Human Resource ManagementHuman Resource Management

Is there any difference between Personnel management and Human resource management ????

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• For those who recognize a difference between personnel management and human resources, the difference can be described as philosophical.

• Personnel management is more administrative in nature, dealing with payroll, complying with employment law, and handling related tasks.

• Human resources, on the other hand, is responsible for managing a workforce as one of the primary resources that contributes to the success of an organization.

• Human resources is described as much broader in scope than personnel management.

• Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency

• Personnel management can include administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented.

• By contrast, human resources involves ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company's workforce.

• PM is often considered an independent function of an organization.

• Human resource management, on the other hand, tends to be an integral part of overall company function.

What is Human Resource Management?

• Managing the effective use of people to achieve both organizational and individual goals

• Ie; through the effective recruitment, selection, development, compensation, and utilization of human resources by organizations

In short……..HRM is the integration (incorporation/mixing) of all processes, programs, and systems in an organization that ensure staff are acquired and used in an effective way

Human Resource Management (Contd.)

HR is multidisciplinary: It applies the disciplines of Economics (wages, markets, resources),Psychology (motivation, satisfaction), Sociology (organization structure, culture) and Law (min. wage, labor contracts)

What HR Professionals Do?

HR planning

Recruitment & Selection

Training and development

Compensation & Performance review

Labor relations

Why you care about HRM?

• Impact on employees

• Impact on managers

• Provides potential future roles as HR professionals

• Impact on organizations

HRM has increased in importance since the 1980s. Why?

• Globalization

• Government regulation

• Stronger knowledge/research base

• Changing role for labor unions

• Challenge of matching worker expectations with

competitive demands

What motivates you as an employees?• Good wages• Good working conditions• Job security• Full appreciation of work that is done• Tactful disciplining• Employer loyalty to employees• Interesting work• Promotion and growth in the organization

How HR How HR FunctionsFunctions Relate to HR Relate to HR ActivitiesActivitiesHow HR How HR FunctionsFunctions Relate to HR Relate to HR ActivitiesActivities

The Acquisition of Human Resources

PlanningAnalyzing JobsRecruitmentSelection The Development of

Human Resources

AppraisingTrainingDeveloping

How How HR Functions HR Functions Relate to Relate to HR HR ActivitiesActivities, continued, continuedHow How HR Functions HR Functions Relate to Relate to HR HR ActivitiesActivities, continued, continued

The Rewarding ofHuman Resources

Compensating(Wages & Salaries)(Incentives)

The Maintenance ofHuman Resources

Employee BenefitsSafety & HealthLabor Relations

Goals of Human Resource Management

The human resource function in contemporary organizations

Facilitatingorganizational competitiveness

Complying with legal and social obligations

Promotingindividual growthand development

Enhancing productivity andquality

The HRM Process

• Functions of the HRM ProcessEnsuring that competent employees are identified and

selected.Providing employees with up-to-date knowledge and

skills to do their jobs.Ensuring that the organization retains competent and

high-performing employees who are capable of high performance.

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The Human Resource Management Process

Environmental Factors Affecting HRM

• Labor UnionAn organization that represents workers and seeks to

protect their interests through collective bargaining.

• Collective Bargaining AgreementA 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.

Environmental Factors Affecting HRM (cont’d)

• Affirmative ActionThe requirement that organizations take proactive

steps to ensure the full participation of protected groups in its workforce.

• Laws and RegulationsLimit managerial discretion in hiring, promoting, and

discharging employees.

Key Functions

Human Resource Planning

Recruitment & Selection

Compensation & Benefits

Performance Appraisals

Training & Development

• Human Resource (HR) PlanningThe 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

Developing a program to meet those future needs

Human Resource Planning

Assessing FutureHuman ResourceNeeds

Assessing Current Human Resources

Developing aProgram to Meet Needs

Current Assessment

• Human Resource InventoryA review of the current make-up of the organization’s

current resource status

Job Analysis An assessment that defines a job and the behaviors

necessary to perform the job

– Knowledge, skills, and abilities (KSAs)

Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees and their managers.

