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    HUMAN RESOURCEMANAGEMENT

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    What is Human ResourceManagement?

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    HRM

    Human resource management (HRM) is the strategic andcoherent approach to the management of an organization'smost valued assets - the people working there whoindividually and collectively contribute to the achievement ofthe objectives of the business. The terms "human resource

    management" and "human resources" (HR) have largelyreplaced the term "personnel management" as a descriptionof the processes involved in managing people inorganizations. In simple sense, HRM means employingpeople, developing their resources, utilizing, maintainingand compensating their services in tune with the job andorganizational requirement.

    http://en.wikipedia.org/wiki/Strategichttp://en.wikipedia.org/wiki/Coherenthttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Coherenthttp://en.wikipedia.org/wiki/Strategic
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    HRM

    FeaturesIts features include:

    Organizational management

    Personnel administration

    Manpower management

    Industrial management

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    HRM But these traditional expressions are becoming less

    common for the theoretical discipline. Sometimes evenemployee and industrial relations are confusingly listedas synonyms, although these normally refer to therelationship between management and workers and the

    behavior of workers in companies. The theoretical discipline is based primarily on theassumption that employees are individuals with varyinggoals and needs, and as such should not be thought ofas basic business resources, such as trucks and filing

    cabinets. The field takes a positive view of workers,assuming that virtually all wish to contribute to theenterprise productively, and that the main obstacles totheir endeavors are lack of knowledge, insufficienttraining, and failures of process.

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    HRM

    HRM is seen by practitioners in the field as a moreinnovative view of workplace management than thetraditional approach. Its techniques force themanagers of an enterprise to express their goals withspecificity so that they can be understood andundertaken by the workforce, and to provide theresources needed for them to successfullyaccomplish their assignments. As such, HRMtechniques, when properly practiced, are expressive

    of the goals and operating practices of the overallenterprise. HRM is also seen by many to have a keyrole in risk reduction within organizations.

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    HRM (Definitions) Synonyms such as personnel managementare often used in a

    more restricted sense to describe activities that are necessary inthe recruiting of a workforce, providing its members with payrolland benefits, and administrating their work-life needs. So if wemove to actual definitions,

    Torrington and Hall (1987) define personnel management asbeing:

    a series of activities which: first enable working people and theiremploying organisations to agree about the objectives and natureof their working relationship and, secondly, ensures that theagreement is fulfilled.

    While Miller (1987) suggests that HRM relates to:

    ".......those decisions and actions which concern the managementof employees at all levels in the business and which are relatedto the implementation of strategies directed towards creating andsustaining competitive advantage.

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    HRM (Academic Theory)

    One widely used scheme to describe the role of HRM,developed by Dave Ulrich defines 4 fields for the HRMfunction:

    Strategic business partner Change management

    Employee champion Administration

    However, many HR functions these days struggle to getbeyond the roles of administration and employeechampion, and are seen rather as reactive than

    strategically proactive partners for the top management.In addition, HR organizations also have the difficulty inproving how their activities and processes add value tothe company. Only in the recent years HR scholars andHR professionals are focusing to develop models thatcan measure if HR adds value.

    http://en.wikipedia.org/wiki/Dave_Ulrichhttp://en.wikipedia.org/wiki/Dave_Ulrich
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    HRM (Business Practice)

    Business practice

    Human resources management comprises severalprocesses. Together they are supposed to achieve theabove mentioned goal. These processes can beperformed in an HR department, but some tasks can

    also be outsourced or performed by line-managers orother departments. When effectively integrated theyprovide significant economic benefit to the company.

    Workforce planning

    Recruitment (sometimes separated into attraction and

    selection) Induction, Orientation and Onboarding

    Skills management

    http://en.wikipedia.org/wiki/Workforce_planninghttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wiktionary.org/wiki/inductionhttp://en.wiktionary.org/wiki/orientationhttp://en.wikipedia.org/wiki/Onboardinghttp://en.wikipedia.org/wiki/Skills_managementhttp://en.wikipedia.org/wiki/Skills_managementhttp://en.wikipedia.org/wiki/Onboardinghttp://en.wiktionary.org/wiki/orientationhttp://en.wiktionary.org/wiki/inductionhttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Workforce_planning
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    Training and development

    Personnel administration

    Compensation in wage orsalary

    Time management

    Travel management (sometimes assigned to accounting ratherthan HRM)

    Payroll (sometimes assigned to accounting rather than HRM)

    Employee benefits administration

    Personnel cost planning

    Performance appraisal

    http://en.wikipedia.org/wiki/Training_and_developmenthttp://en.wikipedia.org/wiki/Wagehttp://en.wikipedia.org/wiki/Salaryhttp://en.wikipedia.org/wiki/Time_managementhttp://en.wikipedia.org/wiki/Payrollhttp://en.wikipedia.org/wiki/Employee_benefitshttp://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Employee_benefitshttp://en.wikipedia.org/wiki/Payrollhttp://en.wikipedia.org/wiki/Time_managementhttp://en.wikipedia.org/wiki/Salaryhttp://en.wikipedia.org/wiki/Wagehttp://en.wikipedia.org/wiki/Training_and_development
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    HRM-Environment

    FactorsFactors

    EXTERNALEXTERNAL POLITICALPOLITICAL LEGALLEGAL

    BUSINESS ENVIRONMENT BUSINESS ENVIRONMENT

    GLOBALISATIONGLOBALISATION MERGERS & ACQUISITIONSMERGERS & ACQUISITIONS

    DOWNSIZING /RIGHTSIZINGDOWNSIZING /RIGHTSIZING

    NATIONAL ECONOMYNATIONAL ECONOMY DEMOGRAPHICDEMOGRAPHIC

    Diverse workforceDiverse workforce Knowledge workforce / intellectual capitalKnowledge workforce / intellectual capital

    More Women in workforceMore Women in workforce

    Changing family structureChanging family structure

    Contingent workforceContingent workforce

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    TECHNOLOGICALTECHNOLOGICAL

