Human Resources Management - Afzal Khan

Human Resource Management

Course modules

Human Resource Management (HRM)

Competency Based HRM

Recruitment and Selection

Training and Development

Performance Management

Compensation and Benefits

MODULE



1- Definitions and objectives of HRM

Definition 1:

HRM is the function performed in organizations that facilitates the most effective use of people to achieve organizational and individual goals.

All corporate strengths are dependent on people

Definition 2:

Human Resource Management is a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organizations and the employees to achieve their objectives.

Milkovich and Boudreau



HRM is useful not only to organization, but the employees

working therein, and also the society at large also find it useful.

The objectives can be as under

HRM Objective

HRM Objective

Areas

Organizational Objectives

Societal Objectives

Personal Objectives

Functional Objectives



•HRM is a means to achieve efficiency and effectiveness. It serves other functional areas, so as to help them to attain efficiency in their operations.

•Acquiring right man for the right job at right time in right quantity, developing through right kind of training, utilizing the selected workforce, and maintaining the workforce are the organizational objectives of HRM. Succession planning is an important issue to be taken up as a contemporary organizational objective.

Organizational Objectives

• In today’s world there is shortage of requisite talent. Employees are encouraged by competitive firms to change the jobs. HRM has the responsibility to acquire, develop, utilize, and maintain employees.

• This would be possible only when the HRM helps employees to achieve their personal goals to get their commitment. Creating work-life balance for the employees is a personal objective.

Personal Objectives



•HRM performs so many functions for other departments. However, it must see that the facilitation should not cost more than the benefit rendered.

Functional Objectives

• HRM must see that the legal, ethical, and social environmental issues are properly attended to. Equal opportunity and equal pay for equal work are the legal issues not to be violated. To take care of farmers (whose land has been acquired for the factory) and tribal’s (who are displaced by industries and mining companies) are the ethical issues.

• The results are clear when these issues are not taken care of. To help the society through generating employment opportunity, creating schools and dispensaries, helping women empowerment are the social responsibility issues.

Societal Objectives



Other general objectives of HRM

1. To help the organization reach its goals2. To employ the skills and abilities of the workforce efficiently 3. To provide the organization with well trained and well motivated employees4. To increase to the fullest the employee’s job satisfaction and self-actualization5. To develop and maintain a quality of work life6. To communicate HR policies to all employees7. To help maintain ethical policies and behavior


2- The main functions in HRM

Planning Staffing Training and Development

Motivation and Maintenance

Four areas and their related functions share the common objective of an adequate number of competent employees with the skills, abilities, knowledge, and

experience needed for further organizational goals



Planning• It should cover the widest range of

personnel policies • It should include as many aspects of

managing people as necessary to achieve the longer term objectives of the organization.

• Is an integral part of business planning.• Is a systematic and continuing process of analyzing

organization’s workforce need.



Three Key Elements of HRM

Planning

Forecasting Staffing Needs

Balance Supply

and Demand

Evaluating Supply

Planning



Forecasting Staffing Needs

There are several ways to forecast your business needs, in order to predict how many employees you need to run your business and which roles these employees need to fill.

Some of the factors to consider are: • the situation of the economy, • the internal business finances, • the demand for your products or services• and the growth expectations for your business.

Take a look at your existing staff and see which current employees are likely to transition into new positions and estimate the turnover rate of employees for your business.

Planning



Evaluating Supply

Evaluating the supply of employees includes a two-prong process: • evaluating internal staff (which will occur as you are forecasting your

staffing needs) • and evaluating external staff. Externally, you need to evaluate the

demographics of the workforce that is available. Evaluating Supply can include factors such as education, mobility, the

unemployment rate of government laws and regulations that can affect your industry, your business, existing and potential employees.

Evaluating all of these factors helps you determine if you have access to the number and types of employees you need to fill your staffing forecasts.

Planning



Balance Supply and Demand

The final element of the human resources planning is to determine how you are going to balance the demand you have for employees with the supply of employees available.

If you have a shortage of employees, this will determine what type of recruiting efforts your business will participate in to attract the employees it needs to fill needs within the organization.

It also requires you to balance your full-time and part-time needs. If you have a surplus of employees, this requires you to consider employee

layoffs, retirements and situations where employees may need to be demoted or moved into a lateral position (rather than receiving a promotion).

Planning



Staffing

Staffing is defined as filling and keeping filled, positions in the organization take into account internal factors of the firm such as Personnel Policies, Climate in Organization, Appraisal System.



