HUMAN RESOURCE MANAGEMENT: DEFINITION, EVOLUTION, SCOPE, & INTRODUCTORY STAFFING AND SUCCESSION MANAGEMENT

CONTENTS

❑ INTRODUCTION

❑ SCOPE

❑ EVOLUTION

❑ CHALLENGES

❑ ELEMENTS

❑ ORIENTATIONS

❑ STAFFING: RECRUITMENT, SELECTION & SOCIALISATION

❑ SUCCESSION

❑ SUMMARY & CONCLUSIONS

INTRODUCTION

❑ DEFINITION: ACQUIRING AND UTILISING PEOPLE

❑ TOOLS: CONCEPTS, THEORIES, MODELS, POLICIES, STRATEGIES, PLANS, PROGRAMMES

❑ OUTCOME: ORGANISATIONAL EFFECTIVENESS

A MODEL OF THE DEFINITION OF HRM

TOOLS AND STRATEGIES

Concepts

Theories

Models

Policies

Plans

Programmes

Procedures

Strategies

Rules

Regulations

Culture

ACQUISITION

UTILISATION

ORGANISATIONAL EFFECTIVENESS

HR FUNCTIONS HR OUTCOMES

SCOPE OF HUMAN RESOURCE MANAGEMENT

PERSONAL ORGANI-SATIONAL

INDUST-RIAL

NATIONAL & BEYOND

BEFORE EMPLOY-

MENT

Careers

Self preparation

Growth related conflicts

Feasibility planning, work

design, evaluation,

organisational policies

Technological change, tech

use, etc.

Schools,

Training

Employment

DURING EMPLOY-

MENT

Time, mood, feelings,

stress, self-development,

etc

Planning, control,

motivation, leadership, staffing,

counseling, etc

Wage determination,

conflict resolution

Labour laws

Employment, wages

Inflation, Conflict

regulation

AFTER EMPLOY-

MENT

Post-retirement networking

Psychosocial adjustment

Post-retirement

follow-up, exit interviews,

organisational surveys

Pension policies

Pensions

NSITF

Policy reviews

EVOLUTION

❑ LABOUR ADMINISTRATION

❑ LABOUR/STAFF ADMINISTRATION

❑ PERSONNEL ADMINISTRATION

❑ PERSONNEL MANAGEMENT

❑ HUMAN RESOURCE MANAGEMENT

❑ HUMAN RESOURCE ACCOUNTING

❑ HUMAN CAPITAL

LA

BE

LS

DA

TE

S

PREVAILING MANAGE-

MENT THOUGHTS

SIZE OF ORGANIS-ATION &

ADMINISTRATIVE UNITS

NATURE OF INDUSTRIAL CONFLICT

SETTING UP OF

PERSONNEL DEPARTMENT

USE OF MANUALS

PROBLEMS WITH ADOPTED PRACTICES

Labour

Adm

inis

tration

1850 -

1900 Taylorism and

Fordism

Mostly small; Few owner managers

Over physical conditions and terms of employment; Usually blue collar workers

No HR Departments. PA or Secretary to CEO handled personnel matters

Manuals are followed strictly. No managerial discretion

Taylorism failed because it was focused on production, not welfare, social and human relations conditions. White collar conflicts were assumed to be non-existent

Labour/

Sta

ff

Adm

inis

tration

1900 -

1920s

Taylorism and Fordism

Mostly medium; Few managers

White collar and other senior staffers joined

No such Departments; PA and Secretaries continued to co-ordinate people management

Manuals are applied strictly

Taylorism continued to show malfunctioning, social issues were ignored, productivity suffered

Pers

onnel A

dm

inis

tration

1900 -

1950s

Hawthorne Experiments, Human resource and scientific management

Mostly medium; few managers especially in the public sector

Workers’ rights movements Emergence of trade unions

Few companies put up Personnel. Departments in western countries, and in companies with foreign connections

Manuals were recommended for all issues and situations

Events of the world wars promoted workers awareness. Conflict tended to be individual and inter-personal. Goal differences occurred between individuals and organisations. People became assets in organisations

MANAGEMENT THOUGHTS AND EVOLUTION OF HUMAN RESOURCE MANAGEMENT 1

MANAGEMENT THOUGHTS AND EVOLUTION OF HUMAN RESOURCE MANAGEMENT 2

LA

BE

LS

DA

TE

S PREVAILING

MANAGE-MENT

THOUGHTS

SIZE OF ORGANIS-ATION &

ADMINISTRATIVE UNITS

NATURE OF INDUSTRIAL CONFLICT

SETTING UP OF

PERSONNEL DEPARTMENT

USE OF MANUALS

PROBLEMS WITH ADOPTED PRACTICES

Pers

onnel

Mana

gem

ent

1940 -

1990s

Individual differences and personality; OR; Strategic thinking; SWOT; MBO, Quality of working life (QWL), etc.