    Occupational ShiftOccupational Shift (manufacturing(manufacturing.. services).. services)

    managing a virtual workforcemanaging a virtual workforce training & retraining employeestraining & retraining employees toto

    manage obsolescence.manage obsolescence. providing work life balanceproviding work life balance Need based technology notNeed based technology not fadsfads

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    Internal factorsInternal factors

    UnionsUnions Strategy, LeadershipStrategy, Leadership

    Organizational CultureOrganizational Culture

    Professional BodiesProfessional Bodies

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    The External Influences

    The External Influences The HRM activities don't exist in isolation. Rather, they

    are highly affected by what is occurring outside theorganization. It is important to recognize environmentalinfluences because any activity undertaken in each of

    the HRM processes is directly, or indirectly, affected bythese external elements. For example, lets say thatwhen a company downsizes its workforce, does it layoffworkers by seniority? If so, are an inordinate number ofminority employees affected. Although any attempt toidentify specific influences may prove insufficient, onecan categorize them into four general areas - thedynamic environment, governmental legislation, laborunions and current management practice.

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    The Dynamic Environment of HRM

    It's been stated that the only thing that remains constantduring our lifetimes is change (and paying taxes!). We

    must, therefore, prepare ourselves for events that have asignificant effect on our lives. HRM is no different. Manyevents help shape our field. Some of the more obviousones include-

    globalization,

    work-force diversity,

    changing skill requirements,

    corporate downsizing,

    total quality management,

    reengineering work processes,

    decentralized work sites, and

    employee involvement.

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    The Dynamic Environment of HRM

    GLOBALIZATION Globalization reflects theworldwide operations of many businesses today.One is no longer bound by continents or societalcultures.

    WORK FORCE DIVERSITY includes the varied

    backgrounds of employees that are present inthe companies today. Homogeneity ofemployees, and their needs, no longer exist. Thework today is more complex, requiringemployees with sophisticated skills. Withoutthem, many employees will lack the basicabilities to successfully perform in tomorrow'sorganizations.

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    The Dynamic Environment of HRM

    Corporate downsizing, total quality

    management, and reengineeringall relate to one

    another. As the world changed, U.S. companies had tocompete harder to maintain their leading industrial status.This meant doing things differently. In an effort to becomemore productive, organizations downsized to create greaterefficiency by eliminating certain jobs. Of the jobs and work

    processes remaining, total quality management (TQM) looksat ways of improving job effectiveness. By continuouslyimproving on methods, techniques, processes, and the like,companies made constant efforts to better what they produce.But what if what they produce, even if it's better, still doesn'tsatisfy the customer? In those cases, reengineering is

    necessary. Whereas TQM looks at new and improved ways ofproducing goods and services, reengineering looks at startingthe processes over again from scratch. That is, instead ofimproving on an existing product, the organization wouldanalyze what should be done and how they should do it.Searching for answers would not be constrained by current

    business practices.

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    The Dynamic Environment of HRM

    Decentralized work sites are quickly becoming partof many organizations. With the technologies that areavailable (personal computers, fax machines, modems,etc.), work that was once done on the company

    premises may now be more cost-effectively handled atthe employee's home. Lastly,

    Employee involvement looks at how employees' worklives are changing. Involved employees now have morecontrol over their jobs. Certain activities, like goal setting,were once the sole responsibility of managers. Withemployee involvement, such an action today permitsparticipation.

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    Governmental Legislation Many employees today wishing to take several

    weeks of unpaid leave to be with their newbornchildren, and return to their previous job without

    any loss of seniority, have an easier time makingthe request. Although some employers may seesuch an application as negatively affecting theworkflow, government legislation has given

    employees the right to take this leave. Lawssupporting this and other employer actions areimportant to the HRM process.

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    Legal Compliances

    Shops & Establishments Registration & Compliance

    Registration &Compliance under the Factories Act

    Registration & Compliance under Provident Fund Act

    Registration and Compliance under the ESI Act

    Compliance under Minimum Wages Act

    Compliance under the Gratuity Act

    Compliance under the Payment of Bonus Act

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    I.I. ObjectivesObjectives

    A. CompetitiveA. Competitive

    advantage.advantage.

    B. Changing trends.B. Changing trends.

    C. Importance ofC. Importance of

    measurement.measurement.

    HRM in a Changing Environment

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    II. OverviewII. OverviewA. Functions of HRMA. Functions of HRM

    B. HRM is about the peopleB. HRM is about the people

    who perform its activities.who perform its activities.

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    II. Overview cont...II. Overview cont...

    C. Most effective HRMC. Most effective HRMprogramsprograms

    1. Not typical.1. Not typical.2. HR is a major2. HR is a major

    contributor.contributor.

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    II. Overview cont...II. Overview cont...

    D. Status of HRM isD. Status of HRM is

    improving.improving.

    1. More Professional1. More Professional

    2. Bigger budgets2. Bigger budgets

    3. Senior3. Seniormanagementmanagement

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    III. HRM TrendsIII. HRM Trends

    A. Trend 1: productivityA. Trend 1: productivity

    B. Trend 2: flexibilityB. Trend 2: flexibility

    C. Trend 3: internationalC. Trend 3: international

    D. Trend 4: litigationD. Trend 4: litigation

    E. Trend 5: workforce.E. Trend 5: workforce.

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    IV. HRM MeasurementIV. HRM Measurement

    A. The value of HRMA. The value of HRM

    functions.functions.

    B. measurement canB. measurement can

    reduce cost.reduce cost.