StaffingStaffing

emphasizes Recruitment Selection



Staffing

Recruiting:

Recruitment is the process of identifying and attempting to attract candidates who are capable of filling job vacancies appropriately.

In other words Recruitment is a process to discover the sources of manpower to meet the requirements of staffing schedule and to employ effective measures for attracting that manpower in adequate number to facilitate effective selection of an efficient working force.

There are two sources of Recruitment• Internal Recruitment (through promotion, transfers, present employee or demotions• External Recruitment (through Notice at the factory gate, trade union, unsolicited

application, casual callers, advertisement, employment exchange, educational institution, labor contactors, or private agencies.



Staffing

Selection:

Effective selection depends on effective recruitment In the selection function, the most qualified applicants are selected for hiring from among

those attracted to the organization by the recruiting function. On selection, human resource functionaries are involved in developing and administering

methods that enable managers to decide which applicants to select and which to reject for the given jobs.




(T&D) The training and development function gives employees the skills and knowledge to perform their jobs effectively.

In addition to providing training for new or inexperienced employees, organizations often provide training programs for experienced employees whose jobs are undergoing change.

Large organizations often have development programs which prepare employees for higher level responsibilities within the organization.

T&D provide useful means of assuring that employees are capable of performing and developing their jobs at a more

advanced levels




(T&D)Development

Is a long term educational process

It can defined as any learning activity which is directed towards future needs rather than present needs, and which is concerned more with career growth than immediate performance.

TrainingIs a short term educational process

It can be defined as a formal and systematic modification of behavior through learning, instruction, development and planned experience.




(T&D)

Helps remove performance deficiencies in employees

Greater stability, flexibility and capacity for growth in

an organization

Serves as effective source of recruitment

It is an investment in HR with a promise of better returns

in future

Importance of Training &

Development




(T&D)

Motivation and

Maintenance

What is Motivation and Maintenance in HRM:

It is the activities in HRM related with providing as much facilities to employees to drive them to feel secured and do quality work with true inner passion with their own fee well.

It is maintaining employees’ commitment and loyalty to the organization.

It is ensuring the work environment is safe, healthy, caring for employees and as per the government rules and regulations.




(T&D)

Motivation and

Maintenance

Why Motivation is important:

Motivation coupled with ability leads to performance. Motivated employees do the quality work with more passion and by their own will. Motivated employees are more productive than the apathetic workers. Low attrition. Low turnover rate. Motivated employees are more loyal towards their organizations. They are more comfortable while doing the work in the office. Employee will love their job.




(T&D)Motivation

and Maintenance

Suggestio

ns to l

eaders

on

motiva

tion: Explain how the

employee fits into the organizational plans.

Give chance to learn new skills.

Encourage new ideas and initiatives.

Involve employees in the decision making.

Celebrate the successes of the employees.

Recognize, reward and promote based on performance.

Provide feedback.

Provide them ownership in their work.

Give thanks personally, timely, often and sincerely.

Take time to meet and listen to staff.




(T&D)

Why Maintenance is important (Health and Safety):

Motivation and

Maintenance

Whatever sort of business you are, the underlying aim of good health and safety management is to make sure that people's safety is not put at risk

and that their health is not damaged.

A safe working environment does not just happen; it has to be created. The

organizations with the best reputations for safety have developed

well-planned and thorough

Remember, attention to health and safety is not just about obeying the

law and being socially responsible. It also makes good business sense.




(T&D)

Motivation and

Maintenance

Prevent accidents and health damage Reduce accident losses Cut absenteeism Improve the organization profit and loss statement Help you become more efficient Improve your business profile with customers

Why Maintenance is important (Health and Safety):


3- Characteristics of effective HRM

Building the effective Human Resources department is a tough task as it is about the complete change of the HR Processes, building the fair relationship with the internal customers and focusing on the main outcomes of Human Resources provided to the organization. The effective Human Resources management is about the clear definition of the goal of the department, the good knowledge about the HR Roles and Responsibilities in the organization and designing the right mix of HR Jobs as the duties can be fulfilled.


3- Characteristics of effective HRM

• The effective HR management is about setting the right roles and responsibilities to the individual team members as the HR departments processes the requests quickly and it has the additional capacity to build new and improved HR processes and procedures.

Setting the right roles and responsibilities

• The effective HR management is about the existing HR Career Paths as the employees of Human Resources feel they can grow inside the organization and they do not tend to change the job externally

The existing HR Career Paths

• The organization has to offer a valuable HR Career Path for the young fresh university graduates as they receive the right mix of the competencies and skills and they are fully compliant with the organization’s corporate culture.

