Reviewer_HR Theories.pdf

# Introduction to human resource management This section provides an overview of the fundamental management process and the core functions and responsibilities within human resource management (HRM). ### 1.1 The management process The management process comprises four basic functions: planning, organizing, leading, and controlling [4](#page=4). #### 1.1.1 Planning Planning involves establishing organizational goals and setting standards and developing rules and procedures to achieve them [4](#page=4). #### 1.1.2 Organizing Organizing includes delegating authority for projects to subordinates and defining how to achieve organizational goals through the systematic management of people [4](#page=4). #### 1.1.3 Leading Leading involves motivating subordinates and influencing their behavior to achieve organizational objectives. Activities associated with leading include motivating subordinates [5](#page=5). #### 1.1.4 Controlling Controlling is the function where managers use metrics to assess performance and then develop strategies for corrective action [5](#page=5). ### 1.2 The role of managers A manager is defined as the person responsible for accomplishing an organization's goals by managing the efforts of the organization's people [4](#page=4). ### 1.3 Human resource management responsibilities Human resource management (HRM) encompasses personnel activities related to the management of an organization's workforce. #### 1.3.1 Core HRM activities Key personnel activities associated with HRM include orienting and training new employees, appraising employee performance, and building employee commitment [5](#page=5). #### 1.3.2 Line manager responsibilities in HRM Line managers, who are directly responsible for employees and their work, often handle personnel duties. Their human resource responsibilities typically include maintaining department morale, controlling labor costs, and protecting employees' health. In small organizations, line managers frequently handle all personnel duties without the assistance of an HR staff [5](#page=5) [8](#page=8). #### 1.3.3 Specialized HRM roles Specific roles within HRM include: * **Recruiter:** A person who maintains contacts within the local community and travels to search for qualified job applicants [6](#page=6). * **Compensation manager:** A professional in charge of developing plans for employee compensation and benefits programs [6](#page=6). * **Job analyst:** Responsible for analyzing job roles and requirements. * **Labor relations specialist:** Deals with issues related to labor unions and employee representation. #### 1.3.4 Structure of HRM functions Human resource functions can be structured in various ways: * **Line authority and staff authority:** Human resource managers generally exert staff authority within the human resources department and line authority outside the HR department. Line authority involves directing the work of subordinates, while staff authority is the right to advise line managers and influence their decisions [6](#page=6). * **Corporate HR teams:** Dedicated HR members who assist top management in developing the personnel aspects of the company's long-term strategic plan [7](#page=7). * **Embedded HR teams:** HR professionals assigned to specific departments to provide HR management assistance as needed [6](#page=6). * **Centers of expertise:** Specialized units that offer in-depth knowledge and services in specific HR areas. * **Shared services:** A model where HR functions are centralized and provided as a service to various parts of the organization. ### 1.4 Key terms and trends in HRM * **Human capital:** Refers to the knowledge, skills, and abilities of a firm's workers [7](#page=7). * **On-demand workers:** Freelancers and independent contractors who work when needed by a company. This is exemplified by workforces at companies like Uber [7](#page=7). * **Unbalanced labor force:** A trend where unemployment rates vary significantly across different occupations, leading to a shortage of candidates in some fields and a surplus in others [7](#page=7). * **Evidence-based HRM:** Relies on scientific rigor, existing data, and research studies to inform HR practices, rather than solely qualitative opinions [8](#page=8). #### 1.4.1 Technological influences on HRM Recent technological trends impacting HRM include the use of gaming features to enhance training and performance appraisal as well as the continued use of online job boards like Monster.com and Careerbuilder.com. Other technological influences include enabling telecommuting and providing employees with devices for offsite work [8](#page=8). --- # Training and development Training and development encompasses the methods and processes used to equip employees with the necessary skills and knowledge for their current roles and future career progression [10](#page=10). ### 2.1 Employee orientation Employee orientation is the initial phase of integrating new employees into an organization. It involves acquainting them with essential aspects of the company, such as benefits packages, personnel policies, and the organizational structure. The primary goals of orientation include making new employees feel like part of a team, facilitating their socialization into the firm, and educating them about the company's history and strategies. Orientation programs can vary significantly, ranging from brief, informal introductions to more extensive, formal courses [10](#page=10). > **Tip:** Hiring highly skilled employees does not eliminate the need for orientation and training, as new hires still require acclimatization to the specific organizational context and practices [10](#page=10). ### 2.2 Employee training Employee training refers to the systematic methods employed to provide new or existing employees with the