Transcript Lecture-18.ppt

1
Fundamentals of
Public Administration
MPA - 406
Lecture – 18
FACILITATOR
Prof. Dr. Mohammad Majid Mahmood
Reflections
Human Resource Management
Human Resource
Management
The process of hiring,
developing, motivation,
and evaluating
employees to achieve
organizational goals
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Words of Wisdom
 Most chief executives acknowledge that there is a link between
HR practices and business performance.
 Retaining and motivating “knowledge workers” has become the
primary aim … When they leave, the business loses an essential
element of intellectual capital.
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Human Resource Management
Process
Job analysis
& design
HR planning &
forecasting
Training and
development
Employee
recruitment
Performance
Management
Employee
selection
Compensation
Management
Organizational Career Management
Job Analysis
A study of the tasks required
to do a particular job well.
Job Description
The tasks and responsibilities
of a job.
Job Specification
A list of the skills, knowledge,
and abilities a person must
have to fill the job.
Human Resource Planning (HRP)
The process of anticipating an
organization’s future human
resource needs and then
developing action plans for
fulfilling identified needs.
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
• 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
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The HR Planning Process:
The Systematic Review Of Human Resource Requirements To Ensure:
The Required
Number of
Employees
With The Required
Skills
Are Available When Needed
Human Resource Planning
Job analysis
& design
HR planning &
forecasting
Employee
recruitment
Employee
selection
Determine the number of people
needed by some future time
The HR
Demand
Forecast
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Estimate the number of people
currently involved who will be
available to fill jobs at
some future time
The Human Resources Planning Process
Strategic Planning
Human Resources Planning
Forecasting Human
Resource
Requirements
Demand =
Supply
No
Action
Comparing
Requirements and
Availability
Surplus of Workers
Restrict Hiring, Reduced
Hours, Early Retirement,
Layoff
Human
Resource
Availability
Shortage of
Workers
Recruitment
Selection
Methods to Forecast HR Needs
• Trend analysis
• Ratio analysis
• Scatter plot
Scatter plot shows projected staff size
Managerial judgment plays
a big role
Number of nurses
1400
1200
1000
800
600
400
200
0
0
500
1000
1500
Hospital size (# of beds)
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Forecasting HR Supply & Demand
• Forecasting
– The use of information from the past and present to identify
expected future conditions.
• Forecasting Methods
• Estimates—asking managers’ opinions, top-down or
bottom-up
• Rules of thumb—using general guidelines
• Delphi technique—asking a group of experts
Forecasting HR Supply & Demand
• Forecasting Methods (cont’d)
• Simulation
• Productivity ratios—units produced per employee
• Forecasting Periods
– Short-term—less than one year
– Intermediate—up to five years
– Long-range—more than five years
Using Computers to
Forecast HR Requirements
Computerized Forecast
Determination of future staff needs by projecting sales,
volume of production, and personnel required to
maintain this volume of output, using software packages
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Forecasting the Supply of Inside
Candidates
Qualifications inventories
Manual or computerized records
listing employees’ education,
career and development interests,
languages, special skills, and so
on, to be used in selecting inside
candidates for promotion
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Forecasting the Supply of
Outside Candidates
• Monitoring general economic conditions
• Newspapers, Magazines, & Journals
• Pakistan Government
Employee Recruitment
Job analysis
& design
HR planning &
forecasting
Internal
Labor Market
External
Labor Market
Employee
recruitment
Employee
selection
Follow a policy of promotion
from within
Find and attract qualified applicants
from the external sources
Advertising
Search
Firms
Job Fairs
Open
Houses
Applications to
Predict Job Performance
• Much like screening, some firms use job applications as a
tool to predict future performance
• They conduct statistical studies to find relationships between
responses and success
Interview Report
Name of person interviewed
Applying for position
Department
Qualifications
Excellent
Communication
Education
Related Experience
Interpersonal Skills
Problem Solving Skills
Adaptable to change
Comments:
Completed by
Satisfactory
Poor
Employee Selection
Job analysis
& design
HR planning &
forecasting
Employee
recruitment
Employee
selection
1. Initial screening: application and interview
2. Employment testing
3. Selection interview
4. Background and reference checks
5. Physical examination
6. Decision to hire
Employment
Selection
Process
Steps
Why
We
Fail?
Performance Problems
Major causes of performance problems:
 Knowledge or Skills - The employee does not know how
to perform his responsibilities correctly - lack of skills,
knowledge, or abilities.
 Motivation or Culture - The employee knows how to
perform, but does so incorrectly.
 Working Conditions - The problem is not employee
related, but is caused by working conditions, etc.
 Resources - Lack of resources.
