Principles of Hr Management 206

8/8/2019 Principles of Hr Management 206

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Principles of

HR Management


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AgendaAgenda

1.1. HR Management : An OverviewHR Management : An Overview

2.2. HR Planning and RecruitmentHR Planning and Recruitment

3.3. Employee SelectionEmployee Selection

4.4. Training and DevelopmentTraining and Development

5.5. Performance ManagementPerformance Management

6.6. Career ManagementCareer Management


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Human ResourceHuman Resource

Management : An OverviewManagement : An Overview


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HR Management CycleHR Management Cycle

Recruitment &

Selection

Training &

Development

Performance

Management

Reward

Management

Career

Management


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HR Strategy and Business ResultHR Strategy and Business Result

Recruitment &

Selection

Training &Development

PerformanceManagement

Reward

Management

Career

Management

HR

STRATEGY

BusinessBusiness

StrategyStrategy

BusinessBusiness

ResultResult


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Manpower Planning &

Employee Recruitment


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Manpower PlanningManpower Planning

Company StrategyCompany Strategy

What staff do weneed to do the

job?

What staff isavailable within

our

organization?

Is there a

match?

If not, what type of people

do we need, and how

should we recruit them?

Job Analysis

Performanceappraisal

Company data

banks

Training

Employee

management and

developmentWhat is impacton wage and

salary program?


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Manpower PlanningManpower Planning

The financialThe financial

resourcesresources

available toavailable toyouryour

organizationorganization

Factors in Forecasting PersonnelFactors in Forecasting Personnel

RequirementsRequirements

ProjectedProjected

turnover (as aturnover (as a

result ofresult ofresignation andresignation and

terminations)terminations)

Quality and nature ofQuality and nature of

your employees (inyour employees (in

relation to what yourelation to what yousee as the changingsee as the changing

need of yourneed of your

organization)organization)


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Technique to Determine Number of RecruitsTechnique to Determine Number of Recruits

Study of a firms past employment needs

over a period of years to predict future

needs

Trend

Analysis

Ratio

Analysis

A forecasting technique for

determining future staff needs by using

ratios between sales volume and

number of employees needed


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Recruitment from External ResourcesRecruitment from External Resources

Recruiting new staff from external sources will be influenced

by several factors, namely :

When the economic conditions are

relatively difficult, there will usually be

an oversupply, or the number of

applicants will much higher than the

demand. In such a case, the company

will find it relatively easier to select newemployees from the large number of

applicants.

Macro-

Economic

Conditions

of a Nation


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When the sector is one that is

considered a rare sector, the company

will have more difficulty in recruiting

staff for this sector. For example,

computer technology, or cellular

engineering.

Availability

of Manpower

in Desired

Sectors



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It will tend to be easier for a company

to find and recruit the best people if

the company has a good reputation,

therefore the best fresh graduates will

flock to apply to the company.

Example : Google, McKinsey or

Microsoft.

Company

Reputation



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Some employers use a recruiting yield pyramid to

determine the number of applicants they must generate

to hire the required number of new employees.

Example of Recruitment Curve:

1200 - Leads generated

200 - Candidates invited

150 - Candidates interviewed

100 - Offers made

50 - New hires

Recruitment Yield PyramidRecruitment Yield Pyramid


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Recruitment SourcesRecruitment Sources

Advertising (newspaper,

magazine, internet)

College

Recruitment

Recruitment Agent(headhunter)

RecruitmentRecruitmentSourcesSources


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Employee Selection


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Basic Concept of Selection TestsBasic Concept of Selection Tests

The quality of an employee selection test is determined by

three main factors, namely :

1.1. Criterion Validity :Criterion Validity :A type of validity based on showing

that scores on the test (predictors) are related to job

performance (criterion).

2.2. Content Validity :Content Validity :A test that is content valid is one in

which the test contains a fair sample of the tasks and

skills actually needed for the job in question.

