SBM & HRM

1YMWGPK Udurawana, Lecturer, Faculty of Management Studies, Rajarata University of Sri Lanka - 2011

HUMAN RESOURCE MANAGEMENT

ByYMWGPK Udurawana

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Definition of HRM

YMWGPK Udurawana, Lecturer, Faculty of Management Studies, Rajarata University of Sri Lanka - 2011

Human Resource Management (HRM) is the efficient and effective utilization of human resources (HR) to achieve goals of an organization

Generic Purpose of HRM

Generic purpose of HRM is to generate and retain appropriate and motivated employee force, which gives the maximum individual contribution to organizational success.


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Strategic Objectives

Procure RIGHT People, Time, Job Retain most appropriate employee Improve organizational commitment Generate & enhance job

involvement & Organizational Citizenship

Ensure motivate & satisfaction Control the cost of employee


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Job Design


Job design is a function of arranging task, duties and responsibilities in to an organizational unit (Job) for the purpose of accomplishing a certain objective

Jobs are basic building blocks of the firm or an organization unit of work

There are three main components of JobTaskDutiesResponsibilities

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Task – Duty -Responsibility


Task is a series of motions and is a distinct identifiable small work activity

Duty is a sense of task and is a larger work segment accomplished by completing a series of task

Responsibility is the obligation (bound ) of to performing the entrusted task and duties successfully

Eg. Lecturer Task, Duty, Responsibility

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Techniques of Job Design


Scientific TechniquesJob EnlargementJob EnrichmentJob RotationProfessional Techniques

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Scientific Techniques

That is job divided into small parts and which are to execute b various person and who get specification of task.

Result to job specialization This objective is maximize the

organizational productivity by maximizing efficiency (Scientific Management)

Tat results for short job cycle (Requires short time for job)



Job Enlargement

Increase the scope of the job Include new duties Additional to current duties Increase the scope of the job It is horizontal loading

This is a job redesigning method Where job cycle is larger

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Job Enrichment


Increasing the depth of job Expanding Authority Expanding Responsibility For

planning and controlling. It is vertical loading

This is also a job redesigning method

Job Rotation


It is shifting an employee from one particular job to another without limiting the employee to do a particular job.

This helpful to create a skillful worker

This is also a job redesigning method

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Job Design Elements


Two element can be seen Efficiency Elements - It is affect of

minimizing job executive time, cost, and attempt to keep efficiency. There are three elements of Efficiency Elements

Behavioral Elements - This factors directed to the employee motivation and development. There are five elements of Behavioral Elements

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JOB ANALYSIS


It is a systematic investigation of Jobs and Job holder characteristics in order to create a collection of information that can be used to perform various HRM activities and functions

And also it can be said as collecting, evaluating, organizing and recording information regarding Jobs within the organization

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Components of Job Analysis


Job Description Job Specification

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Job Description


Job description is a written statement of what the Jobholder actually does, how he or she does, and what conditions the Job is performed.

There is no common format to JD. But we can identify following thing as generally at JD. Job identification. & Job Summary Relationship, Responsibility and Duties. Authority & Standard of performance Working condition Profile of the job characteristics

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Job Specification


Specifies the key qualifications an individual needs to perform the Job efficiently and effectively.

Describes the person ideally needed to perform the Job.

A profile of human characteristic needed to perform the Job

(Required abilities, education, experience, training, special mental and physical skills).

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HR Planning


HRP is the process of determining future employee needs and deciding steps or strategies to achieve those needs for the purpose of accomplishing organization goals.


HR Planning Process

Develop Strategies to be Taken

Compare Demand with Supply

Estimate HR Supply

Assess HRP effort.

Forecast Future Demand for HR

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Forecast Future Demand


This involves estimating the type and quantity of employee needs for future

Following factors may affect to future demand.

Demand for Organization (Product). Strategic Plans (goals) of the firm Production Method /Technology (Capital /

labor)

Employee Movement External Environment

Internal HR Supply

This involves making internal supply estimate Internal supply can estimate through

following Auditing current human resources Identifying & arranging possible

replacement That summarizes prepare two documents as Skill Inventories Management Inventories


Skill Inventory Skill Inventory

It refers to the document that specifies competencies of a current non managerial employee in the firm. Identify information of the employee

Identify of the job of employee Education & experience Seniority Special competencies & performance Weakness


Management Inventory


It refers to the document that catalogues technical, human relation, and other competencies of a current manager of firm.

