By the beginning of the twenty-first By the beginning of the twenty-first century the problems of the scales century the problems of the scales being tippedbeing tipped so considerably towards so considerably towards rationalisation were beginning to rationalisation were beginning to show. Businesses becameshow. Businesses became more than more than slim; some became anorexic. Cost slim; some became anorexic. Cost cutting achieved impressive shorttemcutting achieved impressive shorttem results, but it cannot be repeated year results, but it cannot be repeated year after year without impairing the basicafter year without impairing the basic viability of the business. Steadily the viability of the business. Steadily the number of problem cases mountednumber of problem cases mounted..

PERSONNEL PERSONNEL MANAGEMENTMANAGEMENT

HUMAN RESOURCE HUMAN RESOURCE MANAGEMENTMANAGEMENT

TIME AND PLANNINGTIME AND PLANNING Short term, reactive, ad hoc, marginal

Long term, proactive, strategic, integrated

PSYCHOLOGICAL PSYCHOLOGICAL CONTRACTCONTRACT

Compliance Commitment

CONTROL SYSTEMPCONTROL SYSTEMP External controls Self-controls

EMPLOYEE RELATIONS EMPLOYEE RELATIONS PERSPECTIVEPERSPECTIVE

Pluralist, collective, low trust

Unitarist, individual, higt trust

PREFERRED PREFERRED STRUCTURES/SYSTEMSSTRUCTURES/SYSTEMS

Bureaucratic/mechanistics, centralised, formal, defined roles

Organic, devolved, flexible roles

ROLESROLES Specialist/professional Largely integrated into the management

EVALUATION CRİTERİAEVALUATION CRİTERİA Cost minimisation Maximum utilisation (human asset accounting)

HUMAN RESOURCE MANAGEMENTHUMAN RESOURCE MANAGEMENT (HRM)(HRM)THE FUNCTION OF ATTRACTING, DEVELOPING AND THE FUNCTION OF ATTRACTING, DEVELOPING AND MAINTAINING SUFFICIENT NUMBER OF SKILLED MAINTAINING SUFFICIENT NUMBER OF SKILLED EMPLOYEES TO PERFORM ACTIVITIES TO ACHIEVE EMPLOYEES TO PERFORM ACTIVITIES TO ACHIEVE ORGANIZATIONAL GOALSORGANIZATIONAL GOALS

ACTIVITIES AND FUNCTIONS IN HRMACTIVITIES AND FUNCTIONS IN HRMHR PLANNINGHR PLANNINGHR RECRUITMENT AND SELECTIONHR RECRUITMENT AND SELECTIONHR TRAINING AND DEVELOPMENTHR TRAINING AND DEVELOPMENTHR PERFORMANCE APPRAISALHR PERFORMANCE APPRAISALHR COMPENSATIONHR COMPENSATION/WAGE/WAGE MANAGEMENT MANAGEMENT

Figure 1.1. HRM roles and objectives

SUBCONTRACTORSUBCONTRACTORSS

HUMAN HUMAN RESOURCE RESOURCE

GENERALIST GENERALIST LINE MANAGERSLINE MANAGERS

STAFFING STAFFING OBJECTIVES OBJECTIVES

PERFORMANCE PERFORMANCE OBJECTIVESOBJECTIVES

CHANGE-MANAGEMENT CHANGE-MANAGEMENT OBJECTIVESOBJECTIVES

SUBCONTRACTORSUBCONTRACTORSS

HUMAN RESOURCE HUMAN RESOURCE SPECIALISTSSPECIALISTS

CONSULTANTS AND CONSULTANTS AND ADVISERS ADVISERS

HUMAN HUMAN RESOURCE RESOURCE

GENERALIST GENERALIST LINE MANAGERSLINE MANAGERS

ADMINISTRATION ADMINISTRATION OBJECTIVESOBJECTIVES

ENVIRONMENTAL INFLUENCES ENVIRONMENTAL INFLUENCES ON HRMON HRM

EXTERNAL EXTERNAL ENVIRONMENTAL ENVIRONMENTAL FACTORSFACTORS

WORKFORCE DIVERSITYWORKFORCE DIVERSITY

EXTERNAL SOURCES OF HREXTERNAL SOURCES OF HR

COMPETITORSCOMPETITORS

REGULATORSREGULATORS

INTERNAL INTERNAL ENVIRONMENTAL ENVIRONMENTAL FACTORSFACTORS

PERSONAL FACTORSPERSONAL FACTORSJOB CHARACTERISTICSJOB CHARACTERISTICSINTERPERSONAL INTERPERSONAL RELATIONSRELATIONSORGANIZATIONAL ORGANIZATIONAL FACTORSFACTORS