3.3. ReliabilityReliability : The consistency of scores obtained by the

same person when retested with identical or equivalent

test.


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Some Types of Selection TestSome Types of Selection Test

1. Cognitive Ability Test

2. Personality Test

3. Interview


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Cognitive Ability TestCognitive Ability Test

Cognitive Abilities Tests: Paper and pencil or

individualized assessment measures of an

individual's general mental ability or intelligence.


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Advantages of Cognitive Ability TestAdvantages of Cognitive Ability Test

highly reliable

verbal reasoning and numerical tests have shown high

validity for a wide range of jobs

the validity rises with increasing complexity of the job

may be administered in group settings where manyapplicants can be tested at the same time

scoring of the tests may be completed by computer

scanning equipment

lower cost than personality tests


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Disadvantages of Cognitive Ability TestDisadvantages of Cognitive Ability Test

non-minorities typically score one standard deviationabove minorities which may result in adverse impact

depending on how the scores are used in the selection

process

differences between males and females in abilities (e.g.,knowledge of mathematics) may negatively impact the

scores of female applicants


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Personality TestPersonality Test

Personality Tests:A selectionprocedure measurethe

personalitycharacteristicsofapplicantsthatare

relatedtofuture jobperformance.

Personality tests typically measure one or more of

five personality dimensions: extroversion,extroversion,

emotional stability, agreeableness,emotional stability, agreeableness,

conscientiousness, and openness to experience.conscientiousness, and openness to experience.


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Advantages of Personality TestAdvantages of Personality Test

can result in lower turnover due if applicants are

selected for traits that are highly correlated with

employees who have high longevity within the

organization

can reveal more information about applicant's abilities

and interests

can identify interpersonal traits that may be needed for

certain jobs


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Disadvantages of Personality TestDisadvantages of Personality Test

difficult to measure personality traits that may not be welldefined

responses by applicant may be altered by applicant's

desire to respond in a way they feel would result in their

selection lack of diversity if all selected applicants have same

personality traits

lack of evidence to support validity of use of personality

tests


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InterviewInterview

Interviews: A selection procedure designed to predict

future job performance on the basis of applicants'

oral responses to oral inquiries.


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Advantages of InterviewAdvantages of Interview

useful for determining if the applicant has requisitecommunicative or social skills which may be necessary for

the job

can assess the applicant's job knowledge

can be used for selection among equally qualifiedapplicants

enables the supervisor and/or co-workers to determine if

there is compatibility between the applicant and the

employees allows the applicant to ask questions that may reveal

additional information useful for making a selection

decision


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Disadvantages of InterviewDisadvantages of Interview

subjective evaluations are made decisions tend to be made within the first few minutes of

the interview with the remainder of the interview used to

validate or justify the original decision

interviewers form stereotypes concerning thecharacteristics required for success on the job

research has shown disproportionate rates of selection

between minority and non-minority members using

interviews negative information seems to be given more weight

not as reliable as tests


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Training & Development


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Training

Need

Analysis

Training

ObjectivesTraining

Delivery

Training

Evaluation

Training ProcessTraining Process

What are

the training

needs forthis person

and/or job?

Objective

should be

measurableand

observable

Techniques

include on-

the-job-training,

action

learning, etc.

Measure

reaction,

learning,behavior,

and results


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Assessing Training NeedsAssessing Training Needs

Task Analysis A detailed analysis of a job to

identify the skills required, so

that an appropriate training

program can be instituted

Competency

Analysis

Careful study of competency level

to identify a deficiency and then

correct it with a training program, orsome other development

intervention.


