Human resource management_(1)

Human Resource

Management

Fundamentals of Human

Resource Management

Management Essentials

Management involves setting goals

and allocating scarce resources to

achieve them.

Management is the process of

efficiently achieving the objectives of

the organization with and through

people.

Management Essentials

Primary Functions of Management

Planning – establishing goals

Organizing – determining what

activities need to be done

Leading – assuring the right people

are on the job and motivated

Controlling – monitoring activities to

be sure goals are met

Why is HRM Important to an

Organization?

The role of human resource managers has changed. HRM jobs today require a new level of sophistication. Employment legislation has placed new

requirements on employers.

Jobs have become more technical and skilled.

Traditional job boundaries have become blurred with the advent of such things as project teams and telecommuting.

Global competition has increased demands for productivity.


Organization?

The Strategic Nature – HRM must be

a strategic business partner and

represent employees.

forward-thinking, support the business

strategy, and assist the organization in

maintaining competitive advantage.

concerned with the total cost of its

function and for determining value

added to the organization.


Organization?

HRM is the part of the organization

concerned with the “people”

dimension.

HRM is both a staff, or support

function that assists line employees,

and a function of every manager’s job.

HRM Certification

Colleges and universities offer HR

programs.


Organization?

Four basic

functions:

Staffing

Training and

Development

Motivation

Maintenance

How External Influences

Affect HRM

Strategic Environment

Governmental Legislation

Labor Unions

Management Thought


Affect HRM

HRM Strategic Environment includes:

Globalization

Technology

Work force diversity

Changing skill requirements

Continuous improvement

Work process engineering

Decentralized work sites

Teams

Employee involvement

Ethics


Affect HRM

Governmental Legislation

Laws supporting employer and

employee actions

Labor Unions

Act on behalf of their members by

negotiating contracts with

management

Exist to assist workers

Constrain managers

Affect non unionized workforce


Affect HRM

Management Thought

Management principles, such as those

from scientific management or

based on the Hawthorne studies

influence the practice of HRM.

More recently, continuous

improvement programs have had a

significant influence on HRM

activities.

Staffing Function Activities

Employment planning

ensures that staffing will contribute to

the organization’s mission and

strategy

Job analysis

determining the specific skills,

knowledge and abilities needed to be

successful in a particular job

defining the essential functions of the

job

Staffing Function Activities

Recruitment

the process of attracting a pool of

qualified applicants that is

representative of all groups in the

labor market

Selection

the process of assessing who will be

successful on the job, and

the communication of information to

assist job candidates in their decision

to accept an offer

Goals of the Training and

Development Function

Activities in HRM concerned with assisting employees to develop up-to-date skills, knowledge, and abilities

Orientation and socialization help employees to adapt

Four phases of training and development Employee training

Employee development

Organization development

Career development

The Motivation Function

Activities in HRM concerned with helping

employees exert at high energy levels.

Implications are:

Individual

Managerial

Organizational

Function of two factors:

Ability

Willingness

Respect


Managing motivation includes:

Job design

Setting performance standards

Establishing effective compensation

and benefits programs

Understanding motivational theories


Classic Motivation Theories

Hierarchy of Needs –Maslow

Theory X – Theory Y –McGregor

Motivation – Hygiene – Herzberg

Achievement, Affiliation, and Power

Motives – McClelland

Equity Theory – Adams

Expectancy Theory - Vroom

How Important is the

Maintenance Function?

Activities in HRM concerned with

maintaining employees’ commitment and

loyalty to the organization.

Health

Safety

Communications

Employee assistance programs

Effective communications programs

provide for 2-way communication to ensure

that employees are well informed and that

their voices are heard.

Translating HRM Functions

into Practice

Four Functions:

Employment

Training and development

Compensation/benefits

Employee relations

HRM in an Entrepreneurial

Enterprise

General managers may perform HRM functions, HRM activities may be outsourced, or a single generalist may handle all the HRM functions.

Benefits include

freedom from many government regulations

an absence of bureaucracy

an opportunity to share in the success of the business

HRM in a Global Village

HRM functions are more complex when employees are located around the world.

