Human resource management!

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Introduction to Human Resource Management A. Why HRM is important to all managers ? ! Business success lies in controlling the scarcest of resources : human intelligence ! Authority will be increasingly challenged B. HRM trends Some key challenges : ! demographics (talent shortage, ageing population, changing family patterns, diversity) ! economics (health costs, retirement costs, demand for qualied workers, M&As) ! globalisation (off shoring, uniformisation of labour standards, CSR & NGO, safety & security) ! technology (knowledge management, eLearning, protection of intangible assets) C. Strategic Human Resource Management

Analysing work & designing jobs A. Job Analysis ! systematic gathering and organization of information concerning jobs : tasks / duties / responsibility You do this job analysis with : questionnaires, interviews, direct observation, and logs or diaries. The uses of job analysis : legal, recruiting, selection, performance, compensation, training, career dvpt. B. Job description ! document that identies and denes a job in terms of its tasks, duties, responsibilities, working conditions, specications. - Identication information : non-discrimination / up-dated / agreed - Job summary - Job duties and responsibilities - Job specications and qualications C. Types of employment Standard contract / Flexible contract

Florent Malbranche !

EDHEC BUSINESS SCHOOL 2010/1011

Human resource management!

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Training & Employee Development Training = process of providing employees with specic skills or knowledge in order to help them to improve their job efciency and their performance. Development = providing employees with the abilities the organisation will need in the future and preparing them for future tasks and responsibilities. The training process Assessment phase ! Organisational analysis
Key components (strat., vision, competencies)

Job analysis
determine KSA

Individual analysis
Assessement of performance and compliance

Types of training skills, retraining, cross-functional, team, creativity, literacy, diversity, crisis. ! Then, make a training evaluation. The employee development Characteristics : - on going process - in line with company goals - related to workforce planning - related to business model - linked with business development - meeting individual career needs The career development process Assessment phase ! Organisational analysis
Business Model (future) SWOT Analysis (HR) Assessing gaps

Individual assessment
Self assessment, tests, performance, succession planning, promotability.

The ROI of training : how to measure what can hardly be measured Measure : satisfaction / complaints / organisational behaviour / employee behaviour / innovation / creativity / customer / human capital BUT : ROI issues ! conservative approach ! caution when comparing ROI in training with other nancial returns ! not use ROI on every program ! etc

Florent Malbranche !

EDHEC BUSINESS SCHOOL 2010/1011

Human resource management!

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Coaching, careers, and talent management Mentoring = advising, counselling, guiding. Coaching = educating, instructing, training. A career = occupational positions a person has had over many years. Career management = process of enabling employees to better understand and develop their career skills ad interests and to use them most effectively within the company and after they leave it. Talent management = process of planning, recruiting, developing, managing and compensating employees throughout the organization. Career stages : - growth stage - exploration stage - establishment stage (trial sub-stage / stabilization sub-stage / midcareer crisis sub-stage) - maintenance stage - decline stage

Performance management and appraisal Performance appraisal : ! evaluation of employees' performance based on certain standards. SMART Objectives = Specic, Measurable, Attainable, Realistic, Timely. Why performance appraisal ? : pay & promotion / correction / career planning Steps : - Dene job & performance criteria - Compare actual performance to the standards - Feedback But (issues) : unclear, bias, central tendency halo effect To do an effective PA : know the issues, use the right appraisal tools, keep a diary, get agreement on plan, be fair. Performance management : ! continuous process of identifying, measuring, and developing the performance of employees / teams, and align their performance with the overall strategy of the organization. PM = goal-directed. it is continuous (daily or weekly). Why performance management ? : total quality, appraisal issues, strategic planning.

Florent Malbranche !

EDHEC BUSINESS SCHOOL 2010/1011

Human resource management!

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Personnel Planning and Forecasting Employment or personnel planning = process of deciding what positions the rm will have to to ll, and how to ll them ? Succession planning = process of deciding how to ll the company's most important executive jobs. ! Must forecast : overall personnel needs / supply of inside candidates / supply of outside candidates But : drawbacks to this traditional method : - focus on projections and historical relationships - do not consider the impact of strategic initiatives - "bake in" the idea that staff increases are inevitable

Recruitment The importance of recruiting ! depends a lot of the supply of workers. External factors affecting recruiting : - supply of workers - outsourcing of white-collar jobs - fewer "qualied" candidates The recruitment depends on the overall strategy of the rm (see examples). Need to measure the recruiting effectiveness : - overall program (number of qualied applicants, percentage of jobs lled) - specic recruitment efforts (acceptance by source, turnover by source, results by source)

Internal sources of candidates :

Techniques of internal recruiting : - job posting - succession planning Hiring former employees : - Advantages : known quantities, familiar with organization, useful skills acquired. - Drawbacks : negative attitude, perceived as a good way to get ahead.

