9/11/24, 9:50 C202 4-9 chapter summary notes (including learning objective
AM question ans…
C202 Managing Human Capital
From Human Resource Management 2nd Edition, Copyright 2019. Used by arrangement of Chicago Business
Press.
Red Text indicated learning objectives
Things following the Concepts tabs are just interesting extra from the chapter.
Ctrl+F is your friend
Chapter 4: Analyzing Work and Human Resource Planning
Learning Objectives:
1. Describe the purpose of a job analysis and how it is used.
a. systematic analysis of a job and the characteristics workers need to do the job well, important
tasks and working conditions as well as the tools and technologies used on the job.
b. Deliverables include...
• Job Description (most important artifact)
• determining hiring requirements,
• developing a recruiting plan,
• selecting job applicants for employment,
• creating employee training plans,
• designing compensation systems, and
• developing performance evaluation tools.
2. Describe how managers align performance metrics, organizational action plans, and human
resource planning.
1. Strategic planning, identify vision, mission, and objectives
2. Human resource planning, get the organizations talent in alignment with 1
3. Forecasting labor supply and demand, determine how many x one needs
4. Act and make plans to address supply/demand gaps
3. Explain the differences between rules, policies, and procedures.
a. Policies are formal rules of the company
b. Procedures describe processes of a task and how to complete them step by step
c. Rules are hard limits on what is acceptable by employees.
4. Explain how the employee handbook can protect the organization and the employee.
a. The employee handbook is implemented so that the necessary policies and procedures are in
place. It also protects the employer from being sued and the employee from being
discriminated against.
Concepts:
• Strategic planning process- A process for making decisions about an organization’s long-term goals and
how they are to be achieved.
about:bl 1/
, 9/11/24, 9:50 C202 4-9 chapter summary notes (including learning objective
AM question ans…
• Mission- The organization’s basic purpose and the scope of its operations.
• Vision- Long-term goals regarding what the organization wants to become and accomplish, describing
its image of an ideal future.
• Core values- The enduring beliefs and principles that guide an organization’s decisions and goals.
• Human resource planning- Aligning the organization’s human resources to accomplish the
organization’s strategic goals effectively and efficiently.
• Forecasting labor demand Factors
o Leading Economic Index: The Leading Economic Index, a monthly composite economic index
published by the Conference Board, is intended to signal peaks and troughs in the business
cycle.
o Consumer Confidence Index: The monthly Conference Board Consumer Confidence Index
telephone survey asks 1,000 randomly selected adults questions about perceptions of job
security and their willingness to spend money. This index of consumer sentiment can help
predict future demand for a company’s products and its resulting labor needs.
o Exchange rate trends: Exchange rates reflect the cost of one country’s currency in terms of
another currency. By influencing the cost of raw materials, the price of the organization’s
exports, and the prices of competitors’ imports, exchange rates influence product demand and
subsequent demand for employees.
o Interest rate forecasts: Interest rates reflect the cost of borrowing money. Higher interest rates
make money more expensive to borrow. Accordingly, interest rates influence both consumer
demand for a company’s products and companies’ willingness to borrow money to fund
expansion plans.
• Forecasting labor demand Methods
o Trend analysis: Using past patterns to predict a firm’s future labor needs.
o Ratio analysis: Using past relationships to forecast how many employees will be needed for
different levels of business activity.
o Judgmental forecasting: Relying on the expertise of people in the organization to predict a
firm’s future employment needs. Can be top down or bottom up.
• Forecasting labor supply
o Talent inventories- are worksheets or databases that summarize each employee’s competencies,
qualifications, and anything else that can help the company understand how the employee can
contribute.
o Replacement Charts- Graphically shows current jobholders, possible successors, and
each successor’s readiness to assume the job.
o Succession Planning- Identifying, developing, and tracking employees to enable them to
eventually assume higher-level positions.
• Gap analysis- Comparing labor supply and demand forecasts to identify future talent needs.
• Action plans- A strategy for proactively addressing an expected talent shortage or surplus.
