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HUMAN RESOURCE

MANAGEMENT

An Introduction to Basic Concepts


Management---A Review
• Definition:
“Management is the
process of efficiently
achieving the
organization goals by
coordinating the
activities of other
people”
Basic Management Functions
Planning Organizing Leading Controlling

Arranging
Setting
for human Directing Monitoring
goals
and and and
and
non human motivation evaluation
defining a
resources
strategy
Types of Organizational Resources
RESOURCES

Material Resources
Human Resources

The CEO
Land
Managers
Building
Supervisors
Machinery
Factory Workers
Technology
Field Workers
Raw Material
Peons
Finished Goods
Security Staff
Financial Assets
What is HRM all about?
• HRM is about managing the most valuable
assets of an organization---the people
working there.
• Human resource management is both an
academic theory and a business practice
that addresses the theoretical and
practical techniques of managing a work
force
HRM---Defined
• Definition: “a series of activities which:
first enable working people and their
employing organizations to agree about the
objectives and nature of their working
relationship and,
secondly, ensures that the agreement is
fulfilled" (Torrington and Hall p. 49)
Why do we need HRM---?
• Humans are different from machines
• Each individual is different from the other
• They individually and collectively work for
the achievement of organizational goals
• Humans can produce more than machines
if properly motivated
• So we need to study human resource
management as a separate subject
A Historical Background
• Previously, also known as personnel
management, industrial relations, industrial
psychology, employee relations
• Prior to mid-1960s, personnel department was
perceived as the “health and happiness” deptt.
• Their primary job activities involved:
 Planning company picnics
 Scheduling vacations
 Planning retirement parties
Goal of the HRM
• Now a days, HR department has become a
backbone of the organizations
• 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.
Basic functions of HRM
Staffing

Training
Maintenance HRM And
Goals Development

Motivation
The Staffing Function
• Activities in HRM
related with seeking,
attracting and hiring
qualified people
• It is made of several
factors like:
– Strategic HR planning
– Recruiting
– selection
The Training and Development
Function
• Activities in HRM related
with assisting employees to
develop up-to-date skills,
knowledge and abilities
– Training: acquiring better
skills for their job
– Development: preparing
employees for their next
promotion/ position
The Motivation Function
• Activities in HRM related
with helping employees
work at high energy levels
• Motivation is a function of
willingness and ability
(skills) to do the job
The Maintenance Function
• Activities in HRM related
with the maintaining
employees’ commitment
and loyalty to the
organization
• HRM must ensure that the
work environment is safe,
healthy, caring for
employees and as per the
government rules and
regulations
Assignment

Search for newspapers/websites to see


how organizations attract the job
candidates from outside the
organization
Basic functions of HRM
Staffing

Training
Maintenance HRM And
Goals Development

Motivation
The Staffing Function

1- Strategic HR Planning
2- Recruiting
3- Selection
Activities in HRM
HR Planning Recruitment Selection

Performance Training and


Orientation
Appraisal Development

Promotion and Discharge or


Compensation
Demotion Separation
The Staffing Function
• Activities in HRM
related with seeking,
attracting and hiring
qualified people
• It is made of several
factors like:
– Strategic HR planning
– Recruiting
– selection
The Staffing Function

Strategic HR Planning
Strategic HR planning
• Strategic HR planning is forecasting the future
work force needs of an organization
• It is a process by which an organization
ensures that it has the right number and kind of
people capable of effectively and efficiently
completing the organizational tasks
Forecasting the Workforce
Mission •Determining the business type

Goals and •Setting goals and objectives


Objectives

Strategy •How goals will be achieved

Structure/
•What jobs to be done and by whom
Design

People •Matching knowledge, skills, and


abilities to required job
Strategic HR planning
• The no. of managers required in any
organization depends upon its:
– Size : how big or small the organization is
– Nature: simple or complex
– Plans for expansion, establishing new units
– Turnover rate of managerial employees
– No. of managers retiring in near future
– Technological changes in the organization
requiring new hiring
The Staffing Function---Job
Analysis
• Job analysis is a systematic way of finding
activities within a job
• Similar activities are placed in one group
• Also the necessary knowledge and skills
are identified required for the job
• The purpose of job analysis is to find and
make job description, job specifications
and job evaluation
Outcomes of Job Analysis

Job Analysis

Job Description Job Specification Job Evaluation

Activities to be done Qualification required Importance of the job


Job Description
• A job description is a written statement of
what the job holder is expected to do, how
it is done, under what condition and why
• It includes the job title, duties to be
performed, and the authority and
responsibilities of the jobholder
Job Description
• Example:
Job title: Benefits Manager
Reports to: Director, Human Resource
Functions: Manages employee benefits
program for organization
Duties and Responsibilities:
--------
--------
--------
Job Description Exercise

See your job Ad.