Number of Subordinate Supervised Jobs & Duties of Subordinates Total Budgets Management Training Received Creative & Innovations

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Compare Demand & Supply


Need comparisons of estimated Hr demand & Hr Supply

Identify net employee requirements May be Human resources shortage

or HR surplus of organization.

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Strategies for Surplus


Hiring Freeze (No further hiring) Reduction of reward expenditure Attrition (Voluntary Departure) Early retirement Programme Lay off (temporary Stoppage) Formal out placement facility

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Strategies for Shortage


Overtime Outsourcing Internship Providing Part Time Hiring Capital Substitution Hire Temporary, Casual Workers

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Assess HRP Effort


Clearly Evaluate cost vs. benefit Determine its import on

organizational goals & objectives

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Recruitment


It is the process of finding and attracting suitable qualified people to apply for employment

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Recruitment Process


Identify Job VacanciesDetermine Job Requirements

Prepare Job Applications

Consider factors affecting Recruiting

Select the Recruiting Method

Implementation & Evaluation


Determine Job Requirements

Characteristics of Proposed Job Skills and Competence of Expected

Person

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Factors Affecting Recruiting


Organization Recruitment policy Cost & Time Environment Workforce Planning Salary Employee Market Recruiting Habits

Prepare Job Applications


Use common methods to collect data

Only essential information Enough space to provide data Helping information to applicant Simple and attractive

Select the Recruiting Method

At selection process Firm must consider its Recruitment Policy

Internal Recruitment Policy External Recruitment Policy


Internal Recruitment Policy

It refers to procuring candidates to fill vacancies within the organization itself


Advantages Create Employee Moral Workers Career

Development Employee Motivation Cheaper Cost Effective LMR

Disadvantages

Prevent new knowledge Employee conflicts Avoids new BLOOD Retains OLD BOOB

(Error) Inbreeding (Junior

follow same thing)

Method of Recruiting

Simple word of mouth Use Skill Inventories Use Management Inventories Job Posting & Bidding Intranet Succession Plan – that shows the

successors who are to be recruited to future job at right time.


Skill & Management Inventory

Skill Inventory It refers to the document that specifies

competencies of a current non managerial employee in the firm.

Management Inventory It refers to the document that catalogues

technical, human relation, and other competencies of a current manager of firm.


External Recruitment Policy


It refers to procuring candidates to fill vacancies outside the organization

Disadvantages

Prevent Employee Moral

Employee De motivation

Higher Cost Less Effective LMR

Advantages

Create new knowledge

Employee performance high

Strength of new BLOOD

Reputation High

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Method of Recruiting


Employee’s Referrals Pre Applicant Past Employee Educational Institution E- Recruiting Executive Search Firms (Head Hunting) Special Event Recruiting Internship & Collage Recruiting Advertising

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Advertising More popular method for recruiting Use TV, Radio, Banners, News Paper… Consume high cost Attract large number of job seekers It impact on

Attract to qualified applicantAttract already employeesFirms’ own employeeExternal Parties


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Two Type Advertising


Closed AdvertisementNo reveal about firmUse 3rd party to recruitAvoid canvassingAvoid public relationCompetitive advantagesAttract suitable persons

Open AdvertisementReveal details of firmHigh costAttract more personsHigh public relations

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Implementation & Evaluation


Take decision on above steps are implemented

Which involves to individuals apply to vacancies, and application receive to the firm

Evaluation can be done through following measuresNumber of applications on decided timeThe cost for one applicantPerformance of recruited personNumber of application received

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Alternative to Recruitment


Overtime FacilityOutsourcing Temporary Employment

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Selection


The process of making the choice of the most appropriate person from pool of applicants recruited to fill the relevant job vacancy Most Appropriate Person Most Qualified Person

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Selection Process


Evaluation of applications

Test

Interview

Background Investigation

Medical Test

REJECTION

SELECTION

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Effectiveness of Interviews


Prior knowledge about an applicant Attitude of the interviewer The order of the interview Negative information The first five minutes


Individual Interview Panel Interview Structured Interview Unstructured Interview Mixed Interview Problem Solving Interview Stress Interview

