Transcript HRM (1).ppt

EMPLOYEES ARE THE MOST IMPORTANT ASSET OF THE
ORGANIZATION
 The quality and effectiveness
of
the
organization
is
determined by the quality of
the people that are employed.
 Success
for
most
organizations
depends
on
finding the employees with the
skills to successfully perform
the tasks required to attain the
company’s strategic goals.
1. Companies hiring Generation Z for internships: The
oldest Gen Z will be a senior in college in 2015. Companies recruit
high school students for their internship programs, including
Deloitte, Microsoft, Rackspace and Lockheed Martin.
2. More millennials are taking leadership roles.
3. Honesty becomes a revered leadership trait.
4. The skills gap continues to widen.
5. Mobile hiring and the mobile job search explode.
6. Social media posts used to attract and retain talent.
7. Succession planning becomes a top priority: companies
hold onto their older workers in order to transfer their knowledge to
younger ones.
8. Women continue to seize power positions in the
workplace.
9. More people stepping out of traditional career paths.
In the recruitment/retention
arena,
some
expert
are
predicting
significant
new
pressure to replace aging baby
boomers who are dropping out
of the workforce at an increasing
pace.
Finally, the term “workplace” is
itself
becoming
more
ambiguous,
as
workers
telecommute from home or turn
to flex-time arrangements in
order to pursue a better worklife balance.
Functions of HRM
The Human Resource Management Process
Steps in strategic human resource planning
Recruitment is the process of:
 Locating
 Identifying
 Attracting capable candidates
Major Sources of Potential Job Candidates
Decruitment Options
Selection
Process
Flowchart
11
Quality of Selection Devices as Predictors
Interviews
– Unstructured (randomly chosen questions)
• Most common, least predictive, and prone to bias
– Structured (standardized sets of questions)
• More predictive of job success; less chance for bias
– Behavioral structured (asking how specific problems were
handled in the past)
• Past behaviors may be good predictors of future behavior
 Interviews most often used to determine
organization-individual fit
The Effectiveness of
Interviews
 Prior knowledge about an
applicant
 Attitude of the interviewer
 The order of the interview
 Negative information
 The first five minutes
 The content of the interview
 The validity of the interview
 Structured versus unstructured
interviews
Examples of “Can’t Ask and Can Ask” Interview
Questions for Managers
 Can’t Ask
– What’s your birth date? or
How old are you?
– What’s your marital status?
or Do you plan to have a
family?
– What’s your native
language?
– Have you ever been
arrested?
 Can Ask
– Are you over 18?
– Would you relocate?
– Are you authorized to work
in the United States?
– Have you ever been
convicted of [fill in the
blank]?—The crime must be
reasonably related to the
performance of the job.
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Weird Questions
If you were an animal, what kind of animal would you be? Why? (Publicis)
If you could be a superhero, what would you want your superpowers to be?
(Google)
How many fountains are at Versailles? (Amazon)
How much water flows through the Thames River each day? (Microsoft)
Why are manholes and their covers round ?
(Microsoft)
How would you move Mount Fuji? (Microsoft)
How many time does the average person use the word "the" in a day?
Describe the perfect remote control? (Microsoft-problem solving)
Tell me a joke (Deloitte).
How would you design a section of a grocery store for a blind person? (IKEA)
On a scale of 1 to 10, how weird are you? (Zappos)
“Outside the Box” Question
You are driving down the road in your car on a wild, stormy
night, when you pass a bus stop and you see three people
waiting for the bus:
1. an old lady who looks like she is about to die;
2. a long-time friend who once saved your life;
3. the perfect partner you have been dreaming about.
You only have room for one person in your car.
Who do you pick up?
OPTIONS:
 You could pick up old lady because she is going to die,
thus saving her first.
 You could pick up old friend because he once saved
your life. This could be the perfect chance to pay him
pack.
 You may never be able to find your perfect partner
again. So you could pick that person.
So…….
And the Oscar goes to!!!
A job candidate was hired from 200
applicants when he answered:
I would give the car keys to my old
friend and let him take the old lady to
the hospital.
