HUMAN RESOURCE MANAGEMENT

What is Human Resource Management?

HRM Human resource management (HRM) is the strategic

and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.

HRM

FeaturesIts features include:

• Organizational management

• Personnel administration

• Manpower management

• Industrial management

HRM• But these traditional expressions are becoming less

common for the theoretical discipline. Sometimes even employee and industrial relations are confusingly listed as synonyms, although these normally refer to the relationship between management and workers and the behavior of workers in companies.

• The theoretical discipline is based primarily on the assumption that employees are individuals with varying goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing cabinets. The field takes a positive view of workers, assuming that virtually all wish to contribute to the enterprise productively, and that the main obstacles to their endeavors are lack of knowledge, insufficient training, and failures of process.

HRM• HRM is seen by practitioners in the field as a

more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce, and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the overall enterprise. HRM is also seen by many to have a key role in risk reduction within organizations.

HRM (Definitions)• Synonyms such as personnel management are often used

in a more restricted sense to describe activities that are necessary in the recruiting of a workforce, providing its members with payroll and benefits, and administrating their work-life needs. So if we move to actual definitions,

• Torrington and Hall (1987) define personnel management as being:

“a series of activities which: first enable working people and their employing organisations to agree about the objectives and nature of their working relationship and, secondly, ensures that the agreement is fulfilled“.

• While Miller (1987) suggests that HRM relates to: ".......those decisions and actions which concern the

management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage“.

HRM (Academic Theory)Academic theory• The goal of human resource management is to help an

organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organization's employees, and the overall strategic direction of the company (Miller, 1989).

• The basic premise of the academic theory of HRM is that humans are not machines, therefore we need to have an interdisciplinary examination of people in the workplace. Fields such as psychology, industrial engineering, industrial, Legal/Paralegal Studies and organizational psychology, industrial relations, sociology, and critical theories: postmodernism, post-structuralism play a major role. Many colleges and universities offer bachelor and master degrees in Human Resources Management.

HRM (Academic Theory)One widely used scheme to describe the role of HRM,

developed by Dave Ulrich defines 4 fields for the HRM function:

• Strategic business partner • Change management• Employee champion • Administration However, many HR functions these days struggle to get

beyond the roles of administration and employee champion, and are seen rather as reactive than strategically proactive partners for the top management. In addition, HR organizations also have the difficulty in proving how their activities and processes add value to the company. Only in the recent years HR scholars and HR professionals are focusing to develop models that can measure if HR adds value.

HRM (Business Practice) Business practice Human resources management comprises several

processes. Together they are supposed to achieve the above mentioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company.

• Workforce planning • Recruitment (sometimes separated into attraction and

selection) • Induction, Orientation and Onboarding • Skills management

• Training and development • Personnel administration • Compensation in wage or salary • Time management • Travel management (sometimes assigned to accounting

rather than HRM) • Payroll (sometimes assigned to accounting rather than

HRM) • Employee benefits administration • Personnel cost planning • Performance appraisal

HRM-Environment FactorsFactors

EXTERNALEXTERNAL– POLITICALPOLITICAL– LEGALLEGAL– BUSINESS ENVIRONMENT –BUSINESS ENVIRONMENT –

• GLOBALISATIONGLOBALISATION• MERGERS & ACQUISITIONSMERGERS & ACQUISITIONS• DOWNSIZING /RIGHTSIZING DOWNSIZING /RIGHTSIZING

– NATIONAL ECONOMYNATIONAL ECONOMY– DEMOGRAPHICDEMOGRAPHIC

• Diverse workforce Diverse workforce • Knowledge workforce / intellectual capitalKnowledge workforce / intellectual capital• More Women in workforceMore Women in workforce• Changing family structureChanging family structure• Contingent workforceContingent workforce

• TECHNOLOGICALTECHNOLOGICAL– Occupational Shift Occupational Shift

(manufacturing ….. services)(manufacturing ….. services)– managing a virtual workforcemanaging a virtual workforce– training & retraining employees training & retraining employees

to to manage obsolescence.manage obsolescence.– providing work life balanceproviding work life balance– Need based technology – not Need based technology – not

fadsfads

• Internal factorsInternal factors– UnionsUnions– Strategy, LeadershipStrategy, Leadership– Organizational CultureOrganizational Culture– Professional BodiesProfessional Bodies

The External InfluencesThe External Influences • The HRM activities don't exist in isolation. Rather, they

are highly affected by what is occurring outside the organization. It is important to recognize environmental influences because any activity undertaken in each of the HRM processes is directly, or indirectly, affected by these external elements. For example, lets say that when a company downsizes its workforce, does it layoff workers by seniority? If so, are an inordinate number of minority employees affected. Although any attempt to identify specific influences may prove insufficient, one can categorize them into four general areas - the dynamic environment, governmental legislation, labor unions and current management practice.

The Dynamic Environment of HRM It's been stated that the only thing that remains constant

during our lifetimes is change (and paying taxes!). We must, therefore, prepare ourselves for events that have a significant effect on our lives. HRM is no different. Many events help shape our field. Some of the more obvious ones include-

• globalization, • work-force diversity, • changing skill requirements, • corporate downsizing, • total quality management, • reengineering work processes, • decentralized work sites, and • employee involvement.

The Dynamic Environment of HRM

• GLOBALIZATION Globalization reflects the worldwide operations of many businesses today. One is no longer bound by continents or societal cultures.

• WORK FORCE DIVERSITY includes the varied backgrounds of employees that are present in the companies today. Homogeneity of employees, and their needs, no longer exist. The work today is more complex, requiring employees with sophisticated skills. Without them, many employees will lack the basic abilities to successfully perform in tomorrow's organizations.