• Job design- Different job characteristics motivate different employees.
about:bl 2/
AM question ans…
C202 Managing Human Capital
From Human Resource Management 2nd Edition, Copyright 2019. Used by arrangement of Chicago Business
Press.
Red Text indicated learning objectives
Things following the Concepts tabs are just interesting extra from the chapter.
Ctrl+F is your friend
Chapter 4: Analyzing Work and Human Resource Planning
Learning Objectives:
1. Describe the purpose of a job analysis and how it is used.
a. systematic analysis of a job and the characteristics workers need to do the job well, important
tasks and working conditions as well as the tools and technologies used on the job.
b. Deliverables include...
• Job Description (most important artifact)
• determining hiring requirements,
• developing a recruiting plan,
• selecting job applicants for employment,
• creating employee training plans,
• designing compensation systems, and
• developing performance evaluation tools.
2. Describe how managers align performance metrics, organizational action plans, and human
resource planning.
1. Strategic planning, identify vision, mission, and objectives
2. Human resource planning, get the organizations talent in alignment with 1
3. Forecasting labor supply and demand, determine how many x one needs
4. Act and make plans to address supply/demand gaps
3. Explain the differences between rules, policies, and procedures.
a. Policies are formal rules of the company
b. Procedures describe processes of a task and how to complete them step by step
c. Rules are hard limits on what is acceptable by employees.
4. Explain how the employee handbook can protect the organization and the employee.
a. The employee handbook is implemented so that the necessary policies and procedures are in
place. It also protects the employer from being sued and the employee from being
discriminated against.
Concepts:
• Strategic planning process- A process for making decisions about an organization’s long-term goals and
how they are to be achieved.
about:bl 1/
, 9/11/24, 9:50 C202 4-9 chapter summary notes (including learning objective
AM question ans…
• Mission- The organization’s basic purpose and the scope of its operations.
• Vision- Long-term goals regarding what the organization wants to become and accomplish, describing
its image of an ideal future.
• Core values- The enduring beliefs and principles that guide an organization’s decisions and goals.
• Human resource planning- Aligning the organization’s human resources to accomplish the
organization’s strategic goals effectively and efficiently.
• Forecasting labor demand Factors
o Leading Economic Index: The Leading Economic Index, a monthly composite economic index
published by the Conference Board, is intended to signal peaks and troughs in the business
cycle.
o Consumer Confidence Index: The monthly Conference Board Consumer Confidence Index
telephone survey asks 1,000 randomly selected adults questions about perceptions of job
security and their willingness to spend money. This index of consumer sentiment can help
predict future demand for a company’s products and its resulting labor needs.
o Exchange rate trends: Exchange rates reflect the cost of one country’s currency in terms of
another currency. By influencing the cost of raw materials, the price of the organization’s
exports, and the prices of competitors’ imports, exchange rates influence product demand and
subsequent demand for employees.
o Interest rate forecasts: Interest rates reflect the cost of borrowing money. Higher interest rates
make money more expensive to borrow. Accordingly, interest rates influence both consumer
demand for a company’s products and companies’ willingness to borrow money to fund
expansion plans.
• Forecasting labor demand Methods
o Trend analysis: Using past patterns to predict a firm’s future labor needs.
o Ratio analysis: Using past relationships to forecast how many employees will be needed for
different levels of business activity.
o Judgmental forecasting: Relying on the expertise of people in the organization to predict a
firm’s future employment needs. Can be top down or bottom up.
• Forecasting labor supply
o Talent inventories- are worksheets or databases that summarize each employee’s competencies,
qualifications, and anything else that can help the company understand how the employee can
contribute.
o Replacement Charts- Graphically shows current jobholders, possible successors, and
each successor’s readiness to assume the job.
o Succession Planning- Identifying, developing, and tracking employees to enable them to
eventually assume higher-level positions.
• Gap analysis- Comparing labor supply and demand forecasts to identify future talent needs.
• Action plans- A strategy for proactively addressing an expected talent shortage or surplus.
• Job design- Different job characteristics motivate different employees.
about:bl 2/