Consideration must be given to such things as foreign language training, relocation and orientation processes, etc.

HRM also involves considering the needs of employees’ families when they are sent overseas.

HR and Corporate Ethics

HRM must:

Make sure employees know about

corporate ethics policies

Train employees and supervisors on

how to act ethically

HumanResource Planning

and Job Analysis

Introduction

Human resource planningis a process by which an organization ensures that

it has the right number and kinds of people

at the right place

at the right time

capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives.

Introduction

Linked to the organization’s

overall strategy and planning to

compete domestically and

globally.

Overall plans and objectives

must be translated into the

number and types of workers

needed.

Senior HRM staff need to lead

top management in planning for

HRM issues.

An Organizational

Framework

Linking Organizational Strategy

to Human Resource Planning

Ensures that people are available to

meet the requirements set during

strategic planning.

Assessing current human resources

A human resources inventory report

summarizes information on current

workers and their skills.

Human Resource Information Systems

HRIS are increasingly popular

computerized databases that contain

important information about

employees.



Assessing current human resources

Succession planning

• includes the development of replacement charts

• portray middle-to-upper level management

positions that may become vacant in the near

future

• lists information about individuals who might

qualify to fill the positions



Determining the Demand for Labor

A human resource inventory can be

developed to project year-by-year

estimates of future HRM needs for

every significant job level and type.

Forecasts must be made of the need

for specific knowledge, skills and

abilities. ?



Predicting the Future Labor Supply

A unit’s supply of human resources comes from:

• new hires

• contingent workers

• transfers-in

• individuals returning from leaves

Predicting these can range from simple to complex.



Predicting the Future Labor Supply

Decreases in internal supply come about through:

• Retirements

• Dismissals

• Transfers-out

• Lay-offs

• Voluntary quits

• Sabbaticals

• Prolonged illnesses

• Deaths



Where Will We Find Workers

migration into a community

recent graduates

individuals returning from military service

increases in the number of unemployed and

employed individuals seeking other

opportunities, either part-time or full-time

The potential labor supply can be expanded

by formal or on-the-job training.



Matching Labor Demand and Supply

Employment planning compares forecasts

for demand and supply of workers.

Special attention should be paid to current

and future shortages and overstaffing.

Recruitment or downsizing may be used

to reduce supply and balance demand.

Rightsizing involves linking staffing levels to

organizational goals.



Employment Planning and

the Strategic Planning Process

Job Analysis

Job Analysis is a systematic

exploration of the activities within a

job.

It defines and documents the duties,

responsibilities and accountabilities of

a job and the conditions under which

a job is performed. ?

Job Analysis

Job Analysis Methods

Observation method – job analyst

watches employees directly or reviews

film of workers on the job.

Individual interview method – a

team of job incumbents is selected

and extensively interviewed.

Group interview method – a number

of job incumbents are interviewed

simultaneously.

Job Analysis

Job Analysis Methods

Structured questionnaire method –workers complete a specifically designed questionnaire.

Technical conference method –uses supervisors with an extensive knowledge of the job.

Diary method – job incumbents record their daily activities.

The best results are usually achieved with some combination of methods.

Job Analysis

Structured Job Analysis

Techniques

Department of Labor’s Job Analysis

Process:

• Information from observations and

interviews is used to classify jobs by their

involvement with data, people and things.

• Information on thousands of titles

available on O*Net OnLine which is the

Department of Labor’s replacement for

the Dictionary of Occupational Titles.

Job Analysis Position Analysis Questionnaire

(PAQ)(developed at Purdue University)

Jobs are rated on 194 elements, grouped in six major divisions and 28 sections.

The elements represent requirements that are applicable to all types of jobs.

This type of quantitative questionnaire allows many different jobs to be compared with each other, however, it appears to be more applicable to higher-level professional jobs.

Job Analysis

Job Descriptions

Written statement of what jobholder does,

how it is done, under what conditions and

why.

Common format: title; duties; distinguishing

characteristics; environmental conditions;

authority and responsibilities.

Used to describe the job to applicants, to

guide new employees, and to evaluate

employees.

