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Human Resource Management
Fundamentals of Human Resource Management
Management Essentials
Management involves setting goals and allocating scarce resources to achieve them.
Management is the process of efficiently achieving the objectives of the organization with and through people.
Management Essentials
Primary Functions of ManagementPlanning – establishing goalsOrganizing – determining what
activities need to be doneLeading – assuring the right people
are on the job and motivatedControlling – monitoring activities to
be sure goals are met
Why is HRM Important to an Organization?
The role of human resource managers has changed. HRM jobs today require a new level of sophistication. Employment legislation has placed new
requirements on employers. Jobs have become more technical and
skilled. Traditional job boundaries have become
blurred with the advent of such things as project teams and telecommuting.
Global competition has increased demands for productivity.
Why is HRM Important to an Organization?
The Strategic Nature – HRM must bea strategic business partner and
represent employees. forward-thinking, support the business
strategy, and assist the organization in maintaining competitive advantage.
concerned with the total cost of its function and for determining value added to the organization.
Why is HRM Important to an Organization?
HRM is the part of the organization concerned with the “people” dimension.
HRM is both a staff, or support function that assists line employees, and a function of every manager’s job.
HRM Certification Colleges and universities offer HR
programs.
Why is HRM Important to an Organization?
Four basic functions:
Staffing Training and
Development Motivation Maintenance
How External Influences Affect HRM
Strategic Environment Governmental Legislation Labor Unions Management Thought
How External Influences Affect HRM
HRM Strategic Environment includes: Globalization Technology Work force diversity Changing skill requirements Continuous improvement Work process engineering Decentralized work sites Teams Employee involvement Ethics
How External Influences Affect HRM Governmental Legislation
Laws supporting employer and employee actions
Labor Unions Act on behalf of their members by
negotiating contracts with managementExist to assist workers Constrain managersAffect non unionized workforce
How External Influences Affect HRM
Management ThoughtManagement principles, such as those
from scientific management or based on the Hawthorne studies influence the practice of HRM.
More recently, continuous improvement programs have had a significant influence on HRM activities.
Staffing Function Activities
Employment planningensures that staffing will contribute to
the organization’s mission and strategy Job analysis
determining the specific skills, knowledge and abilities needed to be successful in a particular job
defining the essential functions of the job
Staffing Function Activities Recruitment
the process of attracting a pool of qualified applicants that is representative of all groups in the labor market
Selection the process of assessing who will be
successful on the job, and the communication of information to assist
job candidates in their decision to accept an offer
Goals of the Training and Development Function
Activities in HRM concerned with assisting employees to develop up-to-date skills, knowledge, and abilities
Orientation and socialization help employees to adapt
Four phases of training and development Employee training Employee development Organization development Career development
The Motivation Function
Activities in HRM concerned with helping employees exert at high energy levels.
Implications are: Individual Managerial Organizational
Function of two factors: Ability Willingness
Respect
The Motivation Function
Managing motivation includes:Job designSetting performance standardsEstablishing effective compensation
and benefits programsUnderstanding motivational theories
The Motivation Function
Classic Motivation TheoriesHierarchy of Needs –MaslowTheory X – Theory Y –McGregorMotivation – Hygiene – HerzbergAchievement, Affiliation, and Power
Motives – McClellandEquity Theory – AdamsExpectancy Theory - Vroom
How Important is the Maintenance Function? Activities in HRM concerned with maintaining
employees’ commitment and loyalty to the organization. Health Safety Communications Employee assistance programs
Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard.
Translating HRM Functions into Practice Four Functions:
EmploymentTraining and developmentCompensation/benefitsEmployee relations
HRM in an Entrepreneurial Enterprise General managers may perform
HRM functions, HRM activities may be outsourced, or a single generalist may handle all the HRM functions.
Benefits includefreedom from many government
regulationsan absence of bureaucracyan opportunity to share in the
success of the business
HRM in a Global Village
HRM functions are more complex when employees are located around the world.
Consideration must be given to such things as foreign language training, relocation and orientation processes, etc.
HRM also involves considering the needs of employees’ families when they are sent overseas.
