Assignment 1st_527_Human Resource Management

7/30/2019 Assignment 1st_527_Human Resource Management

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Department of Business AdministrationBlock No. 13, Sector H-8,Allama Iqbal Open University, Islamabad.

Human Resource Management (527) Assignment No. 01

Submitted to:Mr. Sajid Saeed House No. 549/1, Street No. 06, Sector No. I, Airport Housing Society,Chakala , RAWALPINDI(0300-550 O899)

Submitted by:Muhammad Hammad ManzoorMBA (HRM) 2 nd Semester

Roll No. 508195394508, 5 th Floor, Continental Trade Centre (CTC)

Block 08, Clifton, KARACHI(0321-584 2326, 0322-555 5901)


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Human Resource Managment (527)

Q. No. 01(a) How can we communicate a picture as realisticas possible of a job and of the organization to prospectiveemployees? What kinds of issues are most crucial to them?

Answer:

DEFINE JOB REQUIREMENTS:Before filling a job, it is wise to analyze the job to determine what's required for optimal performance. Different factors should be analyzed, such as:

job performance (key result areas) specific job requirements (education, experience, skills) company requirements (cultural fit, values) co-workers (manager, peers) behaviors

J o b a n a l y s i sYou need to define accurately and clearly the nature and purpose of the role and theskills and attributes needed to carry it out. Job analysis is the first stage in this

process. It involves asking questions and gathering information to identify the key elements of the job and the ideal characteristics of the post-holder. This analysis

forms the basis of the job description and the person specification.

J o b d e s c r i p t i o nThe job description outlines the role in terms of the day to day tasks and responsibilities and benefits which the post-holder is entitled to. The job descriptionhelps potential applicants to decide whether to apply for the job, and can be used todevise the advertisement and the employment contract.

C r e a t i n g a j o b d e s c r i p t i o n A job description is usually developed by conducting a job analysis, which includesexamining the tasks and sequences of tasks necessary to perform the job. Theanalysis considers the areas of knowledge and skills needed for the job. A job usually

includes several roles. The job description might be broadened to form a personspecification or may be known as Terms of Reference

Roles and responsibilities A job description may include relationships with other people in the organization:Supervisory level, managerial requirements, and relationships with other colleagues.

2By: M. Hammad Manzoor, MBA HRM-II, 508, 5 th Floor, Continental Trade Centre (CTC), Clifton 08,Karachi. (Roll No. 508195394)


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Goals A job description need not be limited to explaining the current situation, or workthat is currently expected; it may also set out goals for what might be achieved in

future.

L i m i t a t i o n sPrescriptive job descriptions may be seen as a hindrance in certain circumstances:Job descriptions may not be suitable for some senior managers as they should have

the freedom to take the initiative and find fruitful new directions; Job descriptions may be too inflexible in a rapidly-changing organization, for

instance in an area subject to rapid technological changeOther changes in job content may lead to the job description being out of dateThe process that an organization uses to create job descriptions may not be

optimal.

P e r s o n s p e c i f i c a t i o n A person specification is a profile of the ideal candidate for the job. It lists theessential and desirable criteria necessary to carry out the role.

Role of job description important A job description has four main uses: Organization - it defines where the job is positioned in the organization

structure. Who reports to who. Recruitment - it provides essential information to potential recruits (and the

recruiting team) so that they can determine the right kind of person to do the job (see person specification)

Legal - the job description forms an important part of the legally-bindingcontract of employment

Appraisal of performance - individual objectives can be set based on the jobdescription



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Question-1b) What screening and selection methods are available,and which ones are most accurate? Explain.

Answer .

Selection ProcessSelection is the process of choosing from a group of applicants those individuals bestsuited for a particular position. Most managers recognize that employee selection isone of their most difficult, and most important, business decisions. This processinvolves making a judgment -not about the applicant, but about the fit between theapplicant and the job by considering knowledge, skills and abilities and other characteristics required to perform the job Selection procedures are not carried outthrough standard pattern and steps in this. Process can vary from organization toorganization some steps performed and considered important by one organizationcan be skipped by other organization

Environmental Factors Affecting the Selection Process A permanent, standardized screening process could greatly simplify the selection process. However, development of such a process even if it were possible and desirable would not eliminate deviations to meet the unique needs of particular situation.