Mostly large joint stock companies; and TNCs; professional managers

Pressures from all interest groups. Public servants also started protests

Personnel Departments were established, in Nigeria in the 1970s

Manuals were de-emphasised. Some managerial discretion allowed

Lifestyles and social conditions changed. Inability to cope with the pangs of inflation. Labour turnover and mobility

Hum

an

Reso

urc

e

Mana

gem

ent

Hum

an

Reso

urc

e A

ccountin

g ???

1980s

– P

rese

nt

QWL, HRM Technique; Flexible specialisation; Globalisation; Re-engineering; global competitive-ness; Information and inter-national net-working

Transnational Companies and multinational managers. Small scale employers growing due to economic recession and informal-isation of hitherto formal sectors

Mostly wage related issues. Blurring of economic and political conflicts

Virtually all organisations have a Personnel Dept. HR functions exist in all organisations, although Personnel Departments may be absent in SMEs; Computers make home working possible. HR programmes reduces the size of managers in Personnel Departments to a few who are versatile

Manuals are used rarely, except sometimes in the public sector; Very little prospect for manuals, except those which are computer-based

Global challenges are changes in demographic profiles, economic, political instability. Activities and responses of international labour movement. Relevance of trade unions challenged.

ELEMENTS OF HRM❑ STRATEGIC THINKING

❑ DIVERSITY

❑ INDIVIDUAL DIFFERENCES & WELFARE

❑ OPERATIONS RESEARCH AND SCIENTIFIC MANAGEMENT

❑ FLEXIBLE SPECIALISATION,

❑ OPEN COMMUNICATION

❑ QWL, TQM, RE-ENGINEERING

❑ GLOBALISATION

❑ UNION AVOIDANCE

❑ COMPETITIVENESS

❑ INFORMATION TECH, NETWORKING, etc

ORIENTATIONS FOR MANAGERS

❑ A ROLE FOR ALL MANAGERS

❑ COSTS VS. INVESTMENTS

❑ USE OF DISCRETION

❑ PRINCIPAL GOALS

❑ MODIFIER GOALS

❑ A BALANCE

❑ FAIRNESS, EQUITY, JUSTICE

❑ NARROW SELF-ORGANISATIONAL GOAL DIFFERENCE.

IMPLICATIONS

❑ LABELS CHANGE WITH MANAGEMENT THOUGHTS

❑ COMPATIBILITY OF THE CURRENT LABEL

❑ VERSATILITY REQUIRED

❑ INCREASED COMPUTERISATION

❑ FUTURE SMALLER HRD SIZE

❑ PROACTIVITY AND COMPETITIVENESS

STAFFING PROCESSES❑ DEFINITION AND OBJECTIVE OF

STAFFING

➢ RIGHT QUALITY, QUANTITY, TIME, PLACE, JOB, PRICE, COST

➢ Working overseas- Behaviour based Interview method (BBIM)

➢ Age, gender (sex) Personal data not required in Europe

➢ Cultural ethics in the workplace

Right quality

◼ Implications of over-qualifications

◼ Job dissatisfaction and exit

◼ Cheap talents and skills (positive)

◼ Implications of under-qualifications

◼ Unhealthy workers

◼ Poor output

Right quantity

◼ Understaffing◼ Excessive work,

◼ death by installments, GENDER

◼ exit

◼ Low HR costs, high short term profits

◼ Overstaffing◼ Light workload,

◼ opportunity for moonlighting

◼ High medical costs,

◼ job dissatisfaction

◼ high turnover

Right time

◼ Time is money

◼ Implications of wrong staffing timing

◼ Inability to supply orders on schedule

◼ Job dissatisfaction among current employees

◼ Poor organisational reputation

◼ Organisational ineffectiveness

Right place

◼ Structural adjustments are often required

◼ Movements from areas of surplus to areas of shortage

◼ At whose initiative?

