Transcript Human Resource Management

Human Resource Management
Learning Objectives
• Understand the importance of Human
Resource Management to the organization
• Appreciate the key functions associated with
Human Resource Management
• Implement a Human Resource Planning
Process
• Understand the importance of Recruitment
and Selection
Learning Objectives
• Detail the main types of Compensation
and Benefits Systems
• Implement an effective Performance
Appraisal Process
• Understand the function of Training and
Development and its importance to the
organization
HRM & The Organization
What is Human Resource Management?
• Basic Definition
– ‘managing the employment relationship’
(Tyson, 1987)
• Key Assumption
– Employees are the most important asset of
the organization
Key Functions
Human Resource Planning
Recruitment & Selection
Compensation & Benefits
Performance Appraisals
Training & Development
Human Resource Planning
What is Human Resource Planning?
• “an effort to anticipate future business
and environmental demands upon and
organization and to provide personnel to
fulfil that business and satisfy that
demand”
(Bowey, 1974)
Human Resource Planning
• Human resource planning must be integrated
within the organizations strategic plans
• Senior management must emphasize the
importance of human resource planning
• Human resource planning must be based on
the most accurate information available
Source: Adapted from Tyson & York, 1992
Human Resource Planning
• Human resource planning must be
assigned or located within a central unit
• A clear plan must be developed with
associated time-spans and scope of
activity
Source: Adapted from Tyson & York, 1992
Human Resource Planning Process
Demand Analysis
Supply Analysis
Estimate Deficits/Surpluses
Develop Action Plan
Demand Analysis
• Emerges from a clear understanding of
the organizational strategy
– Technological Changes
– Products
– Workforce Requirements
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Skills
Qualifications
Experience
Gender
Demand Analysis
• Managerial Estimates (Subjective)
– Planned changes versus workforce requirements
• Work Study
– Systematic analysis of work
• People
• Skills
• Resources (materials & machines)
– Man hours per output unit
Demand Analysis
• Statistical Techniques
– Regression Analysis
– Econometric Models
Supply Analysis
• Amount of human resources that will be
available to the organization
• Sources
– Internal Labor Market
– External Labor Market
Internal Recruiting
• Internal Advertising
• Self Applicants
• Employee Referrals
– Supervisor/Manager Recommendations
• Succession Planning
External Recruiting
• Existing Candidate Pool
• Newspaper/Internet
– General
– Specialized Recruitment Magazines/Internet Sites
– Professional Associations
• Employment Agencies
– Executive Search Agencies
– Campus Recruiting
Estimate Deficits/Surpluses
• Does the supply of labor match the demand
for labor?
• How many employees will be required?
– Can they be secured from internal sources?
– What are the challenges of securing employees
from an external source?
• How many employees will have to be let go?
– For how long?
– Can they be re-recruited quickly, if required?
Develop Action Plan
• From the deficits/surpluses analysis a plan
that ensures that the day-to-day operational
human resource needs of the organizational
are catered for
• This plan includes specific detail on the
management of
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Recruitment & Selection
Compensation & Benefits
Performance Appraisals
Training & Development
Recruitment & Selection
The Recruitment Process
Job Analysis & Job Description
Source Candidates
The Recruitment Interview
Psychometric Testing
Reference Checks & Making an Offer
Job Analysis
• ‘The process of examining a job in detail
in order to identify its component tasks
The detail and approach may vary
according to the purpose for which the
job is being analyzed’
(Department of Employment Glossary of Training Terms, 1971)
Job Description - Key Elements
• Purpose of the Job
• Core Functions & Responsibilities
– Duties
– % of Time Spent on Activities
– Other
• Other Functions & Responsibilities
Job Description - Key Elements
• Supervisory Responsibilities
– Number of Staff
– Type of Employees
– Level of Authority to Hire
• Knowledge & Skills
– Required
– Preferred
– Desirable
Job Description - Key Elements
• Fiscal Responsibility
– Budgeting
– Approval Privileges
– Reporting & Auditing Functions
• Public Contact
• Physical Demands & Working Conditions
Seven Point Plan
1. Physical make-up; health, physique,
appearance
2. Attainments; education, qualifications,
experience
3. General intelligence
4. Special aptitudes
5. Interests
6. Disposition
7. Circumstances
Source: Rodgers (1952)
Five Fold Grading System
1. Impact on others; physical make-up,
appearance, speech
2. Acquired qualifications; education,
training, experience
3. Innate abilities
4. Motivation
5. Adjustment
Source: Munro Fraser (1954)
Job Description - Example
JOB
Title
…………
Location ………
No of Subordinates …
Responsibility
………………………
Budget ………………
AUTHORITY
Responsible to …………… …
Responsible for ………… ……
60% of time
25 % of time
15 % of time
RESPONSIBILITIES
…………… …
………… ……
………… ……
WORKING ENVIRONMENT
Sourcing Candidates
• Internal Recruiting
• External Recruiting
Internal Recruiting
• Advantages
• Disadvantages
External Recruiting
• Advantages
• Disadvantages
Screening Resumes
• Relevance of Education & Experience
– Is the candidates experience and educational
record appropriate for the position on offer?
