HRM533 - Introduction To Human Resource Management

INTRODUCTION TO
HUMAN RESOURCES
MANAGEMENT
INSTITUT PERKEMBANGAN PENDIDIKAN (lnED)

UNIVERSm TEKNOLOGI MARA
40450 SHAH ALAM
INTRODUCTION TO
HUMAN RESOURCES
MANAGEMENT
(HRM 533)
UNIYERSITI
TEKNOLOGI
MARA
PUSAT PERKEMBANGAN PENDIDIKAN

UNIVERSITI TEKNOLOGI MARA
40450 SHAH ALAM
A CONCEPTUAL MODEL TO INTRODUCTION TO HUMAN RESOURCE MANAGEMENT.

PART I
Introduction to HRM -An overvie

Chapter One
Human Resource Management
The Historical Development of HRM
Challenges of HRM in the new millenium.
Environmental Influences
Chapter Two
KeyHR
Environmental Challenges
Internal Environment
Rapid Change
The Globalization Era
The Internet Revolution
Workforce Diversity
Legislation
Skill Shortages and The
Rise of The SeNice Sector
Implementation of
Strategic HR policies
Challenges
Human Resources Functions/Activities

PART2
PART3
PART4
PARTS
Acquiring
Human Resources
Developing Human
Resources
Rewarding Human
Resources
Maintaining -
Chapter 12:
Compensation
Chapter 3:
Chapter 7:
Job Analysis &

Design
Significance of
Culture & Orientation
Chapter 4:
HRP
Chapter 8:
Training &
Development
Chapter 5:
Recruitment
Chapter 6:
Selection
Chapter 9:
Career planning &
Development
Chapter 10:
Performance
Appraisal
Chapter 11:
Managing Employee
discipline
PARTS
Chapter 16:
Human Resource Research
Objectives
Contribution (s)
Process and methods
Chapter 13:
Benefits
Protecting Human
Resources
Chapter 14:
Safety & Health
Chapter 15:
Labor Relations &
Collective Bargaining.
A 'Venture' into HR in the new millenium

Human resource management is a process that looks into the relationships of people in the work place.
lt is also considered to be the process of helping people to achieve their goals/needs from the \VOrk
they do and also helping the organization to set the best out of the individuals they employ.
This HRM 533 module will bring you into the world ofHuman Resource Management. It will expvse
you to what it takes to become a good manager in managing your employees effectively. At the same
time this module will make you understand and appreciate hO\V interesting the subject HRM is and it
will show you how important HRM is in managing your organization effectively.
.
This module is designed to introduce to you the many facets ofHRM activities vital to an
organization's success. Reading tl1is module will make you understand and become a better manager
regardless of the fields that you will venture into. Happy Reading!.
Module Objectives
This module is designed to:
I.
Enable you to indulge in an introductory study of human resource management.
2.
Help you to explore current topics, functions ofHRM which are practiced in many
organizations
3.
Guide you to understand the impact ofHR practices and functions to employees and to the
organization as a whole
4.
Encourage you to develop human relations skills in HR decisions that may enhance
organizational performance as \Veil as human development
5.
Help you to explore tl1e various options in the field ofHR and Industrial Relations (IR) that
may be of interest to you in planning for your future career.
Planning Your Study

This module will require you to participate actively in the discussion questions column and to
complete assignments required by your seminar and learning facilitators. You are aJso advised to
attend seminars (5) meetings as scheduled. The purpose of the seminar is to give you the
opportunities to clarify points or doubts that you may have about the topics presented in this m9dule.
You are also required to communicate via the net with your learning facilitators about any topics or
questions that you may have about the module. TI1e net wi11 also allow you to interact with other
students taking the same subject from other Jocations. This will enhance your thinking ski11s
communication skills as \veU as developing professional relationships.
A recommended study plan is provided on the next page.
Recommended Study Plan

Week
Chapter
(Module)
Reading
Assignment
Scheduled meeting
with lecturer
Hours of
Study
(For Practice)
1
Case 1
Seminar 1
(distributed by
Seminar
Facilitator SF)
Case2
(distributed by
SF)
Seminar 2
-Assignment 1
question will be
distributed
Discussion of
questions
(chapters 1 ,2,3,4)
Assignment 1
2
4
will be due
Assignment 2
question
distributed
2
4
Discussion of
questions
(Chaps 5,6,7,8)
Case 3
10
11
(distributed by
SF)
Assignment 2 will
be due
Assignment 3
question is
distributed
12
Seminar3
10
13
11
14
15
12
Discussion of
past year
questions
16
Discussion on
questions (Chaps
9,10,11,12)
Assignment 3 will
be due
Discussion on
questions from
(Chaps 13,14,15,16.)
Seminar4
2
2
6
2
..
-13
14
Seminar 5
Discussion of
Final Exam
questions
Follow up
Evaluation
Coursework
grade distribution
Note:
If you look at the study plan, you will notice that a consistent study habit is required out of
you. Stay in touch with your lecn.~rer and colleagues. Don't leave things ti/1 the end!
Reference
This module should be supplemented with the reading ofthe following recommended text:
Dessler, Gary, Human Resource Management. Prentice Hall, New Jersey, gm edition, 2000.
PROGRAMME MAP
MGT 160
Fundamentals of
Management
MGT 318
Organizational
Behavior
MGT370
Human Resource
Management &
Industrial
Relations
MGT 375
Operations
Management
MGT360
Internal Business
BACHELOR OF
BUSINESS
ADMINISTRATION
BACHELOR OF
BUSINESS
ADMINISTRATION
(Markelinol
PART1 &2
PART3&4
MGT 420
lntro. To Management &
practices
. (Application of
management concepts
& principle to Business
Organizations)
HRM 533
(lntro. to HR)
So are you ready to take on the challenge of HRM?

