Human Resource Analysis

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Human Resource Management

2Human Resource Management

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Table of Contents

Human Resource Management........................................................................................................4

Task1............................................................................................................................................4

Human Resource Management Functions...................................................................................4

Staffing.....................................................................................................................................5

Performance Appraisals...........................................................................................................6

Compensation and Benefits......................................................................................................6

Training and Development.......................................................................................................6

Employee/Labor Relations.......................................................................................................7

Human Resource Models.................................................................................................................7

The Matching Model................................................................................................................9

Human Resource Strategy Models.........................................................................................10

The Integrative Model............................................................................................................13

Task 2.............................................................................................................................................14

Psychological Contract and the Foundation for Adaptive Strategies........................................14

Manpower Planning...................................................................................................................14

Succession Planning...............................................................................................................15

Turnover.................................................................................................................................15

Recruitment................................................................................................................................16

Performance Management.........................................................................................................17

Training and Development.........................................................................................................20

Staff Relations............................................................................................................................21

Management Information System..............................................................................................21


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The Way Ahead.........................................................................................................................22

Advantages of Human Resource Planning.................................................................................22

Limitations of HRP....................................................................................................................22

Conclusion.....................................................................................................................................23

Bibliography..................................................................................................................................23


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Human Resource Management

“Human Resource Management is that field of management which does planning, organizing,

directing and controlling the functionalities of procuring, developing, maintaining and utilizing a

labor force, such that objectives at every level are achieved.”

The conceptual mode of H R M is shown in the figure 1.

Task1

Human Resource Management Functions

They are 7 managerial functionalities of a human resources (HR) department which would be

specifically addressed:

1. Staffing.


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2. Performance Appraisals.

3. Compensation and Benefits.

4. Training and Development.

5. Employee and Labor Relations.

6. Safety and Health.

7. Human Resource Research.

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Prior to discussing about the seven functionalities, it is prominent to understand the job analysis.

Job analysis is the important part of HR department, where the HR has to define/identify skills,

activities, and Intelligence required for the resources to perform a job. Job analyses is performed:

1 when it is a new startup, 2 when a new job is created, and 3 when a job has been changed.

Two important tools used in defining the job are:

Job Description: Job description states the job role and responsibilities involved in the

job. It also provides a list of skill set and technical/non-technical aspects.

Job Specification: Job Specification specifies the basic amount of education and

experience needed for fulfilling the task (Mondy and Noe, 1996).

Staffing

In staffing, job description and job specification are prominent tools. Usually, certain events

within the organization identify a requirement to hire a new resource. In large organizations, an

employee requisition is handled by the HR so that they define the specifications for a job hire

such as the job title, the department, and the recruitment date. Later, the specifications prepared

by the HR is posted for job requirements—either internally, externally, or both. Finally, the

selected candidate is interviewed by the required technical manager making sure that the


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requirements are fulfilled by the candidate. The internal job staffing requirements involve

changing job positions.

Performance Appraisals

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Rating among the employees

Using rating scales by defining performance of the individual.

Listing favorable and unfavorable performance of the employee i.e, critical incidents

Managing ,by objectives or MBO (Management Buyout) .

Compensation and Benefits

Compensation is payment in the form of a hourly wages/annual salaries and additional benefits

such as, pensions, vacation, sick days, insurance, modified workweek, stock options, etc. In the

ideal situation, employees feel they are paid what they are worth, are rewarded with sufficient

benefits, and receive some intrinsic satisfaction .Compensation should be legal and ethical,

adequate, motivating, fair and equitable, cost-effective, and able to provide employment security.

Training and Development

Training and Development plays a major role to upbring the existing resources to equip new

skills, and improve their current position.

Training helps

1. Employee orientation towards new concepts

2. Learning the desired skills


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3. Educating on professional and technical aspects and 5. Providing management training and

executive education.

The training can be imparted based upon the necessity of the training in terms of education,

implementation level and the funds available for training. One of the methods of training is

Instructor-led Training which allows participants to interact with the trainer and parallelly

exercise the training practically. On-the-job training is conducted for those new resources who

need to be trained on the organization structure, project training etc. Computer-based Training

is one of the scientific methods of learning where the participants can access the materials from

various locations in terms of various work places. Simulation gives participants a hands-on by

working on a virtually designed environment prior applying the concept to real situations.

