Academy of Economic Studies of Bucharest Faculty of Business Administration

HUMAN RESOURCE MANAGEMENT

Lecture 2

MANAGEMENT PROCESS:
- FORECASTING

- PLANNING - ORGANIZING - STAFFING - LEADING - CONTROLLING

an organizations labor force

people working in an organization

people having specific skills and knowledge

different people with different perceptions, needs and goals

The theoretical discipline

the assumption that employees are individuals with different perceptions, needs and goals

impossible to draw some guiding lines and to win immediately a sustainable adhesion from every body, especially on the long run

object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee. Frederick W. Taylor

HRM works to ensure that employees are able to meet the organization's goals. As HRM has become viewed as more critical to organizational success, many companies have realized that it is the people in an organization that can provide a competitive advantage.

"People are our most valuable asset" is a clich which no member of any senior management team would disagree with.

The reality shows though that many employees remain undervalued, under trained, underutilized, poorly motivated and in consequence they will not fell mobilized to perform at the true level of their capabilities.

"The map is not the territory

GENERALIZATION PROCESS DISTORTING PROCESS SELECTION PROCESS -neurological filters (our senses which are very subjective), WORLD -socio-cultural filters (influenced by the environment that every person was born and lived in), -individual filters (given by the personal experience). A. Korzybski INDIVIDUAL WORLD MAP

VERBAL COMMUNICATION

NON-VERBAL COMMUNICATION

HRM
GENERAL MANAGEMENT
restricting its problems and subject to dealing with personnel
-holistic interdisciplinary -strategic & coherent

A too rigid rational thinking can lead the evolution at problem point.
G. Bachelard

HRM deals with the design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals. - bringing people into the organization, helping them perform their work, compensating them for their labors, and solving problems that arise

beginning of mankind

1000 - 2000 B.C

-necessity of selecting tribal leaders, -of recording and passing knowledge about safety, health, hunting, and gathering, on to youth

China and employee screening tests

ancient Greek and Babylonian civilizations and the earliest form of industrial education, the apprentice system

EMPIRICAL STAGE

Industrial revolution
Cottage system Factory production

the end of the XIXth century

(Fords first line manufacturing)

-new jobs filled with emigrants -need for adequate management of employees

OWNER = the only holder of the capital + the only organizer of the work master of the house (nowadays = in state administration & Japanese families) -INTUITION, TRADITION, EXPERIENCE -activities took place by repetitive attempts, with no scheduling and no previous training -problems were dealt with as they appeared and the aim was to adapt to the situations that might occur

the 1880s - the 1940s United States = the land of opportunity where good-paying industrial jobs were plentiful immigration significantly rose F.W. Taylor's &
(1856-1915)

until World War II

wellbeing (prosperity) stage

Scientific Management

Early HRM techniques: - low-cost but lowskill immigrant workers - different languages spoken hazardous tasks, long hours, unhealthy work environments & TEACHING ENGLISH, HOUSING, MEDICAL CARE -TRAINING however labor unions pressure (existing since 1790 in USA, increasing productivity B.F. Goodrich Co.(1900) National Cash Register (1902) -worker grievances,

they became much more powerful during the late 1800s -wage administration, and early 1900s) -record keeping, etc.

between the two World Wars

development of the work unions & and legislation

recruitment of a large number of soldiers during World Wars

until World War II

-collective negotiations, -employment of a large number of women = -work agreements, the main work force -resolution of the employees claims

Hawthorne productivity studies

Behavioral school

development of personnel activities - modern SELECTION, TRAINING, EVALUATION methods

After the World War II PERSONNEL ADMINISTRATION STAGE

DEVELOPMENT STAGE World war II 1950s

&

MATURITY STAGE 1960s - 1970s

the end of the 1970s

-recruitment, remuneration -unions strengthened -personnel services reoriented

-more complex approach of the HR - selection, training and evaluation improvement - elaborated system of work legislation

all medium-sized and large companies and institutions had some type of HRM program in place to handle recruitment, training, regulatory compliance, dismissal etc