Figure 2.3. Strategic management and environmental pressures (Source: C. Fombrun)

HR PLANNINGHR PLANNINGDETERMINING THE RIGHT AMOUNT OF PEOPLE, DETERMINING THE RIGHT AMOUNT OF PEOPLE, WITH THE RIGHT QUALIFICATIONS AT THE RIGHT WITH THE RIGHT QUALIFICATIONS AT THE RIGHT TIME AND THE RIGHT PLACETIME AND THE RIGHT PLACE

DETERMINING THE DETERMINING THE RIGHT NUMBERRIGHT NUMBERPAST EXPERIENCESPAST EXPERIENCESEVALUATING WORK EVALUATING WORK LOADSLOADSPRODUCTION PRODUCTION TECHNOLOGYTECHNOLOGYPRACTICES OF OTHER PRACTICES OF OTHER FIRMSFIRMS

DETERMINING DETERMINING THE RIGHT THE RIGHT QUALIFICATIONQUALIFICATIONJOB ANALYSISJOB ANALYSIS

JOB DESCRIPTIONSJOB DESCRIPTIONS

JOB SPECIFICATIONSJOB SPECIFICATIONS

JOB EVALUATIONSJOB EVALUATIONS

Figure 3.2. A model of traditional manpower planning

Analyses fall broadly into two categories:Analyses fall broadly into two categories: analyses of staff leaving, and analyses of analyses of staff leaving, and analyses of internal movements. The following internal movements. The following ccalculationsalculations are the most popular forms of are the most popular forms of analysing staff leaving the organisation.analysing staff leaving the organisation.

JOB ANALYSIS METHODSJOB ANALYSIS METHODS

Job analysis have 2 main outputs: job Job analysis have 2 main outputs: job descriptions and job requirements.descriptions and job requirements.

INTERVIEW METHODINTERVIEW METHOD

STRUCTURED QUESTIONNAIRE STRUCTURED QUESTIONNAIRE METHODMETHOD

OBSERVATION METHODOBSERVATION METHOD

DIARY METHODDIARY METHOD

HR RECRUITING AND SELECTIONHR RECRUITING AND SELECTIONRECRUITINGRECRUITING(CANDIDATE SEARCH (CANDIDATE SEARCH

AND FIND PROCESS)AND FIND PROCESS)

INTERIOR SOURCESINTERIOR SOURCES

EXTERIOR SOURCESEXTERIOR SOURCES

SELECTIONSELECTION(SELECT THE QUALIFIED (SELECT THE QUALIFIED

EMPLOYEES AMONG EMPLOYEES AMONG CANDIDATES)CANDIDATES)

INTERIOR SOURCESINTERIOR SOURCES

EXTERIOR SOURCESEXTERIOR SOURCES

Recruitment is Recruitment is aan arean area; ; there arethere are important social and legal implications, but important social and legal implications, but perhaps most important is the significantperhaps most important is the significant part played in the lives of individual men part played in the lives of individual men and women by their personal experience and women by their personal experience ofof recruitment and the failure to be recruitment and the failure to be recruited.recruited.

If your decision is that you are going to If your decision is that you are going to recruit, there are four questions to recruit, there are four questions to determinedetermine the vacancy:the vacancy:

1.1. What does the job consist of?What does the job consist of?

2.2. In what way is it to be different from the job In what way is it to be different from the job done by the previous incumbent?done by the previous incumbent?

3.3. What are the aspects of the job that specify the What are the aspects of the job that specify the type of candidate?type of candidate?

4.4. What are the key aspects of the job that the What are the key aspects of the job that the ideal candidate wants to know beforeideal candidate wants to know before deciding deciding to apply?to apply?

The conventional HR approach to these The conventional HR approach to these questions is to produce job descriptionsquestions is to produce job descriptions and personnel specifications. Methods of and personnel specifications. Methods of doing this are well establisheddoing this are well established..

– BBreaking the job down into its componentreaking the job down into its component partsparts..– WWorking out what its chief objectives will beorking out what its chief objectives will be– RRecording this on paperecording this on paper..

Internet recruitment takes two basic forms. Internet recruitment takes two basic forms.

The first is centred on the employer’sThe first is centred on the employer’s own own website,website,

The second approach makes use of the The second approach makes use of the growinggrowing number of cyber-agenciesnumber of cyber-agencies

eemailing CV to the employer.mailing CV to the employer.

online application forms.online application forms.