The Dynamic Environment of HRM• Corporate downsizing, total quality

management, and reengineering all relate to one another. As the world changed, U.S. companies had to compete harder to maintain their leading industrial status. This meant doing things differently. In an effort to become more productive, organizations downsized to create greater efficiency by eliminating certain jobs. Of the jobs and work processes remaining, total quality management (TQM) looks at ways of improving job effectiveness. By continuously improving on methods, techniques, processes, and the like, companies made constant efforts to better what they produce. But what if what they produce, even if it's better, still doesn't satisfy the customer? In those cases, reengineering is necessary. Whereas TQM looks at new and improved ways of producing goods and services, reengineering looks at starting the processes over again from scratch. That is, instead of improving on an existing product, the organization would analyze what should be done and how they should do it. Searching for answers would not be constrained by current business practices.

The Dynamic Environment of HRM

• Decentralized work sites are quickly becoming part of many organizations. With the technologies that are available (personal computers, fax machines, modems, etc.), work that was once done on the company premises may now be more cost-effectively handled at the employee's home. Lastly,

• Employee involvement looks at how employees' work lives are changing. Involved employees now have more control over their jobs. Certain activities, like goal setting, were once the sole responsibility of managers. With employee involvement, such an action today permits participation.

Governmental Legislation • Many employees today wishing to take several

weeks of unpaid leave to be with their newborn children, and return to their previous job without any loss of seniority, have an easier time making the request. Although some employers may see such an application as negatively affecting the workflow, government legislation has given employees the right to take this leave. Laws supporting this and other employer actions are important to the HRM process.

21

Legal Compliances• Shops & Establishments Registration &

Compliance• Registration &Compliance under the Factories

Act• Registration & Compliance under Provident

Fund Act• Registration and Compliance under the ESI Act• Compliance under Minimum Wages Act• Compliance under the Gratuity Act• Compliance under the Payment of Bonus Act

I. I. ObjectivesObjectives

A. Competitive A. Competitive advantage.advantage.

B. Changing trends.B. Changing trends.

C. Importance of C. Importance of measurement.measurement.

HRM in a Changing Environment

II. OverviewII. Overview

A. Functions of HRM A. Functions of HRM

B. HRM is about the B. HRM is about the people who perform its people who perform its activities.activities.

II. Overview cont...II. Overview cont...

C. Most effective HRM C. Most effective HRM programs programs

1. Not typical.1. Not typical.

2. HR is a major 2. HR is a major contributor.contributor.

II. Overview cont...II. Overview cont...

D. Status of HRM is D. Status of HRM is improving.improving.

1. More Professional1. More Professional

2. Bigger budgets2. Bigger budgets3. Senior 3. Senior managementmanagement

III. HRM Trends III. HRM Trends

A. Trend 1: productivity A. Trend 1: productivity

B. Trend 2: flexibility B. Trend 2: flexibility

C. Trend 3: internationalC. Trend 3: international

D. Trend 4: litigationD. Trend 4: litigation

E. Trend 5: workforce.E. Trend 5: workforce.

IV. HRM Measurement IV. HRM Measurement

A. The value of HRM A. The value of HRM functions.functions.

B. measurement can B. measurement can reduce cost.reduce cost.

C. which HRM practices C. which HRM practices work.work.

“Management by Measurement” System

• “Management by measurement” system—ensuring all functional business units subscribe to guidelines for sound, strategic measurement– criteria to measure

• performance (e.g., individual, team, unit)• quantity, quality, timeliness, cost-effectiveness, effects on

others• productivity• customer satisfaction• absenteeism• turnover/retention/tenure/intentions to stay/leave• employee theft

“Management by Measurement” System

• criteria to measure (continued)• violence in the workplace• job stress (e.g., role conflict, ambiguity)• job satisfaction/motivation/attitudes/commitment• creativity• perceived fairness (procedural, interactional)• error rates• accidents, health-related variables (worker stress,

injuries)• organizational citizenship behavior

HRM Functions

The Human Resource SystemR

eta

ini

ng

good

staff

Recr

uit

ment

Pro

cess

Handlin

g

pro

ble

ms

Termination of employement

32

Manage vendors, suppliers, budgets, and HR systems

Handle employees transactions and enquiries

Develop and deliver programmes that enhance the organisation’s ability to attract, develop and retain superior performers

Align HR activities and programmes with the strategic direction and business needs of the organisation

TodayToday FutureFuture

Administration

Transactions

Performance Enhancement

Strategy

40%

30%

25%

5%

% Time, Effort, Cost

20%

20%

20%

Strategy

Administration

Performance Enhancement

40%

Transactions

Source: Hay/McBer & Company, presented by Lyle M. Spencer,Jr.,PhD

The Changing Face of HRHR Transaction and Administration functions are being enabled

through leading edge e-HR solutions

33

HRIS, INTERNET, INTRANETS & EXTRANETS

Performance appraisal, including 360O feedback

Widespread electronic

systems

Enhanced distribution of HR policy,

news, information

Internet recruitment

Better internal communication

Maintenance of HR records

On-line training & development

Multi-site collaborative work

teams, electronically linked

• Considered to be the most important aspect of management

• Attitudes and abilities of staff have a crucial impact on the visitors experience

• Labour costs are likely to be the largest single items on the attractions budget

Human Resource Management in Tourism

Tourism industry suffers from bad reputation in HRM

• High turnover of staff

• Seasonality of demand

• Poor status of jobs

• Lack of career structures

• Unusually demanding jobs

• lack of management expertise

• Lack of widely recognized qualification and training schemes

Problems of HRM at visitor attractions

Problems of public sector attractions are often in direct

contrast to the problems mentioned before

• Low turnover of staff

• Inflexible working practices

• Fixed-wage rages

• Standardized recruitment and disciplinary procedures

Problems of HRM at visitor attractions cont.