Interview errors can be seen as the major disadvantage

Types of Interview


Interviewer Errors Hallow Effect Over emphasis on one criteria Leading Questions Pressure to hire Personal prejudice Interviewer domination Poor job knowledge

Interview’s Error


Interviewee Errors Conflict answer Time consuming Showing one thing doing another thing Not listener Influence of non verbal behavior Pressure to hire

Interview’s Error


Intelligence Test Achievement Test Aptitude Test Personality Test Practical test Mind Style Questionnaires (MSQ) Assessment Centre - A programme lasting

for one or several days and using multiple methods of selection and multiple assessors to determine the suitability of candidates for particular job vacancies

Employee Test


Check references Past employment Behaviors Academic Finance

Medical TestIt is a formal investigation of applicant physical and mental fit for the job

Background Investigation

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Hiring


Hiring is the process of appointing the selected candidate to the post/job which is vacant

It involve s placing the selected employee on the right position of the jobs

This process is normally vested in the top management of firm

Highly responsible to get right person, for right job, at right time, in right way

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Hiring Process


Preparation Appointment Letter

Notification to Appointees

AcceptanceFollow Up Reject

Appoint from Waiting List

Enter in to the Employment Contract.

Probationary Period


A selected period to prove certain capability for job before confirmed Confirmed employee become permanent Both party can terminate at short notice After probationary period, evaluation can done and,

Confirmed Extend period Terminate

Employee Induction


Induction is the HRM function that systematically & formally introduce new employees to the organization and its task.

It can be a Formal or informal way Formal – Systematic, planned

attempt Informal – Not Planned and it is ad

hoc


Objectives/Importance of Induction Reducing the cost and inconvenience Increasing commitment (work hard) Cultural shock – person vs. firm culture Reality shock – Expected vs. Actual state Reduced tardiness, absenteeism, turnover Strong labor management relationship Accelerating progress up the learning curve Speeding up socialization & increased

loyalty Reduce grievance & eliminate wastages

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Training Training is the formal and systematic

modification of behavior through learning which occurs as a result of education, instruction, development and planned experience.

Training is the systematic process of altering the behavior, knowledge, and motivation of employee in a direction to increase organizational goal attainment.


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Objectives of Training

Develop the right skill & competencies of employee and improve their performance

Help people to grow with the organization

Reduce the learning time of employee to achieve success and ensure fully competent and economical as possible


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Training Methods Apprentice (Beginner) Training

New employee train with his job activities using his immediate boss or other trainer

Job RotationJR is shifting an employee from one particular job to another to provide proper training (identify strength & weakness of each units and its task)

Special Practical AssignmentArrange a practical task, assignment, method to train the job holder


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Training Methods… On the Job Training Method

Training is given by allowing the trainee to perform the duties of job.

Behavioral Model TrainingIt focuses on teaching interpersonal skills, cognitive skills through ideal job related behavior

Vestibule (Hall) TestingTraining is given in an artificial place considering expected aspect of training


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Training Methods… Outside Seminars

Organize to provide skill building training Role paling

A training techniques in which trainees act out the part of people in a realistic problem and who get training related to the job.

Lectures Verbal, written presentation to deliver the job knowledge


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Performance Evaluation

We can identify Performance Evaluation as a system of measuring, evaluating and influencing an employees’ job related attributes, behaviors and outcomes and discover employee present performance on the job.



Cont… Who should do –

Immediate SupervisorSeveral SupervisorsOther committee, Outsider Peer, Self, SubordinateCustomers/Clients

How Often–Annually, Quartile, Weekly


Establish Criteria Criteria is the dimension of

performance upon which an employee is evaluated. Those are two types Objective Criteria – These are

quantifiable distinctly & easy to measure (Lecturer hour)

Subjective Criteria – That are not quantifiable distinctly & difficult to measure (Lecture quality)


PE Method…

Self Evaluation Method Essay Appraisal Method Examination systems Critical Incident Method Point Allocation Method MBO Evaluation 360 Degree Method Field Review Method


360 Degree Method This means

employees are evaluated by each and every parts of the organization such as peers, customers, superiors, subordinated…

Customer Head

Peer

Employee

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RelationshipsRelationships

AdaptabilityAdaptability

LeadershipLeadershipCommunicationCommunication

PersonalPersonalDevelopmentDevelopment

DevelopmentDevelopmentof Othersof Others

ProductionProduction TaskTaskManagementManagement

Example


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PE Errors

Errors can be seen on Evaluator Error – errors occurs base

on the evaluator or evaluating panel Employee Error –those are the errors

of employee who are being evaluating

Process Error –that may be errors occur on used evaluation method or process.

