1 Organizational Behavior Robbins & Judge Chapter 18: Human Resource Policy and Practices.
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Transcript of 1 Organizational Behavior Robbins & Judge Chapter 18: Human Resource Policy and Practices.
1
Organizational BehaviorRobbins & Judge
Chapter 18: Human Resource Policy and
Practices
2
Summary of Lecture 30
- Organizational Structure
- Characteristics of Bureaucracy
- Describe Matrix Organization
- Why managers want to create boundary-less organizations
- List the factors that favor different organizational structure
- Explain behavioral implications of different organizational structures
3
Learning Objectives
- What is HRM
- Define HRM policy
- Recruitment and Selection
- Training and Development
- Performance Appraisal
_ International HRM
2-4
HUMAN RESOURCE MANAGEMENT (HRM)
HRM defined as
“HRM is management function concerned with hiring , motivating and
maintaining people in an organization. It focuses on people in
organization”
(Aswathappa, 2008, p.5)
2-5
HRM: Peoples Dimensions In Organizations
• HRM: the application of management functions and principles related to employees
• HRM functions applicable every where (not for profit and profit driven organizations)
• Employees decisions are integrated
• Employee decision brings effectiveness/efficiency in organization
• HRM includes all major activities in professional life of a worker
• All activities from employee entry to managing performance and training until he or she leaves
2-6
THE EVOLVING STRATAGICROLE OF HUMAN RESOURCE MANAGEMENT
Strategic Human Resource Management
• “Involves development of consistent, aligned collection of practices, programs, & policies to facilitate achievement of strategic objectives” (Mello, 2011, p. 156)
• Mindset & practices away from “personnel management” & focusing on strategic issues instead of operational issues
• HR programs and policies are made and integrated in perspective of mission, objectives, and strategy
• Writing down HR strategy facilitates involvement & convincing senior executives & other employees
2-7
HRM Activities
• HR Planning
• Job Analysis and Design
• Recruitment and Selection
• Training and Development
• Remuneration
• Welfare
• Safe and Healthy Work Environment
• Industrial relations
2-8
SECRETES OF BEST EMPLOYERS
• Effected and committed leadership
• Management of talent
• Spotting and attracting talent
• Setting high goals
• Coaching and training
• Effective appraisal and reward system
• Building skills for future
• Building growth into every job
2-9
HR POLICIES AND PRACTICES
• A policy is plan of action
• HR policies need to ensure consistency and uniformity in
treating people (guideline to course of action)
• It motivates employees and build loyalty
• Benchmark to evaluate performance
2-10
1 HR Philosophy How management/organization views human resource and what value it associates to the employee development.
2 Employment Policy
Manpower planning, recruitment, probation, promotion, transfer, termination, retirement policy etc. Work scheduling, overtime, duty hours, holidays.
3 Compensation Pay, benefits, leaves, contributory provident fund, gratuity, GP fund, retirement plans, medical facility, social security, house rent/hiring facility etc.
4 Performance evaluation & Employee training
Performance appraisal procedure, methods, and guidelines for training and development of employees.
HR POLICY DOCUMENT
2-11
5 Community Relationships
Social /Community activities, Corporate Social Responsibility, Relationship with project stakeholders.
6 Legal and Ethical Issues
Code of conduct, work ethics, norms, values, information disclosure policy, privacy of personal record and official communications, equal employment opportunity policy, outside work policy etc.
7 Occupational Health and Safety
Smoke free work place, workplace facilities (ergonomics), Health and safety policy and guidelines
8 Disciplinary Actions
Procedure for initiating disciplinary proceedings, opportunity of fair trail and hearing, right of appeal, grievance handling procedure, code of conduct.