The arrival of the new milJenium has shown us many changes taking place. As a result of those
changes, companies have to compete and meet v..-ith many business chalJenges. To be able to meet
\Vith these challenges~ companies have to manage their employees/people effectively. Regardless of
size or type of business, people really are the most important asset of any organization. Therefore, to
take good care of the employees, the role of human resource management in an organization wi11 be at
its center stage.
Organization of this module

The Introduction to HRJVI (HRM 533) module will examine and bring fonvard both the theoretical
and practical aspects ofHR.J\1. Here, HRM is vie\ved as relevant to managers regardless of levels and
what business they are in. This is because managers are constantly facing with HRM issues and
chaiJenges as weJI as decision making. Due to this fact, every manager must be a HR manager who
can efficiently apply HRM concepts, proceedings, models, tools and techniques.
This module wilJ focus its-attention to HRM functions and activities that can be appiied in the real
work setting. lt is specifically designed to make it easy for you to learn the basics of HR practices and
its concepts as they relate to today's organization.
The module wil1 be divided into six parts which are further broken down into several chapters (16
chapters). Each of the chapter will be discussing issues pertaining to HR which will be relevant to
creating a competitive organization. Each chapter will begin with learning objectives. This wi1l
enable you to know \vhat to expect after reading a chapter. At the end of each chapter, there jc:- :t
summary of the key concepts discussed in the text. Key terms will be highlighted to assist readers in
their review. A section on questions for discussion is also included.
The module is also designed in a manner that will help focus your study, explore topics and enhance
your comprehension oftl1e HR field. Several icons are employed to help you use the module
effectively
Pertorm activities
Stop and think
Questions which are representatives of the exam
UJeck/ist
Important points which act as a checklist
As mentionedo the module will be divided into six parts:
PART I
Introduction to HRM- An overview

PART 2
Human Resource Functions/Activities

Acquiring Human Resources
PART3
Developing Human Resources
PART4
Rewarding Human Resource
PARTS
Maintaining & Protection of HR.
PART6:
The first part of the module will give an overview ofHRM and some of the prominent challenges in
HR which companies have to deal with. This part also covers topics on environmental influe!es:
intemal and external, that play a major role in influencing companies decision on HR issues.
Part two. three, four and five discuss \vays and means of acquiring HR issues on rewarding their
employees and maintaining a healthy and safe environment for their employees as well as developing
a good and harmonious labor relations. A special topic, part six wilJ address current issues in HR
under the topic HR Research.
A summary of the conceptual framework for this module is shown on the next page.
A CONCEPTUAL MODEL TO INTRODUCTION TO HUMAN RESOURCE MANAGEMENT.

PART I
Introduction to HRM -An Overvie

Chapter One
The Historical Development of HRM
Challenges of HRM in the new mitlenium.
Chapter Two
KeyHR
Challenges
Rapid Change
Workforce Diversity
Legislation
Skill Shortages and The
Rise of The Service Sector
Implementation of
Strategic HR policies
Human Resources Functions/Activities

PART 2.
PART3
PART4
PARTS
Acquiring
Developing Human
Human Resources
Resources
Rewarding Human
Resources
Protecting Human
Chapter 3:
Chapter 7:
Job Analysis &

Design
Significance of
Culture & Orientation
MaintainingResources
Chapter 12:
Compensation
Chapter 14:
Safety & Health
Chapter 4:
Chapter 8:
Chapter 13:
Chapter 15:
HRP
Training &
Development
Benefits
Labor Relations &

Collective Bargaining.
Chapter 5:
Recruitment
Chapter 9:
Chapter 6:
Career planning &

Development
Selection
Chapter 10:
Performance
Appraisal
Chapter 11:
Managing Employee
discipline
PARTS
Chapter 16:
Objectives
Contribution (s)
Process and methods
Assessment
A.
Assessment for HRJ\.1 533 are as follows:

1.
2.
Continuous Assessment
TEST I
Chapters determined
by Seminar Facilitator SF
10%
TEST2
Chapters determined by SF
15%
Individual Assignment
10%
Group Assignment
10%
Participation/Attendance/
Discussion during Seminar
Meetings
5%
Total
50%
Final Examination
Grand Total
B.
100%
The details of the continuous assessment are as follows:

I.
Tests
Both test I and 2 may comprise of three (3) sections, that is:
Section A
Section B
Section C
20 Tme/False questions
20 multiple choice questions
3 long essay questions (5 options given)
20mks
20mks
60mks
All Essay questions, OR, answer 4 out of 6 questions, each carries 25 marks, totaling
I 00 marks (25 X 4).
2.
Final Examinations
Final examination wi11 comprise of 6 essay questions, of which students are required
to answer four. Each question carries 25 marks.
3.
Individual Assignment (HRJ\1 533)

Recommended topics:
1.
2.
How the internet fi.tels globnlization and its effects on HR practices.

Discuss the concept of virtual organizations and virtual teams.
3.
Discuss the 360% appraisal system.
4.
5.
What is meant by HRM?

Glass-ceiling and the situation in Malaysia
6.
Compensation in High tech industries
7.
Challenges in HR environment
8.
Test as an important tool for selection. Discuss.
9.
I 0.
II.
12.
13.
14.
Training a global workforce.

Progressive Discipline.
Outplacement as a global HR management practice.
Cultural sensitivity in the appraisal inten'iew
Male versus female communication style
Col1ective bargaining process in Malaysia.
Requirement of project/Assignment [Individual & Group)

I.
The report/assignment mnst be typed-written
2.
The length of the report should not be more than 6 pages long.
3.
Submission of assignment:
Assignment I
Seminar 2 (Refer to schedule)
Assignment 2
Seminar 3 (Refer to schedule)
Assignment 3 - Seminar 4 (Refer to schedule).

