SRC, HU701 1

Human Resource ManagementThe integration of all processes, programs, and systems in an organization that ensure staff are acquired and used in an effective wayThe process of attracting, developing and maintaining a talented and energetic workforce to support organisational mission, objectives and strategies.

SRC, HU701 2

Human as Resource

L C Megginson- HR can be thought of as

“ the total of knowledge, skills, creative abilities, talents and aptitudes of an organization's workforce, as well as the value, attitudes and beliefs of the individuals involved”

Its resource not a liability of the concern need to be explored, not to be exploited.

SRC, HU701 3

Financialsubsystem

Technologysubsystem

Marketing sub system

Production & Material

subsystem

HR sub-system

Organisation system

SRC, HU701 4

Nature of Human Resource ManagementHuman Resource (HR) Management

The design of formal systems in an organization to ensure effective and efficient use of human talent to accomplish organizational goals.

SRC, HU701 5

Strategic Human Resource Management

HR planningRecruitmentSelectionOrganizational and work designTraining and developmentPerformance reviewCompensationLabour relations

SRC, HU701 6

Human Resources as a Core Competency Strategic Human Resources Management

Organizational use of employees to gain or keep a competitive advantage against competitors.

Core CompetencyA unique capability in the organization that

creates high value and that differentiates the organization from its competition.

SRC, HU701 7

Possible HR Areas for Core Competencies

SRC, HU701 8

HR StrategiesThe means used to anticipate and manage the supply of and

demand for human resources. Provide overall direction for the way in which HR activities will be

developed and managed.

Overall Overall Strategic PlanStrategic Plan

Human Resources Human Resources Strategic PlanStrategic Plan

HR ActivitiesHR Activities

SRC, HU701 9

Human Resources Management

SRC, HU701 10

Factors That Determine HR Plans

SRC, HU701 11

Human Resource Planning Human Resource (HR) Planning

The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives.

HR Planning ResponsibilitiesTop HR executive and subordinates gather information

from other managers to use in the development of HR projections for top management to use in strategic planning and setting organizational goals

SRC, HU701 12

HR Planning Process

SRC, HU701 13

Internal Assessment of the Organizational Workforce

Organizational Capabilities InventoryHRIS databases—sources of information about

employees’ knowledge, skills, and abilities (KSAs)Components of an organizational capabilities

inventory Workforce and individual demographics Individual employee career progression Individual job performance data

SRC, HU701 14

Forecasting HR Supply and Demand

ForecastingThe use of information from the past and present to

identify expected future conditions. Forecasting Methods

Judgmental Estimates—asking managers’ opinions, top-down or bottom-up Rules of thumb—using general guidelines Delphi technique—asking a group of experts Nominal groups—reaching a group consensus in open

discussion

SRC, HU701 15

Forecasting Methods

SRC, HU701 16

Forecasting HR Supply and Demand Forecasting the Demand for Human Resources

Organization-wide estimate for total demand Unit breakdown for specific skill needs by number and type of

employee Develop decision rules (“fill rates”) for positions to be filled internally

and externally. Develop additional decision rules for positions impacted by the chain

effects of internal promotions and transfers.

Forecasting the Supply for Human Resources External Supply Internal Supply

SRC, HU701 17

Recruitment

The process by which a job vacancy is identified and potential employees are notified.

The nature of the recruitment process is regulated and subject to employment law.

Main forms of recruitment through advertising in newspapers, magazines, trade papers and internal vacancy lists.