Benefits for organisation of good HRM

• Improves performance of staff

• Provides a competitive advantage to the organization

• Contented staff provide better service to customers, encouraging repeat visitation

• Reputation for good staff will lead to increased first-time visitation

• HRM plays a part in determining the success or failure of any organisation.

HUMAN RESOURCE PLANNING

PRODUCTIVITY

ECONOMICDEVELOPMENT

GROWTH

EFFECTIVE

UTILIZATION

OF

HUMANCAPABILITY

Human Resource Planning

• Effective planning of HR is essential to match the requirements of the job with the individual

• Right resources at the right time to meet the future organizational needs is critical

• A comprehensive and meticulous HRP process can ensure sustained growth of an organization

Human Resource Planning• Diversification or expansion, employee promotion or changes in human resource necessitates effective HRP• Organizational plans, goals, and strategies also needs effective HRP• Success in business is dependent on being able to react quickly to opportunities• Organizations must have accurate, rapid access to information about both supply of and demand for HR

Organizational Life-Cycle Stages HR Activities

LIFE-CYCLE STAGE STAFFING COMPENSATION

TRAINING AND DEVELOPMENT

LABOR / EMPLOYEE RELATIONS

Introduction Attract best technical and professional talent

Meet or exceed labor market rates to attract needed talent

Define future skill requirements and begin establishing career ladders

Set basic employee-relations philosophy of organization

Growth Recruit adequate numbers and mix of qualified workers. Plan management succession. Manage rapid internal labour market movements

Meet external market but consider internal equity effects. Establish formal compensation structures

Mold effective management team through management development and organizational development

Maintain labour peace, employee motivation & morale

Organizational Life-Cycle Stages and HR Activities

LIFE-CYCLE STAGE STAFFING COMPENSATION

TRAINING AND DEVELOPMENT

LABOR / EMPLOYEE RELATIONS

Maturity Encourage sufficient turnover to minimize layoffs and provide new openings. Encourage mobility as reorganizations shift jobs around

Control compensation costs

Maintain flexibility and skills of an aging workforce

Control labour costs & maintain labour peace. Improve productivity

Decline Plan and implement workforce reductions and reallocations, downsizing and outplacement may occur during this stage

Implement tighter cost control

Implement retraining and career consulting services

Improve productivity and achieve flexibility in work rules. Negotiate job security and employment-adjustment policies

Human Resource Planning• HRP is both a process and a set of plans

– a process by which management of an organization determines its future HR requirements– a plan to fill the future HR requirements from internal and external sources

• Assessment of human resource requirements in advance vis a vis organizational objectives, production schedules, and demand fluctuations

Human Resource Planning

• ‘The process of determining human resource requirements and the means of meeting those requirements in order to carry out the integrated plan of the organization’ – Coleman• Relates to

– establishing job specifications– determining the number of personnel required– developing the sources of human resource

Internal vs. External

• System of matching the available resources, either externally or internally, with the expected organizational demand over a period of time• Internal Resources

– employees who are already in the organization

• External Resources– personnel who have to be recruited from outside

Objectives of HRP:-• Forecasting HR Requirements

– maintain the required quantity & quality of HR– turnover/attrition rates

• Effective Management of Change– coping with changes in market conditions, technology, govt. regulations et al

• Realizing Organizational Goals– expansion, diversification

• Promoting Employees– database on skill repertoire

• Effective Utilization of HR– surplus/unutilized employees vis a vis downsizing

Emergence of HRP

• Early HRP was top down, short range

• 1970s: “manpower planning”

• 1990s: aligning HR strategy with

–corporate strategy

–attention to individual career planning

Effective HRP

• An effective HRP –closes the gap between the current

situation and a desired situation in the context of an organization’s strategy

–helps cope with change and achieve organizational goals

HR Planning Levels• HRP is carried out at different

organizational levels to meet HR requirements at those levels

• Flow of communication in HRP is both ways– Top to bottom – Bottom to top

• The levels are– Corporate level planning– Intermediate level planning– Operational level planning

HR Planning Levels• Corporate-level Planning

– Culture and mission of the organization– Macro-level: changes in market conditions, technology,

strategic plan, etc– Identification of broad policy issues; employment, welfare,

development policies• Intermediate-level Planning

– SBU level, based on corporate-level HR Plan– Determining recruitment, retaining, laying off

• Operational-level Planning– Operations level plan– Training & development, recruitment etc

• Planning Short-term Activities– Management of day-to-day activities– Ensure success or failure of corporate plans– Grievance handling, etc

Environmental Scanning

impact of strategy/goals on diff. units

Forecastingquantity & quality of personnel needed

Involving Line Managersdetermining HR needs of departments

Analysis of Supplymatching current HR supply & reqmnt

HRP

PROCESSPlan of Action

recruitment, selection, training, et al

Human Resource Planning

Predict demand

Forecast internal supply Forecast external supply

Assess trends in• External labour markets• Current employees• Future organizational plans• General economic trends

Compare future demandand internal supply

Plan for dealing with predict-ed shortfalls or overstaffing

Situation Analysis• Interaction of HRM and strategic planning• The strategic plan must adapt to environmental

circumstances• HRM is one of the mechanisms of adaptation

process• Example: rapid technological changes can force

an organization to quickly identify and hire employees with new skills

• Without HR plan to support the recruitment & selection functions it would be impossible to move fast to stay competitive

