HUMAN RESOURCE

MANAGEMENT
 Human Resource
Management
◆ Activities necessary for staffing the
organization and sustaining high
employee performance.
 STAFFING
◆ HR Planning
◆ Recruitment
◆ Selection
 HR PLANNING
◆ Process by which management
ensures it has the right personnel
to complete the organization’s
tasks.
◆ Why?
◆ How?
 STEPS IN HR PLANNING
1. Forecast HR demand
2. Forecast HR supply
3. Reconcile demand and supply
 STEP 1:
FORECAST HR DEMAND
◆ Forecast business demand
◆ Forecast HR demand
◆ Business factors
◆ Productivity ratios
◆ Adjust
◆ Tie back to business demand
 FORECASTING DEMAND
Productivity Business #of
Ratio Output employee
Tech 1 3 15
Tech 2 3 8
Tech 3 3 6
Tech Sup 3 3
 FORECASTING DEMAND
Productivity Business Projected
Ratio Objective HR Demand
Tech 1 5 5
Tech 2 2.5 5
Tech 3 2 5
Tech Sup 1 5
 STEPS IN HR PLANNING
1. Forecast demand
2. Forecast HR supply
◆ Turnover Analysis
 SIMPLE TURNOVER
ANALYSIS
Current N Retention Rate Projected
Supply
Tech 1 30 .60
Tech 2 20 .65
Tech 3 20 .70
Tech Sup 6 .90
 STEPS IN HR PLANNING
1. Forecast demand
◆ Business demand
◆ HR demand
1. Forecast HR supply
2. Reconcile demand and supply
 RECRUITING
◆ Goal?
◆
◆ Issues
◆ Who? (internal vs. external)
◆ How? (methods)
INTERNAL RECRUITING
PROS CONS
 RECRUITING METHODS
◆ Referrals from current employees
◆ Former employees
◆ Advertisement
◆ Newspaper/Television
◆ Trade or professional publications
◆ Billboards
◆ Employment Agencies
◆ College Recruiting
◆ Customers
 SELECTION
ISSUES/CONCERNS
◆ Meet goal of selection
◆ Legal compliance
 MAJOR EEO LAWS
◆ Title VII, CRA
◆ ADEA (1967/1986)
◆ ADA (1990)
◆ Executive Order
11246
 TITLE VII CRA (1991)
Prohibits discrimination in any
employment-related decision on the
basis of race, color, religion, sex, or
national origin.
 TYPES OF
DISCRIMINATION
◆ Disparate Treatment
◆ Individuals
are treated differently
because of their membership in a
protected class.
◆ Disparate Impact
◆ Equal application of an employment
standard has an unequal effect.
◆ 4/5th rule
 FOUR-FIFTHS RULE
◆ A practice has adverse impact if
the hiring rate of a protected class
is less than four-fifths of the hiring
rate of the group with the highest
rate.
 To determine
compliance:
➊ Calculate majority group hiring rate
# majority hired/# majority applied
➋ Calculate minority group hiring rate
 #minority hired/#minority applied
➌ Divide step 2 by step 1
➍ If < .80, then Disparate Impact
 EMPLOYER'S RESPONSE
◆ Job relatedness
◆ BFOQ
◆ Seniority system
 EEO IMPLICATIONS
◆ Costs
◆ Job-relatedness
◆ Interview
Carefully
◆ Document
Decisions
 SELECTION: VALIDITY
◆ Primary method of demonstrating job-
relatedness
◆ Represented by the correlation
coefficient
◆ Strength of the relationship between scores
on the predictor and job performance
◆ Symbolized as "r"; e.g., r=.30
◆ Higher numbers indicate stronger
relationship
 SELECTION TOOL
VALIDITIES
PREDICTOR
Amount of Education
Job Tryout
Biographical Inventory
References
Cognitive Ability Tests (IQ)
GPA
Interview
 Training & Development
◆ Training: Teaching employees how
to do the job they were hired to do.
◆ Development: Teaching employees
the KSAs needed for future jobs.