Offer a valuable HR Career Path

• The right HR Profiles are extremely important and they have to be open to all HR employees as they can choose their own career track for the future.

Right HR Profiles

FOUR main characteristics


4- HRM new roles: HRM as business partner

Today’s HR Business Partner (HRBP) role has morphed from tactical support to a more strategic role in most organizations.

Many organizations transform the HR business model, but leave the wrong talent in the right roles.

Rarely are there clear enough performance and development expectations to help people understand how the role has transformed and what is now expected for peak performance.

Today’s HR Business Partner (HRBP)



The new role of HR as a business partner

As HR grew in it’s complexity becoming more involved in business forecasting, establishing business ROI and executing progress that could be directly tied to future and current business success, so evolved the role of the HR professional into something more than it ever intended to be.

HR is a strategic business partners forcibly involved in the success of organizations evaluating not just hiring, firing and traditional hiring advisory roles but so much more.

HR is a business partner in the Return of Investment (ROI) of any Organization



The Changing Role of HR

Strategic 15%

Operational85%

Strategic

60%

Operational40%

HR needs to realign its service delivery model to add more strategic value to the organization

The shift in the Balance of HR Role


5- Examples of HRM organization charts

MODULE



2- Types of competencies

Managerial competency (soft competency):

This type of competency relates to the ability to manage job and develop an interaction with other persons. For example : problem solving, leadership, communication, etc.

Functional competency (hard competency):

This type of competency relates to the functional capacity of work. It mainly deals with the technical aspect of the job. For example : market research, financial analysis, electrical engineering, etc.


3- The importance of competencies

The competency framework is considered as the basis for all HR functions and serve as the linkage between individual performance

and business results



It helps to:

Identify performance criteria

Improve the accuracy and ease of the hiring and selection process

Clarify standards of excellence for easier communication of performance expectations to direct reports.

Provide a clear foundation for dialogue to occur between the manager and employee about performance, development, and career-related issues.



Identification Process


4- Sample competency frameworks

Sample 1


4- Sample competency frameworks

Sample 2

MODULE



1- Recruitment versus selection

StaffingRecruitment Selection



Recruitment:

Recruitment is the process of identifying and attempting to attract candidates who are capable of filling job vacancies appropriately.

In other words Recruitment is a process to discover the sources of manpower to meet the requirements of staffing schedule and to employ effective measures for attracting that manpower in adequate number to facilitate effective selection of an efficient working force.

Selection:

In the selection function, the most qualified applicants are selected for hiring from among those attracted to the organization by the recruiting function.

On selection, human resource functionaries are involved in developing and administering methods that enable managers to decide which applicants to select and which to reject for the given jobs.



External Factors

Internal Factors

• Demand and supply of skilled laborers

• Unemployment problem• Government problem• Labor market• Sons of the soil (localization)• Organization image• Labor legislations

• Recruitment policy• Size of the organization• Recruitment cost• Growth and expansion• Human Resource PlanTw

o so

urce

s of R

ecru

itmen

t


2- Defining requirements and attracting qualified candidates

Attracting candidates is primarily a matter of identifying, evaluating and using the most appropriate sources of applicants.

However, in cases where difficulties in attracting or retaining candidates are being met or anticipated, it may be necessary to carry out a preliminary study of the factors that are likely to attract or repel candidates the strengths and weakness of the organization as an employer.

The analysis of strengths and weaknesses should cover such matters as the national or local reputation of the organization, pay, employee benefits and working conditions, the intrinsic interest of the job, security of employment, opportunities for education and training, career prospects, and the location of the office or plant.


2- Defining requirements and attracting qualified candidates

The analysis can show where the organization needs to improve as an employer if it is to attract more or better candidates and to retain those selected.

It is the matter of attracting the most appropriate source of applicants. However, it is always a good idea to carry out a preliminary study on the factors that are likely to attract/repel potential employees.

it is important to consider the following while attracting candidates

• Analyze the strengths and weakness of the business.• Analyze the requirements.• Identify Sources of candidates.• The Pros and Cons of Advertising and use of the Advertising media.• Use of Online recruitment facilities.• How and when to use services of Recruitment and Selection Consultants .

Choosing your methods of recruitment

Recruiting for skilled positions is becoming increasingly competitive, meaning organizations need to be increasingly creative in how they go about attracting the right candidate .

Assess where you are most likely to find your ideal candidate• Will they be recent graduates from colleges or universities?• Will they come from other nonprofit organizations?• Are they within your volunteer base?