Job Analysis

Job Specifications

States minimum acceptable

qualifications.

Used to select employees who have

the essential qualifications.

Job Analysis

Job Evaluations

Specify relative value of each job in

the organization.

Used to design equitable

compensation program.

Job Analysis

The Multi-faceted Nature of Job

Analysis

Almost all HRM activities are tied to

job analysis.

Job analysis is the starting point for

sound HRM.

Job Analysis

Job Analysis and the Changing World of

Work

Globalization, quality initiatives,

telecommuting, and teams require

adjustments to the components of a job.

Today’s jobs often require not only technical

skills but interpersonal skills and

communication skills as well.

Recruitment and Selection

By: Dr. Hadia Hamdy

Introduction

Recruiting

Once an organization identifies its

human resource needs through

employment planning, it can begin the

process of recruiting potential

candidates for actual or anticipated

organizational vacancies.

Introduction

Recruiting brings

together those with jobs to

fill and those seeking jobs.

Recruiting Goals

To provide information that will attract

a significant pool of qualified

candidates and discourage

unqualified ones from applying.

Recruiting Goals

Factors that affect recruiting efforts

Organizational size

Employment conditions in the area

Working conditions, salary and benefits offered

Organizational growth or decline

Recruiting Goals

Constraints on recruiting efforts

include:

Organization image

Job attractiveness

Internal organizational policies

Recruiting costs

Recruiting: A Global

Perspective

For some positions, the whole world is

a relevant labor market.

Parent (Home) country nationals

are recruited when an organization is

searching for someone with extensive

company experience to launch a very

technical product in a country where it

has never sold before.

Recruiting: A Global

Perspective

Host-country nationals (HCNs) are

targeted as recruits when companies

want each foreign subsidiary to have

its own distinct national identity.

HCN’s minimize potential problems

with language, family adjustment and

hostile political environments.

Recruiting Sources

Sources should match the position to

be filled.

Sources:

Internal Searches

Employee Referrals/

Recommendations

External Searches

Alternatives

Recruiting Sources

The internal search

Organizations that promote

from within identify current

employees for job openings:

by having individuals bid for

jobs

by using their HR

management system

by utilizing employee

referrals

Recruiting Sources

The internal search

Advantages of promoting from within include

morale building

encouragement of ambitious employees

availability of information on existing employee performance

cost-savings

internal candidates’ knowledge of the organization

Recruiting Sources

The internal search

Disadvantages include:

possible inferiority of internal

candidates

infighting and morale problems

Recruiting Sources

Employee referrals/recommendations

Current employees can be asked to

recommend recruits.

Advantages include:

the employee’s motivation to make a good

recommendation

the availability of accurate job information for

the recruit

Employee referrals tend to be more

acceptable applicants, to be more likely to

accept an offer and to have a higher survival

rate.

Recruiting Sources

Employee

referrals/recommendations

Disadvantages include:

the possibility of friendship

being confused with job

performance

Recruiting Sources

External searches

Advertisements: Must decide type

and location of ad, depending on job;

decide whether to focus on job (job

description) or on applicant (job

specification).

Two factors influence the response

rate:

identification of the organization

labor market conditions

Recruiting Sources

External searches

Employment agencies:

Public or state employment services

focus on helping unemployed

individuals with lower skill levels to

find jobs.

Private employment agencies provide

more comprehensive services and are

perceived to offer positions and

applicants of a higher caliber.

Recruiting Sources

External searches

Schools, colleges, and

universities:

May provide entry-level or

experienced workers

through their placement

services.

May also help companies

establish cooperative

education assignments and

internships.

Recruiting Sources

Recruitment alternatives

Temporary help services.

Temporary employees help organizations

meet short-term fluctuations in HRM needs.

Older workers can also provide high quality

temporary help.

Employee leasing.

Trained workers are employed by a leasing

company, which provides them to employers

when needed for a flat fee.

Typically remain with an organization for

longer periods of time.

Questions???

