[Module 7] leading

Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314
COLLEGE OF BUSINESS AND ACCOUNTANCY NOT FOR SALE
DETAILED LEARNING MODULE IN MGT101
Title: Leading
Module No. 7
I. Introduction
This chapter has the following key contents:
• Leading the organization.
II. Learning Objectives
After studying this module, you should be able to understand:
• Outline the human resource staffing process.
• Explain how human resource staffing is connected to corporate strategic planning.
• Describe the steps followed in human resource planning.
III. Topics and Key Concepts.
This chapter travels through the staffing and development process shown in Figure 12.1. We begin by
describing the five steps in human resource planning and noting issues with contingent work. Next, we look
at workforce diversity and its importance for organizations. The third section takes us through the recruitment
process, including the importance of employer branding, internal versus external recruitment, various types
of recruitment channels, and the role of recruitment in maintaining a diverse workforce. Then we describe
various selection practices, consider the role of selection in diversity, and examine how organizational and
applicant conflicts interfere with the staffing process. The final section of this chapter looks at employee
development, including two methods of training needs analysis, several training methods, and ways in which
managers can support the training process.

City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
HUMAN RESOURCE PLANNING: TRANSLATING STRATEGY INTO STAFFING
REQUIREMENTS.
Human Resource (HR) planning - The process of ensuring that the organization has the right kinds of people
in the right places at the right time.
• HR planning is vital because it puts the right number of people with the right qualifications in place to
achieve the organization’s strategic objectives in the most cost-effective and humane way.
STEP 1: CONDUCT JOB ANALYSIS.
Job Analysis - The systematic investigation and documentation of duties performed, tools and equipment
involved, conditions surrounding work, and competencies required by job incumbents to perform the work.
• This analysis typically results in a job description, which is a written statement of this information.
• This documentation also includes the list of required competencies for the job (called a job specification).
Job analysis allows managers to categorize work so HR planning can identify needs more specifically.
• Job descriptions can still be created in flexible firms, but the descriptions are necessarily more generic
rather than precisely relevant to a specific job. Still, job analysis remains a legal requirement to minimize
the risk of job discrimination.
STEP 2: ESTIMATE HUMAN RESOURCE DEMAND.
The second step in HR planning is to predict how many people with what competencies are required at some
point in the future. As you can imagine, this prediction is not an exact science. It typically relies on
organizational strategy, operational plans, and estimates of future demand for the organization’s products or
services.
STEP 3: DOCUMENT CURRENT HUMAN RESOURCE SUPPLY.
Projecting future demand is only part of the forecasting process. Another part is to estimate how many staff
will still be employed by the organization at future dates. This estimate begins by examining the stock of
employees—how many people are currently employed in each job group with specific competencies.
Managers might simply document the number of employees in various positions as well as their credentials
and competencies. However, most large organizations have sophisticated human resource information
systems that track details about every employee and provide more precise estimates of future supply.
STEP 4: ESTIMATE FUTURE INTERNAL HUMAN RESOURCE SUPPLY.
The next step in human resource planning is to estimate how many current employees will be in various jobs
within the organization at some future date. This prediction of future internal human resource supply can
occur at a macro le vel, micro level, or combination of both levels. At the macro level, managers use estimates
of past flows of people through and out of the organization.
STEP 5: ESTIMATE FUTURE EXTERNAL HUMAN RESOURCE SUPPLY.
Employees quit, retire, and move into different jobs, so in variably managers depend on the external labor
market for new recruits. But can the external supply deliver the human capital the company needs? Most
managers today would loudly complain NO! There is a “war for talent” due to retiring baby boomers, rapidly
changing technologies, and a host of other f actors.

City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
RECRUITING JOB APPLICANTS.
The human resource planning process described earlier estimates the number of people with specific qualifications
required in the future to fulfill the organization’s strategic objectives. Now it is up to recruitment, selection, and
development to attract those people, choose the most suitable applicants, and, w here necessary, train them in the
required competencies.
Recruitment, the first of these activities, consists of a set of activities that improves the number and quality of
people who apply for employment, as well as the probability that qualified and compatible applicants will accept
employment offers. A number of myths about recruitment can cause short- or long-term problems. Here are three
of the most common myths:
• Myth #1: Companies should attract as many job applicants as possible. Large applicant pools can
improve the quality of the people hired, but this strategy also creates a few problems. First, it costs more
money to recruit more people, so at some point the cost exceeds the value. This problem is compounded
as the recruitment activities attract applicants with a poor fit to the job and organization. Second, the
company must reject more applicants as more people apply
• Myth #2: Companies should focus their recruitment on people with the highest credentials. On the
surface, this assumption makes sense because applicants with the best credentials will generally perform
the best. But job performance is only one factor to consider when recruiting and selecting applicants.
Particularly during times of low unemployment or high skill shortages, people’s desire for employment
stability as well as their fit with the organizational culture can be important considerations.
• Myth #3: Companies should appear as attractive as possible during recruitment. Glamorizing the job or
hiding negative features of the organization is a common ploy to attract more job applicants, but this
strategy often backfires. Dissatisfaction, mistrust of management, and turnover can occur as recruits
discover that reality is less than what the company advertised.
NURTURING THE EMPLOYER BRAND
Employer Brand - The package of functional, economic, and psychological benefits provided by employment
and identified with the company as an employer.
INTERNAL VERSUS EXTERNAL RECRUITMENT.
Developing and maintaining an employer brand is a significant advantage in the recruitment process, but finding
enough people with the right qualifications also requires other strategic decisions and tasks. One of the first
decisions is whether to hire outsiders or promote people within the organization.
Many firms prefer internal recruitment (communicating job openings only to current employees) because the
applicants’ qualifications and potential are known from reliable sources within the organization, whereas
information about external job candidates might be sketchy or biased.
Internal recruiting is also less expensive because the company does not pay for job advertisements or headhunters.
These first two benefits lead to a third one: It takes less time to recruit internally than externally. A fourth
advantage of internal recruitment is that job applicants are more familiar with the organization, including its
practices and culture, whereas external applicants are more likely to experience problems adjusting to the job and
organization. Finally, internal recruitment rewards successful employees through promotions to more challenging
and usually high-paying jobs.
External recruitment is both necessary and desirable for most entry-level positions as well as in situations where
there aren’t enough qualified current staff members to f ill higher-level positions. External recruiting also brings
new perspectives, so managers will take this path when they want to change the organization’s culture or infuse
more creativity.