4.
Groups for projects/Assignments must comprise of 4 persons based on the

students' own selection. Topics for the assignment will be determined by the
Learning Facilitator or Seminar Facilitator.
INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT
The importance ofHR issues for managers and organizations is emergent in our everyday
life. This is indicated by frequent headlines in medias such as reports on downsizing,
workface shortages, sexual harassment, union activity and many other topics. Thus the
management of human resources is growing in impact throughout the wor1d.
Many organizations even individuals are

affected by HR issues and consequently should
be well equipped with the lmow!edge of how to
deal with the HR issues effectively. This is
because every manager's HR actions and
practices wi11 have a major impact on
organization's performance. In particular, this
chapter will discuss 5 main issues. Look at the
overview map below.
Introduction
toHRM
IDefinition I
-Importance of HRM
-Historical Development of HRM
- Main Functions of HRM
- Challenges of HRM
HRM533
Introduction to HRM
Table of Contents
INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
Table of Contents
Learning Objectives
Introduction To Human Resource Management- An Overview
1.1
4
4
Definition
Steps in providing for Human Resources
1.2
The Historical Development of Human Relations
The Scientific Management
Human Relations
Human Resources (HR)
Strategic Human Resource Management
6
6
6
7
8
1.3
The Main Functions of Human Resource Management
Recruitment and HRP
Selection
Training and Development
Perfonnance Evaluation I Appraisal
Safety and Health
Employee Benefits and Compensation
lndusrrial Relations
9
9
12
13
1.4
ChaJienges of Human Resource Management in the new mil1ennium
Globalization
New Technological Advances
Change
16
16
17
17
Summary
18
Key Terms For Review
21
Discussion Questions
21
Learning Objectives
Upon completion of this chapter, you should able to:-
Define human resource management.
Explain how Human Resource Management influence an organization's perforinance.
Explain the historical development of Human Resource Management.
Describe the main functions of Human Resource Management and their processes.
14
15
15
15
Introduction
toHRM
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Introduction To Human Resource Management -An Overview
The Changing Organization of the 21" Century
Organizations have evolved tremendously over the past years. The 21 sl century so caJied
organizations are moving at faster rates, are more quality conscious, are more employee oriented and
are customer driven. Figure lA shows some of the challenges (discussed later in the chapter) that are
influencing the organizations nO\vadays.
Figure ]a:
Competitive Uncertainty
':&. Managers
~ Prices
New
ComPetitors
':&_ Domestic
~ Multinational
L ..---1
The 21' Century Organization

Faster
Quality Conscious
Employee Involvement
Customer Driven
Technology
::----,.. New products
-....;;;:New technologies
t
___j
Changing Consumers
::---,..Lifestyles
-....;;;:Trends
Due to these changes we need to retrain and equip ourselves and others in terms of effective
managerial skills such as human resource management and human relations ski11s. Human resource
management is important to:
Inculcate team work

Develop problem solving skills
Enhance creativity
Enhance effective communication
Facilitate change
Motivate and Jead
Develop individuals
Generate creative and effective thinking
HRM533
Introduction to HRM
Studying and enhancing our knowledge in Human Resource Management will help us to realize that:
)>
Human is the most important asset of an organization.
}>
Human assets shall provide organization with talents, knowledge, skjlls and abilities.
)>
Wrongly selected individuals wi1l cause organizations to be dysfunctional.
)>
Proper Human Resource Management will enhance organizational productivity and

job satisfaction.
Good Human Resource Management will be able to retain efficient and good
employees.
1.1
Definition
Human Resource Management can be defined in many ways:
1.
The utilization of human resources to achieve organizational objectives.

(or)
2.
The development, administration and evaluation of programs to acquire and enhance

quality and performance of people in an organization.
(or)
3.
A special field that attempts to develop programs, policies and activities to promote
satisfaction of both individual and organizational needs, goals and objectives.
No matter how it is defined, human resource management refers to how the human aspects of an
organization are managed and are structured to ensure that the overa11 goals of the organizations are
accomplished. fuitially, effective Human Resource Management can be arranged in sequence is
shown in the next page.
STEPS IN PROVIDING FOR HUMAN RESOURCES
There are 4 main sequential steps of human resource management and they are as shown in
figure lB.
lJI
Introduction
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Figure JB
Recruitment
L __ _ _ _ _ _ _ _ _ _ _ _ _ __ j
77ze initial attraction and screening ofthe supply of

prospective human resources available to jill a position
+
(
Selection
L---------------~
Choosing an individual to hire from all those

who have been recruited
('----T-rai-nin-g_
__,0
The process ofdeveloping qualities in human resources that

will enable them to be more productive.
/
Performance Appraisal
The process ofreviewing past productive activity to evaluate the contribution

individuals have made to toward attaining organizational goals
Source .: Cerro. Modern Management Prentice Hall 2000
The order of this manual will be following the steps above. In addition, other important and relevant
topics pertaining to Human Resource Management will also be discussed. TheY are topics Jike, career
development and planning, job design, compensation and benefits safety and hearth and the
engineering part of Human Resource Management which is the industrial relations.
But, before we proceed to looking at the main functions ofHuman Resource Management from past
to present.
HRM533
Introduction to HRM
1.2
The Historical Development of Human Relations
The development of Human Relations has

undergone significant changes. What we can see is
the scientific and human relations approach have
declined in importance and the human resource
approach has emerged to bring new concepts and
ideas to current practitioners and academic~i_"lan':'s::._ _ _
:::=r=:'._-----,
Importance of HRM
Historical Development of HRM
Main Functions of HRM

Challenges of HRM
So~M<
MaMgome"
Human Relations
Human Resources
THE SCIENTIFIC MANAGEMENT
It can be said that the foundation to managing employees effectively was first introduced in
the scientific management approach introduced by Frederick W. Taylor. The idea at that time
was not to constantly supervise their employees and threaten them but to take a scientific and
objective approach in studying how the employees' work can be designed in an effective
manner to increase productivity. Motion study for each job was conducted. Tool utilized for
each job was also examined and the time needed to perform a job was also recorded. A fair
performance standards for each job was developed and employees now will be more
motivated through a fair wage system. Frederick W. Taylor developed differential piece
rate system where workers would receive a higher rate of pay per piece produced after the
daily output standard has been achieved. Through this system workers are expected to
produce at a maximum level to satisfy what was believed to be their only needs i.e. money.
However, the approach introduced by Taylor i.e. workers were solely motivated by money
led to problems. Workers were regarded as simply another factors of production. The
approach focused only on the importance of employee outputs rather than the employees
satisfaction.
Thus, attention then shifted to from scientific management to the human relations modeL
HUMAN RELATIONS
The research conducted by Elton Mayo and his colleagues led to the assumption that
employees productivity were not only affected by economic needs but also through social
needs. Employees feelings emotions and sentiments were greatly influenced by working
conditions such as group relationships, leadership styles and management support. Thus
employees should be treated with dignity rather than treating them as an economic tool. The
research done by Mayo led to a wide use of behavioral science techniques in enhancing
workers productivity and satisfaction that is through supervisory training, welfani.programs
and many others to emphasized support and concerns for the workers. Union movements at
this period were also active which further supported the human relation model.
Ill
Introduction
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The human relations model did improve the working environment of money workers but only
achieved minimal success especially in increasing workers output and satisfaction. The
reasons were:
Over-simplification ofhuman behaviors in an organizational settings. The notion