    C. which HRM practicesC. which HRM practiceswork.work.

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    Management by Measurement

    System Management by measurement system

    ensuring all functional business units subscribeto guidelines for sound, strategic measurement criteria to measure

    performance (e.g., individual, team, unit) quantity, quality, timeliness, cost-effectiveness, effects on

    others

    productivity

    customer satisfaction

    absenteeism

    turnover/retention/tenure/intentions to stay/leave

    employee theft

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    Management byMeasurement System

    criteria to measure (continued)

    violence in the workplace

    job stress (e.g., role conflict, ambiguity)

    job satisfaction/motivation/attitudes/commitment creativity

    perceived fairness (procedural, interactional)

    error rates

    accidents, health-related variables (worker stress,

    injuries)

    organizational citizenship behavior

    HRM F ti

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    HRM Functions

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    The Human Resource System

    R

    etain

    i

    ng

    good

    staff

    Recruit m

    ent

    Process

    Handli

    n

    g

    proble

    ms

    Termination of employement

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    32

    Manage vendors, suppliers,budgets, and HR systems

    Handle employeestransactions andenquiries

    Develop and deliver

    programmes that enhance theorganisations ability toattract, develop and retainsuperior performers

    Align HR activities and programmeswith the strategic direction andbusiness needs of the organisation

    TodayToday FutureFuture

    Administration

    Transactions

    Performance

    Enhancement

    Strategy

    40%

    30%

    25%

    5%

    % Time, Effort,

    Cost

    20%

    20%

    20%

    Strategy

    Administration

    Performance

    Enhancement

    40%

    Transactions

    Source: Hay/McBer & Company, presented by Lyle M. Spencer,Jr.,PhD

    The Changing Face of HRHR Transaction and Administration functions are being enabled

    through leading edge e-HR solutions

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    33

    HRIS, INTERNET,

    INTRANETS &

    EXTRANETS

    Performance appraisal,

    including 360O feedback

    Widespread

    electronicsystems

    Enhanced distribution

    of HR policy,

    news, information

    Internet

    recruitmentBetter internal

    communication

    Maintenance

    of HR records

    On-line training

    & development

    Multi-site

    collaborative work

    teams, electronically

    linked

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    Considered to be the most important aspect of

    management

    Attitudes and abilities of staff have a crucial

    impact on the visitors experience

    Labour costs are likely to be the largest single

    items on the attractions budget

    Human Resource Management in

    Tourism

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    Tourism industry suffers from bad reputation in HRM

    High turnover of staff

    Seasonality of demand

    Poor status of jobs

    Lack of career structures

    Unusually demanding jobs

    lack of management expertise Lack of widely recognized qualification

    and training schemes

    Problems of HRM at visitor attractions

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    Problems ofpublic sectorattractions are often in direct

    contrast to the problems mentioned before

    Low turnover of staff

    Inflexible working practices

    Fixed-wage rages

    Standardized recruitment and disciplinary procedures

    Problems of HRM at visitor attractions cont.

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    Benefits for organisation of good HRM

    Improves performance of staff

    Provides a competitive advantage to the organization

    Contented staff provide better service to customers,

    encouraging repeat visitation

    Reputation for good staff will lead to increased first-

    time visitation

    HRM plays a part in determining the success orfailure of any organisation.

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    HUMAN RESOURCEPLANNING

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    PRODUCTIVITY

    ECONOMIC

    DEVELOPMENT

    GROWTH

    EFFECTIVE

    U

    TI

    L

    I

    Z

    AT

    I

    O

    N

    OF

    HUMAN

    CAPABILITY

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    Human Resource Planning

    Effective planning of HR is essential tomatch the requirements of the job with the

    individual

    Right resources at the right time to meetthe future organizational needs is critical

    A comprehensive and meticulous HRP

    process can ensure sustained growth of anorganization

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    Human Resource Planning Diversification or expansion, employee promotion

    or changes in human resource necessitateseffective HRP

    Organizational plans, goals, and strategies also

    needs effective HRP Success in business is dependent on being able

    to react quickly to opportunities

    Organizations must have accurate, rapid access

    to information about both supply of and demandfor HR

    rgan za ona e- yc e ages

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    rgan za ona e yc e agesHR Activities

    LIFE-CYCLESTAGE STAFFING COMPENSATION

    TRAINING ANDDEVELOPMENT

    LABOR /EMPLOYEERELATIONS

    Introduction Attract besttechnical andprofessionaltalent

    Meet or exceedlabor market ratesto attract neededtalent

    Define future skillrequirements andbegin establishingcareer ladders

    Set basicemployee-relationsphilosophy oforganization

    Growth Recruit adequatenumbers and mixof qualifiedworkers. Planmanagementsuccession.Manage rapidinternal labourmarketmovements

    Meet externalmarket butconsider internalequity effects.Establish formalcompensationstructures

    Mold effectivemanagementteam throughmanagementdevelopment and

    organizationaldevelopment

    Maintainlabour peace,employeemotivation &morale

    rgan za ona e- yc e ages an

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    rgan za ona e yc e ages anHR Activities

    LIFE-CYCLESTAGE STAFFING COMPENSATION

    TRAINING ANDDEVELOPMENT

    LABOR /EMPLOYEERELATIONS

    Maturity Encourage sufficientturnover to minimizelayoffs and providenew openings.Encourage mobility asreorganizations shiftjobs around

    Controlcompensation costs

    Maintainflexibility andskills of anaging

    workforce

    Control labourcosts &maintain labourpeace. Improveproductivity

    Decline Plan andimplementworkforce

    reductions andreallocations,downsizing andoutplacement mayoccur during thisstage

    Implementtighter cost

    control

    Implementretraining and

    careerconsultingservices

    Improveproductivity andachieve flexibility

    in work rules.Negotiate jobsecurity andemployment-adjustmentpolicies

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    Human Resource Planning

    HRP is both a process and a set of plans

    a process by which management of an

    organization determines its future HR

    requirements

    a plan to fill the future HR requirements frominternal and external sources

    Assessment of human resource

    requirements in advance vis a visorganizational objectives, production

    schedules, and demand fluctuations

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    Human Resource Planning

    The process of determining human resourcerequirements and the means of meeting those

    requirements in order to carry out the integrated

    plan of the organization Coleman

    Relates toestablishing job specifications

    determining the number of personnel

    required developing the sources of human resource

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    Internal vs. External

    System of matching the availableresources, either externally or internally,with the expected organizational demandover a period of time