Employee/Labor Relations

HR has a greater role to play being responsible in resolving issues/negotiations in term of

employment. For example, conducting meetings on extending/ending contracts based on project

needs and cost-effectiveness in managing resources. A contract encompasses job related issues

like salary/wages, benefits, security, disciplinary acts, management rights, and contract period..

Human Resource Models

Once the business strategy has been determined, an HR strategy is implemented to support the

chosen competitive strategy. This type of reactive orientation would be depicted in Figure 1. In

this sense, a HR strategy is concerned with the challenge of matching the philosophy, policies,

programs, practices and processes – the ‘five Ps’ – in a way that will stimulate and reinforce the

different employee role behaviors appropriate for each competitive strategy (Schuler, 1989,

1992).


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Figure 1 Hierarchy of Strategic Decision Making

The importance of the environment as a determinant of HR strategy has been incorporated into

some models


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Figure 2 Strategies of HRM

‘An organization’s HRM policies and practices must fit with its strategy in its competitive

environment and with the immediate business conditions that it faces’ . The concept of

integration has three aspects:

Linking of HR policies and practices with the strategic management process of the

organization

Internalization of the importance of HR on the part of line managers

Integration of the workforce into the organization to foster commitment or an

‘identity of interest’ with the strategic goals.

The Matching Model

‘HR systems and organizational structure should be managed in a way that is congruent with

organizational strategy’ . This is close to Chandler’s (1962) distinction between strategy and

structure and his often-quoted maxim that ‘structure follows strategy’. In the Devanna et al.

model, HRM strategy structure follow and feed upon one another and are influenced by

environmental forces (figure 3).


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Figure 3 Matching Model

Human Resource Strategy Models

This section examines the link between organization/business strategy and HR strategy. ‘Human

resource strategies’ are here taken to mean the patterns of decisions regarding HR policies and

practices used by management to design work and select, train and develop, appraise, motivate

and control workers. It consists of three models. The first model examined here, the control-

based model, is grounded in the way in which management attempts to monitor and control

employee role performance. The second model, the resource based model, is grounded in the

nature of the employer–employee exchange and, more specifically, in the set of employee

attitudes, in behaviors and in the quality of the manager–subordinate relationship. A third


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approach creates an integrative model that combines resource-based and control-based

typologies.

Control-Based Model

The first approach to modeling different types of HR strategy is based on the nature of workplace

control and more specifically on managerial behavior to direct and monitor employee role

performance. According to this perspective, management structures and HR strategy are

instruments and techniques to control all aspects of work to secure a high level of labor

productivity and a corresponding level of profitability. This focus on monitoring and controlling

employee behavior as a basis for distinguishing different HR strategies has its roots in the study

of ‘labor processes by industrial sociologists.

When organizations hire people, they have only a potential or capacity to work. To ensure that

each worker exercises his or her full capacity, managers must organize the tasks, space,

movement and time within which workers operate. In an insightful review, Thompson and

McHugh comment that, ‘control is not an end in itself, but a means to transform the capacity to

work established by the wage relation into profitable production’.

The choice of HR strategy is governed by variations in organizational form (for example size,

structure and age), competitive pressures on management and the stability of labor markets,

mediated by the interplay of manager–subordinate relations and worker resistance (Thompson &

McHugh, 2002). Moreover, the variations in HR strategy are not random but reflect two

management logics (Bamberger & Meshoulam, 2000). The first is the logic of direct, process-

based control, in which the focus is on efficiency and cost containment (managers needing

within this domain to monitor and control workers’ performance carefully), whereas the second

is the logic of indirect outcomes-based control, in which the focus is on actual results (within

this domain, managers needing to engage workers’ intellectual capital, commitment and

cooperation).

The Resource-Based Model

This second approach to developing typologies of HR strategy is grounded in the nature of the

reward–effort exchange and, more specifically, the degree to which managers view their human

resources as an asset as opposed to a variable cost. The sum of people’s knowledge and


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expertise, and social relationships, has the potential to provide non-substitutable capabilities that

serve as a source of competitive advantage. The various perspectives on resource-based HRM

models raise questions about the inextricable connection between work-related learning, the

‘mobilization of employee consent’ through learning strategies and competitive advantage.