Forecasting• Estimating not only ‘how many’ but also

‘what kinds’ of employees will be needed• Yields advance estimates or calculations

of the organization’s staffing requirements

• Apart from quantitative tools, a great deal of human judgement is involved

• Incredibly difficult tasks, especially in rapidly changing environment

Forecasting Techniques• Qualitative Techniques

–Expert estimate–Nominal Group Technique (NGT)–Delphi Technique

• Quantitative Techniques–Regression Analysis–Productivity Ratios–Personnel Ratios–Time Series Analysis

The Nominal Group TechniqueA small group of 4-5 people gathers around a table. Leader

identifies judgment issue and gives participants procedural instructions

Participants write down all ideas that occur to them, keeping their lists private at this point. Creativity is encouraged during this phase

Leader asks each participant to present ideas and writes them on a blackboard or flipchart, continuing until all ideas have been recorded

Participants discuss each other’s ideas, clarifying, expanding, and evaluating them as a group

Participants rank ideas privately in their own personal order and preference

The idea that ranks highest among the participants is adopted as the group’s judgment

The Delphi TechniqueLeader identifies judgment issues and develops questionnaire

Prospective participants are identified and asked to cooperate

Leaders send questionnaire to willing participants, who record their judgments and recommendations and return the questionnaire

Leaders compiles summaries and reproduces participants’ responses

Leader sends the compiled list of judgment to all participants

Participants comment on each other’s ideas and propose a final judgment

Leader looksfor consensus

Leader accepts consensus judgment as group’s choice

Statistical Techniques NameName

Regression analysis

Productivity ratios

DescriptionDescription

Past levels of various work load indicators, such as sales, production levels, are examined for statistical relationships with staffing levels. Where sufficiently strong relationships are found, a regression (or multiple regression) model is derived. Forecasted levels of the retained indicator(s) are entered into the resulting model and used to calculate the associated level of human resource requirements.

Historical data are used to examine past levels of a productivity index (P):

P = Work load / Number of People

Where constant, or systematic, relationships are found, human resource requirements can be computed by diving predicted work loads by P.

Statistical Techniques NameName

Personnel ratios

Time series analysis

DescriptionDescription

Past personnel data are examined to determine historical relationships among the employees in various jobs or job categories. Regression analysis or productivity ratios are then used to project either total or key-group human resource requirements, and personnel ratios are used to allocated total requirements to various job categories or to estimate for non-key groups.

Past staffing levels (instead of work load indicators) are used to project future human resource requirements. Past staffing levels are examined to isolate and cyclical variation, long-tem terms, and random movement. Long-term trends are then extrapolated or projected using a moving average, exponential smoothing, or regression technique.

Analysing Current Supply• “How many and what kinds of employees do I

currently have in terms of the skills and training necessary for the future?”

• Are resources available – internally or externally – to fill those needs?

• Internal– skills inventory– succession planning– promotability

• External– availability of qualified labor; surplus? shortage?

Analysing Current Supply• The Skills Inventory: tool to assess current

supply of employees in terms of– skills– abilities– experiences– training

• If the current inventory exceeds the future requirements and natural attrition cannot bring down the resources to match the future requirements?

Employee Replacement Chart for Succession Planning

Managing Employee Surpluses

Source: Compliments of Dan Ward, GTE Corporation

Managing Employee Shortages

Source: Compliments of Dan Ward, GTE Corporation

HRIS• Human Resource Information System is

more than just a computerized skills inventory

• An HRIS is an integrated approach to– analysing– acquiring– storing– controlling the flow of information

throughout an organization

HRIS• Highly developed HRIS systems can

increase efficiency and response time of HRM activities

• The system might contain a programme for tracking applicants, a skills inventory, a career planning programme, employee service programmes

• One of the most common uses of an HRIS is in recruitment and tracking of applicants

Job analysis

Job analysisAn assessment of the kinds of skills, knowledge, and abilities needed to successfully perform each job in an

organization

71

Job Analysis• Job analysis is the systematic collection

and recording of information concerning:– the purpose of a job,– its major duties,– the conditions under which it is performed,– the contact with others that performance of

the job requires, and– the knowledge, skills, and abilities needed for

performing the job effectively.

JOB ANALYSIS OUTCOMES

– Job description

– Job specification

– Job evaluation

Job Analysis Components

• Job description– A written statement of what a job holder does, how it

is done, and why it is done• Tasks, duties and responsibilities that the job entails

• Job specification– A statement of the minimum acceptable qualifications

that an incumbent must possess to perform a given job successfully

• Knowledge, skills, and abilities required of the job holder

JOB DESCRIPTION

• Focus on the job• Written statement

– What is done– How– Why

• Includes– Job content – Environment– Conditions of

employment

TYPICAL JOB DESCRIPTION FORMATS

• Job title• Duties • Distinguishing

characteristics• Authority • Responsibilities

JOB DESCRIPTIONS ARE USEFUL FOR

• Recruiters• New hires• Performance

appraisals• Identifying essential

job functions

JOB SPECIFICATION

• Focus on the person who does the job

• Identifies minimum incumbent qualifications

• Knowledge, skills, education, experience, certification, abilities

• Personality

JOB EVALUATION

• Establish job comparability– Compensation – Relative value

• Competitive analysis

IT TAKES GOOD JOB ANALYSIS TO PERFORM

• THESE HR FUNCTIONS WELL:

• Recruiting• Selection• Strategic human

resource planning• Employee training• AND….