HR and Corporate Ethics
HRM must:Make sure employees know about
corporate ethics policiesTrain employees and supervisors on
how to act ethically
Human Resource Planning and Job Analysis
Introduction Human resource planning
is a process by which an organization ensures that it has the right number and
kinds of people at the right place at the right time capable of effectively and
efficiently completing those tasks that will help the organization achieve its overall strategic objectives.
Introduction
Linked to the organization’s overall strategy and planning to compete domestically and globally.
Overall plans and objectives must be translated into the number and types of workers needed.
Senior HRM staff need to lead top management in planning for HRM issues.
An Organizational Framework
Linking Organizational Strategy to Human Resource Planning
Ensures that people are available to meet the requirements set during strategic planning.
Assessing current human resources A human resources inventory report
summarizes information on current workers and their skills.
Human Resource Information Systems HRIS are increasingly popular
computerized databases that contain important information about employees.
Linking Organizational Strategy to Human Resource Planning
Assessing current human resources Succession planning
• includes the development of replacement charts • portray middle-to-upper level management
positions that may become vacant in the near future
• lists information about individuals who might qualify to fill the positions
Linking Organizational Strategy to Human Resource Planning Determining the Demand for Labor
A human resource inventory can be developed to project year-by-year estimates of future HRM needs for every significant job level and type.
Forecasts must be made of the need for specific knowledge, skills and abilities. ?
Linking Organizational Strategy to Human Resource Planning
Predicting the Future Labor Supply A unit’s supply of human resources
comes from:• new hires• contingent workers• transfers-in• individuals returning from leaves
Predicting these can range from simple to complex.
Linking Organizational Strategy to Human Resource Planning
Predicting the Future Labor Supply Decreases in internal supply come about
through:• Retirements• Dismissals• Transfers-out• Lay-offs• Voluntary quits• Sabbaticals• Prolonged illnesses• Deaths
Linking Organizational Strategy to Human Resource Planning
Where Will We Find Workers migration into a community recent graduates individuals returning from military service increases in the number of unemployed and
employed individuals seeking other opportunities, either part-time or full-time
The potential labor supply can be expanded by formal or on-the-job training.
Linking Organizational Strategy to Human Resource Planning
Matching Labor Demand and Supply Employment planning compares forecasts
for demand and supply of workers. Special attention should be paid to current
and future shortages and overstaffing. Recruitment or downsizing may be used
to reduce supply and balance demand. Rightsizing involves linking staffing levels to
organizational goals.
Linking Organizational Strategy to Human Resource Planning
Employment Planning and
the Strategic Planning Process
Job Analysis Job Analysis is a systematic
exploration of the activities within a job.
It defines and documents the duties, responsibilities and accountabilities of a job and the conditions under which a job is performed. ?
Job Analysis
Job Analysis Methods Observation method – job analyst
watches employees directly or reviews film of workers on the job.
Individual interview method – a team of job incumbents is selected and extensively interviewed.
Group interview method – a number of job incumbents are interviewed simultaneously.
Job Analysis
Job Analysis Methods Structured questionnaire method –
workers complete a specifically designed questionnaire.
Technical conference method – uses supervisors with an extensive knowledge of the job.
Diary method – job incumbents record their daily activities.
The best results are usually achieved with some combination of methods.
Job Analysis
Structured Job Analysis Techniques Department of Labor’s Job Analysis
Process: • Information from observations and
interviews is used to classify jobs by their involvement with data, people and things.
• Information on thousands of titles available on O*Net OnLine which is the Department of Labor’s replacement for the Dictionary of Occupational Titles.
Job Analysis Position Analysis Questionnaire
(PAQ)(developed at Purdue University) Jobs are rated on 194 elements, grouped
in six major divisions and 28 sections. The elements represent requirements
that are applicable to all types of jobs. This type of quantitative questionnaire
allows many different jobs to be compared with each other, however, it appears to be more applicable to higher-level professional jobs.
Job Analysis
Job Descriptions Written statement of what jobholder does,
how it is done, under what conditions and why.
Common format: title; duties; distinguishing characteristics; environmental conditions; authority and responsibilities.