    Internal Resources employees who are already in theorganization

    External Resources

    personnel who have to be recruitedfrom outside

    Obj ti f HRP

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    Objectives of HRP:-Forecasting HR Requirements

    maintain the required quantity & quality of HR

    turnover/attrition rates

    Effective Management of Change

    coping with changes in market conditions, technology,

    govt. regulations et alRealizing Organizational Goals

    expansion, diversification

    Promoting Employees

    database on skill repertoire

    Effective Utilization of HR

    surplus/unutilized employees vis a vis downsizing

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    Emergence of HRP

    Early HRP was top down, short range 1970s: manpower planning

    1990s: aligning HR strategy with

    corporate strategy

    attention to individual career

    planning

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    Effective HRP

    An effective HRP

    closes the gap between the current

    situation and a desired situation inthe context of an organizations

    strategy

    helps cope with change and achieveorganizational goals

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    HR Planning Levels

    HRP is carried out at differentorganizational levels to meet HRrequirements at those levels

    Flow of communication in HRP is both

    ways Top to bottom

    Bottom to top

    The levels are Corporate level planning

    Intermediate level planning

    Operational level planning

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    HR Planning Levels Corporate-level Planning

    Culture and mission of the organization Macro-level: changes in market conditions, technology, strategicplan, etc

    Identification of broad policy issues; employment, welfare,development policies

    Intermediate-level Planning

    SBU level, based on corporate-level HR Plan Determining recruitment, retaining, laying off

    Operational-level Planning Operations level plan Training & development, recruitment etc

    Planning Short-term Activities Management of day-to-day activities Ensure success or failure of corporate plans Grievance handling, etc

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    Environmental Scanning

    impact of strategy/goals on diff. units

    Forecastingquantity & quality of personnel needed

    Involving Line Managersdetermining HR needs of departments

    Analysis of Supplymatching current HR supply & reqmnt

    H

    R

    P

    P

    R

    O

    C

    ES

    SPlan of Action

    recruitment, selection, training, et al

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    Human

    Resource

    Planning

    Predict demand

    Forecast internal supply Forecast external supply

    Assess trends in

    External labour markets Current employees Future organizational plans

    General economic trends

    Compare future demand

    and internal supply

    Plan for dealing with predict-ed shortfalls or overstaffing

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    Situation Analysis Interaction of HRM and strategic planning

    The strategic plan must adapt to environmentalcircumstances

    HRM is one of the mechanisms of adaptation

    process Example: rapid technological changes can force

    an organization to quickly identify and hireemployees with new skills

    Without HR plan to support the recruitment &selection functions it would be impossible tomove fast to stay competitive

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    Forecasting

    Estimating not only how many but alsowhat kinds of employees will be needed

    Yields advance estimates or calculations

    of the organizations staffingrequirements

    Apart from quantitative tools, a great

    deal of human judgement is involved Incredibly difficult tasks, especially in

    rapidly changing environment

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    Forecasting Techniques

    Qualitative TechniquesExpert estimate

    Nominal Group Technique (NGT)

    Delphi Technique Quantitative Techniques

    Regression Analysis

    Productivity Ratios

    Personnel Ratios

    Time Series Analysis

    The Nominal Group

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    The Nominal GroupTechniqueA small group of 4-5 people gathers around a table. Leader

    identifies judgment issue and gives participants procedural

    instructions

    Participants write down all ideas that occur to them, keeping

    their lists private at this point. Creativity is encouraged during

    this phase

    Leader asks each participant to present ideas and writes themon a blackboard or flipchart, continuing until all ideas have been

    recorded

    Participants discuss each others ideas, clarifying, expanding,

    and evaluating them as a group

    Participants rank ideas privately in their own personal order and

    preference

    The idea that ranks highest among the participants is adopted

    as the groups judgment

    The Delphi Technique

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    The Delphi TechniqueLeader identifies judgment issues and develops questionnaire

    Prospective participants are identified and asked to cooperate

    Leaders send questionnaire to willing participants, who record

    their judgments and recommendations and return the

    questionnaire

    Leaders compiles summaries and reproduces participantsresponses

    Leader sends the compiled list of judgment to all participants

    Participants comment on each others ideas and propose a final

    judgment

    Leader looks

    for consensus

    Leader accepts consensus judgment as groups choice

    Statistical Techniq es

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    Statistical TechniquesNameName

    Regression analysis

    Productivity ratios

    DescriptionDescription

    Past levels of various work load indicators, such as sales,production levels, are examined for statistical relationships

    with staffing levels. Where sufficiently strong relationships

    are found, a regression (or multiple regression) model is

    derived. Forecasted levels of the retained indicator(s) are

    entered into the resulting model and used to calculate the

    associated level of human resource requirements.

    Historical data are used to examine past levels of a

    productivity index (P):

    P = Work load / Number of People

    Where constant, or systematic, relationships are found,

    human resource requirements can be computed by diving

    predicted work loads by P.

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    Statistical Techniques

    NameNamePersonnel ratios

    Time series analysis

    DescriptionDescriptionPast personnel data are examined to determine historical

    relationships among the employees in various jobs or job

    categories. Regression analysis or productivity ratios are

    then used to project either total or key-group human

    resource requirements, and personnel ratios are used to

    allocated total requirements to various job categories or toestimate for non-key groups.

    Past staffing levels (instead of work load indicators) are

    used to project future human resource requirements. Past

    staffing levels are examined to isolate and cyclical

    variation, long-tem terms, and random movement. Long-

    term trends are then extrapolated or projected using a

    moving average, exponential smoothing, or regression

    technique.

    A l i C t S l

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    Analysing Current Supply How many and what kinds of employees do I currently have in terms of the skills and training

    necessary for the future?

    Are resources available internally or externally to fill those needs? Internal

    skills inventory

    succession planning

    promotability

    External

    availability of qualified labor; surplus? shortage?

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    Analysing Current Supply The Skills Inventory: tool to assess current

    supply of employees in terms of

    skills

    abilities

    experiences

    training

    If the current inventory exceeds the future

    requirements and natural attrition cannotbring down the resources to match the future

    requirements?