I would stay behind and wait for the
bus with the partner of my dreams.
Selection is
A two-way Street
 Organization
selecting
employees
and
you
selecting company and
job: Good people have lots
of opportunities.
Question to be asked to HR:
Why do you enjoy working for this company?
Can you describe the work environment here?
Do successful people in the company tend to come from one area of the
company, or do they rise cross a cross-section of areas?
What advice would you give someone in this position?
Can you tell me about the people with whom I will be working?
How does the compensation and benefits package here compare with your
competitors?
Orientation
 Process to introduce new employees to organization
 Familiarize new employee to job and work unit
 Help employee to understand values, beliefs, and
acceptable behaviors
tocompany
Organization
and its
Familiarization
New employees to the
can be welcomed
with Values
an orientation
program that makes them feel at ease and like they're a part of the
team. Orientation programs vary depending on the industry, the
management style and the overall company culture. The orientation
Success
the Job
programImproved
can provide employees
withOn
a proper
introduction to the
company, what's expected and where they fit in to overall goals.
 Some options….
•
•
•
•
•
•
Minimizes Turnover
Tour Facility
Introduce to Co-Workers
Review Employee Handbook and Paperwork
Review Goals and Job Expectations
Provide Training and Shadowing
Assign a Mentor
 Development
Training
enhances the capabilities of an  enhances the capabilities of an
employee to perform his or her
employee to be ready to perform
current job:
possible future jobs:
Focuses on the current job
 Focuses on future jobs
Examples
 Training program to correctly identify
counterfeit currency
 Training program in the bank’s new
computer system
 1) Developmental education programs

a day-long workshop on “Emerging Issues in Finance &
Banking” or paying MBA
 2) Developmental job experiences

job rotation or job enlargement
 3)Developmental interpersonal relationships

mentoring
Training Cycle
Individualizing Formal Training to Fit the Employee’s Learning Style
Lectures
Participation and
Experiential
Exercises
Lectures
Visual Aids
Evaluating Training
Effectiveness
 Factors determining training
effectiveness:
– Training method used
– Individual motivation
– Trainee personality
• those with internal locus of
control, high conscientiousness,
high cognitive ability, and high
self-efficacy learn best
– Training climate
• ability to apply the learning to the
job
• IT: $2.9B
• Leadership: $2.6B
• Learning Technologies: $4.0B
• Sales Training: $2.2B
• Content Development: $3.5B
• Others: $44.2B
#s on T&D
In 2013,
organizations on
average spent
$1,208 per
employee on
T&D.
•
2013 Corporate and
government spend
for training activities
in the U.S. was app.
$141.7B.
•
The global market
for
training
expenditures in 2013
was about $306.9B
•
The market is so highly fragmented that the top
five segments represents only 12 percent of the
total market spend.
Size & Industry have a significant
impact on T&D expenses.
On the contrary….
 Tom Bird and Jeremy Cassell, authors of the recently
published Financial Times Guide to Business
Training:
 Vast amounts of money are spent – the book refers to almost
£40bn on business training in the UK alone in 2008, pointing out
that this is “slightly more than the 2012 UK budget for
education”. The US spends far more.
 At best, employees are trained to enable them to complete
certain tasks they could not previously do; at worst, everyone is
thrown together on a “business training” jaunt to a smart hotel,
which is treated as ”a jolly”, rather than a serious enabling
exercise.
Measuring the ROI
Measuring the amount of money generated by a group
before and after the training, and then comparing that
improvement with the cost of the training is the way to
measure the ROI. a metric must be determined for
evaluation.
Ex. safety training (goal of reducing the accident rate),
Statistics can be made that will verify the effectiveness
of such training.
If no measurable goals
The problem is no specific or measurable goals in many
of the "soft skills" taught to managers.
Ex. manager style training seminar. In fact, the
goal for such training might be something like: "To
be a better manager," whatever that means.
ROI on T&D
Purposes of Performance Evaluation
– Making general human resource decisions.
• Promotions, transfers, and terminations
– Identifying training and development needs.
• Employee skills and competencies
– Validating selection and development programs.
