mgt 351 lecture_series-libre
TRANSCRIPT
Human Resource Management
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©Muhammad Faisol Chowdhury Senior Lecturer of HRM, School of Business, North South University
TransactionalHRIS
Payroll Administrative
Traditional
Planning Job Analysis Recruitment Selection Training
Performance Appraisal Salary & Compensation
OH&S Industrial Relations International HRM
TransformationalEthical & Legal Environment
People Development Performance Management
Knowledge & Culture Diversity Management Change Management
Contemporary
Surveillance Humour Management
Office Context Emotion Management
Motivation & Empowerment Etc
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HRM Functions
Hard Approach
“Some people are not used to an environment where
excellence is expected.” !
Steve Jobs CEO, Apple
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HRM Approaches
Soft Approach
“Recently, I was asked if I was going to fire an employee who made a mistake
that cost the company $600,000. No! I replied. I just spent $600,000
training him. Why would I want somebody to hire his experience?”
!
Thomas J Watson CEO, IBM
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HRM Approaches
A line function is one that directly advances an organisation in its core work. E.g. production, sales, marketing.
Line Managers direct the work of subordinates in accomplishing the organisation’s goals.
A staff function supports the organisation with specialised advisory and support functions. E.g. human resources, finance, public relations.
Staff Managers assist and advice line managers in accomplishing the organisation’s goal.
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Line & Staff
Can HRM be defined by using the following words? !
employee, people, manage, productive, meaningful, profit, employer, relationship, objective, happy, need, harmonious, worker, use, business, satisfaction,
success, growth, organisation
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HRM Definition
• Definition of HRM
• Need of HRM
• Functions of HRM
• Hard and soft HRM approach • Line and staff function • Changing business environment and HRM
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Summary
Employer’s Obligation
Employee’s Obligation
Ethical issues, legal duties and obligations defined in law that are fulfilled by both parties
Legal written document / agreement between employer and employee
specifying legal obligations of each
Employment Contract
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Obligations
Psychological Contract between
employer and employee
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Personality Iceberg
Surface Level Visible, cognitive factor which
are easy to change
Deep Level Invisible, emotional factor
which are difficult to change
Behaviour
Values
Beliefs
• EEO - Equal Employment Opportunity • AA - Affirmative Action • Reverse Discrimination • Anti Discrimination • Workplace Discrimination • Harassment • Direct Discrimination • Indirect Discrimination
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Ethics & HRM
Age Career status Criminal conviction
Industrial activity Marital status Physical features
Political belief Religion Experience
Gender Personality Country
Association involvement
Education & Institution
Sexual preference
Behaviour & Attitude
Personal characteristics
Family information
Ethnicity Medical history Pregnancy
Disability Culture Nepotism
Which of the following statuses can be considered discriminatory when a work related decision is made based on them?
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Workplace Discrimination
Benefits ?
Problems ?Challenges
?
Research shows that - ✔ Performance of a diverse workforce is better than a homogenous workforce.
✔ Diversity when mismanaged can become very costly for organisation.
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Managing Diversity
Are we aware of ethical business practice?
!
What role does HRM play in ethical business practice?
!
How can you encourage your organisation to involve in ethical business practices?
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Ethical Business Practice
What is she waiting for? !
Why the wait is so long? !
What can you do about it? !
What can HRM do about it?
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Ethical Business Practice
Child Labour should we accept or ban it?
What issues to consider if we accept or ban it?
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Ethical Business Practice
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Summary
• Employment and Psychological contract • Ethics and HRM
• Diversity Management • Ethical Business Practice
Human Resource Planning is a strategy of
Acquisition Development Retention
of people of an organisation under changing business conditions
Utilisation
Globalisation, Economy, Politics, Environment, Demography, Technology
Strategic HRM balances firm’s internal strengths and weaknesses with external opportunities and threats (SWOT)
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HR Planning
A key function of HR planning is a systematic process of manpower planning and forecasting
Forecast supply
Forecast demand
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Manpower Planning & Forecasting
It is determined by individuals’ level of contribution and satisfaction in their job role. !
Engaged employees are enthused, committed, satisfied, and in gear. !
They use their talents and discretionary efforts to make a positive and sustainable difference in business.
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Employee Engagement
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Hamsters & Honeymooners are those who have high levels of job satisfaction but low levels of contribution.