Selection

Selection – the process by which an

organization chooses from a list of

applicants the person or persons who best

meet the selection criteria for the position

available, considering current environmental

conditions

Internal Environmental Factors Influencing Selection

Organization characteristics that can

influence the selection process:

Size

Complexity

Technological ability

External Environmental Factors Influencing Selection

Government employment laws and

regulations

Size, composition, and availability of

local labor markets

Selection Criteria

Formal EducationExperience and

Past Performance

Physical

Characteristics

Personal

Characteristics and

Personality Type

Reliability of Selection

Criteria

Reliability – how stable or repeatable

a measurement is over a variety of

testing conditions.

Validity of Selection Criteria

Validity – addresses the questions of:

What a selection tool measures

How well it has measured it

It is not sufficient for a selection tool to

be reliable

The selection tool must also be valid

4. Background

and Reference

Checks

5. Selection

Decision

6. Physical

Examination

2. Employment

Interview

3. Employment

Tests

1. Preliminary

Screening

Steps in the Selection Process

The Selection Process

Initial Screening

Involves screening of

inquiries and screening

interviews.

Job description

information is shared

along with a salary

range.


Employment Interview

Interviews involve a face-to-face meeting with

the candidate to probe areas not addressed

by the application form or tests

Two strategies for effective use of interviews:

1. Structuring the interview to be reliable and

valid

2. Training managers on best interview

techniques


Types of Interviews:

Unstructured interview

Structured interview

Behavioral Interviews

Candidates are observed not only for

what they say, but how they behave.

Role playing is often used.

Stress Interviews.


Realistic Job Preview

RJP’s present unfavorable as well as

favorable information about the job to

applicants.

May include brochures, films, tours,

work sampling, or verbal statements

that realistically portray the job.

RJP’s reduce turnover without

lowering acceptance rates.


Employment Tests

Mechanism that attempts to measure

certain characteristics of

individuals, e.g.,

aptitudes

intelligence

personality

Should be validated before being

used to make hiring decisions


Employment Tests

Estimates say 60% of all organizations use some type of employment tests.

Performance simulation tests: requires the applicant to engage in specific job behaviors necessary for doing the job successfully.

Work sampling: Job analysis is used to develop a miniature replica of the job on which an applicant demonstrates his/her skills.


Employment Tests

Assessment centers: A series of

tests and exercises, including

individual and group simulation

tests, is used to assess managerial

potential or other complex sets of

skills.

Testing in a global arena:

Selection practices must be

adapted to cultures and

regulations of host country.


Background Investigation:

Verify information from the application form

Typical information verified includes:

former employers

previous job performance

education

legal status to work

credit references

criminal records


Background Investigation

Do not always provide an organization

with meaningful information about

applicants

Concerns over the legality of asking

for and providing confidential

information about applicants


Physical Examinations

Should be required only after a

conditional offer of employment has

been made

Summary

Putting more money into selection can

significantly reduce the amount of money

it must spend on training

A selection system will make some

mistakes

No guarantee of successful job

performance

Questions????

Training and Development

By: Magda Hassan

Agenda

The Socialization Process.

Employee Orientation.

Employee Training

Employee Development.

Organization Development.

Evaluation of Training Program.

Introduction

Socialization, training and development are all used to help new employees adapt to their new organizations and become fully productive.

Ideally, employees will understand and accept the behaviors desired by the organization, and will be able to attain their own goals by exhibiting these behaviors.

1. The socialization Process

Socialization

A process of adaptation to a

new work role.

Adjustments must be made

whenever individuals change

jobs

The most profound adjustment

occurs when an individual first

enters an organization.


The assumptions of employee

socialization:

Socialization strongly influences

employee performance and

organizational stability

Provides information on how to do the

job and ensuring organizational fit.

New members suffer from anxiety,

which motivates them to learn the

values and norms of the organization.


The assumptions of employee socialization:

Socialization is influenced by subtle and less subtle statements and behaviors exhibited by colleagues, management, employees, clients and others.

Individuals adjust to new situations in remarkably similar ways.

All new employees go through a settling-in period.


A Socialization Process


The Socialization Process

Prearrival stage:

Individuals arrive with a

set of values, attitudes

and expectations which

they have developed

from previous experience

and the selection

process.