Legal ConsiderationsLegislation, executive orders, and court decisions have a major impact on humanresource management. It is important for hiring managers to see the relationshipbetween useful and legally defensible selection tools.

Speed of Decision MakingThe time available to make the selection decision can have a major effect on theselection process. Closely following selection policies and procedures can provide

greater protection against legal problems; however, there are times when the

pressure of business will dictate that exceptionable made.

Organizational Hierarchy Different approaches to selection are generally taken for filling positions atdifferent levels in the organization.



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1. Initial Screening2. Application Blank3. Pre-employment Testing General Intelligence Tests Aptitude Tests Personality and Interest Tests Achievement Tests Honesty Tests4. Interview Structured Interview Unstructured Interview Mixed Interview 5. Background Checks6. Conditional job offer

7. Medical Exam/Drug Tests8. Final Selection Decision



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Question. 2-a) As jobs become more team-oriented, assessmentcenters will be used more often for non-management jobs. Do youagree or disagree?

Answer.

Yes, of course. I am fully agreed with that. Assessment centre can frame the jobdescription, job specification of a particular position. So Assessment centers could

frame the specification of non-management job.

Assessment Center The assessment center method involves multiple evaluation techniques, includingvarious types of job-related simulations, and sometimes interviews and psychologicaltests. Common job simulations used in assessment centers are: In-basket exercises Group discussions Simulations of interviews with subordinates or clients Fact-finding exercises Analysis/decision-making problems Oral presentation exercises Written communication exercises

Simulations are designed to bring out behavior relevant to the most importantaspects of the position or level for which the assesses are being considered. Knownas dimensions (or competencies) these aspects of the job are identified prior tothe assessment center by analyzing the target position. A job analysis procedureIdentifies the behaviors, motivations, and types of knowledge that are critical for success in the target position. During assessment, the job simulations bring outassessees behavior or knowledge in the target dimensions.

Validity and Fairness

In addition to improved accuracy in diagnosis and selection, the organization thatoperates an assessment center enjoys a number of indirect benefits. Candidatesaccept the fairness and accuracy of promotion decisions more readily and have abetter understanding of job requirements. Training managers to be assessorsincreases their skills in many other managerial tasks, such as handling performanceappraisals and conducting coaching and feedback discussions.



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Selection and Placement of Empowered Personnel

The greatest growth of assessment centers since 1985 has been stimulated by organizations moving to an empowered workforce. These organizations are givingemployees: Responsibility for their designated areas or outputs. Control over resources, systems, methods, and equipment. Control over working conditions and schedules. Authority (within defined limits) to commit the organization. Evaluation by achievements.

Most also are organizing employees into self directed work teams. The teams aremade up of team members and a team leader (the team leader is a working, nonmanagement member of the team).

Teams take responsibility for: Improving quality and productivity; job rotation. Planning/Scheduling. Who works on what? Quality audit. Equipment adjustment, maintenance, and repair. Housekeeping, vacation planning, absenteeism, tardiness, and performance issues. Choosing the team leader. Many other areas.

The assessment center method is an excellent diagnostic tool because it separates anindividuals abilities into specific areas (dimensions) and then seeks specificexamples of good and poor behavior within each dimension. This helps the assesseeand his/her boss determine more precisely what training and developmentalactivities are required.



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Diagnosing Management Skills and Assumptions as Part of a Corporate CultureChange Strategy

Individual assessments in a plant or department can be combined to form an integral part of an organizations culture change strategy. After an organization has decided on the desired culture, the next logical step is to define the behaviors necessary toimplement that culture and evaluate incumbents skill levels in these behavioralareas. For example, an essential ingredient of a participative culture is the ability torun a meeting so all participants can speak their minds and have a sense of ownership in decision making.



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Question No. 2b) What are the key issues that should beaddressed in the design, conduct, and evaluation of training

programs?

A n s w e r :

T r a i n i n gTraining consists of planned programs designed to improve performance at theindividual, group, and or organizational level. Improve performance ultimately bring the measurable changes in the knowledge, skills, attitudes, and or socialbehavior.

S t r u c t u r a l I s s u e s i n t h e D e l i v e r y o f T r a i n i n g

Following are some key issues require to be addressed if we want to get any optimum results of any training system.

