Chapter 5, 6, 7, 8 - staffing

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STAFFING

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Human Resource Management

The integration of all processes, programs, and systems in an organization that ensure staff are acquired and used in an effective way

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Human Resource Management (Contd.)

HR is multidisciplinary: It applies the disciplines of Economics (wages, markets, resources),Psychology (motivation, satisfaction), Sociology (organization structure, culture) and Law (min. wage, labor contracts)

What HR Professionals Do?

HR planning

Recruitment & Selection

Training and development

Compensation & Performance review

Labor relations

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Human Resource Planning

Assessing FutureHuman Resource

Needs

Assessing Current Human Resources

Developing aProgram to Meet

Needs

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Human Resource Planning

The process of systematically reviewing HR requirements to ensure that the required number of employees, with the required skills, are available when they are needed

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HR PlanningWe have found the gap, how do we fill this void?

Internal Labour Supply

Skill Inventory

Succession Planning

Replacement Planning– Inventory Chart

• Present & Future staffing situations• Helps in retention & expulsion strategy

External Labour Supply

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Job Analysis (Functional Job Analysis, Position analysis questionnaire)

A Basic Human Resource Management Tool

Tasks Responsibilities Duties

Job Analysis

Job Descriptions

Job Specifications

Knowledge Skills Abilities

Human Resource Planning

Recruitment

Selection

Training and Development

Performance Appraisal

Compensation and Benefits

Safety and Health

Employee and Labor Relations

Legal Considerations

Job Analysis for Teams

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DefinitionsJob - Consists of a group of tasks that must be performed for an organization to achieve its goals

Position - Collection of tasks and responsibilities performed by one person; there is a position for every individual in an organization

Job analysis - Systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization (functional job analysis , position analysis questionnaire)

Job description – document providing information regarding tasks, duties, and responsibilities of job

Job specification – minimum qualifications to perform a particular job

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RecruitmentProcess of locating,

identifying, and attracting

capable candidates

Can be for current or future needs

Critical activity for some corporations.

What sources do we use for recruitment

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Sources of Recruitment

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RecruitmentSources

InternalSearches

EmployeeReferrals

Voluntary Applicants

EmploymentAgencies Advertisements

SchoolPlacement

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SELECTION

A series of steps from initial applicant screening to final hiring of the new employee.

Selection process.Step 1 Completing application materials.Step 2 Conducting an interview.Step 3 Completing any necessary tests.Step 4 Doing a background investigation.Step 5 Deciding to hire or not to hire.

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Selection processStep 1 Completing application materials.

Gathering information regarding an applicant’s background and experiences.

Typical application materials.

Traditional application forms.

Résumés.

Sometimes tests may be included with application materials.

Step 2 Conducting an interview.

Typically used though they are subject to perceptual distortions.

Interviews can provide rough ideas concerning the person’s fit with

the job and the organization.

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Selection processStep 3 Completing any necessary tests.

Administered before or after the interview.Common examples of employment tests.

Cognitive, clerical, or mechanical aptitudes or abilities.Personality.

Step 4 Doing a background investigation.

Can be used early or late in selection process.

Background investigations include:

Basic level checks.

Reference checks.

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Selection processStep 5 Deciding to hire or not to hire.

Draws on information produced in preceding selection steps.

A job offer is made.

A physical examination may be required if it is relevant to job performance.

Negotiation of salary and/or benefits for some jobs.

Step 6 Socialization.

The final step in the staffing process.

Involves orienting new employees to:

The firm.

The work units in which they will be working.

The firm’s policies and procedures.

The firm’s organizational culture.

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Performance Appraisal

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Performance Appraisal

The identification, measurement, and management of human performance in organizations.

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Why Conduct Performance Appraisals?

Make decisions about that person's future with the organization

Identify training requirements

Employee improvement

Pay, promotion, and other personnel decisions

Research

Validation of selection techniques and criteria

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A Model of Performance Appraisal

Skills/Activities/Output

Performance Appraisal System

Reward/Training/Punishment

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Techniques for Evaluating Managers

Evaluation by superiorsEvaluation by colleagues

Peer ratings tend to be more favorable for career development than for promotion decisions

Self‑evaluationSelf‑ratings suffer from leniency

Subordinate evaluationEffective in developing leadershipLeads to improved performance

360 degree feedback (multi‑source)

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360° Feedback

The combination of peer, subordinate, and self-review

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Key Steps in Implementing 360° AppraisalTop management communicates the goals

Employees and managers are involved in the development of the appraisal criteria and process.

