8-1McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Managing Human Resources

BBITJan 2015

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Learning Outcomes

• Describe the basic steps involved in HR planning

• Explain how companies use recruiting to find qualified job applicants

• Describe the selection techniques and procedures that companies use

• Describe how to determine training needs and select the appropriate training methods

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Learning Outcomes

• Discuss how to use performance appraisal to give meaningful feedback

• Describe basic compensation strategies and explain how they affect HR practices

• Discuss the four kinds of employee separations

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Determining Human Resources Needs

• Should we hire more workers?• Should we increase staff salary?• What kinds of training do we need for our new

staff? What’s the best way to deliver them?

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HR Process

• Determining HR Need-HR Planning• Attracting Qualified Employees-Recruiting &

Selection• Developing Qualified Employees-Training &

Performance Appraisal• Keeping Qualified Employees-Compensation &

Employee Separation

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HR Planning

• Forecasting Demand and Supply• HR Information Systems

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Forecasting Demand & Supply

• Internal Factors- New Positions- New Equipment- Terminations/Retirements- Turnover- Promotions

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Forecasting Demand & Supply

• External Factors-Demographic Labor -Shift from manufacturing based to service

based-Unemployment rates-Labor Unions-Availability of applicants with specific skills-Technological advances

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HR Information Systems (HRISs)

Computerised systems for gathering, analysing, storing and disseminating information related to attracting, developing and keeping and qualified workforce.

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Common Data in HRIS

• Personal Data• Work History• Performance Appraisal• Promotion Data• Educational Data• Company Employment History

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Recruiting

The process of developing a pool of qualified job applicants; internal and external.

-Job Analysis-Job Description-Job Specifications

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Selection

The process of gathering information about job applicants to decide who should be offered a job.-Applications Forms and Resumes/CV-References and Background Checks-Selection Tests; aptitude test, assessment centre-Interviews

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Training and Development

Developing the skills, experience and knowledge employees need to perform their jobs or improve their performance-Training Needs Analysis-Training Methods-Evaluations

8-14McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.

MANAGING EMPLOYEES

PERFORMANCE

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Introduction

Performance Management

Processes used to identify, encourage, measure, evaluate,

improve, and reward employee

performance

Performance Appraisal

The process of evaluating how well employees perform their jobs and then communicating that information to the

employees

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Uses of Performance Appraisals

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Methods for Appraising Performance

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Comparative Methods

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Forced Distribution on a Bell-Shaped Curve

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Category Rating Methods

Graphic Rating Scale

• Lists traits and provides a rating scale for each trait.

Checklists

• Uses a list of statements or work behaviors that are checked by raters.

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Example of a Graphic Rating Scale

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Narrative Methods

Critical-Incident Method

• Based on managers’ records of specific examples of the employee acting in ways that are either effective or ineffective.

Essay Method

• Manager writes a short essay describing an employee’s performance.

FieldReview

• Outside reviewer interviews the manager about the performance of each employee and develops a rating for the employees from the interview notes.

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Behavioral Observation Scale (BOS)

• The manager rates the frequency with which the employee has exhibited the behavior during the rating period.

Behavioral/Objective Methods

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Example of a Behavioral Observation Scale (BOS)

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Management by Objectives (MBO)

•Specifying the performance goals that an individual and his manager agree to try to attain within an appropriate length of time.

•These goals become the standards for evaluating each employee’s performance.

Behavioral/Objective Methods

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Management by Objectives – Two Objectives for a Bank

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Who Conducts Appraisals? Manager and/or Supervisor

– Appraisal done by an employee’s manager and reviewed by a manager one level higher.

Self-Appraisal – Appraisal done by the employee being evaluated, generally on an appraisal

form completed by the employee prior to the performance interview.

Subordinate Appraisal– Appraisal of a superior by an employee.

Peer Appraisal– Appraisal by fellow employees, compiled into a single profile for use in an

interview conducted by the employee’s manager.

Team Appraisal– Appraisal to evaluate the performance of the team as a whole.

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Supervisory Ratings of Subordinates

Traditional Performance

Appraisal Process

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Multisource / 360 Degree

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Common Rater Errors

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Giving Performance Feedback

Scheduling Performance Feedback

– Performance feedback should be regular.

– Employees should receive feedback so often that they know what the manager will say during their annual performance review.

Preparing for a Feedback Session

– Managers should be prepared for each formal feedback session.

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Giving Performance Feedback [continued]

Conducting the Feedback Session

1.“Tell-and-Sell” – managers tell employees their ratings and then justify those ratings.

2.“Tell-and-Listen” – managers tell employees their ratings and then let the employees explain their side of the story.

3.“Problem-Solving” – managers and employees work together to solve performance problems.

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Hints for Delivering an Effective performance Appraisal

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SOURCES OF INEFFECTIVE PERFORMANCE

• Organisation Policies & Practices• Personal Problems• Job Concerns• External Factors

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• Possible Courses of Action– Provide training to increase skills and abilities– Transfer employee to another job or department– Attention of actions to motivate employee– Take disciplinary action– Discharge the employee

Managing Ineffective Performance