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Academy of Economic Studies of Bucharest Faculty of Business Administration HUMAN RESOURCE MANAGEMENT 

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Academy of Economic Studies of 

Bucharest

Faculty of Business Administration

HUMAN RESOURCE MANAGEMENT 

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MANAGEMENT PROCESS:

- FORECASTING

- PLANNING

- ORGANIZING

- STAFFING

- LEADING

- CONTROLLING

L ecture 2

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an organization·s labor force

people working in an

organization

people having specific

skills and knowledge

different people with different

perceptions, needs and goals

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impossible to draw some guiding lines and to win immediately a

sustainable adhesion from every body , especially on the long run

HRM works to ensure that employees are able to meet the

organization's goals.

As HRM has become viewed as more critical to organizational success,

many companies have realized that it is the people in an organization

that can provide a competitive advantage.

µ object  of  manag e m e n t  should  be  to  secure  the  maxim u m p ros  p er i ty for  the  

e mp loyer, cou  p led wi th  the  maxim u m p ros  p er i ty for  e a ch  e mp loyee·. 

F reder i ck W . Ta ylor 

 The theoretical discipline the assumption that employees ar e individuals with 

differ ent perce ptions, needs and goals

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 The reality shows though that many employees remain undervalued,

under trained, underutilized, poorly motivated and in consequence

they will not fell mobilized to perform at the true level of their

capabilities.

" P eo  p le a re  our m ost va lu a ble a sset "  is a cliché which no

member of any senior management team would disagree

with.

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" T he map i s  n ot  the  terr i tory´ A. Korzybski

WORLD

-neurological filters

(our senses which are

very subjective),

-socio-cultural filters

(influenced by the

environment that

every person was

born and lived in),

-individual filters(given by the personal

experience).

   G   E   N   E   R   A   L

   I   Z   A   T   I   O   N

   P   R   O   C   E

   S   S

   D   I   S   T   O   R

   T   I   N   G    P

   R   O   C   E   S   S

   S   E   L   E   C

   T   I   O   N

   P   R   O   C   E   S   S INDIVIDUAL

WORLD MAP

VERBAL

COMMUNICATION

NON-VERBAL

COMMUNICATION

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HRM de a ls wi th the des ign of for ma l syste m s  in an or ganiza t i o n to e n sure the effect iv e an d  eff  i c i e n t use of hu man t a le n t to 

a cco mp l i sh  or ganiza t i o na l  g o a ls .

- br inging p eo  p le  in to the or ganiza t i o n ,hel  ping the m  p erfor m the i r w ork ,

co mp e n s a t ing the m  for the i r l a bors,an d  sol ving p roble m s  th a t a r i se 

GENERAL  

MANAGEMENT 

restr i ct ing i ts p roble m s  an d  subject  to  de a l ing wi th  

 p erso nn el 

HRM

-holistic

interdisciplinary 

-strategic & coherent

 too  r igi d  r a t i o na l  th in k ing c an le a d  the  e v olut i o n a t p roble m 

 p o in t.

G. Bachelard

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-necessity of selecting

tribal leaders,

-of recording and passing

knowledge about safety,health, hunting, and

gathering, on to youth

beginning of 

mankind1000 - 2000 B.C

China and employee

screening tests

ancient Greek and Babylonian

civilizations and the earliest form

of industrial education, the

apprentice system

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EMPIRICAL STAGE

Industrial revolution

Cottage system Factor y pr oduction

(For d¶s first line manuf actur ing)

-new jobs filled with emigrants

-need for adequate management of  

employees

OWNER = the only holder of  the capital +

the only organizer of  the work 

³master of  the house´

(nowadays = in state administration & Japanese f amilies)

-INTUITION, TRADITION, EXPERIENCE

-activities took place  by r e petitive attempts, with no 

scheduling and no pr evious training

-pr oblems wer e dealt with as they appear ed and the aim

was to adapt to the situations that might occur 

the end of the XIXth century 

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the 1880s - the 1940s

United States = the land of opportunity where good-paying industrial jobs were

plentiful

Early HRM techniques:

TEACHING ENGLISH, HOUSING, MEDICAL CARE

-TRAINING incr easing pr oductivity

until World War II

§ wellbeing (prosperity) stag

immigration

significantly 

rose

however 

hazardous tasks,

long hours,

unhealthy workenvironments

labor unions· pressure

(existing since 1790 in USA,

they  became much mor e 

 power f ul dur ing the late 1800sand early 1900s)

- low-cost  but low-

sk ill immigrant 

work ers

- differ ent languages

spok en

F.W. Taylor's

(1856-1915)

Scientific

Management

&

B.F. Goodrich

Co.(1900)

National Cash

Register (1902)

-work er gr ievances,

-wage administration,

-r ecor d k ee ping, etc.

