Quiz 12: Managing Human Resources


An employee social contract establishes a relationship between employers and employees. In this case, Person K assumes an old social contract while Person C advocates a new social contract. An old social contract was an implied mutual contract existing between organizations and their employees. The contract implied that employers and employees would grow old together. The company would provide long-term secure  employment  in return for employee's loyalty. An old social contract defines a 'great' job as: • Providing long-term steady employment ; • Providing health care, safety and retirement benefits ; and • Providing fulfillment and lasting relationships. With the advancements in technologies, conditions changed and so did the agreement of lasting relationship. Marketplace was now controlled by consumers. To compete, businesses were compelled to produce better goods and services at lower cost or higher value. This required companies to change their strategies and requirements, for increasing the productivity of workers. Busywork shifted to brain work.  These situations gave rise to the new social contract. In new social contract, employees are viewed as 'self-reliant' to whom a company owes no benefit at all. Here, employees 'earn' their jobs and positions, rather than having it as a "reward" for their good behavior and work. The new social contract focuses on 'employability' of employees. "Employability'" can be described as follows: • Allowing employees to develop their own skills and abilities ; • Adding career building skills and experiences to make them employable; • Providing them opportunities to participate in decision making ; and • Maintaining balance between their work life and personal life. Difference between both the contracts is given below: Old Social Contract vs New Social Contract img

Companies working in an open system require future analysis, due to dynamic change in market scenario. It requires consistent changes in its competitive strategy, technology or organizational structure for survival. Change in decision making process, labor shortage, advanced technology, lack of competent employees clearly shows ineffective human resource planning. Human resource planning is very essential to anticipate future staffing needs to achieve organizational goals. Following steps must be taken to implement human resource planning in an organization: Step 1: Assessing Human Resources HR planning is a continuous process which involves analysis of human resource objectives and inventory level. Detailed analysis of number of employees, their current training levels and needs, education and performance levels must be done to review current strength of the workforce. Analysis should be done to classify employees according to their function, level of skill and status. This data helps the company to understand its key areas of expertise, as well as its problems. Analysis of manpower helps to ensure that a reservoir of talent is available for future requirement. Step 2: Demand Forecasting A key component of HRP is determining future needs for HR in terms of quantity and quality. Following table lists some of the relevant areas for manpower forecasting: img Demand forecasting can be done using quantitative and qualitative techniques. Following table lists these techniques: img Step 3: Supply Forecasting Supply forecasting helps an organization to estimate the future availability of human resource and various sources of recruitment. img Some of the techniques available to anticipate supply needs are Markov analysis, Simulations, Renewal analysis and goal programming. Step 4: Conduct a Gap Analysis Next step is to match demand and supply. The difference between a company's current state and its future staffing plan will determine future HR needs. A comparison chart can be used to identify what is available and what is needed. It provides an idea of the quantitative and qualitative gaps in the workforce. For example, if company anticipates the need of employees with ability to work in teams, HR would review and analyze the requirement, complete a job analysis for positions needed, create job descriptions for the new positions and determine staffing needs for these positions. Step 5: Action Plan To manage changes in product mix, union agreements, and competitive action, a concrete manpower plan is needed. This plan is backed up by HR activities like recruitment, selection, training, promotion, retirement, and replacement and so on. After the programs have been implemented, control and evaluation must be done for the effectiveness of manpower planning. Deficiencies in the plan are pointed out and plans are updated periodically according to change in conditions.

Human Resources Director T has been asked to give a reference for W, who had alcohol issues on the job and where significant problems were discovered after his departure. W was promised a good reference with no mention of the alcohol abuse if he attended a rehabilitation program, which he did do. T should give the reference as agreed to when W left the company, since he has held up his end of the agreement. In terms of her ethical concerns, she may give limited information to the caller rather than strongly recommending him; generally the information the law allows would include the employment period, the employee's position, any promotions and awards, and whether the employee showed up to work on time. Sticking to this list will allow her to comply with the terms of the agreement with W without violating her ethical concerns.

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