ESSENTIALS OF HUMAN

RESOURCE MANAGEMENT

Certificate in Business Management

Mahesh Dharmadasa

MBA (Leicester) PGD (Aston) MCMI (UK) MCIM(UK) BA HONS (Kent)

Lecture overview

• What is HRM? • Key functions of HRM • Factors influencing HRM • Recruitment

• Policy • Strategy • Planning • Sources of recruitment • Recruitment methods

• Overview of selection

WHAT IS HRM?

• Human

• Resource

: refer to the skilled workforce in the organization

: refer to limited availability or scarce

• Management : refer to maximize or proper utilization and make

best use of limited and a scarce resource.

Human Resource Management is the process of proper and

maximize utilization of available limited skilled workforce. The core purpose of the human resource management is to make efficient use of existing human resource in the organization.

What is Human Resource management (HRM)

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization

HRM is the Managerial utilization of the Efforts, Knowledge,

Capabilities & Committed Behaviors which people contribute to an authoritatively coordinated human enterprise as part of an mployment exchange to carryout work, tasks in a way which enables the enterprise to continue in to the future

KEY DEFINITIONS

Personnel Management VS HRM

• Personnel Management is thus basically an administrative record-keeping function, at the operational level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently managing personnel activities for individual departments etc.

• Human Resource Management is concerned with the development

and implementation of people related strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals.

Source: HR Dictionary

Evolution of Human Resource Management

KEY FUNCTIONS OF HRM

2–17

Key Functions of HRM

Human Resource Planning

Job Analysis & Design

Recruitment

Selection

Orientation and induction

Training and development

Employee Motivation

Performance management

Employee health and safety

WHAT FACTORS

INFLUENCE HRM IN AN

ENTERPRISE?

INTERNAL FACTORS

EXTERNAL FACTORS

RECRUITMENT

Recruitment is the process of discovering competent employees out of available candidates in the market who are suitable to a job and requirements of a given organization

Recruitment is the process of discovering the sources

of manpower to meet the requirements of the planned staffing schedule in an organization

What is Recruitment ?

Planned / Expected Needs

Unplanned / Unexpected Needs

Anticipated Needs

Three types of Recruitment Needs

2–9

Recruitment Policy specifies the objectives of recruitment and establishes the overall framework for implementing the recruitment programme with in the organization Number of factors may influence the Framework of the Recruitment Policy: Organizational Objectives

Nature of the Sector / Industry

Government Policy

Regulatory framework of the country

Oragnizational culture / values / ethics

Financial Implications

Competitor Behavior

Recruitment Policy

Recruitment Policy

• A good recruitment policy can save an organisation from facing situations such as unproductive interviews due to non-availability of the right candidate in the applicant pool, compromising on the selection of good candidates, high attrition rate, low productivity etc

• A methodical recruitment policy can ensure the availability of

suitable persons at the appropriate time with the least disturbance to the production schedule

Features of a good recruitment policy include: • conformity with public policy and legislation • display dynamism and progressiveness to attract the best talent • ensuring equal-opportunities for ALL members of society

Recruitment Process

Human resource planning is the process of systematically forecasting both the future demand for and supply of employees and the deployment of their skills with respect to the strategic objectives of the organization. Human resource planning is a process that identifies current and future human resource needs for an organization, based on the goals and objectives set by upper management

It is a process in which an organization attempts to estimate the

demand for labour and evaluate the size, nature & sources of supply which will be required to meet the demand of the organization

© 2007 Thomson/South-Western. All rights reserved.

Human Resource Planning

1. Forecasting Demand for Human Resource

2. Forecasting Supply of Human Resource

3. Comparison / Gap Analysis

4. Corrective Action / HRP Strategies

Stages in Human Resource Planning

2–22

Stages in Human Resource Planning

Strategic Planning

Strategic planning is a step-by-step process of determining how to pursue the organization's long-term goals with the resources expected to be available It includes following key Activities:

Setting Corporate Direction (Where Do We Want to Go?) Situational / Environment Analysis (Where Are We Now?) Strategy Formulation (How Can We Go There?) Strategy Evaluation & Selection (What is the Best Way?) Strategy Implementation (Moment of Truth) Monitoring & Controlling (Are We There yet?)

Strategic Planning Process

2–25

Linking Strategy to HR Planning

Internal Sources

External Sources Internal recruitment is when the business looks to fill the vacancy from within its existing workforce

External recruitment is when the business looks to fill the vacancy from any suitable applicant outside the business

Sources of Recruitment

Transfers Promotions Re-Recruitment Internal Job Posting Replacement Charts / Arrangements Extended Employment Talent Identification through Performance

Appraisals

Sources of Recruitment – Internal Sources

Internal Recruitment

Finding Internal Candidates

Advantages

• Internal Motivation & Loyalty • Better assessment of Individual abilities • Cost Efficiency • Recognition for Good Performers • Facilitates Succession Planning • Hiring can be done at a lower level • No waste of time for Cultural Adaption

Sources of Recruitment – Internal Sources

2–30

Disadvantages

• Narrowing of New Thinking

• Need of Proper Training & Development

• Internal policy Constraints

• Lack of Internal Talents

• Internal de-motivation

• Internal Politics & Personnel Bias

Sources of Recruitment – Internal Sources

• Repetitive replacement task

Mobile)