that a happy worker is a productive worker only pertains to some workers not all.
Others reasons also contributed to the satisfaction and productivity levels of workers.
lndividual differences of employees were not highlighted. Workers should not be
treated the same because each worker is a unique and complex person with different
wants, needs and values. 'What motivated a worker may not motivate others.
Failure to recognize the need for job structure and controls on employee behavior.
The importance of procedures, standards and work rules to guide employees towards
the goals of the organization were reflected.
Failure to recognize that to sustain productivity motivation of workers will also
require improvement in the performance appraisal system. career development
programs. job enrichment programs as well as selection and placement to match
workers with the job. Human relations is only one of the factors that contributed to
workers productivity and satisfaction.
HUMAN RESOURCES (HR)
The Human Resources (HR) management is generated from the foundation of human
resource approach. This approach focused on organizational effectiveness and satisfaction of
employees needs. According to this approach. both organizational effectiveness and
employees needs are mutual and are compatible. This means both are dependent on each
other. One set of needs cannot be gained at the expense ofthe other.
l'-
Employees are considered as investments. If they are effectively managed, they will
provide long-term rewards to the organization in the form of greater productivity.
Policies, programs and practices must be created that wi11 satisfy both the economic
and emotional needs of employees.
A good and healthy working environment should be created to encourage the
development and utilization of skills and expertise to the maximum extent.
Human Resources programs and practices should be implemented that will be able to
balance both the organizational and the employees needs.
HRM533
Introduction to HRM
Figure JC
Human Resource Approach
Higher
Employee Motivation and
Applied Ability
Greater
Quality, Quantity ofWork
Leads to
Leads to
Greater
Employee Rewards Recognition
Higher
Organizational Productivity Profits
~eadsto
Source : Human Resource Management Global strategies for managing a diverse workforce (f" edition)
by Michael Carrell, Elbert and Hatfield, Prentice Hall.
The diagram above indicated that Human Resource approach can be achieved through a
cyclical process in which the organizational and employees should be interdependent to
enable both to reach their goals.
STRATEGIC HUMAN RESOURCE MANAGEMENT
In the fast changing global economy, change is a nonn. Environment, technological, social
changes as well as the intense scarcity of Human Resource and its high cost means that longterm planning is very important. This lead to the importance of strategic management which
involves making decisions that define the overall mission and objectives of the
organizational, determining the most effective utilization of its resources and executing
strategy that will enable the organizations to reach their goals.
Strategic human resource management addresses a wide variety of people issues related to
business. Today, people issues are not the sole responsibility of the Human Resource
department but are the responsibilities of every managers in every department. The Human
Resource staffs are resources that support the operations of the operating managers. All
managers regardless of what departments they belong to are considered to be Human
Resource managers. Strategic Human Resource management is vital towards to success of an
organization. How people play a vital role in the success of a business wiH lead fo how weB
the organization reaches its goals.
Introduction
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Now, let us look at the main functions of Human Resource discussed earlier. Remember, to succeed
in today 's world, an effective Human Resource Management is considered to be a powerful
competitive weapon.
1.3
The Main Functions of Human Resource Management
As discussed ear1ier, the functions required by organizations to provide for effective utilization of
Human Resource or recruitment, selection, training and performance appraisal together with
industrial relations. What are the definitions of the functions and what do they do to organizations
with regard to Human Resource Management?
RECRUITMENT AND HRP
The recruitment function is concerned with obtaining the right number of employees
necessary to accomplish organizational goals. The first phase in this function is for the
organization to identify and forecast their organization's demand for employees. H needs to
consider the require number of employees for the short-tenn, intermediate and also in the
long run. This is termed forecasting will enable the companies to respond to any potential
employee surplus, or shortages. When making forecasting, managers must consider business
plans for growth. For example, how many employees will retire, how many are aged
workers, the level of tasks complexity and labor shortages or surplus.
Next, come the staffing part, a process where the organization wi11 seek to develop a pool of
interested and qualified applicants for a position. The process also wi11 attract individuals on
a timely basis in sufficient numbers and with appropriate qualifications. Recruitment can be
either from the external and internal sources.
Both these process cannot be done effectively before job analysis is done. Job analysis is a
detailed study of the specific duties entailed in a particular job and the human qualities
required for the job. Job analysis consists of job descriptions and person specifications.
The general process of Human Resource Management + Recruitment are shown in Figure
lD & IE.
HRM533
Introduction to HRM
Figure 1D. The Human Resource Management Process
Strategic Planning
Human Resource Planning
Forecasting
The human resource
requirements
+
+
Forecasting human
resource availability
Comparisons between
requirements and availability
Skills
Knowledge level
Personality
Government regulations
+
+
Organizational needs
Projections
Knowledge I skills, etc
/
Surplus of Workers
Companies facing this problem will

have to take several actions
They are:
Restrictive hiring
1.
2.
Reduced working hours
3.
4.
Encourage early retirement

Laying offs
Supply = Demand
No action is necessary since supply

equals demand
Shortage of Workers
This condition will

eventually lead to the
recruitment and
selection process
'll.
.
mmmmomm
toHRM~
Introduction
Figure 1E Recruitment
The Recruitment Process
Job Analysis
A process for obtaining all important job facts.