1. Lack of Persistence
More people fail not because they lack
knowledge or talent but because they quit.
The total secret of success lies in two words,
persistence and resistance. Persist in what must
be done and resist what ought not to be done.
2. Lack of Confidence
People who lack confidence take the middle of the road;
and guess what happens in the middle of the road?
3. Excuses
Losers always have a book full of excuses to tell you why they could not.
We hear
excuses
like……
• I'm unlucky
• I'm born under the wrong stars
• I don't have contacts
• The economy is bad
The list can go on and on…….
4. Not Learning from
Past Mistakes
5. Lack of Discipline
Anyone who has accomplished anything
worthwhile has never done so without
discipline.
Poor self-esteem is a lack of self-respect and
self-worth. It leads to abuse of one's self and
others.
6. Poor Self-Esteem
7. Fatalistic
Attitude
A fatalistic attitude prevents people from
accepting responsibility for their position in life.
They attribute success and failure to luck. They
resign themselves to their fate.
Conclusion
So What We Do?
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Solution is HRD
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HRD Definition
HRD is…
“the integrated use of training and
development, organization development, and
career management to improve individual,
group, and organizational effectiveness.”
(McLagan, 1989)
Competencies of HRD Managers
• Leadership Skills
• Interpersonal Skills
• Global Mindset
• Change Agent
Functions of HRD
• Training & Development
• Organizational Development
• Career Management
Training
• Training – improving the knowledge, skills and
attitudes of employees for the short-term,
particular to a specific job or task – e.g.,
employee orientation
When Should We Provide Training?
•
•
•
•
New equipment, software
New tasks (job changed)
New regulations
Performance deficiency (gap)
Development
• Development – preparing for future
responsibilities, while increasing the capacity
to perform at a current job
TNA/SGA Techniques
Observation
Interviews
Questionnaires
Focus
Groups
Principles
to
Deliver
Training
Effectively
Principle 1 :
The Learning
Specialist
A learning specialist must
know the program,
lesson, subject, or skill to
be taught.
Principle 2 :
The Learner
A learner must attend with
interest to the program,
lesson, or subject.
Principle 3 :
The Language
The language used as a
medium between the learning
specialist and the learner must
be common to both
Principle 4:
The Lesson
The information or skill to be
mastered must be explained.
Principle 5 :
The Learning
Process
The learning process must
motivate learners.
Principle 6 :
Review and
Application
The evidence of individual development must be
reflected through a reviewing, rethinking, reproduction,
and applying of the material, information, or skill that
has been communicated.
Training and Development
Events
1 - 51
1 - 52
1 - 53
1 - 55
For Successful
Training & Development
Organization Development
Organization Development is a complex
strategy intended to change the
attitudes, values, and structure of
organizations so that they can better
adapt to new technologies, markets, and
challenges.
Warren Bennis
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OD Process Model
Step 1:
Managerial commitment to change.
Step 2:
Broad problem identification.
Step 3:
Identification of specific problem
area(s).
Step 4:
Data collection.
OD Process Model
Step 5:
Data analysis.
Step 6:
Development of change strategies.
Step 7:
Implementation.
Step 8:
Evaluation.
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Career Development
• Ongoing process by which individuals
progress through series of changes.
Career
• Traditional Career
• Protean Career
– Frequently changing based on changes in the
person and changes in the work environment
Job Changes within the Organization
Promotion
An upward move to a position with
more authority, responsibility, and pay.
Transfer
A horizontal move to a position with
about the same salary and
organizational level.
Demotion
The downgrading or reassignment
of an employee to a position
with less responsibility.
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Separations
Layoff
Temporary separation of an employee
Arranged by employer
Termination
Permanent separation of an employee
Arranged by employer
Resignation
Permanent separation of an employee
Arranged by employee
Retirement
Separation of an employee at the end of
his or her career
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Career Management - CHALLENGES
• A major challenge is how to balance advancing
current employees’ careers with simultaneously
attracting and acquiring employees with new
skills.
• Any other…….
HRD - challenges
Communication
barriers
Workforce
Demographics
Social
responsibility
Global
economy
Consider the following situations:
1.
2.
3.
4.
The athlete searching for a coach who really understands him.
The student waiting to see his guidance counselor at university.
The worker who has just begun working for a new boss.
A self-managing work-team and a supervisor about to meet to discuss
objectives for the next quarter.
Q:
What do these situations have in common?
Q: What do these situations have in common?
A: The need to manage performance effectively.
• Think of performance management as a kind of compass.
• Like a compass, the job of the manager or athlete coach, or
university guidance counselor is to indicate where the
individual or team is now, and to help focus attention and
effort on the desired direction.
