Staffing (Human Resource Management)

What is Staffing ?

Why Is HRM Important?

Research Findings: • A source of competitive advantage

▫ People-oriented HR creates superior shareholder value

• As an important strategic tool ▫ Achieve competitive success through people by treating

employees as partners

• To improve organizational performance

▫ High performance work practices lead to both high individual and high organizational performance

High Performance Work Practices

Influence on Organizational Performance

High Performing

Work Practices

Organizational responsiveness to

change and market

challenges

HRM Process

HR Planning

Forecast of Labor Demand

Forecast of Labor Supply

Forecast of Labor Shortage

Strategic HR Planning

Calculate the Net HR Requirements based on present HR inventory and Future Needs

Prepare the action program to acquire and/or develop the existing HR

Human resource planning ensures that the organization has the right number and kinds of capable people in the right places and at the right times

Identifying and Selecting Competent Employees

• Current Assessment: Present HR Inventory

▫ Name, Age, Education, Language Expertise, Prior Training, Special Capabilities and skills etc.

▫ HR Datsbase

• Job analysis - An assessment that defines jobs and the behaviors necessary to perform them. This results into:

Job description – it states job content, environment and conditions of

employment

Job specification – it states the minimum qualifications that a person must possess to successfully perform a given job

Sample

Recruitment and Decruitment

• Recruitment - locating, identifying, and attracting capable applicants

• Decruitment - reducing an organization’s workforce ▫ Firing

▫ Layoffs

▫ Attrition

▫ Transfers

▫ Reduced workweeks

▫ Early retirements

▫ Job sharing

Recruiting Sources

Decruitment Options

What is Selection?

• Selection - screening job applicants to ensure that the most appropriate candidates are hired

• Orientation - introducing a new employee to his or her job and the organization

Selection Decision Outcomes

Validity and Reliability (Selection Process)

• Validity is the degree to which the data predict the candidate’s success on the job for which he is selected.

▫ Are the data measuring what they are supposed to be measuring?

▫ Is there clear evidence that once on the job, individuals with high scores on this test, outperform individuals with low test scores?

• Reliability refers to accuracy and consistency of the measurement

▫ If the test is repeated under the same conditions, would it give essentially the same results?

▫ Would the individual’s score remain fairly consistent over time, assuming that the same characteristics are being measured?

Selection Tools

Selection Tools (cont.)

Selection Tools (cont.)

Training

Types of Training

Traditional Training Methods

Employee Performance Management

• HR activities for retention of employees

▫ Managing employee performance

▫ Developing an appropriate compensation and benefits program

• Performance management system establishes performance standards that are used to evaluate employee performance

Performance Appraisal Methods

Performance Appraisal Methods (cont.)

Human Resource Management

Personnel Management Vs. HRM

Personnel Management HRM

Focus Individual capabilities Organizational capabilities

Employment Contract

Rigid, no room for change Flexible, Flexi-hours, open-contract. Work from home etc.

Pay-Policy Based on skills and knowledge required.

Based on performance; value added incentives, continuous evaluation

Job Design Division of labor, specific function, departmentalized

Team-work, Job-rotation, Job enlargement, multi-tasking

Leadership Role Task-Oriented; Transactional

People oriented, Transformational

Objectives and Functions of HRM

HRM Objectives Supporting Functions

Societal Objectives 1. Legal Compliance 2. Benefits 3. Union management relations

Organizational Objective 1. Human Resource Planning 2. Employee Relations 3. Selection 4. Training and Development 5. Appraisal 6. Placement 7. Assessment

Key HRM Functions:

Operative Functions

Procurement

HR Planning == > Job Analysis == > Recruitment == >

== > Placement == > Induction and Orientation

Human Recourse Development

• Performance Appraisal

• Training

• Management Development

• Career Planning and Development ▫ Internal Mobility

Transfer

Promotion

Demotion

• Succession Planning ▫ Key employee identification

Implementation’ 1. Establish Policies and

Procedures 2. Execute … 3. Evaluate…

Compensation

• Job Evaluation ▫ Determine the relative

worth of jobs

▫ Classify jobs in different categories

▫ Determine value of jobs in different categories

• Wage and Salary Administration

• Incentives

• Fringe benefits ▫ Housing benefits

▫ Education to children

▫ Medical benefits to dependents

▫ Canteen facilities

▫ Conveyance facilities

▫ Recreation facilities

▫ Credit facilities

Maintenance

HRM activities related to non incentive employee benefits, safety and health.

• Compensating accidents

• Maternity/Paternity benefits

• Sickness and medical benefits

• Retirement benefits – provident fund, pension etc.

Integration

Process of establishing relationships – with people and task environment

• Motivating employees

• Developing interpersonal skills

• Grievance redressal

• Collective bargaining

• Handling disciplinary cases

• Conflict management

• Providing Comfortable Work Environment

The External Environment

• Economic Environment – recession/growth

▫ Level of unemployment

In 2014 the level of unemployment were

11.9% in European Union, 27.5% in Greece, 25.6% in Spain etc.

▫ Labor policies

Nature of employment – contractual/regular

Nature of compensations - pension plans/health and other benefits

The External Environment

• Employee Labor Unions

▫ Ability to negotiate with the employers Recruitment process, hiring criteria, promotions,

compensations, layoffs etc.

▫ Share of Unionized workforce: 11.3% in USA, 18% in Germany, 68.5% in Denmark, 26.8% in

Canada etc.

▫ Challenges for the management Strikes, protests against unfair labor practices

Strikes at Honda and Toyota factories in China indicated country’s struggle with income inequality, rising inflation, and property prices

The Legal Environment

• Limits managerial discretion in hiring, promoting, maintaining and discharging employees

▫ Novartis AG – a drug company has been charged with woman discrimination and forced to pay $ 250 million as a compensation by New York City Jury.

• A number of important laws and regulations affect what you can or can’t do as a manager

• Affirmative Action: Organizational programs that enhance the status of members of protected groups

The Legal Environment

Laws Year Description

Equal Pay Act 1963 Prohibits pay differences for equal work based on gender

Civil Rights Act, Title VII

1964 Prohibits discrimination based on race, color, religion, national origin, or gender

Age Discrimination in Employment Act

1973 Prohibits discrimination on the basis of physical or mental disabilities

Source: United States Equal Employment Opportunity Commission

Equal Employment Opportunity and Discrimination

The Legal Environment

Laws Year Description

Worker Adjustment and Retraining Notification Act

1990 Requires employers with more than 100 employees to provide 60 days notice before a mass layoff or facility closing

Family and medical leave act

1993 Gives employees in organizations with 50 or more employees up to 12 or more weeks of unpaid leave each year for family or medical reasons

Health Insurance Portability and Accountability Act

1996 Permits portability of employee’s insurance from one employer to another

Source: United States Equal Employment Opportunity Commission

Compensation/Benefits

The Legal Environment

Laws Year Description

Occupational Safety and Health Act (OSHA)

1970 Establishes mandatory safety and health standards in organizations

Privacy Act 1974 Gives employees a legal right to examine personal files and letters of references

Consolidated Omnibus and Reconciliation Act (COBRA)

1985 Requires continues health coverage following termination

Source: United States Equal Employment Opportunity Commission

Health/Safety

The Legal Environment

Laws Year Description

Worker’s compensation Act

1923 Ensures employers compensate employees for work related injuries

Trade Union Act 1926 Gave formal recognition to trade unions

Factories Act 1948 Regulate safety of work environment for employees working in factories

Employees Provident Fund and Misc Provision Act

1952 Requires employers to provide post-retirement benefits to their employees

Indian Context