This process wi11 generate two types of documents:
~----~J
Job Description
~----~
Job Specification
A statement of the human qualifications

necessary to do the job. Usually comprise of
these items:
Education
Experience
Training
Judgement
fuitiative
Physical effort
Physical skills
Responsibilities
Communication skil1s
Emotional characteristics
Unusual sensory demands such as sight,
smell, hearing
A statement containing items such as:

Job title
Location
Jon summary
Duties
Machines, tools, equipment
Materials and forms used
Supervision given or received
Working conditions
Hazards
Recruiting
Internal Source
External Source
The pool of employees within the organization can be

the source for human resources.
Numerous sources of human resources

available outside the organization.
The methods will be job posting, bidding a human

resource inventory of management inventory.
The method are tluough advertising,

employment agencies, executive search firms,
walking, special events campus recruitment
and the sources may be from the high school,
college I universities the retires I unemployed.
HRM533
Introduction to HRM
SELECTION
Selection is a series of specific steps used to decide which applicants should be hired. The
purpose is to select the candidates that are most likely to aid the organization in furthering its
objectives.
The common predictors used in selection are:

1.
Application blank forms
2.
Interviews
3.
Tests
4.
Reference check
The overall/ general process of selection is shown in Figure IF.
Figure If Selection
Selection
Collecting lnforma:ian on Applicants
....
Reception Counter
~----'--'
....
(Inquiries to any job openings)
If Yes
Job Preview /Interest Screen
'--T-es-ts_...JI
....
Application Blank Fonn or Resume
....
Background Information
{Reference Check)
:t.
Additional Interview
(Optional)
Conditional Job offer letter
Medical Examination
Job offer I Job placement
I
I
~ ''--'"_'_rv-ie_w_-.J
Introduction
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TRAINING AND DEVELOPMENT
This process is initiated by the orientation I induction process. Orientations defined as the
process by which new recruits are familiarized with the working environment. Also
considered to be a process that providers new recruits with basic background information
about the form.
Training on the other hand is organizational activities designed to change employees through
the learning process so the employees can perform their job effectively. Training well help
organizations increase their productivity and satisfaction of workers. The overaH process is
shown in Figure I G.
Determining Training Needs

Who wi11 be trained
What are the goals/objectives
What areas should be focused
or trained
Designing the training program

Assembling facts I activities that
will address specific company
training needs.
Evaluation t e program
To determine whether it meets the
organizational goals.
Are there any improvement?

Are there any change in
behavior?
Is there any transfer of
knowledge taking place?
dministering the training programs

(Implementation)
On the job
Offthejob
Techniques for transmitting information
Techniques for developing skills
HRM533
Introduction to HRM
PERFORMANCE EVALUATION/ APPRAISAL
A process considered to bring nightmares' to managers. It is defined as a formal process or

system of periodic review and evaluation of an individual's and term's performance. The
purpose of performance evaluation are to encourage quality performers, to identify career
development movement and to serve as a channel of communication between managers and
their subordinates.
It is considered to be one of the most important functions in human resource management
because if affects human's motivational level. The link between performance evaluations and
the motivation process can be seen below:
Effort
Performance
11-
Organizational
goals
Performance evaluation
Process
Individuals
goals
Similar to a11 other human resource function, perfonnance evaluation also follows several
steps/process. The steps/process are as follows:
Figure JH
1.
Establish performance slandards with the employees.
2.
Mutually set measurable goals.
3.
Measure actual performance
4.
Compare actual performance with the standards.
5.
Discuss the appraisal with the employees.
6.
It necessary, initiate corrective actions.
t
t
t
t
Source : De Cenzo, Human Resource Management, John Wiley, 1999.
1}1
Introduction
toHRML!J
mmmmomm
SAFETY AND HEALTH
This process caters for organizations to provide a safe and healthy work environment that will
comply with specific occupational safety and health standards and to keep records of
occupational injuries and iiinesses.
EMPLOYEE BENEFITS AND COMPENSATION
This process aims to provide and to reward employees with equitable pay I remuneration of
employees for the contributions they contributed to organizations in achieving their
objectives. Effective Human Resource Management wiH ensure that both internal and
external equities to compensation are met.
INDUSTRIAL RELATIONS
This process wi11 focus on maintaining good and harmonious relationships between the
management and the employees. The process include handling grievances, disciplinary
proceedings, trade unions and co11ective bargaining process.
ACTIVITY
1.
Can a well meaning HR programs have negative effects on a firm? If so,

how?
2.
What roles do HR management play?
Apart from discussing the functions ofHR and their importance, we should realize that HR is
also facing with major challenges especially in the new millennium, the 21" centwy. The
next part in this chapter will discuss three ofthe major challenges facing HR today. They
are:The impact of globalization
>
The new technological advances
>
Change
Introduction
toHRM
Importance of HRM
Historical Development of HRM
Main Functions of HRM
Challenges of HRM
Impact
of globalisation
Change
HRM533
Introduction to HRM
1.4
Challenges of Human Resource Management in the new

millennium
Organizations today, are under intense pressure to be better, faster and more competitive. Why?
In this sub-section we are going to look at factors that are causing such happenings. The reasons are
due to:
I.
2.
3.
Globalization
. New technological advances
Change
GLOBALIZATION
Globalization is the trend toward opening up foreign markets to international trade and
investment.
Business everywhere, in order to grow and prosper are seeking business opportunities in
global markets. This place a wide variety of new pressures on traditional activities. For
instance, managers have to balance a complicated set of issues related to different
geographies, cultures, Jaws and business practices. Therefore, organization required better
qualified people to execute the company's strategy on a global scale. These managers then
have to work with HR department to create a source of competitive advantage for the
company.
For managers and the HR department to be a source of competitive advantage, the department
generally must evolve to support the organization's transformation from a domestic to an
international to a global-oriented company. They also have to be aware of the assumptions
and employee rights that are likely to be encountered in the international arena and a
rethinking of the department's structure and activities.
Every activity of the HR department will be affected directly or indirectly by the
internationalization of the firm's business. The need to do international succession planning
will arise, policy decisions about the use of foreign nationals and expatriates in assignments
abroad. Internal barriers to international assignments need to be identified and reduced and
also the determination of external sources of needed talent. Then, with a wide range oflegal
constraints the HR department must select qualified people who can be assimilate into the
company and the local culture.
Orientation, training and development will become complex too and important. The success
of the company will depend on the foreign national or expatriates performance. This can be
done through effective placement and development. Compensation too, will become more
complex due to adjustments, allowances and incentives I benefits which and considerable to
the firm's compensation costs.
Lastly the managers and HR department must assess the effectiveness of their international
efforts to ensure effective employee relations.
Introduction
'1l
toHRM~
[B[i]B][i][J[g[;
NEW TECHNOLOGICAL ADVANCES
Computer technology has made organizations to take advantage of the information explosion.
l_t also forced and enabled organizations to become more competitive. It also change the
nature of work in organization. Due to that, if organization wants to be competitive, jobs and
organization structures have to be redesigned, new incentive and compensation plans have to
be established and incorporate, new job descriptions have to be written and new employee
selection, evaluation, training and development have to be instituted. These activities are ail
with the help of human resource management.
CHANGE
Nowadays, trends like globalization and technological innovation has forced organization to
change their way in managing. For instance the organization structures are more"flat1er,
employees are being empowered to make decisions. The work situation is focused on team
work, the bases of power are changing. While the managers are required to become much
more committed. With these kinds of changes, organization must have self-disciplined and
committed employees. Due to that the activities have to be change and intact to fulfill the
requirements of change.
As mentioned earlier these are the three main cha11enges faced by managers today. A
detailed explanation of this area will be further discussed in the following chapter.
ACTIVITY
We have stated three challenges, now your task is to find olher challenges that can
cause an impact to an organization in the 21 51 century not only local but

