the "Did You Know?" box illustrates, careless selection decisions are costly in any kind of organization. **Legal Standards for Selection** As we discussed in Chapter 3, the U.S. government imposes legal limits on selection decisions. The government requires that the selection process be conducted in a way that avoids discrimination and provides access to employees with disabilities. The laws described in Have many applications to the selection process: Equal employment opportunity laws affect the kinds of information an organization may gather on application forms and in interviews. As summarized in Table 6.1, the organization may not ask questions that gather information about a person's protected status, even indirectly. For example, requesting the dates a person attended high school and college could indirectly gather information about an applicant's age. ∙ The Americans with Disabilities Act (ADA) of 1991 requires employers to make "reasonable accommodation" to disabled individuals and restricts many kinds of questions during the selection process. Under the ADA, pre-employmen