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Competency AnalysisCompetency Analysis

Required

competency

level for certain

position

Competency

Gap

Competency

Assessment

Current

competency

level of the

employee

Training andTraining and

DevelopmentDevelopment

ProgramProgram


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Competency Profile Per PositionCompetency Profile Per Position

1 2 3

Communication Skills

Public Speaking

Leadership

Training Need Analysis

Material Development

Training Evaluation

Communication Skills

Interview Skills

Analytical Thinking

Understand Selection Tools

Teamwork

Customer Orientation

ecr itment

pervisor

e ire Level

e ire CompetencyPosition

r inin

evelopment

M n er

Score Required

Competency Type


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Enhance Training EffectivenessEnhance Training Effectiveness

Make theMake the

materialmaterial

meaningfulmeaningful

Provide forProvide for

transfer totransfer to

learninglearning

MotivateMotivate

the traineethe trainee

TrainingTraining

EffectivenessEffectiveness


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Make theMake the

materialmaterial

meaningfulmeaningful

At the start of training, provide the

trainees with a birds-eye view of the

material to be presented. Knowing the

overall picture facilitates learning.

Use a variety of familiar examples when

presenting material

Organize the material so that it is

presented in a logical manner and in

meaningful units

Try to use terms and concepts that are

already familiar to trainees

Use as many visual aids as possible


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Provide forProvide for

transfer totransfer to

learninglearning

Maximize similarity between the training

situation and the work situation

Provide adequate training practice

Identify each feature of the step in the

process


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MotivateMotivate

the traineethe trainee

People learn best by doing. Try to

provide as much realistic practice as

possible

Trainees learn best when correct

response on their part are immediately

reinforced.

Trainees learn best when they learn at

their own pace. If possible, let trainees

pace themselves.


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Type of Training ProgramType of Training Program

Formal courseFormal course

OFF THE JOBOFF THE JOB

SimulationSimulation

Wilderness TripWilderness Trip

Does not interfere with job

Provides for fact learning

Helps transfer of learning

Creates lifelike situations

uilds teams

uilds self-esteem


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Type of Training ProgramType of Training Program

Job instructionJob instruction

trainingtraining

ON THE JOBON THE JOB

ApprenticeshipApprenticeship

trainingtraining

Job rotationJob rotation

MentoringMentoring

Facilitates transfer of learning

Does not require separate facilities

Does not interfere with real job performance

Provides extensive training

Gives exposure to many jobs

Allows real learning

Is informal

Is integrated into job


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Evaluation of Training EffectivenessEvaluation of Training Effectiveness

Level 1 - Reaction

Level 2 - Learning

Level 3 ehavior

Application

Level 4 usiness

Impact

Four evelsFour evels

of Trainingof Training

EffectivenessEffectiveness


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Test the trainees to determine if

they learned the principles,

skills, and facts they were tolearn.

Evaluate trainees reactions to

the program. Did they like the

program? Did they think it

worthwhile?

evel 1evel 1 --

ReactionReaction

evel 2evel 2 --

earningearning


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What final results were achieved in terms of the

training objectives previously set? Did the number

of customer complaints about employee drop? Did

the reject rate improve? Was turnover reduced,

and so forth.

Ask whether the trainees behavior on the job

changed because of the training program. For

example, are employees in the stores complaint

department more courteous toward disgruntled

customers than previously?

evel 3evel 3

BehaviorBehavior

ApplicationApplication

evel 4evel 4

BusinessBusiness

ImpactImpact


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Employee

Performance Management


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Why Performance Appraisal?Why Performance Appraisal?

Appraisal provide information upon which promotion and

salary decision can be made.

Appraisal provide an opportunity for a manager and

his/her subordinates to sit down and review thesubordinates work-related behavior, and then develop a

plan for corrective action.

Appraisal provide a good opportunity to review thepersons career plans in light of his/her exhibited

strengths and weaknesses.