skills required to perform their jobs effectively [10](#page=10). #### 2.2.1 Needs analysis for training Identifying the specific training needs is a crucial precursor to effective training programs. Strategic training needs analysis helps pinpoint the skills employees will require to fill future roles within the organization [11](#page=11). Methods employers commonly use to identify training needs for new employees include analyzing job descriptions, reviewing performance standards, and questioning current job holders. In contrast, conducting a work sampling is not a typical method for this purpose [11](#page=11). > **Tip:** For training sessions, especially those involving new terminology or technical concepts, it is important to present information in logical, meaningful sections and provide an overview of the material to be covered. Minimizing the use of excessive visual aids and avoiding the introduction of new, complex terminology too rapidly can also enhance learner motivation and comprehension [11](#page=11). #### 2.2.2 The ADDIE training process The ADDIE model is a widely recognized framework for designing and developing training programs. It consists of five phases: * **Analysis:** The first step involves analyzing the training need to determine what the training should address [11](#page=11). * **Design:** This phase focuses on learning objectives, assessment methods, exercises, content, and subject matter expert involvement. * **Development:** This stage involves creating and assembling the training materials based on the design specifications. This might include preparing online training materials [12](#page=12). * **Implementation:** In this phase, the training program is delivered to the target audience. This can include holding on-the-job training sessions [12](#page=12). * **Evaluation:** The final phase assesses the program's successes and effectiveness. > **Tip:** Learning curves can decline later in the day, suggesting that training sessions might be more effective if they are shorter, such as half-day or three-fourths day sessions, rather than full-day commitments [12](#page=12). #### 2.2.3 Training methods Various methods are employed to deliver training, tailored to the specific learning objectives and job requirements: * **On-the-job training (OJT):** This practical approach involves training employees while they are performing their actual work. A structured OJT process typically begins with familiarizing the trainee with the equipment, tools, and trade terms related to the task. This is followed by showing the trainee how to perform the task and verbalizing the steps involved, and finally, checking to ensure the task has been learned [12](#page=12) [13](#page=13). * **Job rotation:** This method involves assigning trainees to move through different jobs or departments for a specified period, providing exposure to various aspects of the business [12](#page=12). * **Apprenticeship training:** This is a structured process combining classroom instruction with on-the-job training to develop skilled workers. It is particularly effective for jobs that consist of a logical sequence of steps and are best taught in a step-by-step manner [12](#page=12) [13](#page=13). * **Job instruction training (JIT):** This method is most appropriate when jobs involve a clear, sequential series of steps that can be taught systematically [13](#page=13). * **Understudy:** In this approach, an experienced employee acts as a mentor to a trainee, preparing them to take over the role in the future. * **Job expansion:** This involves increasing the scope and responsibility of an existing job. * **Informal learning:** This encompasses learning that occurs outside of formal training programs, often through experience, observation, and social interaction. * **Programmed learning:** This method uses self-paced instruction, often with a series of questions and immediate feedback, allowing learners to progress at their own speed. * **Coaching technique:** This involves providing guidance and feedback to individuals to improve their performance and develop specific skills. --- # Personnel planning and recruitment Personnel planning is the strategic process of determining future workforce needs and developing strategies to meet those needs, encompassing recruitment and selection [15](#page=15). ### 3.1 Personnel planning Personnel planning involves forecasting a firm's future employment needs. The initial step in the recruitment and selection process is deciding which positions need to be filled [15](#page=15). #### 3.1.1 Forecasting workforce needs Forecasting future workforce needs can be accomplished through various methods: * **Trend analysis:** This method involves studying a firm's past employment needs over several years to predict future requirements [15](#page=15). * **Example:** If a company historically hired 10 new employees each year for the past five years, trend analysis would suggest hiring a similar number in the upcoming year, assuming conditions remain stable [15](#page=15). * **Ratio analysis:** This technique uses historical data to establish a statistical relationship between variables, such as sales volume and the number of employees needed. * **Example:** If a salesperson traditionally generates 800,000 dollars in sales each year, and a company aims for an extra 4 million dollars in sales, they would need to hire 5 new salespeople ($4,000,000 / 800,000 = 5$) [15](#page=15). * **Computerized forecasting:** Sophisticated software can be used to analyze historical data and predict future staffing requirements [16](#page=16). #### 3.1.2 Succession planning Succession planning specifically addresses the process of deciding how to fill executive positions within a firm. This involves identifying and developing high-potential candidates for future