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Module sevenModule seven

Human resources managementHuman resources management

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Th e Five components of HRMTh e Five components of HRM

Recruitment&

selection

Training&Development

Performanceappraisal

&feedback

Pay&

Benefits

Labor relations

Each componentof an HRM systeminfluences theother, and all fivemust fit together

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Legal environment of HRMLegal environment of HRM

Eff ectivelyEff ectively managingmanaging humanhuman resourcesresources isis aacomplexcomplex understandingunderstanding f orf or managersmanagers..

TheThe local,local, state,state, nationalnational lawslaws andandregulationsregulations thatthat managersmanagers havehave toto taketake intointoconsiderationconsideration addadd toto thethe complexitycomplexity o fof

HRMHRM

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Human resource planningHuman resource planning

ManagersManagers havehave toto f orecastf orecast theirtheir currentcurrent && fu t u refu t u reneedsneeds f orf or h u manhu man reso u rcesreso u rces..C u rrentC u rrent H u manHu man Resou rcesResou rces::

AreAre thethe employeesemployees anan organizationorganization needsneeds todaytoday totoprovideprovide highhigh q u alityqu ality goalsgoals && servicesservices totocu stomerscu stomers..

F u t u reF u t u re H u manHu man Resou rcesResou rces::AreAre thethe employeesemployees thatthat organizationorganization willwill needneed atat

somesome laterlater datedate toto achieveachieve itsits longerlonger termterm goalsgoals..

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AsAs partpart o fof humanhuman resourceresource planning,planning,managermanager mustmust makemake bothboth

DemandDemand f orecastsf orecastsSupplySupply f orecastsf orecasts

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D emand forecastsD emand forecasts

EstimateEstimate thethe quali f icationsqualif ications && numbernumber o fofemployeesemployees anan organizationorganization willwill needneed toto

achieveachieve itsits goalsgoals && strategiesstrategies

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Supply forecastsSupply forecasts

EstimateEstimate thethe availabilityavailability && qualif icationsqualif ications o fofcurrentcurrent employeesemployees nownow andand inin thethe f uturef uture..

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AsAs aa resultresult o fof humanhuman resourceresource planning,planning, managersmanagersdecidedecide toto OUTSOURC EOUTSOURC E toto f illf ill somesome ofof theirtheir humanhumanresourcesresources needsneeds.. InsteadInstead o fof REC RUITINGREC RUITING &&SELEC TINGSELEC TING employeesemployees toto produceproduce (goods(goods //services),services), managersmanagers contractcontract withwith peoplepeople whowho arearenotnot membersmembers o fof theirtheir organizationorganization toto produceproduce(goods(goods // services)services)

O rg.O rg.

O utsourceO utsource

Recruiting &Recruiting &selectingselecting

ProduceProduce

(goods / services)(goods / services)

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Reasons t h at lead HR planning Managers toReasons t h at lead HR planning Managers tooutsourceoutsource

ThereThere areare twotwo reasonsreasons::FlexibilityFlexibility..

CostCost..

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OutsourcingOutsourcing cancan bebe usedused f orf or f unctionalf unctionalactivitiesactivities suchsuch asas ::

Af terAf ter salessales servicesservices..LegalLegal workwork..

ManagementManagement o fof In f ormationIn f ormation SystemsSystems..

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D isadvantages of outsourcingD isadvantages of outsourcing

WhenWhen workwork isis outsourcedoutsourced mangermanger maymay loselosesomesome controlcontrol overover qualityquality o fof goodsgoods //servicesservices..IndividualsIndividuals per f ormingper f orming outsourcedoutsourced workworkhavehave lessless knowledgeknowledge ofof organizationalorganizationalpracticespractices / / proceduresprocedures / / goalsgoals //commitmentcommitment toto thethe organizationorganization thanthanregularregular employeesemployees..UnionsUnions resistresist outsourcingoutsourcing..

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J ob analysisJ ob analysis

IsIs thethe secondsecond importantimportant activityactivity thatthatmanagersmanagers needneed toto undertakeundertake priorprior toto

recruitmentrecruitment andand selectionselection..JobJob analysisanalysis isis aa processprocess o fof identi f yingidenti f ying

JobJob descriptiondescription

JobJob speci f icationspeci f ication..

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Job analysis

Jobdescription

Jobspecifications

TasksTasks DutiesDuties responsibilitiesresponsibilities AbilitiesAbilitiesskillsskillsknowledgeknowledge

Makes upthe job

Needed toperformthe job

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OnceOnce managersmanagers havehave completedcompleted1.1. HumanHuman resourceresource planningplanning &&

2.2. JobJob analysisanalysis f orf or allall jobs jobs inin anan organizationorganization..TheyThey willwill knowknow thethe humanhuman resourceresource needsneeds &&

jobs jobs toto f illf ill..