The resource-based approach exploits the distinctive competencies of a work organization: its

resources and capabilities. An organization’s resources can be divided into tangible and

intangible (brand-name, reputation and know-how) resources. To give rise to a distinctive

competency, an organization’s resources must be both unique and valuable. By capabilities, we

mean the collective skills possessed by the organization to coordinate effectively the resources.

According to strategic management theorists, the distinction between resources and capabilities

is critical to understanding what generates a distinctive competency . Putting it in terms of a

simple SWOT analysis, the resource-based perspective emphasizes the strategic importance of

exploiting internal ‘strengths’ and neutralizing internal ‘weaknesses’. Figure 4 summarizes the

relationship between resources and capabilities, strategies, and sustained competitive advantage.

Figure 4


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The Integrative Model

Bamberger and Meshoulam integrate the two main models of HR strategy, one focusing on the

strategy’s underlying logic of managerial control, the other focusing on the reward–effort

exchange. Arguing that neither of the two dichotomous approaches provides a framework able

to encompass the ebb and flow of the intensity and direction of HR strategy, they build a model

that characterizes the two main dimensions of HR strategy as involving ‘acquisition and

development’ and the ‘locus of control’.

Acquisition and development are concerned with the extent to which the HR strategy develops

internal human capital as opposed to the external recruitment of human capital. In other words,

organizations can lean more towards ‘making’ their workers or more towards ‘buying’ their

workers from the external labor market. This is called as the ‘make-or-buy’ aspect of HR

strategy. As

Figure 5 shows, these two main dimensions of HR strategy yield four different ideal types of

dominant HR strategy:

Figure 5 Dimensions of HR Strategy


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The commitment HR strategy is characterized as focusing on the internal development of

employees’ competencies and outcome control. The traditional HR strategy, viewed as focusing

on the external recruitment of competencies and behavioral or process-based controls. The

collaborative HR strategy, involves the organization subcontracting work to external

independent experts giving extensive autonomy and rating their performance primarily in terms

of the end results. The paternalistic HR strategy offers learning opportunities and internal

promotion to employees for their compliance with process-based control mechanisms.

Task 2

Psychological Contract and the Foundation for Adaptive Strategies

Employment relationships in the past assumed a fair day's work for a day's pay under relatively

stable business conditions. Loyalty and sustained good work were rewarded through varying

degrees of job security. Now, however, constant change, uncertainty and temporariness have

largely replaced stability, predictability and permanency. Continuous performance improvement,

acquiring new skills, employee flexibility, cost options and adding value have assumed great

importance to companies. For example, in the 1980's, Fortune 500 companies, faced by stiff(er)

foreign competition shed over 3.5 million manpower and nationally this figure may have reached

10.0 million. These reorganizations continue today and many are expected to continue for years

to come. Yet, if manpower recognized that "their" company was undertaking creative and

consistent actions to. The component areas are:

Manpower Planning

Manpower planning enables a department to project its short to long term needs on the Basis of

its departmental plans so that it can adjust its manpower requirements to meet Changing

priorities. The more changing the environment the department is in, the more the department

needs manpower planning to show:

The number of recruits required in a specified timeframe and the availability of

talent.

Early indications of potential recruitment or retention difficulties.

Surpluses or deficiencies in certain ranks or grades.


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Availability of suitable qualified and experienced successors.

Manpower planning comprises two key components:

Succession Planning.

Turnover.

Succession Planning

Succession planning assesses the likely turnover in key posts, identifies suitable candidates to fill

these posts in future, and ensures that they have the right training and exposure for their next

work. Given the effort and support required for undertaking succession planning, it is normally

confined to the directorate and those ranks immediately below, plus any grades with high

turnover or anticipated expansion. Succession planning is a very important exercise because it

minimizes the impact of turnover in these key ranks and gives a branch or department prior

warning of any skill shortages or likely difficulties in finding suitable candidates. The

succession plan should identify

key posts and possible successors.

causes of turnover.

competencies of successors and the training required for them.

posts for which no apparent successor exists and the remedial action planned.

Turnover

Turnover refers to retirement, resignation and redundancy. While a department cannot plan

turnover because there are factors, such as resignation, which are beyond its control, it can

monitor turnover carefully to ensure the department will have minimal difficulties in retaining

staff. If such difficulties are envisaged or experienced, the department will find out the causes for

them and take early steps to address them by improving, such as, motivation or training and

development opportunities. When addressing the aspects of succession and turnover, the

department also needs to consider other manpower planning factors:

external factors.

internal factors.