leadership roles [15](#page=15). * **Methods for developing high-potential candidates:** * Providing internal training [16](#page=16). * Implementing job rotation to expose employees to different functions [16](#page=16). * Offering global assignments to broaden experience [16](#page=16). #### 3.1.3 Skills inventories and talent management * **Skills inventories:** These are crucial documents containing data on employees' education, career development, and special skills. Managers use skills inventories to identify suitable inside candidates for promotions or transfers [16](#page=16). > **Tip:** Skills inventories are vital for informed internal recruitment decisions, helping to match current employee capabilities with future organizational needs [16](#page=16). * **Developing candidates vs. inventories:** While skills inventories are used to assess existing talent, they are not a method for developing candidates themselves [16](#page=16). ### 3.2 Recruitment Recruitment is the process of developing an applicant pool from which to hire. It is necessary to create a sufficiently large and qualified group of potential candidates [17](#page=17). #### 3.2.1 Internal versus external recruitment Firms can fill vacant positions by recruiting from either internal or external sources [17](#page=17). * **Internal recruiting:** This involves promoting or transferring current employees. * **Primary Disadvantage:** A significant downside of internal recruitment is the potential to lose employees who are not selected for promotion, which can impact morale and retention [17](#page=17). * **External recruiting:** This involves hiring individuals from outside the organization. * **Relevant questions for filling positions with internal candidates:** * What are the key managerial positions that are available at the new hotels? [17](#page=17). * What skills, education, and training have been provided to potential candidates? [17](#page=17). * What is the designated procedure for assessing and selecting potential candidates? [17](#page=17). * **Irrelevant question for filling positions with internal candidates:** What percentage of employers in the service industry use succession planning? [17](#page=17). #### 3.2.2 Recruitment methods for outside candidates A variety of tools are used to recruit outside candidates: * Newspaper advertising [18](#page=18). * Employment agencies [18](#page=18). * Online job boards [18](#page=18). * **Not used:** Intranet job postings are typically used for internal recruitment [18](#page=18). #### 3.2.3 Choosing recruitment media The most effective medium for a job advertisement is primarily determined by the skills needed for the job [18](#page=18). #### 3.2.4 Employment agencies Private employment agencies are often used to fill specific job openings quickly. To ensure proper screening, employers should provide the agency with an accurate job description [18](#page=18). > **Tip:** Providing a detailed and accurate job description to an employment agency is crucial for effective candidate screening [18](#page=18). #### 3.2.5 Other recruitment strategies * **Outsourcing:** This refers to having another company handle specific functions, such as benefits management [17](#page=17). * **Contingent workers:** These are individuals, like nurses, who work on temporary assignments for various organizations on an as-needed basis [19](#page=19). * **Employee referral campaigns:** These campaigns can be advantageous because applicants often receive realistic job previews from current employees [19](#page=19). * **Job posting:** Publicizing an open job to current employees through internal channels like the company's intranet or bulletin boards is known as job posting [19](#page=19). --- # Performance appraisal Performance appraisal is the systematic evaluation of an employee's current and/or past performance in relation to their established performance standards [21](#page=21). ### 4.1 Purpose of performance appraisal The primary purpose of performance appraisal is to provide feedback to employees, which serves to motivate them to remove any performance deficiencies. Appraisals are also crucial for several organizational decisions, including [21](#page=21): * Correcting work-related deficiencies [21](#page=21). * Determining appropriate salary adjustments and bonuses [21](#page=21). * Making decisions regarding promotions [21](#page=21). * Discussing employee progress and future development plans [23](#page=23). > **Tip:** While creating an organizational strategy map is important for an organization, it is not a direct reason for appraising an individual employee's performance [21](#page=21). ### 4.2 Key steps in performance appraisal The process of performance appraisal typically begins with setting clear work standards. Following this, the employee's performance is assessed, and feedback is provided. Developing plans for necessary training or development is also a key component [22](#page=22). ### 4.3 Roles in performance appraisal #### 4.3.1 Supervisor's role The direct supervisor is primarily responsible for appraising an employee's performance. Supervisors should provide employees with the necessary feedback, development opportunities, and incentives to help them improve deficiencies or maintain high performance levels. It is essential for supervisors to schedule feedback sessions to discuss performance, progress, and future development plans to ensure appraisals are effective [21](#page=21) [23](#page=23). #### 4.3.2 Human Resources (HR) department's role The HR department typically monitors the performance appraisal system to ensure its proper functioning, but is generally not involved in the actual rating of individual employees [23](#page=23). ### 4.4 Common performance appraisal methods Several techniques are employed for appraising employee