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Human Resource ManagementHuman Resource Management
Is there any difference between Personnel management and Human resource management ????
2
• For those who recognize a difference between personnel management and human resources, the difference can be described as philosophical.
• Personnel management is more administrative in nature, dealing with payroll, complying with employment law, and handling related tasks.
• Human resources, on the other hand, is responsible for managing a workforce as one of the primary resources that contributes to the success of an organization.
• Human resources is described as much broader in scope than personnel management.
• Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency
• Personnel management can include administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented.
• By contrast, human resources involves ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company's workforce.
• PM is often considered an independent function of an organization.
• Human resource management, on the other hand, tends to be an integral part of overall company function.
What is Human Resource Management?
• Managing the effective use of people to achieve both organizational and individual goals
• Ie; through the effective recruitment, selection, development, compensation, and utilization of human resources by organizations
In short……..HRM is the integration (incorporation/mixing) of all processes, programs, and systems in an organization that ensure staff are acquired and used in an effective way
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
Why you care about HRM?
• Impact on employees
• Impact on managers
• Provides potential future roles as HR professionals
• Impact on organizations
HRM has increased in importance since the 1980s. Why?
• Globalization
• Government regulation
• Stronger knowledge/research base
• Changing role for labor unions
• Challenge of matching worker expectations with
competitive demands
What motivates you as an employees?• Good wages• Good working conditions• Job security• Full appreciation of work that is done• Tactful disciplining• Employer loyalty to employees• Interesting work• Promotion and growth in the organization
How HR How HR FunctionsFunctions Relate to HR Relate to HR ActivitiesActivitiesHow HR How HR FunctionsFunctions Relate to HR Relate to HR ActivitiesActivities
The Acquisition of Human Resources
PlanningAnalyzing JobsRecruitmentSelection The Development of
Human Resources
AppraisingTrainingDeveloping
How How HR Functions HR Functions Relate to Relate to HR HR ActivitiesActivities, continued, continuedHow How HR Functions HR Functions Relate to Relate to HR HR ActivitiesActivities, continued, continued
The Rewarding ofHuman Resources
Compensating(Wages & Salaries)(Incentives)
The Maintenance ofHuman Resources
Employee BenefitsSafety & HealthLabor Relations
Goals of Human Resource Management
The human resource function in contemporary organizations
Facilitatingorganizational competitiveness
Complying with legal and social obligations
Promotingindividual growthand development
Enhancing productivity andquality
The HRM Process
• Functions of the HRM ProcessEnsuring that competent employees are identified and
selected.Providing employees with up-to-date knowledge and
skills to do their jobs.Ensuring that the organization retains competent and
high-performing employees who are capable of high performance.
12–18
The Human Resource Management Process
Environmental Factors Affecting HRM
• Labor UnionAn organization that represents workers and seeks to
protect their interests through collective bargaining.
• Collective Bargaining AgreementA contractual agreement between a firm and a union
elected to represent a bargaining unit of employees of the firm in bargaining for: Wage, hours, and working conditions.
Environmental Factors Affecting HRM (cont’d)
• Affirmative ActionThe requirement that organizations take proactive
steps to ensure the full participation of protected groups in its workforce.
• Laws and RegulationsLimit managerial discretion in hiring, promoting, and
discharging employees.
Key Functions
Human Resource Planning
Recruitment & Selection
Compensation & Benefits
Performance Appraisals
Training & Development
• Human Resource (HR) PlanningThe process by which managers ensure that they
have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks.
Helps avoid sudden talent shortages and surpluses.
Steps in HR planning: Assessing current human resources
Assessing future needs for human resources
Developing a program to meet those future needs
Human Resource Planning
Assessing FutureHuman ResourceNeeds
Assessing Current Human Resources
Developing aProgram to Meet Needs
Current Assessment
• Human Resource InventoryA review of the current make-up of the organization’s
current resource status
Job Analysis An assessment that defines a job and the behaviors
necessary to perform the job
– Knowledge, skills, and abilities (KSAs)
Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees and their managers.
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
Current Assessment (cont’d)
• Job DescriptionA written statement of what the job holder does, how
it is done, and why it is done.
• Job SpecificationA written statement of the minimum qualifications that
a person must possess to perform a given job successfully.
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
Meeting Future Human Resource Needs
Supply of Employees Demand for Employees
Factors Affecting Staffing
Strategic Goals
Forecast demand for products and services
Availability of knowledge, skills, and abilities
Major Sources of Potential Job Candidates
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
Recruitment and Decruitment
• RecruitmentThe process of locating, identifying, and attracting
capable applicants to an organization
• DecruitmentThe process of reducing a surplus of employees in
the workforce of an organization
• E-recruitingRecruitment of employees through the Internet
Organizational web sites Online recruiters
Decruitment Options
Sources of Recruitment
RecruitmentSources
InternalSearches
EmployeeReferrals
Voluntary Applicants
EmploymentAgencies
Advertisements
SchoolPlacement
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.
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.
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.
