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Managing Human Resources

Managing Human Resources

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The Importance of HRM

As a significant source of competitive advantage
People-oriented HR creates superior shareholder value

As an important strategic tool

Achieve competitive success through people by treating employees as partners

To improve organizational performance

High performance work practices lead to both high individual and high organizational performance.

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The HRM Process

ENVIRONMENT COMPENSATION& INCENTIVES

SELECTION& RECRUITMENT OF PERSONNEL

PERFORMANCE

PERFORMANCE EVALUATION

DEVELOPMENT& TRAINING

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Environmental Factors
Employee Labor Unions
Organizations that represent workers and seek to protect their interests through collective bargaining.
Collective bargaining agreement
A contractual agreement between a firm and a union elected to represent a bargaining unit of employees of the firm in bargaining for wage, hours, and working conditions.

Governmental Laws and Regulations

Limit managerial discretion in hiring, promoting, and discharging employees.

Affirmative Action: Organizational programs that enhance the status of members of protected groups.

Demographic Trends

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Human Resource (HR) Planning

The process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks. Helps avoid sudden talent shortages and surpluses. Steps in HR planning:
Assessing current human resources

Assessing future needs for human resources

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Current Assessment
Human Resource Inventory
A review of the current make-up of the organizations current resource status. Job Analysis
An assessment that defines a job and the behaviors necessary to perform the job.

JOB ANALYSIS
JOB DESCRIBTION
A written document that identifies, describes and defines a job in term of ist duties, responsibilities, working conditions.

JOB SPESIFICATION
A written document that outlines the minimum acceptable qualifications a person should possess to perform a particular job.

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Job Analysis: A Basic HRM Tool

Tasks Responsibilities Duties
Staffing Training and Development Performance Appraisal Compensation

Job Descriptions Job Analysis Job Specifications

Safety and Health

Employee and Labor Relations Legal Considerations

Knowledge

Skills

Abilities

Methods of Gathering Job Information

Interviews
Structured interview

Observation
If the job is fairly routine If it is possible to identify job essentials in a reasonable amount of time Videotape

Diaries Questionnaires
Expensive

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Job Design Approaches

Work Simplification Job Enlargement Job Rotation Job Enrichment

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Recruitment and Decruitment

Recruitment
The process of locating, identifying, and attracting capable applicants to an organization

Decruitment
The process of reducing a surplus of employees in the workforce of an organization

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Recruitment Methods-1
Overtime Training Promotion from within the company Internship Conversion of part-timers to full-timers

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Recruitment Methods-2
Referrals from current employees College Recruiting Print Advertisement Internet / Career Sites Professional Recruiting Organizations

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Major Sources of Recruitment

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Selection
Selection Process
The process of screening job applicants to ensure that the most appropriate candidates are hired.

What is Selection?
An exercise in predicting which applicants, if hired, will be (or will not be) successful in performing well on the criteria the organization uses to evaluate performance. Selection errors:
Reject errors for potentially successful applicants Accept errors for ultimately poor performers

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Validity and Reliability

Validity (of Prediction)
A proven relationship between the selection device used and some relevant criterion for successful performance in an organization.

Reliability (of Prediction)

The degree of consistency with which a selection device measures the same thing.
Individual test scores obtained with a selection device are consistent over multiple testing instances.

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Selection Process
Recruited Candidate Preliminary Interview Rejected Applicants Review of Applications and Rsums Selection Tests Employment Interviews Pre-Employment Screening: Background and Reference Checks Selection Decision Physical Examination New Employee

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Application Forms
Strengths and weaknesses:
Almost universally used Relevant biographical data and facts that can be verified Can predict job performance but not easy to create one that does

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Written Tests
Types of Tests
Ability Tests Personality Tests Alternative Tests

Handwriting Analysis Honesty Tests

Legal Challenges to Tests

Lack of job-relatedness of test items or interview questions to job requirements Discrimination in equal employment opportunity against members of protected classes

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Performance Simulation Tests

Testing an applicants ability to perform actual job behaviors, use required skills, and demonstrate specific knowledge of the job.
Work sampling
Requiring applicants to actually perform a task or set of tasks that are central to successful job performance.

Assessment centers
A set of simulated tasks or exercises that candidates are asked to perform. Usually for managerial positions Costly Variety of activities

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Interviews
Although used almost universally, managers need to approach interviews carefully.
Critized for its poor reliability and low validity UNSTRUCTURED INTERVIEW STRUCTURED INTERVIEW
Job interview based on a job analysis, applying job related questions with predetermined answers Three types of questions
Background questions Job knowledge questions Situational questions

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Checks
Reference checks:
To look at past employment records of the candidate

Background Checks
Broader investigation about the candidates criminal-background, academic achievements. 34 % of the information on application forms 9 %of applicants are falsifying about

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Physical Examinations
Useful for physical requirements and for insurance purposes related to pre-existing conditions. Drug Tests Aids Tests Are they really job related?

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Orientation
Education that introduces a new employee to his or her job and the organization.
Work unit orientation Organization orientation
Formal Orientation Programs Informal way of Orientation (Mentoring)

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Performance Management
Performance Management System
A process of establishing performance standards and appraising employee performance. Written Essay Multiperson Comparison MBO 360 degree Appraisal

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Development and Training

Increasing training spending As job/customer/technology demands Classification Based on presentation style Based on location

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PRESENTATION
Traditional Training Methods Classroom lectures Workbooks/Manuals Coaching Technology-based Training Methods CD-DVD Video-conference E-learning

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LOCATION
On-the-job
Job rotation, Apprenticeships and Internships Transferable to the work directly Cheap Lost business when trainee is performing Can those who are able to do teach??? Courses, exercises in a classroom setting Extendent periods of uninterrupted study Positive effect of a classroom environment Transferability of learned staff Sometimes only fun not learning

Off-the-job

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What Is Compensation?
Total compensation
The package of quantifiable rewards an employee receives for his or her labors. PAY MIX

Base Compensation
The fixed pay an employee receives on a regular basis, either in the form of a salary or as an hourly wage

Pay Incentive
A programm designed to reward employees for good performance such as bonuses and profit sharing

Benefits (Fringe Benefits & Perks)

Vacations, Insurance, Unemployment Compensation

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Factors That Influence Compensation and Benefits

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Decruitment Options

TURNOVER
The rate at which an employer gains and loses employees. How long employees tend to stay? Turnover is measured for individual companies and for their industry as a whole. High turnover can be harmful to a company's productivity if skilled workers are often leaving