&

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Behavioral

school

Hawthorne

productivity studies

between the two World Wars

development of personnel activities

- moder n SELECTION, TRAINING, EVALUATION

methods

until World War IIdevelopment of 

the work unions

and legislation

-collective negotiations,

-work agr eements,

-r esolution of  the 

employees¶ claims

recruitment of a

large number of 

soldiers during

World Wars

-employment of a large 

num ber of women =

the main work force

&

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all medium-sized and large 

companies and institutions

had some ty pe of HRM

 pr ogram in place to handle 

r ecruitment, training,

r egulator y compliance,dismissal etc

After the World War II

PERSONNEL ADMINISTRATION STAGE

the end of the 1970s

DEVEL OPMENT 

STAGE

World war II ² 

1950s· 

-r ecruitment,

r emuneration

-unions str engthened 

-personnel ser vices

r eor iented

MAT URITY

STAGE

1960s· - 1970s· 

-mor e complex appr oach of  the HR 

- selection, training and evaluation 

impr ovement

- ela borated system of work legislation 

-to avoid lawsuits for violating this

legislation HRM pr ofessionals

&

1980s· the concepts of ´HRMµ and ³SHRM³ appeared

in the American universities

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each time has its own reality 

- technological advances quickly applying technology to the task of  impr oving

o perations

- the nature of work mor e and mor e peo ple is employed in pr oducing and deliver ing

ser vices, not pr oducts, most of all  because of  the technology 

- center of gravity in employment = moved f ast f r om manual and

cler ical work ers to k nowledge work ers

- globalization extending sales, ownershi p, and/or manuf actur ing to new mark ets

a br oad

- exporting jobs  pr ompted  by competitive pr essur es and the search for gr eater 

efficiencies

- workforce demographics mor e diverse work force in terms of age, sex, nationality,

 belief s, etc

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L INE MANAGER = who is author ized to dir ect the work of su bor dinates ORDERS

who is r esponsible for accomplishing the organization¶s tasks

MANAGERS: L INE MANAGERS

STAFF MANAGERS

STAFF MANAGER = who assists & advise line managers

,

HR manager = STAFF MANAGER

Staff function = assists & advises

Coordinative function = coor dinates personnel

activities

L ine function = inside his own de pt. (dir ects the activity)

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VACANCY = when an existing occupant leaves the organization

when a new post is cr eated thr ough ex pansion & r eorganization

- Doing away with the work altogether 

- Job enrichment 

- Re-think the structure of the work & automate the work 

- Sub-contracting (outsourcing)

- Working over-time

- Part-time position

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 JOB ANAL YSIS = determining the DUTIES & SKILLS r equir ed  by a job 

and

the CHARECTERISTICS of peo ple who should  be hir ed

 JOB DESCRIPTION = list of job¶s duties, r e por ting r elationshi ps, work ing conditions

WHAT THE WORKER  DOES

- simple version

- mor e complex version

O utd a ted & su  p erfluous   co mp ete n c i es   fr am e w ork 

 JOB SPECIFICATION = list of job¶s human r equir ements  personality, etc.

-esse n t ia l  ch a r a cter i st i cs 

-des i r a ble  ch a r a cter i st i cs 

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METHODS OF COLL ECTING  JOB ANAL YSIS

INFORMATION

-QUESTIONNAIRES

(may exaggerate the importance of some aspects of work)

-EMPL OYEES· DIARIES

(employees may be reluctant or not be typical)

-OBSERVING EMPL OYEES

(time consuming & people act differently when they

know they are observed)

- INTERVIEWING EMPL OYEES

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RECRUIT MENT 

WHAT  TO L OOK FOR?

WHERE TO L OOK FOR?

WHO WILL TAKE CARE OF?

HOW TO L OOK FOR?

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METHODS OF RECRUIT MENT 

- - IN-FORMAL METHODS from inside the CO

RECOMMENDATIONS (referral recruitment) ± risk of high

subjectivism

CONSUL  TING THE PORTFOL IO WITH HIRING REQUESTS

GRADUATES HAVING AN INTERNSHIP

RE-HIRING FORMER EMPL OYEES (once they left, it is very likely to

leave it again)

PROMOTING INTERNAL CANDIDATES

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METHODS OF RECRUIT MENT 

- - FORMAL METHODS external sources

CO alone (using advertising agencies)

Using RECRUIT MENT AGENCIES (staff recruited through agencies

has the tendency to move on quicker)

HEAD-HUNTING COs

EDU

CATIONAL 

ESTABL ISH

MENTS

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Recruiting Yield Pyramid

Recruiting yield pyramid = the historical arithmetic relationships between

- recruitment leads and invitees,- invitees and interviews,

- interviews and offers made,

- and offers made and offers accepted.

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EEO = Equal Employment Opportunities- sources of discrimination

DISPARATE TREAT MENT = intentional discrimination where an employer treats an

individual differently because he is a member of a particular race, religion, gender 

or ethnic group

DISPARATE IMPACT = an apparently neutral employment practice that

creates an ADVERSE IMPACT (disproportion within the pool of candidates

hired)

-Disparate rejection rates

-Four-fifths rule of thumb prima facie case of discrimination

-Restricted policy (intentionally or not)

-McDonnell ² Douglas test ± intentionally discrimination

-The person belongs to a protected class

-The person applied & was qualified for the job

-The person was rejected despite qualification

-After rejection, the position remained open

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EEO = Equal Employment Opportunities- BONA FIDE OCCUPATIONAL QUALIFICATION (BFOQ)

BFOQ = an employee to be of a certain religion, sex or national origin

where that is reasonably necessary to the organization¶s normal operation

BUSINESS NECESITY

-Good intentions are no excuse

-Employers cannot hide behind collective bargaining agreements

AFFIRMATIVE ACTION = employer to make an extra effort to HIRE & 

PROMOTE those in a protected group

REVERSE DISCRIMINATION = average people are discriminated against

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T he  de vi l  w e a rs  P r a d a