HR chapter 1

Lecture 14A: Lecture 14A: Managing Human Resources Managing Human Resources Today Today (Chp 1)(Chp 1)

Maryam NiaziOB / HRM

Book:A Framework for Human Resource

Management (6th Edition) by Gary Dessler

OB/HRM (MGT 302) - Maryam Niazi 2

Lecture OutlineLecture Outline

What is Human Resource Management (HRM)

Personnel Aspects of a Manager’s Job

Line & Staff aspects of HRM

HR Duties

Changing HR EnvironmentOB/HRM (MGT 302) - Maryam Niazi 1–3

Strategy and the Basic HR ProcessStrategy and the Basic HR Process

© 2005 Prentice Hall Inc. All rights reserved. 1–4

Figure 1–8

The Manager’s Human The Manager’s Human ResourceResourceManagement JobsManagement JobsManagement process

◦The five basic functions of planning, organizing, staffing, leading, and controlling.

Human resource management (HRM)

◦The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising and providing a safe, ethical and fair environment for your employees

OB/HRM (MGT 302) - Maryam Niazi5

Personnel Aspects Of A Personnel Aspects Of A Manager’s JobManager’s Job Conducting job analyses (determining the nature of

each employee’s 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

OB/HRM (MGT 302) - Maryam Niazi 1–6

Personnel MistakesPersonnel Mistakes Hire the wrong person for the job

Experience high turnover

Have your people not doing their best

Waste time with useless interviews

Have your company in court because of discriminatory actions

Have your company cited under occupational safety laws for unsafe practices

Have some employees think their salaries are unfair and inequitable relative to others in the organization

Allow a lack of training to undermine your department’s effectiveness

Commit any unfair labor practices


Why study HR then?Why study HR then?Getting results

◦The bottom line of managing

HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve its strategic goals.


Line and Staff Aspects of Line and Staff Aspects of HRMHRMLine manager

◦A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks e.g. production manager

Staff manager◦A manager who assists and advises

line managers e.g. HR manager


Functions of the HR Functions of the HR ManagerManagerA line function

◦The HR manager directs the activities of the people in his or her own department

A coordinative function◦HR managers also coordinate

personnel activities, a duty often referred to as functional control.

Staff (assist and advise) functions◦Assisting and advising line managers

is the heart of the HR manager’s job.

OB/HRM (MGT 302) - Maryam Niazi1–10

HR and AuthorityHR and AuthorityAuthority

◦The right to make decisions, direct others’ work, and give orders.

Implied authority◦The authority exerted by an HR manager

by virtue of others’ knowledge that he or she has access to top management.

Line authority◦The authority exerted by an HR manager

by directing the activities of the people in his or her own department and in service areas.


Examples of HR Job DutiesExamples of HR Job DutiesRecruitersEqual employment opportunity

(EEO) coordinatorsJob analystsCompensation managersTraining specialistsLabor relations specialists


A Changing HR A Changing HR EnvironmentEnvironmentGlobalization

Technological Advances

The Nature of Work

Workforce Demographics


A Changing HR A Changing HR EnvironmentEnvironment Globalization: Firms expanding sales to new

markets abroad (e.g. Dell produces PCs in China). More competition means lowering costs & doing better things less expensively

Technological Advances: Changing nature of business environment e.g. the Spanish retailer Zara operates its own internet based worldwide distribution network

The Nature of Work: Increased emphasis on training workers to substitute manual labor with automated machines

Workforce Demographics: Gen Y (Younger workers have different work values than their parents), aging workforce, increase in part-time workers


The HR Manager TodayThe HR Manager TodayFocus more on ‘strategic issues’ and

not only on hiring employeesFind new ways to provide

transactional services (e.g. on-line advertising)

Build HPWS(High Performance Work Systems): well-trained employees, sophisticated recruitment practices, higher productivity

HPWS: A set of HRM Policies that together produce superior employee performance


Benefits of a High Benefits of a High Performance Work System Performance Work System (HPWS)(HPWS)Generate more job applicantsScreen candidates more effectivelyProvide more and better trainingLink pay more explicitly to performanceProvide a safer work environmentProduce more qualified applicants per positionMore employees are hired based on validated

selection testsProvide more hours of training for new

employeesHigher percentages of employees receiving

regular performance appraisals.OB/HRM (MGT 302) - Maryam Niazi

1–16

The HR Manager Today The HR Manager Today (Contd...)(Contd...)Understanding Evidence-Based

Management (EBM): Use of data, facts, critical evaluation, research studies to support decision making

Measure HR Performance through ‘metrics’ e.g.