In the organisation Hamster employees may be working enthusiastically but on the wrong things so that they do not deliver the results needed.
Honeymooners are new either to the organisation or to their role. They are excited about this new stage of their career and about making a difference in your organisation, but they are not fully productive.
Employee Engagement Process
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Employee Engagement Process
Disengaged are those who are most disconnected from organisational priorities and are not getting what they want from their work.
Crash & Burners are those who are high performers, delivering what the organisation needs, but disillusioned or not achieving their personal definition of success.
Almost Engaged are those who are reasonably satisfied with their jobs and are among the highest performers.
Engaged are those who contribute fully to the success of the organisation and find great satisfaction on their work.
A successful Human Resource Planning ensures that an organisation -
• has right number of employees • with right qualification and skill • hired at the right time • appointed at the right place • are doing the right tasks
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Successful HRP
• Human Resource Planning • Manpower Planning & Forecasting • Business environment • Five Forces Model • Three Generic Strategies
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Summary
Direct observation of employees engaged in different tasks. !
What are the advantages and disadvantages of this technique?
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JA Data Collection - Observation
Interviewing employees to find out the tasks they perform. !
What are the advantages and disadvantages of this technique?
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JA Data Collection - Interview
Distributing questionnaire to employees to collect their responses. !
What are the advantages and disadvantages of this technique?
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JA Data Collection - Questionnaire
Daily listing of tasks performed by workers along with time spent for each task. !
What are the advantages and disadvantages of this technique?
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JA Data Collection - Record & Log
• It is a matrix prepared for each employee with each job. The matrix is prepared with the scale of:
• the basic skills needed for the job
• the minimum level of each skills required for the job
• It shifts employee focus from specific job duties to developing new skills.
• It works as a constant reminder that employees need to increase their skill and determines skill based pay system.
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Skill Matrix
• It is a job analysis method that focuses on the skills and behaviours needed to successfully perform a job.
• Instead of thinking people having jobs with a particular set of activities limited to job descriptions, HR Managers focus on person-oriented approaches.
• Employees are considered as ‘Human Resources’ of the organisation.
• Focusing on how individual employees support the need of the organisation.
• Example: MTO positions
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Competency Profiling
Standardise work procedure where employees perform repetitive, precisely defined tasks. Also known as assembly line or job simplification. It is associated with Fordism and Taylorism.
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Job Design - Specialisation
Standardise work procedure where employees perform repetitive, precisely defined tasks. Also known as assembly line or job simplification. It is associated with Fordism and Taylorism.
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Job Design - Rotation
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Dejobbing - broadening the responsibilities of job and encouraging employees work as team and not to limit themselves to job description. !
Enrichment - vertical expansion of job adding higher level task, without changing the status of the employee. !
Enlargement - horizontal expansion of job adding more tasks from same level, without changing the status of the employee. !
Morphing - practicing both enrichment and enlargement with same job.
Job Design - Dejobbing, Enrichment, Enlargement
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• JCM (Job Characteristics Model) - Developed by Oldham & Hackman in 1980, a framework for job design by addressing employee needs.
• Skill Variety - employee needs to perform multitasking by using different knowledge and skills.
• Task Identity - job holder should be able to see how their work contributes to the organisation goal.
• Task Significance - the degree to which performance of the job affects the lives and work of others.
• Autonomy - relates to independence, decision-making freedom, job holder has.
• Feedback - receiving information about how effectively the job holder has completed the task.
Job Design - JCM
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• Job Analysis - job description and job specification • Job Analysis process and steps • Job Analysis data collection techniques • Skill Matrix and Competency Profiling • Job Designing and techniques
Summary
Talent acquisition for productivity and profitChapter: 4 !
Recruitment and Selection60
right employee for right job
Chapter 5: Recruitment & Selection
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Getting the perfect employee isn’t easy
Recruitment is a process of attracting a pool of suitable applications for a vacant position. !
Selection is a process of choosing the best person for that vacant position from the pool of recruited applicants.
Acquisition
Job Analysis / Exit Interview
!
What fits my business objective?
Job Offer / Contract !
!
Can I offer the candidate a job?
Conduct Selection Process
!
Does a candidate match the requirements?
Job Description !
!
What do I want the job to deliver?
Personnel Specification !
What knowledge, skills, abilities do I
want for this position?
