9/2/2015Yrd. Doç. Dr.İbrahim İnan1 Human Resources Management

04/19/23 Yrd. Doç. Dr.İbrahim İnan 1

Human Resources

Management

04/19/23 Yrd. Doç. Dr.İbrahim İnan

The aim of this hand out is to help the students for better understanding the subject with a solid examples and explanations.

Prepared by Ibrahim Inan


SyllabusMid-term exam (30%)Final exam (50%)

presentations (15%)participation (5%)• attendance• speaking up


ProgramProgram

Introduction to Human Resource ManagementWhat is HRM?Human Resource Management at WorkResponsibilities of the HR Departmentwhat does HRM involveSpecific HRM FunctionsGoals of Human Resource Management

FUNCTION OF Human Resources ManagementRecruitmentSelectionEmployment LegislationDiscriminationDevelopmentTrainingRewards SystemsTrade UnionsDesired Outcomes of HRMProductivity

Human Resources Management : The Strategic Business Partner!


What is HRM? What is HRM?

ProductsServicesCapital Goods

(e.g. Equipment)

Labor

Raw Materials

Human Resource Management Human Resource Management includes all activities used to attract & retain employees and to ensure they perform at a high level in meeting organizational goals. These activities are made up of 1. Recruitment & selection. 2. Training and development. 3. Performance appraisal and feedback. 4. Pay and benefits. 5. Labor relations


HRM is a Separate DepartmentHRM is a Separate Department

SubsystemsA “Staff” perspective

Potential Employees Retired Employees Recruiting Hiring Education And training Termination Benefit administration ACTIVITIES OF HRM DATA MANAGEMENT EMPLOYEES THE FIRM


Human Resources

Research &Development,EngineeringManagement

Marketing

Materials,Production,and/orServicesManagement

Finance

Major Organization

alSubsystems

OBJECTIVES… EFFECTIVE UTILISATION OF HUMAN

RESOURCES ORGANISATIONAL STRUCTURE OF RELATIONSHIP DEVELOPMENT OF HUMAN RESOURCES REWARDS COMPATIBILITY OF INDIVIDUAL GOALS WITH THOSE OF AN ORGANISTION MAINTAIN HIGH MORAL..


Why a Separate Department is UsefulWhy a Separate Department is UsefulWhy a Separate Department is UsefulWhy a Separate Department is Useful

1) Importance of Human ResourcesCompetitive Advantage

2) Increasing ComplexityGlobal workforce

3) External InfluencesLegal Requirements

ACTIVITES OF HRM RECRUITMENT PLACEMENT TRAINING AND EDUCATION COMPENSATION MAINTENANCE

04/19/23 Yrd. Doç. Dr.İbrahim İnan99

Human Resource Management at Work

Management Process

The five basic functions of planning, organizing, staffing, leading, and controlling.



Human Resource Management

The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including

recruiting, screening, training, rewarding, and appraising.



All Managers are Human Resource managers

To avoid mistakes and getting results

Why is Human Resource Management is Important to all Managers?



Authority

The right to make decisions, direct others’ work, and give orders



Line Authority Staff Authority

The authority exerted by an HR manager by directing the activities

of the people in his or her own department and in service areas

Staff authority gives the right (authority) to advice other managers or employees

Line Manager Staff Manager

A manager who is authorized to direct the work of subordinates

and is responsible for accomplishing the organization’s

tasks

A manager who assists and advises line managers.



Line Managers Human Resource Duties

Human Resource Managers Duties

??????????????A line function

A coordinative FunctionStaff function



HR functions in small business

HR functions in medium size firm

Manager/Owner

Finance M.Operations M.Sales M.

President

HR M.Finance M.Operations MSales M.



HR functions in a large firm

President & CEO

HRM VP Finance VP Operations VP Marketing VP

Safety & HealthManager

Staffing Manager

Compensation & Benefits Manager

Training & Dev. Manager

Labor RelationsManager



President & CEO

Operations VP Finance VP HRM VP Marketing VP

An evolving HR organization

Other HRM FunctionsManager

BenefitsManager

TrainingManager

ExecutiveDevelopment

ManagerOutsourcedShared ServiceCenter


The Changing Environment of Human Resource Management

Globalization Trend

Technological Trends

Trends in the Nature of Work

High tech jobs

Service jobs

Knowledge work and human capital

Workforce demographic trends


The Changing Role of Human Resource Management

Strategic human resource

management

Formulating and executing human resource policy and practices that produce the employee competencies and behaviors the company

needs to achieve its strategic aims

Creating high performance work

systems

# Managing with technology# Effective HR practices# High performance work systems

Measuring the human resource

management team’s performance

Metrics (A set of quantitative performance measures use to assess their operations)

