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as 3M and CARE, high-level managers within the human resource management function participate directly in strategy formulation. They also help coordinate human resource aspects of strategy implementation. In this section, we review major aspects of the human resource management process before exploring in greater depth the main reasons for the growing strategic role of human resource management.HRM Process: An Overviewsuggested by the HRM process shown in Figure 12-1, human resource management encompasses a number of important activities. One critical aspect of the process, human resource planning, assesses the human resource needs associated with strategic management and helps identify staffing needs. The staffing component of the process includes attracting and selecting individuals for appropriate positions. Once individuals become part of the organization, their ability to contribute effectively is usually enhanced by various development and evaluation efforts, such as training and periodic performance evaluations. Compensating employees for their efforts is another important factor in the HRM process, because adequate rewards are critical not only to attracting but also to motivating and retaining valuable employees. Finally, managers must respond to various issues that influence work-force perceptions of the organization and its treatment of employees.order to explore human resource management in an orderly fashion, the various activities that make up the HRM process are discussed sequentially in this chapter. The components, though, are actually highly interrelated. For example, when a group of British financiers took over the British arm of F. W. Woolworth from its American parent in 1982, the chain of 1000 stores had a tarnished image and 30,000 employees with a reputation for poor service. Investigation revealed many interrelated problems, such as poor employment interviewing practices (interviews typically lasted 10 minutes), little training for either sales staff or managers, and a compensation system that did not reward good performance. Thus various components of the HRM process collectively reinforced the service problems.resource professionals operating within human resource departments typically play a major role in designing the various elements in the HRM process and in supporting their use by line managers. Nevertheless, line managers ultimately are responsible for the effective utilization of human resources within their units and, thus, carry out many aspects of the HRM process, particularly as they relate to implementing strategic plans.Strategic Importance of HRMthe strategic potential of human resource management in organizations is a relatively recent phenomenon. In fact, the role of such management in organizations, as it is known today, has evolved through three main stages. From early in this century until the mid-1960s, HRM activities comprised a file maintenance stage, in which much of the emphasis was on screening applicants, orienting new employees, recording employee-related data for personnel purposes, and planning company social functions (such as the company picnic).second stage, government accountability, began with the passage of the Civil Rights Act of 1964 (which forbids employment discrimination based on race, color, religion, sex, or national origin) and continued as additional laws, court rulings, and federal regulatory guidelines increasingly impacted various aspects of employment, such as hiring and promotion decisions, pension plans, and health and safety issues. (We mention several of these laws throughout this chapter.) Of course, some laws, particularly those governing relations with unions, existed before 1964; but the mid-1960s ushered in an era of accelerated governmental regulation of employment issues. As organizations attempted to gain greater control over activities that could result in legal difficulties and large financial settlements, the HRM function gained in importance. Indicative of the expense that can be involved, under a 1973 consent decree (a court-sanctioned agreement in which the accused party does not admit wrongdoing but agrees to discontinue a practice), AT&T agreed to raise the starting pay of women promoted to managerial positions so that their pay levels would be equal to those of similarly promoted men, at a cost of more than $30 million.third stage, which began in the late 1970s and early 1980s, can be termed the competitive advantage stage. In this stage, human resource management is increasingly viewed as important for both strategy formulation and implementation. Thus, under some circumstances, human resources can comprise a source of distinct competence that forms a basis for strategy formulation. For example, 3M's noted scientists enable the company to pursue a differentiation strategy based on innovative products. Under other circumstances, HRM activities may be used to support strategy implementation. For instance, at Honda of America's Marysville, Ohio, plant, an emphasis on differentiation through quality is supported by such HRM activities as training programs, developmental performance appraisal processes, and promises of job security. Human resource management often is an important ingredient in the success of such strategy-related activities as downsizing, mergers, and acquisitions. At the competitive advantage stage, then, human resources are considered explicitly in conjunction with strategic management, particularly through the mechanism of human resource planning.RESOURCE PLANNINGresource planning is the process of determining future human resource needs relative to an organization's strategic plan and devising steps necessary to meet those needs.In planning human resource needs, human resource professionals and line managers consider both demand and supply issues, as well as potential steps for addressing any imbalances. Such planning often relies on job analysis as a means of understanding the nature of jobs under consideration.Analysisanalysis is the systematic collection and recording of information concerning tie purpose of a job, its major duties, the conditions under which it is performed, the contacts with others that performance of the job requires, and the knowledge, skills, and abilities needed for performing the job effectively. Job analysis information can be collected in a variety of ways, including observing individuals doing their jobs, conducting interviews with individuals and their superiors, having individuals keep diaries of job-related activities, and/or distributing questionnaires to be completed by job incumbents and their supervisors.results of job analysis often are used to develop job descriptions. A job description is a statement of the duties, working conditions, and other significant requirements associated with a particular job. Job descriptions frequently are combined with job specifications (see Table 12-1). A job specification is a Statement of the skills, abilities, education, and previous work experience that are required to perform a particular job. Formats for job descriptions and job 12-1 Sample Job Description and Job Specification New JerseyControl Clerk (1127)immediate supervision receives and reviews input and output data for recurring computer reports and records. Receives detailed instructions on assignments which are not routine. Work is checked through standard controls.Descriptiondata processing equipment such as Sorters (IBM 083), Bursters (Std 'Register and Moore), decollators (Std Register), Communications Terminal (IBM 3775), and interactive operation of IBM 327X family of terminals to process accounting, personnel, and other statistical reports.and tends machine according to standard instructionsminor operating adjustments to equipment.data with necessary documentation for computer processing. output data and corrects problems causing incorrect output. and maintains lists, control records, and source data necessary to produce reports.output reports by predetermined instructions.magnetic-tape cleaning and testing equipment.and/or adjusts files via use of time-sharing terminals.Specificationmonths' experience in operating data-processing equipment, Ability to reconcile differences and errors in computer data.for Human Resourcesmain aspect of human resource planning is assessing the demand for human resources. Such an assessment involves considering the major forces that affect the demand and using basic forecasting aids to predict it.Forces. One major force affecting the demand for human resources is an organization's environment, including factors in both the general environment, or mega-environment, and the task environment. For example, an aspect of the general environment, such as the economy, can alter demand for a product or service and, thus, affect the need for certain types of employees. In Chapter 3, we discuss in greater depth the various environmental forces that influence organizations.addition to environmental factors, changing organizational requirements, such as alterations in the strategic plan, also can influence the demand for human resources. Similarly, internal work-force changes, such as retirements, resignations, terminations, deaths, and leaves of absence, frequently cause major shifts in the need for human resources.Demand. Several basic techniques are used to forecast human resource demand in organizations. Judgmental forecasting is mainly based on the views of individuals thought to be knowledgeable, particularly line managers, who often are in a good position to make expert estimates about future needs for various types of workers. For example, at Flour-Daniel, one of the largest construction companies in the United States, organization, members with relevant technical skills often help estimate the human resource needs for potential construction projects. Quantitative forecasting, which relies on numerical data and mathematical model