AtAt thisthis point,point, recruitmentrecruitment && selectionselection cancanbeginbegin..

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Ex ternal and internal recruitmentEx ternal and internal recruitment

RecruitmentRecruitment isis whatwhat managersmanagers dodo totodevelopdevelop aa poolpool ofof qualif iedqualif ied candidatescandidates f orf or

openopen positionspositions..TheyThey generallygenerally useuse 22 typestypes o fof recruitingrecruiting(external(external / / internal)internal)

ExternalExternal recruitingrecruiting..InternalInternal recruitingrecruiting..

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Ex ternal recruitingEx ternal recruiting

ManagersManagers looklook outsideoutside thethe organizationorganization f orf orpeoplepeople whowho havehave notnot workedworked f orf or thetheorganizationorganization previouslypreviously..

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D isadvantages of e x ternal recruitingD isadvantages of e x ternal recruiting

HighHigh costcost o fof externalexternal recruitmentrecruitment. .EmployeesEmployees recruitedrecruited externallyexternally havehave lacklack

knowledgeknowledge aboutabout thethe innerinner workingsworkings ofof thetheorganizationorganization && needneed toto receivereceive moremoretrainingtraining thanthan thosethose recruitedrecruited internallyinternally..

UncertaintyUncertainty aboutabout thethe goodgood performanceper

formanceofof thethe employeesemployees thatthat areare recruitedrecruited

externallyexternally. .

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Internal recruitingInternal recruiting

ManagersManagers turnturn toto existingexisting employeesemployees toto f illf illopenopen positionspositions..

EmployeesEmployees recruitedrecruited internallyinternally areare eithereitherseekingseeking laterallateral movesmoves (job(job changeschanges withwith nonomajormajor changeschanges inin responsibilityresponsibility oror

authority)authority) oror promotionspromotions..

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A dvantages of internal recruitingA dvantages of internal recruiting

InternalInternal applicantsapplicants areare alreadyalready f amiliarf amiliar withwith thetheorganizationorganization (including(including itsits goals,goals, structure,structure,culture,culture, rules,rules,))ManagersManagers alreadyalready knowknow candidatescandidates (skills,(skills,behavior,behavior,))InternalInternal recruitingrecruiting boostboost levelslevels ofof employeeemployee

(motivation,(motivation, morale)morale)InternalInternal recruitingrecruiting isis lessless timetime consumingconsuming && lesslessexpensiveexpensive..

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D isadvantages of internal recruitingD isadvantages of internal recruiting

AA limitedlimited poolpool ofof candidatescandidates

TheThe organizationorganization doesntdoesnt havehave suitablesuitable

internalinternal candidatescandidates. .

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W h y do managers rely on e x ternal recruiting? W h y do managers rely on e x ternal recruiting?

OrganizationOrganization doesntdoesnt havehave suitablesuitable internalinternalcandidatescandidates. .

Sometimes,Sometimes, eveneven whenwhen suitablesuitable internalinternal candidatescandidatesareare available,available, externalexternal recruitingrecruiting isis pre f erredpre f erred totof indf ind bestbest candidatescandidates oror toto bringbring newnew ideasideas andandapproachesapproaches toto thethe organizationorganization..

WhenWhen organizationsorganizations areare inin troubletrouble andand per f ormingper f ormingpoorly,poorly, externalexternal recruitingrecruiting isis importantimportant toto bringbring ininmanagerialmanagerial talenttalent withwith aa f reshf resh approachapproach..

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Selection ProcessSelection Process

OnceOnce managersmanagers developdevelop poolpool ofof applicantsapplicants f orf or openopenpositionposition throughthrough thethe recruitmentrecruitment processprocess..TheyThey needneed toto f indf ind whetherwhether eacheach applicantapplicant isis

qualif iedqualif ied f orf or thethe positionposition andand toto bebe aa goodgoodper f ormerper f ormer..I fI f moremore thanthan oneone applicantapplicant meetsmeets thesethese 22conditions,conditions, managermanager mustmust determinedetermine whichwhich

applicantsapplicants areare betterbetter per f ormersper f ormers thanthan othersothers. .TheyThey havehave severalseveral selectionselection toolstools toto helphelp themthem toto

sortsort outout job job applicantsapplicants..

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Selection T oolsSelection T ools

Backgroundinformation

Performancetests.