    Employee Replacement Chart

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    Employee Replacement Chartfor Succession Planning

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    Managing Employee

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    Managing EmployeeSurpluses

    Source: Compliments of Dan Ward, GTE Corporation

    Managing Employee

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    a ag g p oyeeShortages

    Source: Compliments of Dan Ward, GTE Corporation

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    HRIS

    Human Resource Information System ismore than just a computerized skillsinventory

    An HRIS is an integrated approach to analysing

    acquiring

    storing controlling the flow of information

    throughout an organization

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    HRIS

    Highly developed HRIS systems canincrease efficiency and response time ofHRM activities

    The system might contain a programmefor tracking applicants, a skills inventory, acareer planning programme, employeeservice programmes

    One of the most common uses of anHRIS is in recruitment and tracking ofapplicants

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    Job analysis

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    Job analysisAn assessment of the kinds of skills,

    knowledge, and abilities needed to

    successfully perform each job in an

    organization

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    71

    Job Analysis

    Job analysis is the systematic collection

    and recording of information concerning:

    the purpose of a job,

    its major duties,

    the conditions under which it is performed,

    the contact with others that performance of

    the job requires, and the knowledge, skills, and abilities needed for

    performing the job effectively.

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    JOB ANALYSIS OUTCOMES

    Job description

    Job specification

    Job evaluation

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    Job Analysis Components

    Job description

    A written statement of what a job holder does, how it

    is done, and why it is done

    Tasks, duties and responsibilities that the job entails

    Job specification

    A statement of the minimum acceptable qualifications

    that an incumbent must possess to perform a given

    job successfully

    Knowledge, skills, and abilities required of the job holder

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    JOB DESCRIPTION

    Focus on the job Written statement

    What is done

    How

    Why

    Includes Job content

    Environment

    Conditions ofemployment

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    TYPICAL JOB DESCRIPTION FORMATS

    Job title

    Duties

    Distinguishing

    characteristics Authority

    Responsibilities

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    JOB DESCRIPTIONS ARE USEFUL FOR

    Recruiters

    New hires

    Performance

    appraisals Identifying essential

    job functions

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    JOB SPECIFICATION

    Focus on the personwho does the job

    Identifies minimumincumbent

    qualifications Knowledge, skills,

    education,experience,certification, abilities

    Personality

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    JOB EVALUATION

    Establish job

    comparability

    Compensation

    Relative value

    Competitive analysis

    IT TAKES GOOD JOB ANALYSIS TO

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    IT TAKES GOOD JOB ANALYSIS TO

    PERFORM

    THESE HRFUNCTIONS WELL:

    Recruiting

    Selection Strategic human

    resource planning

    Employee training

    AND.

    MORE HR FUNCTIONS NEED JOB

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    MORE HR FUNCTIONS NEED JOB

    ANALYSIS

    Employeedevelopment

    Career development

    Performanceappraisal

    Compensation

    Safety and health

    Labor relations

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    The Multifaceted Nature of the Job Analysis

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    82

    Ajob analysis may be based on informationobtained through direct observation, interviews,diaries or questionnaires.

    Ajob description is a statement of the duties,

    working conditions, and other significantrequirements associated with a particular job.

    Ajob specification is a statement of the skills,abilities, education and previous workexperience that are required to perform aparticular job.

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    83

    Methods of Job Analysis

    For existing jobs, interviews withemployees

    Interviews with supervisors

    Observation

    Combination, interviews & observation

    Structured questionnaires Employee journals/logbooks

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    Job Analysis

    Unorganized data has little use.

    Only concerned with facts.

    Concerned only with the job, not the

    worker.

    Not job classification.

    Required to determine job qualifications?

    No, but planning is the key to success.

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    Tools used

    Books and Literature

    Valid information on current job analysis and

    studies.

    Job analysis that are being implemented byother successful companies.

    Past and present failures and successes.

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    Tools cont..

    Flow and Organizational Charts

    Very helpful for showing past and current

    information.

    Show trends and similarities.

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    Recruitment and Selection

    R it t A d S l ti

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    Recruitment And Selection

    Recruitment

    The process of locating, identifying, and

    attracting capable applicants

    Selection process The process of screening job applicants to

    ensure that the most appropriate candidates

    are hired

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    Recruitment and Selection

    We have specific objectives in recruiting andselecting:

    Identifying the right people.

    Reducing the range of differences inperformance from least effective tomost effective workforce.

    Keeping turnover to a minimum.

    R it t d S l ti

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    Recruitment and Selection

    How to achieve objectives: There is no magic answer.

    Start with a good solid job description.

    Do customer analysis.

    Analyze competitors workforce.

    Analyze our workforce.

    Take info from these steps and compile a

    profile on type of person we want.

    R it t d S l ti

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    Developing a pool of applicants:Job must be sufficiently attractive.

    Then we go to many sources to recruit

    such as:College placement services.

    Trade media advertising.

    Newspaper advertising.Employment services.

    Recruitment and Selection

    Recruitment and Selection

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    Screening and final selection:

    Comparison with our preferred

    employee profile.Interviews to assess.

    Impressions candidate makes.

    Interest in job.

    Personal characteristics.

    Recruitment and Selection

    Strategic

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    Strategic

    Recruiting

    Stages

    Typical Division of HR

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    Typical Division of HR

    Responsibilities

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    Traditional Recruiting Sources

    Internal searches

    Advertisements

    Employee referrals

    Public employment agencies Private employment agencies

    Campus placement

    Temporary help services

    Employee leasing and

    independent contractors

    Organizational Recruiting

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    Organizational Recruiting

    Activities

    RecruitingRecruiting

    ImageImage

    RecruitingRecruitingPresencePresence

    Training ofTraining of

    RecruitersRecruiters

    EffectiveEffectiveRecruitingRecruiting

    Strategic Recruiting Decisions

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    Strategic Recruiting Decisions

    RecruitingRecruiting

    Source Choices:Source Choices:

    Internal vs.Internal vs.

    ExternalExternal

    RecruitingRecruiting

    Source Choices:Source Choices:

    Internal vs.Internal vs.

    ExternalExternal

    Organizational-Organizational-Based vs.Based vs.