City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
MARS Model of Individual Behavior and Results.
MARS model - A model that outlines the four factors that influence an employee’s voluntary behavior and
resulting performance—motivation, ability, role perceptions, and situational factors.
Motivation - represents the forces within a person that affect his or her direction, intensity, and persistence of
voluntary behavior. Direction refers to the path along which people engage their effort. This sense of direction of
effort reflects the f act that people have choices about where they put their effort. In other words, motivation is
goal-directed, not random. People are motivated to arrive at work on time, finish a project a few hours early, or
aim for man y other targets. The second element of motivation, called intensity, is the amount of effort allocated
to the goal.
Ability - consists of both the natural aptitudes and learned capabilities required to successfully complete a task.
Ability is an important consideration when hiring job applicants because performing required tasks demands the
right knowledge and skills. Ability is also an important factor in employee development. By identifying skill
deficiencies, managers can determine which training is required to improve employee performance. In addition
to hiring qualified applicants and training employees so they learn the required abilities, managers can improve
performance by redesigning the job so employees are given only tasks within their capabilities.
Role Perceptions - Employees who feel engaged in their jobs not only have the necessary motivation and
competencies to perform their work but also understand the specific tasks assigned to them, the relative
importance of those tasks, and the preferred behaviors to accomplish those tasks. In other words, they have clear
role perceptions.
Situational Factors - With high levels of motivation and ability, along with clear role perceptions, people will
perform well only if the situation also supports their task goals. Situational f actors include conditions be yond
the employee’s immediate control that constrain or facilitate his or her behavior and performance. Some
situational characteristics—such as consumer preferences and economic conditions—originate from the external
environment and consequently are be yond the employee’s and organization’s control. However, some situational
factors—such as time, people, budget, and physical work facilities— are controlled by others in the organization.
Corporate leaders need to carefully arrange these conditions so employees can achieve their performance
potential.

City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
MOTIVATING EMPLOYEES: A THREE-PART PROCESS.
PART 1: MANAGING MOTIVATION THROUGH DRIVES AND NEEDS.
Ultimately motivation begins with the employee’s own drives and needs. Drives are instinctive tendencies to seek
particular goals or maintain internal stability. Drives are hardwired in the brain (that is, everyone has the same
drives), and they most likely exist to help the species survive. Needs are mostly conscious deficiencies that
energize or trigger behaviors to satisfy those needs. Needs are produced from our innate drives, but they are also
strengthened or weakened through learning and social forces such as culture and childhood upbringing. We will
find out how needs and drives relate to each other after introducing the world’s most popular motivation theory:
Maslow’s needs hierarchy.
PART 2: MANAGING MOTIVATION THROUGH GOALS, EXPECTATIONS, AND FEEDBACK
People are motivated to a higher degree and a longer time when managers can understand and align employee
needs and underlying drives with organizational objectives. But drives and needs represent just the first piece of
the motivation puzzle. The second part involves directing that ef fort through goals, expectations, and feedback.
This aspect of motivation is best understood through goal setting and feedback as w ell as expectancy theory.
GOAL SETTING AND FEEDBACK
Goal Setting - The process of motivating employees and clarifying their role perceptions by establishing
performance objectives. A goal is a desired future state that an organization or person attempts to realize. Goal
setting improves role perceptions and consequently clarifies the direction of employee effort. When conducted
effectively, goal setting can also increase the intensity and persistence of effort. It achieves this higher level of
motivation through employee buy-in and by raising the level of personal goal expectations.

City of Olongapo
GORDON COLLEGE
Tel. No. (047) 224-2089 loc. 314
PART 3: MANAGING MOTIVATION THROUGH EXTRINSIC AND INTRINSIC REWARDS
The third part of the motivation puzzle considers what employees receive or experience from their effort and
accomplishments. These outcomes can generally be divided into two types: extrinsic rewards and intrinsic re
wards. An extrinsic reward is anything received from another person that the recipient values and is contingent
on his or her behavior or results. Extrinsic rewards include paychecks, performance bonuses, praise, or some other
form of recognition. Extrinsic rewards don’t occur naturally with the behavior or result; instead, someone
introduces these rewards. An intrinsic reward, on the other hand, is a positive emotional experience resulting
directly and naturally from the individual’s behavior or results. This would include the enjoyment of learning a
new task, a feeling of accomplishment from performing a job well, and a sense of flow or engagement when work
is performed smoothly. Notice that these emotions arise naturally from performing the task.

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