Management Processes-4 HRM

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ManagementProcesses-4

Human Resource ManagementOR

Staffing

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PEOPLE AS RESOURCE: After an organization's structural design is in place, it needs people with the right skills, knowledge, and abilities to fill in that structure. People are an organization's most important resource, because people either create or undermine an organization's reputation for quality in both products and service. RESPONSIVNESS TO CHANGE: To remain competitive, and carry organization through change, to ensure it’s future, in order to remain competitive.

Because of the importance of hiring and maintaining a committed and competent staff, effective human resource management is crucial to the success of all organizations.

WHY HRM?

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Human resource management (HRM), or staffing, is the management function devoted to acquiring, training, appraising, and compensating employees.

In effect, all managers are human resource managers, although human resource specialists may perform some of these activities in large organizations.

HRM practices-mould workforce into a motivated and committed team-manage change and achieve organizational objectives

What is HRM?

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Identifying workforce requirements Taking inventory of available people and Forecasting Recruiting Selecting Orienting and Placing Promoting Appraising Career Planning Compensating Training/Development Of current/new employees to achieve organizational

objectives effectively and efficiently. It is the responsibility of every manager, and not only of the HR Dept.

Manpower Planning-Summary

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1.All Managers are human resource managers.2.Employees are much more important assets than

buildings or equipment; good employees give a company the competitive edge. Success of other Managerial functions contingent upon good human resources

3.Staffing is a continuous activity- This is because staffing function continues throughout the life of an organization due to the transfers and promotions that take place.

Fundamentals of HRM

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4.Efficient management of personnel- Human resources can be efficiently managed by a system or proper procedure, that is, recruitment, selection, placement, training and development, providing remuneration, etc.

5. Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements. It must match the needs of the organization with the needs of the employee.

Fundamentals of HRM-2

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Strategy determines structure, which in turn determines number and type of managers required-compared to available inventory-internal/external sources-recruitment/selection-placement-promotion-separation,alongwith appraisal, career planning, training and development

Staffing affects Leading and Controlling Staffing-open system approach, involving internal

factors(policies,org. climate, air rewards) and external factors(trained,educated,skilled workforce to meet demands made by high technology)

SYSTEMS APPROACH TO HRM

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Factors affecting number and kinds of managers:size,complexity,expansion plans, TO rate, span of control/delegation parameters

Management Inventory Chart-Ready for promotion immediately/after one year/in the long run/satisfactory but not promotable/unsuitable to continue in present post

Demand/Supply-Plans, available pool, along-with intl./ext forces, international/sectoral imbalances.

Recruitment-Selection-Placement-Training-Promotion along-with Appraisal-Career Planning-Training and Development are aspects of Systems Approach to Staffing.

Systems Approach to HR-2

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1. Analyzing the current manpower inventory 2. Making future manpower forecasts-Techniques commonly

employed by the organizations are: Expert Forecasts: This includes informal decisions, formal expert

surveys and Delphi technique. Trend Analysis: Manpower needs can be projected through

extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis

Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division. Work Force Analysis: Whenever production and time period has to be analyzed, due allowances have to be made for getting net manpower requirements.

Mathematical models- computer aided, like budget and planning analysis, regression, new venture analysis.

Steps in Manpower Planning

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3. Developing employment programmes- Once the current inventory is compared with future forecasts, the employment programmes can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans

4. Design training programmes- These will be based upon extent of diversification, expansion plans, development programmes,etc. Training programmes depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.

Steps in Manpower Planning-2

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1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions.

2. Efficient utilization- Efficient management of personnel becomes an important function in the industrialized world of today. Setting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function

Importance of Manpower Planning

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3. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function.

4. Better HR- Stabilization through strong HR - through effective control, clear communication, effective supervision and leadership. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations.

Importance of Manpower Planning-2

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5. Higher productivity-when resources are utilized optimally-minimum wastage of time, money, efforts and energy through staffing and related activities ( Performance appraisal, training and development, remuneration)

6. Shortages and surpluses can be identified so that quick action can be taken wherever required.

7.Recruitment and Selection programmes are based on manpower planning.

8.Reduces labour cost-excess staff can be identified and overstaffing can be avoided.

9.Promotion of Talent Development through appropriately designed training programmes

10.Promotes growth,diversification,and stability of business.