Interviews References

Paper andPencil test

Physicalability tests

SELECTIO N

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2 . T raining & development2 . T raining & development

TrainingTraining f ocusesf ocuses onon teachingteaching organizationalorganizationalmembersmembers howhow toto per f ormper f orm theirtheir job job && helphelp

themthem toto acquireacquire thethe knowledgeknowledge && skillsskills theytheyneedneed toto bebe e ff ectiveeff ective per f ormersper f ormers..

DevelopmentDevelopment f ocusesf ocuses onon buildingbuilding

organizationalorganizational membersmembers knowledgeknowledge && skillsskills..

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NEEDS ASSESSMENT

Training Development

O n the job

training

Classroominstruction

Classroominstruction

O n the job

training

Variedwork experience

Formaleducation

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T ypes of trainingT ypes of training

ClassClass roomroom instructionsinstructions

OnOn thethe job job trainingtraining

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C lassroom instructionsC lassroom instructions

EmployeesEmployees acquireacquire knowledgeknowledge andand skillsskills inin aaclassroomclassroom settingsetting. .

TheThe instructioninstruction (within(within thethe organizationorganization //outsideoutside it)it) ii..ee.. whenwhen employeesemployees areareencouragedencouraged toto taketake coursescourses atat locallocal

collegescolleges && universitiesuniversities..

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C lassroom instructionsC lassroom instructions

Use of videosUse of videos RoleRole playsplays TraditionalTraditionalwrittenwritten

materialsmaterials

lectureslectures GroupGroupdiscussiondiscussion

ClassroomClassroominstructions includesinstructions includes

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T ypes of developmentT ypes of development

BothBoth classroomclassroom instructioninstruction andand onon thethe job jobtrainingtraining areare usedused f orf or developmentdevelopment purposespurposes

asas wellwell asas trainingtraining..DevelopmentDevelopment alsoalso includesincludes additionaladditionalactivitiesactivities suchsuch asas variedvaried workwork experienceexperience

andand f ormalf ormal educationeducation..

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Formal educationFormal education

ManyMany largelarge corporationcorporation reimbursereimburse employeesemployees f orf ortakingtaking collegecollege coursescourses andand obtainingobtaining advancedadvanceddegreesdegrees. . ThisThis isis notnot aa rewardreward toto thethe employee,employee, butbutitit isis anan e ff ectiveeff ective wayway toto developdevelop employeesemployees whowhowillwill bebe ableable toto taketake onon newnew responsibilityresponsibility andandchallengingchallenging positionspositions..

BusinessBusiness schoolsschools areare customizingcustomizing coursescourses andanddegreesdegrees toto f itf it thethe developmentdevelopment needsneeds o fofemployeesemployees inin aa particularparticular companycompany..

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T ransfer of training and developmentT ransfer of training and development

WhenWhen trainingtraining && developmentdevelopment taketake placeplaceoffoff thethe job, job, itit isis vitalvital f orf or managersmanagers toto

promotepromote thethe trans f ertrans f er o fof knowledgeknowledge && skillsskillstoto thethe workwork..

TraineesTrainees shouldshould bebe encouragedencouraged toto useuse theirtheir

expertiseexpertise onon thethe job job..

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3 .Performance appraisal & feedback3 .Performance appraisal & feedback

HUMANRESOU RCES

Recruitment&

selection

Training&

development

Ensure employeeshave knowledge &

skills to beeffective

Now

Future

Performance Appraisal

Performance feedback

Evaluation of:

Employees performance

Contribution to their organization

A process through whichmanagers share performanceappraisal with their subordinates

O pportunity to develop theirperformance in the future.

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T ypes of performance appraisalT ypes of performance appraisal

Traits Behavior Results

PERFO RMANCE APPRAISAL F O C USES O N

EVALUATIO N O F

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T raits appraisalsT raits appraisals

PersonnelPersonnel characteristicscharacteristics thatthat areare relevantrelevanttoto job job perf ormanceper f ormance (skills,(skills, abilities,abilities,

personality)personality)

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Beh avior appraisalsBeh avior appraisals

ThroughThrough behaviorbehavior appraisal,appraisal, managersmanagers assessassesshowhow workersworkers per f ormper f orm theirtheir jobs jobs..

Traitsappraisals

Behaviorappraisals

What workers are likewith client, sympathywhen client upset

What workers do howworkers perform their

job

AssessAssess AssessAssess

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Results appraisalsResults appraisals

WithWith resultsresults appraisals,appraisals, managersmanagers assess,assess, thetheper f ormanceper f ormance inin termsterms o fof RESULTSRESULTS oror

OUT COMESOUT COMES O FOF WORKWORK BEHAVIORSBEHAVIORS..