-to avoid lawsuits for violating this legislation HRM professionals 1980s the concepts of HRM and SHRM appeared in the American universities

each time has its own reality

technological advances quickly applying technology to the task of improving operations the nature of work more and more people is employed in producing and delivering services, not products, most of all because of the technology - center of gravity in employment = moved fast from manual and clerical workers to knowledge workers globalization extending sales, ownership, and/or manufacturing to new markets abroad exporting jobs prompted by competitive pressures and the search for greater efficiencies workforce demographics more diverse workforce in terms of age, sex, nationality, beliefs, etc

MANAGERS:

LINE MANAGERS

STAFF MANAGERS

LINE MANAGER

who is authorized to direct the work of subordinates ORDERS who is responsible for accomplishing the organizations tasks

STAFF MANAGER = who assists & advise line managers Line function = inside his own dept. (directs the activity) Coordinative function = coordinates personnel HR manager = STAFF MANAGER activities

Staff function = assists & advises

VACANCY =

when an existing occupant leaves the organization when a new post is created through expansion & reorganization

- Doing

away with the work altogether

- Job enrichment - Re-think the structure of the work & automate the work - Sub-contracting (outsourcing) - Working over-time - Part-time position

JOB ANALYSIS = determining the DUTIES & SKILLS required by a job and the CHARECTERISTICS of people who should be hired

JOB DESCRIPTION = list of jobs duties, reporting relationships, working conditions WHAT THE WORKER DOES - simple version - more complex version Outdated & superfluous competencies framework

JOB SPECIFICATION = list of jobs human requirements personality, etc. -essential characteristics -desirable characteristics

METHODS OF COLLECTING JOB ANALYSIS INFORMATION

-QUESTIONNAIRES (may exaggerate the importance of some aspects of work) -EMPLOYEES DIARIES (employees may be reluctant or not be typical) -OBSERVING EMPLOYEES (time consuming & people act differently when they know they are observed) - INTERVIEWING EMPLOYEES

RECRUITMENT

WHAT TO LOOK FOR? WHERE TO LOOK FOR? WHO WILL TAKE CARE OF? HOW TO LOOK FOR?

METHODS OF RECRUITMENT
- - IN-FORMAL METHODS from inside the CO

RECOMMENDATIONS (referral recruitment) risk of high subjectivism CONSULTING THE PORTFOLIO WITH HIRING REQUESTS GRADUATES HAVING AN INTERNSHIP RE-HIRING FORMER EMPLOYEES (once they left, it is very likely to leave it again) PROMOTING INTERNAL CANDIDATES

METHODS OF RECRUITMENT
- - FORMAL METHODS external sources

CO alone (using advertising agencies) Using RECRUITMENT AGENCIES (staff recruited through agencies has the tendency to move on quicker) HEAD-HUNTING COs EDUCATIONAL ESTABLISHMENTS

Recruiting Yield Pyramid

Recruiting yield pyramid = the historical arithmetic relationships between

recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted.

EEO = Equal Employment Opportunities

- sources of discrimination

DISPARATE TREATMENT = intentional discrimination where an employer treats an individual differently because he is a member of a particular race, religion, gender or ethnic group DISPARATE IMPACT = an apparently neutral employment practice that creates an ADVERSE IMPACT (disproportion within the pool of candidates hired) -Disparate rejection rates -Four-fifths rule of thumb prima facie case of discrimination

-Restricted policy (intentionally or not) -McDonnell Douglas test intentionally discrimination

-The person belongs to a protected class -The person applied & was qualified for the job -The person was rejected despite qualification -After rejection, the position remained open

EEO = Equal Employment Opportunities

- BONA FIDE OCCUPATIONAL QUALIFICATION (BFOQ)

BFOQ = an employee to be of a certain religion, sex or national origin where that is reasonably necessary to the organizations normal operation
BUSINESS NECESITY

AFFIRMATIVE ACTION = employer to make an extra effort to HIRE & PROMOTE those in a protected group REVERSE DISCRIMINATION = average people are discriminated against

-Good intentions are no excuse -Employers cannot hide behind collective bargaining agreements

The devil wears Prada