Turnover Rate[Number of separations during month ÷ Average

number of employees during month] × 100

Time to fillTotal days elapsed to fill requisitions ÷ Number hired


Lecture 14B: Lecture 14B: Personnel Planning & Recruiting Personnel Planning & Recruiting (Chp 3)(Chp 3)

Maryam NiaziOB / HRM


Lecture OutlineLecture OutlineWhat is Job Analysis?Methods of Job AnalysisJob Description & Job SpecificationThe Recruitment & Selection ProcessWorkforce Planning & ForecastingRecruiting Job Candidates: Internal &

External SourcesDeveloping & Using Application Forms


A. The Nature of Job A. The Nature of Job AnalysisAnalysisJob analysis

◦The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it.

Job description◦A list of a job’s duties, responsibilities,

reporting relationships, working conditions, and supervisory responsibilities—one product of a job analysis.

Job specifications◦A list of a job’s “human requirements,”

that is, the requisite education, skills, personality, and so on—another product of a job analysis.


Uses of Job Analysis InformationUses of Job Analysis Information


Methods of Collecting Job Methods of Collecting Job Analysis Information: The Analysis Information: The InterviewInterview Information sources

◦ Individual employees◦ Groups of employees◦ Supervisors with

knowledge of the jobAdvantages

◦ Quick, direct way to find overlooked information.

Disadvantages◦ Distorted

information

Interview formats◦ Structured

(Checklist)◦ Unstructured


Methods of Collecting Job Methods of Collecting Job Analysis Information: Analysis Information: QuestionnairesQuestionnaires

Information source◦ Have employees fill

out questionnaires to describe their job-related duties and responsibilities.

Questionnaire formats◦ Structured checklists◦ Open-ended

questions

Advantages◦ Quick and efficient

way to gather information from large numbers of employees

Disadvantages◦ Expense and time

consumed in preparing and testing the questionnaire


Methods of Collecting Job Methods of Collecting Job Analysis Information: Analysis Information: ObservationObservation

Information source◦ Observing and

noting the physical activities of employees as they go about their jobs.

Advantages◦ Provides first-hand

information◦ Reduces distortion of

informationDisadvantages

◦ Time consuming◦ Difficulty in capturing

entire job cycle◦ Of little use if job

involves a high level of mental activity.


Methods of Collecting Job Methods of Collecting Job Analysis Information: Analysis Information: Participant Diary/LogsParticipant Diary/Logs

Information source◦ Workers keep a

chronological diary/ log of what they do and the time spent in each activity.

Advantages◦ Produces a more

complete picture of the job

◦ Employee participation

Disadvantages◦ Distortion of

information◦ Depends upon

employees to accurately recall their activities


Writing Job DescriptionsWriting Job Descriptions

A job description◦A written statement of what the worker

actually does, how he or she does it, and what the job’s working conditions are.

Sections of a typical job description◦ Job identification

◦ Job summary

◦ Reporting Relationships

◦ Responsibilities and duties

◦ Standards of performance / Working conditions

◦ Job specifications


The Job DescriptionThe Job Description Job Identification

◦ Job title◦ Preparation date◦ Preparer

Job Summary◦ General nature of the

job◦ Major

functions/activities Relationships

◦ Reports to:◦ Supervises:◦ Works with: ◦ Outside the company:

Responsibilities and Duties◦ Major responsibilities and

duties (essential functions)

◦ Decision-making authority◦ Direct supervision◦ Budgetary limitations

Standards of Performance and Working Conditions◦ What it takes to do the

job successfully

• Job Specificationo Educationo Work Experienceo SkillsOB/HRM (MGT 302) - Maryam Niazi4–27

Sample Job Sample Job Description, Description,

Pearson Pearson EducationEducation


Figure 3.1

Source: Courtesy of HR Department, Pearson Education.


Figure 3.1

Source: Courtesy of HR Department, Pearson

Education.

The Job DescriptionThe Job DescriptionJob identification

◦Job title: name of job◦Preparation date: when the

description was written◦Prepared by: who wrote the

descriptionJob summary

◦Describes the general nature of the job

◦Lists the major functions or activitiesOB/HRM (MGT 302) - Maryam Niazi 30

The Job Description The Job Description (cont’d)(cont’d)Relationships (chain of command)

◦Reports to: employee’s immediate supervisor

◦Supervises: employees that the job incumbent directly supervises

◦Works with: others with whom the job holder will be expected to work and come into contact with internally.