◼ Employee, need to exercise caution

◼ organisation

Right job

◼ Calls for understanding of motivations and personality traits

◼ Wrong jobs:◼ Job dissatisfaction

◼ Low motivation to work and stay

◼ Medical and mental conditions

◼ What is your preference?◼ Worker or professional

Right price

◼ The value of labour is the wage

◼ The wage on offer must be enough to:◼ Attract, retain and motivate

◼ International Best Practice: ◼ Do job evaluation, wage surveys and

assessment of individual worth before agreeing on remuneration

◼ Review policies as necessary

Right cost

◼ Managerial efficiency is judged by the ratio of results to costs

◼ Relevant costs: ◼ recruitment,

◼ selection,

◼ placement,

◼ initial training, etc

◼ IBP: ◼ Benchmark historically and competitors

JOB ANALYSIS

➢ The systematic study of all the task elements that make up a job, thus leading to:➢ JOB DESCRIPTION

➢ JOB REQUIREMENTS

➢ JOB SPECIFICATIONS

➢ JOB STANDARDS

❑ HUMAN RESOURCE PLANNING

Methods of job analysis

◼ Observation and ergonomics◼ Merits and demerits

◼ Example: typewriting

◼ Questionnaires◼ Merits and demerits

◼ Examples: PAQ, Fleishman JAS, Task analysis, Diaries, computer analysis, etc.

◼ Both◼ Optimises the merits and minimises the demerits

of observation and questionnaire

Job description

◼ A brief statement of the findings of job analysis

◼ It could be as brief as one statement

◼ Contains the main duties, the reporting system and the equipment employed

◼ It is often done hapharzardly in error

Job requirement

◼ A statement of the mental and physical efforts needed to do a job successfully

◼ Every job requires mental and physical efforts, but in varying amounts

◼ White-collar and blue collar differences

Job specification

◼ A statement of the qualifications that must be possessed by a job incumbent for job success.

◼ Note the correspondence between:◼ Mental requirement = education

◼ Physical requirement = experience

◼ What are the metrics for assessing these qualities in job candidates?

Job standards

◼ A statement of the average time it takes to complete a work process using the output of the average performer.

◼ Standards based on output of high-performers◼ May lead to understaffing

◼ And vice versa.

◼ Job standards are the critical inputs into human resource planning

Job analysis and re-engineering

◼ Job analysis is integrative with all HR activities

◼ The class is to do this as an exercise

◼ ASSIGNMENT

◼ What is the linkage between job analysis and re-engineering efforts.

THE PROCESS OF HUMAN RESOURCE PLANNING

FORECASTS OF LABOUR DEMAND

FORECASTS OF LABOUR SURPLUS OR SHORTAGE

FORECASTS OF LABOUR SUPPLY

GOAL SETTING AND STRATEGIC PLANNING

PROGRAMME IMPLEMENTATION AND

EVALUATION

contexts of HRP◼ Organisational

◼ Job analysis, job standards, vision, strategy, etc

◼ Institutional◼ Socio-cultural: parental roles, community role in training,

values and traditions and dynamics impinging on organisations

◼ Economic: business cycle, LMKT participation

◼ Educational: supply side, quality, accreditation, etc

◼ Demographic: population attributes and distributions

◼ Political: state regulations, pressure groups

◼ Psychological: career choice

◼ Technological: influences dd for labour

RECRUITMENT

❑ OBTAINING A LARGE POOL OF CANDIDATES WHO HAVE SOMEPROBABILITY OF SUCCESS ON THE JOB

➢ DISTINCTION BETWEEN INTERNAL AND EXTERNAL SOURCES

➢ MERITS AND DEMERITS OF SOURCES

❑ RECRUITMENT METHODS AND COST

COMMON RECRUITMENT METHODS

◼ Unsolicited applications

◼ Job posting

◼ Relatives and friends

◼ Help wanted handbills and posters

◼ Advertisement: print and electronic

◼ Internet

◼ Clubs, unions and professional societies

◼ Public employment exchanges

◼ Private consultants

◼ On campus recruiting

◼ Poaching and head hunting

◼ Social media (noisy market) Twitter,Linkedln,Facebook (largest community), Instagram

