HANDOUT - GROUP 1

Material: Business Today (pages 211- 221)

Date: 03/10/2024

1. HUMAN RESOURCE MANAGEMENT

Definition: Expansion of personnel management to include strategic planning. Many
companies adopted the term HRM to reflect the attitude that workers are of strategic
importance; HRM became integral members of management teams plotting a course through
rough economic seas.
Personnel management: The specialized task of obtaining the people a company needs
and then overseeing their training, evaluation, and compensation.
HRM's Challenges and Responsibilities
● The increasing complexity of the business environment, driven by technological
advancements, creates new challenges for HRM.
● HRM must address issues such as:
○ Layoffs due to economic downturns
○ Retraining workers to adapt to automation
○ Managing complex employee benefits
○ Encouraging employee productivity
○ Promoting equal opportunity in employment
2. HUMAN RESOURCE PLANNING
Definition: Ensures the best fit between employees and jobs while avoiding manpower
shortages or surpluses.
2.1. Forecasting
Definition: Forecasting is the process of predicting demand and supply. Organisations use
HR forecasting to decide to hire more people, reduce their staffing, or adjust how they
divide responsibilities
2.1.1. Factors in HR planning
- Demand forecasting: The process of estimating the future numbers of people
required and the likely skills and competencies the business will need.
- Supply forecasting: The process of measuring the number of people likely to be
available from within and outside the organisation, including the internal labour
supply, the available skills within the business and external labour supply such as
unemployed, new graduates, students, individuals returning to work
2.2.2. Overstaffed and Understaffed
- Overstaffed: having more members of staff than are needed
- Solutions for overstaffed problems:
+ Conduct a thorough assessment of current roles and productivity to identify
redundancies
+ Implement part-time or temporary contracts to reduce costs while retaining skilled
workers.
+ Train employees to take on multiple roles, allowing for better resource allocation.

- Understaffed: having too few staff members to operate effectively

- Solutions for understaffed problems:
+ Head-hunt
+ Improve workplace culture and benefits to attract talent and reduce turnover rates.

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 + Leveraging technology is one of the best ways to optimize workflows and streamline
administrative tasks.
+ Training programs that reskill and upskill employees help businesses manage
staffing shortages by enabling workforce flexibility. For example, machinists can
become supervisors if they understand the entire manufacturing cycle. Additionally,
offering professional development enhances employee retention.

2.2.3. Outsourcing
- Definition: A strategy whereby corporate tasks and structures are given to an external
contractor. These can be individual tasks, specific areas, or entire business processes.
Advantages Disadvantages

Core competencies: The company can focus Dependence: You make yourself dependent
on its core competencies. on the respective service provider. If the
service provider gets into economic
difficulties, for example, this can mean
consequential costs for your company.

Cost reduction: The provision of external Loss of knowledge: One consequence of

services is generally more cost-effective outsourcing is the loss of employee
than the employment of specialized know-how.
employees in one's own company.

Time savings: Small businesses and the Data protection: Outside service providers
self-employed need a lot of time to may gain insight into sensitive corporate
familiarize themselves with new areas of data.
business. Outsourcing saves time and
enables investment in other areas.

Improving quality: The use of outsourcing Expensive reintegration: If you have

strategies often results in qualitative outsourced certain tasks, a later
advantages. These advantages are due to reintegration into your company can be
the high degree of specialization of external very time-consuming. The implementation
service providers. is expensive, time-consuming and requires
suitable staff.
2.2. Job analysis
- A process by which jobs are studied to determine the tasks and dynamics involved in
performing them. Conducting a job analysis provides an overview of the most
important requirements of a role to ensure that you’re making the right hiring
decisions.
- Job analysis work: → Collect information → Analyze → Create and Develop
2.2.1. Collect information
- direct observation,
- questionnaires (often ask the employee's managers and others on the team about
their perceptions of the role)
- diaries (write down the activities within a day)
- checklist (a structured checklist that employees can check off to verify that they're
completing certain tasks)
2.2.2. Analyze