◦Outside the company: others with whom the job holder is expected to work and come into contact with externally.


The Job Description The Job Description (cont’d)(cont’d)Responsibilities and duties

◦A listing of the job’s major responsibilities and duties (essential functions)

◦Defines limits of jobholder’s decision-making authority, direct supervision, and budgetary limitations.

Standard Occupational Classification◦Classifies all workers into one of 23 major

groups of jobs which are subdivided into 96 minor groups of jobs and detailed occupations.


SOC’s SOC’s Major Major

Groups of Groups of JobsJobs


Table 4–2

Note: Within these major groups are 96 minor groups, 449 broad occupations, and 821 detailed occupations.

The Recruitment and The Recruitment and Selection ProcessSelection Process1. Decide what positions you’ll have to fill

through personnel planning and forecasting.2. Build a pool of candidates for these jobs by

recruiting internal or external candidates.3. Have candidates complete application forms

and perhaps undergo an initial screening interview.

4. Use selection techniques like tests, background investigations, and physical exams to identify viable candidates.

5. Decide who to make an offer to, by having the supervisor and perhaps others on the team interview the candidates.


Steps in Recruitment and Selection Steps in Recruitment and Selection ProcessProcess


The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

Planning and ForecastingPlanning and ForecastingEmployment or personnel

planning◦The process of deciding what

positions the firm will have to fill, and how to fill them.

What to forecast?◦Overall personnel needs◦The supply of inside candidates◦The supply of outside candidates


B1: Forecasting Personnel B1: Forecasting Personnel NeedsNeedsTrend analysis

◦The study of a firm’s past employment needs over a period of years to predict future needs.

Ratio analysis◦A forecasting technique for determining

future staff needs by using ratios between a causal factor and the number of employees needed e.g. sales volume & salespeople• The Scatter PlotA graphical method used to help identify

the relationship between two variables.OB/HRM (MGT 302) - Maryam

Niazi 37

Determining the Relationship Between Determining the Relationship Between Hospital Size and Number of NursesHospital Size and Number of Nurses


Figure 5–3

Forecasting the Supply of Forecasting the Supply of Inside CandidatesInside Candidates

Qualifications inventories◦Manual or computerized records listing

employees’ education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion.

Personnel replacement charts◦Company records showing present

performance and promotability of inside candidates for the most important positions.


Management Management Replacement Chart Replacement Chart

Showing Showing Development Needs Development Needs of Future Divisional of Future Divisional

Vice PresidentVice President


Computerized Information Computerized Information SystemsSystemsHuman Resource Information System (HRIS)

◦ Computerized inventory of information that can be accessed to determine employees’ background, experience, and skills that may include: Work experience codes Product or service knowledge Industry experience Formal education


Forecasting the Supply of Forecasting the Supply of Outside CandidatesOutside Candidates

Factors impacting the supply of outside candidates◦ General economic conditions◦ Expected unemployment rate


Finding CandidatesFinding Candidates


Sources of Candidates

Internal External

Internal Candidates: Internal Candidates: Hiring from WithinHiring from Within

Foreknowledge of candidates’ strengths and weaknesses

More accurate view of candidate’s skills

Candidates have a stronger commitment to the company

Increases employee morale Less training and

orientation required

Failed applicants become discontented

Time wasted interviewing inside candidates who will not be considered

Inbreeding strengthens tendency to maintain the status quo.


Advantages Disadvantages

Finding Internal Finding Internal CandidatesCandidates


Hiring from Within

Job Posting

Succession Planning (HRIS)

Rehiring Former

Employees

Outside Sources of Outside Sources of CandidatesCandidates


1

2

3

Advertising

Recruiting via the Internet

Employment Agencies

4

5

6

Executive Recruiters

College Recruiting

Referrals and Walk-ins

Locating Outside Candidates

Internet RecruitingInternet Recruiting

(+) Advantages Cost-effective way to publicize job openings More applicants attracted over a longer period Immediate applicant responses Online prescreening of applicants Links to other job search sites Automation of applicant tracking and evaluation

(-) Disadvantages Exclusion of older and minority workers Excessive number of unqualified applicants Personal information privacy concerns of

applicants


AdvertisingAdvertising◦ The Media: selection of the best medium

depends on the positions for which the firm is recruiting.