MORE HR FUNCTIONS NEED JOB ANALYSIS

• Employee development

• Career development• Performance

appraisal• Compensation• Safety and health• Labor relations

The Multifaceted Nature of the Job Analysis

82

• A job analysis may be based on information obtained through direct observation, interviews, diaries or questionnaires.

• A job description is a statement of the duties, working conditions, and other significant requirements associated with a particular job.

• A job specification is a statement of the skills, abilities, education and previous work experience that are required to perform a particular job.

83

Methods of Job Analysis• For existing jobs, interviews with

employees

• Interviews with supervisors

• Observation

• Combination, interviews & observation

• Structured questionnaires

• Employee journals/logbooks

Job Analysis• Unorganized data has little use.

• Only concerned with facts.

• Concerned only with the job, not the worker.

• Not “job classification”.

• Required to determine job qualifications?

• No, but planning is the key to success.

Tools used• Books and Literature

– Valid information on current job analysis and studies.

– Job analysis that are being implemented by other successful companies.

– Past and present failures and successes.

Tools cont..• Flow and Organizational Charts

– Very helpful for showing past and current information.

– Show trends and similarities.

Recruitment and Selection

Recruitment And Selection

• Recruitment– The process of locating, identifying, and

attracting capable applicants

• Selection process– The process of screening job applicants to

ensure that the most appropriate candidates are hired

Recruitment and Selection

We have specific objectives in recruiting and selecting:

–Identifying the right people.–Reducing the range of differences

in performance from least effective to most effective workforce.

–Keeping turnover to a minimum.

Recruitment and SelectionHow to achieve objectives:

• There is no magic answer.

• Start with a good solid job description.

• Do customer analysis.

• Analyze competitors’ workforce.

• Analyze our workforce.

• Take info from these steps and compile a profile on type of person we want.

Developing a pool of applicants:Job must be sufficiently attractive. Then we go to many sources to

recruit such as:

–College placement services.

–Trade media advertising.

–Newspaper advertising.

–Employment services.

Recruitment and Selection

• Screening and final selection:

–Comparison with our preferred employee profile.

–Interviews to assess.

–Impressions candidate makes.

–Interest in job.

–Personal characteristics.

Recruitment and Selection

Strategic Recruiting

Stages

Typical Division of HR Responsibilities

Traditional Recruiting Sources• Internal searches

• Advertisements

• Employee referrals

• Public employment agencies

• Private employment agencies

• Campus placement

• Temporary help services

• Employee leasing and independent contractors

Organizational Recruiting Activities

RecruitingRecruitingImageImage

RecruitingRecruitingImageImage

RecruitingRecruitingPresencePresence

RecruitingRecruitingPresencePresence

Training of Training of RecruitersRecruiters

Training of Training of RecruitersRecruiters

EffectiveEffectiveRecruitingRecruiting

EffectiveEffectiveRecruitingRecruiting

Strategic Recruiting Decisions

RecruitingRecruitingSource Choices:Source Choices:

Internal vs. Internal vs. ExternalExternal

RecruitingRecruitingSource Choices:Source Choices:

Internal vs. Internal vs. ExternalExternal

Organizational-Organizational-Based vs. Based vs.

OutsourcingOutsourcing

Organizational-Organizational-Based vs. Based vs.

OutsourcingOutsourcing

Regular vs. Regular vs. Flexible StaffingFlexible Staffing

Regular vs. Regular vs. Flexible StaffingFlexible Staffing

Recruiting and Recruiting and EEO/Diversity EEO/Diversity

ConsiderationsConsiderations

Recruiting and Recruiting and EEO/Diversity EEO/Diversity

ConsiderationsConsiderations

StrategicStrategicRecruitingRecruiting

StrategicStrategicRecruitingRecruiting

EEO and Diversity Considerations

Advantages and Disadvantages of Internal and External Recruiting Sources

Internal Recruiting Methods

Internet Recruiting Methods

Job BoardsJob BoardsJob BoardsJob Boards

Professional/Professional/Career Web SitesCareer Web Sites

Professional/Professional/Career Web SitesCareer Web Sites

Employer Web SitesEmployer Web SitesEmployer Web SitesEmployer Web Sites

Internet Internet RecruitingRecruitingMethodsMethods

Internet Internet RecruitingRecruitingMethodsMethods

Internet Recruiting

• Advantages– Recruiting cost

savings– Recruiting time

savings– Expanded pool of

applicants– Morale building for

current employees

• Disadvantages– More unqualified

applicants– Additional work for HR

staff members– Many applicants are

not seriously seeking employment

– Access limited or unavailable to some applicants

External Recruiting

Employment AgenciesEmployment Agenciesand Search Firmsand Search Firms

College and College and University University RecruitingRecruiting

High Schools and High Schools and Technical SchoolsTechnical Schools

LaborLaborUnionsUnions

External External Recruiting Recruiting SourcesSources

Media SourcesMedia Sourcesand Job Fairsand Job Fairs

CompetitiveCompetitiveSourcesSources

What to Include in an Effective Recruiting Ad

Evaluating Recruiting

Evaluating Recruiting Evaluating Recruiting EffortsEfforts

Evaluating Recruiting Evaluating Recruiting EffortsEfforts

Evaluating Evaluating Time Time

Required to Required to Fill OpeningsFill Openings

Evaluating Evaluating Time Time

Required to Required to Fill OpeningsFill Openings

Evaluating Evaluating Recruiting Recruiting Costs and Costs and BenefitsBenefits

Evaluating Evaluating Recruiting Recruiting Costs and Costs and BenefitsBenefits

Evaluating Evaluating Recruiting Recruiting Quality and Quality and

QuantityQuantity

Evaluating Evaluating Recruiting Recruiting Quality and Quality and

QuantityQuantity

Recruiting Evaluation• General Areas for Evaluating Recruiting

– Quantity of applicants– EEO goals met– Quality of applicants

• Yield ratios– A comparison of the number of applicants at one

stage of the recruiting process to the number at the next stage.

