Managing Human Resources

Managing Human

Resources

Chapter 7

Learning OutcomesAfter studying this chapter, you will be able to: After studying this chapter, you will be able to:

Describe Describe the key components of the human the key components of the human resource management processresource management process

DiscussDiscuss the tasks associated with identifying and the tasks associated with identifying and selecting competent employees.selecting competent employees.

Explain Explain how employees are provided with needed how employees are provided with needed skills and knowledge.skills and knowledge.

Describe Describe strategies for retaining competent, high-strategies for retaining competent, high-performing employees.performing employees.

“All corporate strengths are dependent on

people”

-Adi Godrej-

Human Resource Management (HRM)is the management function concerned with getting, training, motivating, and keeping competent employees.

HRM Process

Identification and selection of a competent Identification and selection of a competent employees: employees:

1.1. employment planning employment planning

2.2. recruitment and downsizing recruitment and downsizing

3.3. Selection Selection

HRM Process (cont.)

Adapted and competent employees with up-to-Adapted and competent employees with up-to-date knowledge and ability date knowledge and ability

4. orientation 4. orientation

5. training. 5. training.

HRM Process (cont.)

Competent and high performance employees Competent and high performance employees who are capable of sustaining high who are capable of sustaining high performance over the long term performance over the long term

6. performance appraisal, 6. performance appraisal,

7. compensation and benefits 7. compensation and benefits

8. safety and health 8. safety and health

Identifying and Selecting Employees

(1) Employment (1) Employment planning planning

(2) Recruitment (2) Recruitment and downsizingand downsizing

(3) Candidate (3) Candidate selectionselection

o (1) Employment planning :

is the process by which managers ensure that they have the right number and kinds of people in the right places at the right times,

oThis process (Employment planning) translates the organization’s mission and goals into an HR plan that allows the organization to achieve those goals by:

o Assessing current and future human resource needs, ando Developing a plan to meet those needs.

Conducting Employee Assessments

Assessing current and Assessing current and future human resource future human resource needs, andneeds, and

Developing a plan to Developing a plan to meet those needsmeet those needs

Assessing current and future

human resource needs by..human resource inventory:human resource inventory:

which generally lists the name, education, training, prior which generally lists the name, education, training, prior employment, languages spoken, capabilities, and employment, languages spoken, capabilities, and specialized skills of each employee in the organization.specialized skills of each employee in the organization.

job analysis: job analysis:

a process in which workflows are analyzed and the a process in which workflows are analyzed and the skills and behaviors necessary to perform jobs are skills and behaviors necessary to perform jobs are identified. identified.

The job analysis helps determine the kinds of skills, The job analysis helps determine the kinds of skills, knowledge, and attitudes needed to successfully knowledge, and attitudes needed to successfully perform each job. perform each job.

Assessing current and future

human resource needs by..A A job descriptionjob description

is a written statement that describes what a job holder is a written statement that describes what a job holder does, how it’s done, and why it’s done. It typically does, how it’s done, and why it’s done. It typically includes job content, job environment, and conditions of includes job content, job environment, and conditions of employment.employment.

Job specificationJob specification

states the minimum qualifications that a person must states the minimum qualifications that a person must possess to perform a given job successfully. It identifies possess to perform a given job successfully. It identifies the knowledge, skills, and attitudes needed to do the the knowledge, skills, and attitudes needed to do the job effectively.job effectively.

o (2) Recruitment and downsizing

o Recruitment is: The process of identifying and hiring the best-qualified candidate (from within or outside of an organization) for a job vacancy, in a most timely and cost effective manner.

oDownsizing: occurs when a company permanently reduces its workforce, poor economic conditions or the company’s need to cut jobs in order to lower costs or maintain profitability

Recruiting Applicants

There are multiple sources of applicants,

The source used should reflect the local labor market, the type or level of position, and the size of the organization.

Source Advantage Disadvantage

Internal search Low cost, build employee moral, candidates are familiar with organization

Limited supply , generate many unqualified candidates , may not increase the diversity and mix employees

Advertisements Wide distribution can be targeted to specific group

generate many unqualified candidates.

Employee referrals Generate strong candidates because a good referral reflects on recommender ,

May not increase the diversity and mix employees

Public employment agencies (Hafiz) etc.

Free or nominal cost Candidates tend to be lower skilled, though some skilled employees available

Privet employment Wide contacts, carful screening ,short-term guarantees often given

High cost

School placement Large, centralized body of candidates

Limited to entry level positions

Handling Layoffs or Downsizingmost global organizations, and some small businesses have been forced to shrink the size of their workforce or restructure their skill composition during the last several years.

Downsizing has become a relevant strategy for meeting the demands of a dynamic environment.

o(3) Candidate selection

o seeks to predict which applicants will be “successful” if hired, who will perform well on the criteria the organization uses to evaluate it’s employees

o Screening job applicants to ensure that the most appropriate candidates are hired.