Employees are trained in giving & receiving feedback.

Employees are informed of the nature of the 360° appraisal instrument and process.

The 360° system undergoes pilot testing

Management continuously reinforces the goals of the 360° appraisal and is ready to change the process when necessary.

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Measurement Tools

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Relative and Absolute Judgment

An appraisal format that asks supervisors to compare an employee's performance to the performance of other employees doing the same job.

Relative Judgment

An appraisal format that asks supervisors to make judgments about an employee’s performance based solely on performance standards.

Absolute Judgment

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Rating MethodsPerformance rating scales

Supervisors indicate how or to what degree a worker possesses a relevant job characteristic

Ranking techniqueSupervisors list the workers in order from highest to lowest

Paired‑comparison techniqueCompares the performance of each worker with that of every other

person in the group

Forced choice techniqueRaters are presented with groups of descriptive statements and are

asked to select the phrase in each group that is most descriptive of the worker being evaluated

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Rating MethodsBehaviorally anchored rating scales (BARS)

Appraisers rate critical employee behavior

Critical‑incident behaviors are established

These behaviors are used as standards for appraising effectiveness

The BARS items can be scored objectively by indicating whether the employee displays that behavior

Behavioral observation scales (BOS)Appraisers rate the frequency of critical employee behaviors

The ratings are assigned on a five point scale

The evaluation yields a total score

Management by objectives (MBO)

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Appraising Managers as Managers

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Organizational Change

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Concept of Organizational Change

Defined as adoption of a new idea or behavior by an organization.

Organizations need to continuously adapt to new situations if they are to survive and prosper

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Planned and Unplanned Organizational Changes

Planned Changes• Changes in products and

services• Changes in administrative

systems• Changes in organizational

size or structure• Introduction of new

technologies• Advances in information

processing and communication

Planned Changes• Changes in products and

services• Changes in administrative

systems• Changes in organizational

size or structure• Introduction of new

technologies• Advances in information

processing and communication

Unplanned Changes• Changing employee

demographics• Performance gaps• Governmental regulations• Economic competition in the

global arena

Unplanned Changes• Changing employee

demographics• Performance gaps• Governmental regulations• Economic competition in the

global arena

OrganizationalChange

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Forces ForChange

Workforce

Competition

WorldPolitics

Technology

SocialTrends

EconomicShocks

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Resistance to Change - Forms

Overt and immediate

Voicing complaints, engaging in job actions

Implicit and deferred

Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism

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Resistance to Change

SelectiveInformationProcessing

Fear of the Unknown

Force ofHabit

Need forSecurity

Economic Factors

Individual

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Resistance to Change

Structural &Group Inertia

Limited Focus

Threat to establish resource allocation

Threat to Expertise

Threat to establish power relationship

Organization

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Education andCommunicationEducation and

Communication ParticipationParticipation

NegotiationNegotiation Facilitationand SupportFacilitation

and Support

CoercionCoercionManipulationand CooptationManipulation

and Cooptation

Overcoming Resistance to Change

Overcoming Resistance to Change

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Unfreezing Changing Refreezing

Lewin’s Three-Step Process

Organizational Change

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Unfreezing the Status QuoUnfreezing the Status Quo

Desired State

Status Quo

RestrainingForces

Driving Forces

Time

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Definition of OD

OD is a planned process of change in an organization’s culture through the utilization of behavioral science technology, research,

and theory.

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Organization Development is...

a systemwide application and transfer of behavioral science knowledge to the

planned development, improvement, and reinforcement of the strategies, structures,

and processes that lead to organization effectiveness.