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 - When performing a job analysis, you look at the responsibilities included in the job,
the qualifications required to do the job well, how it relates to other positions within
your organization, and when/how it’s performed.
→ determine the right candidates for hiring or promotion and recognize broader
challenges in allocating duties.
2.2.3. Create and develop the job description and job specification
Job Description: Statement of the tasks involved in the job and the conditions under
which the holder of the job will work
Job Specification: Statement describing the kind of person who would be best for the
given job - including skills, education, and previous experience the job requires
3. RECRUITING AND SELECTING
3.1. Recruiting
- Referrals: from employees or colleagues in the company or industry.
- Advertise: through public and private employment agency
- College campuses
- Pirating key employees from other companies
3.2. Selecting
3.2.1. Hiring process: 10 steps
1. Solicitation of applicants
2. Initial contacts with applicants
3. Application forms and/or resumes
4. Employment test (optional)
5. Interview (HR department)
6. Interview (Supervisor)
7. Reference check
8. Medical examination (optional)
9. Evaluation and Selection
10. Notification of candidate and employment
3.2.2. Terms:
+ Resume: a summary of the candidate’s education, work experience, skills, and
accomplishments. It highlights relevant experience that aligns with the job you are
applying for.
+ Job application: a formal request submitted to an employer for a specific job
opening. It can be done online or on paper and often includes basic personal
information, employment history, education details, and sometimes specific
questions related to the job. Some applications may require you to upload your
resume or cover letter as part of the process.
+ Interview:
● Questions: unrelated questions such as marital status, religion, physical
handicaps, age, gender, arrest records, and financial affairs... These topics are
prohibited by the EEOC (Equal Employment Opportunity Commission) because
they may imply discrimination among candidates illegally.
● Goals:
○ To clarify their qualifications
○ To fill in missing information
○ To get to know their personality
○ To test some specific skills: communication, etc

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4. TESTING
4.1. On Testing
- Testing: An aspect of the hiring process that does not only involve tests given by
employers but all devices used to categorize people
- Forms of testing
+ Aptitude assessments (Traditional tests)
+ Personality tests (MBTI/Big Five)
+ Video interview (Candidates record video in response to questions given → help
evaluate communication skills & personality)
+ Gamified assessments (teamwork, problem-solving skills )
+ AI-powered chatbots: interact with candidates and evaluate → Quick and efficient
+ Sample job tasks: check performance in job-specific tasks (customer
service/technical problem-solving) → More realistic, effective
● Trial Days: work for a short period of time to evaluate skills and suitability in
an environment
+360-degree feedback
4.2. Critical view about testing
4.2.1. Credibility
Function of testing: to gauge abilities, aptitude, intelligence, and interests (sometimes:
physical condition & personality)
4.2.2. Ethical problems
- Lie-detector tests and blood tests (Polygraph tests): may pose serious threats to
personal information leakage
- Personality tests: Due to low predictive validity and the possibility of causing
discrimination and bias during the hiring process, it is unethical to “use results on
the MBTI instrument to screen job applicants’ employment”.(Myers & Briggs
Foundation)
- Teaching simulation: might lead to unfair hiring decisions, legal and ethical
repercussions and decreased morale in the workplace.
*Governmental intervention*
EEOC (U.S. Equal Employment Opportunity Commission), along with the Department of
Justice, Department of Labor and the U.S. Civil Service has been revising and publishing
guidelines to protect workers’ rights.
4.3. Approaches to testing
- Adjustments in tested areas: Some companies choose to focus not only on scores but
also on job-related qualities.
- No testing: Some companies choose not to test at all but implement alternative forms
like:
+ Careful review of the resume and cover letter review
+ Phone screenings: communication skills, cultural fit → for sales associates,
teachers/tutors, customer service officers
+ Panel interviews: with interviewers from different departments.

5. TRAINING AND DEVELOPMENT

5.1. Importance of training and development
- All new employees, regardless of experience, require some form of training because
each company has unique procedures.