1. Corporate Commitment Is Lacking Uneven. Most of thecompanies in the past were not expanding much on the training but

fortunately the trend is being changed because of competition in themarket, introduction of latest technical equipment. The workers have tolearn three kinds of skills, which are as follow.- The ability to use the new technology - The ability to maintain it- The ability to diagnose system problems2. Aggregate expenditures by business on training are insufficient.It should be increases to 2%of their annual pay roll.3. Business Complains Against Education System. The businesscomplains that school award degrees, but the degrees are no guaranteethat graduates have mastered skills. 37% workforce are lacking basicskills, this was revealed by the executives in the recent survey, 15%

companies providing training in math and 10% providing aid in reading. InPakistan this figures can be much less as compare to USA.4. Poaching Trained Workers Is Major Problem And Provides AStrong Disincentive For Training. The knowledge is becoming a necessity of the employees as the days passing so more value should be given tothis vary aspect.



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5. Lack of Funding Resulting In Downsizing. The governments isnot providing enough funds for retaining to help workers displaced asresult of downsizing or of the defuse contraction. So workers mustbecomes technically sound to safe guard their future.6. Business Requires To Be Supported By TheGovernment. Educated person like graduates be incorporated in thebusiness, the government may extend its help in implementation of this

plan.7. Employees And School Must Develop Closer Ties. It can bringthe great change of the economy of any country if this factor started being implemented by these two pliers of a nation.8. Organized Labor Can Help . The unions and organizations jointly

prepare the training programs.

A s s e s s i n g T r a i n i n g N e e d sThere are three level of analysis for determining the needs that training can fulfill.

1. Organizational Analysis. it focuses on identifying where theorganization training is needed.2. Operational Analysis. It attempts to identify the content of training what an employee must do in order to perform competently.3. Individual Analysis. It determines how well each employee is

performing the tasks that make up his or her job.

D e s i g n i n g o f T r a i n i n g P r o g r a m

Following must be kept in view while designing any training program:Principles of Learning To promote efficient learning, long time retention,application of the skills and factual knowledge be incorporated in the training

program in the shape of drafting, or practical aspect of some particular nature of job like insurance etc.

Motivating the Trainee and Goal Setting The objective coupe with the goal settingis made absolutely clear to the trainee.

Behavior ModelingA model is someone who is seen as competent, powerful and

friendly and has status within organization. So the similar qualities are found in amodel before going to show to trainee.

Meaningfulness of Material It is easier to learn and remember factual materialwhen it is simple and meaning full so one should prepare simple and material to thetrainee, and should not be made complicated programs.



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One-way to keep in mind the phases of training are to portray them graphically inthe form of a model that illustrates the interaction among the phases.

Practice Anybody learning new things must be given practice because practice takesthe individual toward perfection. Practice ha three aspects, which are as under

Active Practice During the early stages instructor must look after the trainingdirectly.

Over learning The trainee should be given that much practices that it should become the second nature of the trainee.

Length of the P practice session The length of the training should be suchthat trainee should not be started feeling boredness.

Feedback Its the main feature of ay training program, the feedback of thetrainee be obtained during, after and join the designated job. Simply it meansthe evaluation during and after the training. Evaluation must provide a

continuous stream of feedback that can be used to reassess training needsthereby creating input for the next stage of employee development

E v a l u a t i n g T r a i n i n g P r o g r a mThe assessment phase serves as foundation for the entire training effort. Both thetraining and development phase and the evaluations phase depend on inputs fromassessment. The purpose of the assessment phase is o define what it is the employeeshould learn in relation to desired job behavior. If this phase is not carefully donethe training program, as a whole will have little chance of achieving what isintended to do.

Assuming that managers specify the objectives of the training program carefully thenext task is to design the environment in which to achieve those objectives. This isthe purpose of the training phase. Choose methods and techniques carefully and deliver them systematically in a supportive, encouraging environment based onsound principles of learning.

Finally, if both the assessment phase and the training and development phase havebeen done competently evaluation should present few problems. Evaluation is

twofold process that involves Establishing indicators of success in training as well as on the job. Determining exactly what job related changes have occurred as a result of the

training, Have trainees achieved a specific level of skill, knowledge, or

performance? Did change occur?