Evaluate Effectiveness !
Did my recruitment & selection procedure meet my objectives?
Employment Terms & Conditions
!
What are the contractual issues relating to the job?
Shortlist Applications !
!
Who satisfies the short listing criteria?
Communicate Vacancy !
!
How will I reach my target audience?
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Acquisition Planning
Labour Market Demand & supply of manpower, knowledge economy, globalisation,
outsourcing, technology, open market economy
Industry Purpose of business, nature & type of business, corporate image,
organisational branding
Demography Population, age, ethnicity, gender, birth, death, migration, education,
nationality, religion
Target Role Job duties & responsibilities, job context, physical & emotional labour,
aesthetic skills,
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Acquisition Process - Analysis
Social Networks Print Media
Recruitment Agency
Organisation’s Website
Campus Recruitment
Headhunting
Referral
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Recruitment Sources
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False Positive and False Negative Halo / Horn effect Contagious bias Logical error
Validity Reliability
Errors and Remedies
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Job Fit - use of tests and interview questions that relate specifically to the tasks, responsibilities, qualifications and experiences required to perform the job.
Organisation Fit - use of personality tests to find out how well an applicant’s personality fits the unique culture of the organisation.
Perfect Fit
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Induction is the orientation session of the new employees. It teaches new employees what they need to know about their new work environment to
perform their jobs properly.
Feel welcome and comfortable
Begin the socialisation
Understand the organisation
Know what is expected at
work
Orientation Helps New Employees
Induction Programme
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Company Organisation and Operations
Safety Measures and Regulations
Facilities Tour
Employee Orientation
Employee Benefit Information
Personnel Policies
Daily Routine
Induction is the orientation session of the new employees. It teaches new employees what they need to know about their new work environment to
perform their jobs properly.
Induction Programme
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• This is an employee’s final interview following separation.
• The purpose is to find out why the employee is leaving (if the separation is voluntary) or to provide counselling and assistance in finding a new job.
• Organisations underestimate the value of exit interviews for gathering reliable intelligence about why their staff leave.
Exit Interview
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• Recruitment & Selection • Hiring preparation and analysis • Recruitment sources • Recruitment and Selection errors • Job / Organisational fit • Induction programme • Exit Interview
Summary
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Performance Appraisal means evaluating an employee’s current and previous performance relative to his or her performance standards.
PA essentials
Accessing individual’s actual performance
relative to the standards
Setting work standards
Providing feedback to the individual
Performance = f(A, M, O) A = ability, M = motivation, O = opportunity
Performance Appraisal
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Organisational Operational Personal
Fulfilment of Corporate Aims and Objectives
Performance Appraisal Needs
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• A scale that lists a number of traits and a range of performance for each.
• The employee is then rated by identifying the score that best describes the level of performance for each trait.
• Traits and job factors are taken from Job Analysis.
• Simplest and most popular method.
Graphic Rating Scale
Performance Appraisal Techniques
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Alternation Ranking Scale
• Ranking employees from best to worst on certain trait, choosing highest, then lowest, until all are ranked.
• Simple and easy method.
Performance Appraisal Techniques
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Critical Incident Report
• Keeping a record of uncommonly good or undesirable examples of an employee’s work related behaviour and reviewing it with the employee.
!
• Manager then uses the record to assess the employees’ performance when it is time for PA.
!
• Not helpful for comparing employees and making salary decisions.
Performance Appraisal Techniques
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• A written statement describing employee’s strengths, weaknesses, past performance and future development options.
!
• Prepared by managers for their subordinates.
!
• Depends on managers writing skills.
!
• Bias may occur.
Essay Description
Performance Appraisal Techniques
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MBO is a comprehensive and formal organisation-wide, goal-setting and
appraisal programme, used sometimes as a primary appraisal
method or a supplementary method.
MBO should follow SMART criteria
Management by Objective
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• Unclear Standard
• Halo / Horn Effect
• Central Tendency
• Leniency or Strictness
• Recency effect
• Social Comparison Bias
• Any other form of bias
Performance Appraisal Errors
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Self-Rating
Subordinates
360-Degree Feedback
Potential Appraisers
Immediate Supervisor
Peers
Rating Committee
Performance Appraiser
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• Performance Appraisal
• Need of Performance Appraisal
• Steps of Performance Appraisal
• Performance Appraisal process
• Performance Appraisal techniques
• Management by Objective
• 360-degree evaluation
• Performance Appraisal errors
• Performance Appraisers
SummarySummary
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Chapter 7: Training & Development
Development !
process of providing employees necessary KSA for doing current and future jobs
Negligent Training A situation where an employer fails to train adequately, and the employee subsequently harms a third party.
