HR PROCESS OR FUNCTIONS

• Human Resource Management comprise of several processes or functions.

• They are shown in the next slide.

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Acquisition -Job Analysis A job analysis refers to studying

a job in order to understand what is needed to help the job holder perform a job successfully. • Knowledge

• Skills

• Abilities

• Attitudes

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Acquisition - HR Planning (Forecasting)

Demand Forecasting• Determining the number of

employees that the organization will need at some point in the future as well as the knowledge, skills, and abilities that these employees must possess.

Supply Forecasting• Determining what human resources

will be available, both inside and outside the organization.

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Acquisition - Recruitment

The process of finding and attracting job candidates who are qualified to fill job vacancies.• Internal recruitment

–Identifying candidates from inside the organization and encouraging them to apply for jobs that are vacant.

• External recruitment–Advertising for and soliciting

applicants from outside the organization.

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Acquisition - Selection

Selection is the process of evaluating and choosing the best qualified candidate from the pool of applicants recruited for the position.

It entails the exchange of accurate information between employers and job candidates to optimize the person-job match.

Although organizations usually make these decisions, applicants also self-select by choosing to join, not to join, or to leave, organizations according to their individual needs.

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Selection Methods

Application forms and resumes

Tests

Interviews

Physical exams and drug tests

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Application Forms and Resumes

Application forms and/or resumes are usually the first sources of information about a potential employee.

Applications and resumes usually record the applicant’s desired position and job-related qualifications and experience.

Both serve as prescreening devices to help determine whether an applicant meets the minimum requirements of a position.

Both also allow for preliminary comparisons with the credentials of other candidates.

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Written Tests

Test the applicant in a variety of areas:• Knowledge

• Ability

• Skill

• Intelligence

• Interest

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Performance Tests

Performance tests require the job candidate to actually perform it the job, usually in a small part or for a short time.

There are two common types of performance tests:

• Work samples

• Assessment centers

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Work Sample Performance Tests

Work samples are more appropriate for jobs that are more routine and/or more specific.

If work samples are designed and selected well, then the person’s performance in the work sample should accurately predict their performance on the job.

Work samples do show high validity scores, especially when compared to written aptitude, personality or intelligence tests.

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Assessment Center Performance Tests

Assessment centers are usually more appropriate to judge a candidate’s predicted performance in a more complex job.

The candidate typically is presented with a fairly large number and varying types of tasks to do (sometimes more than can reasonably be done).

The intent of the assessment center is to judge how a candidate would behave and perform in selected tasks to predict performance on the job.

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Personality or Personal Tests

Judge whether a person “fits” into the organization.

The goal is to hire people who already have characteristics and attitudes that are line with the core values of the organization and it’s culture.

It is assumed that it is easier to teach a person the details of a job than it is to teach him or her to change deeply help attitudes or change personality characteristics.

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Interviews

Interviews are relatively formal, in-depth conversations conducted for the purpose of assessing a candidate’s knowledge, skills and abilities

Interviews also provide the candidate information about the organization and potential jobs.

Interviews tend to have low validity.• While many people conduct interviews,

few are trained in how to do them well.• Interviews also tend to be fairly informal

and no two are alike which raises issues with reliability.

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Realistic Job Preview

The interviewer explains to the applicant what the job “really” requires rather than giving just the positive points of a job or company and avoiding the negative.

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Training

A planned effort to assist employees in learning job-related behaviors in order to improve performance.

Companies train employees in an effort to prepare them to work toward achieving the goals and objectives of the organization.

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Types of Training Programs

Orientation

Technical training

On-the-job training

Management development programs

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Performance Appraisal

A systematic process of evaluating employee job-related achievements, strengths, weaknesses, as well as determining ways to improve performance.

Uses of performance appraisal information:• Motivation• Personnel movement• Training• Feedback for improvement and

personal development

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Graphic Rating Scales

Assess employee’s on a series of performance dimensions such as:• Initiative • Tardiness• Accuracy of work

Performance dimensions on a graphic rating scale tend to be fairly general.

As a result the scales are relatively flexible and can be used to evaluate individuals in a number of different jobs.

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Problems with Performance Appraisal

Halo Effect

Rater Patterns

Contrast Error

Recency Error

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Direct Compensation

Base pay • Refers to wages and salaries

employees receive in exchange for performing their jobs.

Incentives • Compensation beyond base pay

used to attract, retain, and motivate employees.

• Bonuses, commissions, profit-sharing plans, stock options.

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Indirect Compensation

Benefits• Rewards employees receives as part of

their employment relationship with the organization.

Benefit categories• Required and voluntary security• Retirement• Time-off• Insurance and financial• Social and recreational

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Designing Equitable Reward Systems

Compensation designers are concerned with three sources of fairness expectation:• External Fairness

– Is the pay for the job fair in one organization relative to the pay for the same job in other organizations?

• Internal Fairness– Is the pay for the job within the

organization fair relative to the pay of other jobs in the same organization?

• Employee Fairness– Is the pay fair relative to what coworkers

are making on the same job?

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Labor-Management Relations

The formal process through which labor unions represent employees to negotiate terms and conditions of employment, including:• Pay• Hours of work• Benefits• Other important aspects

of the working environment

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HR Laws

In the US, Equal employment opportunity (EEO) laws prohibit the consideration of race, color, religion, national origin, or gender in employment decision-making.

In addition, there are laws prohibiting employment decisions based on biases against qualified individuals with disabilities and the elderly.

What about Malaysia?

Safety and Health• Occupational Safety and Health is a general

area of concern in employment which spans the physiological and psychological needs and well-being of persons engaged in occupations; work-related trauma and death; the prevention of work-related trauma and death; the protection from, or from risk of work-related-trauma and death; and the rehabilitation and retraining of persons who have suffered work-related trauma (CCH Occupational Health and Safety: Glossary, CCH International, 1992)

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The roles of a human resource manager

administrative

employee advocate

strategic role

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HR Management Roles

• Administrative Role Processing and record keeping

Technology is transforming how HR services are delivered. HR services are being outsourcing to reduce HR staffing

costs, utilize vendor expertise and technology, and increase focus on strategic HR activities.

• Operational and Employee Advocate Role Identify and implement programs and policies “Champion” for employee issues and concerns

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Strategic Role for HR

• Strategic Role “Having a seat at the table” by contributing to

organizational results and success. HR becomes a strategic business partner by:

Focusing on developing HR programs that enhance organizational performance.

Involving HR in strategic planning at the onset. Participating in decision making on mergers, acquisitions,

and downsizing. Redesigning organizations and work processes Accounting and documenting the financial results of HR

activities.

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FIGURE 1.2Changing Roles of HR Management