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Question. 3a) Should managers and non-managers be appraised frommultiple perspectives for example, by those above, by those below, by coequals, and by customers?

Answer.

Performance ManagementPerformance management (PM) includes activities that ensure that goals areconsistently being met in an effective and efficient manner. Performancemanagement can focus on the performance of an organization, a department,employee, or even the processes to build a product or service, as well as many other areas.

The Process of Performance Management1. Define performance2. Facilitate performance3. Encourage performance



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Encouraging Performance1. Provide a sufficient amount of rewards that employees really value2. In a timely 3. Fair manner

Purposes of Performance Appraisal Systems

Requirements of Effective Appraisal Systems Legally and scientifically, the key requirements of any appraisal system are

Relevance Sensitivity Reliability

In the context of ongoing operations, the key requirements are Acceptability Practicality

Relevance Implies that there are1. Clear links between the performance standards for a particular job and

organizational objectives, and 2. Clear links between the critical job elements identified through a job analysisand the dimensions to be rated on an appraisal form



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Performance Standards translate job requirements into levels of acceptable or unacceptable employee behavior. They play a critical role in the job analysis-

performance appraisal linkage.

Relationship of Performance Standards to Job Analysis and Performance Appraisal

Rating Methods or Formats

Relative Rating Systems Comparing the performance of employees to that of other employees

Absolute Rating Systems Evaluating each employee in terms of performance standards without

reference to othersResults-Oriented Systems

Emphasis is on what employee producesWho Should Evaluate Performance?

Possible Raters The immediate supervisor Peers Subordinates Self-appraisal Customers served Computers



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Multi-Rater or 360-Degree FeedbackIn Human Resource Management, 360-degree feedback , also known as "multi-rater

feedback," "multisource feedback," or "multisource assessment," is feedback thatcomes from all around an employee that is the feedback is received by those above(Supervisors), by those below (Subordinates), by coequals (peers) and by customers(internal/external customers or suppliers).

It also includes a self-assessment in some cases. It may be contrasted with a"traditional performance appraisal," where the employees are most often reviewed only by their managers or supervisors.

It has been suggested that multi-rater assessments often generate conflictingopinions, and that there may be no way to determine whose feedback is accurate(Vinson, 1996). Studies have also indicated that self-ratings are generally

significantly higher than the ratings of others (Lublin, 1994; Yammarino & Atwater,1993; Nowack, 1992).



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Question No. 3b) What is the best way to develop pay systemsthat are understandable, workable, and acceptable to employees atall levels?

Answer.

IntroductionPay is a key factor affecting relationships at work. The level and distribution of pay and benefits can have a considerable effect on the efficiency of any organization,and on the morale and productivity of the workforce. It is therefore vital thatorganizations develop pay systems that are appropriate for them, that provide value

for money, and that reward workers fairly for the work they perform.

Pay systems are methods of rewarding people for their contribution to theorganization. Ideally, systems should be clear and simple to follow so that workerscan easily know how they are affected. In considering rewards it should be borne inmind that pay and financial benefits are not the only motivator for worker

performance. Other important motivators for individuals may include job security,the intrinsic satisfaction in the job itself, recognition that they are doing their jobwell, and suitable training to enable them to develop potential.

What are pay systems?

Key Points: Pay systems provide the foundation for financial reward systems There are basic rate systems, where the worker receives a fixed rate per

hour/week/month with no additional payment There are systems related in whole or part to individual or group performance

or profit There are systems based in part on the worker gaining and using additional

skills or competencies Pay systems provide the bases on which an organizationrewards workers for their individual contribution, skill and performance.

Pay structuresPay structures are different - they are used to determine specific pay rates for

particular jobs, usually based on the nature of the job, its content and requirements. A pay structure provides the framework within which the organization

places the pay rates for its various jobs or groups of jobs.



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Pay systems fall into two main categories:Those where pay does not vary in relation to achievements or performance, (basicrate systems), and those where pay, or part pay, does vary in relation toresults/profits/performance (including the acquisition of skills).

There are also systems where pay, and any enhancement, is related to the gaining of extra skills or competencies that can allow a worker to carry out a wider range of work, or work at a higher level, and provide opportunities for greater jobsatisfaction.