performance: * **Graphic rating scale:** This is often considered the easiest and most popular technique for appraising employee performance. It involves rating employees on a scale for various traits or behaviors [23](#page=23). * **Forced distribution:** This method involves categorizing a predetermined percentage of employees into different performance levels, such as high performers, average performers, and poor performers. For instance, a supervisor might identify 15% as high performers, 20% as above average, 30% as average, 20% as below average, and 15% as poor performers [23](#page=23). * **Alternation ranking:** This technique involves ranking employees from best to worst on a specific trait or traits. The ranking is done by choosing the highest and then the lowest performer until all employees are ranked [24](#page=24). * **Paired comparison:** In this method, employees are compared to each other in pairs on various traits. * **360-degree feedback:** This comprehensive appraisal is based on surveys that gather input from multiple sources, including peers, supervisors, subordinates, and customers [22](#page=22). * **Upward feedback:** This specific type of feedback involves allowing subordinates to rate their supervisor's performance anonymously [22](#page=22). * **Management by objectives (MBO):** This approach requires managers to set specific, measurable, and organizationally relevant goals in collaboration with each employee. Progress towards these goals is then discussed periodically [24](#page=24). > **Tip:** When employees rate themselves, their ratings tend to be higher than those provided by their supervisors [22](#page=22). > **Example:** A supervisor using the graphic rating scale might rate an employee on a scale of 1 to 5 for traits like "teamwork," "initiative," and "problem-solving ability." A supervisor using forced distribution might be required to place exactly 10% of their team in the "exceeds expectations" category, regardless of their individual performance if the entire team is performing exceptionally well. --- # Job analysis and talent management process An effective talent management system begins with a thorough understanding of job requirements through job analysis, which then informs the integrated processes of managing and developing organizational talent [25](#page=25). ### 5.1 Job analysis Job analysis is a systematic process of gathering and analyzing information about the tasks, duties, and responsibilities of a specific job, as well as the human behaviors and physical and mental requirements needed to perform it. It is a foundational element for various human resource functions, including staffing, training, performance appraisal, compensation, and career development [26](#page=26). #### 5.1.1 Steps in job analysis The typical job analysis process involves several key steps [26](#page=26) [27](#page=27): 1. **Reviewing relevant background information:** This initial step involves examining existing organizational charts, process charts, and job descriptions to understand the job's position within the organization and its relationship to other jobs. An organizational chart indicates the division of work, lines of authority, and communication channels within a firm [26](#page=26) [27](#page=27). 2. **Selecting representative job positions to assess:** Choose a sample of jobs or job incumbents that accurately reflect the job being analyzed [26](#page=26). 3. **Collecting data on job activities and working conditions:** Gather detailed information about the specific tasks performed, the human behaviors involved, and the physical and environmental conditions under which the job is executed. This can include work activities, human behaviors, and performance standards [26](#page=26). 4. **Deciding how the gathered information will be used:** Determine the specific HR applications for which the job analysis data will be utilized [26](#page=26). 5. **Confirming the validity of collected data:** It is essential to validate the accuracy and completeness of the gathered information, often by consulting with the worker performing the job [27](#page=27) [28](#page=28). #### 5.1.2 Information collected during job analysis Human resource specialists collect various types of information through job analysis, including [26](#page=26): * **Job description:** A summary of the tasks, duties, and responsibilities of a job [26](#page=26). * **Job specification:** A statement of the human qualifications necessary to perform the job, such as skills, knowledge, abilities, education, experience, and desired personality traits. Working conditions are also often addressed in job specifications [26](#page=26) [27](#page=27). * **Job context:** The physical and social environment in which the job is performed, including working conditions and supervision [26](#page=26). * **Work activities:** The specific tasks and actions performed by the employee [26](#page=26). * **Human behaviors:** The underlying skills, knowledge, and abilities required for job performance [26](#page=26). * **Performance standards:** Criteria used to evaluate job performance [26](#page=26). #### 5.1.3 Methods of data collection Several methods can be employed to collect job analysis data, each with its advantages and disadvantages: * **Interviews:** Direct questioning of employees and supervisors about their jobs [28](#page=28). * **Group interviews:** Can be efficient for gathering information from multiple employees performing similar work, often involving a supervisor [28](#page=28). * **Informal interviews:** While useful for understanding job roles, they typically do not provide quantitative data suitable for pay-setting purposes [28](#page=28). * **Observations:** Directly watching employees perform their jobs to record activities and behaviors [28](#page=28). * **Reactivity:** A