internationally. Look into any internet sites as an example
Wlvw.nbs.ntu.ac.uklstaffliven!hrm-link.htm.
HRM533
Introduction to HRM
Summary
1.
The changing organizational of the 21 ~~ century

The 21 51 century organizations are moving at faster rates and are more quality conscious and
employee oriented thus making the need and knowledge ofHRM very important. Human
resource management is important
)>
inculcating team work.
:Y
developing problem solving skills and individuals
}>
enhancing skills Jike neativity, communication motivation, leading, effective

thinking and
facilitating change.
2.
Definition
Human Resource Management can be defined as:

(i)
The utilization of human resources to achieve organizational objectives

or
(ii)
The development, administration and evaluation of programs to acquire and enhance

quality and performance of people in organization
or
(iii)
3.
A special field that attempts to develop program, policies and activities to promote
satisfaction of both organizations and individuals.
The Development ofHR - Past
+ Present
The development ofHR practices has undergone three major phases or approaches. The are:(i)
Scientifk Management
An idea that stressed on a scientific and objective approach in studying how
employees work can be designed in an effective manner that can increase
productivity rather than constantly supervising the employees.
(ii)
Human Relations Approach

A study that concluded that workers productivity are not merely influenced by the
desire for money (economic man) but is also influenced by social and psychological
factors.
'll
mmmmumm
Introduction
toHRMLU
(iii)
Human Resource Management Approach

A model that focused on achieving both organizational effectiveness and employees
satisfaction simultaneously. The interdependent relationship between man and
organization should be integrated.
(iv)
Lastly, The Strategic Human Resource Management Approach

A model that look into a wide variety of human resource issues related to the
operations ofbusinesses today. To compete in the fast changing economy,
companies must develop long range plans pertaining to HR issues Jike managing
change, managing information and diversity in the workforce.
4.
The Main Functions ofHRM and Their Process

The main functions ofHRM are as foJlows:
(i)
Recruitment
Obtaining the right number of employees necessary to accompJish organizational
goals. Developing a pool of interested and qualified candidates, internally and
externa1Iy for a position.
(ii)

Forecasting and determining adequate supply and demand for man power for an
organization.
(iii)
Selection
A series of specific steps to decide who should be hired who will be likely to aid the
organization in reaching its goals.
(iv)

Firstly, orientation, defined as the process by which new recruits are
familiarized/sociaHzed with their working environment.
Next, training, designed to change employees through the learning process to ensure
they can perform their job effectively.
(v)
Performance Evaluation
A formal process system ofperiodi~, review and evaluation of an individual's and
team's performance.
HRM533
Introduction to HRM
(vi)
Safety and Health

A process in which organizations need to providence safe and healthy work
environment that well comply with specific occupational safety and health standards.
(vii)
Employee Benefit and Compensation
Process that provide and wi11 reward employees with equitable pay and remuneration
system.
(viii)
Industrial Relations
A process that focus on maintaining good and harmonious relationship between the
management and the employees.
5.
Challenges ofHRM in The New Millennium

(i)
Globalization
A trend towards opening up foreign market to international trade and investment.

(ii)

New Technological Advances can be seen in computer technology which has Jed to
the era of information explosion. Due to this organizations have to compete to gain
as much information to remain competitive in the business.
(iii)
Change
Trends like globalization and technological innovation has Jed organization to change
their way of managing their business. Some changes occurring are like flatter
organizations the emergence of self-managed teams and many others.
,--/
i.V--J CHECKLIST
Are you now able to:
Define human resource management
Explain how HRM influence an organization's performance.
Explain the historical development ofHRM.
Describe the main functions ofHRM and their process.
Describe the challenges meeting HRM in the future.
Ill
Introduction
toHRML_!_j
wmmrnDm~:;
Job Analysis
Scientific Management
Human Relations Approach
Performance Evaluation I Appraisal
Human Resource Management Approach
Safety and Health
Employee Benefits and Compensation
Industrial Relations
Recruitment
Globalization
Selection
Change
__.......,_...,m"""""""""-"""""'"'"''"'""''""""'"'"""""''"'"'"""-"""""'""""""-'"""
Source : May 1995 past years exam question.
I.
What will be the challenges to HR?
2.
How does HRP help organization to perform and achieve their goals effectively. What
probJems may they encounter.
3.
What is job analysis?

Methods?
Steps?
Problems?
4.
What is job design?

What are the models u/Iyingjob design.
5.
What is career deve1opme:nt

Phase?
Advantages?
6.
Guidelines to effective interviewing?

Reference checking?
Tests, validity and reliability.
7.
What is HRIS?
What role does it play?
HRM533
Introduction to HRM
8.
"The importance of the human resource development is also seen within the context that
future growth will be technology and skill driven. The days of sample assembly and
soldering of electronic chips are gone. We have resolved that we are not going to remain
forever a nation of industrial estates. We have resolved that we are going to be a nation
moved by its strong industrial society. What is thus called here is for cultural transformation
and a mental revolution to take place within these 30 years before the dream of an industrial
society can finally be realized"
Based on the above caption, discuss how human resource manager can contribute towards the
attainment of these goals.
The Environment For Human

Resources
As discussed earlier in the first chapter, organizations are experiencing many changes. Changes are
happening in the way organizations do business, in the technology, in the workforce structure and
many others. Some of these changes are influenced by the environment that surrounds the
organizations in which they are operating in and interacting with. They are termed external
environment and the internal environment. Both the external and internal environments create
challenges to HRM. Organizations that are able to deal and control these challenges will out perform
those who are incompetent. Thus, this chapter will enable you readers to look into the following:
1.
The external and internal environment that surrounds an organization.
2.
The different categories associated with the environment.