Training !
process of providing employees necessary
KSA for doing current jobs
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Task Analysis !
A detail study of the job to determine what specific skills the job
requires.
Performance Analysis !
A process of verifying the performance deficiency and
determining training need to correct it.
Training Need Analysis
Training Need Analysis
Organisational conducted to determine the fit between an
organisation’s internal environment and its
stated goal
detailed study of a job to identify the skills required so that an appropriate training programme may be
developed
Operational (task)
assessing the
performance of
employees to determine
whether a gap exists
between current and
desired performance
identifying all the skills employees possess - even those not currently used
on the job
Person
Skill Need Analysis
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Training Need Analysis
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Training Need Analysis
Performance Appraisals
Job-Related Performance Data
Observations
Interviews
Assessment Centre Results
Individual Diaries
Attitude Surveys
Tests
Methods for Identifying
Training Needs
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Types of Training
• On-the-Job
• Apprenticeship
• Job Instruction
• Coaching
• Mentoring
• Lectures / Seminar / Workshop
• Audiovisual / Multimedia
• Vestibule / Simulated
• Computer-based (CBT) / Internet
• In-basket Exercise
• Role-play
• Action learning
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Types of Training
• Job rotation
• Action learning
• Succession planning
• Case study / Management games
• Workshop / Seminar
• University programme
• Leaderless group exercise
• In-house development centres / Corporate universities
Reaction Learning Behaviour ROI
Organisational Benefit
Personal Benefit
Review
objective, flexibility, process & outcome evaluation, trainer, future improvement
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Training Evaluation
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Learning Environment
!
• Knowledge Management
• Learning Organisation
• Sharing Organisation
• Linking training & development with rewards & career management
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Summary
• Training & Development
• Training Process
• Training Need Analysis
• Strategic Training Plan
• Types of Training
• Training Evaluation
• Learning Environment
Merit Pay / Merit Raise - any salary increase awarded to an employee based on the performance.
Scanlon Plan - Joseph Scanlon (1937)
• Philosophy of cooperation - managers and workers must rid ‘us’ and ‘them’ attitude, then developing a sense of ownership of the company.
• Identity - making employees understand company’s business objectives in terms of product, price, customers, cost.
• Competence - careful employee selection and training for high competency level.
• Involvement System - employee involvement in suggestions to department and upward hierarchical levels of the organisation.
• Sharing of Benefits - sharing suitable ratio of payroll with total sales amount.
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Remuneration Types
• Profit-sharing plan
• Gainsharing plan
• Stock-ownership plan
• Cost reduction plan
• Perquisite
• Production bonus plan
• Sales commission
• Piece rate
• Standard hour plan
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Remuneration Types
• Severance pay
• OH&S compensation
• Group life insurance
• Pension / retirement plan
• EAP
• Work-life benefits
• Cafeteria benefit
• Golden handshake
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Remuneration Types
• External Consideration
• Principles of the organisation
• Laws of the land
• Socio-economic condition
• Demand-supply scenario of talents in the industry
• Salary survey
• Job evaluation & Benchmarking
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Designing Remuneration Plan
• Internal Consideration
• Monetary / non-monetary needs
• Effort - Reward relationship
• Need maximisation
• Equity theory
• Performance contingent
• Membership contingent
DESIGNING REMUNERATION PLAN
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Designing Remuneration Plan
• Open / Secret pay system
• Centralised / Decentralised
• Broad-banding
• Fit with organisation’s culture.
• Fulfilment of the needs of executive employees.
• Establishment of pay rates for workers.
• Properly linked with performance, competence, achievements, etc.
• Issues related with taxation.
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Strategic Consideration
Career
Career - the occupational positions a person has had over time.
It is the occupations undertaken for a significant period of a person’s life that offers
opportunities for progress.
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Career Management
Career Management
Career Planning Career Development
the process for enabling employees to better understand and develop their
career skills and interests, and to use these skills and interests more effectively.