HR POLICY DOCUMENT
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Nature of Job Analysis
- Job: Job is bundle of related tasks
- Work: Synonymous of job and defined as “physical and mental activity that is carried out at a particular place and time, according to the instructions, in return for money”
- Monetary reward is mandatory for performing of task to be said work in business organization context
- Psychological perspective is concerned with employee behavior
- Sociological perspective is concerned with structural and contextual factors affecting individual's experience at work (such as leadership, communication system, power and politics, group dynamics etc)
- The nature of work and how job is organized affect other human resource functions/activities
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Job Analysis
- Job Analysis is the process of collecting data and information about a job and result of job analysis is job description and job specification
Job AnalysisJob Analysis
Job DescriptionJob titleLocation
Job SummaryDuties
ReportingAuthority
Machines and toolsMaterials used
Supervision/SubordinateWorking conditions
Hazards
Job DescriptionJob titleLocation
Job SummaryDuties
ReportingAuthority
Machines and toolsMaterials used
Supervision/SubordinateWorking conditions
Hazards
Job SpecificationStatement of individual
Qualification necessary todo job
EducationExperience
TrainingInitiative
Physical abilitiesPsychological abilitiesCommunication skills
ResponsibilitiesSensory demands
Job SpecificationStatement of individual
Qualification necessary todo job
EducationExperience
TrainingInitiative
Physical abilitiesPsychological abilitiesCommunication skills
ResponsibilitiesSensory demands
Adopted from : Aswathappa, 2008, p. 106
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Recruitment
- Recruitment is defined as “the process of searching for and obtaining applicant for jobs, from among whom the right people can be selected” (p. 144)
- Theoretically recruitment process ends when job applications have been received
- In practice it goes further to screening applications to filter those applicants who are not eligible for or suitable for job
- The term recruitment is often described or understood as complete process of employee hiring
- Recruitment and selection are two different processes
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Purpose of Recruitment
- Increase pool of potential job candidates
- Increase success rate of the selection process
- Make ensure the right people is selected against vacant position (minimizing probability of leaving organization in case of selection of wrong or misfit candidate)
- Meeting legal and social obligation of workforce composition
- Identify and encouraging potential candidates/job applicants
- Evaluating the effectiveness of available sources and techniques of recruitment
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Source of Recruitment
1 Internal Recruitment
- Present Employees (Promotion and transfer)Advantages- Builds morale- Encourages competent employees- Good selection- Cheaper way- Familiar with organization
Disadvantages- Outside competent candidates- Inbreeding
17
Source of Recruitment
1 Internal Recruitment
- Former Employees (Performance is known, aware with organizational culture)
- Previous Applicants (best when to fill in job quickly, cost effective)
2 External Recruitment
- Advertisement: The most popular method
- Blind ad (no identification of company)
- AIDA (attention, interest, desire, action)
Content of Job AdvertisementI) job content ii) working conditionsiii) location of job iv) compensationv) job specification vi) to whom apply
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Source of Recruitment
Internal Sources
Advantages Disadvantages
Less costly Candidates current work may be affected
Better knowledge of skills and performance
Old concept of doing
Morale and Commitment Organizational politics
Awareness of culture Morale problem for employee not promoted
Sou
rce:
Asw
atha
ppa,
200
8, p
. 15
9
External Sources
New skills and new experience Costly and time consuming
Compliance with laws Right candidate rejected (false positive error) wrong candidate selected (false negative error)
Scope for resentment and jealousy reduced
Person and organization misfit
Sou
rce:
Asw
atha
ppa,
200
8, p
. 15
9
20
Selection
- Selection is defined as “the process of differentiating between applicants in order to identify and hire those with a greater
likelihood of success in a job” (p. 170)
Or
- “Selection is the process of picking individuals (out of the pool of job applicants) with requisite qualification and
competence to fill jobs in the organization.”
Difference between recruitment & selection
- In recruitment potential job applicants are attracted and encouraged to apply for vacant position whereas selection
focuses on identifying the candidate suitable for the job from pool of job applicants and hire to fill in vacant position - Recruitment and selection are two different processes but
often inviting job applications and selecting candidate is called hiring or recruitment process.