Job Specification
• Job specification refers to the minimum
qualification a candidate must possess to
perform the job successfully
• May include information on education, skills,
experience, abilities, and some personal
characteristics (as in Army)
• It is also in written form
• Encourages potential candidates to apply
• Also discourages non-qualifying candidates
Job Specification Exercise

See your job Ad.


Job Evaluation
• Job evaluation specifies the relative value
of each job in the organization
• Provides basis for comparison for having
an equal compensation program i.e. jobs
requiring similar level of skills, knowledge,
and abilities should be equally paid
• The information is for the use of HR Deptt.
only
Exercise on Job Evaluation

See your job Ad.


The Staffing Function---Recruiting
• Recruiting is the process of seeking sources
for job candidates
• Objectives of recruiting is to inform the job
candidates about the vacancy and to receive
as many applications as possible from
potential job candidates
• The more applications received, the better the
chances for finding a suitable candidate
Factors affecting recruiting efforts
• Organization Image:
– Reputation of the organization, quality of the goods and
services, social standing
• Job Attractiveness:
– Hazardous, boring, blue collar and less paying jobs
• Internal Organizational Policies:
– Promotion, responsiveness to employee needs
• Government Influence
– Equal Employment Opportunity and other policies
Recruiting Sources
• Internal Search:
– The Internal data base of the company
– Employees referral and recommendations
• External Sources:
– Advertisement in the newspaper, company website
and on the internet
• Schools, Colleges and Universities:
• Professional Organizations in HR services
• Previous applications, lay-offs, part time workers
The Staffing Function---Recruiting
• Where to look for potential job candidates?
– From inside the organization :
• The development function enables an
organization to have the right no. of people
when they are needed
• Job positions are advertised through inter office
memos, internal communication and on the
company notice board
• Some organizations maintain a Human
Resource Information System [HRIS]
The Staffing Function---Recruiting
• Where to look for potential job
candidates?

– From outside the organization:


• Attracting potential job candidates through
job advertisement in the newspaper,
company website and on the internet
The Staffing Function---Recruiting
• Management Exercise Question:

• Is it good to fill all the vacancies from inside


or from outside the organization---?
The Staffing Function---Selection
• Once we have short listed the candidates,
the selection process starts
• It consists of:
1. The initial screening interview: to eliminate the
unmatched candidates
2. Completing the application form: company specific
application form to get specific information
3. Employment tests: assignments to test the skills
and abilities of the potential candidates
The Selection Process
4. Comprehensive interview: to get in-depth information
about the candidate
5. Background investigation: the process of verifying
information candidate has provided
6. Conditional job offer: a job offer with some conditions
7. Medical or physical examination: a check-up to
determine an applicant’s physical fitness for job
performance
8. Permanent job offer: a formal letter offering job to the
finalized candidate
Exercise: Conducting an
Effective Job Interview
Sharing your
Experiences
That’s All Folks!
Thank you
Fundamentals of Human
Resource Management
Eighth Edition

DeCenzo and Robbins

Chapter 8
Socializing, Orienting, and Developing Employees
Basic Functions of HRM

Staffing

HRM Training
Maintenance Goals And
Development

Motivation
Training and Development
• Activities in HRM related with assisting
employees to develop up-to-date skills,
knowledge and abilities

– Training: acquiring better skills for their job

– Development: preparing employees for their


next promotion/ position
Training and Development
• The training and development function
include:
1.Socialization
2.Orientation
3.Employee training
4.Employee development
5.Organizational development
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.
The Insider-Outsider Passage
• 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 Insider-Outsider Passage
The assumptions of employee socialization:
– Socialization strongly influences employee
performance and organizational stability
– Provides 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.
The Insider-Outsider Passage
The assumptions of employee socialization:
– Socialization is influenced by 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 (called the probation period).
The Insider-Outsider Passage
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.
The Insider-Outsider Passage
• The Socialization Process
– Encounter stage: Individuals
discover how well their
expectations match realities
within the organization.
– Where differences exist,
socialization occurs to imbue
(fill) the employee with the
organization’s standards.
The Insider-Outsider Passage
The Socialization Process
– Metamorphosis stage: Individuals have
adapted to the organization, feel accepted
and know what is expected of them.