3- Latest trends in sourcing channels

Internal sources

External sources



INTERNAL SOURCESTRANSFERS

PROMOTION

UPGRADING

DEMOTION

RETIRED EMPLOYEES



To keep the process positive is very important to be fair and

consistent in how you go about recruiting internally.



Internal resourcing advantages

Opportunity to retain qualified employee

Promotion to a higher level

Reduce time and cost

Reward to the employee

for past performance

Linked with career

development process

Internal recruitment

Advantages

EXTERNAL SOURCESREFERRALS

ADVERTISMENT INTERNET AGENCIES

CAREER FAIRS NETWORKING



Employee referralsRecruitment through referrals encourages employees to recommend potential candidates from their network. To ensure employees are willing to recommend their contacts for positions at your organization it is important to treat all referrals with respect and follow-up in a timely manner.

Print advertisementsPrint advertisements may appear in national or local newspapers, bulletins, professional journals, or magazines.

Internet recruitingThe opportunity may be posted on an internet job board, on your own website or on professional association websites. One study has shown that 96% of people looking for jobs use the internet



Recruitment agencies /Executive search firmsThese private companies will find and screen potential candidates for a fee, typically a percentage of the annual salary. It is important when using these services that you take the time to clearly define the position and your expectations of the services to be provided by the agency.

Career Fairs and Outreach ProgramsCareer fairs provide an opportunity to connect informally with interested candidates, often in a particular industry. Outreach programs may be geared towards underrepresented groups or people looking to re-enter the workforce.



Networking and LiaisonThis can involve reaching out to your existing network for recommendations or reaching out to other nonprofits. This could also involve efforts to build or increase your current networks in the hopes of connecting with new potential employees.


4- Types of assessment

• Preliminary Interview• Selection Tests• Employment Interview• Reference and Background Checks• Selection Decision



Scrutinizing the applications,conducting interviews,taking tests,assessing candidates through assessment centers,offering employment,obtaining references;

Selection of candidates is aimed at finding suitable candidates that would be competent in carrying the duties assigned successfully. It about matching the competencies, experience, skills, and education to the requirements of the job.

It also involves making the right choice between a pool of potential candidates. A trio exists that help the business in making selection decisions, The classic trio consists of:

• Application forms - Providing vital information on the credentials of the potential job candidate

• Interviews - offering a chance to the employer to observe and evaluate the candidate formally

• References. - Highlights the character and views of others about the potential employee.

• It is suggested that Selection tests and assessment centers shall be added to the above list of selection options




5- Reliability of assessment methodologies

• Application forms.• Employment interviews.• Aptitude tests.• Personality tests.• Procurement of Qualified and Skilled Workers• Reduced Cost of Training and Development.• Absence of Personnel Problems.

Interview may be

One to one Interview

Only two participants –1. Interviewer2. Candidate


6- Types of interviews

Sequential Interview

1 2 3

Involves series of interviewsCandidates moves from room to room



Panel Interview

Two or more interviewers

Formal




7- Competency based interview structure

Best predictor of a candidate's future performance is his/her past performance

Asks candidate to describe things they have actually done rather than what they would do in a given situation

Avoids stereotypes

Competency Based Approach

Past behaviors and performance Learning from past behaviors Future adaptability to new post Knowledge and understanding of issues in

relation to job

Assess candidates against essential criteria and competency





Which are the most relevant to this application?

Have you covered the essentials?

Which ones have made the most difference?

Approaches to InterviewingTraditional

● Fact finding - About candidate’s background● Theoretical - How you would implement or do something● Hypothetical/Situational - How would you deal with a hypothetical

situation

Competency BasedAllows candidates to prove their suitability for the job by quotingexamples of actual behavior:

Give an example when…… Describe an occasion when…… Tell about a time when……..



Place emphasis on evidence of outcomes Things you have done that you are proud of Situations you have handled particularly well Ways you have contributed to the success of your

organization Be conscious of your current work Start writing them down

Your ExamplesRecruitment and Selection


Tips for the Interviewee

Don’t over analyse body language – some people just fold their arms because they fold

their arms!

Body Language Panel

Observation of the audience is useful as it gauges:

Attention Agreement Disagreement Boredom



Be innovative and prepared to consider several different methods in order to attract the best person for the jobHow likely is it that your chosen methods will reach your target candidates?

Recruit efficientlyWhat are the timeframes to fill the positions?What size candidate pool will you need?For a general, unspecialized position you have a higher probability of finding a suitable candidate within a smaller pool so you will want to recruit in a ways that keeps the number of applications reasonableFor a very senior or highly skilled position you will likely need to reach out to the widest possible pool in order to get the best candidate


8- The selection decision

MODULE



1- Identification of training needs

A training need exists when an employee lacks the knowledge or skill to perform an assigned task satisfactorily.