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Employment Test
S.No. Employment Test Example
1 General Knowledge To judge general knowledge regarding geography, politics, religion etc.
2 IQ Test Intelligent quotient test to estimate how quickly candidate processes complex problems
3 Personality Test To judge type of personality like extrovert, introvert, innovative etc. MBTI is most common and acceptable personality test that uses 8 personality dimensions to elicit 16 personality types
4 English Proficiency Test To judge English proficiency level For example: What is the meaning of the word exultantly?
5 Technical/Mechanical Proficiency Test
Asking questions regarding mechanical and technical aspect of job to judge expertise in handling tools, machines, and equipments
6 Cognitive Ability Test To judge intellectual and mental capabilities of candidates
7 Reasoning Test To judge reasoning capabilities of candidates. Situation is given with certain preconditions to find right answer
8 Quantitative Ability To judge quantitative skills like processing of numbersFor example: Divide 8 by 0.5 then multiple by 0.3
9 Physical Ability Test Physical ability of candidates is judged by giving candidates physical tasks to complete in given time frame. Example: Rope climbing, obstacles.
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Guidelines to Interviewers
Do's Dont's
Plan the interview Start the interview without preparation
Build informal relationship Directly start asking difficult questions
Encourage candidate to talk as much
Jump to conclusion very early
Probe where necessary Allow the candidate to take over session
Find out interest and preferences of candidate and their strength and weaknesses and behaviors
Talking too much
Take control and direct the interview session
Start interview with prior perception
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Nature of Training and Development
- In general “training and development refers to the imparting of specific skills, abilities, and knowledge to employee”
(p. 206)
- In more detail “ training and development is any attempt to improve current or future employee performance by increasing an employee's ability to perform through learning usually by changing the employee's attitude or increasing his or her skills and knowledge. The need fro training and development is determined by the employee's performance deficiency”
Training and development need = standard performance -Actual performance
- Training is process of imparting skills and knowledge
- Education is theoretical learning given in classroom
- Development activity aims to give learning opportunities that result in growth of employees
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Inputs in Training- Skills: Worker should have Skills to operate machinery and other tools.
Managers should have interpersonal skills
- Education: Teach theoretical knowledge, concepts to develop a sense of judgment and reasoningEducation is important for top executives and managers
Development: More focus on knowledge. For example knowledge about management principles, business environment, and techniques Any training and development program must have following components - How to create sense of commitment and motivation- How to make them result oriented- How to make themselves aware of needs of others and themselves- How to create sense of leadership and power to influence and lead others -
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Training Process
Need Assessment- Diagnosis current problems and future needs
- Individual (performance gap, change in technology, transfer, and Group Level (change in organizations' strategy, new product line, new technology, low moral and motivation)Training need identify the training objectives to be achieved at the end of training program
- Need Assessment Methods
Group or Organizational Analysis Individual Analysis
Organizational goals and objectives Performance Appraisal
Efficiency indices Interview
Exit Interviews Questionnaire
Quality Circles Attitude Survey
Customer Survey Training Progress
Source: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 218
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Training Process
Phase 1Training Need
Phase 2Training Design
Phase 3Training Implementation
Phase 4Training Evaluation
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Steps in Training Program
Source: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 220
Who are the trainees? Who are the trainers? What methods andtechniques?
Where to conduct the program?
What principles of learning?
What should be the Level of training?
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Training Process
Is the organization is better because of training?
Are trainees behaving differently in the job after training? Are they using knowledge and skills learned in the training?
To what extent the trainees have greater knowledge of skills after the training program?
Did the trainees like the program, trainer, facilities, timing? Did they think that training was useful? What improvement they suggest?
Result
Behavior
Learning
Reaction
Accidents QualityProductivityCostMoraleProfitsTurnover
Performance, appraisal by supervisor, peer, subordinate, customers
Written Tests, Performance tests
Questionnaires
MeasuresLevel Four Levels of Training Evaluation
Source: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 230
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Performance Appraisal
• Performance appraisal is to evaluate the performance of an employee to determine whether he is performing his given task and duties well or to monitor whether he has given his best effort and performance on given job
• Performance appraisal is an assessment of individual performance, the performance is measured against such factors as job knowledge, quality, quantity of output, initiative, leadership, abilities, supervision, cooperation, judgment, analytical skills, problem solving skills, etc.