(Metamorphosis= Transformation,
the process of accepting changes
in response to a new environment)
The Insider-Outsider Passage
A Socialization Process
The Purpose of New-Employee
Orientation
• 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
The Purpose of New-Employee
Orientation
• Learning the Organization’s Culture
– Culture includes long-standing, often unwritten
rules about what is appropriate behavior.
– Examples: open or closed culture, absenteeism
– Socialized employees know how things are
done, what matters, and which behaviors and
perspectives are acceptable.
The Purpose of New-Employee
Orientation
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.
– Reduce some new employee anxieties and help
them to feel good about their job choice.
The Purpose of 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.).
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.
Employee Training
Determining training needs
• Specific training goals should be based on:
– organization’s needs
– type of work to be done
– skills necessary to complete the work
• Indicators of need for more training:
– drops in productivity
– increased rejects
– inadequate job performance
– rise in the number of accidents
Employee Training
• Determining training needs
– The value added by training must
be considered versus the cost.
– Training goals should be
established that are tangible,
verifiable, timely, and
measurable.
Employee Training

Determining Training Needs


Employee Training (Methods)
• On-the-job training methods
– Job Rotation: lateral transfers allow
employees to work at different jobs and learn
a variety of tasks
– Understudy Assignments: working with a
senior manager or coach who can provide
support and encouragement
Employee Training (Methods)
• Off-the-job training methods
– Classroom lectures: lecture convey specific
technical, interpersonal, or problem solving skills
– Films and videos: specially made media
productions
– Simulation exercises: creating an artificial work
environment identical to the real life situations;
includes case studies, exercises and role plays
Employee Development
• This future-oriented set of
activities is predominantly an
educational process.
• All employees, regardless of
level, can benefit from the
methods used to develop
managerial personnel.
Employee Development Methods
• Job rotation involves moving
employees to various positions in
the organization to expand their
skills, knowledge and abilities.
• The employee works in different
departments for a short period
and finally comes back to his
original position
• Promoted when there is a
suitable vacancy
Employee Development Methods

• Job enrichment is assigning additional


responsibilities to the employees at their
current position
– No increase in authority or promotion
• Assistant-to positions allow employees with
potential to work under and be coached by
successful managers
Employee Development Method
• Committee assignments provide
opportunities for:
• decision-making
• learning by watching others
• becoming more familiar with organizational
members and problems
– Lecture courses and seminars benefit from
today’s technology and are often offered in
a distance learning format
(Teleconferencing)
Employee Development
Employee development methods
– Simulations 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.
Organization Development
What is Organization Development?
• Organization changes from time to time
• The process of moving forward through
continuous improvement, diversity, and
work process engineering is called the
organization development.
• A person who is well versed in
organization dynamics and assist
employees in adapting to changes is
called the change agent
Organization Development
• OD efforts support changes that are
usually made in four areas:
– The organization’s systems
– Technology
– Processes
– People
Organization Development
OD Methods
• Organizational development facilitates
long-term organization-wide changes.
• OD techniques include:
– survey feedback
– process consultation
– team building
– Inter-group development
Organization Development
Techniques
• Survey feedback assesses
organizational members’
perceptions and attitudes regarding
their jobs and the organization.
• The summarized data are used to
identify problems and clarify issues
so that commitments to action can
be made.
Organization Development
Techniques
• Process consultation uses
outside consultants to help
organizational members
perceive, understand, and act
upon process events.
Examples include workflow,
informal relationship among unit
members, and formal
communication channels
Organization Development
Techniques
• Team building may include:
– goal setting
– development of interpersonal relationships
– clarification of roles
– team process analysis
• Team building attempts to increase trust,
openness, and team functioning.
Organization Development
Techniques
• Inter-group development attempts to
increase cohesion among different work
groups.
• It attempts to change attitudes,
stereotypes, and perceptions that one
group may have towards another group
Organization Development
The Learning Organization
• Values continued learning and believes
a competitive advantage can be gained
from it.
• Characterized by:
– capacity to continuously adapt
– employees continually acquire and share
new knowledge
– collaboration across functional specialties
– teams are an important feature
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.
Evaluating Training and
Development Effectiveness
Performance-Based Evaluation Measures
– Post-training performance method.
Employees’ on-the-job performance is
assessed after training.
– Pre-post-training performance method .
Employee’s job performance is assessed
both before and after training, to determine
whether a change has taken place.
Evaluating Training and
Development Effectiveness
Performance-Based Evaluation Measures
• Pre-post-training performance with
control group method.
– Compares the pre-post-training results of the
trained group with the concurrent job
performance of a control group, which does
not undergo instruction.
– Used to control for factors other than training
which may affect job performance.
Basic HRM Functions