    OutsourcingOutsourcing

    Organizational-Organizational-Based vs.Based vs.

    OutsourcingOutsourcing

    Regular vs.Regular vs.

    Flexible StaffingFlexible Staffing

    Regular vs.Regular vs.

    Flexible StaffingFlexible Staffing

    Recruiting andRecruiting and

    EEO/DiversityEEO/Diversity

    ConsiderationsConsiderations

    Recruiting andRecruiting and

    EEO/DiversityEEO/Diversity

    ConsiderationsConsiderations

    StrategicStrategic

    RecruitingRecruiting

    StrategicStrategic

    RecruitingRecruiting

    EEO and Diversity Considerations

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    EEO and Diversity Considerations

    Advantages and Disadvantages of

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    Advantages and Disadvantages of

    Internal and External Recruiting Sources

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    Internal Recruiting Methods

    Internet Recruiting Methods

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    Internet Recruiting Methods

    Job BoardsJob Boards

    Professional/Professional/Career Web SitesCareer Web Sites

    Employer Web SitesEmployer Web Sites

    InternetInternet

    RecruitingRecruitingMethodsMethods

    Internet Recruiting

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    Internet Recruiting

    Advantages Recruiting cost

    savings

    Recruiting time

    savings

    Expanded pool of

    applicants

    Morale building for

    current employees

    Disadvantages More unqualified

    applicants

    Additional work for HR

    staff members

    Many applicants are

    not seriously seeking

    employment

    Access limited or

    unavailable to some

    applicants

    External Recruiting

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    External Recruiting

    Employment AgenciesEmployment Agenciesand Search Firmsand Search Firms

    College andCollege andUniversityUniversityRecruitingRecruiting

    High Schools andHigh Schools andTechnical SchoolsTechnical Schools

    LaborLaborUnionsUnions

    ExternalExternalRecruitingRecruiting

    SourcesSources

    Media SourcesMedia Sourcesand Job Fairsand Job Fairs

    CompetitiveCompetitiveSourcesSources

    What to Include in an Effective

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    What to Include in an Effective

    Recruiting Ad

    Evaluating Recruiting

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    Evaluating Recruiting

    Evaluating RecruitingEvaluating Recruiting

    EffortsEfforts

    EvaluatingEvaluating

    TimeTime

    Required toRequired to

    Fill OpeningsFill Openings

    EvaluatingEvaluating

    RecruitingRecruiting

    Costs andCosts and

    BenefitsBenefits

    EvaluatingEvaluating

    RecruitingRecruiting

    Quality andQuality and

    QuantityQuantity

    Recruiting Evaluation

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    Recruiting Evaluation General Areas for Evaluating Recruiting

    Quantity of applicants

    EEO goals met

    Quality of applicants

    Yield ratios A comparison of the number of applicants at onestage of the recruiting process to the number at thenext stage.

    Selection rate The percentage hired from a given group of

    candidates

    Recruiting Evaluation Pyramid

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    Recruiting Evaluation Pyramid

    Selection and Placement

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    Selection and Placement

    SelectionThe process of choosing individuals who have

    needed qualities to fill jobs in an organization.

    Organizations need qualified employees tosucceed

    Good training will not make up for bad selection.

    Hire hard, manage easy.

    HRs Role in Selection and

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    Placement Reasons for centralizing selection

    Easier to have applicants in one place.

    Contact with outside applicants is easier.

    Managers can concentrate on operating

    responsibilities rather than the selection

    process.

    Selection costs are lower with no duplicatedefforts.

    Selection Methods

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    Selection Methods Yield ratios

    A comparison of the number of applicants at one

    stage of the recruiting process to the number at the

    next stage

    Selection rate

    Percentage hired from a given group of candidates

    Acceptance Rate

    Percentage of rejected job offers

    Success Base Rate Comparing percentage rate of past applicants who

    were good employees to that of current employees.

    Selection Terms

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    Selection Terms

    Reliability The degree to which a selection device measures the

    same thing consistently (stability)

    Example: an individual consistently achieves nearly identical

    scores on the same exam.

    Validity

    The proven relationship between a selection device

    and some relevant criterion (a measure of job

    success) Example: superior job performance and high employment test

    scores

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    The case of Protection Royale 1

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    113

    y The focus is on the Financial Consultancy Division of this insurance company

    There had been very low turnover among the sales consultants whose job had been tomarket the companys insurance products to insurance brokers.

    Recruitment was by replacement:

    advertise in the trade press

    use specialist recruitment agencies

    recommendations from existing staff

    shortlist from applications

    interviews, roles plays, psychometric testing

    references

    But the job became harder as products diversified and become more complex

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    Protection Royale ... 3

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    115

    Furthermore, legislation introduced in 1994

    required financial sales practitioners to holdvarious qualifications

    Therefore there was a big reduction ineligible people within the external labourmarket.

    Existing staff were deemed either suitable,unsuitable or possible; many left

    Line managers tried to head-huntreplacements, but failed.

    A crisis became apparent

    y

    Protection Royale ... 4

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    116

    Recruitment champions were appointed Line managers and HR specialists were givenperformance indicators relating to recruitmentobjectives

    A new search for direct recruits and fortrainees.

    A matrix of selection methods (e.g.

    Application form, testing of job knowledge/skills/attitudes, psychometric testing,interviews, simulations, presentations,references) and competencies.

    Protection Royale ... 4

    Protection Royale... 5

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    117

    National advertising

    7 day phone-in interviews, followed by screeninginterviews

    Assessment centre based selection

    Appointment of an induction manager

    Thorough procedural knowledge training for all thoseinvolved in the recruitment and selection process.

    Protection Royale... 5

    Recruitment & Selection flowing downf C t St t

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    118

    from Corporate Strategy Here the objective of recruitment & section would be

    to recruit people who will enhance the org.s capacityto deliver its corporate strategy.