RELATIONSHIP BETWEEN RECRUITMENT METHODS & COSTS

SOURCE FACTORS IN COST

Low cost Company transfers and

promotion

Pro rata share of

incurred costs

Walk in applications

Advertising Costs Advertising costs

On-campus Recruiting

and other field trips

Recruiters travel and

living expenses; adverts

costs

High cost Employment agencies

(occasionally)

Agency fees; recruiters

travel and living

expenses

SELECTION

❑ OBTAINING A SMALL POOL OF CANDIDATES WHO HAVE THE HIGHESTPROBABILITY OF SUCCESS ON THE JOB

➢ SELECTION ERROR: The probability of not selecting a good candidate or selecting a bad one

➢ SELECTION RATIO: …. The proportion of

vacancies discounted by the number of candidates recruited

General relationship between selection ratio & selection error

SCENARIO 1 2 3 4 5

Vacancies 5 5 5 5 5

Recruitment 5 10 20 50 100

Selection ratio

1:1 1:2 1:4 1:10 1:20

Selection error

Highest Lowest

A model of the employee selection process

Ap

pli

cati

on

Form

Fir

st I

nte

rvie

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Tes

ts

Sec

ond I

nte

rvie

w

Ref

eren

ce C

hec

ks

Med

ical

Exam

inat

ion

Off

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f E

mplo

ym

ent

R E J E C T I O N

Critical selection issues

❑ RELIABILITY

❑ VALIDITY

❑ FAIRNESS: AND

❑ AVAILABILITY

SUMMARY OF THE CRITICAL SELECTION ISSUES

Procedures Reliability Validity Fairness Availability

Application Forms

Challenged: Requires good draftmanship to obtain consistent results

Biodata have validity

Privacy often invaded with intimidating requirements

Most managers are able to score and interpret results

Tests Test results are often inconsistent. Test environments often differ, thus affecting results

GPA and class of degrees are valid predictors of job success

Tests need to pay attention to cultural differences for fairness.

Imported tests may not be technically available to some managers.

Interviews Mostly unreliable in terms of ratings or scores, operational procedures

Interview scores are good predictors of job success

Fairness, programming, and socials suffer

Most managers are able to interpret interview results

Reference Checks

References in essay forms are prone to inconsistent submissions. But checklists yield better reliability

Previous job behaviour is a valid predictor of on the job success

Some referees are charitable or vindictive. rights of job candidate are often violated

In the right format, references are easily available to management

Medical examination

These follow more scientific and predictable procedures

Results are relevant in most cases

practitioners are fair to job candidates

Only qualified medical personnel interprets results.

Employee socialization

◼ A workplace is a network of relationshipsamong individuals. Social interaction is at theroot of human (or industrial) experience.

◼ A new entrant into the workplace is like rawmaterial that awaits organisational mouldingor socialisation to become a full andoperational member of the group.

ORGANISATIONAL CULTURE

Schein (1991) provides a definition of organisational culture encompassing many of its central elements:

◼ Culture is a pattern of shared basic assumptions,invented, discovered or developed by a given group,as it learns to cope with its problems of externaladaptation and internal integration, that has workedwell enough to be considered valid, and, therefore, isto be taught to new members of the group as thecorrect way to perceive, think, and feel in relation tothose problems (Schein, 1991, p247).

The most common manifestations of culture

◼ Folkways. societal practices that areoftentimes taken for granted. For instance, ahandshake, There are no serious sanctionsfor breach of folkways.

◼ Mores. These are ethical issues to whichrightness or wrongness of actions depends onwho is affected or which side is making anattempt at evaluations.

◼ Rules and regulations. These refer toaccepted and expected ways of behaving in agroup or society. Unlike folkways, breach ofrules and regulations often attract societal ororganisational sanctions.

◼ ¨

◼ The myths are stories that are current inorganisations illustrating values, which arepredominant in an organisation.

◼ Symbols including logos, product design,office arrangement, the presence or absenceof personal items and office art have all beensubjects of scrutiny.

◼ Language incorporates the patterns ofspeech, common usages and discourse styles.

◼ Orientation: general introductions to enable mutual evaluation between new employee and the organisation

◼ Internship: opportunities for those currently in school to gain practical experience

◼ Traineeship: bringing new graduates for managerial positions, up to the set standards in organizations

◼ New trends of traineeship in industry and why?