Florent Malbranche !

EDHEC BUSINESS SCHOOL 2010/1011

Human resource management!

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Outside sources of candidates : - Choosing the media : selection of the best medium depends on the position for which the rm is recruiting. - Constructing effective ads : create attention, interest, desire. Create a positive impression of the rm ! AIDA : Awareness + Interest + Desire + Action

Recruiting part-time workers:

Personnel selection

You can use work sampling : ! see how candidate actually performs some of the job's basic tasks. ! tends to be fairer and to exhibit better validity than paper and pencil tests. ! the next step is to test applicants on specic tasks. About testing concepts : ! Reliability : are the results stable over time ? ! Validity : does the test actually measure what is intended to measure ? Major types of tests : Basic skills tests, job skills tests, psycho tests Why use testing ? increased work demand, screen out bas employees, reduce turnover by personality proling. ! Development of honesty testing programs ( = antitheft screening procedure )
Florent Malbranche ! EDHEC BUSINESS SCHOOL 2010/1011

Human resource management!

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The selection interview

Three main types of interviews : !

Interview content :

How to design and conduct an effective interview ? Step 1 : analyse the job Step 2 : Rate the job's main duties Step 3 : Decide on interview format + questions Step 4 : Create benchmark answers Step 5 : appoint the interview panel For interviewees : remember that appearance and enthusiasm are important / think before answering.

Introduction to compensation Some compensation terms : Pay for performance / for seniority / salary compensation / equity Equity theory : People are satised if the ratio of their efforts to rewards are comparable to the ratio of effort to rewards of their "comparison other". ! People who feel under-rewarded generally are "dissatised". Four forms of equity : external equity / internal equity / individual equity / procedural equity Establishing pay rates : About job evaluation : two methods : - ranking : ranking each job relatively to all other jobs usually on some overall factor. -point method : a quantitative technique that involves identifying the degree to which each compensable factor is present in the job, awarding points for each degree of each factor, calculating a total point value for the job by adding up the corresponding points for each factor.
Florent Malbranche ! EDHEC BUSINESS SCHOOL 2010/1011

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An other method : competency-based pay : ! paying for the employee's range, depth, and types of skilles and knowledge, rather than for the job title ho or she holds. It is : -a system that denes specic skills - a process for typing the person's pay to his or her skills - a training system that lets employees seek and acquire skills - a work design that lets employees move among jobs to permit work assignment exibility

Pay for performance and nancial incentives Incentives = nancial rewards paid o workers whose production exceeds a predetermined standard Linking pay and performance = understanding the motivational bases of incentive plans The origin of incentive pay = Frederick Taylor (the worker is paid a sum for each unit he produces). Maslow's hierarchy of needs : ! People are motivated rst to satisfy each loer-order need and then, in sequence, each of the higher level needs. Modern application of Need Theory : Not all people are motivated the same way by money (other motivations : challenging work, social needs, status and recognition).

Herzberg's Theory : - Hygiene ! satisfy lower lever need (working conditions, salary) - Motivators ! satisfy higher level needs (job enrichment, recognition, feedback, achievement) - Premise ! the best way to motivate someone is to organise the job so that doing it provides feedback and challenge that helps satisfy the person's higher level needs. Victor Vroom's expectancy theory : Motivation is a function of : - expectancy (effort will lead to performance) - instrumentality (connection between performance and appropriate reward) - valence (the value the person places on the reward) ! pay for performance must be properly communicated. Reinforcement theory : BF Skinner : Behaviour that leads to a positive consequence tends to be repeated. Behaviour can be changed by providing properly scheduled rewards Best reinforcement schedules are rewards and variable ratios.
Florent Malbranche ! EDHEC BUSINESS SCHOOL 2010/1011

Human resource management!

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Florent Malbranche !

EDHEC BUSINESS SCHOOL 2010/1011