human resource management. fundamentals of human resource management

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.

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.

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.

Four basic functions:

Staffing Training and

Development Motivation Maintenance

How External Influences Affect HRM

Strategic Environment Governmental Legislation Labor Unions Management Thought

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

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

Managing motivation includes:Job designSetting performance standardsEstablishing effective compensation

and benefits programsUnderstanding motivational theories

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.

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. ?

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.

Predicting the Future Labor Supply Decreases in internal supply come about

through:• Retirements• Dismissals• Transfers-out• Lay-offs• Voluntary quits• Sabbaticals• Prolonged illnesses• Deaths

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.

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.

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.

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

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.

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.

Employment Tests Mechanism that attempts to measure

certain characteristics of individuals, e.g.,aptitudesintelligencepersonality

Should be validated before being used to make hiring decisions

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.

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.

Background Investigation: Verify information from the application form Typical information verified includes:

former employersprevious job performanceeducationlegal status to workcredit references criminal records

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

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.

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.

A 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.

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.

Essay Appraisal: Appraiser writes narrative describing employee performance & suggestions.

Critical Incident Appraisal: Based on key behavior incident illustrating effective or ineffective job performance.

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.

Forced-Choice Appraisal: Appraisers choose from sets of statements which appear to be equally favorable, the statement which best describes the employee.

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

Intrinsic versus Extrinsic Rewards Extrinsic rewards come from a

source outside the jobinclude rewards offered mainly by

managementMoneyPromotionsBenefits

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

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

Job Evaluation Methods Ordering method: A

committee places jobs in a simple rank order from highest (worth highest pay) to lowest.

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

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.

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

human resource management. fundamentals of human resource management

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