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7

Chapter

Managing
Human
Resources
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Learning Outcomes
Describe the key components of the human resource
management process.
Discuss the tasks associated with identifying and
selecting competent employees.
Explain how employees are provided with needed
skills and knowledge.
Describe strategies for retaining competent, highperforming employees.

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7.1 Describe the key

components of the
human resource
management
process

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Human Resource Management


Staffing and HRM decisions and actions
are critical to ensuring that the
organization hires and keeps the right
people.
The quality of an organization is to a large
degree determined by the quality of the
people it employs
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HRM Process and Influences


8 important
HRM activities

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HRM Process and Influences


The first three activities in the HRM process
address employment planning:
1) adding staff through recruitment,
2) reducing staff through downsizing, and
3) the selection process.

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HRM Process and Influences


Once you select competent people, you
need to help them adapt to the
organization and ensure that their job skills
and knowledge are kept currentwhich is
accomplished by the next two activities in
the HRM process:
4) orientation and 5) training.

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HRM Process and Influences


The last steps in the HRM process identify
performance goals, correct performance
problems if necessary, and help employees
sustain a high level of performance over
their entire work lives.
The activities involved include
6) performance appraisal, 7) compensation
and 8) benefits.
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HRM Process

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Team Activity(Nov. 29, within


10minutes, submit PPT file)
Topics: Case study (HR activities of Uzbekistan
companies)
Explain the HR activities(all or one activity) of a
company
For example: Training activities

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7.2 Discuss tasks


associated with
identifying and
selecting competent
employees.

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Identifying and Selecting Employees


How do organizations get those people?
what can organizations do to ensure they get
competent, talented people?
The first phase of the HRM Process:
1. employment planning
2. recruitment and downsizing
3. selection

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Identifying and Selecting Employees


Employment planning is the process by
which managers ensure that they have the
right number and kinds of people in the
right places at the right times

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Identifying and Selecting Employees


The process can be condensed into two
steps:
(1) assessing current human resources and
future human resource needs, and
(2) developing a plan to meet those needs.

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Identifying and Selecting Employees

Assessing current and future human resource


needs, and developing a plan to meet those
needs Logistics Management
Statistics 2
Transportation Economics
Organizational Behavior
Management Information System
Business English 2

Distinguished Lecture Series-1

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Identifying and Selecting Employees


How dose an organization conduct an employee
assessment ?
Managers begin by reviewing the current human
resource status.
This review is typically done by generating a
human resource inventory.

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Identifying and Selecting Employees


Logistics Management
Statistics 2

Transportation Economics
Organizational Behavior
Management Information System
Business English 2
Distinguished Lecture Series-1

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Identifying and Selecting Employees


Another part of the current assessment is job
analysis, a process in which workflows are
analyzed and skills and behaviors that are
necessary to perform jobs are identified.

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Conducting Employee Assessments

A job description is a written statement that


describes what a job holder does, how its done,
and why its done.
It typically includes job content, job environment,
and conditions of employment.

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Conducting Employee Assessments


what a job holder does
Ex)

Prepares job
advertisement.
Schedules and
conducts
personal
interviews

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Conducting Employee Assessments

The job specification states the minimum


qualifications that a person must possess to
perform a given job successfully.
It identifies the knowledge, skills, and attitudes
needed to do the job effectively.

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Conducting Employee Assessments

the minimum qualifications to perform a given


job successfully.
Ex) four-year college or university degree with major
course work in HRM.
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Conducting Employee Assessments

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Conducting Employee Assessments

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Conducting Employee Assessments

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Conducting Employee Assessments

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Determining Future Employment


Needs
Demand for human resources (employees) is a
result of demand for the organizations products
or services.
After assessing both current capabilities and
future needs, managers can estimate shortages
both in number and in kindand highlight areas
in which the organization is overstaffed.

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Determining Future Employment


Needs
If job openings exist, they can begin
recruitmentthat is, the process of locating,
identifying, and attracting capable applicants.
Logistics Management
Statistics 2
Transportation Economics
Organizational Behavior
Management Information System

Business English 2
Distinguished Lecture Series-1
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Determining Future Employment


Needs
If employment planning indicates a surplus,
managers may want to reduce the labor supply
and initiate downsizing or restructuring activities.
Downsizing is reducing the number of employees or jobs.
Restructuring is a type of corporate action taken when
significantly modifying operations or structure of a company
as a means of potentially eliminating financial harm and
improving the business

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Recruiting Applicants

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Recruiting Applicants

Logistics Management
Statistics 2

Transportation Economics
Organizational Behavior
Management Information System
Business English 2
Distinguished Lecture Series-1

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Recruiting Applicants

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Recruiting Applicants

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Recruiting Applicants

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Recruiting Applicants

The online job search sites in Uzbek.

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Recruiting Applicants

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Recruiting Applicants

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Recruiting Applicants

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Recruiting Applicants

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Recruiting Applicants

Arrangement in which a firm (called subscribing


firm) transfers its employees to another firm
(called leasing firm) which specializes in human
resource management, and payroll accounting.
Subscribing firm(A)

salary

Contract

Leasing firm(B)
labor

Employee
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Selecting Job Applicants


The selection process seeks to predict which
applicants will be successful if hired.
For a position as a sales representative, it should
predict which applicants will be successful at
generating high sales volumes.

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Selecting Job Applicants


When the applicant who was hired proved to be
successful on the job, or When the applicant
who was not hired would not have been able to
do the job.