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Employee Movement

Employee movements refer to change that occur with regard to the employees.

Therefore EM is any change in the employment of worker which affected to his existed job characteristics and responsibilities.


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Movement Type

TRANSFERTRANSFER

PROMOTIONPROMOTION DEMOTIONDEMOTION

LAYOFFLAYOFF

RETRENCHMENTRETRENCHMENT

RETIREMENTRETIREMENT DISMISSALDISMISSAL

TERMINATETERMINATE

CHANGECHANGE


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Promotion

Promotion is a upward change of the worker’s present position. (Changes can be on responsibility, more prestige, authority, pay, more rank, better job terms & conditions)

At least their must be increased of the pay and a more important gap title


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Transfers Transfer is the moving of an employee

within the same jobs class or grade(From one job, place, time, to another job jobs, place, time and from office to field and also transfer can be offered as a promotion)

Transfers not be done on an imitation basis

It should done on the need of organization

No required frequently transfer for one employee as it breaks family consistency


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Layoff Layoff is a temporary stoppage of the

employment of an employee due to reason/s which generally not controllable by the management and which expects to re-employ them in future.

Characteristics of Layoff Employer must have an inability to retain

further employee on employment Tentative stoppage & Re-employ in future


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Demotion

Demotion is the appointment of an employee who is currently working in the organization to a job that is lower than the job being performed by employee.


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Dismissals Dismissal is moving an employee out of

the organization permanently on disciplinary ground.

Many disciplinary oriented behavior helpful to dismissals those are can be identified as follows


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Termination

Termination is the complete end of the employment service of employee by the employer.

Reasons for TerminationsThe main reason is the resignation for termination, it can be done on employee or by employer


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Resignation It can be identified in different ways as

follows Voluntary Resignation - Employee decide

to resign due to some reasons asFinding a another jobGetting married / Gone abroadPhysical DisabilityJob dissatisfactionReading for study


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Retrenchment

It can be defined as the permanent termination of the employment of an employee due to surplus of employee within the organization.

To manage the retrenchment firm can practice number of activities as follows


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Retirement Retirement can be describe as a leaving an employee from the

organization after he has reached the age at which a person can be get.

Compulsory Retirement - Age Forced Retirement Due to serious rules enumerated in the

service agreement Premature Retirement - disable, dice, bad health, and family

problems before retirement age.


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Compensation


Pay is defined as the basic reward an employee receives in return for worker contribution rendered for the organization where who work.

Compensation System refers to money, goods and services provided by an employer to an employee in return for specific behavior offered by an employee

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Components of a Pay System It is of twofold

Direct pay - irreducible minimum of base payMerit pay which is contingent on

performance Incentive pay based on work doneDiffered pay such as savings plans, stock

plansIndirect pay and other components


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Components of a Pay System Indirect Pay Protection programs-medical and life insurance Pay for time not work-holidays Perquisites-free meals, housing and transportation

Premium- payment for working at inconvenient and difficult areas

Overtime-for working extended hours Bonus-gratuitous payment not directly earned by workers Special allowances for special skills like language

allowances

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Objectives of PM

To attract suitable, qualified person To retain appropriate employee To motivate employee To comply with legal requirements To ensure equity To control employee cost


Equity Issues in PM


Fair pay is a pay that ensure equity. The equity is the degree of reasonableness. There are four type of equity Primary Equity Internal Equity External Equity Inputs Equity

Equity… Primary Equity - If the pay received by the

employee is sufficient to meat basic needs it is possible to say that pay possesses primary equity.

Internal EquityThis is refers to degree to which the pay is related to the relative work of jobs. It reveals similar pays for similar job and dissimilar pays for dissimilar jobs


Equity… External Equity

Payment for certain job is to be equal to that of other similar jobs in other organizations, specially in same sector or industry.

Inputs EquityIf employees are getting enough fair salary against his inputs used to perform duties of job with enough performance it is the input equity.


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Factors Affecting for Pay Trade Unions Legal Requirements Financial Ability Productivity Strategy Competence Competitive Pay Cost of Living Labor demand /supply


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