• Employee performance compared to selection evaluation and
anticipated performance results of participation in training.
– Providing feedback to employees.
• The organization’s view of their current performance
– Supplying the basis for rewards allocation decisions.
• Merit pay increases and other rewards
What Do We Evaluate?
Metrics that directly result
from employee effort such
as sales, turnover, or
quality
Actions such as sales calls
made, promptness in submitting
reports,
or
non-productive
activities like volunteering for
charity drives
Individual Task
Outcomes
Behaviors
Performance
Evaluation
Weak because they don’t
reflect productivity; often used
these
include
attitudes,
confidence, and looking busy
Traits
Performance Review Methods
Written
Essay
Graphic
Rating Scales
Critical
Incidents
BARS
MBO
Multi person
360-Degree
Review
Graphic Rating Scale
A performance appraisal that rates the degree to which the
employee has achieved various characteristics.
The critical incidents
 A set of procedures for systematically identifying
behaviors that contribute to success or failure of
individuals or organizations in specific situations.
A behaviorally-anchored rating scale (BARS)
 BARS is designed to bring the benefits of both qualitative and quantitative
data to the employee appraisal process.
 BARS compare an individual’s performance against specific examples of
behavior that are anchored to numerical ratings.
 MBO technique requires
the supervisor and the
employee to develop and
agree
on
realistic,
achievable
and
measurable objectives; to
determine how
those
objectives will be met; and
to agree on how results
will be measured.
 MBO is well suited for nonroutine positions, such as
executives, managers and
project leaders, in which
individuals have a higher
degree of control and
influence on an outcome that
is measurable.
Management by
objectives (MBO)
360-Degree
Evaluations
 It is a system or process in
which
employees
receive
confidential,
anonymous
feedback from the people who
work around them.
 The feedback forms include
questions that are measured on
a rating scale and also ask
raters
to provide written
comments.
The
person
receiving feedback also fills out
a
self-rating
survey
that
includes the same survey
questions that others receive in
their forms.
Suggestions for Improving Performance Evaluations
Emphasize behaviors rather than traits.
Document performance behaviors in a journal.
Use multiple evaluators to overcome rater biases.
Evaluate selectively based on evaluator competence.
Train evaluators to improve rater accuracy.
Provide employees with due process.
Average monthly net wage 2014 values for
single person with no children at 100% of the
average wage respectively
Factors That Influence Compensation
Employee’s
tenure and
performance
Size of
company
Geographical
location
Management
philosophy
Level of
Compensation
and
Benefits
Labor- or
capital-intensive
Company
profitability
Kind of job
performed
Kind of
business
Unionization
Compensation Types
– Base compensation
• Salary or hourly wages
– Fringe benefits
• Additional non-wage or non-salary forms of compensation
– Flexible benefits
• Employees can select a set of benefits within a certain
dollar amount
– Family-friendly benefits
• Help in balancing work and non-work responsibilities
– Employee assistance programs
• Help employees deal with troublesome personal problems.
Managing Diversity is a conscious choice and commitment by
an organization to VALUE
these differences by using
diversity as a source of strength to achieve organizational
goals.
Strategic Importance of Organizational Diversity
 Improves
– Corporate culture
– Recruitment
– Relationships with clients and customers
 Builds competitive advantage
– Understand and serve diverse customer base
– Heterogeneous teams deal better with complex
problems and challenging tasks
– More commitment to organization’s mission
Trade Unions
 Importance of building relationships with
employee representatives
 Role of trade unions has changed
 Importance of consultation
and negotiation and working
with trade unions
 Contributes to smooth change management and
leadership
Some general information about trade unions
The world’s
biggest trade
union, Germany’s
IG Metall
Today, only 11.8 % of
American workers are
union members; in the
private sector, just 6.9
percent.
Strikes are expensive:
French strikes have instigated
widespread fuel shortages, halted
public transportation, closed schools,
and cost the country $280-$560
million per day.
From 1970 to 2002, union density fell from:
44.8 to 29.3 % in Britain
32 to 22.6 % in Germany
21.7 to 8.3 % in France