• Selection rate– The percentage hired from a given group of

candidates

Recruiting Evaluation Pyramid

Selection and Placement

• Selection–The process of choosing individuals who have

needed qualities to fill jobs in an organization.–Organizations need qualified employees to

succeed• “Good training will not make up for bad selection.”• “Hire hard, manage easy.”

HR’s Role in Selection and Placement

• Reasons for centralizing selection–Easier to have applicants in one place.–Contact with outside applicants is easier.–Managers can concentrate on operating

responsibilities rather than the selection process.

–Selection costs are lower with no duplicated efforts.

Selection Methods• Yield ratios

– A comparison of the number of applicants at one stage of the recruiting process to the number at the next stage

• Selection rate– Percentage hired from a given group of candidates

• Acceptance Rate– Percentage of rejected job offers

• Success Base Rate– Comparing percentage rate of past applicants who

were good employees to that of current employees.

Selection Terms

• Reliability– The degree to which a selection device measures the

same thing consistently (stability)• Example: an individual consistently achieves nearly identical

scores on the same exam.

• Validity– The proven relationship between a selection device

and some relevant criterion (a measure of job success)• Example: superior job performance and high employment test

scores

Selection Devices

• Written tests

– Intelligence, aptitude, ability, and interest test batteries

• Performance-simulation tests

– Selection devices that are based on actual job behaviors; work sampling and assessment centers

• Interviews

– Effective if conducted correctly

• Realistic job preview (RJP)

– Providing positive and negative information about the job and the company during the job interview

113

The case of Protection Royale 1

• The focus is on the Financial Consultancy Division of this insurance company• There had been very low turnover among the sales consultants whose job had

been to market the company’s insurance products to insurance brokers.• Recruitment was by replacement:

– advertise in the trade press– use specialist recruitment agencies– recommendations from existing staff– shortlist from applications– interviews, roles plays, psychometric testing– references

• But the job became harder as products diversified and become more complex

114

• Customers lost confidence, the company lost its position in the marketplace

• There was a big shake-up• The company recognised the need to have a more

focused product range and high-performing staff who could persuade brokers that these were worth selling on to clients.

• A new person specification emerged:– excellent product knowledge– influential and persuasive– negotiation skill

Protection Royale…... 2

115

• Furthermore, legislation introduced in 1994 required financial sales practitioners to hold various qualifications

• Therefore there was a big reduction in eligible people within the external labour market.

• Existing staff were deemed either ‘suitable’, ‘unsuitable’ or ‘possible’; many left

• Line managers tried to head-hunt replacements, but failed.

• A crisis became apparent

Protection Royale ... 3

116

• ‘Recruitment champions’ were appointed• Line managers and HR specialists were given

performance indicators relating to recruitment objectives

• A new search for direct recruits and for trainees.

• A matrix of selection methods (e.g. Application form, testing of job knowledge/ skills/attitudes, psychometric testing, interviews, simulations, presentations, references) and competencies.

Protection Royale ... 4

117

• National advertising• 7 day ‘phone-in’ interviews, followed by screening

interviews• Assessment centre based selection• Appointment of an induction manager• Thorough procedural knowledge training for all

those involved in the recruitment and selection process.

Protection Royale... 5

118

Recruitment & Selection flowing down from Corporate Strategy

• Here the objective of recruitment & section would be to recruit people who will enhance the org.’s capacity to deliver its corporate strategy.

• E.g. for an INNOVATION corp. strategy, the company would seek to recruit people with:– highly innovative behaviour– preference/ability for co-operative behaviour– relatively high risk taking– tolerant of uncertainty– moderate concern for quality of output– balanced orientation toward process and results– longer-term focus

• For a QUALITY ENHANCEMENT or COST REDUCTION corp. strategies, the patterns would be different

119

• There is a business case for building more DIVERSITY into organisations– enhances creative capability– greater flexibility in global markets– more widely equipped to face unpredictable

challenges

Recruitment & Selection driving Corporate Strategy

120

Recruitment & Selection Flowing down from Organisation Structure

Behaviours required in managers in Organic Organisations:

• networking• team building• information retrieval• innovative problem

solving

• Mgt competencies required in Organic organisations

• info search• concept formation• conceptual flexibility• interpersonal search• managing interaction• developmental orientation• self confidence• Proactiveness • achievement orientation(These may be needed by non-

managers too)

121

e.g. Recruiting people in order to help reconfigure the organisation as delayered and TEAM-BASED rather than tall.

• Therefore look for people:• who are dependable• have interpersonal skills• are self-motivated• have integrity• have leadership potential• are assertive• tolerate ambiguity• are able to cope with stress

Recruitment & Selection driving Org. Structure

• Make recruitment a two-way process

• Involve existing team members in the final selection

Training and Development

The Workplace Skills Strategy

Human capital is increasingly regarded as one of the major drivers of productivity, economic growth and competitive advantage.

Recognizing the importance of human capital, the training manpower sets out to generate:

• A skilled, adaptable, motivated and resilient workforce

• A flexible, efficient labour market

• A responsive strategy to meet employers needs for skilled workers

• A learned employee can retain customers and increase business & market share thro’ proper behavior and good public relations

As a demand-driven approach to human resource and skills development, the Training will build and strengthen relationships with and among workplace partners and better engage employers, unions to respond to the challenges of workplace skills development.