What is Performance
Management?
It’s all about what people do,
how they do it and assessing
results.
Performance Management
• Aguinis (2012) defines:
PM is a continuous
process of identifying,
measuring and developing
the performance of
individuals and teams and
aligning performance with
the strategic goals of the
organization
What is Performance
Management?
Performance Management is an integrated
approach to delivering sustained success to
organisations by improving the performance of
people who work in them and by developing
the capabilities of teams and individual
contributions (Armstrong & Baron).
Your Experience
Think about your last
review:
– What thoughts come to
mind?
– What went right, what
went wrong?
What do Employees Expect?
• Positive/constructive feedback
on a regular basis
• Involvement in goal setting
• Be treated fairly and
consistently
• Sharing of information and
resources
• Job/career enrichment
opportunities
Elements of a
Performance Management System
Define Performance
Set objectives
TO ENERGIZE
EMPLOYEE
PERFORMANCE
Encourage Performance
Provide timely rewards
that are valued by
employees
Facilitate Performance
Provide resources
Rating Scale
4 - Excellent (Exceeds Standards)
3 - Good (Fully Meets Standards)
2 – Acceptable (Usually Meets Standards)
1 – Unsatisfactory (Fails to Meet Standards)
Performance Appraisal Methods
• Ranking Method
– Ranking employees from best to worst on a
particular characteristic, choosing highest, then
lowest, until all are ranked.
• Paired Comparison Method
– Ranking employees by making a chart of all
possible pairs of the employees for each
characteristic and indicating which is the better
employee of the pair.
360 Degree Feedback
Feedback
collected from
“Boss”
Internal
Customers
Colleagues
External
Customers
Self
Team
Members
Comparing with Desired Criteria
• The actual performance is compared with the desired or
performance criteria.
• The result can show the actual performance being more
than the desired performance or, the actual performance
being less than the desired performance depicting a
negative deviation in the organizational performance
Potential Rating Scale Appraisal Problems
• Unclear standards
– An appraisal that is too open to interpretation.
• Halo effect
– Occurs when a supervisor’s rating of a subordinate on one
characteristic biases the rating of that person on other characteristics.
• Central tendency
– A tendency to rate all employees the same way, such as rating them all
average.
Potential Rating Scale Appraisal Problems
• Strictness/leniency
– The problem that occurs when a supervisor has a
tendency to rate all subordinates either high or
low.
• Bias
– The tendency to allow individual differences such
as age, race, and gender to affect the appraisal
ratings.
REASONS WHY MANAGERS SOMETIMES
DO NOT ADDRESS PROBLEMS
 They hope the problem might go away by itself
 Lack of confidence
 A fear that if the problem is highlighted, more problems might
come up
 A fear of confrontation
 Worry that working relationships might be damaged
 Fear of being challenged
 Lack of time
 Not knowing where to start
 Lack of understanding that a performance issue exists
 Lack of support
How to Avoid Appraisal Problems
• Learn and understand the potential problems, and
the solutions for each.
• Use the right appraisal tool. Each tool has its own
pros and cons.
• Train supervisors to reduce rating errors such as halo,
leniency, and central tendency.
Performance Management Contributions
•
•
•
•
•
•
•
•
Motivation to performance is increased
Self-esteem is increased
Managers gain insight about subordinates
The definitions of job and criteria are clarified
Self-insight and development are enhanced
Administrative actions are more fair and appropriate
Organization goals are made clear
Employees become more competent
MANAGING
POOR PERFORMANCE
•
•
•
•
•
•
•
•
Active listening
Investigation
Informal discussion
Formal discussions
Time to improve
Ask for an explanation
Ensure your tone and manners are positive
Restate what is expected
MANAGING
POOR PERFORMANCE
•
•
•
•
•
•
Specify the improvement required
Be supportive
Keep records
Schedule a follow up meeting
Provide training, support, coaching, etc
Consideration of alternative action before dismissal
DEAL WITH PROBLEMS PROMPTLY
Otherwise:
• The poor performers can reasonably assume
their performance is acceptable
• Others may become de-motivated and
stressed
• The problem behaviour will become a habit
• A precedent may be set
• Your credibility may be damaged
Conclusion
• A well-designed performance management
system supports an integrated human
resource strategy which enables the
attainment of organizational and individual
goals
Compensation Management
Compensation Management
Compensation Management is the process of
developing, implementing, maintaining,
communicating & evaluating the
remuneration in order to get ,motivate &
retain the competent employees.
-Stephen P. Robbins
Compensation Management - Meaning
• It is the HRM function that deals with every
type of reward individuals receive in exchange
for performing organizational tasks.
• It is an exchange relationship.