Managing with the HR scorecard

process

HR scorecard (Measures the HR function’s effectiveness and efficiency in producing employee behavior needed to achieve the company’s strategic goals


Responsibilities of the HR Department Advice and Counsel

Strategic Partner

Policy Formulation and Implementation

Employee Advocacy

Service


Every Supervisor or Manager is an HR Manager

Every Supervisor or Manager is an HR Manager

Anyone who deals with subordinates plays a HRM roleThe “Line” perspective


Tasks Completed by Line ManagersInterview job applicants

Provide orientation, coaching, and on-the-job trainingProvide and communicate job performance ratingsRecommend salary increasesCarry out disciplinary proceduresInvestigate accidentsSettle grievance issues


So just what does HRM involve?

Ways of categorizing HR activities


Four ActivitiesFour Activities

The Acquisition of

Human Resources

The Maintenance of

Human Resources

The Developmentof

Human Resources

The Rewarding of

Human Resources


How HR Functions Relate to HR ActivitiesHow HR Functions Relate to HR Activities

The Acquisition of Human Resources

PlanningAnalyzing JobsRecruitment

SelectionThe Development ofHuman Resources

AppraisingTraining

Developing


How HR Functions Relate to HR Activities, continuedHow HR Functions Relate to HR Activities, continued

The Rewarding ofHuman Resources

Compensating(Wages & Salaries)

(Incentives)

The Maintenance ofHuman Resources

Employee BenefitsSafety & HealthLabor Relations


Goals of Human Resource Management

The human resource function in contemporary

organizations

Facilitatingorganizational

competitiveness

Complying with legal and social

obligations

Promotingindividual growthand development

Enhancing productivity and

quality


Desired Outcomes of HRMDesired Outcomes of HRM

AttractionRetention Job PerformanceProductivityEmployee Safety and Health AttendanceJob SatisfactionCompetitive AdvantageCompany Performance


Specific HRM FunctionsSpecific HRM FunctionsHuman Resource PlanningAnalyzing JobsRecruitingSelectingAppraisingTrainingDevelopingCompensatingBenefitsWork Environment


HRM Planning:

Outsourcing Outsourcing: managers can decide to contract with outside workers rather than hiring them. Outsourcing is more flexible for the firm. Outsourcing often provides human capital at a lower cost. Outsource problems: managers lose control over output. Outsource contractors are not committed to the firm. Unions typically are against outsourcing that has potential to eliminate member’s jobs.


HRM Planning:

Job Analysis Job analysis determines the tasks, duties and responsibilities of the job. A job analysis should be done for each job in the organization. Job analysis can be done by: Observe current workers. Questionnaires filled out by worker and managers. Current trends are toward flexible jobs where duties are not easily defined in advance.


The Topic that we are covering in are presentation is feasibility of manpower resource, which is known as HR management in today’s corporate world.

Feasibility Study focusing manpower:

Feasibility Study focusing manpower A feasibility study phase provides the analyst with a more thorough understanding of the problems, opportunities related to personnel’s . A feasibility study should be conducted to determine the viability of an idea before proceeding with the development of HUMAN RESOURCE .

Objective of feasibility study in HR: To increase the benefit and lessen

the cost

Human ResourcesThe Strategic Business Partner! HRM Components Component should be consistent with the others, organization structure, and

strategy. Recruitment: develop a pool of qualified applicants


Economic feasibility As the world denotes that the economic feasibility means more benefit at less expenditure . So every organization must keep in mind while recruitments of the personnel’s that more people should not be employed than required as it can raise the cost.

Motivational feasibility Motivation plays a vital role in overall improvement in terms of efficiency of personnel’s. As through motivation more and more work with grater efficiency can be taken away from employees Different ways of motivations are: → Performance appraisals → Training and development → Improving working condition as par their health and security. → Incentives and perks etc.


Operational feasibility Before switching to new technology, it mainly examines whether the employees at work are comfortable with organizational frame work.. Are the Requirements, specifications and design clearly explained to the employees, so that they conduct their operations successfully.

Political feasibility It is perhaps the most power full type of feasibility. As every political system is biased. Because government issues, new polices which can effect the moral of the personnel’s at a larger extent. Hence these are the different types of feasibility having different effects on the conduct of personnel’s.


What Next? After the feasibility study has been

completed, a Feasibility Report is prepared covering following aspects. Basic information about the personnel’s The expectations as regards development schedule and manpower resources Highlighting the requirements of personnel’s. A gist of Technical, economical, Operational, motivational and political feasibility assessment.


SYSTEM ANALYSIS The analysis of the system is the basic necessity for an efficient system design.The need for analysis stems from the following points: To redefine or reset the objectives as a reference point in context of the current business requirement. To establish the system boundaries that define the scope and coverage of the system.