Used to describe the job to applicants, to guide new employees, and to evaluate employees.
Job Analysis
Job Specifications States minimum acceptable
qualifications. Used to select employees who have
the essential qualifications.
Job Analysis
Job Evaluations Specify relative value of each job in
the organization. Used to design equitable
compensation program.
Job Analysis
The Multi-faceted Nature of Job Analysis Almost all HRM activities are tied to
job analysis. Job analysis is the starting point for
sound HRM.
Job Analysis
Job Analysis and the Changing World of Work Globalization, quality initiatives,
telecommuting, and teams require adjustments to the components of a job.
Today’s jobs often require not only technical skills but interpersonal skills and communication skills as well.
Recruitment and Selection
By: Dr. Hadia Hamdy
Introduction
RecruitingOnce an organization identifies its
human resource needs through employment planning, it can begin the process of recruiting potential candidates for actual or anticipated organizational vacancies.
Introduction
Recruiting brings together those with jobs to fill and those seeking jobs.
Recruiting Goals
To provide information that will attract a significant pool of qualified candidates and discourage unqualified ones from applying.
Recruiting Goals
Factors that affect recruiting efforts Organizational size Employment conditions in
the area Working conditions, salary
and benefits offered Organizational growth or
decline
Recruiting Goals
Constraints on recruiting efforts include: Organization image Job attractiveness Internal organizational policiesRecruiting costs
Recruiting: A Global Perspective
For some positions, the whole world is a relevant labor market.
Parent (Home) country nationals are recruited when an organization is searching for someone with extensive company experience to launch a very technical product in a country where it has never sold before.
Recruiting: A Global Perspective
Host-country nationals (HCNs) are targeted as recruits when companies want each foreign subsidiary to have its own distinct national identity.
HCN’s minimize potential problems with language, family adjustment and hostile political environments.
Recruiting Sources
Sources should match the position to be filled.
Sources:Internal SearchesEmployee Referrals/
RecommendationsExternal SearchesAlternatives
Recruiting Sources
The internal search Organizations that promote
from within identify current employees for job openings:by having individuals bid for
jobsby using their HR
management systemby utilizing employee referrals
Recruiting Sources
The internal search Advantages of promoting from within
include morale buildingencouragement of ambitious employeesavailability of information on existing
employee performancecost-savingsinternal candidates’ knowledge of the
organization
Recruiting Sources
The internal search Disadvantages include:
possible inferiority of internal candidates
infighting and morale problems
Recruiting Sources
Employee referrals/recommendations Current employees can be asked to recommend
recruits. Advantages include:
the employee’s motivation to make a good recommendation
the availability of accurate job information for the recruit
Employee referrals tend to be more acceptable applicants, to be more likely to accept an offer and to have a higher survival rate.
Recruiting Sources
Employee referrals/recommendations
Disadvantages include:the possibility of friendship
being confused with job performance
Recruiting Sources
External searches Advertisements: Must decide type and
location of ad, depending on job; decide whether to focus on job (job description) or on applicant (job specification).
Two factors influence the response rate:identification of the organizationlabor market conditions
Recruiting Sources
External searches Employment agencies:
Public or state employment services focus on helping unemployed individuals with lower skill levels to find jobs.
Private employment agencies provide more comprehensive services and are perceived to offer positions and applicants of a higher caliber.
Recruiting Sources
External searches Schools, colleges, and
universities: May provide entry-level or
experienced workers through their placement services.
May also help companies establish cooperative education assignments and internships.
Recruiting Sources
Recruitment alternatives Temporary help services.
Temporary employees help organizations meet short-term fluctuations in HRM needs.
Older workers can also provide high quality temporary help.
Employee leasing. Trained workers are employed by a leasing company,
which provides them to employers when needed for a flat fee.
Typically remain with an organization for longer periods of time.
Questions???