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Recruitment

Before a department takes steps to employ staff, it should work out the type of staff it needs in

terms of grade and rank, and the time scale in which the staff are required. The general principles

underpinning recruitment within the civil service are that recruitment should:

Use procedures which are clearly understood by candidates and which are

open to public scrutiny;

Be fair, giving candidates who meet the stipulated minimum requirements

equal opportunity for selection; and

Select candidates on the basis of merit and ability.

Recruitment of overseas officers is undertaken only when no or insufficient local candidates are

available. There are three key components to the recruitment process:

Deciding on terms of appointment.

Selection of candidates.

Probation.

Deciding on Terms of Appointment

Having decided on the grade and rank of the staff required, and the timing concerned, the

department should consider what the most appropriate terms of appointment would be. This

should take into account the nature of the duties to be performed and the overall manpower

deployment of the department. The different terms of appointment that can be offered are:

Permanent and personable terms;

Agreement terms;

Temporary terms (month-by-month or day-by-day);

Part-time;

Non-civil service appointment; and

Consultancy

Selection of Candidates

1. Advertising.


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2. Screening and Selection.

3. Roles and Responsibilities.

4. Flexibility.

Probation

During probation staff is introduced to the mission, objectives and values of the civil service and

their departments. Probation is a serious process which provides regular feedback on

performance and assesses suitability for employment in the civil service. It includes:

On-the-job training.

Supervision and Guidance.

Performance Management

Performance management is a very important Human Resource Management function. Its

objective is to improve overall productivity and effectiveness by maximizing individual

performance and potential. Performance management is concerned with:

Improving individual and collective performance.

Communicating management's expectations to supervisors and staff.

Improving communication between senior management, supervisors and staff.

Assisting staff to enhance their career prospects through recognizing and

rewarding effective performance.

Identifying and resolving cases of underperformance. and

Providing important links to other Human Resource Management functions, such as

training.

Key Components

Motivation


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Motivation is in many ways the key to the success of Human Resource Management

development. Managers should aim to increase performance through self-motivation, rather than

having to use external motivation to bring about higher standards of performance. The civil

service has many formal programmes to enhance motivation, and these are discussed in the "staff

relations" section of this booklet.

Principle: The basic principle underpinning motivation is that if staff are managed effectively,

they will seek to give of their best voluntarily without the need for control through rules and

sanctions - they will eventually be self-managing.

Procedures: Some of the most effective ways for managers to motivate staff include giving

praise; recognition; and positive feedback; passing on feedback from more senior managers; and

letting other staff know which staff have been responsible for praiseworthy work and/or effort.

Performance Appraisal

Performance appraisal assesses an individual's performance against previously agreed work

objectives. It serves two functions. First, it enables management to evaluate an individual's

performance in the current job to identify strengths and overcome weaknesses. Second, it

provides information to assist management plan postings, transfers and promotions.

The basic principles governing performance appraisal are:

It is a joint responsibility of the individual and the supervisor;

It is a continuous and ongoing process;

It should relate individual performance to departmental objectives;

Checks and balances should be built into the system to ensure fairness and objectivity;

Outstanding performance at one rank does not necessarily indicate suitability for

promotion to a higher rank.

Except for officers on probation, performance appraisal is normally carried out once a year.

Different grades/departments may have their own performance appraisal form which enshrines

the principles set out in the preceding paragraph. The list of objectives or responsibilities should

be reviewed between appraise and the appraising officer during the reporting cycle to see if


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changes are necessary. At the end of the reporting cycle, the appraising officer will write his

assessment. He will pass his assessment to the countersigning officer for the latter's views.

Promotion

Promotion denotes that an individual has the competencies, i.e. the skills, abilities, knowledge

and attitudes, required to perform effectively at the next higher rank. The competencies reflect

the knowledge and skills exhibited in observable behavior in the relevant areas of work.

Promotion provides motivation to perform well and is an important part of performance

management. The principle of merit or the best person for the job is key to promotion. Ability,

potential and experience are taken into account in the assessment. The process of assessment

should be fair and transparent. It is kept separate from the day to day management of

performance and from the annual performance appraisal.

Promotion Procedures: Heads of Department/Heads of Grade have flexibility to invite certain

officers to apply for promotion, or allow officers to opt out of promotion.