Tasks Responsibilities Duties

Job Analysis

Job Descriptions

Job Specifications

Knowledge Skills Abilities

Human Resource Planning

Recruitment

Selection

Training and Development

Performance Appraisal

Compensation and Benefits

Safety and Health

Employee and Labor Relations

Legal Considerations

Job Analysis for Teams

Current Assessment (cont’d)

• Job DescriptionA written statement of what the job holder does, how

it is done, and why it is done.

• Job SpecificationA written statement of the minimum qualifications that

a person must possess to perform a given job successfully.

DefinitionsJob - Consists of a group of tasks that must be performed for an organization to achieve its goals

Position - Collection of tasks and responsibilities performed by one person; there is a position for every individual in an organization

Job analysis - Systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization (functional job analysis , position analysis questionnaire)

Job description – document providing information regarding tasks, duties, and responsibilities of job

Job specification – minimum qualifications to perform a particular job

Meeting Future Human Resource Needs

Supply of Employees Demand for Employees

Factors Affecting Staffing

Strategic Goals

Forecast demand for products and services

Availability of knowledge, skills, and abilities

Major Sources of Potential Job Candidates

RecruitmentProcess of locating,

identifying, and attracting

capable candidates

Can be for current or future needs

Critical activity for some corporations.

What sources do we use for recruitment

Recruitment and Decruitment

• RecruitmentThe process of locating, identifying, and attracting

capable applicants to an organization

• DecruitmentThe process of reducing a surplus of employees in

the workforce of an organization

• E-recruitingRecruitment of employees through the Internet

Organizational web sites Online recruiters

Decruitment Options

Sources of Recruitment

RecruitmentSources

InternalSearches

EmployeeReferrals

Voluntary Applicants

EmploymentAgencies

Advertisements

SchoolPlacement

SELECTION

A series of steps from initial applicant screening to final hiring of the new employee.

Selection process.Step 1 Completing application materials.Step 2 Conducting an interview.Step 3 Completing any necessary tests.Step 4 Doing a background investigation.Step 5 Deciding to hire or not to hire.

Selection processStep 1 Completing application materials.

Gathering information regarding an applicant’s background and experiences.

Typical application materials.

Traditional application forms.

Résumés.

Sometimes tests may be included with application materials.

Step 2 Conducting an interview.

Typically used though they are subject to perceptual distortions.

Interviews can provide rough ideas concerning the person’s fit with

the job and the organization.

Selection processStep 3 Completing any necessary tests.

Administered before or after the interview.Common examples of employment tests.

Cognitive, clerical, or mechanical aptitudes or abilities.Personality.

Step 4 Doing a background investigation.

Can be used early or late in selection process.

Background investigations include:

Basic level checks.

Reference checks.

Selection processStep 5 Deciding to hire or not to hire.

Draws on information produced in preceding selection steps.

A job offer is made.

A physical examination may be required if it is relevant to job performance.

Negotiation of salary and/or benefits for some jobs.

Step 6 Socialization.

The final step in the staffing process.

Involves orienting new employees to:

The firm.

The work units in which they will be working.

The firm’s policies and procedures.

The firm’s organizational culture.

Types of Selection Devices

• Application Forms• Written Tests• Performance Simulations• Interviews• Background Investigations• Physical examinations

Written Tests

• Types of Tests Intelligence: how smart are you?Aptitude: can you learn to do it?Attitude: how do you feel about it?Ability: can you do it? Interest: do you want to do it?

• Legal Challenges to TestsLack of job-relatedness of test to job requirementsDiscrimination in equal employment opportunity

against members of protected classes

Performance Simulation Tests

• Testing an applicant’s 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 Dedicated facilities in which job candidates undergo a

series of performance simulation tests to evaluate their managerial potential.

Other Selection Approaches

• Situational Interviews Interviews in which candidates are evaluated on how

well they handle role play in mock scenarios.

• Background InvestigationsVerification of application dataReference checks:

Lack validity because self-selection of references ensures only positive outcomes.

• Physical ExaminationsUseful for physical requirements and for insurance

purposes related to pre-existing conditions.

