Human Resource Management (HRM)

Chap5HumanResourceMgt
HUMAN RESOURCE MANAGEMENT (HRM)

Our people are our most important assets Human resource management process means all activities needed for staffing the organization and sustaining high employee performance.
HR Planning E N V I R O N M E N T
Recruitment
Selection
De-cruitment
Identify & Select Competent People
Orientation
Training
Adapted and Competent employees with up to date skills & knowledge
Performance Appraisal
Career Development
Satisfy Labor-Mgt. Relations
The HRM Process
Competent & high performing employee able to sustain performance

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Environmental considerations Managers decision in HRM influenced dictated by govt. policies, society pressures, laws. Laborunion employment collective define bargaining recruitment
contract
sources, criteria for hiring, promotions, layoffs, training eligibility, disciplinary practices (need good labour mgt. relations) Govt. laws and regulations on Safety and Health at Workplace (OSHA 1994), Environmental Act Employment Act Working hours, overtime payment [Compensation] Industrial disputes discipline, Constructive dismissal etc. Sexual harassment new issue.
HUMAN RESOURCE PLANNING

Process by which mgt. ensures that it has right people (number, kinds) in right place at right time that can effectively & efficiently conduct tasks to meet companys obj. 2 steps (i) (ii) assess current HR level assess future HR needs and develop program to meet needs
Step 1 Current assessment Generate human resource inventory (computer database) name, educ, train, skills, etc. everyone. Job analysis defines jobs and behaviors necessary to perform those jobs - What minimum knowledge for duties of Prod. Supervisor, Purchasing Clerk - Observing, interview, questionnaire, or record daily activities to find out content Information from job analysis prepare job description + job. Spec. Job description job content, what job holder does, how its done, why its done FOCUS ON THE JOB Job specification FOCUS ON PERSON states minimum qualification, skills, abilities needed to do job effectively need job description + job spec for recruitment and selecting
Step 2 Meeting Future HR Needs depend on organizations goals + strategies demand of employees dependent on demand for products/services establish number and mix of HR needed to reach estimated company revenues + other criterias (technology, new products, globalisation etc.) after assessing current capabilities and future needs, can estimate shortages (number, type) balance needs and availability
RECRUITMENT AND DE-CRUITMENT
Recruitment - process of locating, identifying and attracting capable applicants If surplus of staff, de-cruitment techniques for reducing labor-supply within org.
Recruitment Source internal search, adverts, public and private employment agencies, university placement word of mouth, personal reference, and Internet Supply of workers local, national international Type of job or level national search Large organization easier to recruit job applicants prestige
Do certain sources of recruitment produce superior candidates? Generally stake Yes employee referrals recommend by employees nest, reputation at
SELECTION
Process of screening job applicants Prediction that person selected able to perform take risks Selection devices (tools) must be valid and high reliability Types of Selection Devices Application Form Written Tests Performance Simulation Tests (do actual job) Interviews Background investigation (verify application data and reference) Physical Examination
Suggestions for Interviewing 1. 2. 3. 4. Structure a fixed set of questions for all applicants Have detailed info. About the job that applicants are interviewing for Minimize any prior knowledge of applicants background, interests, test scores Ask behavioral questions that require applicants to give detailed accounts of actual job behaviors 5. 6. 7. Use standard evaluation form Take notes during interview Avoid short interviews that encourage premature decision making
ORIENTATION
Introduction to company familiarize people, job, surroundings, work-unit Specific duties & responsibilities, performance evaluated how
Work-unit-goals of dept., how job fits with whole work-unit (dept.) introduce to colleagues/ co-workers Company org. objectives, history, philosophy, procedures, rules incl. Personnel policies & benefits, work hours, pay procedures, O/T requirements, tour of work areas/facilities Large company formal orientation film/video about MNC, HR Dept organize Informal smaller companies Outsider insider transition must be made smoothly, new member feel comfortable well adjusted, can perform
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EMPLOYEE TRAINING
maintain & improve job performance update, upgrade, knowledge learn new skills, re-learn old knowledge or modify skills Skill categories Technical Interpersonal Problem Solving Technical (all levels) Computer e-mail New Technology More Complex UTM e-learning (WebCT, DPMS) Better Listener, Communicator Good PR Reduce Conflict Skills at defining prob. Find causes develop alternaties, select solution creativity Lateral Thinking
Interpersonal
Prob. Solving
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Training Methods
On the-job training
Job Rotation Lateral transfers allowing employees to work at different jobs. Provides exposure to a variety of tasks Understudy assignments working with a seasoned veteran, coach, mentor. Provides support, encouragement from experienced person. Trades industry - apprenticeship
Off-the-job
Classroom lectures lectures designed to convey specific technical, interpersonal, or problem solving skills Films and videos- using media to demonstrate technical skills not easily presented by other methods Simulation exercises actually performing work (or simulate), case analysis, experiential exercises, roleplaying
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EMPLOYEE PERFORMANCE MEASUREMENT Managers need to know employees performance whether effective and efficient or need improvement Performance Measurement System A process of establishing performance standards and appraising performance in order to arrive at objective human resource decisions as well as provide documentations to support those decisions
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Performance Appraisal Methods