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.
Types of Selection Devices
• Application Forms• Written Tests• Performance Simulations• Interviews• Background Investigations• Physical examinations
Written Tests
• Types of Tests Intelligence: how smart are you?Aptitude: can you learn to do it?Attitude: how do you feel about it?Ability: can you do it? Interest: do you want to do it?
• Legal Challenges to TestsLack of job-relatedness of test to job requirementsDiscrimination in equal employment opportunity
against members of protected classes
Performance Simulation Tests
• Testing an applicant’s ability to perform actual job behaviors, use required skills, and demonstrate specific knowledge of the job.Work sampling
Requiring applicants to actually perform a task or set of tasks that are central to successful job performance.
Assessment centers Dedicated facilities in which job candidates undergo a
series of performance simulation tests to evaluate their managerial potential.
Other Selection Approaches
• Situational Interviews Interviews in which candidates are evaluated on how
well they handle role play in mock scenarios.
• Background InvestigationsVerification of application dataReference checks:
Lack validity because self-selection of references ensures only positive outcomes.
• Physical ExaminationsUseful for physical requirements and for insurance
purposes related to pre-existing conditions.
Suggestions for Interviewing
1. Structure a fixed set of questions for all applicants.
2. Have detailed information about the job for which applicants are interviewing.
3. Minimize any prior knowledge of applicants’ background, experience, interests, test scores, or other characteristics.
4. Ask behavioral questions that require applicants to give detailed accounts of actual job behaviors.
5. Use a standardized evaluation form.
6. Take notes during the interview.
7. Avoid short interviews that encourage premature decision making.
Other Selection Approaches (cont’d)
• Realistic Job Preview (RJP)The process of relating to an applicant both the
positive and the negative aspects of the job. Encourages mismatched applicants to withdraw. Aligns successful applicants’ expectations with actual
job conditions; reducing turnover.
Orientation
• Transitioning a new employee into the organization.Work-unit orientation
Familiarizes new employee with work-unit goals Clarifies how his or her job contributes to unit goals Introduces he or she to his or her coworkers
Organization orientation Informs new employee about the organization’s
objectives, history, philosophy, procedures, and rules. Includes a tour of the entire facility
12–46
Types of Training
• Interpersonal skills• Technical• Business• Mandatory• Performance management• Problem solving/Decision making• Personal
Employee Training Methods
• Traditional Training Methods
On-the-job
Job rotation
Mentoring and coaching
Experiential exercises
Workbooks/manuals
Classroom lectures
• Technology-Based Training Methods
CD-ROM/DVD/Videotapes/ Audiotapes
Videoconferencing/ teleconferencing/Satellite TV
E-learning or other interactive modules.
Performance Appraisal
Performance Appraisal
The identification, measurement, and management of human performance in organizations.
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
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)
360° Feedback
The combination of peer, subordinate, and self-review
Copyright © 2005 Prentice Hall, Inc. All rights reserved. 12–53
Employee Performance Management
• Performance Management SystemA process establishing performance standards and
appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions.
Performance Appraisal Methods
• Written essays• Critical incidents• Graphic rating scales• Behaviorally anchored rating scales (BARS)• Multiperson comparisons• Management By Objectives (MBO)• 360 Degree feedback
Compensation and Benefits
• Benefits of a Fair, Effective, and Appropriate Compensation SystemHelps attract and retain high-performance employees Impacts on the strategic performance of the firm
• Types of CompensationBase wage or salaryWage and salary add-ons Incentive paymentsSkill-based pay
Factors That Influence Compensation and Benefits
Career Development
• Career DefinedThe sequence of positions held by a person during
his or her lifetime.
• Career DevelopmentProvides for information, assessment, and trainingHelps attract and retain highly talented people
• Boundaryless CareerA career in which individuals, not organizations,
define career progression and organizational loyalty
Some Suggestions for a Successful
Management Career
Contemporary HRM Issues
• DownsizingThe planned elimination of jobs in an organization
Provide open and honest communication. Reassure survivors.
• Managing Work Force DiversityRecruitment for diversitySelection without discriminationOrientation and training that is effective
Contemporary HRM Issues (cont’d)
• Sexual HarassmentAn unwanted activity of a sexual nature that affects
an individual’s employment. Unwanted sexual advances, requests for sexual favors,
and other verbal or physical conduct of a sexual nature when submission or rejection of this conduct explicitly or implicitly affects an individual’s employment.
An offensive or hostile environment An environment in which a person is affected by
elements of a sexual nature.
Contemporary HRM Issues (cont’d)
• Work-Life BalanceEmployees have personal lives that they don’t leave
behind when they come to work.Organizations have become more attuned to their
employees by offering family-friendly benefits: On-site child care Summer day camps Flextime Job sharing Leave for personal matters Flexible job hours
Desired Outcomes of HRMDesired Outcomes of HRM
• Attraction• Retention • Job Performance• Productivity• Employee Safety and Health • Attendance• Job Satisfaction• Competitive Advantage• Company Performance