SelectionSelection
Selection – the process by which an organization chooses from a list of applicants the person or persons who best meet the selection criteria for the position available, considering current environmental conditions
Internal Environmental Factors Influencing Selection
Organization characteristics that can influence the selection process:SizeComplexityTechnological ability
External Environmental Factors Influencing Selection
Government employment laws and regulations
Size, composition, and availability of local labor markets
Selection Criteria
Formal EducationExperience and
Past Performance
PhysicalCharacteristics
PersonalCharacteristics and
Personality Type
Reliability of Selection Criteria
Reliability – how stable or repeatable a measurement is over a variety of testing conditions.
Validity of Selection Criteria
Validity – addresses the questions of:What a selection tool measuresHow well it has measured it
It is not sufficient for a selection tool to be reliable
The selection tool must also be valid
4. Backgroundand Reference
Checks
5. SelectionDecision
6. PhysicalExamination
2. EmploymentInterview
3. EmploymentTests
1. PreliminaryScreening
Steps in the Selection Process
The Selection Process
Initial Screening Involves screening of
inquiries and screening interviews.
Job description information is shared along with a salary range.
The Selection Process
Employment Interview
Interviews involve a face-to-face meeting with the candidate to probe areas not addressed by the application form or tests
Two strategies for effective use of interviews:1. Structuring the interview to be reliable and valid
2. Training managers on best interview techniques
The Selection Process
Types of Interviews: Unstructured interview Structured interview Behavioral Interviews
Candidates are observed not only for what they say, but how they behave.
Role playing is often used. Stress Interviews.
The Selection Process
Realistic Job Preview RJP’s present unfavorable as well as
favorable information about the job to applicants.
May include brochures, films, tours, work sampling, or verbal statements that realistically portray the job.
RJP’s reduce turnover without lowering acceptance rates.
The Selection Process
Employment Tests Mechanism that attempts to measure
certain characteristics of individuals, e.g.,aptitudesintelligencepersonality
Should be validated before being used to make hiring decisions
The Selection Process
Employment Tests Estimates say 60% of all organizations use
some type of employment tests.Performance simulation tests: requires the
applicant to engage in specific job behaviors necessary for doing the job successfully.
Work sampling: Job analysis is used to develop a miniature replica of the job on which an applicant demonstrates his/her skills.
The Selection Process
Employment TestsAssessment centers: A series of
tests and exercises, including individual and group simulation tests, is used to assess managerial potential or other complex sets of skills.
Testing in a global arena: Selection practices must be adapted to cultures and regulations of host country.
The Selection Process
Background Investigation: Verify information from the application form Typical information verified includes:
former employersprevious job performanceeducationlegal status to workcredit references criminal records
The Selection Process
Background Investigation Do not always provide an organization
with meaningful information about applicants
Concerns over the legality of asking for and providing confidential information about applicants
The Selection Process
Physical Examinations Should be required only after a
conditional offer of employment has been made
Summary
Putting more money into selection can significantly reduce the amount of money it must spend on training
A selection system will make some mistakesNo guarantee of successful job
performance
Questions????Questions????Questions????Questions????
Training and Development
By: Magda Hassan
Agenda
The Socialization Process. Employee Orientation. Employee Training Employee Development. Organization Development. Evaluation of Training Program.
Introduction
Socialization, training and development are all used to help new employees adapt to their new organizations and become fully productive.
Ideally, employees will understand and accept the behaviors desired by the organization, and will be able to attain their own goals by exhibiting these behaviors.
1. The socialization Process
Socialization A process of adaptation to a
new work role. Adjustments must be made
whenever individuals change jobs
The most profound adjustment occurs when an individual first enters an organization.
1. The socialization Process
The assumptions of employee socialization: Socialization strongly influences employee
performance and organizational stabilityProvides information on how to do the job
and ensuring organizational fit. New members suffer from anxiety, which
motivates them to learn the values and norms of the organization.
1. The socialization ProcessThe assumptions of employee
socialization:Socialization is influenced by subtle and
less subtle statements and behaviors exhibited by colleagues, management, employees, clients and others.
Individuals adjust to new situations in remarkably similar ways.
All new employees go through a settling-in period.
1. The socialization Process
A Socialization Process
1. The socialization Process
The Socialization Process Pre-arrival stage:
Individuals arrive with a set of values, attitudes and expectations which they have developed from previous experience and the selection process.