To identify the range of training needs and define their content, the HRD uses different approaches to assessment of needs.

Training Need

Assessment

Survey

Group Recommendation

Task Identification

HR weaknessesOther Sources

Supervisors

Self-nominations

Training of employees is essential because work force is invaluable asset to an organization.Training is required on account of the following reasons:

• Newly appointed persons• Existing experienced employees• Technological changes• Internal mobility• Problem related with production



Survey among the potential trainees is conducted to identify specific topics about which they want to learn more.

The job description is evaluated to identify the salient tasks the job requires. Once trainers have an understanding of those tasks, specific plans are developed to provide the necessary training.

The group’s expertise may be tapped through a group discussion, a questionnaire, or a normal group meeting.

Survey

Group Recommendation

Task Identification

HR weaknessesThe weaknesses among HR activities like inappropriate placement, orientation, selection, or recruiting may lead to workers with deficiencies.



In this case employees are asked to nominate themselves for training and development programs where they want the differences in between their expected skills, knowledge and abilities.

Supervisors are able to observe employees on daily basis. They may recommend an employee for training and development as reward good employees.

Reviewing other sources of information includes different report. e.g. production records, quality control reports, grievances, safety reports, etc. it may reveal problems that should be addressed through training and development efforts.

Other Sources

Supervisors

Self-nominations


2- Design and delivery of training

Designing the Training Course:

It includes the following aspects:

• Deciding the contents of training

• Designing the support materials for training like study notes, case studies, pamphlets, charts etc.

• Preparation of budgets for alternative training package.


2- Design and delivery of training

Delivery of Training Course:

These rules should be observed while imparting training.

Time table: the trainers must

prepare a time table of the

training.

Personal attention: every trainee should be personally

cared.

Work: ‘Work’ should be

clearly defined.

Timing: work should be clearly and

slowly taught.

Employment: workers are to be allowed to

work. He should be

helped to do work by

removing mistakes and

doubts.


3- Developing and evaluating relevant training objective

Once training needs are assessed, training and development goals or objectives must be established. The main objectives of developing the training are:

• To provide basic knowledge and skills required to perform a specific task.• To provide latest concepts, information and techniques to employees for

performing efficiently in the present position.• To build a second line officers by giving training to occupy responsible position in

future.• Efficiency• Improves Quality• Versatility in Operations• Employees Stability


3- Developing and evaluating relevant training objective

Evaluation and Follow up:

• After deciding the training objectives the next step is designing an appropriate training policy.

• Matching the goals/objective with and policy will ensure the effectiveness of any training.

• Effectiveness of training programs is to be verified. The feedback generated through follow up will help to reveal the errors or mistakes done. It will also help in designing future training programs.


4- Training matrixes

A training matrix is a useful tool that will support managers to: Identify mandatory, role specific and individual training needs. Create new entrant training plans. Plan team training needs. Ensure all mandatory training is completed

Use excel demos


5- Effectiveness of delivery methods: the international benchmarks

Before considering specific training techniques, ask yourself these questions:

What are your training goals for this session?

• New skills• New techniques for old skills• Better workplace behavior• A safer workplace• A fair and equal workplace free of discrimination and harassment

Who is being trained? What is your training budget?

• New employees• Seasoned employees• Upper management



How much time has been allocated for training within your organization?

What training resources and materials do you have at your disposal?

Your answers to these questions begin the narrowing process for your training choices. Now let’s examine those training methods, their pros and cons, and where they best fit in a training program.

1.Classroom or Instructor-Led Training

2.Interactive Methods

3.Hands-On Training

4.Computer-Based Training (CBT)

5.On-line or E-Learning



MIT TRAINING DELIVERY METHODS SURVEY REPORT December, 2006


6- Evaluation of training effectiveness

Evaluation of training compares the post training results to the objectives achieved by managers, trainers, and trainees.

Evaluation should provide useful information about the effectiveness of training as well as the design of future training program.

Reaction interviews questionnaires

Learning Learned ideas skills

Behavior observation attitude

Results Improvement in productivity

Quality, time, sales,

turnover…

Leve

ls of

Eva

luati

on


6- Evaluation of training effectiveness

It is very important to assess the result of any training program. The participant must be made aware of the goals and objectives of the training program and on completion of the training program, they should be asked about the impact of the concerned training program.