Before proceeding, take a look at the overview map.
jrhe Environment for Human Resources
The HR Challenges
for today's managers
Implementation of Strategic
HR Policies
HRM533
Introduction to HRM
Table of Contents
THE ENVIRONMENT FOR HUMAN RESOURCES

Learning Objectives
2.1
Key HR Challenges For Today's Managers
External and Internal Challenges (Environment)
2.2
Rapid Change
Workforce Diversity
Legislation
Skill Shortages and The Rise of The Service Sector
2.3
Organizational Perspective
Individual Perspective
2.4
Implementation of Strategic HR Policies
Competencies of HR Department
23
24
25
26
26
26
26
27
28
28
29
29
29
31
32
34
Summary
35
36
36
Learning Objectives
Upon the completion of this chapter, you will be able to:
1.
Define extell}al and internal environment.
2.
IdentitY the different categories or stages of both internal and external environment and their
impact on organizations practices in HR and their operations as a whole.
3.
Describe how organization can use HR practices or functions to cope with the environmental
challenges.
The Environment'
forHuman
Resource
2. I
.
'
[B[IJEJ[j][J[3[;
2.1
Key HR Challenges For Today's Managers
The environment in which HR management operates in is in a state of flux. This means we see
changes occuning very fast, across a wide range of issues. These changes pose challenges to
organization and may be categorized according to their primary focus: the environment (external
environment) and the organization or the individual challenges (internal environment).
Figure 2A: Summarizes the major HR challenges (both internal and external) facing today's managers)
[/Item a/
EnvironmeJtt
Extema/
Environme11t
OrgaJiizational
Perspective
)>
Rapid change
)>
Globalization
)>
Rise of the internet
)>
Workforce Diversity
)>
)>
Legislation I
~
~
Politic~
Skill shortages and

the rise of the
service sector
Adaptedfrom: Managing Human Resources,
Individual
Perspective
Decentralization
Downsizing
Self-managed
work-teams
Organization
culture
..----..-----
Matching people
and organization
Ethics and social

responsibility
Productivity
Empowerment
Outsourcing
3rt! EdUion
Brain drain job

insecurity
by Gomez-Mejia, David Balkin and Robert Cardy, Prentice Hall
The following topics will further discuss the diagram: However, we will first define what external
challenges and internal challenges mean from the HR perspective.
HRM533
Introduction to HRM
EXTERNAL AND INTERNAL CHALLENGES (ENVIRONMENT)
External or environmental cha11enges are forces external to an organization that affect.the

organization's perfonnance but are beyond the immediate control of an organization. For
example, an organization may not be able to form its own national policies to suit its
operational convenience unless if it is state owned or monopolized the business. At the same
time the situation may be altered if organizations form a body or a conglomerate to influence
the policy in order to guard their interests.
Internal challenges, on the other hand are conditions that the organizations can voluntarily
control to provide a conducive environment to operate in. Internal cha11enges or
environment may be from the organizational perspective or the individual
(employee/management) perspective.
2.2
RAPID CHANGE
Organizations are now operating in a volatile environment that keeps changing rapidly. To
survive they need to adapt to these changes and to deal with them effectively. This is where
effective HR practices come into the picture.

As an example, rapid change in hours of work, company demands and many others have
made many people/employees experiencing stress. Extreme stress may lead to burnout and
even depression. So through effective HR practices, companies can develop good personnel
wellness programs or coaching sessions to reduce the stress leveL
THE GLOBALIZATION ERA
Globalization is considered to be one of the most dramatic challenges facing many firms
today. As defined earlier, globalization is the trend towards opening up foreign markets to
international trade and investment. This means companies are operating at the international
level, which result in global economy practices. The implications of globalization to HR
management are:
Worldwide Company Culture

Companies like Colgate Palmolive has developed a global company identifY to overcome
problems in cultural differences.
Franchises like Me Donalds and Kentucky share the same company motto worldwide.
Global Alliances
Some companies from global/ international/ alliances to take advantage of global markets.
Therefore, HR practices are needed to develop and their knowledge able and efficient
workers.
The Environment!
forHuman
Resource
A Virtual and Diverse Workforce
2..7.'
-"'
[BDlEHDDmm
A virtual workforce means workers that belong to another country are working with a
company that are not operating at their home country to manage these workers companies
need to be well equipped with sophisticated technology such as the internet. As well
developed HRIS (human resource information system) must be the linlcing pin between the
workers and their employees.
Operating globally will also result in having a diverse workforce. For example, the United
States is experiencing a dramatic change in their workforce structure. By year 2000, nearly a
third of the workforce are members of racial minorities. Fifty percent of the workforce is
composed of women workers. The age distribution has also shifted to having more older
workers than younger ones.
These changes will influence HR practices in:
)>
Development of new training methods
>
Methods of screening employees with appropriate skills
>
Development of interpersonal skills.
>
Literacy training
>
Finding new means of motivating workers.
THE INTERNET REVOLUTION
The internet has grown tremendously in usage over the past few years. It was estimated that
business usage of internet has quadrupled since early 1998, almost 80% at the start of the
new miiJennium. The internet or the information teclmology period has also influenced
companies' human resource practices in the fo11owing manner:
Written Communication Skill