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Performance Management CyclePerformance Management Cycle

Performance

Planning

(Setting

Performance

Targets)

Regular

Review and

Monitoring

Feed backFeed back

CorrectiveCorrective

ActionAction

PerformanceAppraisal and

Evaluation

Training &

DevelopmentPlan

Salary/Bonus

Adjustment

Career

Development


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Performance Management CyclePerformance Management Cycle

DefiningDefiningPerformancePerformance

Standard/Standard/

TargetsTargets

AppraisingAppraising

PerformancePerformance

ProvidingProviding

Feedback forFeedback for


1.1. Defining the performanceDefining the performance standardsmeans making sure that you and your

subordinate agree on his/her duties and

targets that you expect

2.2. Appraising performanceAppraising performance means

comparing your subordinates actual

performance to the standard/targets set

in step one.

3.3. Providing feedbackProviding feedback means discussing

plans for any development that is

required.


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Problems in Performance AppraisalProblems in Performance Appraisal

ack ofack of

standardsstandards

Irrelevant orIrrelevant or

subjectivesubjective

standardsstandards

PoorPoor

measures ofmeasures of

performanceperformance

PoorPoor

feedback tofeedback to

employeeemployee

NegativeNegative

communicationcommunication

Failure toFailure to

applyapply

evaluationevaluation

datadata

Common Performance Evaluation ProblemsCommon Performance Evaluation Problems


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Bias in the Appraisal ProcessBias in the Appraisal Process

HaloHalo

EffectEffect

The "halo" effect occurs when a supervisors

rating of a subordinates on one trait biases the

rating of that person on other traits

CentralCentral

TendencyTendency

A tendency to rate all employees the same

way, such as rating them all average


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LeniencyLeniency

The problem that occurs when a supervisory

has a tendency to rate all subordinates either

high or low

BiasBiasThe tendency to allow individual differences

such as age, race, and sec affect the appraisal

rates these employees receives.

Bias in the Appraisal ProcessBias in the Appraisal Process


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Performance

appraisal

elements

has two main

categories: 2. Performance Result:

Hard or quantitative aspects

of performance (result)

1. Competencies: It

represents soft or qualitative

aspects of performance

(process)

Performance Appraisal ElementPerformance Appraisal Element


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1.1. Competencies ScoreCompetencies Score

2. Performance Result2. Performance Result

ScoreScore

Overall ScoreOverall Score

Will determine the employees

career movement, and also

the reward to be earned

Performance Appraisal ElementPerformance Appraisal Element


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Element # 1 : CompetenciesElement # 1 : Competencies

Basic Intermediate Advanced Expert

Actively listens, and clarifies

understanding where required, in

order to learn from others.







Actively listens, and clarifies understanding

where required, in order to learn from others.

Empathise with audience and

formulates messages accordingly.





Empathise with audience and formulates

messages accordingly.

Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information.

Responds promptly to other team

members needs.

alances complementary strengths

in teams and seeks diverse

contributions and perspectives.

Actively builds internal and external

networks.

uilds internal and external networks and uses

them to efficiently to create value.

Involves teams in decisions that

effect them.

Uses cross functional teams to draw

upon skills and knowledge

throughout the organization.

Uses cross functional teams to draw upon

skills and knowledge throughout the

organization.

Encourages co-operation rather than

competition within the team and with

key stakeholders.

uilds and maintains relationships

across The company.

Drives and leads key relationship groups

across The company.

Manages alliance relationships through

complex issues such as points of competing

interest.

Ensures events and systems, eg IT, for

collaboration are in place and used.

Draws upon the full range of relationships

(internal, external, cross The company) at

critical points in marketing and negotiations.

