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Human Resource ManagementHuman Resource Management

PRINCIPLES OF HRM

• Strategic integration• Organisational flexibility• Commitment• Quality

STRATEGIC INTEGRATION

An attempt to treat all labour management processes – from recruitment and training to remuneration and retrenchment – in a strategic fashion by integrating them with the broader business concerns of the enterprise.

STRATEGIC HRM

• People are not just another cost or factor of production. They are the key to competitive advantage.

• Close ‘fit’ between human resources, internal processes and the external environment.

1. Devolution of responsibility for labour management to line managers.

2. Co-ordination of policies on recruitment, training & performance management.

FLEXIBILITY

• The flexible firm and the global economy.• Functional flexibility• Numerical flexibility• Financial flexibility

1. Core: Highly skilled knowledge workers. Full time jobs and job security.

2. Periphery: Casuals and part-time workers and short-term contractors.

COMMITMENT

• From ‘control’ to ‘commitment’ through changing the organisation’s culture.

• Mission statement: A statement of core values.

• Recruitment: Only recruiting those prepared to subscribe to these core values.

Cont’d

• ‘Transformational leadership’: CEO as visionary change agent.

• Ensuring employees demonstrate desired attitudes, competencies and behaviours.

• Culture Management – strong culture

QUALITY

• Culture of quality: Quality work, quality workers, quality products and services.

• Total Quality Management.

• Quality assurance and zero defects.

• Internal customers.

• Empowering workers via team working.

Differences between PM and HRMDifferences between PM and HRM

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

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

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

WHY IS HRM IMPORTANT?

Service is delivered by people.

Low quality HR leads to low quality

customer service.

In the 21st century effective knowledge

management translates into competitive

advantage and profits.

Knowledge comes from a firm’s people.

Copyright © 2005 Prentice Hall, Inc. All rights reserved. 12–17

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

OBJECTIVES OF HRM

It is concerned with the optimum utilization of the human resources within and organization.

It is concerned with the creation of conditions in which each employee is encouraged to make his best possible contribution to the effective working of the undertaking.

It is also concerned with the development of the sense of mutual respect and trust between management and workers through sound relations.

It endeavors to increase the productive efficiency to the workers through training, guidance and counseling and

It tries to raise the morale of the employee.

PERSONAL

OBJECTIVES OF HRM

• To recognize the role of HRM in bringing about organizational effectiveness.

• HRM is not an end itself. It is only a means to assist the organization with its primary objectives.

• Simply stated, the department exist to serve the rest of the organization.

ORGANIZATIONAL

OBJECTIVES OF HRM

• To be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization.

• The failure of organizations to use their resources for the society’s benefit in ethical way may lead to restrictions.

• For example, the society may limit HR decisions through laws that enforce reservation in hiring and laws that address discrimination, safety or other such areas of social concern.

SOCIETAL

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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.

The HRM Division

• It comprises of:

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Organization Development and Human Resource Planning Section.Services Section. Human Resource Development and Competency Section. Performance Appraisal, Disciplinary and Promotion SectionHRMIS Unit Psychology Management UnitAdministration Unit

Key Functions

Human Resource Planning

Recruitment & Selection

Compensation & Benefits

Performance Appraisals

Training & Development

HRM ACTIVITIES • Performance appraisal is concerned with determining how well

employees are doing their jobs, communicating that information to the employees and establishing a plan for performance improvement.

• Training and development activities help employees learn how to perform their jobs, improve their performance and prepare themselves for more senior positions.

• Career planning and development activities benefit both employees (by identifying employee career goals, possible future job opportunities and personal improvement requirements) and the organisation (by ensuring that qualified employees are available when needed).

• Employee motivation is vital to the success of any organisation. Highly motivated employees tend to be more productive and have lower rates of absenteeism and turnover.

HRM ACTIVITIES(Continued)

• Job analysis defines a job in terms of specific tasks and responsibilities and identifies the abilities, skills and qualifications needed to perform it successfully.

• Human resource planning or employment planning is the process by which an organisation attempts to ensure that it has the right number of qualified people in the right jobs at the right time.

• Employee recruitment is the process of seeking and attracting a pool of applicants from which qualified candidates for job vacancies within an organisation can be selected.

• Employee selection involves choosing from the available candidates the individual predicted to be most likely to perform successfully in the job.

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

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