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Organizational Development - The Premises

Respect for people

Trust and support

Power equalization

Confrontation

Participation

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OD Process

Diagnosis Intervention Evaluation

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OD Interventions

Intergroup development

Process consultation

Sensitivity training

Third Party Intervention

Survey feedback

Team building

Culture Change

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Manager DevelopmentOn the Job Training

Planned ProgressionJob RotationCreation of “assistant-to”Temporary promotionCommittees

Off the JobTrainingConferenceMDPsBusiness Simulations

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Organizational Conflicts

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Sources of Conflict

Competition for scarce resources

Time pressure

Unreasonable standards, policies, rules or procedures

Communication breakdowns

Personality clashes

Ambiguous or overlapping jurisdictions

Unrealized expectations

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Managing Conflicts

AvoidanceProblem solvingCompromiseForcingSmoothingStructural change

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Training & Development

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Training and Development (T&D)

Training - Designed to provide learners with the knowledge and skills needed for their present jobs – formal and informal

Development - Involves learning that goes beyond today's job – more long-term focus

Learning Organization – firms that recognize critical importance of continuous performance-related training and development an take appropriate action

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Factors Influencing T&D

Top management support Commitment from specialists and generalists Technological advances Organizational complexity Learning style

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The Training and Development (T&D) Process

Determine T&D Needs

Establish Specific Objectives

Select T&D Method(s)

Implement T&D Programs

Evaluate T&D Programs

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Determining Training and Development Needs

In order to compete effectively, firms must keep employees well trained.

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Establishing Training and Development Objectives

Desired end results

Clear and concise objectives must be formulated

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T&D Methods

Classroom Programs

Mentoring Coaching Role Playing Simulations

Distance Learning and Videoconferencing

E-learning On-the-Job

Training Job Rotation Internships

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Classroom Programs

Continue to be effective for many types of employee training

May incorporate some of other methods

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Mentoring

Approach to advising, coaching, and nurturing, for creating practical relationship to enhance individual career, personal, and professional growth and development

Mentor may be located elsewhere in organization or in another firm

Relationship may be formal or informal

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Coaching

Often considered responsibility of immediate boss

Provides assistance much as a mentor

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Role Playing Respond to specific problems they may

actually encounter in jobs Used to teach such skills as:

interviewing grievance handling performance appraisal reviews

conference leadership team problem solving communication

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Simulations

Training devices that model the real world or programs replicating tasks away from the job site

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Distance Learning and Videoconferencing

Interactive training Used to:

increase access to trainingensure consistency of instructionreduce cost of delivering T&D

programs

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E-Learning

Umbrella term

describing online instruction

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On-the-Job Training

Informal approach that permits employee to learn job tasks by actually performing them

Most commonly used T&D method No problem transferring what has been learned

to the task

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Job Rotation

Employees move from one job to another to broaden experience

Helps new employees understand variety of jobs

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Internships

Training approach where university students divide their time between attending classes and working for an organization

Excellent means of viewing potential permanent employee at work

Students are enabled to integrate theory with practice

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Management Development

All learning experiences resulting in upgrading of skills and knowledge needed in current and future managerial positions

Imperative managers keep up with latest developments in their fields while managing ever-changing workforce in a dynamic environment

Requires personal commitment of individual manager

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Reasons to Conduct Management Training Outside of the Company

An outside perspective New viewpoints Possibility of taking

executives out of work environment

Exposure to faculty experts and research

Broader vision

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Reasons to Conduct Management Training Inside of the Company

Training more specific to needs

Lower costs Less time Consistent, relevant material More control of content and

faculty

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Orientation

Initial T&D effort designed for employees

Strives to inform them about company, job and workgroup

On-boarding

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Organization Development

Survey feedback process

Quality circles Team building Sensitivity training

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Survey Feedback Description

Process of collecting data from organizational unit through use of questionnaires, interviews and other objective data

Can create working environments that lead to better working relationships, greater productivity and increased profitability

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Quality Circles

Groups of employees who voluntarily meet regularly with their supervisors to discuss problems

Investigate causes Recommend solutions

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Team Building

Conscious effort to develop effective workgroups

Uses self-directed teams Small group of employees

responsible for an entire work process

Members work together to improve their operation

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Laboratory/ Sensitivity / T-Group Training

Participants learn about themselves and how others perceive them

No agenda, leaders, authority, power positions

People learn through dialogue Participants encouraged to learn

about themselves and others in group

Also called T-group training

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Evaluating Human Resource Development

Ask participant’s opinions Determine extent of learning Will training change behavior? Have T&D objectives been

accomplished? Benchmarking Evaluation difficult, but necessary

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Directing & Controlling

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Introduction

Directing/Direction is a function of management performed by top level management in order to achieve organizational goals. It is very important and necessary function of management.