Selecting Job Applicants

The major intent of any selection activity is to reduce the probability of making reject errors and accept errors while increasing the probability of making correct decisions.

We do this by using reliable and valid selection procedures

Reliability and Validity

Reliability

The degree to which The degree to which selection device measures selection device measures the same thing the same thing consistentlyconsistently

Validity

The proven relationship The proven relationship between a selection device between a selection device and some relevant and some relevant measure.measure.

application forms, tests, interviews, or application forms, tests, interviews, or physical examinations all must possess physical examinations all must possess an acceptable level of consistencyan acceptable level of consistency

Selection Devices: Tests and Interviews

o Written testso Performance-simulation testso Interviews.

Are The best-known Selection Devices Managers use.

Effective Interviewing Techniques

potential biases can creep into interviews if they’re not potential biases can creep into interviews if they’re not well structured and standardized.well structured and standardized.

The following are highlights from The following are highlights from potential biases potential biases

• The interviewer tends to hold a stereotype of what The interviewer tends to hold a stereotype of what represents a good applicant.represents a good applicant.

• The interviewer tends to favor applicants who share The interviewer tends to favor applicants who share his or her own attitudes.his or her own attitudes.

• The order in which applicants are interviewed will The order in which applicants are interviewed will influence evaluations.influence evaluations.

“Closing the Deal” Realistic job preview Realistic job preview

(RJP):(RJP):

which includes both which includes both positive and negative positive and negative information about the job information about the job and the companyand the company

To increase job satisfaction To increase job satisfaction among employees and among employees and reduce turnoverreduce turnover

“Closing the Deal”

Remember: Remember:

It’s just as important to It’s just as important to retain good people as it retain good people as it is to hire them in the first is to hire them in the first place. place.

Providing Skills and Knowledge

Successful job performance requires more Successful job performance requires more than having certain skills. New hires must be than having certain skills. New hires must be acclimated to the organization’s culture, acclimated to the organization’s culture, trained, and given the knowledge to do the job trained, and given the knowledge to do the job in line with the organization’s goals. in line with the organization’s goals.

To achieve this, HRM uses To achieve this, HRM uses orientationorientation and and trainingtraining..

Orientation process

introduces new hires to the introduces new hires to the organization. The major organization. The major goals are to:goals are to:

Reduce the initial anxiety Reduce the initial anxiety all new employees feel all new employees feel as they begin a new jobas they begin a new job

Familiarize new Familiarize new employees with the job, employees with the job, the work unit, and the the work unit, and the organization as a whole, organization as a whole, and and

Employee training

is a learning experience that is a learning experience that seeks a relatively seeks a relatively permanent change in permanent change in employees by improving employees by improving their ability to perform on their ability to perform on the job. the job.

Training may involve what Training may involve what employees know, how they employees know, how they work, or their attitudes work, or their attitudes toward their jobs, toward their jobs, coworkers, managers, and coworkers, managers, and the organization.the organization.

Retaining Competent EmployeesRetaining employees, especially competent, high-performing employees, is essential.

2 HRM activities that play a role in this are:

1-Managing employee performance

2-Developing an appropriate compensation and benefits program.

Retaining Competent Employees

critical incidents critical incidents

focuses on critical or key behaviors. focuses on critical or key behaviors.

adjective rating scales.adjective rating scales.

lists a set of performance factors such as lists a set of performance factors such as quantity and quality of work, job knowledge, quantity and quality of work, job knowledge, loyalty, attendance, etc.and rates each factor loyalty, attendance, etc.and rates each factor on an incremental scale. on an incremental scale.

behaviorally anchored rating scales (BARS)behaviorally anchored rating scales (BARS). .

combine major elements from the critical incident combine major elements from the critical incident and adjective rating scale approaches and adjective rating scale approaches

360-degree appraisal 360-degree appraisal

seeks performance feedback from multiple sources, seeks performance feedback from multiple sources, such as the person being rated, bosses, peers, such as the person being rated, bosses, peers, team members, customers, and suppliers team members, customers, and suppliers

Management by objectives (MBO)Management by objectives (MBO)

Employees are evaluated by how well they Employees are evaluated by how well they accomplish a specific set of objectives that is accomplish a specific set of objectives that is critical to the successful completion of their critical to the successful completion of their jobs objectives that are tangible, verifiable, jobs objectives that are tangible, verifiable, and measurable. and measurable.

appraisalappraisal methodsmethods

They require us to evaluate employees on the They require us to evaluate employees on the basis of how well their performance matches basis of how well their performance matches established or absolute criteria established or absolute criteria

compare one person’s performance with that of compare one person’s performance with that of one or more other individuals one or more other individuals

Addressing Poor Performance

What if employee isn’t meeting

his performance goals Manager needs to find Manager needs to find out WHY ?out WHY ?

So what is HRM in brief ?

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Enjoy watching this 2 min video Enjoy watching this 2 min video

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