Encounter stage: Individuals discover how well their expectations match realities within the organization.

Where differences exist, socialization occurs to imbue the employee with the organization’s standards.



Metamorphosis stage: Individuals

have adapted to the organization, feel

accepted and know what is expected

of them.

2. New-Employee OrientationPurpose

Orientation may be done by the supervisor, the HRM staff or some combination.

Formal or informal, depending on the size of the organization.

Covers such things as:

The organization’s objectives

History

Philosophy

Procedures

Rules

HRM policies and benefits

Fellow employees

2. New-Employee Orientation

Learning the Organization’s Culture

Culture includes long-standing, often unwritten rules about what is appropriate behavior.

Socialized employees know how things are done, what matters, and which behaviors and perspectives are acceptable.

2. New-Employee OrientationRoles

The CEO’s Role in Orientation

Senior management are often visible during the new employee orientation process.

CEOs can: Welcome employees.

Provide a vision for the company.

Introduce company culture -- what matters.

Convey that the company cares about employees.

Allay some new employee anxieties and help them to feel good about their job choice.

2. New-Employee Orientation

HRM’s Role in Orientation

Coordinating Role: HRM instructs new employees when and where to report; provides information about benefits choices.

Participant Role: HRM offers its assistance for future employee needs (career guidance, training, etc.).

3. Employee Training

Definitions

Employee training

a learning experience designed to achieve a relatively permanent change in an individual that will improve the ability to perform on the job.

Employee development

future-oriented training, focusing on the personal growth of the employee.

3. Employee Training

Determining Training Needs

4. Methods of Employee Training

On-the-job training methods

Job Rotation

Understudy Assignments

Off-the-job training methods

Classroom lectures

Films and videos

Simulation exercises

Vestibule training

5.Employee Development

This future-oriented set of

activities is predominantly

an educational process.

All employees, regardless

of level, can benefit from

the methods previously

used to develop

managerial personnel.

5.Employee Development

Employee development methods

Job rotation involves moving

employees to various positions

in the organization to expand

their skills, knowledge and

abilities.

Assistant-to positions allow

employees with potential to

work under and be coached by

successful managers.

6. Employee Development

Methods


Committee assignments provide opportunities for:

• decision-making

• learning by watching others

• becoming more familiar with organizational members and problems

Lecture courses and seminarsbenefit from today’s technology and are often offered in a distance learning format.

6. Employee Development

Methods


Simulations include case studies,

decision games and role plays and

are intended to improve decision-

making.

Outdoor training typically involves

challenges which teach trainees the

importance of teamwork.

7. Organization Development

What is change?

OD efforts support changes that are

usually made in four areas:

The organization’s systems

Technology

Processes

People

7. Organization Development

Two metaphors clarify the change

process.

The calm waters metaphor describes

unfreezing the status quo, change to a

new state, and refreezing to ensure

that the change is permanent.

The white-water rapids metaphor

recognizes today’s business

environment which is less stable and

not as predictable.

8. Evaluating Training and

Development Effectiveness

Evaluating Training Programs:

Typically, employee and manager opinions

are used,

These opinions or reactions are not

necessarily valid measures

Influenced by things like difficulty,

entertainment value or personality of the

instructor.

Performance-based measures (benefits

gained) are better indicators of training’s

cost-effectiveness.

Performance Appraisal and

Compensation

By: Yomna Sameer

Evaluating Employee

Performance - Agenda

Purpose of performance management

system

Difficulties in performance

management system

Steps of the Appraisal process

Appraisal methods

Performance Evaluation

The performance management

systems need to include:

decisions about who should

evaluate performance

what format should be used

how the results should be utilized

Purposes of a Performance

Management System

Feedback - let employees know how

well they have done and allow for

employee input.

Development – identify areas in

which employees have deficiencies or

weaknesses.

Difficulties in Performance Management

Systems

Focus on the individual:

Discussions of performance may elicit

strong emotions and may generate

conflicts when subordinates and

supervisors do not agree.

Difficulties in Performance Management

Systems

Focus on the process: Company

policies and procedures may present

barriers to a properly functioning

appraisal process.