• Interests & Abilities
– What are the candidates interests and abilities?
– Will these interests and abilities contribute to their
performance on the job?
Efficiency of the Recruitment Interview
• Highly effective if based on a detailed
job description
• Structured interviews, based on pre-set
questions, are more effective than
unstructured interviews
Functions of the Interview
Mutual Preview
Assessment
Negotiation
Source: Adapted from Anderson & Shackelton (1993)
Mutual Preview - Function
• Informal discussion that explains the
selection process and the job on offer
• Provision of a detailed and Realistic Job
Preview
Interviewer’s Objectives
• To ‘set the scene’ for the candidate and
the organization
• To inform the candidate of the
organization’s selection procedures
Candidate’s Objectives
• To understand what the selection procedure
will be and what will be involved during each
stage of the procedure
• To obtain an indication of what the job will
entail so that they can also decide their
suitability and interest in the position
• To get a better ‘feel’ for the organization
Assessment - Function
• Formal discussion guided by job
description and a number of pre-set
questions
Interviewer’s Objectives
• To document answers to pre-set
questions
• To probe candidate further on critical
aspects of the job
Candidate’s Objectives
• To provide the interviewer with sufficient
information to guide and influence their
decision
Negotiation - Function
• Negotiation of outstanding points
• Can be directed and led by both
interviewer and candidate
• May take place during interviewer or at
the offer stage of the recruitment
process
Interviewer’s Objectives
• To ensure that the offer is mutually
acceptable to the candidate and the
organization and that all potential areas
of conflict are resolved
• To smooth the transition from job to role
Candidate’s Objectives
• To expand and agree all contractual
and non-contractual terms and
conditions
• To smooth the transition from job to role
The Recruitment Interview - Advantages
• Quick and relatively easy to perform
• Perceived by the candidate as a natural
part of the recruitment process
• Allows the organization to get to know a
candidate
• Allows the candidate to find out more
about the organization
The Recruitment Interview - Disadvantages
• Open to errors
• Difficult for interviewer to discriminate
between relevant and irrelevant information
• Different conclusions can be reached
dependent on the type of interview conducted
• Early impressions can negatively and
inappropriately influence the interviewer’s
judgement
Psychometric Testing
• Cognitive Tests
– General Intelligence
– Spatial Ability
– Numerical Ability
• Personality Tests
– 16PF (Cattell et al , 1970)
– Occupational Personality Questionnaire (Saville &
Holdsworth, 1984)
Validity
• Face
– Does the test look right?
– Is it acceptable to th candidate and the
organization?
– Will it produce useful and relevant
information?
– Does the test come from a recognizable
source?
Validity
• Construct
– Does the test measure what it sets out to
measure?
– Does it correlate with other tools that
measure the same thing?
• Predictive
– Does the test predict how well an individual
is going to perform within the job?