Methods of training effectiveness/evaluation:

• Self assessment answer sheets• Questions confronted by the trainee• Assessing the collected information and observation• Final result based on earlier information plus the new data

MODULE


Staff and Organization

Performance and Development Reviewing

Action

Performance Planning


1- The performance management cycleEnabling staff to deliver

Taking stock of achievements,diagnostics

Setting Objectives, defining what is needed

Reset objectives

Mak

e ch

ange

s

» Major Areas of Responsibility» Individual Priorities» Knowledge, Skills and Behaviors» Development plan» Reaching agreement» End-of-cycle

review» Continuous

progress and development » Ongoing Feedback

» Coaching» Interim reviews


2- The main components of performance management


3- Performance management versus performance appraisal

Performance Appraisal continues to be one of the most criticized HR functions in

organizations

• We all measure our subordinates’ performance whether we do it formally or informally

• Very important to document what we evaluate• Also necessary to show a clear link between what we

evaluate and job requirements


4- Management by objectives

Peter Drucker introduced the concept of MBO.

Management By Objective:

• Objectives of the enterprise as a whole• SWOT analysis of an enterprise

Establishing Objectives

• Objectives of each manager• Subordinates overall objectives• Action plans to achieve the goals/targets

Establishing Targets

• Periodically• Progress, weakness and constraints are assessed• Improvements are decided in the review meetings.

Review of Performance

• Performance review (manager with subordinates)• New goals can be set upFeedback

MBO is a system in which specific performance objectives are jointly determined by subordinates and their superiors, progress toward objectives is periodically reviewed, and rewards are allocated on the basis of this progress.


4- Management by objectives

SMART Management by Objectives introduced theSMART method for checking the validity ofObjectives,

'SMART':• Specific• Measurable• Achievable• Realistic, and• Time-related.


5- Setting up a competency based performance management system

• Feedback and coaching – informal • Monitoring and tracking performance

against standards and progress toward goals.

• Quarterly performance planning and performance discussions

• Development through coaching, training, challenging or visible assignments, improving work processes



What performance will be measured?

• Behaviors – how the work is done• Performance factors / competencies• Required behaviors • Behaviors supporting desired organizational culture

• Results – what is achieved • Performance outcomes• Performance compared to job standards• Performance goals and/or objectives



Performance Review• Summary of performance over a

period of time• Evaluate performance results and

behaviors• Conducted face-to-face with a

written record.• While rating and ranking has both

pros and cons, a summary rating of each employee may be useful.


6- Talent management and succession planning DEFINING TALENT

‘ Talent consists of those individuals who can make a difference to organisational performance, either through their immediate contribution or in the longer term by demonstrating the highest levels of potential’

According to McKinsey, talent is the sum of • a person’s abilities, • his or her intrinsic gifts, • skills, knowledge, experience , • intelligence, • judgment, attitude, character, drive, • his or her ability to learn and grow


6- Talent management and succession planning TALENT MANAGEMENT

A conscious, deliberate approach undertaken to attract, develop and retain people with the aptitude and abilities to meet current and future organisational needs.

TALENT=COMPETENCE+COMMITMENT+CONTRIBUTION


6- Talent management and succession planning

1. Workforce Planning: Integrated with the business plan, this process establishes workforce plans, hiring plans, compensation budgets, and hiring targets for the year.

2. Recruiting: Through an integrated process of recruiting, assessment, evaluation, and hiring the business brings people into the organization.

3. Onboarding: The organization must train and enable employees to become productive and integrated into the company more quickly.

4. Performance Management: by using the business plan, the organization establishes processes to measure and manage employees.

PROCESS



5. Training and Performance Support: This is a critically important function. Learning and development programs is provided to all levels of the organisation. This function itself is evolving into a continuous support function.

6. Succession Planning: as the organization evolves and changes, there is a continuous need to move people into new positions. Succession planning, a very important function, enables managers and individuals to identify the right candidates for a position. This function also must be aligned with the business plan to understand and meet requirements for key positions 3-5 years out. While this is often a process reserved for managers and executives, it is more commonly applied across the organization.



7. Compensation and Benefits: This is an integral part of people management. Here organizations try to tie the compensation plan directly to performance management so that compensation, incentives, and benefits align with business goals and business execution.

8. Critical Skills Gap Analysis: This is a process we identify as an important, often overlooked function in many industries and organizations. While often done on a project basis, it can be "business-critical." For example, today industries like the Federal Government, Utilities, Telecommunications, and Energy are facing large populations which are retiring. How do you identify the roles, individuals, and competencies which are leaving? What should you do to fill these gaps? We call this "critical talent management" and many organizations are going through this now.