1. The socialization Process The Socialization Process
Encounter stage: Individuals discover how well their expectations match realities within the organization.
Where differences exist, socialization occurs to imbue the employee with the organization’s standards.
1. The socialization Process
The Socialization ProcessMetamorphosis stage: Individuals
have adapted to the organization, feel accepted and know what is expected of them.
2. New-Employee OrientationPurpose
Orientation may be done by the supervisor, the HRM staff or some combination.
Formal or informal, depending on the size of the organization.
Covers such things as: The organization’s objectives History Philosophy Procedures Rules HRM policies and benefits Fellow employees
2. New-Employee Orientation
Learning the Organization’s Culture Culture includes long-standing,
often unwritten rules about what is appropriate behavior.
Socialized employees know how things are done, what matters, and which behaviors and perspectives are acceptable.
2. New-Employee OrientationRoles
The CEO’s Role in Orientation Senior management are often visible
during the new employee orientation process.
CEOs can: Welcome employees. Provide a vision for the company. Introduce company culture -- what matters. Convey that the company cares about
employees. Allay some new employee anxieties and help
them to feel good about their job choice.
2. New-Employee Orientation
HRM’s Role in Orientation Coordinating Role: HRM
instructs new employees when and where to report; provides information about benefits choices.
Participant Role: HRM offers its assistance for future employee needs (career guidance, training, etc.).
3. Employee Training
Definitions Employee training
a learning experience designed to achieve a relatively permanent change in an individual that will improve the ability to perform on the job.
Employee development future-oriented training, focusing on the personal growth of the employee.
3. Employee Training
Determining Training Needs
4. Methods of Employee Training
On-the-job training methodsJob RotationUnderstudy Assignments
Off-the-job training methodsClassroom lecturesFilms and videosSimulation exercisesVestibule training
5.Employee Development
This future-oriented set of activities is predominantly an educational process.
All employees, regardless of level, can benefit from the methods previously used to develop managerial personnel.
5.Employee Development
Employee development methods Job rotation involves moving
employees to various positions in the organization to expand their skills, knowledge and abilities.
Assistant-to positions allow employees with potential to work under and be coached by successful managers.
6. Employee Development Methods
Employee development methods Committee assignments provide
opportunities for:• decision-making• learning by watching others• becoming more familiar with
organizational members and problemsLecture courses and seminars
benefit from today’s technology and are often offered in a distance learning format.
6. Employee Development Methods
Employee development methodsSimulations include case studies,
decision games and role plays and are intended to improve decision-making.
Outdoor training typically involves challenges which teach trainees the importance of teamwork.
7. Organization Development
What is change? OD efforts support changes that are
usually made in four areas: The organization’s systemsTechnologyProcesses People
7. Organization Development
Two metaphors clarify the change process. The calm waters metaphor describes
unfreezing the status quo, change to a new state, and refreezing to ensure that the change is permanent.
The white-water rapids metaphor recognizes today’s business environment which is less stable and not as predictable.
8. Evaluating Training and Development Effectiveness
Evaluating Training Programs: Typically, employee and manager opinions are
used, These opinions or reactions are not necessarily
valid measures Influenced by things like difficulty, entertainment
value or personality of the instructor. Performance-based measures (benefits
gained) are better indicators of training’s cost-effectiveness.
Performance Appraisal and Compensation
By: Yomna Sameer
Evaluating Employee Performance - Agenda
Purpose of performance management system
Difficulties in performance management system
Steps of the Appraisal process Appraisal methods
Performance Evaluation
The performance management systems need to include: decisions about who should
evaluate performance what format should be used how the results should be utilized
Purposes of a Performance Management System
Feedback - let employees know how well they have done and allow for employee input.
Development – identify areas in which employees have deficiencies or weaknesses.
Difficulties in Performance Management Systems
Focus on the individual: Discussions of performance may elicit strong emotions and may generate conflicts when subordinates and supervisors do not agree.
Difficulties in Performance Management Systems
Focus on the process: Company policies and procedures may present barriers to a properly functioning appraisal process.
Additionally, appraisers may be poorly trained.