Reference Checking
Preparation
Data Collection
Interpretation
Preparation
• Ensure that questions are relevant to the
position on offer
• Verify information already received
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Qualifications
Length of Service
Duties
Responsibilities
• Look for factual information
Data Collection
• Establish a rapport with the referee and
explain the purpose of the reference
check
• Ensure that you follow pre-set questions
• Keep to the facts
• Be alert to the responses given by the
referee
• Document all answers
Interpretation
• Be careful not to accept all information
at face value
• Use the information in conjunction with
that gathered from other sources to
evaluate the candidate
• If any doubt exists seek other
references
Checking References - Key Points
• Be Consistent
• Ask the same questions about each
applicant
• Ask questions relating to the
candidate’s ability to perform the job
• Cross-Check References from several
sources
• Document all information received
Giving References - Key Points
• Be Honest
• Verify the identity of the individual seeking the
reference
• Reply directly to the questions being asked
• Keep your answers to job related activity
• Make sure that any negative information
given can be supported by documented
evidence
Compensation & Benefits
Major Compensation Schemes
Flat Rate Only
Flat Rate Plus Payment By Results
Merit Pay
Profit/Gain Sharing
Piecework
Flat Rate Only
• Most popular compensation option for
organizations
• Easy to administer, understand an provides
stability of earnings for employees
– Hourly
– Weekly
– Monthly
• Best used where performance criteria difficult
to define
Flat Rate Plus Payment By Results
• Growing in popularity
• Mix of flat rate and bonus payments
• Immediacy of reward increases
motivation levels
• Can be difficult to administer
• Often hard to find an accurate measure
of performance
Merit Pay
• Bonuses paid on the basis of a
systematic assessment of performance
• Performance evaluated against set
objectives and from this a bonus or
merit payment is paid
• Often hard to find an accurate measure
of performance
Profit/Gain Sharing
• Bonuses are paid on the basis of overall
company performance
• Bonus paid either on the basis of
monetary or in terms of company
shares
• Profit/Gain Sharing increases
employees awareness of the overall
performance of the organization
Piecework
• Employees are paid only for the work
that they have completed
• Can cause considerable conflict with
employees as it does not gaurantee a
minimum income
Performance Appraisals
Why Have Performance Appraisal?
• Performance Appraisal offers several
advantages at the level of the:
– Individual
• Recognition of past effort
• Developmental requirements can be uncovered
– Team
• Alignment of effort with objectives
• Motivation of team members
– Organization
• Development of staff
• Achievement of key objectives
• Best and focused utilisation of human resources
Appraisal Overview
Plan Work &
Identify Skills
Observe &
Document
Performance
Business Plan
Job Description
Performance Goals
Production
Sales
Service
Profits
Productivity
Reward Review
Performance
Appraisal
Discussion
PAST
Performance Review
PRESENT
Development Review
FUTURE
The Appraisal Process
• Components
– People
• Manager
• Employee
• Peers
– Information
• Facts
• Opinions
– Emotion
• Positive
• Negative
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Appraisal Procedure
• Agree Objectives
• Monitor Performance
• Give Sufficient Notice
• Prepare Necessary Documentation
• Prepare Location
Appraisal Procedure
• Conduct Appraisal
• Complete Documentation
• Implement Plans
Eight Appraisal Techniques
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Ranking
Paired Comparisons
Critical Incident
Free-Form/Narrative
Self-Assessment
Assessment Centre
Performance
Rating
Source: Adapted from Gunnigle & Flood , 1990
Ranking
• Appraiser ranks employees from the
worst to the best based on specifica
characteristics or on overall job
performance
Ranking
• Strengths
– Simple
– Facilitates comparisons
• Weaknesses
– Subjective
– Poor basis for decisions
– Degree of difference between employees
difficult to specify
Paired Comparisons
• Appraiser ranks employees two at a
time and decisions on which is superior
are included in the final ranking order
for the whole organization
Paired Comparisons
• Strengths
– Simple
– Ease of decision making
• Weaknesses
– Complicated within a large workforce
– Challenges asociated with ranking
Critical Incident
• Appraiser observes incidents of good
and bad performance and employs this
information for judging and leading the
performance appraisal
Critical Incident
• Strengths
– More objective than previous techniques
– Job related
• Weaknesses
– Time consuming
– Requires skilled observation
Free-Form/Narrative
• General free-written evaluation by the
appraiser
Free-Form/Narrative
• Strengths
– Flexible
• Weaknesses
– Comparisons challenging
– Subjective
Self-Assessment
• Appraisee evaluates themselves based
on a particular template that has been
supplied by the organization
Self-Assessment
• Strengths
– Promotes self-analysis
– Participative
– Facilitates discussion
• Weaknesses
– Appraisee may be more lenient
– Conflict can occur between appraiser and
appraisee
Assessment Centre
• Appraisee receives a series of
assessments supplied, performed and
evaluated by specialized external
assessors
Assessment Centre
• Strengths
– Objective
– Range of techniques employed
– Range of demensions analyzed
• Weaknesses
– Expensive
– Not necessarily job specific
Performance
• Appraiser evaluates the degree to which
the appraisee has achieved specific
objectives
Performance
• Strengths
– Objective
– Job related
– Participative
• Weaknesses
– Requires awareness of measurable targets
Rating
• Appraiser specifies on a scale to what
degree relevant characteristics are
possessed by the appraisee
Rating
• Strengths
– Ease of comparison
– Capacity to assess characteristics from the
very simple to the complex
• Weaknesses
– Subjective
– Personality and behavioral traits difficult to
measure
Training & Development
What is Training?