problem with direct observation is when workers change their behavior because they are being watched [28](#page=28). * **Questionnaires:** Structured surveys distributed to employees to gather information on tasks, skills, and working conditions [29](#page=29). * **Diaries:** Employees record every activity they participate in at work, along with the time spent on each activity [29](#page=29). > **Tip:** Conducting a job analysis is not solely the responsibility of the HR specialist; it often requires collaboration with managers and employees [28](#page=28). #### 5.1.4 Business Process Reengineering Business process reengineering (BPR) involves fundamentally rethinking and redesigning business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed. An example of BPR includes using computerized systems to combine separate tasks [27](#page=27). ### 5.2 Talent management process Effective talent management focuses on developing employee competencies that align with the organization's strategic goals. It is an integrated system that ensures the organization has the right people with the right skills in the right positions to achieve its objectives [26](#page=26). #### 5.2.1 Key components of talent management * **Training and development opportunities:** An employee's performance appraisal should ideally initiate training and development opportunities [26](#page=26). * **Job rotation:** Systematically moving workers from one job to another to broaden their skills and experience. This differs from job enrichment (increasing the scope and challenge of a job) and job enlargement (adding more tasks to a job) [28](#page=28). --- # Employee testing and selection This section focuses on the critical role of reliable and valid testing methods, alongside background investigations, in the employee selection process [31](#page=31). ### 6.1 Principles of employee testing Effective employee selection relies heavily on the use of tests that are both reliable and valid [31](#page=31). #### 6.1.1 Reliability Reliability refers to the consistency of test scores. A reliable employment test will yield consistent scores when a person takes two alternate forms of the test. It also means similar scores when two different people are administered the test at different times [31](#page=31). > **Tip:** Reliability ensures that the measurement tool itself is stable and not producing random fluctuations in scores. #### 6.1.2 Validity Validity refers to the accuracy with which a test fulfills the function for which it was designed. In the context of employment, this means the test accurately measures what it's supposed to measure in relation to job performance [31](#page=31). > **Tip:** A test can be reliable without being valid, but a valid test must also be reliable. #### 6.1.3 Supplementing other tools Selection tests should be used as supplements to other tools, such as interviews and background checks. They are not a standalone solution but part of a broader assessment strategy [31](#page=31). ### 6.2 Types of employment tests A variety of tests are used in employee selection, each designed to measure different attributes relevant to job performance. #### 6.2.1 Physical abilities tests These tests measure a candidate's capacity to perform the physical demands of a job. For example, UPS might use tests involving lifting weights and jumping rope to assess motor ability, which is a type of physical ability. Similarly, tests measuring finger dexterity and reaction time, like those used by Northern Aeronautics, fall under physical abilities testing [31](#page=31) [32](#page=32). #### 6.2.2 Cognitive and skill-based tests These tests assess a candidate's mental capabilities and learned skills. - **Cognitive skills tests** measure general mental ability, problem-solving, and reasoning. - **Achievement tests** assess an individual's current level of knowledge or skill in a specific area that has likely been learned through training or experience [32](#page=32). #### 6.2.3 Personality tests Personality tests aim to gauge an individual's enduring traits and characteristics that influence behavior. The Big Five personality dimensions are commonly considered in these tests and include neuroticism, extroversion, and conscientiousness. Optimism is not typically considered one of the Big Five dimensions [32](#page=32). > **Tip:** When using personality tests, it's crucial to ensure they are job-relevant and do not unfairly discriminate against protected groups. #### 6.2.4 Work sampling and miniature job training These methods involve giving candidates a taste of actual job tasks. - **Work sampling technique** involves training candidates to perform several of the job's tasks and then assessing their performance before hiring [32](#page=32). - **Miniature job training** is a term used to describe this practice of training candidates on a few job tasks and assessing their performance [32](#page=32). #### 6.2.5 Situational judgment tests Situational judgment tests (SJTs) present candidates with realistic job-related scenarios and ask them to choose the most effective course of action. They are designed to assess practical judgment and decision-making skills in work contexts [32](#page=32). #### 6.2.6 Management assessment centers A management assessment center is a multi-day simulation where candidates perform realistic tasks in hypothetical situations and are scored on their performance. These centers are designed to evaluate a wide range of competencies, often for managerial or leadership roles [33](#page=33). ### 6.3 Background investigations Background investigations are a vital component of the selection process, primarily serving to uncover false information provided by applicants. This can include verifying employment history, education, and checking for criminal records or