An organization is only as good as it’s employees.

• In order for an organization to produce professional career minded employees an investment has to be made.

What type of investment must an employer offer employees to gain this?

• An investment in training and education is a sure payoff.

Importance of Training Managers: Importance to overall business strategy Labour leaders: Importance to collective bargaining

issues

5%

22%

44%

30%

9%

29%

37%

25%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

not/slightly important important very important crucial

managers

labour

Examples of Training Investments

Industry and government in the United States spend approximately $90 billion each year on employee training and education.

Average Japanese companies spends about 6% of budget on training.

Study of major automobile manufactures found U. S automakers spend about 40 hours training new employees compared to 300 hours for Japanese automakers.

Motorola’s CEO required all divisions to spend at least 2% of budget on training. Over next 7 years, profits increased 47% and it was estimated that each $1.00 in training yielded $30.00 in return.

TRAINING ACTIVITIES SHOULD BE

ALIGNED WITH OVERALL OBJECTIVE OF THE

ORGANISATION, WITH A MEANINGFUL EMPHASIS ON

VALUE ADDITION TO OUR

HUMAN RESOURCES.

Factors to consider

• Training to benefit organisation

• Training to benefit employees

• Training to benefit the industry

• Provide a good return on investment?

Investment

• To invest properly, the employer must provide training as one of the needed tools for employees to get the job

done.

Why Training?

• The sharing of information through training is our most valuable tool to develop our most valuable asset…our employees.

Once employees have proper “tools” in their toolbox

• They will come to work on a daily basis, with enthusiasm and the positive attitude to give a full days work for a full

days pay.

TRAININGS SHOULD AIM AT• EMPOWERING THE EMPLOYEES

• INCREASING PRODUCTIVITY

• MAKING THE PROCESSES MORE

EFFICENT AND EFFECTIVE

so as to

ENSURE ULTIMATE

CUSTOMER SATISFACTION

IMPROVE THE OVERALL

PERFORMANCE OF THE ORGANISATION.

1. Respond to technology changes affecting job requirements.

2. Respond to organizational restructuring.

3. Adapt to increased diversity of the workforce.

4. Support career development.

5. Fulfill employee need for growth.

Importance of Training – contd…

Importance of Training and Development

• Maintain skill levels

• Advance skill and knowledge to improve – Performance (efficiency)– Service delivery (error rate)– Profitability (productivity, manpower)

• Integrate new technologies into work

• Establish standards for work practices

Benefits of Training - Individuals

• Do job more efficiently – learn new methods

• Professional approach to work, engaged in best practice routines

• Personal satisfaction – felt valued

• Recognised qualification to add to CV

The Benefits of Training

• Gives the supervisor more time to manage, standardized performance, less absenteeism, less turnover, reduced tension, consistency, lower costs, more customers, better service

• Gives the workers confidence to do their jobs, reduces tension, boost morale and job satisfaction, reduces injuries and accidents, gives them a chance to advance.

• Gives the business a good image and more profit.

Benefits of Training-a summary

• Improved customer service and public relations• Fewer complaints• Better morale and attitudes• Less turnover and absenteeism• More involved and caring employees• Proactive vs. reactive employees

• MANAGEMENT’s ONE OF THE MOST IMPORTANT FUNCTIONS IS TO TRAIN PEOPLE FOR THEIR JOBS.

Then why is training often neglected?

• Urgency of need• Training time• Costs• Employee turnover• Short-term worker• Diversity of worker• Kinds of jobs (simple-complex)• Not knowing exactly what you

want your people to do and how

Attitudes to trainingIndividual:• How is that related to

what I do?• “I’m good at my job and

anyway, I have no time”• “I suppose that’s my

weekends shot for months!”

• “Are they trying to get rid of me?”

Employer:• How can I be sure the

organisation will benefit?• Training is so expensive

– how will I know if it has been effective?

• Will this effect the goal of developing and implementing standards and protocols for the organisation?

• “If I train them, they’ll leave”

Our front-line employees are often “good” will ambassadors.

• Yet they are the ones who hold the most “thankless” job. Their role and their understanding of their role is the vital key towards their development and their ability to provide

excellent customer service.

Importance of TrainingTeaching people How to do Their

Jobs:• There are three kinds of training:

Job Instruction, Retraining, and Orientation.

• The big sister/ big brother system is when a old hand dominates a newcomer.

• When good training is absent there is likely to be an atmosphere of tension, crisis, and conflict because nobody knows what to do.

I. Needs Assessment

II. Developing &Conducting

Training

III. EvaluatingTraining

Training Process Model

Developing a Unit Training Program

• This is taught in several sessions.• It should provide check points to

measure progress.• Should include two elements: 1. Showing and telling the

employee what to do. 2. Having the employee do it

(right).• Location should be ambient.• Training materials should be the

same as used on the job.

Who will do the Training?• The magic apron method: people

train themselves the easiest ways to get the job done.

• The person that is leaving trains: teaches shortcuts and ways of breaking the rules.

• Big sister, big brother method: passes on bad habits and may resent new person as a competitor.

• The logical person to train new workers is The employer!

How employees learn the best: • When they are actively involved in the

learning process-(to do this choose a appropriate teaching method).

• Training is relevant and practical.• Training material is organized and

presented in chunks.• Training is in an informal, quiet, and

comfortable setting.• When they have a good trainer.• When they receive feedback on

performance.• When they are rewarded.

How do Employees Learn the Best?