Suggestions for Interviewing

1. Structure a fixed set of questions for all applicants.

2. Have detailed information about the job for which applicants are interviewing.

3. Minimize any prior knowledge of applicants’ background, experience, interests, test scores, or other characteristics.

4. Ask behavioral questions that require applicants to give detailed accounts of actual job behaviors.

5. Use a standardized evaluation form.

6. Take notes during the interview.

7. Avoid short interviews that encourage premature decision making.

Other Selection Approaches (cont’d)

• Realistic Job Preview (RJP)The process of relating to an applicant both the

positive and the negative aspects of the job. Encourages mismatched applicants to withdraw. Aligns successful applicants’ expectations with actual

job conditions; reducing turnover.

Orientation

• Transitioning a new employee into the organization.Work-unit orientation

Familiarizes new employee with work-unit goals Clarifies how his or her job contributes to unit goals Introduces he or she to his or her coworkers

Organization orientation Informs new employee about the organization’s

objectives, history, philosophy, procedures, and rules. Includes a tour of the entire facility

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Types of Training

• Interpersonal skills• Technical• Business• Mandatory• Performance management• Problem solving/Decision making• Personal

Employee Training Methods

• Traditional Training Methods

On-the-job

Job rotation

Mentoring and coaching

Experiential exercises

Workbooks/manuals

Classroom lectures

• Technology-Based Training Methods

CD-ROM/DVD/Videotapes/ Audiotapes

Videoconferencing/ teleconferencing/Satellite TV

E-learning or other interactive modules.

Performance Appraisal

Performance Appraisal

The identification, measurement, and management of human performance in organizations.

Why Conduct Performance Appraisals?

Make decisions about that person's future with the organization

Identify training requirements

Employee improvement

Pay, promotion, and other personnel decisions

Research

Validation of selection techniques and criteria

Techniques for Evaluating Managers

Evaluation by superiorsEvaluation by colleagues

Peer ratings tend to be more favorable for career development than for promotion decisions

Self‑evaluationSelf‑ratings suffer from leniency

Subordinate evaluationEffective in developing leadershipLeads to improved performance

360 degree feedback (multi‑source)

360° Feedback

The combination of peer, subordinate, and self-review

Copyright © 2005 Prentice Hall, Inc. All rights reserved. 12–53

Employee Performance Management

• Performance Management SystemA process establishing performance standards and

appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions.

Performance Appraisal Methods

• Written essays• Critical incidents• Graphic rating scales• Behaviorally anchored rating scales (BARS)• Multiperson comparisons• Management By Objectives (MBO)• 360 Degree feedback

Compensation and Benefits

• Benefits of a Fair, Effective, and Appropriate Compensation SystemHelps attract and retain high-performance employees Impacts on the strategic performance of the firm

• Types of CompensationBase wage or salaryWage and salary add-ons Incentive paymentsSkill-based pay

Factors That Influence Compensation and Benefits

Career Development

• Career DefinedThe sequence of positions held by a person during

his or her lifetime.

• Career DevelopmentProvides for information, assessment, and trainingHelps attract and retain highly talented people

• Boundaryless CareerA career in which individuals, not organizations,

define career progression and organizational loyalty

Some Suggestions for a Successful

Management Career

Contemporary HRM Issues

• DownsizingThe planned elimination of jobs in an organization

Provide open and honest communication. Reassure survivors.

• Managing Work Force DiversityRecruitment for diversitySelection without discriminationOrientation and training that is effective

Contemporary HRM Issues (cont’d)

• Sexual HarassmentAn unwanted activity of a sexual nature that affects

an individual’s employment. Unwanted sexual advances, requests for sexual favors,

and other verbal or physical conduct of a sexual nature when submission or rejection of this conduct explicitly or implicitly affects an individual’s employment.

An offensive or hostile environment An environment in which a person is affected by

elements of a sexual nature.

Contemporary HRM Issues (cont’d)

• Work-Life BalanceEmployees have personal lives that they don’t leave

behind when they come to work.Organizations have become more attuned to their

employees by offering family-friendly benefits: On-site child care Summer day camps Flextime Job sharing Leave for personal matters Flexible job hours

Desired Outcomes of HRMDesired Outcomes of HRM

• Attraction• Retention • Job Performance• Productivity• Employee Safety and Health • Attendance• Job Satisfaction• Competitive Advantage• Company Performance