(P. 239)• The other similar terms often used for performance appraisal
are performance rating, employee performance review, employee assessment, personal appraisal, employee evaluation, or performance evaluation
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Performance Appraisal
Job Analysis PerformanceAppraisal
Performance Standards
Describe work and professional requirementof a job
Describe the job relevant strengths and weaknesses of each individual
Translate job requirementsinto levels of acceptableor unacceptable performance
Relationship of Performance Appraisal and Job Analysis
Source: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 240
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Multi Purposes of Performance Appraisal
Administrative Developmental
Set selection criteria Identification of individual training needs
Promotion Performance feedback
Retention or termination Determining job assignment and transfer
Identification of poor performers Identification of strengths and weaknesses of employee
Compensation Recognize and appreciate individual performance
Evaluate training effectiveness Goal setting and evaluation
Adopted from: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 240
32
Performance Appraisal Process
1 Designing Appraisal Program
Appraisal Design
What methods?
Who are the raters?
Whom to evaluate?
What to evaluate?
Formal vs informal
What problems/errors?
How to solve?
When to evaluate?
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360 Degree Performance Appraisal Advantages Disadvantages
1 More comprehensive 2 Quality of information is better 3 Compliments TQM perspective by soliciting external and internal customers 4 Less bias/prejudice 5 increase employee self development
1 More Complex 2 Conflicting opinion 3 Requires extensive training to implement 4 Grouping may make it ineffective
Source: Snell, Bohlander & Vohra: Human Resource Management. A South Asian Perspective, (2010, p. 324)
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Benefits of Proper Compensation Administration
1 2 3 4 5
Attracts talent Motivates Employees
Rewards Performance
Reduces Turnover
Manages Compensation Budget
Compensation policy aims to attract talented employees and motivate them to put their efforts and commitment to work that increase job satisfaction work performance
Benefits of Proper Compensation
35
Employee Benefits
TreatsFree lunchesCoffee breaksPicnicsDinnersBirthday treats
Knick KnacksDesk accessoriesCompany watchesDiaries/PlannersWalletsT-shirts/Ties
AwardsTrophiesCertificatesLetter of appreciation
Office EnvironmentRedecorationFlexible hoursFurnitureAssistant
Social AcknowledgementInformal recognitionRecognition at official partyMembership of clubsUse of company facilities for personal events
TokensMovie ticketsVacation tripsCoupon redeemable at storesEarly time offsAnniversary or birthday presents
On the jobMore responsibilitySpecial assignmentsTraining
Source: Aswathappa. Human Resource Management, Text and Cases, 2008, p. 333
36
International Human Resource Management
• Globalization has significantly influence HRM practices and policies
• All HRM functions need international orientation
• MNC operating internationally need to be more focused to attract, motivate and transfer workforce globally
• The process of procuring, allocating, motivating, training & development, and compensating and utilizing human resources in international business is called international human resource management
• IHRM covers six main functions of domestic HRM such as HR planning, recruiting, training and development, performance management, compensation and labour relations
• The three countries categories of IHRM are country where headquarter is based, country where subsidiary is located, and country from where workforce and finances come
37
Managing International HR Activities
1) Cross Cultural Training:
• Expatriate receives pre-departure training on host country culture to make it easy for him/her to adjust to new culture
• Expatriate often receives training on repatriation to avoid cross cultural shock
Merits Demerits
More chances of success in foreign assignment
May not remove cultural biases
Provides comprehensive global perspective
Recipient may not take it serious
Sense of confidence May not make real difference in business
Reduces cultural shock Can not prepare manager to face all real life problem
Source: Aswathappa. Human Resource Management, Text and Cases, 2008, p. 672 333
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Managerial Implications
HR policies and practices are main force in shaping employee behavior and attitude
Recruitment and selection process determined who is hired and what is person-job level?
If there is flaw in selection process then more chances of job satisfaction, absenteeism, lower productivity, low OCB and increase turn over
Training improves skills and increase potential to perform at higher level
Performance appraisal significance influence individual behavior
Performance and satisfaction increase when performance appraisal is fair more focus on behaviors and result oriented criteria
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Discussion Question 1: How recruitment and selection process affect satisfaction and work performance?
Discussion Question 2: What is role of training and development in shaping work behaviors and performance?
Discussion Question 3: What is importance of performance appraisal system?
Discussion Question 4: How HR policies and practices affect individual behavior?
Discussion Questions
40
Summary
- What is HRM
- Define HRM policy
- Recruitment and Selection
- Training and Development
- Performance Appraisal
_ International HRM