Human Resource Management

Human resource management is the function performed in organizations that facilitate the most effective use of people to achieve organization or individual goal.

Competitive Challenges Facing HRM

Globalization Technology Change management Development of human capital Market responsiveness Cost containmentEmerging Employee Issues in HRM

Diversity of background Age distribution Gender issues Education levels Employee rights Privacy issues Attitude towards work Family concerns

HRM TodayHRM Model

The scope of HRM today has been defined by a model developed by ASTD (American Society for Training and Development): Training and developmentOrganization developmentOrganization/Job designHuman resource planningSelection and staffingPersonnel research and information systemsCompensation/BenefitEmployee assistanceUnion/Labor relations

HRM TodayHRM Model

The model suggests that these nine areas have impacts on three human resources outputs: Quality of work lifeProductivityReadiness for change

Environmental Elements of HRMExternal Environmental Elements

GovernmentUnionEconomic conditionsLabor forceGeographic location

Internal Environmental Elements

StrategyGoalsOrganizational cultureNature of taskWorkgroupLeadership

HR PlanningDefinition

The process by which an organization ensures that it has the right number and kinds of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.

The process by which an organization assesses the future supply of and demand for human resources.

HR Planning Process

Development of Plans for Action

After analyzing the demand for and the supply of future human resources, these two forecasts are compared to determine the courses of action. The discrepancy between the demand and supply forecasts may lead to two situations:

Shortage of human resources Surplus of human resources

Development of Plans for Action

Shortage of Human Resources: the options open for an organization in order to fill up the shortage include: Overtime Recruitment and recall Temporary employment Outsourcing

Development of Plans for Action

Surplus of Human Resources: the options open for an organization to deal with the surplus employees include: Demotion and transfer Early retirement Layoff and termination Attrition Downsizing

Job AnalysisJob

A job is a type of position held by a person within an organization.

Job Analysis

The process of systematic analysis of a job in order to determine the task, duties, and responsibilities of the job and the knowledge, skills, and abilities required to perform the job. The outputs of a job analysis include: Job description Job specification

Job Description

The list of tasks, duties, and responsibilities of a job. Task: a task is a distinct work activity carried out for a distinct purpose. Duty: a duty is a number of tasks. Responsibility: an obligation to perform certain tasks.

Job Specification

The list of knowledge, skills, abilities, and other characteristics that an individual must have to perform a job.Knowledge: an organized body of information, usually of a factual or procedural nature applied directly to the performance of a task.

Ability: a demonstrated competence to perform an observable behavior or a behavior that results in an observable output.

Job Specification

Skill: a competence to perform a learned, psychomotor act, and may include a manual, verbal, or mental manipulation of data, people, or things.

Other Characteristics: the personality factors (attitudes), aptitudes, or physical or mental traits needed to perform the job

Job AnalysisJob Analysis Methods

Observation Method Interview Method Questionnaire MethodDiary/Logbook Method

Most commonly used methodvery adaptableUsually conducted with job incumbents technical experts supervisorsQuestions like:what are your most typical duties?How long do they take?How do you do them?Con: people may misrepresent/exaggerate job

method is most useful for comparing jobsvery commonly used (esp. with interviews)

Unobtrusive methodcamera; video; audioExcellent for understanding and appreciating conditions under which job is performedAllows analyst to experience aspects of job that worker may not be aware ofNot as good for understanding why behaviors do/do not occur

Worker makes systematic entries in book outlining activitiesMay be useful for jobs that are difficult to observeBut, not commonly used

Reduce Role Conflict and Ambiguityreduce discrepancy between what organization thinks job is and what job is in realityDesign and Evaluation of Trainingfocus training on most difficult and/or most frequent elements of jobPerformance Appraisalcriteria for appraisal should be matched with most important elements of job

Job Evaluation What is Job Evaluation?

Job evaluation is a systematic process of deter mining the value of each job in relation to other jobs in the organization in order to determine which jobs should be paid more than others.

Job Evaluation Methods Job ranking Job classification Point method Factor comparison

Job Ranking

Job ranking involves arranging all jobs in an organization in a simple rank order from the simplest to the most difficult. Qualitative in nature. This method is suitable for small and simple organizations having less number of jobs. But not suitable for big and complex organi- zations having a large number of jobs. Subjectivity and lack of definite or consistent standard is another limitation.

Job Classification

Job classification is the process grouping jobs into different grades or classes on the basis of differences in skills, duties, responsibilities, knowledge, working conditions and other job- related factors. Then those grades of jobs are ranked by levels of difficulty or sophistication. Qualitative in nature. This method is quick, simple, and cheap. It is also easy to understand and communicate. But it may lead to inappropriate grouping of some jobs and consequent feeling of inequity.

Point Method

Point method involves breaking down jobs on the basis of certain identifiable criteria (such as skill, effort, responsibilities, etc) and then allocating points or weights to each of these criteria as per their importance. The points of each job are then added and jobs with similar point-totals are placed in similar pay grades. Quantitative in nature. This method is the most consistent one with least rating errors. But it is complex, costly and time-consuming.

Factor Comparison Method

This method involves identifying certain key jobs in the organization and then comparing them by using a universal five-factor (that is, skills, responsibilities, physical effort, mental effort, and working conditions) scale. A base rate is decided for each of the key jobs which is then allocated among the five criteria. Quantitative in nature. It is a step-by-step systematic method which can be tailored to meet specific needs of each organization. But this method is also complex, costly and time-consuming.

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