    E.g. for an INNOVATION corp. strategy, the companywould seek to recruit people with:

    highly innovative behaviour preference/ability for co-operative behaviour relatively high risk taking tolerant of uncertainty

    moderate concern for quality of output balanced orientation toward process and results longer-term focus

    For a QUALITY ENHANCEMENT or COSTREDUCTION corp. strategies, the patterns would be

    different

    Recruitment & Selection driving

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    119

    There is a business case for building more

    DIVERSITY into organisations

    enhances creative capability

    greater flexibility in global markets

    more widely equipped to face unpredictable

    challenges

    Recruitment & Selection drivingCorporate Strategy

    Recruitment & Selection Flowing down

    from Organisation Structure

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    120

    from Organisation Structure

    Behavioursrequired in

    managers in

    Organic

    Organisations: networking

    team building

    information retrieval innovative problem

    solving

    Mgt competencies required inOrganic organisations

    info search

    concept formation

    conceptual flexibility

    interpersonal search

    managing interaction

    developmental orientation

    self confidence Proactiveness

    achievement orientation

    (These may be needed by non-managers too)

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    Training and Development

    The Workplace Skills Strategy

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    Human capital is increasingly regardedas one of the major drivers of

    productivity, economic growth andcompetitive advantage. Recognizing the importance of human

    capital, the training manpower setsout to generate:

    A skilled, adaptable, motivated andresilient workforce

    A flexible, efficient labour market

    A responsive strategy to meet employersneeds for skilled workers

    A learned employee can retain customersand increase business & market sharethro proper behavior and good publicrelations

    As a demand-driven

    approach to human resource

    and skills development, the

    Training will build and

    strengthen relationships with

    and among workplacepartners and better engage

    employers, unions to

    respond to the challenges of

    workplace skills

    development.

    An organization is only as good as its

    employees

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    employees.

    In order for an organization to produce professionalcareer minded employees an investment has to be

    made.

    What type of investment must an employer

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    offer employees to gain this?

    An investment in training and education is a sure payoff.

    Importance of Training

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    Managers: Importance to overall business strategy

    Labour leaders: Importance to collective bargainingissues

    5%

    22%

    44%

    30%

    9%

    29%

    37%

    25%

    0%

    5%

    10%

    15%

    20%

    25%

    30%35%

    40%

    45%

    50%

    not/s lightly important important very im portant crucial

    managers

    labour

    Examples of Training Investments

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    Industry and government in the United Statesspend approximately $90 billion each year onemployee training and education.

    Average Japanese companies spends about 6%of budget on training.

    Study of major automobile manufactures foundU. S automakers spend about 40 hourstraining new employees compared to 300hours for Japanese automakers.

    Motorolas CEO required all divisions to spendat least 2% of budget on training. Over next 7years, profits increased 47% and it wasestimated that each $1.00 in training yielded$30.00 in return.

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    TRAINING ACTIVITIES SHOULD BE

    ALIGNED WITH OVERALLOBJECTIVE OF THE

    ORGANISATION,

    WITH A MEANINGFUL EMPHASIS ONVALUE ADDITION TO OUR

    HUMAN RESOURCES.

    Factors to consider

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    Factors to consider

    Training to benefit organisation Training to benefit employees

    Training to benefit the industry

    Provide a good return on investment?

    Investment

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    To invest properly, the employer must provide training asone of the needed tools for employees to get the job

    done.

    Why Training?

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    The sharing of information through training is our mostvaluable tool to develop our most valuable assetour

    employees.

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    TRAININGS SHOULD AIM AT

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    EMPOWERING THE EMPLOYEES

    INCREASING PRODUCTIVITY

    MAKING THE PROCESSES MORE

    EFFICENT AND EFFECTIVEso as to

    ENSURE ULTIMATE

    CUSTOMER SATISFACTIONIMPROVE THE OVERALL

    PERFORMANCE OF THE ORGANISATION.

    Importance of Training contd

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    1. Respond to technology changes affectingjob requirements.

    2. Respond to organizational restructuring.

    3. Adapt to increased diversity of theworkforce.

    4. Support career development.

    5. Fulfill employee need for growth.

    Importance of Training and Development

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    Maintain skill levels Advance skill and knowledge to improve

    Performance (efficiency)

    Service delivery (error rate)

    Profitability (productivity, manpower)

    Integrate new technologies into work

    Establish standards for work practices

    Benefits of Training - Individuals

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    Do job more efficiently learn newmethods

    Professional approach to work, engaged

    in best practice routines Personal satisfaction felt valued

    Recognised qualification to add to CV

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    Benefits of Training-a summary

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    Improved customer service and public relations Fewer complaints

    Better morale and attitudes

    Less turnover and absenteeism

    More involved and caring employees

    Proactive vs. reactive employees

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    MANAGEMENTs ONE OF THEMOST IMPORTANT FUNCTIONS IS

    TO TRAIN PEOPLE FOR THEIR

    JOBS.

    Then why is training often neglected?

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    Urgency of need Training time

    Costs

    Employee turnover Short-term worker

    Diversity of worker

    Kinds of jobs (simple-complex)

    Not knowing exactly what you

    want your people to do and how

    Attitudes to training

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    g

    Individual: How is that related to

    what I do?

    Im good at my job and

    anyway, I have no time I suppose thats my

    weekends shot for

    months!

    Are they trying to get ridof me?

    Employer: How can I be sure the

    organisation will benefit?

    Training is so expensive how will I know if it has been

    effective? Will this effect the goal of

    developing and implementingstandards and protocols forthe organisation?

    If I train them, theyll leave

    Our front-line employees are often good

    will ambassadors

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    will ambassadors.

    Yet they are the ones who hold the most thankless job.Their role and their understanding of their role is the vital

    key towards their development and their ability to provide

    excellent customer service.

    Importance of TrainingTeaching people How to do Their

    J b

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    Jobs:

    There are three kinds oftraining: Job Instruction,Retraining, and Orientation.

    The big sister/ big brother

    system is when a old handdominates a newcomer.

    When good training is absentthere is likely to be an

    atmosphere of tension, crisis,and conflict because nobodyknows what to do.