other relevant data [32](#page=32). > **Tip:** Always ensure that background checks are conducted in compliance with relevant privacy laws and regulations. --- ## Common mistakes to avoid - Review all topics thoroughly before exams - Pay attention to formulas and key definitions - Practice with examples provided in each section - Don't memorize without understanding the underlying concepts

| Term | Definition | |------|------------| | 360-degree feedback | A popular performance appraisal method involving evaluation input from multiple levels within the firm and external sources, where many people around the rated employee provide ratings. | | Achievement Testing | Assessments designed to measure an individual's knowledge, skills, or competencies in specific areas relevant to their job performance. | | Advanced Interviewing | A strategic approach to thoroughly assess candidates beyond traditional interviews, aiming to gain comprehensive insights into their skills, competencies, experiences, and potential contributions. | | Alternation Ranking | A performance appraisal method where an assessor selects the best and worst employees based on a certain trait or criterion and ranks them accordingly. | | Applicant Personality Test | A test used to evaluate the personality traits, characteristics, and preferences of job applicants to predict their fit within a specific role or organizational culture. | | Appraisal Interview | A formal discussion between an employee and their manager regarding performance and job role aspects, focusing on improvement areas and employee growth through feedback. | | Apprenticeship Training | A formalized program combining on-the-job training (OJT) with classroom instruction, typically used in skilled trades for apprentices to develop practical skills and theoretical knowledge. | | Background Check | An investigation during the hiring process to verify a potential employee’s background, including education, criminal records, and past work experiences, to confirm provided information. | | Behaviorally Anchored Rating Scale (BARS) Method | A performance appraisal method that combines elements of traditional rating scales and critical incident methods, describing performance levels with specific employee job behaviors. | | Benchmarking Jobs | Comparing job roles and responsibilities within or across organizations to determine the relative value and pay structure for similar jobs in the market, aiding in competitive compensation. | | Bonuses | Additional monetary rewards given to employees on top of their base salary, typically based on individual, team, or organizational performance. | | Buddy System | Part of the employee onboarding process where a new hire is assigned a buddy to guide them on job aspects and familiarize them with the office environment and team members. | | Candidates | An individual seeking employment or appointment to a particular job, role, or office, who expresses interest by submitting an application. | | Campus Recruitment | An external recruitment source where educational institutions provide students with information regarding employment opportunities. | | Career Development | A formal approach used by organizations to ensure that people with the proper qualifications and experiences are available when needed. | | Case Studies | Trainees are given in-depth descriptions of the experiences of disguised organizations to observe numerous managers' experiences in a short period. | | Central Tendency Error | An evaluation appraisal error where employees are incorrectly rated near the average or middle of a rating scale. | | Coaching (Understudy Method) | A training method where a superior trains a subordinate as their assistant or understudy. | | Cognitive Ability Test | A test that measures a candidate’s ability to solve problems and think critically. | | Compensation Manager | A specialist responsible for designing, implementing, and managing an organization's compensation and benefits programs. | | Competency Model | A framework for defining the skill and knowledge requirements of a job, consisting of competencies that enable successful job performance. | | Contingent Personnel | An individual who performs tasks for an organization without being formally hired as a permanent employee. | | Corporate HR teams | Centralized HR units responsible for managing HR strategy and policy across the entire organization. | | Critical Incident Method | A performance appraisal method requiring written records of highly favorable and unfavorable employee work actions. | | Depth Interview | A semi-structured interview where candidates provide detailed information about their educational qualifications, work experience, special interests, skills, and aptitude. | | Direct Recruitment | External recruitment carried out by posting a notice regarding job vacancy on the organization's notice board. | | Embedded HR teams | HR units integrated into specific departments to provide localized HR support. | | Employee Benefits Program | A set of non-wage compensations provided to employees in addition to their regular wages or salaries, designed to enhance the overall compensation package. | | Employee Development | A process of improving employees’ existing competencies and skills and developing newer ones to support the organization’s goals. | | Employee Engagement | The level of commitment workers make to their employer, seen in their willingness to stay at the firm and go beyond the call of duty. | | Employee Matrix | A management structure where employees are grouped simultaneously by two different operational dimensions, typically reporting to both a functional and a project manager. | | Employee Orientation | The process of introducing new hires to their jobs, co-workers, responsibilities, and workplace. | | Employee Referrals | The