Importance of Manpower Planning-3

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1. Under Utilization of Manpower 2. Degree of Absenteeism 3. Lack of Education and Skilled Labour 4.Assessing Level of Satisfaction/Dissatisfaction-Exit

Interviews, the rate of turnover and rate of absenteeism are source of vital information

5.Extent of Overtime-Amount of OT paid may be due to real shortage of men, ineffective management or improper utilization of manpower. Careful study of overtime statistics is a must. Few Organizations maintain sufficient records and information on manpower and have appropriate retrieval systems.

Obstacles in Manpower Planning

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HIGH SUPPLY LOW SUPPLY

HIGH DEMAND SELECTIONPLACEMENTPROMOTION

INTERNAL TRG/DEV

COMPENSATIONEXTL.

RECRUITMENT

LOW DEMANDCHANGE IN PLANS

OUTSOURCINGLAYOFFS

DOWNSIZINGVRS SCHEMES

TRAINING AND DEVELOPMENT,BASED ON ASSUMED FUTURE TRENDS

STAFFING PRIORITIES BASED ONDEMAND/SUPPLY OF MANAGERS

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External factors: education level, social attitudes,rules&regulations,state of economy, demand/supply of managers

Internal factors: organizational goals,structure,policies,internal dynamics of demand/supply

Responsibility for staffing vests with all managers

Factors affecting Staffing:

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Selection-choosing among most suitable candidates for current/future position

Systems Approach-Requirement Plan based on firms goals/objectives-translated into position requirement/job design-matched with skill sets of available candidates-selection-placement-orientation-performance-evaluation-rewards or termination/transfer-organizational development programs

Selection Process

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Identifying Job Requirement-job description based on job analysis

Appropriate scope of Job Matching job design with managerial skills Job design-appropriate job structure-individual

vs. group tasks-workstations-job enrichment through direct relationship with clients-feedback-vertical loading i.e. increasing individual's responsibility for planning/doing and controlling job. For team jobs-autonomy,rotation,training,group rewards.

Position Requirements and Job Design

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Firms requirements, individual differences,technology,costs associated with re-structuring jobs,org. structure and climate

Skills and personal characteristics in individuals-desire to manage,communication skills,empathy,honesty and integrity,past record as manager

Matching qualifications with job requirements-internal/external sources

Factors influencing Job Design

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Recruitment-attracting appropriate candidates to fill identified positions in organizational structure

Selection-choosing among available candidates for current/future opening-fitting person to job

Placement-S&W of individual are evaluated and a suitable position is found or designed

Promotion and Peter Principle

Recruitment

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Selection Process-validity and reliability of data-Application(ext candidate)—formal Screening interview-formal interview-validation of information-medical tests-selection/rejection

Interview process-trained interviewers, right questions in structured/unstructured manner, multiple interviews with different sets of interviewers.

References, Recommendation letters Tests-IQ,Aptitude/Proficiency, Personality tests Assessment Centres-technique for selection and

promotion-psychological tests, management games,presentations,case studies

Selection Process,Technique,Instruments

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Orientation-introduction to organization functions, tasks and people

Socialization-acquisition of work skills and abilities, adoption of appropriate role behaviour,adjustment to norms/vales of organization(internalization)

Interviews-Structured /non structured, multiple interviews with different panelists

Tests-Intelligence/Proficiency/Vocational/Personality

Assessment Centers to assess how managers will act in typical managerial situations

Orientation and Socialization

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Choosing Appraisal Criteria:

1. Performance in achieving GOALS-role of luck and /factors beyond manager’s control

2. Performance as MANAGERS-success in managerial functions

Appraising against Verifiable Objectives Appraisal is not the sole objective of MBO. In Systems approach towards MBO, appraisal is

merely the last step.