TESTS AND INTERVIEWSTESTS AND INTERVIEWS

TESTSTESTSCOGNITIVE ABILITY COGNITIVE ABILITY TESTSTESTS

PHYSICAL ABILITY PHYSICAL ABILITY TESTSTESTS

PERSONALITY AND PERSONALITY AND INTEREST TESTSINTEREST TESTS

ACHIEVEMENT TESTSACHIEVEMENT TESTS

IINTERVIEWSNTERVIEWSSTRUCTURED STRUCTURED INTERVIEWINTERVIEWINTERVIEW INTERVIEW ACCORDING TO THE ACCORDING TO THE PURPOSEPURPOSEINTERVIEWS INTERVIEWS ACCORDING TO ACCORDING TO THEIR CONTENTTHEIR CONTENTINTERVIEWS INTERVIEWS ACCORDING TO THE ACCORDING TO THE WAY THEY ARE WAY THEY ARE CONDUCTEDCONDUCTED

Assessment centres incorporate multiple selection Assessment centres incorporate multiple selection techniques, and group selectiontechniques, and group selection methods outlined above methods outlined above form a major element, together with other work simulationform a major element, together with other work simulation exercises such as in-basket tasks, psychological tests, a exercises such as in-basket tasks, psychological tests, a variety of interviews and presentations.variety of interviews and presentations.

Assessment centres are used to assess, in depth, a group Assessment centres are used to assess, in depth, a group of broadly similarof broadly similar applicants, using a set of competencies applicants, using a set of competencies required for the post on offer and a seriesrequired for the post on offer and a series of behavioural of behavioural statements which indicate how these competencies are statements which indicate how these competencies are played out inplayed out in practice.practice.

Selection criteria are typically presented in Selection criteria are typically presented in the form of a personthe form of a person specification specification representing the ideal candidate, and representing the ideal candidate, and cover such areas as skills, experience,cover such areas as skills, experience, qualifications, education, personal qualifications, education, personal attributes, special attributes, interests andattributes, special attributes, interests and motivationmotivation..

Three perspectives can be used to determine Three perspectives can be used to determine selection criteriaselection criteria;;

– oorganisational fit, rganisational fit, – team/functional fit team/functional fit – job fit.job fit.

NON-MANAGERIAL LEVEL NON-MANAGERIAL LEVEL TRAINING PROGRAMSTRAINING PROGRAMS

ON-THE-JOB ON-THE-JOB TRAININGSTRAININGSAPPRENTICESHIP APPRENTICESHIP TRAININGTRAINING

JOB INSTRUCTION JOB INSTRUCTION TRAININGTRAINING

OFF-THE-JOB OFF-THE-JOB TRAININGSTRAININGSCONFERENCESCONFERENCESCLASSROOM GROUPSCLASSROOM GROUPSPROGRAMMED PROGRAMMED INSTRUCTIONSINSTRUCTIONSAUDIOVISUAL AUDIOVISUAL TECHNIQUESTECHNIQUESLECTURESLECTURESSIMULATION METHODSSIMULATION METHODSCOMPUTER-BASED COMPUTER-BASED TRAININGSTRAININGS

MANAGERIAL LEVEL TRAINING MANAGERIAL LEVEL TRAINING PROGRAMSPROGRAMS

ON-THE-JOB ON-THE-JOB TRAININGSTRAININGSCOACHINGCOACHING

UNDERSTUDY UNDERSTUDY ASSIGNMENTSASSIGNMENTS

JOB ROTATIONJOB ROTATION

OFF-THE-JOB OFF-THE-JOB TRAININGSTRAININGSCASE STUDYCASE STUDY

MANAGEMENT GAME MANAGEMENT GAME METHODMETHOD

ROLE PLAYING ROLE PLAYING METHODMETHOD

HR PERFORMANCE APPRAISALHR PERFORMANCE APPRAISALIDENTIFYING THE EMPLOYEES’ ACTUAL PAST IDENTIFYING THE EMPLOYEES’ ACTUAL PAST PERFORMANCES IN THEIR JOBS AND THEIR POTENTIAL PERFORMANCES IN THEIR JOBS AND THEIR POTENTIAL IMPROVEMENTSIMPROVEMENTS