Employee’sPerspective SWOT
!
awareness of employees own personal skills, interests, knowledge, etc. and establish
action plan to attain goal
Organization’s Perspective Support
!
lifelong series of activities that contribute to employe’s career exploration, establishment,
success and fulfillment
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Career Cycle
Career Cycle is the five stages through which a career evolves
Career
Cycle
Growth (0 - 14)
Establishment (24 - 44)
Exploration (14 - 24)
Maintenance (44 - 65)
Decline (65 +)
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Career Orientation
John Holland says that a person’s personality is an important determination of career choice
Holland’s
Occupational
Orientation
Realistic
Artistic
Enterprising
Conventional
Social
Investigative
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Realistic - occupations that involve
physical activities, requiring skill,
strengths and coordination.
Example - forestry, agriculture, mining,
etc.
!
Investigative - occupations that involve
cognitive abilities (thinking, organising,
understanding) rather than affective
activities (feeling, acting, emotional).
Example - biologist, chemist, teacher,
etc.
Career Orientation
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Career Orientation
Social - occupations that involve
interpersonal rather than intellectual or
physical activities
Example - clinical psychology, social
work, foreign service, etc.
!
Conventional - occupations that
involve structured, rule regulated
activities.
Example - accountant, banker, army,
etc.
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Career Orientation
Enterprising - occupations that involve
verbal activities aimed at influencing
others.
Example - manager, lawyer, PRO, etc.
!
Artistic - occupations that involve self-
expression, emotion, artistic creation.
Example - artists, advertising,
musicians, etc.
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Edger Schein of MIT identifies Career Anchors which are the pivots (crucial factors)
around which a career swings.
People become conscious of them as a result of learning about their talents and
abilities, motives and needs, attitudes and values.
Technical / Functional
Managerial Competency
Creativity
Autonomy / Independence
Security
Career Anchors
Career Anchors
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Career Anchors
Technical / Functional - people who
have strong technical / functional
interest, ability, will chose related
jobs. Example - engineer,
architecture, etc.
Managerial Competency - people
who have analytical, interpersonal
and emotional ability will become
managers. Example: HR manager,
Finance manager, etc.
Creativity - aspire to build / create
something creative that is entirely
their own product which will bear
their name. Example: artist, singer,
advertising people, etc.
Autonomy / Independence - people
who desire to be their own,
independent decision making,
establishing own company.
Example: self employed, small retail
business, etc.
Security - people who value long-
term career stability, job security
with a decent income and a stable
future. Example - job in a MNC or in
a large organization.
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Promotion
Promotion - advancements to
positions of increased responsibility.
Promotion Decisions:
Seniority or competency?
How to define and measure
competency?
Formal or informal process?
Vertical, horizontal, other move?
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Career Issues
Career Counselling - giving
information and advice to employees
to facilitate their career planning and
development.
Reality Shock - results of a period that
may occur at the initial career entry when
the new employee’s high job expectation
confronts the reality of a boring,
unchallenging job.
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Career Issues
Transfer - reassignments to similar
positions in other parts of the firm.
Outplacement - assistance given to
terminated employees to help them find
jobs with other organisation.
Retirement - the point at which one gives
up one’s work because of different
reasons.
It is a bittersweet experience. Why?
Preretirement counselling - making
retirement easy for employees by
providing advice.
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OH & S - BASIC UNDERSTANDING
Concerned with the provision of a safe and healthy work environment.
Involves injury and disease caused by work, or by combinations of work and non-work activity, or involves the effects of injury and disease not caused by work but having implications for the workplace.
To assure so far as possible every working person in an organisation safe and healthful working conditions and to preserve the human resources.
Efforts to improve conditions of living for a group of employees / workers.
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Employees should be protected from needless pain and suffering.
Employers have legal obligations to take responsible measures to protect the health and safety of their employees.
Accidents, illness and other causes of employee absence and impaired performance cost the employer money.
Employer brand image in the market can suffer if its health and safety record is bad.
Genuine sense of CSR.
Improve moral and loyalty of employees.
OH & S - NEED ANALYSIS
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! Ultimate responsibility for employee wellbeing rests with the employer since employer has the greatest control over the working environment.
Text
OH & S - PERSPECTIVES
131
In USA, average 5,559 workers die in workplace incidents.
In USA, yearly over 4.4 million occupational injuries and illness result from accidents at work.