The selection of an organizations pay system is often determined by negotiationsbetween management and worker representatives. In theory these negotiations canbe kept quite separate from negotiations over payment structures and levels or amounts of pay; but in practice negotiations often embrace all pay-related issues.

Selecting and installing a pay systemKey Points:

Accept that there will inevitably be a cost involved. Avoid most potential problemswith a systematic, well-timed and carefully planned approach. Involve theworkforce, or its representatives, as much as possible, perhaps through a jointworking party.

Re-examine the reasons for change and take advice both inside and outside theorganization. Obtain expert help if needed.

Don't just discard the existing system - take stock through discussions to enable theorganization to keep the good and change the less good.

Identify what the new system is required to do - how does it relate to theorganizations overall objectives?

Look at the possible new systems and consider which might best suit the particular organization, with or without alteration.

Changes to pay make people anxious, and so the new system should be kept simpleand agreed with the workforce and their representatives.

Prepare the way carefully with briefings to the workforce and management. Look out for any changes to differentials and relativities. Document the system and if possiblerun it for a trial period.



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Build in as much time as possible for proper discussion and consultation. Makearrangements for maintenance, monitoring and evaluation. Review the systemregularly to ensure it is performing as required.Be careful the system does not directly or indirectly discriminate between men and women.

Performance-related pay Performance pay schemes cover the various methods of linking pay to a measure of individual, group or organizational performance. They all share the idea that wherea worker can vary output according to effort the prospect of increased pay will lead to greater performance.

What are the most common types of performance pay?It is difficult to clearly distinguish one type of performance related pay. They can be

defined as:

Piecework: A price is paid for each unit of output. This is the oldest form of performance pay and is still used in some local government direct service organizations (DSOs)

Payment by results:Bonus earnings depend on measured qualities or values of output for individuals or

groups, usually based on work studied time units; this covers a range of bonusschemes and still forms the main method of performance pay for manual workers

Organization-wide incentives:Bonus earnings or pay levels based on measured quantities or values for the wholeestablishment; this is frequently the basis of contract price or tender-led schemes inlocal government DSOs

Merit pay:Bonus earnings or pay levels usually based on general assessment of an employee'scontributions to performance; this is an earlier, less structured form of IPRP:

Individual performance related pay (IPRP):Bonus earnings or pay levels based on the assessment or appraisal of an employee's(or team's) performance against previously set objectives, usually part of a

performance management system. This is a fairly recent development, particularly in the public sector and has grown sharply in use since the 1980s



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What are the main steps in creating performance related pay systems? Setting objectives. Appraising results. Linking achievements to pay.

Where output cannot be measured, the sensible solution seems not to pay any bonus;however just because some jobs are difficult to measure, doesn't mean that good

performance shouldn't be rewarded. This problem has generally been tackled by providing a lieu bonus based on average bonus earnings to those employees - very often skilled maintenance staff and supervisors - whose work is difficult to measure.

In most systems for manual workers the pay packet is in fact made up of a number of components, usually including a fixed basic payment, a variable bonus paid onoutput of acceptable quality and a fall back provision. Bonus payments are usually

paid weekly or monthly.

In IPRP systems for white-collar workers the pay packet includes a fixed salary element, where progress through a range may be according to performance, and/or avariable bonus paid out for achieving set objectives. Variable bonus payments areusually unconsolidated and may be paid monthly, half yearly or yearly.

Competency-based pay:Competencies are the knowledge-skills and the attitude needed by any individual

employee to carry out their job effectively. These can be incorporated into a pay system to reward individuals who positively contribute to the overall values and objectives of an organization. This is competency based pay: rewarding the way

people work, not just recognizing what they can deliver.

How can the right competencies be defined?Most competency based pay systems are determined by performance indicators.Typically, the competencies needed to drive progression are quantified by senior managers through employee interviews, surveys and job analysis. The followingcompetencies are relevant here:

Core competencies that apply to any job within the organization and reflect theorganizations core values the technical skills and expertise that are necessary tocarry out the job competencies relating to a specific job category e.g. leadership'

for senior managers competencies that define the contribution an employee makesto their role including:

communication



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teamwork and motivation coaching knowledge and experience service delivery liaison and networking investigation analysis initiative and problem solving planning and organizing resources decision making process and outcomes teamwork and motivation knowledge and experience liaison and networking initiative and problem solving decision making process and outcomes

Contribution pay:Contribution pay is a relatively new concept. It combines elements of both

performance and competency based pay schemes by recognizing employeeachievements and competencies.