SYSTEM ANALYSIS STAGES The different stages as followed in the system analysis of the HR management information system are : ORGANISATIONAL ANALYSIS A Human Resources Information System, is a system that lets you keep track of all your employees and information about them . An analysis of the existing information system is necessary to propose new HRIS. CURRENT SITUATION ANALYSIS Here we analyze a company’s competitive situation, develops its strategic goals and mission, it’s external opportunities and threats, and its internal strength and weaknesses to generate alternatives. Also a plan of actions and deployment of resources is determined to achieve the pre-specified goals.


FUNCTION OF Human Resources Management


Recruitment


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.


Recruitment

Job description – outline of the role of the job holderPerson specification – outline of the skills and qualities required of the post holderApplicants may demonstrate their suitability through application form, letter or curriculum vitae (CV)


Recruitment

Recruitment External recruiting:

Managers look outside the firm for people who have not worked at the firm before. Managers advertise in newspapers, hold open houses, recruit at universities, and on the Internet. External recruitment is difficult since many new jobs have specific skill needs. A multi-prong approach to external recruiting works best. Internal Recruiting: positions filled within the firm. Internal recruiting has several benefits: Workers know the firm’s culture, may not have new ideas. Managers likely already know the candidates. Internal advancement can motivate employees.


Selection


Selection

Selection: determine relative qualifications & potential for a job. Training & Development: ongoing process to develop worker’s abilities and skills. Performance appraisal & feedback: provides information about how to train, motivate, and reward workers.Managers can evaluate and then give feedback to enhance worker performance.


Selection

The process of assessing candidates and appointing a post holderApplicants short listed – most suitable candidates selectedSelection process – varies according to organisation:


Selection

Interview – most common methodPsychometric testing – assessing the personality of the applicants – will they fit in?Aptitude testing – assessing the skills of applicantsIn-tray exercise – activity based around what the applicant will be doing, e.g. writing a letter to a disgruntled customerPresentation – looking for different skills as well as the ideas of the candidate


Selection

Selection Process Paper & Pencil Tests: Either an ability and personality test. Ability test: assess if applicant has right skills for the job. Personality test: seek traits relevant to job performance. Be sure test is a good predictor of job performance. Performance Tests: measure job performance. Typing speed test is one example. Assessment Center: candidates assessed on job-related activities over a period of a few days. References: outside people provide candid information about candidate. Can be hard to get accurate information.


Selection Process

Selection Process After a pool of applicants are identified, qualifications related to the job requirements are determined: Background Information: includes education, prior employment, college major, etc. Interview: almost all firms use one of two types: Structured interview: managers ask each person the same job-related questions. Unstructured interview: held like a normal conversation. Usually structured interviews preferred; bias is possible. Physical Ability Test: measure strength & endurance. Good for physically demanding jobs.


Employment Legislation


Employment Legislation

Increasingly important aspect of the HRM roleWide range of areas for attentionAdds to the cost of the business

Even in a small business, the legislation relating to employees is important – chemicals used in a hairdressing salon for example have to be carefully stored and handled to protect employees.


Discrimination

Crucial aspects of employment legislation:

RaceGenderDisability

Disability is no longer an issue for employers to ignore, they must take reasonable steps to accommodate and recruit disabled workers.

Copyright: Mela, http://www.sxc.hu


Discipline


Discipline

Firms cannot just ‘sack’ workersWide range of procedures and steps in dealing with workplace conflict

Informal meetingsFormal meetingsVerbal warningsWritten warningsGrievance proceduresWorking with external agencies


Development


Development

Developing the employee can be regarded as investing in a valuable asset

A source of motivationA source of helping the employee fulfil potential


Training


Training

Similar to development:Provides new skills for the employeeKeeps the employee up to date with changes in the fieldAims to improve efficiencyCan be external or ‘in-house’


Types of Training Training Development Apprentice

Ships On-the-job Training On-the-job Training Needs Assessment : Types of Training Classroom Instruction: workers acquire skills in classroom. Includes use of videos, role-playing, simulations. On-the-Job Training: learning occurs in the work setting as worker does the job. Training given by co-workers and can be done continuously. Apprenticeships: worker contracts with a master worker to learn a skill.Types of Development Varied Work Experiences: Top managers must build expertise in many areas. Workers identified as possible top managers given many different tasks. Formal Education: tuition reimbursement is common for managers taking classes for MBA or similar. Long-distance learning can also be used to reduce travel. Whatever training and development efforts used, results must be transferred to the workplace.


Training & Development Training

Reliability & Validity Selection tools must be reliable and valid. Reliability: the degree to which the tool measures the same thing each time it is used. Scores should be close for the same person taking the same test over time. Validity: Does the test measure what it is supposed to measure? Example: does a physical ability test really predict the job performance of a firefighter? Managers have an ethical and legal duty to develop good selection tools.