    Training Process Model

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    I. Needs

    Assessment

    II. Developing &

    Conducting

    Training

    III. EvaluatingTraining

    Developing a Unit Training Program

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    This is taught in several sessions.

    It should provide check points tomeasure progress.

    Should include two elements:

    1. Showing and telling the

    employee what to do.2. Having the employee do it (right).

    Location should be ambient.

    Training materials should be the

    same as used on the job.

    Who will do the Training?

    The magic apron method: people

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    The magic apron method: people

    train themselves the easiest ways to

    get the job done.

    The person that is leaving trains:

    teaches shortcuts and ways of

    breaking the rules. Big sister, big brother method:

    passes on bad habits and may resent

    new person as a competitor.

    The logical person to train new

    workers is The employer!

    How employees learn the best:

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    When they are actively involved in the

    learning process-(to do this choose aappropriate teaching method).

    Training is relevant and practical.

    Training material is organized and

    presented in chunks.

    Training is in an informal, quiet, and

    comfortable setting.

    When they have a good trainer.

    When they receive feedback on

    performance.

    When they are rewarded.

    How do Employees Learn the

    Best?

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    Best?

    Learning is theacquisition of skills,knowledge, or attitudes.

    The adult learningtheory is a field ofresearch that examineshow adults learn. Anumber of the followingtips come from the adultleaning theory.

    How do Employees Learn the Best?

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    Tell me and I forget, teach

    me and I remember, involve

    me and I learn

    - Benjamin Franklin

    Kinds of training

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    Informal on the job, phone a friend Formal attendance or completion

    Formal certified, vindicated

    Evidence of Return on Investment

    Must be planned

    Allows for customisation, relates to workplace

    standards

    Job Instruction Training (JIT)

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    g ( )

    Also called on the job training. Consists of 4 steps:

    1. Prepare the learner

    2. Demonstrate the task3. Have the worker do thetask

    4. Follow through: put theworker on the job, correctingand supporting as nessicary.

    Classroom Training Skills Be aware of appropriate body

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    Be aware of appropriate body

    language and speech.

    Watch how you talk to

    employees. Covey respect and

    appreciation.

    Handle problem behaviors in aneffective manner.

    Avoid time wasters.

    Facilitate employee participationand discussion.

    Use visual aids to avoid

    constantly referring to notes.

    DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

    DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

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    MAKE IT FUN RULES FOR LEARNING:

    1. ASK QUESTIONS

    The only dumb questions are the ones you dontask!

    2. MAKE MISTAKES Training is a great place to make mistakes. The you

    wont make as many at work in the live environment!

    DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

    DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

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    MAKE IT FUN RULES FOR LEARNING Continued

    3. HAVE FUN

    This rule is very important

    4. CHEAT Watch how other people do things or yell for help

    3. Types of Training

    Types of Training

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    1. Skills Training.

    2. Retraining.

    3. Cross-

    Functional.

    4. Team Training.

    5. CreativityTraining.

    6. Literacy Training.7. DiversityTraining.

    8. CustomerService.

    1. SKILLS TRAINING

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    Focus on job knowledgeand skill for:

    Instructing new hires.

    Overcoming performance

    deficits of the workforce.

    2. Retraining

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    g

    Maintaining workerknowledge and skill as job

    requirements change dueto:

    Technological innovation

    Organizationalrestructuring

    3. Cross-Functional Training

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    Training employees toperform a wider varietyof tasks in order to gain:

    Flexibility in workscheduling.

    Improved coordination.

    4. Team Training

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    g

    Training self-directedteams with regard to:

    Management skills.Coordination skills.

    Cross-functional skills.

    5. Creativity Training

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    Using innovativelearning

    techniques toenhance employeeability to spawn

    new ideas andnew approaches.

    6. Literacy Training

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    Improving basic skills ofthe workforce such asmathematics, reading,

    writing, and effectiveemployee behaviorssuch as punctuality,

    responsibility,cooperation,etc.

    7. Diversity Training

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    Instituting a variety ofprograms to instillawareness, tolerance,respect, and acceptanceof persons of differentrace, gender, etc. anddifferent backgrounds.

    8. Customer Service Training

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    Training to improvecommunication, betterresponse to customer

    needs, and ways toenhance customersatisfaction.

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    3. Computer Assisted InstructionPROS CONS

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    Efficient instruction.

    Considers individualdifferences.

    Allows scheduling flexibility.

    Allows active practice forsome tasks.

    Allows learner control.

    Provides immediatefeedback to tasks.

    Limited in presenting theories

    and principles. Limited discussion.

    Transfer depends onparticular job. (Good forcomputer work.)

    High development cost (40-60hours per hour of instructionat approx Rs. 10,000 perhour.)

    5. Simulation

    PROS CONS

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    Provides realism.

    Allows active practice.

    Provides immediatefeedback.

    Allows exposure tohazardous events.

    High transfer to job.

    No job interference.

    Lowers trainee stress.

    Cannot cover all jobaspects.

    Limited number oftrainees.

    Can be very expensive

    (for example, aircraftsimulators and virtualreality simulators).

    PROS CONS

    6. On-The-Job TrainingPROS CONS

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    Provides realism. Allows activepractice.

    Providesimmediatefeedback.

    High motivation. High transfer to

    job. Lowers training

    cost.

    Disruptions tooperations.

    May damageequipment.

    Inconsistent acrossdepartments.

    Inadequate focus onunderlying principles.

    Lack of systematicfeedback.

    Transfer of improperprocedures.

    Trainee stress.

    CONS

    Overcoming Obstacles to

    Learning

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    Reduce fearwith a positive approach(convey confidence in the worker).

    Increase motivation: emphasize

    whatever is of value to the learner,

    make the program form a series ofsmall successes, build in incentives

    and rewards.

    Limited abilities: adjust teaching to

    learners level.

    Laziness, indifference, resistance: May

    mean a problem worker.

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    Types of Evaluation Designs

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    Train Measure

    Post Test Only. Cannot tell if

    there is a change in knowledgeor skill.

    Measure Train Measure

    Pre-test with Post-test. Detects achange, but cannot tell if training

    was responsible.

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