BUS301: Human Resource Management

2a. Describe the role of strategic human resource planning

• How does HRM contribute to the overall profit objectives of the company?
• According to the Ulrich HR model, what are some of the roles of HRM?
• How can HRM use a SWOT analysis to identify gaps between the HRM and the company's overall strategic plan?
• What are some of the laws that impact many aspects of human capital management and strategic HR planning?

A company's HR or personnel department used to only be responsible for hiring and firing employees, responding to grievances and safety concerns, and keeping track of relevant laws, rules, and regulations. Today, HRM also plays a significant role in helping a company achieve its strategic goals.

For example, HRM may integrate training programs across the business to promote its overall mission and values rather than create stand-alone programs to help a small group of employees complete a specific task.

HRM is involved in employee development and contributes to the overall profit objectives of the organization – it is no longer strictly a cost center (a department that costs money to operate without contributing cash inflow). HRM is expected to help companies save money by hiring and helping retain the right people for a job and anticipating future growth needs.

According to the Ulrich HR model, HRM should be a strategic partner with every department of the business, such as by aligning potential and available human capital to fulfill the organization's needs. HRM can also be a change agent by anticipating and responding to changes in the outside industry, not simply in terms of its HR function but by serving the company as a whole. As an administrative expert (or functional expert), HRM must understand and implement policies, procedures, and processes related to the overall strategic plan. As a human capital developer, HRM helps develop the talent the company will need in the future. As an employee advocate, HRM works on behalf of the employees within the organization.

A SWOT analysis is a strategic planning tool managers use to identify an organization's strengths, weaknesses, opportunities, and threats. HRM can create a SWOT analysis to identify gaps in the company's strategic plan. For example, HRM can encourage the company to adopt or continue funding a program that is a departmental strength. It can also recommend revising a policy that is an organizational weakness.

In addition, employment laws in the United States affect many aspects of human capital management. HRM must address them in virtually every step of the recruitment and selection process.

Bona Fide occupational qualification (BFOQ) is a quality or attribute that is reasonably necessary to the normal operation of the business and that can be used when considering applicants. BFOQs are exceptions to the normal laws about discrimination in hiring. An example of a BFOQ exception is a mandatory retirement for airline pilots at a certain age due to safety concerns.

Disparate impact occurs when an organization discriminates through the use of a process that affects a protected group as a whole rather than consciously intending to discriminate. For example, an organization may require written tests for hiring, promotions, etc., that do not relate directly to the job.

Equal Employment Opportunity (EEO) laws ensure that discrimination does not occur in the workplace. Businesses must post these laws at a visible location for employees and include them on job announcements. As you learned in Unit 1, the U.S. Equal Employment Opportunity Commission (EEOC) is the federal agency that administers and enforces civil rights laws against workplace discrimination.

The Immigration Reform and Control Act (IRCA) requires all employers to determine an employee's eligibility to work in the United States. The reporting form is called an I-9 and is the documentation employers must complete and keep on file for a specified time.

The Patriot Act allows the government to access data that would previously have been considered private, such as an employee's records, work voicemails, and emails, without the company's consent. The U.S. Congress enacted this law in response to the Sept. 11, 2001, terrorist attacks against the United States.

To review, see:

• Strategic Planning
• Recruitment

2b. Explain the purpose of conducting a job analysis that includes knowledge, skills, and abilities required for the job

• What is the primary purpose for including KSAs (knowledge, skills, and abilities) in a job description?
• Some traits regarding knowledge, skills, and abilities may be mandatory, while others may be desirable. Can you give examples of types of jobs where one characteristic might be more important than another?

Employers identify the "right" human capital they need to hire by assessing and defining all of the jobs the organization should have to perform most efficiently. A proper job analysis of the organization's roles helps hiring managers identify the most effective traits of those who work in specific positions. They must recognize that individuals may need to complement their coworkers' knowledge, skills, and abilities (KSAs) so the entire team has what it needs to complete its work in the best way possible.

The U.S. Office of Personnel Management defines knowledge as the body of information applied directly to the performance of a function. For example, a safety engineer must know the laws and regulations applicable to their work site. Skill is an observable competence to perform a learned psychomotor act. A computer programmer might demonstrate a skill for writing code for a specific program. Ability is the competence to perform an observable behavior that results in an observable product. A candidate might demonstrate how they have been able to work independently and as part of a team. KSAs describe attributes required to perform a job and are generally demonstrated through qualifying service, education, or training. For example, an employee's success may hinge on their capacity to learn on the job, accept constructive criticism, remain calm, and work well during stressful situations.