-Stephen P. Robbins
Compensation should be…
•
•
•
•
•
•
Equitable
Balanced
Cost- Effective
Secure
Incentive- providing
Acceptable to the Employee
-Patton
Employee Compensation and Benefits
Financial rewards
Non financial rewards
Types of
Compensation
Compensation Management - Types
– Financial
• Direct (Wages, salaries, bonuses, commissions)
• Indirect ( Vacation, insurance, childcare
services)
-Stephen P. Robbins
Compensation Management - Types
Non Financial
•
•
•
•
•
Enhance dignity & satisfaction from work
Constructive social relationships
Allocation of sufficient resources
Offer supportive leadership
Enhance physiological health, intellectual growth
-Stephen P. Robbins
Purposes of Compensation
Ensure Equity
Contribution
based
Remuneration
Attract
Talent
Motivate
& Retain
Staff
Effective
Compensation
Administratively
Efficient
Reward Valued
Behavior
-Stephen P. Robbins
Relationship Between
Pay Equity & Motivation
My Input/
Output
Ratio
Comparis
on
Person’s
Input/
output
ratio
My
Input/
Output
Ratio
Comparison
Person’s
Input/
output
ratio
My Input/
Output
Ratio
Comparison
Person’s
Input/
output
ratio
INEQUITY
EQUITY
INEQUITY
(feelings of being Underpaid)
(Feeling of being paid fairly
(Feelings of being Overpaid)
-Harold Koontz
Aspects of
Compensation Planning
• Linking Compensation to Organizational Objectives
• Pay-for- Performance Standard
• Motivating Employees through Compensation
-Harold Koontz
Components of Compensation
1)
2)
3)
4)
5)
Wages – wages is the remuneration given periodically for the
services of labor in the process of production
Salary is the remuneration paid monthly or yearly basis to the
office staff.
Incentives– Payments by results. Are paid with salary for extra
productivity.
Fringe benefits– extra benefits provided to the employees e.g.
medical care, etc
Perquisites are the indirect benefits generally allowed to
executives such as furnished homes, stock options, club
membership etc
Factors Effecting Compensation Policy
EXTERNAL FACTORS
INTERNAL FACTORS
Conditions of the labor
market
Compensation strategy
of organization
Worth of job
WAGE
MIX
Area wage rates
Cost of living
Employee’s relative worth
Collective bargaining
Employer’s ability to pay
Legal requirements
-Patton
Compensation Criteria:
Differentials
• Pay is determined by:
– Knowledge/ skills involved
– Value addition to the company
• Intention of these differentials:
– To motivate people to strive for promotion to a higherpaying level
Compensation Criteria:
Value and Exchange Value
• Use value – the value of goods or services an
employee produces in a job
• Exchange value – whatever wage/salary the
employer and employee agrees on for a job
Compensation Criteria:
Job & Person-Based Structures
• Job-based structures relies on the work content –
 Tasks
 behaviors
 Responsibilities
• Person-based structure shifts the focus to the employee
 Skills, knowledge, or competencies the employee
possesses
Motivating Employees through
Compensation
• Pay Equity – An employee’s perception that
compensation received is equal to the value of the
work performed.
• Expectancy theory holds that employees exert
greater work effort if they have reason to expect that
it will result in a reward that is valued.
Value Added Compensation
Value Added Compensation is the compensation
of employees in ways that enhance motivation
and growth, while at the same time aligning their
efforts with the objectives, philosophies, and
culture of the organization.
-Patton
Benefits of
Compensation Management




Retains quality employees
Increases productivity
Reduces labor costs
Increases employee focus on organizational
objectives
-Harold Koontz
Cultural Diversity
1.
Lower costs
2.
Better hiring
3.
More effective marketing
4.
Greater employee creativity
5.
More effective problem-solving
6.
Quicker adaptation to change
Competitive
Advantages
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HRM ISSUES
• Outcome & Output
HRM ISSUES
• Efficiency & effectiveness
HRM ISSUES
• Hiring the wrong person
HRM ISSUES
• Useless interviews
HRM ISSUES
• Court actions
HRM ISSUES
• Salaries appear unfair
HRM ISSUES
• Poor training
HRM ISSUES
• HR lack of motivation
HRM ISSUES
• Communication Barriers:
The increasing diversity of
today's workforce brings a
wide variety of languages
and customs.
HOW TO ENSURE
IMPROVED PERFORMANCE
Set improvement goals
Establish comfort
Allow employee influences
Conclusion
• Well-designed Human Resource Management System enables the
attainment of organizational and individual goals which is the
major goal of Public Administration.
FACILITATOR
Dr. Mohammad Majid Mahmood