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O bjective & subjective appraisalsO bjective & subjective appraisals

WhetherWhether managersmanagers appraiseappraise per f ormanceper f ormance inintermsterms o fof traits,traits, behaviorbehavior oror resultsresults thethe

IN F ORMATIONIN F ORMATION theythey assessassess isis eithereitherobjectiveobjective oror subjectivesubjective. .

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O bjective appraisalsO bjective appraisals

BasedBased onon f actsf acts && areare likelylikely toto bebe numericalnumerical(number(number o fof carscars sold,sold, numbernumber o fof mealsmeals

prepared,prepared, numbernumber o fof timestimes latelate))ManagersManagers useuse objectiveobjective appraisalsappraisals whenwhenresultsresults areare beingbeing appraisedappraised (results(results easyeasy toto

quanti f yquanti f y thenthen traitstraits oror behaviors)behaviors)

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Subjective appraisalsSubjective appraisals

BasedBased onon managersmanagers perceptionsperceptions o fof traits,traits,behaviorsbehaviors oror resultsresults. .

ThereThere isis alwaysalways aa chancechance thatthat theythey areareinaccurateinaccurate

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W h o appraises performance W h o appraises performance

1.1. ManagersManagers oror supervisorssupervisors o fof employeesemployeesappraisesappraises per f ormanceper f ormance..

2.2. AppraisalsAppraisals byby managers,managers, cancan bebe augmentedaugmentedbyby appraisalsappraisals f romf rom otherother sourcessources

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W h o appraises performance W h o appraises performance

SupervisorsSupervisors

PeersPeers

SubordinateSubordinate

SelfSelf

Customersor clients

Customersor clientsPotential

sources ofperformance appraisals

Potentialsources of

performance appraisals

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360360- - degree performance appraisalsdegree performance appraisals

per f ormanceper f ormance isis appraisedappraised byby aa varietyvariety o fof peoplepeople ininaa positionposition toto evaluateevaluate thisthis per f ormanceper f ormance..

TheThe per f ormanceper f ormance mightmight bebe appraisedappraised byby thetheappraiserappraiser himsel f ,himself , peerspeers // coworkers,coworkers,subordinates,subordinates, supervisors,supervisors, && sometimessometimes evenevencustomerscustomers / / clientsclients..

TheThe appraiserappraiser thenthen receivesreceives f eedbackf eedback evaluationevaluationf romf rom thesethese multiplemultiple sourcessources....

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Effective performance feedbackEffective performance feedback

ManagersManagers mustmust provideprovide theirtheir subordinatessubordinates withwithper f ormanceper f ormance f eedbackf eedback;; toto motivatemotivate && encourageencouragehighhigh per f ormanceper f ormance;; managersmanagers cancan useuse bothboth f ormalf ormal &&

informalin

formal appraisalsappraisals..F ormalF ormal appraisalsappraisals areare conductedconducted atat setset timestimes

duringduring thethe year, year, andand areare basedbased onon per f ormanceper f ormancedimensionsdimensions andand measuresmeasures (that(that havehave beenbeen

specifiedspeci

fied inin advance)advance).. AA salessales personperson

for

for example,example,maymay bebe evaluatedevaluated twicetwice aa year year onon thethe per f ormanceper f ormance

dimensionsdimensions ofof salessales && customercustomer serviceservice..

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F ormalF ormal per f ormanceper f ormance appraisals,appraisals, isis everyevery 66monthsmonths oror everyevery year year dictateddictated byby companycompany

policypolicy..AnAn integralintegral partpart o fof aa f ormalf ormal appraisalappraisal..

MeetingMeeting betweenbetween thethe managermanager andand subordinate,subordinate,

inin whichwhichSubordinateSubordinate isis givengiven f eedbackf eedback onon hishisper f ormanceper f ormance..

Effective performance feedback ( C ont .)Effective performance feedback ( C ont .)

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4 . Pay and benefits4 . Pay and benefits

PayPay:: includesincludes employeesemployees basebase salaries,salaries, paypayraisesraises andand bonusesbonuses..

IsIs determineddetermined byby manymany f actorsf actors includingincluding::CharacteristicsCharacteristics o fof organizationorganization..JobJob && levelslevels ofof per f ormanceper f ormance..

Benef itsBenef its::BasedBased onon membershipmembership inin anan organizationorganization..IncludesIncludes sicksick days,days, vacationvacation daysdays

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55 . Labor relations. Labor relations

HRHR managementmanagement isis responsibleresponsible f orf or managingmanagingthethe relationrelation betweenbetween laborlabor andand otherother

relatedrelated partiesparties suchsuch asas unions,unions, insurance,insurance,....etcetc..