While the U.S. federal government commonly uses the term "KSAs" in its job descriptions, other employers may use similar words to connote personal characteristics, competencies, and proficiencies. Some employers assign relative values or weights to each KSA by designating some qualifications as "mandatory (M)", "desirable (D)", "required", or "preferred". When they refer to certain KSAs as desirable or preferred, they suggest they are open to considering other factors when hiring, such as equivalent work experience or other competencies. Employers could signal that they are open to training job candidates to perform the desirable or preferred skills they lack, but this is not necessarily the case.

To review, see:

• Recruitment
• 2.2 Protecting Human Capital

2c. Identify the role of job analysis in supporting key human capital functions

• What is the purpose of a job analysis, and what are the six steps of writing one?
• What is the difference between task-based and competency-based (or skills-based) job analysis? What is an example of each?
• What is the purpose of a job description? What primary components would you expect to find in a job description?
• How can we compare a firm's employees with income statements and balance sheets?
• How does this concept relate to managing human capital to attract, motivate, and retain good performers?

Job analysis describes the formal process of determining the tasks people perform in their jobs and the capabilities needed to perform them well. HR can use the data the analysis generates to create relevant job descriptions and specifications.

Process for Writing the Job Analysis

A task-based job analysis focuses on tasks, duties, and responsibilities. Tasks refer to work activities composed of motions, whereas duties are composed of several tasks an individual performs. Examples of task-based analysis might include compiling information to prepare reports in specific computer programs, driving a forklift, or answering phone calls.

Competency-based job analyses (or skills-based job analyses) focus on how individuals use their knowledge, skills, and abilities. Examples of this type of analysis might include using data analysis tools, working within teams, or creating a visual presentation.

Job descriptions typically outline the following attributes of successful potential candidates:

• Job functions or tasks an employee will be required to perform. For example, working with specific computer software programs, presenting at conferences, negotiating contracts with clients and vendors, or selling products to potential customers;

• Knowledge, skills, and abilities (KSAs) refer to the expertise a job candidate should have to perform the job-in-question well, such as knowledge about certain regulations or procedures, specific skill-based talents, capabilities, or personal attributes;

• Required educational background and experience typically refers to specific academic degrees or licensed credentials the candidate should have earned or relevant tasks they have performed during previous work assignments; and

• Physical requirements refer to the physical motor-based functions the job candidate will be required to perform, such as lifting a certain weight, standing for long periods, working at a computer desk, or seeing or hearing certain things.

• Job specifications discuss the skills and abilities an employee must have to perform their job effectively. A list of job specifications is usually included in the job description.
  

Job design refers to the process managers undergo to revise or modify a job description or function to make it more effective. For example, managers may realign the employee's responsibilities or tasks to accommodate new technologies and industry innovations.

HRM should consider employees as assets. The entire company suffers when businesses do not treat their valuable assets properly. Disgruntled and unproductive employees reduce the productivity of the whole business, frequently sow discontent among others, and can quit the firm altogether. Hiring and training replacements can be extremely costly and time-consuming.

Rather than focus on short-term objectives that may cause top employees to burnout or become overwhelmed, HRM should look for ways to boost motivation, provide proper training to help employees succeed, and retain good employees to help the business achieve its long-term goals.

To review, see:

• Protecting Human Capital
• The Recruitment Process
• How to Write a Job Description

2d. Identify effective techniques for attracting talent

• Once a job opening occurs, what is one strategy for filling the position with an internal candidate?
• What recruiting strategies are appropriate for a high-level position? An entry-level position?

In an effective recruiting strategy, an organization must be ready to fill open positions as they occur. Sources of appropriate candidates come from both inside and outside the firm.

Many companies have an internal job posting (or bidding) system for hiring internal candidates. This system allows employees to apply for qualified positions. These positions may be opportunities to obtain more skills in a lateral move or offer a promotion to an employee who has proven his ability to take on new tasks and responsibilities. 

When the company wants to fill an executive-level position, in addition to internal candidates whom it may have identified, trained, and developed, the firm may look to the outside services of an executive search firm or other outside head-hunting firms.

To review, see:

• The Recruitment Process

Unit 2 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• ability
• Bona Fide occupational qualification (BFOQ)
• competency-based job analysis
• cost center
• Disparate impact
• Equal Employment Opportunity (EEO)
• Immigration Reform and Control Act (IRCA)
• job analysis
• job description
• job design
• knowledge
• knowledge, skills, and abilities (KSAs)
• Patriot Act
• skill
• SWOT analysis
• task-based job analysis
• Ulrich HR model