process of hiring new talent through references from current employees within the organization. | | Employee Selection | The process by which organizations choose individuals from a pool of job applicants to fill job vacancies, aiming to identify candidates likely to succeed. | | Employee Testing | The process of assessing job applicants or current employees through various tests and assessments to evaluate relevant attributes. | | Employment Agencies | Firms or organizations that assist employers in finding suitable candidates for job openings, often having access to pre-screened candidates. | | Employment Exchanges | Government entities where job seeker details are deposited and given to employers for filling vacant positions. | | Equal Employment Opportunity Commission | An organization responsible for enforcing federal laws that prohibit discrimination against employees based on race, color, nationality, religion, gender, etc. | | Essay Method | A performance appraisal method where the rater writes a brief narrative describing the employee’s performance, often focusing on extreme behavior. | | Exit Interview | Interviews conducted for employees who are leaving the organization to ascertain the reasons behind their departure. | | Forced Distribution Method | A performance appraisal method requiring the rater to assign individuals in a work group to a limited number of categories, similar to a normal frequency distribution, to prevent leniency. | | Formal Interview | An interview that is organized with prior notification of dates and timings, where the interviewer plans and prepares questions. | | Group Interview | A type of interview where all or a group of candidates are interviewed together. | | Halo | An error in performance appraisal where a manager generalizes one positive performance feature or incident to all aspects of an employee's performance, resulting in a higher rating. | | Human Capital | The economic value of a worker's experience and skills, including assets like education, training, intelligence, and health. | | HR Generalist | An HR employee who handles daily core HR functions such as recruitment, employee relations, compensation, and compliance. | | Human Resource Planning | The continuous process of systematic planning to achieve optimum use of an organization's employees, ensuring the best fit between employees and jobs. | | Human Resources Forecasting | The process of predicting how a company’s staffing needs will change over time to ensure the right number of employees is available. | | Human Resources Management | The coordination, management, and allocation of human capital to advance an organization’s goals, focusing on investing in employees, ensuring their safety, and managing staffing from hiring to development. | | In-basket Exercises | Designed to assess a candidate's adaptive thinking, problem-solving, judgment, administrative abilities, planning, organizing, delegating, and integrative skills by simulating the handling of various work items under pressure. | | Individual Interview | An interview that takes place on a one-to-one basis, involving verbal and visual interaction between an interviewer and a candidate. | | Induction | The process of receiving and welcoming new employees after selection and providing them with the necessary training to settle in adequately. | | Informal Interview | An interview conducted without prior written communication, which can be arranged at any place and time. | | Internal Recruiting | The process of identifying and filling job vacancies within an organization from its existing workforce. | | Interviews | Discussions between a job analyst and employees, supervisors, or subject matter experts to gather information about job duties, skills, and work conditions. | | Intranet Job Postings | Posting job openings on the organization's internal network or intranet to inform current employees about internal job opportunities. | | Job Analysis | A procedure to determine the duties of positions and the characteristics of people to be hired for them. | | Job Analyst | An HR professional who conducts research on occupations and job descriptions, studying industry and occupational trends. | | Job Compensation and Salary | The monetary and non-monetary benefits offered to employees in exchange for their work, including base salary, bonuses, incentives, and benefits. | | Job Context | The broader environment or conditions in which a job is performed, including the physical work environment, organizational culture, and relationships with others. | | Job Description | A written statement outlining the duties, responsibilities, tasks, and requirements of a particular job. | | Job Enlargement | Expanding a job's scope by adding more tasks or responsibilities of a similar level of complexity to enhance job satisfaction. | | Job Enrichment | Redesigning jobs to incorporate higher levels of responsibility, autonomy, and complexity to enhance intrinsic motivation and satisfaction. | | Job Instruction Training | A structured training method for jobs with clear sequences of steps, teaching each step sequentially to ensure correct performance. | | Job Posting | The practice of publishing and displaying advertisements of an open job to employees. | | Job Rotation | Moving employees through a variety of positions within an organization or department to gain diverse experience. | | Job Specification | A statement outlining the qualifications, skills, knowledge, abilities, and personal attributes required to perform a specific job effectively. | | Job Vacancy | An open position within an organization or company that requires a qualified individual to fill it. | | Legal Hiring Practices | Rules, regulations, and ethical standards organizations must adhere to when recruiting and selecting employees to ensure