Performance Appraisal

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Questions to be considered in GOAL SETTING: 1.Were the goals adequate? 2.Were goals stretched or reasonably attainable? 3.Any facilitating/hindering factors? 4.Were the goals obsolete in changed scenario? Different views on Appraisals: Subjective vs.. Objective Evaluation i.e. should one focus on limited verifiable criteria OR also

on valid reasons for deviations? Judging V.S. Self-Appraisal MBO emphasis on self-control and self-

direction.Inaddition to comprehensive appraisal, periodic and constant monitoring can uncover deviations

Performance Appraisal-2

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Assessing Past Performance vs.. Future Development Focus of appraisal should be to focus on strengths, preparing action plans to

overcome short-comings, and provide insights to develop strategies for the future. Types of reviews: 1.Comprehensive 2.Periodic 3.Continuous Strength of appraisal against verifiable objectives-promotes objectivity and

reduces element of subjectivity. Carried out in positive atmosphere. Weakness of appraisal against verifiable objectives- Part played by Luck/Unforeseen positive or negative factors, Managers may

neglect individual development while focusing on immediate goals rather than long-term goals, Reduced focus on achievement as MANAGERS

Dealing with critical functions of management, and rating through series of questions on a scale ranging from 0 inadequate to 5 superior

To further reduce subjectivity, comprehensive annual appraisal giving specific examples to support ratings, review of ratings at one higher level, and informing appraisees that their own appraisal would depend on how thay factored in performances of their own subordinates .


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Advantages: Management concepts/techniques are

disseminated and communication improves, focus as tool for management development by highlighting basic areas of concern, overcoming weaknesses, and also balances managerial functions vis a vis goal achievement.

Disadvantages: No focus on core skills of manager e.g. technical,marketing,financial etc,subjectivity element.


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Team Evaluation Approach: Selection of job related criteria-development of examples of

observable behavior-selection of multiple raters from peers/associates/immediate supervisor-preparation and completion of rating forms-integration of results-analysis and report

This approach is used for promotions and personal development programmers also. Multiple raters can reduce subjectivity by correcting rater’s bias

Performance Review Software: Web based electronically completed evaluation forms by multiple raters and reviews by other managers,with inputs from appraisee himself. Timely submission ensured.

Can be used for identifying training needs,MD programmes,promotability of employees


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Rewards of Managing: Managers have motives,needs,desires which vary according to

age,education,economic situation ,maturity Most managers look for opportunities,power,income,challenging work,

career development, depth/breadth of managerial experience. Compensation includes perks/fringe benefits, variable bonuses etc Stress of Managing: Hans Selye-”Rate of Wear and Tear caused by

Life”.Stress places psychological and physical demands on individuals. Can be due to physical aspects like workload,tension,iregular work

hours/eating habits/sleep and rest or psychological issues like boring /tedious job, lack of autonomy,unrealitic objectives, dual career marriage etc-may lead to drug/alcohol abuse,accidents,absenteeism,labout turnover etc

Can be overcome through time management, healthy food habits,meditation,exercise,career planning etc


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Performance Appraisal and analysis of S&W of individual is the starting point of Career strategy

1.Preparation of Personal Profile 2.Development of Long term Personal & Professional Goals-

resistance to career plan as it involve decision making!, making commitments in uncertain environment, fear of failure and blow to personal ego

Solution: If setting Performance Goals is part of Appraisal Process, identifying career goals becomes easier, goals setting is a continuous process and can be reviewed in changing circumstances, commitment time –frame

3. Analysis of Environment for Threats/Opportunities 4.Analysing personal Strengths/Weaknesses 5.Development of Strategic Career Alternatives

Formulating The Career Strategy

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6. Consistency Testing and Strategic Choices-rational and systematic analysis of trade-offs required. personal choice, ambition and personal values need to be factored in

7.Development of Short-Range Career Objectives &Action Plans

8.Development of Contingency Plans 9.Implementation-personal growth be considered

while designing training &development programmes 10.Monitoring progress Strategy for Dual-career couples-working spouse and

requirements regarding leave,re-location etc

Formulating The Career Strategy-2

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Manager Development-long term, future oriented programmes and progress made in learning to manage

Managerial Training-Programmes facilitating learning process,short term activity to help managers manage better

Organizational Development-systematic, integrated and planned approach to improving the effectiveness of groups of people and entire organization or major units.

Managing Change: Manager and Organizational Development

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3 Needs should be considered before designing training & development programmes-

A-Needs of organization i.e. objectives, availability of managers and TO rate

B-Needs of job itself-job description and performance standards

C-Data about individual training needs-performance appraisals,interviews,surveys and career plans

Steps in Manager Dev Process-Present job/next job in career ladder/long term needs of organization

Manager Development Process and Training

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On the Job Training Planned Progression e.g. Supervisor-Works Manager-Production

Manager. Downside?-Focus may shift on next job from current job Job Rotation-flip side-short time may not be enough, no line

authority, but can assist only, suitable vacancies may not be available.

