Course: Introduction to Business
Chapter 11: Hiring, Training, and Evaluating
Employees
Learning Objectives
• Understand the importance of human resource management
in business success.
• Explain human resource planning: forecasting, job analysis,
and recruiting.
• Evaluate strategies for ensuring equal opportunity in the
workplace.
• Identify types of compensation and their impact on
employee motivation.
• Explore methods for developing employee skills across
industries.
• Understand performance evaluation criteria and processes.
Human Resource Planning
Human resource planning involves planning to
satisfy a firm’s needs for employees. It consists of
three tasks: Forecasting staffing needs, Job
analysis, Recruiting
• Forecasting staffing needs
• Job analysis
• Recruiting
Human Resource Planning
• Forecasting staffing needs
o anticipated in advance, the firm has more time e.g.
retirement vs leaves job
o employees result from expansion e.g. growth trend e.g.
create new position
o temp need avoid hiring new workers
o overtime existing workers
o Hire part-time or seasonal workers
Human Resource Planning
• Job analysis the analysis used to determine the tasks and the
necessary credentials for a particular position
• Job specification states the credentials necessary to qualify
for a job position
• Job description states the tasks and responsibilities of a job
position
Recruiting
Human resource manager helps each specific department recruit
candidates for its open positions.
• Internal Recruitment: Promotes existing staff, boosts morale,
cost-effective.
• External Recruitment: Accesses new talent and ideas, supports
growth.
• Methods: Job portals, newspapers, career fairs, social media.
• Stages: Application collection, screening, interviews, reference
checks.
Recruiting
Providing Equal Opportunity
When recruiting candidates for a job position, managers
should not discriminate based on factors that are
unrelated to potential job performance. First, such
discrimination is illegal. Second, discrimination may
reduce the efficiency of the employees in the workplace.
Providing Equal Opportunity
Diversity incentives are rewards, benefits, or policies
implemented by an organization, government, or institution to
promote and encourage diversity within its workforce, student
body, leadership, or other groups. These incentives are designed to
improve representation and inclusion of people from
underrepresented or marginalized backgrounds, such as those
defined by race, ethnicity, gender, age, disability, religion,
sexual orientation, or socio-economic status.
Compensation Packages that Firms Can Offer
A compensation package consists of the total monetary
compensation and benefits offered to employees. Some
employees think of their compensation only in terms of their
salary, but the benefits that some firms offer may be more
valuable than the salary. The typical elements of a compensation
package are salary, stock options, commissions, bonuses, profit
sharing, benefits, and perquisites.
Compensation Packages that Firms Can Offer
• Fixed Salary/Wages: Based on time period or productivity.
• Stock Options: Incentivizes long-term performance and loyalty.
• Bonuses: Performance-based, periodic cash rewards.
• Commissions: Percentage-based incentive for sales roles.
• Employee benefits
• Pre-requisites
Developing Skills of Employees
• Essential for adapting to technological and market changes.
• Improves job performance, satisfaction, and retention.
• Promotes career advancement and reduces errors.
• Builds organizational capability and innovation.
Types of Skills Developed
• Technical Skills: Tools, software, machinery handling.
• Decision-Making Skills: Analytical thinking and judgment.
• Customer Service Skills: Handling inquiries and complaints.
• Safety and Compliance Skills: Hazard awareness and mitigation.
• Human Relations Skills: Communication and diversity
management.
Training Methods
• On-the-job training, coaching, mentoring.
• Seminars, workshops, and webinars.
• Online learning platforms and internal universities.
• Simulation and role-play for experiential learning.
Evaluation of Employee Performance
• Provides feedback on employee strengths and weaknesses.
• Basis for promotions, raises, and career development.
• Uses objective (quantitative) and subjective (qualitative) criteria.
• Prevents bias and enhances transparency in performance
management.
Evaluation of Employee Performance
• Segmenting the Evaluation into Different Criteria
• Using a Performance Evaluation Form
• Assigning Weights to the Criteria
Steps for Proper Performance Evaluation
• Communicate job responsibilities
• Inform deficiencies
• Supervisors should be consistent
Evaluation Techniques
• Rating scales, performance metrics, 360-degree feedback.
• Weighted scoring based on importance of tasks.
• Clear documentation helps address disputes or legal claims.
• Upward appraisal allows feedback on supervisors.
Key Takeaways
• HR planning aligns talent with strategic goals.
• Diversity and equal opportunity improve workforce quality.
• Compensation and benefits drive employee motivation.
• Training ensures relevance in a changing environment.
• Performance evaluations promote accountability and growth.