The Appraisal Process
Step 1 and 2 Establishment of performance
standards Derived from company’s strategic
goals. Based on job analysis and job
description. Communication of performance
standards to employee.
Step 3 and 4
Measurement of performance using information from: personal observation statistical reports oral reports written reports
Comparison of actual performance with standards.
Step 5 and 6
Discussion of appraisal with employee.
Identification of corrective action where necessary. Basic corrective action deals with
causes.
Appraisal Methods
Three approaches: Absolute standards Relative standards Objectives
1. Absolute Standards
Evaluating absolute standards: An employee’s performance is
measured against established standards.
Evaluation is independent of any other employee.
1. Absolute Standards
Essay Appraisal: Appraiser writes narrative describing employee performance & suggestions.
Critical Incident Appraisal: Based on key behavior incident illustrating effective or ineffective job performance.
1. Absolute Standards
Checklist Appraisal: Appraiser checks off behaviors that apply to the employee.
Adjective Rating Scale Appraisal: Appraiser rates employee on a number of job-related factors.
1. Absolute Standards
Forced-Choice Appraisal: Appraisers choose from sets of statements which appear to be equally favorable, the statement which best describes the employee.
1. Absolute Standards
Behaviorally Anchored Rating Scales (BARS): Appraiser rates employee on factors which are defined by behavioral descriptions illustrating various dimensions along each rating scale.
2. Relative Method
Employees are evaluated by comparing their performance to the performance of other employees.
2. Relative Method
Group Order Ranking: Employees are placed in a classification reflecting their relative performance, such as “top one-fifth.”
2. Relative Method
Individual Ranking: Employees are ranked from highest to lowest.
Paired Comparison: • Each individual is compared to
every other.
• Final ranking is based on number of times the individual is preferred member in a pair.
3. Achieved Outcome Method
Management by Objectives (MBO)includes mutual objective setting and
evaluation based on the attainment of the specific objectives
3. Achieved Outcome Method
Common elements in an MBO program are:
• goal specificity• participative decision making• an explicit time period• performance feedback
Effectively increases employee performance and organizational productivity.
Creating More Effective Performance Management Systems
Development of Compensation and Pay systems - Agenda
Objectives of compensation Types of rewards Development of a base pay system
Objectives of compensation
EfficiencyQualityPerformanceCost
Fairness
Compliance
Types of Reward Plans
Intrinsic versus Extrinsic Rewards Intrinsic rewards (personal
satisfactions) come from the job itself, such as:pride in one’s workfeelings of accomplishmentbeing part of a work team
Types of Reward Plans
Intrinsic versus Extrinsic Rewards Extrinsic rewards come from a
source outside the jobinclude rewards offered mainly by
managementMoneyPromotionsBenefits
Types of Reward Plans
Financial versus Non-financial Rewards Financial rewards include:
wages bonuses profit sharing pension plans paid leaves purchase discounts
Non-financial rewards emphasize making life on the job more attractive; employees vary greatly on what types they find desirable.
Introduction
Development of a Base Pay System
Job Analysis
Job Evaluation
Pay Survey
Pay Structure & Grades
Job Structure
Development of a Base Pay System
Job Evaluation Use of job analysis information
to determine the relative value of each job in relation to all jobs within the organization. The ranking of jobsLabor market conditionsCollective bargainingIndividual skill differences
?
Development of a Base Pay System
Job Evaluation Methods Ordering method: A
committee places jobs in a simple rank order from highest (worth highest pay) to lowest.
Development of a Base Pay System
Job Evaluation Methods Classification method:
Jobs are placed in classification grades Compare their descriptions to the
classification description and benchmarked jobs
Look for a common denominator such as skills, knowledge, or responsibility
Development of a Base Pay System
Job Evaluation Methods Point method:
Jobs are rated and allocated points on several identifiable criteria, using clearly defined rating scales.
Jobs with similar point totals are placed in similar pay grades.
Offers the greatest stability.
Development of a Base Pay System
Establishing the Pay Structure Compensation surveys
Used to gather factual data on pay rates for other organizations
Information is often collected on associated employee benefits as well
Any Questions
?