Method Written essay Adv. Simple to use Disadv. More of writing ability than employees actual performance Critical incidents Rich examples; behaviorally based Graphic rating scales BARS less time-consuming than others Focus on specific and measurable job behaviors Multiperson comparisons MBO (Mgt by Obj) 360 degree appraisal Compares employees with one another Focus on end goals; results oriented Thorough Time consuming Unwieldy with large number of employees Time consuming Time-consuming; difficult to develop Time-consuming; lack quantification job behavior assessed
Provide quantitative data; Do not provide depth of
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COMPENSATION AND BENEFITS

Developing an effective and efficient system of employee rewards is important part of HRM process Purpose to attract and retain competent and talented employees
Different types compensation Base wages + salaries Wage/salary add ons (Allowance etc) Incentive Payments Fringe Benefits
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Factors Influencing Compensation/Benefit How does management determine who gets RM5.00 an hour and who gets RM2,500/month? Primary determinant ~ kind of job employee performs kind and level of skills pay according to skills knowledge
Size of Company Company Profitability Geographic Location Management Philosophy
Employees tenure and performance Kind of job
LEVEL OF COMPENSTN & BENEFITS
Kind of business/ organization Unionization
Labor or Capital Intensive
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CAREER DEVELOPMENT
Define career sequence of positions occupied by a person during course of a lifetime. Career means also profession Professional development Applies to unskilled, skilled, managers
engineers, lecturers, accountants, ALL
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The Way it Was

Dramatic changes in concept of career dev (CD) CD programs designed to help employees advance their work lives within a specific company/org Provide info, assessment, & training to help realize their goals - and a way of attracting, retain highly talented people But, these purposes have disappeared Downsizing, restructuring, other organizational adjustments have led to one significant conclusion: The individual not the organization is responsible for his or her career. You must take responsibility in designing, guiding, and developing own career. You manage yourself
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You and Your Career Today

First career decision career choice Offers best match between what you want out of life and your interests, abilities, market opportunities Good choice results in series of positions that leads to being good performer, make you want to maintain your commitment to your career, and give you proper balance between work and personal life
Top 10 Important Job Factors for College Graduates - USA

1996, p.21) (V.Frazee, Personnel Journal, July
1. Enjoy what they do
2. Opportunity to use skills and abilities 3. Opportunity for 8. Job location personal development 4. Feeling what they do 9. Lots of money matters 5. Benefits 10. Working on teams (ranked in order of importance)
6. Recognition for good performance 7. Friendly co-workers
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Successful Management Career

Suggestions for successful career
Develop a Network Continue Upgrading Your Skills Consider Lateral Career Moves Stay Mobile Support Your Boss Find a Mentor Dont Stay Long in Your First Job Stay Visible Gain control of Organizational Resources Learn the Power Structure Present Right Image Do Good Work Select Your First Job Judiciously
Take active role in managing your career, work life can be more exciting, enjoyable, and satisfying
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Chap5HumanResourceMgt

HUMAN RESOURCE MANAGEMENT (HRM)

Identify & Select Competent People

Adapted and Competent employees with up to date skills & knowledge

Satisfy Labor-Mgt. Relations

The HRM Process

Competent & high performing employee able to sustain performance

HUMAN RESOURCE PLANNING

RECRUITMENT AND DE-CRUITMENT

Performance Appraisal Methods

Provide quantitative data; Do not provide depth of

COMPENSATION AND BENEFITS

Size of Company Company Profitability Geographic Location Management Philosophy

Employees tenure and performance Kind of job

LEVEL OF COMPENSTN & BENEFITS

Kind of business/ organization Unionization

Labor or Capital Intensive

engineers, lecturers, accountants, ALL

The Way it Was

You and Your Career Today

Top 10 Important Job Factors for College Graduates - USA

1. Enjoy what they do

6. Recognition for good performance 7. Friendly co-workers

Successful Management Career

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