How does it differ from performance pay?Contribution pay is not a direct incentive for achieving a defined set of targets.Instead it is similar to a competence based pay reward system, emphasizing whattype of development is needed by employees to enhance corporate success.

Market-based pay:Market-based pay links salary levels, and progressionthrough the scales, to those available in the market. It is often used in conjunctionwith a performance pay matrix, which allows faster progression from the bottom of the scale to the market rate, which will be the mid-point. Progression then slows,regardless of the performance of the worker, as they are deemed to be earning

above the market rate for their job. It is rarely used as a scheme in isolation, butmay be part of a reward strategy incorporating several performance elements.

Team-based pay:While team-based pay has been around for some time in the shape of departmentalor group bonus systems it has taken on more importance with the increased interestin team working.



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In team-based pay systems the payments reflect the measurable goals of the team.Team working may be most effective in situations involving high taskinterdependence and creativity, although it can be difficult to define the team, the

goals, and the appropriate reward. Schemes can be divisive if they are not open and transparent. Goals should not be shifted once agreed - they need to be achievable.

The aim of team-based pay is to strengthen the team through incentives - building acoherent, mutually supportive group of people with a high level of involvement. Theteam achievements are recognized and rewarded. Peer group pressure can also behelpful in raising the performance of the whole team.



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Question No. 4-a) How are the various factors of productionaffected by global competition? Do we manage people any differently in a globally competitive environment?

Answer.

Global Competition

Global competition is used to describe the worldwide market, and the struggle of different companies or businesses to prevail over the other. Global competition canhelp with providing good companies that are constantly trying to please theconsumers!

Global Competitive Environment Rapid pace of change Pervasive shift towards markets Broad and fast diffusion of capabilities Emerging markets New global competitors Excess capacity and slow growth Regionalization of trade

- New rules of global competition

Potential Problems in Emerging Economies Political instability and succession Too much government intervention Unequal income distribution Infrastructure bottlenecks Overheated economies (inflation, current a/c deficits) Shortage of skilled labor

Legal environment (corruption, intellectual property) Inefficient financial systems Overcapacity

Emerging MarketsEmerging markets are larger than what the per capita income numbers would lead you to believe.

Purchasing power vs. exchange rates



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Unequal income distribution Regional inequalities Parallel economy



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Spectrum of Industries

Advantages of global firms Scale related

Manufacturing

Learning curve Sourcing R&D Marketing, distribution

Arbitrage Comparative advantage Scanning and learning from environment Institutional incentives Exchange rate volatility Cross-subsidization

Advantages of Localization Close to customer Adapt to local supply conditions Governmental preferences Organizational speed Lower overhead



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The Challenge Winning locally Converting global capability into local advantage Enriching global capability from local know-how

Effective Global Manager Develop and use global strategic skills Manage change and transition Manage cultural diversity Design and function in flexible organizational structures Ability to work with others and in teams Ability to communicate Learn and transfer knowledge in an organization

Mode of Entry

Key Success Factors Distribution

Fragmented Poor physical infrastructure Geographically fragmented Too many tiers

Service infrastructure: poor Marketing; invest in relationships and brand equity

Future Challenges Develop competitive advantage Establish regional (or even global) presence Move to higher value added activities Move into services and consumer goods Expand the market



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Question No. 4-b) From a strategic perspective, how can senior management make the best use of the human resource function?

Answer.

STRATEGIC MANAGEMENT

Strategic management can be used to determine mission, vision, values, goals,objectives, roles and responsibilities, timelines, etc.