Newspapers (local and specific labor markets)

Trade and professional journals Internet job sites Marketing programs

Constructing an effective ad◦ Wording related to job interest factors should

evoke the applicant’s attention, interest, desire, and action (AIDA) and create a positive impression of the firm.


Ineffective and Effective Web AdsIneffective and Effective Web Ads


Help Help Wanted Wanted

AdAd


Source: The Miami Herald, March 24, 2004, p. SF.

Employment AgenciesEmployment AgenciesReasons for using a private employment

agency:◦ When a firm doesn’t have an HR department and is not

geared to doing recruiting and screening.

◦ The firm has found it difficult in the past to generate a pool of qualified applicants.

◦ The firm must fill a particular opening quickly.

◦ There is a perceived need to attract a greater number of minority or female applicants.

◦ The firm wants to reach currently employed individuals, who might feel more comfortable dealing with agencies than with competing companies.

◦ The firm wants to cut down on the time it’s devoting to recruiting.


Employment AgenciesEmployment AgenciesAvoiding problems with employment agencies:

◦ Give the agency an accurate and complete job description.

◦ Make sure tests, application blanks, and interviews are part of the agency’s selection process.

◦ Periodically review data on candidates accepted or rejected by your firm, and by the agency. Check on the effectiveness and fairness of the agency’s screening process.

◦ Screen the agency. Check with other managers or HR people to find out which agencies have been the most effective at filling the sorts of positions needed to be filled.

◦ Review the Internet and a few back issues of the Sunday classified ads to discover the agencies that handle the positions to be filled.


Executive Recruiters / Executive Recruiters / HeadhuntersHeadhunters

◦Special employment agencies retained by employers to seek out top-management talent for their clients. Contingent-based recruiters collect a fee for

their services when a successful hire is completed.

Retained executive searchers are paid regardless of the outcome of the recruitment process

(+) Contacts, Confidentiality, Time & cost saving

(-) Detailed explanation of JD is required


College RecruitingCollege Recruiting◦Recruiting goals

To determine if the candidate is worthy of further consideration

To attract good candidates (expensive, recruiter effectiveness is critical)

◦Internships(+) Hire fresh talent(-) Expensive, Contact person is

critical in the recruiting process


Employee referralsEmployee referrals

◦ Applicants who are referred to the organization by current employees

(+) More applicants, Cost-effective, Higher quality candidates

(-) De motivation if referral gets rejected

Walk-ins◦ Direct applicants who seek employment

with or without encouragement from other sources.

◦ Courteous treatment of any applicant is a good business practice.


Recruiting A More Diverse Recruiting A More Diverse WorkforceWorkforce


Single Parents

Older Workers

Welfare-to-Work

Minorities and Women

The Disabled

Developing and Using Developing and Using Application FormsApplication Forms


Applicant’s education

and experience

Applicant’s likelihood of

success

Applicant’s progress

and growth

Uses of Application Information

Applicant’s employment

stability

Key TakeawaysKey Takeaways

HRM pertains to “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising and providing a safe, ethical and fair environment for your employees.

HR Managers perform three functions.The first step in the HR process is ‘Personnel

Planning & Recruiting’. Job analysis consists of two components: JD &

JS.Employees can be recruited internally &

externally.

OB/HRM - Maryam Niazi 58

ImportantImportantMakeup Class on Saturday 21st

March 2015 (Timings: 9am to 12 noon, Aud 10 & Aud 9)

Quiz Reminder!Quiz Reminder!

Quiz 6 will be taken in the next class

Syllabus: Lecture 14A & 14B


Next Topic & ReadingsNext Topic & Readings

Next Topic: Testing & Selecting Employees


Discussion SessionDiscussion SessionAssignment: HR_01Assignment: HR_01

Prepare a Job Description for an HR Officer

Hard copy submission3 members per group

Next Week: Case Next Week: Case PresentationPresentation

Presentations of CS_06

GlossaryGlossaryHuman Resource Management

Line Manager

Staff Manager

Line Function

Staff Function

Coordinative Function

Implied Authority

High Performance Work System (HPWS)

Jo Analysis

Job Description

Job Specification

Headhunters

HR chapter 1

Documents

Transcript of HR chapter 1