HR PERFORMANCE APPRAISAL METHODSHR PERFORMANCE APPRAISAL METHODS

METHODS USING ABSOLUTE STANDARTSMETHODS USING ABSOLUTE STANDARTS

METHODS USING RELATIVE STANDARTSMETHODS USING RELATIVE STANDARTS

METHODS USING OBJECTIVESMETHODS USING OBJECTIVES

HR PERFORMANCE APPRAISAL HR PERFORMANCE APPRAISAL METHODS USING ABSOLUTE METHODS USING ABSOLUTE

STANDARTSSTANDARTSESSAY METHODESSAY METHOD

CHECKLIST METHODCHECKLIST METHOD

CRITICAL INCIDENT METHODCRITICAL INCIDENT METHOD

FORCED CHOICE METHODFORCED CHOICE METHOD

RATING SCALE METHODRATING SCALE METHOD

HR PERFORMANCE APPRAISAL HR PERFORMANCE APPRAISAL METHODS USING RELATIVE METHODS USING RELATIVE

STANDARTSSTANDARTS

INDIVIDUAL RANKING METHODSINDIVIDUAL RANKING METHODS

PAIRED COMPARISON METHODPAIRED COMPARISON METHOD

GROUP ORDER RANKING METHODGROUP ORDER RANKING METHOD (FORCED DISTRIBUTION METHOD)(FORCED DISTRIBUTION METHOD)

HR COMPENSATION MANAGEMENTHR COMPENSATION MANAGEMENTMANAGING THE WAGES, SALARIES, INCENTIVES, MANAGING THE WAGES, SALARIES, INCENTIVES, VOLUNTARY OR MANDATORY FRINGE BENEFITS WITHIN VOLUNTARY OR MANDATORY FRINGE BENEFITS WITHIN THE ORGANIZATONSTHE ORGANIZATONS

DIRECTDIRECT

COMPENSATIONSCOMPENSATIONS

WAGESWAGES

SALARIESSALARIES

INCENTIVESINCENTIVES

INDIRECTINDIRECT

COMPENSATIONSCOMPENSATIONS

VOLUNTARY FRINGE VOLUNTARY FRINGE BENEFITSBENEFITS

BENEFITS AS LEGAL BENEFITS AS LEGAL OBLIGATIONSOBLIGATIONS

JOB EVALUATIONSJOB EVALUATIONSSYSTEMATIC PROCEDURES TO COMPARE JOBS SYSTEMATIC PROCEDURES TO COMPARE JOBS IN ORDER TO DETERMINE THE WORTH OF ONE IN ORDER TO DETERMINE THE WORTH OF ONE JOB RELATIVE TO OTHER EXISTING JOBS JOB RELATIVE TO OTHER EXISTING JOBS

STEPS OF JOB EVALUATIONSSTEPS OF JOB EVALUATIONSGET INFORMATION ABOUT JOBGET INFORMATION ABOUT JOB

DETERMINE THE SIGNIFICANT COMPENSABLE DETERMINE THE SIGNIFICANT COMPENSABLE FACTORSFACTORS

CHOOSE A PROPER JOB EVALUATION METHODCHOOSE A PROPER JOB EVALUATION METHOD

COMPARE AND EVALUATE THE JOBSCOMPARE AND EVALUATE THE JOBS

ESTABLISH THE JOB HIERARCHYESTABLISH THE JOB HIERARCHY

COMPENSABLE FACTORSCOMPENSABLE FACTORSBASIC FACTORS THAT THE JOBS HAVE IN COMMON BASIC FACTORS THAT THE JOBS HAVE IN COMMON BUT IN DIFFERENT AMOUNTSBUT IN DIFFERENT AMOUNTS

SOME COMPENSABLE FACTORSSOME COMPENSABLE FACTORSSKILLSSKILLSEFFORTEFFORT

ACCOUNTABILITYACCOUNTABILITYRESPONSIBILITYRESPONSIBILITY

CREATIVITYCREATIVITYKNOW-HOWKNOW-HOWJUDGEMENTJUDGEMENT

WORK PRESSUREWORK PRESSUREWORK CONDITIONSWORK CONDITIONSPROBLEM SOLVINGPROBLEM SOLVING

JOB EVALUATION METHODSJOB EVALUATION METHODS

NON-QUANTITATIVE NON-QUANTITATIVE METHODSMETHODS

(NON-ANALYTICAL)(NON-ANALYTICAL)

RANKING METHODRANKING METHOD

GRADE DESCRIPTION GRADE DESCRIPTION METHODMETHOD

QUANTITATIVE QUANTITATIVE METHODSMETHODS

(ANALYTICAL)(ANALYTICAL)