The Management ProcessPlanning

OrganizingStaffingLeadingControlling

Human resource managementis the process of acquiring, training, appraising, and compensating employees, and

attending to their labor relations, health and safety, and fairness concerns. Thetopics well discuss should therefore provide you with the concepts and techniques

you need to carry out the people or personnel aspects of your management job.HRM People Functions Include: Conducting job analyses (determining the nature of each employees job) Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries (compensating employees) Providing incentives and benefits Appraising performance

Communicating (interviewing, counseling, disciplining) Training and developing managers Building employee commitment And what a manager should know about: Equal opportunity and affirmative action Employee health and safety Handling grievances and labor relations



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Strategic Planning and TrendsStrategy is the companys long-term plan for how it will balance its internalstrengths and weaknesses with its external opportunities and threats to maintain acompetitive advantage.The Strategic Planning Process

SWOT analysis - Strengths, Weaknesses, Opportunities, and ThreatsBest strategic plans balance a companys Strengths and Weaknesses with theOpportunities and Threats the firm facesBasic strategic trends

GlobalizationTechnological advancesThe nature of workThe workforce

Strategic HRMStrategic human resource management: linking HRM with strategic goals and objectives to improve business performance and develop organizational cultures

fostering innovation and flexibility



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How HR helps strategy executionFunctional strategies should support competitive strategiesValue chain analysisOutsourcing

Strategy FormulationHow HR helps form strategy

Formation of a companys strategy = identifying, analyzing and balancingexternal opportunities and threats with internal strengths and weaknessesEnvironmental scanning

HRs Role in Formulating Strategy Formulating a strategic plan requires identifying, analyzing, and balancingthe companys external opportunities and threats, and its internalstrengths and weaknesses. HR plays a role here, too.HR management can help with what strategic planners call environmentalscanning, identifying and analyzing external opportunities and threats thatmay be crucial to the companys success. Thus, American Airlinesconsidered and then rejected the opportunity to acquire USAir, a smaller and relatively weak airline. While American had several reasons for rejecting a bid, HR considerations loomed large. American had doubtsabout its ability to successfully negotiate new labor agreements withUSAirs employees, and felt the problems of assimilating them might betoo great.



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Question No. 5-a) What should be the components of a fair policy with regard to collecting, maintaining, and disseminating informationabout employees?

Answer.

Human resource is an integral part of any organization. Great stress is laid onimplementing an effective human resource system in an organization. There are lotsof department in an organization that makes use of human resource to setupstrategic planning and means to process officials assignments. The companies that donot have a proper human resource department suffer from official disorders and lackof management in office activities. THE FOLLOWING ACTIVITIES ARE CARRIED OUT BY HR RECRUITMENT APPROACH -using modern online recruitment and resumeassessment. SELECTION METHODS -using modern tools like psychometrics, personality

profiling etc

THE FOLLOWING ACTIVITIES ARE CARRIED OUT BY HR

RECRUITMENT APPROACH -using modern online recruitment and resume assessment.

SELECTION METHODS

-using modern tools like psychometrics , personality profiling etc

STAFF INITIATIONS 1. INDUCTION PROGRAMS -tailoring induction to each individuals. 2.ORIENTATION PROGRAMS -tailoring orientation to each individuals.

HOW EFFECTIVE IS THE HUMAN RESOURCE DEVELOPMENT PROCESS WHAT ARE THE VARIOUS METHODS/SYSTEMS USED1.PERFORMANCE APPRAISALS SYSTEMS -360 degree systems2.PERFORMANCE MANAGEMENT SYSTEM -self development programs -managementdevelopment programs -training coaching

ASSESSMANT OF POTENTIALS-use it for promotions -for succession planning -for talent management HR AUDIT HR STRATEGIC PLANNING



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ORGANIZATIONAL BEHAVIOR PROGRAMS-employee engagement -motivation-organization culture -organization developmentHUMAN RESOURCE PLANNING-HR planning -manpower planningHUMAN RESOURCE DEVELOPMENT -org. learning -training -education -development-Training evaluation -e learning -management development -career planning/development.REWARDS MANAGEMENT -job evaluation -managing reward process -administrationof rewards benefits



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Question No. 5-b) What control mechanisms might be mostappropriate to ensure that action plans match targeted needs?

Answer.

The best part is to have a control data which is numeric and not at all subjective.Secondly proper reviews at both the appraise and appraiser level should be there.There should be constructive discussions between the two.

Control and review mechanism human resource structure and system

Once the action plan is implemented regarding redeployment like promotion,transfer, demotion, redundancy and retrenchment, recruitment, selection, training,development and retention, human resources structure and system should becontrolled and reviewed with a view to keep them in accordance with the plan. The

following steps are identified by HR experts regarding control and review of humanresource structure and system.