Creation of “Assistant to” positions. Temporary Promotions-when incumbent may be ill, away

temporarily, or position is vacant. Committee membership-submit reports/proposals, demonstrate

analytical/conceptual skills Coaching-”Mentoring "in atmosphere of trust & understanding,

proper delegation to develop strengths and potential of candidates

Approaches to Management Development

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Conference Programmes-Internal/External. May cover broad topics or specific managerial techniques/challenges

Management Development Programmes-Courses/Workshops/Conferences/Full fledged degree or diplomas. Knowledge about latest developments in theory,exchaning notes with practicing managers from different backgrounds

In-house Universities-GE’s Center for Learning, McDonald’s University at Chicago, SAP & BASF have supplemented apprenticeship training with programmers at Univ for Applied Sciences at Ludwigshafen, Germany.

Self-learning through Reading, TV/Video, On-line programmes thru Tests, Distance learning, Business Simulations thru ABSEL,E-Training modules

Special Programmes for physically challenged, educationally/socially disadvantaged ,programmes emphasizing ethics and /or corporate culture

Management DevelopmentInternal and External Approaches

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From External /Internal sources like: Use of computers, concept of Adult-

Learning,”Knowlegge workers” rather than merely “skilled” workers, increasing focus on Services, Focus on Globalization

Kurt Levin's Field Force Theory-Driving and Restraining forces for Change maintain Equilibrium

Change process involves-unfreezing/changing/refreezing(stabilizing)

Managing Change

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Overcoming Resistance to Change

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Why??....Fear of unknown, possible adverse impact on career path,benefits,power.Also inertia, wrong perception through miscommunication/lack of it

Organizational Conflict-may be approached in a positive way as opportunity to clarify issues

Sources of Conflict-Interdependence of jobs, incompatible goals, competition for resources/opportunities, line vs. staff managers, production vs. marketing perspective, working style of managers

Managing Conflict-Thru focus on inter-relationships and /or Structural changes by emphasizing areas of agreement/common goals,compromising,behavioural modification,etc OR rearranging task/work locations, modifying and integrating objectives of divergent views,re-location

Resistance to Change & Organizational Conflict

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It is a Systematic, Integrated and Planned approach to improving organizational effectiveness through focus on problem solving (problems due to excess decentralization, poor communication, lack of co-operation)

Typical OD approaches may include Survey feedbacks, team building, job enrichment, changing job design

OD PROCESS-Problem Recognition(low morale,complaints,rising costs)-Organzational Diagnosis( Consultant thru interviews/q’nnaires/observations-analysis and feedback-Findings presented wrt org goals,inter-dept relations-Ranking of problems in order of importance-Change Strategy formulated-Interventions in the form of changes in structure, team for implementing cost reduction programmes, modified customer handling process-Measuring and evaluating progress periodically.

OD is a continuous process-planned, systematic and focused on change.

Organizational Development

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Peter Senge:”The Fifth Discipline”- “where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together”

The 5 component technologies are: Systems thinking, Personal mastery, Mental

models, Shared vision, and Team learning.

LEARNING ORGANIZATION

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A learning organization is an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behaviour to reflect new knowledge and insights.

New ideas: essential for learning-Sometimes they are created de novo, through flashes of insight or creativity; at other times they arrive from outside the organization or are communicated by knowledgeable insiders.

New ideas must be translated into action for Learning to be effective thru proper structures and practices

Learning Organization-2

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Learning organizations are skilled at five main activities:

Systematic problem solving, Experimentation with new approaches, Learning from their own experience and

past history, Learning from the experiences and best

practices of others, and Transferring knowledge quickly and

efficiently throughout the organization.

Learning Organizations-3

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Organizational learning can usually be traced through three overlapping stages:

1.Cognitive- Members of the organization are exposed to new ideas, expand their knowledge, and begin to think differently.

2.Behavioural- Employees begin to internalize new insights and alter their behaviour.

3.Performance improvement- with changes in behaviour leading to measurable improvements in results: superior quality, better delivery, increased market share, or other tangible gains.

Because cognitive and behavioural changes typically precede improvements in performance, a complete learning audit must include all three.

Learning Organization-4

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Management Processes-4 HRM