03-The Motivation Function


Basic functions of HRM
Staffing

Training
Maintenance HRM And
Goals Development

Motivation
The Motivation Function
• Activities in HRM related with helping
employees work at high energy levels
• Motivation is a function of willingness and
ability (skills) to do the job

• The formula for success:


(Knowledge + Skills) x Attitude = Performance
What is Motivation?
• Motivation is a general term applying to the
entire class of drives, desires, needs, wishes
and similar forces that makes us work
• Different people have different motives
• For effective Human Resource
Management, it is important to know what
really motivates people
The Motivation Theories
Theory X and Theory Y
Maslow’ Hierarchy of Needs
ERG Theory
Two Factors Theory
Reinforcement Theory
McGregor’s Theory X and Theory Y
• Provide an insight into the nature of
people in relation to their work and about
their work behaviors
• These theories are based on the
managers’ assumptions about the people
they are managing
• There in nothing “good” or “bad” about
these theories
Theory X vs. Theory Y
• Average human beings have • Work activities are as
an inherent dislike of work natural as rest or play
and will avoid it if they can • People will work willingly for
• People must be controlled, the achievement of
directed and threatened to objectives to which they are
make them work committed
• People prefer to be directed, • Commitment level is related
wish to avoid responsibilities, to the rewards expected
have relatively little ambition, • People will not only accept
and want security above all responsibilities, but also
seek it
Theory X vs. Theory Y
• The two theories lead to two different
approaches towards managing people
• Theory X is pessimistic, static, and rigid.
Control is primarily external i.e. imposed
by the supervisor
• Theory Y is optimistic, dynamic, flexible
with an emphasis on self-direction and
matching individuals needs with the
organizational demands
Exercise

Your Opinion about Theory X and


Theory Y
Maslow’s Hierarchy of Needs
• One of the most widely quoted motivation
theories (Marketing, Economics, Psychology, Management, HRM)
• Human needs are in the form of a
hierarchy, ascending from lowest to the
highest (as a ladder)
• When one set of needs in fulfilled, it does
not motivate people anymore and they
seek for the fulfillment of next level needs
Maslow’s Hierarchy of Needs
Self-
actualization
Esteem Needs
Power, Status, Self-respect
Social Needs
Affection, Belongings and Friendship

Safety Needs
Security and protection

Physiological Needs
Food, Water, Shelter, Sleep
Exercise
How can we group various job related
incentives according to Maslow’s
theory?
Application of Maslow’s Theory
General Examples Organizational Example

• Food Basic Salary


• Stability Pension Plan
• Friendship Friends at work
• Status Job title
• Achievement Challenging Job
ERG Theory ( Clayton Alderfer)
• Similar as Maslow’s Theory
• Classifies Needs into three broader classes
1. Existence Needs: (Physiological and Safety Needs)
2. Related Needs: (Social Needs)
3. Growth Needs: (Esteem & Actualization Needs)
• People may be motivated by needs on
several levels at the same time
ERG Theory ( Alderfer)
Satisfaction Progression Principle:
satisfaction of one level of need encourages
concern with the next level.
Frustration Regression Principle:
when we are continually frustrated in our
attempts to satisfy higher level need, we may
cease to be concerned about that need and
may focus on a lower level needs
Herzberg’s Two Factor Theory
Herzberg believes that there are two types of
factors:

1. Dissatisfiers or Maintenance Factors:


(Extrinsic)
Factors such as pay, working conditions,
supervisors, company policies and fringe
benefits.
Herzberg’s Two Factor Theory
2. Satisfiers or Motivating Factors: (Intrinsic)
Factors such as achievement, recognition, the
work itself, responsibility, advancement, and
growth.
Herzberg concludes that hygiene factors are
necessary to keep workers from feeling
dissatisfied but only motivators can lead
workers to feel satisfied and motivated.
Maslow’s and Herzberg’s Theories
Challenging Work
Achievement

Motivators
Self-actualization Growth in Job
Responsibility
Esteem Needs Advancement
Recognition
Affiliation or
Acceptance