As a general rule promotion boards are convened to:

Increase transparency and impartiality; and

Provide an opportunity to consider eligible officers' potential and organizational

succession planning.

Where necessary and appropriate, promotion interviews are held to assist in assessment to

supplement information provided in staff reports. This will apply to situations where staff reports

are insufficient and questionable in terms of fairness or consistency.

Guidance and Supervision

Day-to-day guidance and supervision is necessary to provide direction and feedback to staff. It

reinforces the annual performance appraisal, helps groom officers for promotion, and assists

staffs who are not performing well.

Guidance and supervision reinforces behavior that contributes to good performance and

discourages behavior that blocks progress. Feedback should be:


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Frequent .

Balanced .

Immediate Specific .

Constructive .

Training and Development

The objective of training and development is to enable civil servants to acquire the knowledge,

skills, abilities and attitudes necessary to enable them to improve their performance. A strategic

approach has the following characteristics:

Commitment to training and developing people;

Regular analysis of operational requirements and staff competencies;

Linking training and development to departmental goals and objectives;

Skilled training personnel;

Regular evaluation;

A continuous learning culture;

Joint responsibility between managers and staff for identifying and meeting training

needs; and

A variety of training and development methods for different circumstances and

learning styles.

Training

Departments manage their own training function and have varying levels of responsibility to do

this effectively:

Management formulates departmental training policies and draws up training and

development plans to support departmental missions, objectives and values.

Managers identify competencies and training needs, implement training activities

and provide coaching and supervision to ensure staff development occurs.

Staff takes responsibility to make the most of the opportunities provided to

maximize their potential.


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Development

The purpose of career development is to identify and develop the potential within staff, to build

existing skill levels, and to prepare staff to take on greater responsibility during their career.

Career development has to balance the needs and aspirations of the individual with the needs of

the service - where this conflict, the needs of the service should prevail.

Staff Relations

The purpose of staff relations is to ensure effective communication between management and

staff, to secure maximum cooperation from staff, and to motivate staff to give their best by

ensuring that they are fairly treated, understands the overall direction and values of the Civil

Service and those of their departments, and how decisions that affect them have been reached.

The principles that govern staff relations are that, where possible:

Management should communicate regularly and openly with staff;

Staff should be consulted on matters that affect them;

Problems and disputes should be resolved through discussion and consultation;

The Government should uphold the resolutions of the International Labor Organization

conventions; and

Management should devise and encourage activities that contribute to staff's well being.

Management Information System

An effective management information system enables various levels of information to be

systematically collected about human resource matters so that departments, policy branches and

Civil Service Branch can monitor and predict the effectiveness of H R M practices. Accurate

management information enables forward looking Human Resource Management by providing

the means to:

Monitor and improve on-going Human Resource Management performance.

Provide up-to-date information on which to base policy development.

Verify and demonstrate departmental effectiveness in Human Resource Management

create service-wide checks and balances to safeguard delegation and provide true

accountability for Human Resource Management.


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The Way Ahead

Human Resource Management is a long established task. However there is a new emphasis

emerging and greater importance being placed on finding ways of managing staff better, so that

they can and will continue to give of their best in these times of changing community needs and

expectations.

The challenge ahead in Human Resource Management is not to effect cultural change overnight,

but rather to take initiatives which will lead to continuous improvement and show a more

planned approach to managing people. It is our collective responsibility to motivate, develop and

manage staff in such a way that their contributions to the service are maximized.

Advantages of Human Resource Planning

Improvement of labour productivity.

Recruitment of Qualified HR.

Adjusting with Rapid Technological Changes.

Reducing labour turnover .

Control of training & recruitment costs.

Mobility of labour.

Facilitating expansion programmes.

To treat manpower like real corporate assets.0

Limitations of HRP

Inaccuracy .

Uncertainties .

Lack of support.

Number’s Game.

Employees Resistance.

Lack of Purpose.

Time & Expense.

Inefficient Information System.


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Conclusion

In Research, part of all the other six functions of human resource management. With the number

of organizations participating in some form of international business, the need for HRM research

will only continue to increase. Therefore, it is important for human resource professionals to

update on the latest trends in staffing, performance appraisals, compensation-benefits, training-

development, employee-labor relations, safety and health issues.


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Bibliography

1. The Management of Human Resources- Cherrington, David J. (1995).



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Human Resource Analysis

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