Human Resource Management

If management moves to a decentralized structure, HRM should be adjusted as well.

Recruitment

• External recruiting: managers look outside the firm for people who have not worked at the firm before.
• Managers advertise in newspapers, hold open houses, recruit at universities, and on the Internet.
• External recruitment is difficult since many new jobs have specific skill needs.
• A multi-prong approach to external recruiting works best.
• Internal Recruiting: positions filled within the firm.
• Internal recruiting has several benefits:
• Workers know the firm’s culture, may not have new ideas.
• Managers likely already know the candidates.
• Internal advancement can motivate employees.

HRM Planning: Outsourcing

• Outsourcing: managers can decide to contract with outside workers rather than hiring them.
• Outsourcing is more flexible for the firm.
• Outsourcing often provides human capital at a lower cost.
• Outsource problems: managers lose control over output.
• Outsource contractors are not committed to the firm.
• Unions typically are against outsourcing that has potential to eliminate member’s jobs.

Selection Tools

Background
Information
Interviews
References
Paper tests
Physical
Ability tests
Performance tests
Selection

Selection Process

After a pool of applicants are identified, qualifications related to the job requirements are determined:

• Background Information: includes education, prior employment, college major, etc.
• Interview: almost all firms use one of two types:
• Structured interview: managers ask each person the same job-related questions.
• Unstructured interview: held like a normal conversation.
• Usually structured interviews preferred; bias is possible.
• Physical Ability Test: measure strength & endurance.
• Good for physically demanding jobs.