fairness and compliance with laws. | | Leniency | Giving undeserved high ratings to an employee during performance appraisal. | | Management Assessment Center | A structured evaluation method to assess managerial potential or leadership qualities using simulations, exercises, and interviews. | | Miniature Job Training | A training approach providing condensed versions of job tasks for employees to practice and gain skills in a controlled setting. | | Outsourcing | Hiring an external firm to handle part or all of human resource needs instead of relying on an internal department. | | Onboarding | The process of moving a new hire from applicant to employee status, ensuring paperwork and orientation are completed. | | Online Job Boards | Websites or platforms where employers post job openings to reach a wide audience of potential candidates on the internet. | | Panel Interview | An interview conducted by a group of interviewers who ask questions to candidates on various concepts. | | Performance Appraisal | A systematic process to assess and evaluate the job performance of employees, involving gathering information about their performance, accomplishments, strengths, and weaknesses. | | Performance Appraisal System | A structured process used by organizations to assess and evaluate employees' job performance, contributions, and achievements within a specific period. | | Performance Management | The continuous process of setting objectives, assessing progress, and providing feedback to employees to ensure organizational goals are met effectively. | | Promotion | The advancement of employees by evaluating their job performance, involving shifting an employee to a higher position with more responsibilities and status. | | Ranking Method | A performance appraisal method where the rater ranks all employees in a group in order of overall performance. | | Rating Scales Method | A performance appraisal method that rates employees according to defined factors. | | Recruiter | An HR professional responsible for finding and hiring qualified candidates. | | Recruitment | The process of identifying, attracting, interviewing, selecting, hiring, and onboarding employees, encompassing all steps from identifying a staffing need to filling it. | | Screening | The process of evaluating job applications, scanning resumes, and selecting suitable candidates that match the job description. | | Sensitivity Training (T-groups) | A psychological technique using intensive group discussion and interaction to increase individual awareness of self and others. | | Situational Judgment Test (SJT) | A psychological test presenting hypothetical scenarios relevant to the job, asking respondents to choose the most appropriate action from a set of options to assess judgment and decision-making skills. | | Skill Inventories | Structured databases or systems used to catalog and manage information about the skills, competencies, qualifications, and experiences of employees for talent management and workforce planning. | | Stereotyping | Occurs when managers allow individual differences (gender, race, or age) to affect the ratings they give to employees. | | Stress Interview | Interviews conducted to ascertain how a candidate would react under stress and cope with problems, assessing their ability to handle demands in a complex job. | | Strictness | Being unduly critical of an employee’s work performance during appraisal. | | Structured Interview | An interview that is planned, designed, and detailed in advance, making it pre-planned, precise, and reliable for hiring candidates. | | Succession Planning | A proactive process of identifying and developing potential future leaders or key employees to fill key roles when they become vacant, ensuring smooth transitions and organizational stability. | | Talent Management Process | The goal-oriented and integrated process of planning, recruiting, developing, managing, and compensating employees. | | Talent Specialist | An HR professional who sources and screens candidates that best fit the company's future goals, establishing hiring criteria and understanding recruiting needs. | | Training | The process of teaching specific skills and knowledge to employees to improve their performance in current roles, often involving structured programs or on-the-job training. | | Training and Development | The process of equipping employees with the knowledge, skills, and competencies required to perform their job effectively and contribute to organizational success. | | Training Specialist | A professional specializing in planning, implementing, and evaluating training programs for employees. | | Transfer | The process of interchanging from one job to another without any change in designation and responsibilities, or shifting employees between departments or locations. | | Understudy | An individual trained to take over the responsibilities of a specific position if the current job holder is unable to perform their duties. | | Unstructured Interview | An interview where the questionnaire is not prepared, and interviewers are not well-prepared regarding the questions to be asked. | | Upward Feedback | A process where subordinates or employees provide anonymous feedback on their supervisor's performance, sharing perspectives on leadership, communication, and management style. | | Vestibule Training | A type of training that involves creating a simulated work environment for employees to practice job-related tasks and skills. | | Work Sampling Event | A method used to assess how employees spend their time on various tasks by taking random samples of work activities to gain insights into work patterns and efficiency. | | Work Standards Method | A performance appraisal method that compares each employee’s performance to a predetermined standard or expected level of output. |