POINT METHODPOINT METHOD

FACTOR FACTOR COMPARISON COMPARISON METHODMETHOD

INCENTIVESINCENTIVESEXTRA ALLOWANCES OFFERED TO AN EMPLOYEE TO EXTRA ALLOWANCES OFFERED TO AN EMPLOYEE TO ENCOURAGE HIM TO INCREASE HIS EFFORT IN ENCOURAGE HIM TO INCREASE HIS EFFORT IN PERFORMING HIS TASKPERFORMING HIS TASK

TYPES OFTYPES OF

INCENTIVE PLANSINCENTIVE PLANSINDIVIDUAL INDIVIDUAL INCENTIVE PLANSINCENTIVE PLANS

GROUP-BASED GROUP-BASED INCENTIVE PLANSINCENTIVE PLANS

COMPANY-BASED COMPANY-BASED INCENTIVE PLANSINCENTIVE PLANS

SOME EXAMPLES OFSOME EXAMPLES OF

INCENTIVESINCENTIVESPIECEWORK PLANSPIECEWORK PLANS

TIME-BASED PLANSTIME-BASED PLANS

COMMISSION PLANSCOMMISSION PLANS

ANNUAL BONUS PLANSANNUAL BONUS PLANS

STOCK OPTION PLANSSTOCK OPTION PLANS

PROFIT SHARING PLANSPROFIT SHARING PLANS

STOCK OWNERSHIP PLANSSTOCK OWNERSHIP PLANS

FRINGE BENEFITSFRINGE BENEFITSNON-FINANCIAL VOLUNTARY OR MANDATORY BENEFITS NON-FINANCIAL VOLUNTARY OR MANDATORY BENEFITS AND SERVICES OFFERED TO EMPLOYEESAND SERVICES OFFERED TO EMPLOYEES

VOLUNTARY FRINGE VOLUNTARY FRINGE BENEFITS OFFERED BENEFITS OFFERED BY THE EMPLOYERBY THE EMPLOYERPAYMENT FOR TIME NOT PAYMENT FOR TIME NOT WORKEDWORKEDPROTECTION AGAINST PROTECTION AGAINST HAZARDSHAZARDSRETIREMENT BENEFITSRETIREMENT BENEFITSSERVICES AS FRINGE SERVICES AS FRINGE BENEFITSBENEFITS

MANDATORY MANDATORY BENEFITSBENEFITS

SECURITY BENEFITSSECURITY BENEFITS

SAFETY BENEFITSSAFETY BENEFITS

HEALTH BENEFITSHEALTH BENEFITS

• Human resource management is fundamental Human resource management is fundamental to all management activity.to all management activity.

• It is possible to identify two distinct definitions It is possible to identify two distinct definitions of the term ‘human resource management’.of the term ‘human resource management’. The first describes a body of management The first describes a body of management activities, while the second signifiesactivities, while the second signifies a particular a particular approach to carrying out those activities.approach to carrying out those activities.

• Human resource managers are concerned with Human resource managers are concerned with meeting four distinct sets of organisationalmeeting four distinct sets of organisational objectives: staffing, performance, change objectives: staffing, performance, change management and administration.management and administration.

• HRM activities are carried out in various ways HRM activities are carried out in various ways through various forms of organisationalthrough various forms of organisational structure. In structure. In some larger organisations HR generalists work some larger organisations HR generalists work alongside specialists inalongside specialists in particular HR disciplines.particular HR disciplines.

• Human resource management can be Human resource management can be characterised as the latest in a series of characterised as the latest in a series of incarnationsincarnations that personnel practitioners have that personnel practitioners have developed since the origins of the professiondeveloped since the origins of the profession over over 100 years ago.100 years ago.

• The philosophy of human resource management in The philosophy of human resource management in this book is that it is a series ofthis book is that it is a series of activities which: activities which: first, enables working people and the business first, enables working people and the business which uses their skillswhich uses their skills to agree about the nature to agree about the nature and objectives of their working relationship; and, and objectives of their working relationship; and, second,second, ensures that the agreement is fulfilled.ensures that the agreement is fulfilled.

• Most current debates about human resource Most current debates about human resource management in general focus on themanagement in general focus on the extent and extent and nature of the responses needed in the face of nature of the responses needed in the face of developments in the businessdevelopments in the business environmentenvironment..

• Three of the most prominent current debates Three of the most prominent current debates focus on the nature of the psychologicalfocus on the nature of the psychological contract, contract, the relative wisdom of the ‘best fit’ and ‘best the relative wisdom of the ‘best fit’ and ‘best practice’ approaches andpractice’ approaches and predictions about the predictions about the future of work.future of work.