6- Talent management and succession planning RETAINING • Performance Driven Culture - Recognize high performers & high potential employees• Meet Employee Aspirations - Challenging Roles• Enhance Employee Connect - Empowered organization units

MODULE


DefinitionsCompensation:A money value is presented in return of an employee efforts doing certain tasks or jobs for definite or indefinite time frame . It varies in terms of formation and type presenting based on the nature of job. It is an obligatory right forced by law.


1- Components of compensation and benefits

Definitions

Benefits: A certain type of financial or non financial rewards are presented for the purpose of rewarding & recognition, to the employee in returns of his efforts doing a job. Some benefits are obligatory and some are not forced by Law.



DefinitionsSalary:A money value is presented in return of an employee efforts doing certain tasks or jobs, on monthly or annually basis. Manly are given to white collars.

Wage:A money value is presented in return of an employee efforts doing certain tasks or jobs, on hourly or daily basis. Manly are given to Blue collars.





More about Compensation & Benefits

• Compensation & Benefits are also known as Total Rewards

• An exchange of payment from an employer for the services provided by employees

• Compensation represents both the intrinsic and extrinsic rewards

employees receive for performing their jobs.

• In many organizations, Compensation & Benefits costs are the single largest

operating component.

Extrinsic vs. Intrinsic Compensation

Total Compensation

Extrinsic Compensation

Core Compensation

Hourly Wage

Annual/Monthly Salary

Adjustments to Core

Compensation

Cost of Living

Seniority

Merit

Incentive

Person-Focused

Legally Required Employee Benefits

Social Security Act

Workers Comp. Law

Family & Medical Leave

Act.

Discretionary Emp.Benefits

Health Ins.

Disability Ins.

Life Ins.

Retirement Plans

Paid time-off

Accommodation & Enhancement

Intrinsic Compensation

Job Characteristics

Skill variety

Task Identity

Task Significance

Autonomy

Feedback



Components of a Total Compensation • Financial

• Direct– wages, salaries, commissions, bonuses

• Indirect– insurance plans

• life, health, dental, staff meals, laptops & mobiles– social assistance benefits

• retirement plans, social security– paid absences

• vacations, holidays, sick leave



Components of a Total Compensation

• Non-Financial• The Job

– interesting, challenging, responsible– opportunity for recognition, advancement– feeling of achievement

• Job Environment– policies, supervision, co-workers, status symbols, working

conditions, flextime, compressed work week, job sharing, telecommuting, flexible benefits programs



Components of a Total Compensation

• There are two ways to make direct financial payments to

employees:

• you can base them on time or on performance.

• Time-based pay is still the foundation of most employers'

pay plans.




2- Job analysis

Job Analysis is the process of studying and collecting information related to the operations

and responsibilities of a specific job. The immediate products of this analysis are job

description and job specification.


Job Analysis(a process of obtaining all pertinent job facts)

Job Description•Job Title•Location•Job Summary•Duties•Machine tools etc.•Materials etc.•Supervision•Working Condition•Hazards

Job Specification•Education•Experience•Training•Initiative•Physical Effort•Responsibilities•Communication Skills•Emotional Characteristics•Unusual Sensory – Sights etc.

2- Job analysis


Job Analysis Information

Job Description & Job Specification

Recruitment & Selection

Career Planning

Performance Appraisal

Health & Safety

Salary & Wages

Employee Discipline

Training & develop

2- Job analysis

Job Analysis Process1. Collection of actual information

• Job information• Physical environment like temperature, noise, dirt, danger or comfortable office facilities• Jobs’ social environment: whether the work is performed in team, shifts or isolated work• Financial condition: information relating to wages paid, bonus, incentive scheme, etc.

• Quality of Personnel• Skill needed to perform the job• Personality factors• Experience


2- Job analysis

Job Analysis Process2. Preparation of job description

a statement showing details of the activities of the job is prepared.

3. Preparation of the job specificationit is a statement showing the minimum acceptable qualities required for a person to be placed on a job.

4. Report preparationthe job analyst make an analysis with the collected information with regard to details of activities of the job and the qualities of the person in the job.

5. Approval of the reportFinal approval is obtained from top executive after personnel manager approval and trade union opinion.


2- Job analysis

Importance of Job Analysis1. Job analysis provides complete knowledge about jobs2. It is the first step in the selection technique process3. It gives a complete picture about the job4. Job analysis is a useful tool for job evaluation5. It is useful to develop appropriate job design6. It determines the levels of standard of job performance7. Useful for job comparison8. Minimize risks9. Useful to fix standards


2- Job analysis

Methods used in Job Analysis• Questionnaire• Check list• Interview• Observation• Participation• Technical conference• Diary• Records


2- Job analysis


3- A total compensation management system

Compensation systems•Should reflect the idea that employees are valued contributors in the success of the organization.