Maintenance Factors
Status
Security or Interpersonal relations
Safety Quality of supervision
Company policies
Physiological Working conditions
Needs Job security
Salary
Skinner’s Reinforcement Theory
• Law of Effect: Behaviors having pleasant or positive
consequences are more likely to be repeated and
behavior having unpleasant or negative
consequences are less likely to be repeated.
• Individuals can be motivated by proper design of
their work environment and by praise for their
performance
• Punishment for poor performance produces
negative results
Types of Reinforcement
1. Positive Reinforcement: A techniques
aimed at increasing a desired behavior by
providing pleasant or rewarding
consequences.
2. Negative Reinforcement: A technique
aimed at decreasing an undesired
behavior that involves providing
unpleasant consequences
Then----What Motivates People?
• Extrinsic Rewards: include benefits, praise
and recognition, status symbols and money
(Salary, wages, bonuses, company-paid insurance, medical facilities)
• Intrinsic Rewards: include a feeling of
accomplishment and self-actualization
• Pay may be based on individual, group and
organizational performance
Challenging
Challenging Equitable
Equitable
Jobs
Jobs Rewards
Rewards

Supportive
Supportive Good
Good Work
Work
Colleagues
Colleagues Environment
Environment
Challenges of
motivating employees
Challenges of motivating
employees
Changing workforce
– younger generation employees have different
needs and expectations to senior workers
– people have more diverse values – results in
more variety in what motivates employees
Cultural values
– globalisation has added to diversity
Motivating People at Work
Motivating People at Work

 Provide challenging projects.


 Allow them the autonomy to be productive.
 Reward with educational opportunities.
 Reward with recognition.
 Express interest in what they are doing.
Motivating People at Work

 Provide
flexible work, leave, and pay
schedules.
 Provide child and elder care benefits.
 Structure working relationships to account
for cultural differences and similarities.
That’s All
Folks!
Wish you Best of Luck;
Enjoy
Basic functions of HRM
Staffing

Training
HRM
Maintenance And
Goals
Development

Motivation
The Maintenance Function
• Activities in HRM related with maintaining
employee’s commitment and loyalty to the
organization
• HRM must ensure a safe and healthy
working environment; caring for the well
being of employees
Health & Safety
Occupational health & safety refers to the
physiological (physical and psychological)
conditions of a workforce that result from
the work environment provided by the
organization.
Elements of Workplace
Safety and Health
Physical Conditions:
– Conditions resulting from the workplace
environment that include occupational
diseases and accidents, such as:
• Repetitive motion injuries–Packing and
Assembly line workers
• Back pain- jobs requiring continuous sitting or
pressure on low back
• Asthma- chronic allergy due to continuous
exposure to Allergens
Occupational diseases & accidents
 Cancer- several carcinogenic chemicals
 HIV/AIDS, Hepatitis B & C, other communicable
diseases
 Loss of limb (when working with machines and as
in de-mining programs)
 Cardiovascular disease
 Loss of life
Psychological Conditions:
– Conditions resulting from the workplace
environment that result from
organizational stress and low quality of
working life. These include:
• Dissatisfaction, withdrawal
• Mistrust in others, irritability
Causes of Accidents
Unsafe conditions
 Physical conditions
• defective equipment
• inadequate machine guards
• lack of protective equipment
• Environmental conditions
• Noise
• dust, fumes
• stress
Unsafe behaviors
Lack of proper training
Causes of Accidents
 Human
– Overwhelming majority
– Carelessness
– Intoxication
– Daydreaming
– Inability to do the job
– Other human deficiency
How to Reduce Workplace
Accidents?
 Reduce unsafe conditions.

Reduce unsafe acts.

Use posters and other propaganda.

Provide safety training.


Use positive reinforcement.

Emphasize safety.

Establish a safety policy.


 Set specific loss control goals.

Conduct safety and health inspections


regularly.

Monitor work overload and stress.

Safety committees.
What is Stress?
Stress is an adaptive response,
moderated by individual differences,
that is a consequence of any action,
situation, or event that places
special demands on a person.

128
A Model of Stress
Potential Sources Consequences

Environmental Individual Psychological


Factors Differences Symptoms

Organizational Physiological
Experienced
Factors Symptoms
Stress

Individual Behavioral
Factors Symptoms
Prentice Hall, 2001 Chapter 18 130
Is stress good or bad?
Stress Management and
Prevention
Stress Management
Programs
 Training
– Time management
– Coping skills
 Wellness
– Assessment
– Self-help materials
– Group programs
 Relaxation
Enough for
today. . .

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