SRC, HU701 18

RecruitmentSources

Present permanent employees

Consultants

Data Bank

employment employment exchangeexchange

Prof. associations

Advertisements

Campus Campus recruitmentrecruitment

Present temporary employees

Retired employees

Dependents of deceased , disabled employees

Casual applicants

Trade Unions

External

Internal

SRC, HU701 19

Recruitment techniques Promotion Transfer Scouting Advertising Walk-in Consult-in Head hunting Body shopping Business alliance Tele recruitment

SRC, HU701 20

Selection- a negative process

Prediction exercise Thus, Not Perfect

Decision-making exercise Purpose is to hire the

person(s) best able to meet the needs of the organization

Tied Back to Strategy

SRC, HU701 21

Selection

The process of assessing candidates and appointing a post holder

Applicants short listed – most suitable candidates selected

Selection process – varies according to organisation:

SRC, HU701 22

Steps in scientific selection processDevelopment bases for selectionApplication/CVWritten examPrelim interviewBusiness games/GDTestsCore/Final interviewMedical exam & reference checksLine manager’s decisionEmployment

Aptitude testsAchievement testsSituational tests

Interest tests

Personality tests

SRC, HU701 23

Selection

Interview – most common method Psychometric testing – assessing the personality

of the applicants – will they fit in? Aptitude testing – assessing the skills

of applicants In-tray exercise – activity based around what the

applicant will be doing, e.g. writing a letter to a disgruntled customer

Presentation – looking for different skills as well as the ideas of the candidate

SRC, HU701 24

Common Types of Interviews

Non-directive Most Latitude Questions are open ended This can get you into trouble

Behavioural Description As about a situation you have experienced.

Structured Panel Situational

Why is a Situational Analysis Good.

SRC, HU701 25

Reference Checks

Potential employer seeks to verify information

Important to have well-constructed questions

Can you Outsource This? How far can you dig?

SRC, HU701 26

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

SRC, HU701 27

Your Hired

Now What? Most Important Stage

SRC, HU701 28

Familiarization to Organization and its Values

Improved Success On the Job

Minimizes Turnover

Orientation/Induction

Process to introduce new employees to organization

Familiarize new employee to job and work unit

Help employee to understand values, beliefs, and acceptable behaviours

SRC, HU701 29

Training and Development

Learning experience that seeks relatively permanent change

Involves changing skills, knowledge, attitudes or behaviours

Training tends to be done for current job Develop usually means acquiring skills for

future work

SRC, HU701 30

Employee Training

What deficiencies, if any,does job holder have in terms of skills, knowledge, abilities, and behaviours?

What behaviours are necessary?

Is there a need fortraining?

What arethe strategicgoals of theorganization?

What tasks mustbe completedto achievegoals?

SRC, HU701 31

Training methods

ON THE JOB OFF THE JOB

•Job rotation

•Coaching

•Job Instruction training

•Committee assignments

•Multiple management

•Vestibule training

•Role playing

•Lecture methods

•Conference

•Programmed instruction

•Simulation

•Sensitivity training

•In-basket method

SRC, HU701 32

Performance Management

Integration of management practices that includes a formal review of employee performance How often should this take place?

Includes establishing performance standards and reviewing the performance

Means to ensure organizational goals are being met

SRC, HU701 33

Multi-personGraphic

Rating Scales

CriticalIncidents

WrittenEssay

BARS

Performance Review Methods

360-DegreeReview

MBO

SRC, HU701 34

If Performance Falls Short

Train Discipline Coach Out the Door

SRC, HU701 35

Compensation Management

Process of determining cost-effective pay structure

Designed to attract and retain

Provide an incentive to work hard

Structured to ensure that pay levels are perceived as fair

SRC, HU701 36

Factors That Influence Compensation

Unionization

Level ofCompensation

and Benefits

Employee’stenure and

performance

Kind of jobperformedSize of

company

Managementphilosophy

Kind ofbusinessGeographical

location

Labour- orcapital-intensive

Companyprofitability

Source: Management, Seventh Canadian Edition, by Stephen P. Robbins, Mary Coulter, and Robin Stuart-Kotze, page 274. Copyright © 2003. Reprinted by permission

of Pearson Education Canada Inc.

SRC, HU701 37

Health and Safety

Employers are responsible for ensuring a healthy and safe work environment

Employees are required for follow instructions and any legal requirements

Workplace violence is a growing concern

SRC, HU701 38

Labour Relations

Relationship between union and employer Union functions as the voice of employees Collective bargaining is a process to negotiate

terms and conditions of employment Bargaining produces a written document called a

collective agreement