• Learning is the acquisition of skills, knowledge, or attitudes.

• The adult learning theory is a field of research that examines how adults learn. A number of the following tips come from the adult leaning theory.

“Tell me and I forget, teachme and I remember, involveme and I learn”

- Benjamin Franklin

How do Employees Learn the Best?

Kinds of training

• Informal – on the job, “phone a friend”

• Formal – “attendance” or “completion”

• Formal – certified, vindicated– Evidence of Return on Investment– Must be planned– Allows for customisation, relates to workplace

standards

Job Instruction Training (JIT)

• Also called on the job training.

• Consists of 4 steps:

1. Prepare the learner

2. Demonstrate the task

3. Have the worker do the task

4. Follow through: put the worker on the job, correcting and supporting as nessicary.

Classroom Training Skills• Be aware of appropriate body

language and speech.• Watch how you talk to

employees. Covey respect and appreciation.

• Handle problem behaviors in an effective manner.

• Avoid time wasters.• Facilitate employee participation

and discussion.• Use visual aids to avoid

constantly referring to notes.

DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

MAKE IT FUN – RULES FOR LEARNING:

1. ASK QUESTIONS The only dumb questions are the ones you don’t

ask!

2. MAKE MISTAKES Training is a great place to make mistakes. The you

won’t make as many at work in the live environment!

DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

MAKE IT FUN – RULES FOR LEARNING Continued…

3. HAVE FUN This rule is very important

4. CHEAT Watch how other people do things or yell for help

3. Types of Training

1. Skills Training.2. Retraining.3. Cross-

Functional. 4. Team Training.

5. Creativity Training.

6. Literacy Training.7. Diversity

Training.8. Customer

Service.

Types of Training

1. SKILLS TRAINING

Focus on job knowledge and skill for:

• Instructing new hires.

• Overcoming performance deficits of the workforce.

2. Retraining

Maintaining worker knowledge and skill as job requirements change due to:

• Technological innovation• Organizational restructuring

3. Cross-Functional Training

Training employees to perform a wider variety of tasks in order to gain:

• Flexibility in work scheduling.• Improved coordination.

4. Team Training

Training self-directed teams with regard to:

• Management skills.• Coordination skills.• Cross-functional skills.

5. Creativity Training

Using innovative learning techniques to enhance employee ability to spawn new ideas and new approaches.

6. Literacy Training

Improving basic skills of the workforce such as mathematics, reading, writing, and effective employee behaviors such as punctuality, responsibility, cooperation,etc.

7. Diversity Training

Instituting a variety of programs to instill awareness, tolerance, respect, and acceptance of persons of different race, gender, etc. and different backgrounds.

8. Customer Service Training

Training to improve communication, better response to customer needs, and ways to enhance customer satisfaction.

1. Classroom Instruction

• Efficient dissemination of large volume of information.

• Effective in explaining concepts, theories, and principles.

• Provides opportunity for discussion.

• Learner does not control pace or content

• Does not consider individual differences.

• Limited practice.• Limited feedback.• Limited transfer to job.

PROS CONS

2. Video and Film

• Provides realism.• Adds interest.• Allows scheduling

flexibility.• Allows exposure to

hazardous events.• Allows distribution to

multiple sites.

• Does not consider individual differences.

• Limited practice.• Limited feedback.• Adds additional cost.

due to: * Script writers * Production specialists * Camera crews

PROS CONS

3. Computer Assisted Instruction

• Efficient instruction.• Considers individual

differences.• Allows scheduling

flexibility.• Allows active practice

for some tasks.• Allows learner control.• Provides immediate

feedback to tasks.

• Limited in presenting theories and principles.

• Limited discussion.• Transfer depends on

particular job. (Good for computer work.)

• High development cost (40-60 hours per hour of instruction at approx Rs. 10,000 per hour.)

PROS CONS

5. Simulation

• Provides realism.• Allows active practice.• Provides immediate

feedback.• Allows exposure to

hazardous events.• High transfer to job.• No job interference.• Lowers trainee stress.

• Cannot cover all job aspects.

• Limited number of trainees.• Can be very expensive (for

example, “aircraft simulators” and “virtual reality” simulators).

PROS CONS

6. On-The-Job Training

• Provides realism.• Allows active practice.• Provides immediate

feedback.• High motivation.• High transfer to job.• Lowers training cost.

• Disruptions to operations.• May damage equipment.• Inconsistent across

departments.• Inadequate focus on underlying

principles.• Lack of systematic feedback.• Transfer of improper

procedures.• Trainee stress.

PROS CONS

Overcoming Obstacles to Learning

• Reduce fear with a positive approach (convey confidence in the worker).

• Increase motivation: emphasize whatever is of value to the learner, make the program form a series of small successes, build in incentives and rewards.

• Limited abilities: adjust teaching to learners level.

• Laziness, indifference, resistance: May mean a problem worker.

Overcoming Obstacles to Learning• Teaching not adapted to

learners: Deal with people as they are (teach people not tasks), keep it simple, involve all the senses.

• Poor training program: revise to include objectives.

• Poor instructor: The trainer needs to know the job, be a good communicator + leader, sensitive, patient, helpful, etc.

Types of Evaluation Designs

Train Measure

Post Test Only. Cannot tell if there is a change in knowledge or skill.

Measure Train Measure

Pre-test with Post-test. Detects a change, but cannot tell if training was responsible.

Types of Evaluation Designs

Measure

Scientific Method: Training Group and Control Group.Compare performance of Training Group and Control

Group after training. If Training Group has higher performance, it can be attributed to a training effect.

Train Measure

MeasureNo

TrainMeasure