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 - Companies often have orientation programs to introduce new hires to the
organization's structure, policies, conduct standards, benefits, and job
responsibilities.
- Training can occur on the job, where experienced workers guide new employees, or in
classroom settings with expert instruction. While training may focus on specific job
skills, more companies are now expanding training to include soft skills.
5.2. A boss’s expectation
- Do more than expected: Completing just the minimum won’t get you promoted. Take
on additional tasks.
- Give no excuses: If a project isn’t ready on time, excuses don’t matter.
- Solve your problems: Anticipate issues and find solutions. When necessary, bring
suggestions to your boss.
- Know what others do: Understand how your job fits into the larger goals of the
company to stay aligned with its success.
- Respect your job: Treat your job as the most important thing. Show up on time, ready
to work.
- Be flexible: Stay open to relocating, learning new skills, and exploring new areas.
- Encourage others: Support both those above and below you. Their success can lead to
yours.
- Avoid negativity: Complaining or fighting shuts down communication. Always weigh
the cost of conflict.
- Respect competition: You may have to work with your competitors in the future.
- Be truthful: Lying worsens any situation.
- Make no assumptions: Ask questions to clarify rather than assume.
- Be professional: Stay updated with industry trends and know others in your field.
- Speak your boss's language: Understand how they communicate urgency and
priorities.
- Watch your timing: Make requests when they're most likely to be granted.
- Show discretion: Avoid discussing company issues in public or outside the
organization.
5.3 Types of training
There are 5 types of training programs, each has its influences and benefits on recruits:
- Instructor-Led Training (ILT)
Whether in-person or virtual, ILT connects learners or employees with experienced mentors
or an expert on the topic who offer guidance and feedback.
→ Both are classic yet powerful training methods that encourage directness, good for
complex topics that require personal guidance. Establishes mentor-mentee relationships and
encourages open communication.
- On-the-Job Training (OJT)
OJT allows employees to gain practical skills by shadowing experienced colleagues and
observing real-world situations, making it one of the fastest ways to learn. Employees learn
from one another by sharing knowledge and skills.
→ This method encourages teamwork and continuous learning through collaboration.
→ Saves time and improves retention of knowledge.
→ OJT is great for succession planning and promotes fast learning through hands-on
experience. It also offers immediate feedback and encourages employees to complete
training.
- eLearning or Online Training & Mobile Learning (mLearning):

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eLearning has eliminated the need for physical training classrooms, thus reducing costs.
MLearning uses mobile devices with bite-sized content like videos, podcasts, or
microlearning modules.
→ eLearning offers flexible learning through interactive modules that employees can access
anytime, anywhere. MLearning offers flexible integration of daily routines and quick access
to a specific concept.
- Simulation-Based Training & Role-playing:
These methods provide a risk-free environment where employees can practice complex tasks
by simulating real-life scenarios.
→ Includes hands-on practice, skill development, problem-solving and exposure to
real-world challenges in a safe setting.
- Blended Learning & Further development:
Combining traditional classroom teaching with online learning, blended learning has a
hybrid approach, allowing for both in-person interaction and digital flexibility.
Meanwhile, further training focuses on aspects beyond basics such as soft skills, confidence
and technical training.
→ Tailored and blended learning paths create active participation through discussions and
projects as well as boosters of confidence.
6. APPRAISING EMPLOYEE PERFORMANCE
6.1. Definition
- Performance Appraisal: The process of evaluating and assessing employees'
contributions, skills, and overall effectiveness in an organization based on specific
criteria.
6.2. Purpose of Performance Appraisal
- The objectives of appraising performance, such as providing feedback, identifying
strengths and areas for improvement, setting future goals, and supporting decisions
about promotions, salary adjustments, and training needs.
6.3. Appraisal Methods
- Rating Scales: An appraisal method where employees are rated on different
performance dimensions such as the quality of work and reliability.
- 360-Degree Feedback: A performance appraisal method where employees receive
feedback from multiple sources, including managers, peers, subordinates, and
sometimes customers.
- Management by Objectives (MBO): An appraisal method where employees are
assessed based on the achievement of specific, agreed-upon goals.
- Behaviorally Anchored Rating Scales (BARS): A method that combines
quantitative and qualitative measurement based on observable behaviours to assess
performance.
6.4. Appraisal Process
- The steps involved in conducting a performance appraisal, include setting
expectations, providing ongoing feedback, holding formal reviews, and involving
employees in self-assessment and goal-setting.
6.5. Common Challenges
- Biases: Personal factors that can affect the fairness of appraisals, such as leniency,
central tendency, or recency effects.
- Employee Reactions: The response of employees to appraisals, which can affect
their morale, especially when the feedback is negative.

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- Inconsistent Standards: Differences in expectations or criteria used by different
managers or departments, which can result in unfair appraisals.