Management has to undertake various activities like, guide people, inspired and lead them as well as supervision of their activity is required in order to achieve desired results.

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Meaning and Definition

Direction consists of the process and techniques utilized in issuing instructions and making certain that operations are carried as originally planned.

“Directing involves determining the course, giving order and instruction and providing dynamic leadership” – Marshall

“Activating means and moving into action- supplying simulative power to the group”- G.R Terry

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Directing involves…..Telling people what is to be done and explaining how to do it.

Issuing instructions and orders to subordinates.

Inspiring them to contribute towards the achievement of objectives,

Supervising their activities;

Providing leadership and motivation

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ELEMENTS OF DIRECTION

Communication

Leading

Motivation

Supervision

Coordination

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PRINCIPLES OF DIRECTION

Harmony of Objectives

Unity of Command / Direction

Direct Supervision

Democratic Managerial Style

Follow Through

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TECHNIQUES OF DIRECTION

Consultative Direction

Free Rein Direction

Autocratic Direction

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SUPERVISION

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Supervision implies expert overseeing of subor dinates -at work in order to guide and regulate their efforts. Every manager has to supervise the work of his subordinates to see that they do their work as desired. But supervision is particularly important at the operat ing level of management or at the low-level management.

The supervisor is in direct personal contact with the workers and he acts as the link between workers and manage ment. He communicates the policies, plans and orders of management to the workers. He also brings workers' grievances, suggestions and appeals to the notice of management. Effective supervision is essential for the accomplishment of desired goals.

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The direction of people at work is the most difficult of all production related tasks. Supervision means constantly functioning in a state of flux and ambiguity and few people feel satisfaction from being a supervisor. The reason this is worth mentioning is because many new supervisors feel that something is "wrong" when they are constantly faced with problems relating to their workforce. This state of flux and ambiguity is normal to supervision and success is measured in percentages rather than absolutes.

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All work requires the coordination of effort. We accomplish this by giving workers assigned tasks and assigned time in which they are to accomplish these tasks. But just giving instructions is not enough. You must give clear, specific instructions on what is to be done, monitor the worker in the course of their efforts and hold them accountable for specific results. These three elements; specific instructions on what is to be done, monitoring them periodically to make sure it is being done, and making the employee accountable for the results are the core of the supervisory process. It is the responsibility of the supervisor to do this. Workers who do not receive good instruction and direction; who are allowed to do work incorrectly without correction and who do not have a review of their performance have not had proper supervision and hence have not been allowed to perform properly.

The purpose of supervision is to ensure that subordinates perform their tasks according to prescribed procedures and as efficiently as possible.

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In Supervising

1. Set realistic expectations. The expectations that are often left unstated need to be openly discussed.

2. Establish clear goals. Goal setting gives purpose and direction to the work of the individual subordinates as well as to the manager. It ensures alignment to corporate strategy.

3. Communicate. Successful communication is a learned process that must accommodate individual needs. As the boss, you establish the norms. Solicit feedback, encourage discussion (especially alternate points of view), and be accessible.

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4. Support. A manager is not made by title alone. Anyone new to a supervisory position needs to develop certain professional skills. Your mentoring will be the key to success.

5. Be the Model Manager . Lead the way! Have others do as you say and do.

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COORDINATION

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What's Coordination?

Co-ordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all the other functions of management.

According to Mooney and Reelay, “Co-ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals”.

According to Charles Worth, “Coordination is the integration of several parts into an orderly hole to achieve the purpose of understanding”.

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Management seeks to achieve co-ordination through its basic functions of planning, organizing, staffing, directing and controlling. That is why, co-ordination is not a separate function of management because achieving of harmony between individuals efforts towards achievement of group goals is a key to success of management. Co-ordination is the essence of management and is implicit and inherent in all functions of management.

A manager can be compared to an orchestra conductor since both of them have to create rhythm and unity in the activities of group members.

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CONTROL

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Organizational ControlOrganizational Control

Managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals

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Organizational Control

Managers must monitor and evaluate:Is the firm efficiently converting inputs into outputs?

Are units of inputs and outputs measured accurately?