Typical orientation programme

1.General introductions

a. Company history, products and competitors

b. The vision of the founding fathers

c. Mission statement and anthems

d. Specific and general cultural norms, folkways and mores

e. Some peculiar languages and terminology within the premises

f. General security matters including fire, flood and other disasters

2.Terms and conditions of employment

a. Mode and periodicity of payment

b. Benefits and explanations for differentials

c. Entitlements for toilets, canteen, lunch subsidy, medical bills

d. Clarifications on merit or pay-for-performance schemes, bonus, profit sharing and commissions

e. Procedures for loans, and other entitlements

3. Labour Relations and Employee Discipline

a. Behaviours describing insubordination, theft, fighting, unruly behaviour

and the corresponding sanctions

b. Behaviours worthy of commendation as positive incidents

c. Grievance procedures

4. Career management

a. Procedure for mentoring and on-the-job training

b. Procedure for performance evaluation and management

c. Use of seniority and promotion systems

5. Induction (Job Specific Training)

a. Reporting system for main duties

b. Job description

c. Job standards and standard (target-setting) process

d. Equipment and minor repairs

e. Security consciousness on the job

f. Waste prevention and productivity issues

Transfers

These are of the production or personnel types. Theformer is a form of structural adjustment ofbalancing areas of short by taking from areas ofsurplus to meet production exigencies. The latterinvolves a rigid system of job rotation to forcepeople to change their jobs regardless of theirfeelings in the matter. In permanent personneltransfers, the employee normally receives the rate ofpay on the job to which he is transferred. Inproduction transfers, it is usual to pay the rate of theregular job or that of the new job whichever ishigher. Employees may be relocated within anintegrated system of career or occupationalmanagement on account of manifest changes inaptitudes, interests, competence or historicalperformance levels.

SUCCESSION PLANNING

Effective succession planning is contingent on:

❑ Effective recruitment, selection and placement policy

❑ Open and objective performance appraisal systems

❑ Performance related reward system

❑ Documentation and operation of development lists

DEVELOPMENT LIST A

❑ VERY GOOD OR EXCELLENT FOR 3 YEARS

❑ NOT MORE THAN 45 YEARS OLD

❑ DEMONSTRATED POTENTIAL FOR HIGHER LEVEL RESPONSIBILITY WITHIN THE NEXT FIVE YEARS

DEVELOPMENT LIST B

❑ VERY GOOD OR EXCELLENT FOR AT LEAST 2 YEARS CONSECUTIVELY

❑ NOT MORE THAN 40 YEARS OF AGE

❑ DEMONSTRATED POTENTIAL TO OPERATE AT SENIOR MANAGEMENT LEVEL WITHIN THE NEXT FIVE YEARS

DEVELOPMENT LIST C

❑ VERY GOOD OR EXCELLENT FOR AT LEAST 2 YEARS CONSECUTIVELY

❑ NOT MORE THAN 35 YEARS OF AGE

❑ DEMONSTRATED POTENTIAL TO PERFORM WELL IN MIDDLE MANAGEMENT GRADES IN THE NEXT FIVE YEARS

ESTIMATION OF POTENTIALS❑ CLARITY OF PURPOSE

❑ PRACTICAL CREATIVITY

❑ OBJECTIVE ANALYTICAL POWER

❑ EXTERNAL ORIENTIATION

❑ ENTERPRENEURIAL DRIVE

❑ LEADERSHIP OF TEAMS

❑ LEADERSHIP OF INDIVIDUALS

❑ ADAPTIVE INFLUENCE SKILLS

❑ SELF CONFIDENT INTEGRITY

❑ TEAM COMMITMENT

❑ LEARNING FROM EXPERIENCE

SUCCESSION PLANNING CHALLENGES

❑ CAREER PLANNING AND PROGRESSION

❑ THE CHOICE OF A MENTOR

❑ MAINTAINING PROFESSIONALISM IN A REGIME OF UNCERTAINTIES

❑ SUCCESSION CRISES AND CAREER COUNSELLING

❑ COMPETENCES VS. QUALIFICATIONS

❑ UNCO-OPERATIVE SUPERVISOR

Case Studies 1Rob Parson at Morgan Stanley

Discussion question

SHOULD PAUL NASR RECOMMEND ROB PARSON FOR PROMOTION?

YES

NO