Training & Development Training: teach organizational members how to perform current jobs. Help worker’s acquire skills to perform effectively. Development: build worker’s skills to enable them to take on new duties. Training used more often at lower levels of firm, development is common with managers. A Needs Assessment should be taken first to determine who needs which program and what topics should be stressed.


Rewards Systems


Rewards Systems

The system of pay and benefits used by the firm to reward workersMoney not the only methodFringe benefitsFlexibility at workHolidays, etc.


HRM Components Pay and Benefits:

High performing employees should be rewarded with raises, bonuses. Increased pay provides additional incentive. Benefits, such as health insurance, reward membership in firm. Labor relations: managers need an effective relationship with labor unions that represent workers. Unions help establish pay, and working conditions. If management moves to a decentralized structure, HRM should be adjusted as well.


Pay and Benefits Pay level

How the firm’s pay incentives compare to other firms in the industry. Managers can decide to offer low or high relative wages. Pay Structure: clusters jobs into categories based on importance, skills, and other issues. Benefits: Some are required (social security, workers comp). Others (health insurance, day care, and others) are provided at the employers option. Cafeteria-style plan: employee can choose the best mix of benefits for them. Can be hard to manage.


Trade Unions


Trade Unions

Importance of building relationships with employee representativesRole of Trade Unions has changedImportance of consultation and negotiation and working with trade unionsContributes to smooth change management and leadership


Unions Unions

Unions Unions represent worker’s interests in organizations. Managers usually have more power over an individual worker. Workers join together in unions to try and prevent this. Unions are permitted by the National Labor Relations Act (1935) which also created the NLRB to oversee unions. Not all workers want unions. Union membership costs money in dues and a worker might not want to strike. Union membership is lower today than 40 years ago. Collective bargaining: process unions and management go through to negotiate work agreements. Results in a contract spelling out agreed terms.


Labor Relations

Considers all activities managers perform to ensure there is a good relationship with labor unions. There are laws regulating some areas of employment. Fair Labor Standards Act (1938) prohibits child labor, sets a minimum wage and maximum working hours. Equal Pay Act (1963) men and women doing equal work will get equal pay. Work Place Safety (1970) OSHA mandates procedures for safe working conditions


Productivity


Who Appraises Performance?

Self: self appraisals can supplement manager view. Peer appraisal: coworker provides appraisal; common in team settings. 360 Degree: provides appraisal from a variety of people able to evaluate a manager: Peers, customers, superiors, self. Need to be alert to bias from some evaluators. Effective feedback: appraisals must provide feedback: Formal appraisals: conducted at set times of the year Provides valuable, but infrequent feedback. Informal appraisals: manager provides frequent feedback informally.


Performance Appraisal & Feedback

Trait Appraisals:

Evaluate on traits (skills, abilities) related to the job. Problem: Even though a worker has the trait, they may not

use it in the job and it is hard to give feedback. Behavior Appraisals: how a worker does the job. Focuses on what a worker does and provides good feedback options. Results appraisals: what a worker accomplishes. Sales reps are usually evaluated on what they sell. Objective appraisals: based on facts (sales figures) Subjective appraisals: based on a manager’s perceptions of traits, behavior, or results. Many rating scales used to overcome subjective problems.


Productivity

Measuring performance:

How to value the workers contributionDifficulty in measuring some types of output – especially in the service industryAppraisal

Meant to be non-judgmentalInvolves the worker and a nominated appraiserAgreeing strengths, weaknesses and ways forward to help both employee and organisation


STRATEGIES FOR HR REQUIREMENT DETERMINATION

The methods for forecasting and planning HR needs are : INTERVIEW … A face to face method for collecting data. It may be formal or informal, questions asked may be structured or unstructured. Success of an interview depends on the skill of the interviewer and on his or her preparation for the interview.

QUESTIONAIRE … A structured questionnaire can be used to collect data. The questionnaire is pre-tested, modified, and used to capture data on a cross-section of HRIS users. There are four parts to the questionnaire: profiles of organizations; application of HRIS; perceptions of the barriers to the implementation of HRIS and perceptions of the benefits achievable through HRIS; and profiles of the respondents.


Effective Feedback:

1. Be specific and focus on correctable behavior. Provide a suggested improvement. 2. Focus on problem-solving and improvement, not criticism. 3. Express confidence in worker’s ability to improve.4. Use formal and informal feedback. 5. Treat subordinates with respect and praise achievements. 6. Set a timetable for agreed changes.

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9/2/2015Yrd. Doç. Dr.İbrahim İnan1 Human Resources Management