Is product quality improving?Is the firm’s quality competitive with other firms?

Are employees responsive to customers?Are customers satisfied with the services offered?

Are our managers innovative in outlook?Does the control system encourage risk-taking?

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Control Systems

Control Systems Formal, target-setting, monitoring, evaluation and feedback systems that provide managers with information about whether the organization’s strategy and structure are working efficiently and effectively.

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Control Systems

A good control system should:

be flexible so managers can respond as needed.

provide accurate information about the organization.

provide information in a timely manner.

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Three Types of Control

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Types of Control

Feedforward ControlsUsed to anticipate problems before they arise so that problems do not occur later during the conversion processGiving stringent product specifications to suppliers in advanceIT can be used to keep in contact with suppliers and to monitor their progress

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Types of Control

Concurrent Controls

Give managers immediate feedback on how efficiently inputs are being transformed into outputs

Allows managers to correct problems as they arise

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Types of Control Feedback Controls

Used to provide information at the output stage about customers’ reactions to goods and services so that corrective action can be taken if necessary

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Control Process Steps

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The Control Process1. Establish standards of performance, goals, or

targets against which performance is to be evaluated.

Managers at each organizational level need to set their own standards.

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The Control Process2. Measure actual performance

Managers can measure outputs resulting from worker behavior or they can measure the behavior themselves.

The more non-routine the task, the harder it is to measure behavior or outputs

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The Control Process

3. Compare actual performance against chosen standards of performance

Managers evaluate whether – and to what extent – performance deviates from the standards of performance chosen in step 1

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The Control Process

4. Evaluate result and initiate corrective action if the standard is not being achieved

If managers decide that the level of performance is unacceptable, they must try to change the way work activities are performed to solve the problem

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Three Organizational Control Systems

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Financial Measures of PerformanceProfit Ratios –

measure how efficiently managers are using the organization’s resources to generate profits

Return on Investment (ROI) – most commonly used financial performance measure organization’s net income before taxes divided by its total assets

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Financial Measures of Performance

Operating margin

calculated by dividing a companies operating profit by sales revenue

Provides managers with information about how efficiently an organization is utilizing its resources

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Financial Measures of Performance

Liquidity ratios

measure how well managers have protected organizational resources to be able to meet short-term obligations

Leverage ratios

measure the degree to which managers use debt or equity to finance ongoing operations

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Financial Measures of Performance

Activity ratios provide measures of how well managers are creating value from organizational assets

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Output ControlOrganizational Goals

Each division within the firm is given specific goals that must be met in order to attain overall organizational goals.

Goals should be set appropriately so that managers are motivated to accomplish them

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Organization-Wide Goal Setting

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Output ControlOperating Budgets

Blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently.

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Effective Output Control

1. Objective financial measures

2. Challenging goals and performance standards

3. Appropriate operating budgets

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Problems with Output ControlManagers must create output standards that motivate at all levels

Should not cause managers to behave in inappropriate ways to achieve organizational goals

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Behavior ControlDirect supervision

managers who actively monitor and observe the behavior of their subordinates

Teach subordinates appropriate behaviors

Intervene to take corrective action

Most immediate and potent form of behavioral control

Can be an effective way of motivating employees

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Problems with Direct Supervision

Very expensive because a manager can personally manage only a relatively small number of subordinates effectively

Can demotivate subordinates if they feel that they are under such close scrutiny that they are not free to make their own decisions

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MBO

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Management by Objectives

Management by Objectives (MBO)

formal system of evaluating subordinates for their ability to achieve specific organizational goals or performance standards and to meet operating budgets

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Management by Objectives

1. Specific goals and objectives are established at each level of the organization

2. Managers and their subordinates together determine the subordinates’ goals

3. Managers and their subordinates periodically review the subordinates’ progress toward meeting goals

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Bureaucratic ControlBureaucratic Control

Control through a system of rules and standard operating procedures (SOPs) that shapes and regulates the behavior of divisions, functions, and individuals.

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Bureaucratic ControlProblems with Bureaucratic Control

Rules easier to make than than discarding them, leading to bureaucratic “red tape” and slowing organizational reaction times to problems.

Firms become too standardized and lose flexibility to learn, to create new ideas, and solve to new problems.

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Clan ControlClan Control

The control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations.