Chapter 11Managing Diverse Human

Resource

HRM at the earlier stages

• Up till the mid 1960s, HRM activities were only limited to maintaining files related to employees information and planning company social activities such as picnics, company trips etc.

• As the time kept passing and by 1970s companies started focusing much on HR practices in order to gain competitive advantage.

HRM

Human Resource Management is the managing of different activities that are designed to

increase and enhance the effectiveness of an organization`s work force in achieving

organizational goals.Definition 2:

A Management function concerned with the attracting, maintaining and developing people

in the relationship.

HRM Process

Human Resource Planning Staffing Development &

Evaluation

Compensation

Maintaining effective work force relations

1-HR Planning

• HR planning ensures the right person with the right skills at the right place

• Demand and supply issues are also considered.

• How Many People required

Different Activities in HR Planning

1) Job Analysis:Job analysis is the process of getting detailed

information about jobs.

• Some of the human resource activities that use job analysis information include selection, performance appraisal, training and development, job evaluation, career planning, work redesign, and human resource planning.

• Information contained in the Job Analysis is divided in to two parts

Job Analysis

Job Description

Job/ Person Specification

1. Job Description: A job description is a list of the tasks, duties, and responsibilities that the job entails.

2. Job/Person Specification: A job specification is a list of the knowledge, skills, abilities, and other characteristics (KSAOs) that an individual must have to perform the job.

Demand & Supply of Human Resource

• A Significant aspect of Human resource planning is the assessment of demand for human resource.

• Many factors affect HR demand such as environmental, changing organizational position

• Internal work force changes constantly due to death, retirement, resignations etc for which company hire contingent workers

Supply of the Human Resource- Internal

• Internal Labor Supply Through Transfers, promotionsHR Departments use Skill Inventory &

Replacement Charts

• External Labor Supply

Reconciling Demand & Supply

• Balancing demand and supply is important• Companies give hand shake, early retirements

if supply exceeds demand

• Additional Information: To secure people from NOT being

treated equally, companies use ‘Affirmative actions’ & make ‘Affirmative action plans’

Due to Globalization we have to focus on diversity- Diversity management

2- Staffing

• Set of activities through which candidates are attracted and selected for jobs/vacancies in order to achieve organizational goals

• Staffing includes:1. Recruitment2. Selection

• Recruitment: process of finding and attracting candidates that are capable of effectively filling the job vacancy

• Recruitment has 3 objectives:

1) Ensuringcomplianceby the organisation with government regulations

1) Ensuringcomplianceby the organisation with government regulations

2) Maximising thepool of applicants at minimum cost

2) Maximising thepool of applicants at minimum cost

3) Attracting suitably qualified and skilled applicants

3) Attracting suitably qualified and skilled applicants

InternalJob Posting-bb, intranet, noticesExternalAdvertising, campus recruitment, employment

agencies, online, pamphlets

INTERNAL RECRUITMENTADVANTAGES DISADVANTAGES- Improves morale - ’Inbreeding’ - Better assessment - Nepotism- Motivates staff - Infighting/ power

struggle- Maintains organization knowledge

EXTERNAL RECRUITMENTADVANTAGES DISADVANTAGES- “Fresh blood” - Harder to assess- New knowledge and - Lowers internal

experience morale- Gain competitive skills - Adjustment to

different work culture

METHODS OF RECRUITMENT

AdvertisementsAdvertisements

Employee referralsEmployee referrals

Internal promotionInternal promotion

Employment agenciesEmployment agenciesE-recruitmentE-recruitment

ContractorsContractors

Campus interviewsCampus interviews

Executive recruitment(‘head hunters’)

Executive recruitment(‘head hunters’)

• Selection: Process of Determining which jobs candidates, best suits the organization.

• Selection process needs to be transparent and totally based on merit. At times businesses end up discriminating which is not considered to be a positive thing in any society.

• Additional: However organizations can discriminate on some basis due to the nature of their job; But for this they have to acquire Bona Fide Occupational Qualification BFOQ

• Selection Methods:• Application Form• Interviews• Online interviews, Telephonic Interviews• Employment Test• Assessment Centers• Work Sample Tests• Reference Checks

3- Development & Evaluation

• Training is a planned effort to facilitate employee learning of job-related behaviors and skills

• Development: Broad preparation of employee for future opportunities through acquisition of new skills and attitudes in order to improve employee performance in the long run.

• Gap B/W Actual Performance & Expected Performance

Phases of Training

1) Assessment Phase: Need Analysis, setting objectives

2) Training Design & Implementation: methods, deciding trainers.

a) On-The-Job trainingb) Off-The-Job training

3) Training Evaluation: measuring participant reaction & accessing actual learning

Types of Training

• Orientation Training

• Technical Training

• Management Development trainings for further progress

Performance Appraisal

• Process of job performance of the employees.

• Performance appraisal helps in identifying company expectations of performance, improving quality of employees, generates the record of employee performance and builds consistency between organizational goals and individual actions.

• Methods include:• GRS- Graphic Rating Scale• Behavior Rating Scale

B E H A V IO RA L

R AT I N

G

S C AL E

Example 2

B E H A V IO RA L

R AT I N

G

S C AL E

• Latest Performance Appraisal Method Used 360 Degree Feedback

Compensation

• Compensation consists of wages paid directly for time worked and the other indirect benefits

• Compensation is the cashable amount received in return to the services given or time worked.

• Benefits are the form of compensation beyond wages which includes various entities such as, car, petrol allowance, medical insurance, house etc.

Fair Compensation System

• Equity Concept:• External Equity: What is same in other

organization• Internal Equity: Employee`s perception of their

responsibilities and work conditions as compared with those of other employees in similar positions in the same organization

• Individual Equity: based on individual`s merit and varied skills

Maintaining Effective Work Force Relations

• Labor-Management relations

• Unions

Current Employees Issues

The Current Trend

• The advancement in the technology and excessive use of IT systems have resulted in the development of HR systems for the purpose of the management of workforce issues.

• HRIS: computerized systems that collect, store, maintain and analyze data relating to the organization`s human resources.

Contemporary issues in HRM

• Managing DiversityAge-Race-Gender-Physical ability-Gender

• Ageing workforce

• Skills shortages

• Work-life balance

And now days we are Talking about Strategic HRM

• When we include the word ‘strategy’ to ‘HRM’, it becomes the managing of the organizational activities that are related to the work force for long term success of the organization and the long term achievement of organizational goals; keeping in view its strategic plans etc.

CIPD

• Strategic human resource management (strategic HRM, or SHRM) may be regarded as an approach to the management of human resources that provides a strategic framework to support long-term business goals and outcomes. The approach is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need.