•Should promote fair treatment.

Some Compensation Strategies promoting fair treatment

1. Relating job worth to differences in job requirements.2. Recognizing the worth and value of skills and

knowledge.3. Rewarding employee contributions and results

achieved.4. Promoting continued employee acquisition and

upgrading of knowledge and skills.



5. Supporting team and work unit cooperative efforts.6. Designing compensation plans that compete within labor markets.7. Aligning compensation of all employees with objectives & goals of organization.8. Providing a compensation package that enhances current lifestyles and provides long-term protection for employees.



A competitive compensation & benefits program:

AttractsRetainsMotivates




4- Job evaluation: guaranteeing 'internal consistency'

What is Job Evaluation

A job evaluation is a systematic way of determining the

value/worth of a job in relation to other jobs in an

organization. It tries to make a systematic comparison

between jobs to assess their relative worth for the

purpose of establishing a rational pay structure.



The process of job evaluation involves the following steps:

• Gaining acceptance.

• Creating job evaluation committee.

• Finding the jobs to be evaluated.

• Analyzing and preparing job description.

• Selecting the method of evaluation.

• Classifying jobs.



• External Equity: how a job's pay rate in one company compares to the job's pay rate in other companies.

• Internal Equity: how fair the job's rate is when compared to other jobs within the same company.

EquityThe equity theory of motivation assumes that people have a need for, values and seek fairness at work . There are four forms of equity:

• Individual Equity: the fairness of an individual's pay compared with his/her co-workers earnings for the same or similar jobs within the company based on each individual performance.

• Procedural Equity: the perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay.




4- Job evaluation: guaranteeing 'internal consistency'Factors affecting Equity


5- Salary surveys: guaranteeing 'external consistency'

• “External equity exists when employees in an organization perceive that they are being rewarded fairly

in relation to those who perform similar jobs in other organizations”.

• External equity exists when an organization's pay rates are at least equal to the average rates in the

organization’s market or sector.

• Employers want to ensure that they are able to pay

what is necessary to find, keep and motivate an

adequate number of qualified employees. Creating a

compensation structure that starts with competitive

base pay is critical.


• The use of salary surveys is critical in your ability to determine if your compensation

and benefits are comparable to similar roles in other organizations.

• It is important to ensure that the key responsibilities and goals of the roles being

compared are similar; as is the sector the organization is aligned with.


Salary Surveys

• Surveys collecting information about employee

compensation, including salary and benefits, are

commonly called salary surveys.

• Salary surveys are conducted with numerous

employers to determine pay levels for specific

job categories and are generally conducted

either by region, sector or job classification for

the purposes of comparability.



Salary Surveys

• In conjunction with other tools, salary surveys

can provide useful information to attract,

support and retain employees within the

context of an overall HR and organizational

plan.

• When designed and used properly, salary

surveys can provide useful benchmarking

information for comparing salaries and benefits


6- Salary surveys: guaranteeing 'external consistency'5- Salary surveys: guaranteeing 'external consistency'


5- The factor points system for evaluating jobs

The procedure involved may be explained thus:

1. Select key jobs. Identify the factors common to all the identified jobs such as skill, effort, responsibility, etc.

2. Divide each major factor into a number of sub factors. Each sub factor is defined and expressed clearly in the order of importance, preferably along a scale.

3. Once the worth of a job in terms of total points is expressed, the points are converted into money values keeping in view the hourly/daily wage rates.


7- Forces impacting compensation and benefits

Legal Consideration

Compensation policies

Union influences

Cost of living & Inflation rates

Markets Demand & Supply

Financial positioning ( Ability to pay)

Internal & External Equity

Basic Factors in determining pay rate in any organization:


7- Forces impacting compensation and benefits

Wage Mix

Compensation Policy of Org.

Worth of Job

Employee’s Relative Worth

Employer’s Ability to Pay

Legal Requirement

Collective Bargaining

Cost of Living

Area Wage Rates

Conditions of Labor Market

Factors that Influence Wage Levels

Internal Factors

External Factors

Often times we talk about the importance of a growth mind-set for our young learners but not for the adult learner. I suggest that having a growth mind-set is key for everyone in the human family. Seems

like a wonderful way to find happiness instead of discouragement, frustration and sadness

Trainer: Afzal Khan

Human Resources Management - Afzal Khan

Recruiting & HR

Transcript of Human Resources Management - Afzal Khan