Additionally, appraisers may be poorly

trained.

The Appraisal Process

Step 1 and 2

Establishment of performance

standards

Derived from company’s strategic

goals.

Based on job analysis and job

description.

Communication of performance

standards to employee.

Step 3 and 4

Measurement of performance using

information from:

personal observation

statistical reports

oral reports

written reports

Comparison of actual performance

with standards.

Step 5 and 6

Discussion of appraisal with

employee.

Identification of corrective action

where necessary.

Basic corrective action deals with

causes.

Appraisal Methods

Three approaches:

Absolute standards

Relative standards

Objectives

1. Absolute Standards

Evaluating absolute standards:

An employee’s performance is

measured against established

standards.

Evaluation is independent of any other

employee.


Essay Appraisal: Appraiser writes

narrative describing employee

performance & suggestions.

Critical Incident Appraisal: Based

on key behavior incident illustrating

effective or ineffective job

performance.


Checklist Appraisal: Appraiser checks off

behaviors that apply to the employee.

Adjective Rating Scale Appraisal:

Appraiser rates employee on a number of job-

related factors.


Forced-Choice Appraisal:

Appraisers choose from sets of

statements which appear to be equally

favorable, the statement which best

describes the employee.


Behaviorally Anchored

Rating Scales (BARS):

Appraiser rates employee

on factors which are defined

by behavioral descriptions

illustrating various

dimensions along each

rating scale.

2. Relative Method

Employees are evaluated by

comparing their performance to the

performance of other employees.

2. Relative Method

Group Order Ranking: Employees

are placed in a classification reflecting

their relative performance, such as

“top one-fifth.”

2. Relative Method

Individual Ranking:

Employees are ranked from

highest to lowest.

Paired Comparison:

• Each individual is compared to

every other.

• Final ranking is based on

number of times the individual

is preferred member in a pair.

3. Achieved Outcome

Method

Management by Objectives (MBO)

includes mutual objective setting and

evaluation based on the attainment of

the specific objectives

3. Achieved Outcome

Method

Common elements in an MBO

program are:

• goal specificity

• participative decision making

• an explicit time period

• performance feedback

Effectively increases employee

performance and organizational

productivity.

Creating More Effective

Performance Management Systems

Development of Compensation

and Pay systems - Agenda

Objectives of compensation

Types of rewards

Development of a base pay system

Objectives of compensation

Efficiency

Quality

Performance

Cost

Fairness

Compliance

Types of Reward Plans

Intrinsic versus Extrinsic Rewards

Intrinsic rewards (personal

satisfactions) come from the job itself,

such as:

pride in one’s work

feelings of accomplishment

being part of a work team


Intrinsic versus Extrinsic Rewards

Extrinsic rewards come from a

source outside the job

include rewards offered mainly by

management

Money

Promotions

Benefits


Financial versus Non-financial Rewards

Financial rewards include:

wages

bonuses

profit sharing

pension plans

paid leaves

purchase discounts

Non-financial rewards emphasize making life on the job more attractive; employees vary greatly on what types they find desirable.

Introduction

Development of a Base Pay

System

Job Analysis

Job Evaluation

Pay Survey

Pay Structure & Grades

Job Structure


System

Job Evaluation

Use of job analysis

information to determine

the relative value of each

job in relation to all jobs

within the organization.

The ranking of jobs

Labor market conditions

Collective bargaining

Individual skill differences

?


System

Job Evaluation Methods

Ordering method: A

committee places jobs in a

simple rank order from

highest (worth highest pay)

to lowest.


System


Classification method:

Jobs are placed in classification

grades

Compare their descriptions to the

classification description and

benchmarked jobs

Look for a common denominator such

as skills, knowledge, or responsibility


System


Point method:

Jobs are rated and allocated points

on several identifiable criteria,

using clearly defined rating scales.

Jobs with similar point totals are

placed in similar pay grades.

Offers the greatest stability.


System

Establishing the Pay

Structure

Compensation surveys

Used to gather factual data on

pay rates for other

organizations

Information is often collected

on associated employee

benefits as well

Any Questions

?

Business

Human resource management_(1)