Training refers to the acquisition of
knowledge, skills and abilities
required to perform effectively in
any given role
Knowledge, Skills & Abilities
• Knowledge is information specific and particular to a
subject, enabling a person to understand a subject to
an acceptable level
• Skill is a developed aptitude or ability in a particular
intellectual or physical area
• Attitude is an internal state which affects one’s
choice of action towards some objects, persons or
events
Training & Development Perspectives
Fragmented
Formalized
Focused
The Fragmented Approach
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Training is not linked to organizational goals
Training is perceived as a luxury
Non systematic approach to training
Training is directive and delivered by trainers
Training occurs with the training department
Knowledge-based courses
Focus on training not development
The Formalized Approach
• Training is directly linked to human
resource needs
• Systematic developmental training
linked to appraisals
• Knowledge based courses broadened
to skill based
• Line manager involvement in the
development of the course content
The Formalized Approach
• Training still performed by trainers but
the range of skills required increases
• Pre- and post - course activities
increase
• Training linked to individual needs
The Focused Approach
• Training and continuous development by
employees is now perceived as essential for
organizational survival and an integral part of
organizational strategy
• Training becomes a source of competitive
advantage
• On-the-job development
• Self selection for specialized training courses
The Focused Approach
• Training non-directive with the
exception of knowledge based training
courses
• New forms of training delivery explored,
such as open courses and e-learning
• Measurement of learning becomes
critical to the organization
The Training Cycle
IDENTIFY
EVALUATE
DEVELOP
IMPLEMENT
The Training Cycle
• IDENTIFY
– Identify issues affecting the business
performance
– Caution: Not all those identified can be
resolved via training
• DEVELOP
– Prioritise those identified and develop
training objectives
The Training Cycle
• IMPLEMENT
– Employ training solution
• EVALUATE
– Compare employee/team performance
before and after training
Training Needs Analysis
The systematic process of determining
and ordering training goals, measuring
training needs and deciding on priorities
for training action
Training Need
• The difference between the actual and
required human performance in some
specific areas of operations, where
improved training is the most
economical way of eliminating the
difference
Not Everything is a Training Need!
Business Need
Performance Need
Work Environment Need
Training Need
Benefits of Training Needs Analysis
• Organisational Focus on Performance
• Identifies Routes to Closing
Organisational Performance-Gaps
• Through Involvement Builds Internal
Commitment To Achieving
Organisational Targets
• Separates Non-Training Needs ‘Training Not the Only Panacea’
Difficulties with Training Needs Analysis
• Time-Consuming
• Generates High Expectations
• Requires Top-Level Support &
Understanding
• May Isolate Certain Categories of Staff
Training & Development
Accepted Core Competencies
• Identify and analyse the learning, training &
development needs of employees
• Plan, recommend, implement and monitor the
effectiveness of learning and development
initiatives that meet the present and emerging
business needs of the organisation and its
employees
Training & Development
New Core Competencies
• Recognise developments and trends in HRM and within
the organisation’s external and internal business
environment that are significant to both the organisation
and the employees
• Develop, implement, forecast and monitor effective
placement, deployment and release processes, to meet
the organisation’s needs
• Build internal capacity and lead change
Summary
• An appreciation of Human Resource
Management offers considerable benefits to
the organization
• Human Resource Planning emerges from a
clear understanding of the organizational
strategy
• Ownership of the Recruitment and Selection
Process must reside within the organization
Summary
• There are five main Compensation and Benefits
Systems
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Flat Rate Only
Flat Rate Plus Performance By Results
Merit Pay
Profit/Gain Sharing
Piecework
• Performance Appraisal offers several advantages at
the level of the:
– Individual
– Team
– Organization
Summary
• Training refers to the acquisition of
knowledge, skills and abilities required
to perform effectively in any given role
• Remember Not Everything is a Training
Need