Educational Institutions

Professional Associations

Recruitment Agencies

Advertisements

Job Portals

Interne ship Programmes

Walk-in Candidates

Networking

Digital Based (Social Media, Websites)

Job Fairs

Employee Referrals

Sources of Recruitment – External Sources

Advantages

• Adding of Fresh Blood • Can Initiate a Turnaround • Can Gain Competitor Expertise & Competences • Increase Diversity • Hiring will be done Only at One Level • Minimum internal Conflicts • Less Training Needs

Sources of Recruitment – External Sources

2–34

Disadvantages

• Uncertainty in terms of Performance

• High Cost

• Internal de-motivation within Performers

• Negative Impact on Employee Loyalty

• Cultural Conflicts

• Decision Time & Efforts

Sources of Recruitment – External Sources

Following Factors are determined prior to finalizing the recruitment source to be used;

Internal Labour Market

External Labour Market

Corporate Branding

Cost Implications

Nature of the Task

Sources of Recruitment – Determining Factors

2–36

SELECTION

• Selection is the process of choosing individuals who have relevant qualifications to fill existing or projected job openings.

• It is the process of picking up individuals (out of the pool of job

applicants) with requisite qualifications and competence to fill jobs in the organization.

• “Selection is the process of differentiating between applicants in

order to identify and hire those with a greater likelihood of success in a job”

What is Employee Selection?

2–38

i. Preliminary Interview / Initial Screening

ii. Employment Interview

iii. Selection Tests

iv. Reference & Background Checks

v. Selection Decision

vi. Physical Examination

vii. Job Offer

viii. Final Selection

Employee Selection Process

2–39

Selection Process: i. Preliminary Interview / Initial Screening

The purpose of preliminary interviews is basically to eliminate unqualified applications based on information supplied in application forms.

The basic objective is to reject misfits. On the other hands preliminary interviews is often called a courtesy interview and organization will continue with the next step of Selection Process only with the successful candidates in the preliminary interview.

Employee Selection

Selection Process: i. Preliminary Interview / Initial Screening

Cover letters & Resumes

Internet Checks & Phone Screening

Application Forms

Online Application

Employee Selection

ii. Employment Interview

Here interview is a formal and in-depth conversation between applicant’s acceptability. It is considered to be an excellent selection

device. Interviews can be One-to-One, Panel Interview, or Sequential Interviews.

Besides there can be different types of Interviews.

Following Attributes will be evaluated in an interview;

• Personal qualities

• Academic achievements

• Occupational experience

• Interpersonal competences

• Career orientation

Employee Selection

Selection Process:

Selection Process:

ii. Employment Interview

Different Interview Styles / Types

a) Non Directive Interview / unstructured

b) Structured Interview

c) Situational Interview (Hypothetical)

d) Behavioral Description Interview (Real)

e) Panel Interview

f) Phone Interviews

g) Computer Interviews

h) Video Interviews

i) Stress Interviews

Employee Selection

2–44

Selection Process:

ii. Employment Interview

Factors to be Considered by an Interviewer

A suitable location will have to be selected prior to the interview.

A standard interview guide line will have to be developed.

Interviewer must have a clear idea about the profile of the job.

Interviewer must continue the interview without Stereotypes or Bias.

Interviewer must be a good listener.

Interviewer must be a practical person with intelligence.

Interviewer must be a matured personality

Non-Verbal Communication must be identified.

Honesty & Accurate Information

Avoid Halo Error.

Employee Selection

2–10

Selection Process: iii. Selection Tests

Jobseekers who pass the preliminary interviews are called for tests. There are various types of tests conducted depending upon the jobs and the company.

• Performance test (Job Knowledge / Work Sample)

• Intelligent test

• Aptitude / Ability test

• Personality test

• Situational test

Employee Selection

Employee Selection

Selection Process:

After the Interview / selection tests following Post-Interview

Screening initiatives may be applied;

Reference Checks

Background Checks

Behavior / Credit Checks

Selection Process: iv. Reference & Background Checks

Reference checks and background checks are conducted to verify the information provided by the candidates. Reference checks can be through formal letters, telephone conversations or e-mails.

However it is merely a formality and selections decisions are not completely affected by it.

Employee Selection

Selection Process:

v. Selection Decision

After obtaining all the information, the most critical step is the selection decision to be made. The final decision has to be made out of applicants who have passed preliminary interviews, tests, final interviews and reference checks.

The views of line managers are considered generally because it is the line manager who is responsible for the performance of the new employee.

Employee Selection

Selection Process: vi. Physical / Medical Examination

After the selection decision is made, the candidate is required to undergo a physical fitness test. A job offer is often contingent upon the candidate passing the physical examination.

To perform certain job functions physical stability is very important.

Employee Selection

vii. Job Offer

The next step in selection process is the job offer to those

applicants who have got successful in all the previous stages in

the recruitment

& Selection process. It is formerly made by the way of letter of

appointment.

Employee Selection

Selection Process:

• Assessment Centres • Psychological Testing • Work Simulation • References

Employee Selection Alternative Selection Methods to Interviews:

Thank you! Any questions? bmslectures.mahesh@gmail.com