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Human Resource Management Seventh Edition Lloyd L. Byars, Ph.D. Professor of Management Dupree College of Management Georgia institute of Technology Leslie W. Rue, Ph.D. Professor Emeritus of Management Robinson College of Business Georgia State University fa Boston Burr Ridge, IL_ ubuque, IA Madison, WI New York San Francisco St. Louis Bangkok Bogota Caracas KualaLumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto Chapter outline human resource management Activities designed 10 provide for and coordinate the human resources of an organization human resource functions ‘Tasks and duties human resource managers perform (ea, determining the ‘organization's human resource needs; eeritng, selecting, developing, counseling, and rewarding employees acting 2 liaison with unions and government organizations; tnd handling other matters Human Resource Functions Human Resource Functions Who Performs the Human Resource Functions? The Human Resource Department Challenges for Human Resource Managers Diversity n the Work Force Regulatory Changes Structural Changes to Organizations Technological and Managerial Changes within Organizations Human Resource Management Tomorrow Company Profits and the Human Resource Manager Communicating Human Resource Programs Guidelines for Communicating Human Resource Programs Human Resource Management and Organizational Performance Summary of Learning Objectives Review Questions Discussion Questions Incident 1-1 Human Resource Management and Professionals Incident 1-2 Choosing a Major Exercise: Justifying the Human Resource Department Exercise: Test Your Knowledge of HR History Exercise: Are You Poised for Success? Notes and Additional Readings Hluman resource management (HRM) encompasses those activities designed to provide for and coordinate the human resources of an organization. The human resources (HR) of an oF fanization represent one ofits largest investments, In fact, government reports show that 2p- proximately 72 percent of national income is used to compensate employees.! The vale of an brganization’s buman resources frequently becomes evident when the organization is sod. Often the purchase price is greater than the total value of the physical and financial assets. This difference, sometimes called goodwill, partially reflects the value of an organization's human resources. In addition to wages and salaries, organizations often make othe sizable in- vestments in their human resources. Recruiting, hiring, and training represent some of the more obvious examples. Human resource management is a modern term for what has traitionally been referred to as personnel administration ot personnel management. However, some experts believe human resource management differs somewhat from traditional personnel management, They sec personnel management as being much narrower and more clerically oriented than human e- Source management. For the purposes of this book, we will use only the term human resource management Human resource functions refer to those tasks and duties performed in both large and small “organizations to provide for and coordinate human resources. Human resource functions en- ‘compass a variety of activities that significantly influence all areas of an organization, ‘The So- ciety for Human Resource Management (SHRM) has identified six major functions of human resource management: Chapter outline recruitment Process of seeking and aneracting a pool of people from which qualified candidates for job vacancies can be chosen. Job Analysis, Human Resource Planning, and Recr Job Analysis, Human Resource Planning, and Recruitment Personnel Requisition Form. Sources of Qualified Personne! Internal Sources External Sources Effectiveness of Recruitment Methods Realistic Job Previews Who Does the Recruiting, and How? ‘Organizational Inducements in Recruitment Equal Employment Opportunity and Recruitment Summary of Learning Objectives Review Questions Discussion Questions Incident 7-1: Inside or Outside Recruiting? ‘Incident 7-2:A Malpractice Sut against a Hospital Exercise: Writing a Résumé Notes and Addtional Readings (On the job: Writing a Résumé Video Case: Creative Staffing Solutions Pair Workers with Employers Recruitment involves seeking and attracting pool of people from which qualified candi- dates for job vacancies can be chosen. Most organizations have a recruitment (or, as it is sometimes called, employment) function managed by the human resource department, In an cera when the focus of most organizations has been on efficiently and effectively running the “organization, recruiting the right person for the job is a top priority. HRM in Action 7.1 pro- ‘vides some information about recruiting on the Internet. ‘The magnitude of an organization's recruiting effort and the methods to be used in that re- crviting effort are determined from the human resource planning process and the require- ments of the specific jobs to be filled. As brought out in Chapter 6, if the forecasted human resource requirements exceed the net human resource requirements, the organization usually actively recruits new employees. However, organizations do have options other than recruit- ing new employees to accomplish the work. Some of these options include using temporary ‘workers, offering overtime to existing employees, subcontracting the work to another organi- zation (this approach is often used on construction projects or projects that have a fixed time period for completion), and leasing of employees. Tn addition, recruitment should include seeking and attracting qualified job candidates, Successful recruiting is difficult if the jobs to be filled are vaguely defined. Regardless of ‘whether the job to be filled has been in existence or is newly created, its requirements must ‘be defined as precisely as possible for recruiting to be effective. As discussed in Chapter 5, {job analysis provides information about the nature and requirements of specific jobs. ment Figure 7.1 illustrates the relationships among job analysis, human resource planning, recruit- ment, and the selection process. Job analysis gives the nature and requirements of specific jobs. Human resource planning determines the specific number of jobs to be filled. Recruit- ‘ment concerns providing a pool of people qualified to fill these vacancies. Questions that are addressed in the recruitment process include: What are the sources of qualified personnel?

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