Competency : CollaborationCompetency : Collaboration


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1 Conduct an assessment of the All employees submit their performance assessment form

employee's performance on time

2 Improve the system for Target : completed 100 %

performance assessment in November 2008

3 Conduct training activities Target : to conduct 6 training modules

in one year

4 Carry out on the job training Target : 90 % of the total employees

activities who attend the training

experience an increasein skill and knowledge

El # 2 : Performance Resul sElement # 2 : Performance Results

arget s oul be measurable andTarget s ould be measurable and

specificspecific


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Employee Career

Management


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Career Planning and DevelopmentCareer Planning and Development

Providing employeesProviding employees

the assistance to formthe assistance to form

realistic career goalsrealistic career goals

and the opportunitiesand the opportunities

to realize themto realize them

CareerCareer

Planning &Planning &



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Entry LevelEntry Level

First LineFirst Line

MiddleMiddle

ManagementManagement

SeniorSenior


TopTop


Join Company 22 years old

Supervisor/Ass. Manager 26 - 29 years old

Managers 29 - 35 years old

GM/Senior Managers 35 - 45 years old

CEO/ OD 45 - 55 years old

Typical Career movementTypical Career movement


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Career StageCareer Stage

Trial Stage The period from about age 25 to 30 during

which the person determines whether or

not the chosen field is suitable and if it is

not, attempts to change it.

Stabilization

Stage

The period, roughly from age 30 to 40,

during which occupational goals are set

and more explicit career planning is made

to determine the sequence for

accomplishing goals


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Mid career

Crisis Stage

The period occurring between the mid-

thirties and mid-forties during which people

often make a major reassessment of their

progress relative to their original career

ambitions and goals

Maintenance

Stage

The period form about ages 45 to 65 during

which the person secures his or her place

in the world of work



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Decline Stage The period during which many people are

faced with the prospect of having to accept

reduced levels of power and responsibility.



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CareerAnchorsCareerAnchors

CareerAnchor :

A concern or value that someone will not give up if

choice has to be made

Career anchors, as their name implies, are the

pivots around which a persons career swings; a

person becomes conscious of them as a result of

learning about his or her talents and abilities.


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Five CareerAnchorsFive CareerAnchors

Technical/Technical/

FunctionalFunctional

CareerAnchorCareerAnchor

ManagerialManagerial

Competence as aCompetence as a


Creativity as aCreativity as a


Autonomy andAutonomy and

Independence asIndependence as


Security as aSecurity as a



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Technical/Technical/

FunctionalFunctional


People who have a strong

technical/functional career anchor

tend to avoid decisions that would

drive them toward general

management.

Instead, they make decisions that will

enable them to remain and grow in

their chosen technical or functional

field


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ManagerialManagerial

CompetenceCompetence

People who show strong motivation

to become managers

Their career experience enables

them to believe that they have the

skills and values necessary to rise to

such general management position


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CreativityCreativity People who go on to become

successful entrepreneurs

These people seem to have a need

to build or create something that is

entirely their own product a product

or process that bears their name, a

company of their own, or a personal

fortune that reflects their

accomplishments.


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Autonomy andAutonomy and

IndependenceIndependence

People who are driven by the need to

be on their own, free from the

dependence that can arise when a

person elects to work in a large

organization.

Some of these people decide to

become consultants, working either

alone or as part of relatively small

firm. Others choose to become

professors, free-lance writers, or

proprietors of a small retail business.


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SecuritySecurity People who are mostly concern with

long-run career stability and job

security.

They seem willing to do what is

required to maintain job security, a

decent income, and a stable future in

the form of a good retirement

program and benefits.

Career Management and the FirstCareer Management and the First


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AssignmentAssignment

Factors to keep in mind about the important firstassignment, include :

1. Avoid reality shock (reality shock refers to the result

of a period that may occur at the initial career entry

when the new employees high job expectationsconfront the reality of boring, unchallenging jobs.

2. Provide challenging initial jobs

3. Provide realistic job preview in recruiting

4. e demanding



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AssignmentAssignment

5. Provide periodic job rotation

6. Provide career-oriented performance appraisals

7. Encourage career-planning activities


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Recommended Further ReadingsRecommended Further Readings

1. Gary Dessler, Humanresource Management, Prentice Hall

2. Susan Jackson and Randall Schuler, ManagingHuman Resource : A

Partnership Perspective,South-Western College Publishing


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Principles of Hr Management 206