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Selecting Job Applicants


When we reject applicants who would have
performed successfully (called reject errors) or if
we hired applicants who performed poorly (called
accept errors).

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Selecting Job Applicants


The major intent of any selection activity is to
reduce the probability of making reject errors
and accept errors while increasing the
probability of making correct decisions.

We do this by using reliable and valid


selection procedures.

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Reliability and Validity


Reliability:
The degree to which a selection device measures
the same thing consistently.
If a test is reliable, any individuals score should
remain stable over time.
If the scale is unreliablerandomly
fluctuating

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Reliability and Validity


Validity:
The proven relationship between a selection
device and some relevant criterion.
Ex) requiring the physical endurance tests for the
dispatching job (would/ would not) be job
related.
=> The physical endurance test can be shown to be
related to successful job performance?
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Q) requiring the swimming tests for the


flight attendants (would/ would not) be
job related.

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Selection Devices: Tests

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Selection Devices: Tests


Managers use a number of selection
devices to reduce accept and reject
errors.
The best-known include 1) written tests,
2) performance-simulation tests, and 3)
interviews.

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Selection Devices: Tests


Evidence shows that tests of intellectual
ability, mechanical ability, perceptual
accuracy, and motor ability are
moderately valid predictors for many
operative jobs in industrial organizations.

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Selection Devices: Tests


Samsung Group conducts aptitude test
for job applicants.
If you want an interview, you have to pass the
standardized test first.

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Selection Devices: Tests


2) performance-simulation tests are
made up of actual job behaviors.
For example, What better way to find out
whether an applicant for a technical writing
position at Apple can write technical manuals
than to ask him or her to do it?

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Effective Interviewing
3) The interview is the most universal
selection device, along with the
application form.
Interviews can be reliable and valid
selection tools when limited to relevant
questioning.

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Effective Interviewing

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Effective Interviewing
In behavioral or situation interview, applicants
are observed not only for what they say but
also for how they behave.
Ex 1) Tell me about how you worked
effectively under pressure.
Ex 2) Give an example of how you worked on
team.
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Effective Interviewing
Research shows that these behavioral
interviews are nearly eight times more
effective for predicting successful job
performance than traditional interviews
are.

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Closing the Deal


Realistic Job Preview (RJP)

includes both positive and negative


information about the job and the company
limited opportunities to talk to coworkers
during work hours

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7.3 Explain how


employees are
provided with the
needed skills and
knowledge.

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HRM Process

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HOW ARE EMPLOYEES PROVIDED WITH


NEEDED SKILLS AND KNOWLEDGE?
New hires must be acclimated to the
organizations culture and be trained and
given the knowledge to do the job in a
manner consistent with the organizations
goals.
To achieve this, HRM uses orientation and
training.

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Orientation
An orientation process introduces new hires
to the organization.
The major goals are to:
Reduce the initial anxiety all new employees feel
as they begin a new job
Familiarize new employees with the job, the work
unit, and the organization

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Orientation
Job orientation: clarifies the new employees
specific duties and responsibilities as well as
how his or her performance will be evaluated
Work unit orientation: familiarizes an
employee with the goals of the work unit, and
provides an introduction to his or her
coworkers.

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Orientation
Organization orientation informs the new
employee about the organizations goals,
history, philosophy, procedures, and rules.
This information includes relevant HR policies
such as work hours, pay procedures, and
benefits.

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Orientation for freshman at IUT


Information about ??

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Orientation

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Employee Training Methods

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Employee Training Methods


Individual employees specialize in doing
part of an activity rather than the entire
activity in order to increase work output.
Only tighten a screw everyday.
hammer a nail

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Employee Training Methods


Job rotation: Lateral transfers allowing
employees to work at different jobs.
Provides good exposure to a variety of tasks.
stitching

sewing

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Employee Training Methods


Understudy assignments Working with a
seasoned veteran, coach, or mentor.
Provides support and encouragement from an
experienced worker.

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Employee Training Methods


Classroom lectures: Lectures designed to
convey specific technical, interpersonal, or
problem-solving skills.

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Employee Training Methods


Films and videos: Using media to explicitly
demonstrate technical skills that are not easily
presented by other training methods.

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Employee Training Methods


Simulation exercises : Learning a job by
actually performing the work (or its
simulation).

Ex) NASA VR/360 Astronaut Training: Space


Walk

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Employee Training Methods

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Employee Training Methods


Vestibule training: Learning tasks on the same
equipment that one actually will use on the
job but in a simulated work environment.

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7.4 Describe strategies


for retaining
competent, highperforming
employees.

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HRM Process

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Retaining Competent Employees

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Compensating Employees
Written essay: Simple to use
More a measure of evaluators writing
ability than of employees actual
performance
Ex) Employees strengths and weakness.

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Compensating Employees
Graphic rating scales: less timeconsuming than others
Do not provide depth of job behavior
assessed

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Compensating Employees
BARS (Behaviorally Anchored Rating
Scale ): Focus on specific and measurable
job behaviors
Time-consuming, difficult to develop
measures

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Retaining Competent Employees


difficult to develop measures

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Retaining Competent Employees


MBO : Focuses on end goals; results
Oriented,
Time-consuming

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Compensating Employees
The goal of compensation
administration is to design a costeffective pay structure that attempts to
ensure that pay levels will be perceived
as fair by all employees.

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Compensating Employees
Employee benefits, which are
nonfinancial rewards designed to enrich
employees lives.
Ex) disability insurance, retirement
programs, and health insurance.

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