They are:1. Considering the decisions regarding additions at the highest level.

2. Sending periodic reports to the top management stating the existing manpower

system and changes therein due to internal mobility and external mobility.

3. Using the personnel budgets as a basis for control as they are formulated on thebasis of manpower plans.

4. Auditing the human resources and studying manpower utilization. Manpower utilization can be measured be relating net man hours actually utilize in work to thestandard man hours planned to be utilized in work.

5. Measuring the efficiency of labor periodically in the form of labor productivity,employee-sales ratio, employment-investment ratio; employee-turnover ratio,employee-profit ratio etc. and compare them with standards of the organization and actual of other comparable organization.

6. Conducting the surveys and research studies with a view to find out the level of job satisfaction, morale, employee attitudes, interpersonal relations etc. and review and correct the situation with the help of the findings f the surveys and studies.



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7. Conducting the studies with a view to find out the efficiency and validity of recruitment, selection, training, etc.

8. Sending the reports regarding absenteeism, irregularities, overtime etc.

9. The break-even point / pay back period for new employees.

10. Conducting exit interviews; spotting out the area responsible, finding out thecauses and correcting the situation.

Problem in Human Resources PlanningThough HRP is beneficial to the organization, employees and trade unions, some

problems crop up in the process of HRP. Important among them are:

1. Resistance by Employers and Employees:Many employers resist HRP as they think that it increases the cost of manpower astrade unions demand for employees based on the plan, more facilities and benefitsincluding training and development. Further, employees feel that HRP is notnecessary as candidates are / will be available as and when required due tounemployment or other reasons. Employers may be true about unskilled and clericalstaff but it is not true in the case of all other categories as there is shortage for certain categories of human resources.

Trade unions and employees also resist HRP as they view that it increases theworkload of employees and prepares programs for securing the human resourcesmostly from outside. The other reason for their resistance is that HRP aims atcontrolling the employees through productivity maximization etc.

2. Uncertainties:Uncertainties can also be the reasons in human resources practices sometimes due toabsenteeism, seasonal employment, labor turnover etc. in some geographicallocations. Further the uncertainties in industrial scene like technological change,

marketing conditions also cause uncertainties in human resource management. Theuncertainties make the HRP less reliable.

3. Inadequacies of Information System:Information system regarding human resources may not be perfect in all industries.Some industries are not giving requisite importance to HR / personnel department



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and less importance is attached to HRP. Further the reliable data and informationabout the economy, other industries, labor market, trends in human resources, etc.are not sought in a proper manner by these organizations.

Cost-contribution Analysis in HRP Cost-contribution analysis of human resources is most important in HRP with a view to plan for more effective human resources system. The human resourcescomponents necessary to maximize employee contribution to the job and theorganization, and minimize the cost, should be determined in advance with the helpof human resource accounting techniques.

The optimum human resources system should be planned and determined as thehuman resources system is the control system in the organization because itemphasizes the human contribution which critically influences the organizational

effectiveness. Planning the human resources system includes determining the type of human resources components like creative and innovative skills and abilities,dynamism, leadership qualities, commitment, identification with the organizationetc.

Considering the measures to acquire those human resources through recruitment,training and development and adjusting the components. Similarly, cost of humanresources should be streamlined and it should be taken as investment on humanresources but not as mere cost. These items include remuneration cost( Pay,allowances, fringe benefits, other indirect cost), recruitment cost (cost of jobdesign, advertising cost, cost for conducting tests, interview, reference checks,medical examination and induction), training costs etc.

We conclude Human Resources Accounting (HRA) envisages capitalization of allexpenses like cost of recruitment, training etc. one of the systems of HRA i.e.replacement cost of human asset is an important tool for the formulation of manpower budget and plan for human resources. Regarding various problemsoutlined above there are always solutions and process to be implemented not oncebut on regular basis to overcome the same.



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M. Hammad Manzoor

508195394

# 508, 5th Floor,

Continental Trade Centre,

Clifton - 08, KARACHI. (0321-

Human Resource

52701

Mr. Sajid Saeed

H. No. 549/1, St No. 06,

Sector No. I, Airport Housing

Chakala , RAWALPINDI

(0300-550 O899)

Assignment 1st_527_Human Resource Management

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