In Australia, yearly 5% of the total workforce suffer from work related injuries.
In the UK, 1.3 million workers per year suffer from workplace accidents.
In just one province (Shenzhen), China, 2 employees die and more than 200 lose arms and legs per week in workplace accidents.
OH & S - FACTS
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Direct Cost:
instant cost (paid to the employee, hospital fee, medicine, etc) = $3,000
Transportation = $500
Forklift repair = $2,000
Total direct cost = $5,500
Indirect Cost:
Lost production = $10,000
Long term medication = $5,000
Forklift maintenance = $2,000
Legal proceedings = $10,000
OH&S claim by employee = $25,000
Fine imposed on employer = $10,000
Total indirect cost = $62,000
OH & S - COST
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Improper OH&S maintenance is very expensive for the country also.
Yearly economic loss in Australia is $27 billion.
In USA, the annual estimated economic loss is $7 billion.
In the UK, annual cost of £2.5 billion occurred to employers for workplace accidents.
OH & S - COST
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Harry McShane, age 16, 1908. Pulled into machinery in a factory in Cincinnati. His arm was ripped off at the shoulder and his leg broken. No compensation paid.
After more than 100 years, the situation is almost same in many organizations
Many employers still do not provide any compensation to their injured employees.
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OH&S Planning
Corporate Policy Formation
Hazard Identification & Risk Control
Employee Awareness & Training
Establish consultative agreement
Establish consultative relationship
Set specific policies & objectives
Promote, maintain & update
OH & S - STRATEGIC PLANNING
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Ventilation
Temperature
Lighting
Cleaning & decoration
Space
Sanitary convenience
Washing facility
Drinking water
Eating and resting facility
First Aid
Fire safety
Computer / desk job and fatigue
Some key traditional causes of ill-health at work, considered as OH&S issues:
OH & S - CAUSES & ISSUES
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Stress - a condition of strain that affects one’s emotion, thought process and physical conditions.
Stressors - conditions that cause stress.
All employees need to recognise that stress need not be destructive.
Burnout - total depletion of physical and mental resources caused by excessive striving to reach unrealistic work related goals.
Too much stress and burnout may lead towards suicide.
Rust out - Stress produced from having too little to do.
OH & S - CAUSES & ISSUES
138
Sick Building Syndrome - collection of problems relating to the poor design and maintenance of the workplace. Example - poor ventilation, excessive noise, poor thermal control, etc.
Substance Abuse - HIV / AIDS, drug, alcohol, smoking, etc.
OH & S - CAUSES & ISSUES
139
Chemical Waste & Radiation
Oil from the Deepwater Horizon spill pools against the Louisiana coast along Barataria Bay Tuesday, June 8, 2010
OH & S - CAUSES & ISSUES
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Patches of oil from the Deepwater Horizon spill are seen from an underwater vantage, Monday, June 7, 2010, in the Gulf of Mexico south of Venice, Louisiana
OH & S - CAUSES & ISSUES
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An exhausted oil-covered pelican tries to climb over an oil containment boom, Louisiana, June 5, 2010
OH & S - CAUSES & ISSUES
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This image from high resolution video made June 3, 2010, shows oil continuing to pour out at the site of the Deepwater Horizon oil well in the Gulf of Mexico
OH & S - CAUSES & ISSUES
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Chernobyl Nuclear Plant Disaster 1986, Russia
Ship Breaking Yard, Sitakunda, Chittagong
OH & S - CAUSES & ISSUES
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Workplace Bullying - Offensive / violent behaviour occurring in the office with other colleagues.
OH & S - CAUSES & ISSUES
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Air Rage - violent behaviour by airline passengers.
Economy Class Syndrome - blood clots caused by cramped airline seating arrangements.
Sexual Harassment - sexually suggesting remarks, unwanted advancements, etc.
Work-family Conflict - conflicting demands made on an individual by home and work.
OH & S - CAUSES & ISSUES
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Employee Assistance Program - programs offered by firms to provide support and counselling to employees undergoing stress or encountering other problems arising in the workplace or in their personal life.
OH & S - EAP
148
List of possible EAP:
Advice & support
Counselling
Personal development
Gym facility
Canteen
Work environment
Religious and moral development
Employees can live with stress quite happily if they plan, keep a balance between work and leisure, and practice stress-reducing exercise and habits regularly.
EAP
149