Companies now must have personnel who are good I literate in computer, especially
personnel who can deal effectively with e-mail messages. This is because e-mail usage may
be subjected or bounded by legal issues. As an example, if a customer complains to a
company, his I her complaints may lega1ly bind the company since there is a written record
(in the computer) to prove it. Therefore how a personnel of a company answer I addresses a
complaint must be worded carefully, in other words, literacy skills are very important here.
Furthennore, internet technology will require companies and their employees to be more
culture sensitive, since other countries in which they are dea1ing with may not use the same
language or practice the same work habits and culture.
HRM533
Introduction to HRM
Selection of Personnel
Previously, selection of personnel used traditional methods such as interviews, test and many
others. Now, through internets,job seekers can merely sent their applications and resumes
via net. The internet creates open labor market since infonnation of prospective employees
and firms are available on a global basis, may be obtained easily and quickly.
Training of Personnel
In house training dominates corporate training. Now employees may be trained through online-learning where employees around the world may be trained simultaneously. Internet
training allows companies to reach their employees everywhere around the world.
Enabling General Managerial Issues Focus
Now, HRJS (human resource information system) that is implemented in companies enable
them to handle HR issues such as selection, performance appraisal, payroll and other
functions. Bureaucratic paper shuffling can now be minimized. HR managers can widen
their scope of responsibilities in supporting the line personnel and solving other managerial
problems.
ACTIVITY
Can you describe the role of HRIS in companies especially in solving managerial
problems pertaining to HR issues?
WORKFORCE DIVERSITY
Another cha11enge faced by companies is to manage the increase in diversity of the

workforce. In Malaysia, for example through the influence of multinationals firms, a variety
of workforce cultures is brought in. In Malaysia, we see foreign firms setting businesses
here with foreigners as bosses and locals as their workers and also Malaysian going outside
opening businesses having to employ locals from those countries. Issues such as culture,
language, work habits, values and norms vary .. Therefore HR practices/strategy looking into
these differences have to be implemented so that companies can capitalize the differences in
order to survive and prosper.
LEGISLATION
How successfully a firm manages its human resources will depend largely on its ability to
deal effectively with government regulations. This means the firms need to keep track of the
external legal environment as well as developing internal systems such as supervisory
training and grievance procedures. In Malaysia for example, many firms are now
implementing and developing formal policies on sexual harassment and establishing internal
administrative channel such as "Puteri UMNO" and the respective ministry to deal with
alleged incidents before employees feel the need to file a law suit.
The Environment!
for Human
Resource
2I
,.
,/
[B[i]E][!][JC][g
SKILL SHORTAGES AND THE RISE OF THE SERVICE SECTOR
"The industrial revolution has created many changes in the nature of work. The period of old
pr6duction techniqUeS have evolved to modern organized production systems. In Malaysia,
for example, similar changes are occurring. With the development of Silicon Va11ey we see
changes is happening in our service sector. It is growing rapidly as compared to the
manufachlring sector. With this rise, Malaysia is in need of many expertise technical areas
as welJ as in the professional sectors. However, the many available workers in our country
are still unable to fill in those jobs" Here, training will have to play its role. Pre-work
training, for example, will become the norm as tasks become specialized and complex. At
the same time, new HR strategies on compensation, appraisal and responsibilities ofHR
areas have to be redesigned to suit the changes happening.
2.3
ORGANIZATIONAL PERSPECTIVE
Organizational challenges look at problems internal to a firm, which are byproducts of the
environmental forces. These organizational cha11enges however are controllable by the
managers. These challenges must be dealt with quickly before they become out of control.
The following will, discuss some of the internal organizational challenges faced by firms
that have an impact on the HR practices.
1.
Decentralization
Decentralization is transferring responsibilities and decision-making authority from a central

office to people and locations closer to the situation that demands attention. Here, the
internet will extend its role by helping companies to decentralize faster by improving the
communication flow among the workforce minimizing the dependency on the traditional
organizational pyramid (bureaucracy). So the role comes into the picture when it can
designed HR strategies that are more flexible such as in the work flows job enlargement,
enrichment, work sharing, team based, job design and many others. This area is further
discussed in the Appendix.
ACTIVITY
What is organization downsizing?
How are the organizations in Malaysia being structured?
HRM533
Introduction to HRM
2.
Downsizing
Downsizing is a reduction in a companys workforce to improve its bottom line. Normally a

company wil1 downsize to reduce the size and scope of its business to improve its financial
problems. When company downsize, lay offs, HR practices will have to be implemented
effectively. Besides laying off workers good HR practice may also consider early
retirement~ voluntary separations or voluntary workforce reductions. Companies can also
introduce pay freeze, cutting overtime pay or choose to retrain the workers through out
placement services.
3.
Restructuring of Organizations
Another organizational change that is prominent is in the supervisor- workers relationship.

Now we se many companies practicing se11-managed work-teams. Self-managed workteams is a system where employee are assigned to a group of peers and together they will be
responsible to handle a particular job I task. So the goals of product quality and
improvement in productivity can easily be met.
4.
Organizational Culture
Organizational Culhlre is the basic assumptions and beliefs shared by members of an

organization. It is unconsciously operated. Organizational culture wiH influence the work
habits of a firm's employees. Features of organizational culture involve obse!V'ed behavioral
regularities, norms, dominant values, philosophy rules of the game and the climate.
Companies that can make cultural adjustments to suit the rapid changes occurring in the
environment wi11 be able to outperform those with rigid and unresponsive organizational
culture. Again good HR policies wi11 come into the picture especia11y in managing
workforce diversity.
5.
Outsourcing
Another trend influencing HR practices is outsourcing. Outsourcing is subcontracting work

to outside company that specia1izes in and is more efficient at doing a particular kind of
work. The main objective of outsourcing is it can save money. Here outsourcing may bring
problems to HR when it involves laying people off.
ACTIVITY
What potential problems can outsourcing create?
)Unions?
}-
Downsizing?
The Environment'
forHuman
Resource
2I
/
[BI]]E][l]l][i][;
INDIVIDUAL PERSPECTIVE
Human Resource Management will also encounter problems coming from employees of an
organization. This is tenned individual challenges. Some of the individual cha11enges are
matching people and organizations, ethics and social responsibility, improvement, brain
drain and job insecurity.
1.
Matching People and Organizations
Human resource strategies come into the picture when they are able to attract and retain the
type of employee who best fits the firm's culture and overall business goals. Competencies
and skills possessed b personnel of organization will determine the success of that company.
2.
Ethics and Social Responsibility
People's expectations that their employees will behave ethically are increasing and vise
versa. Therefore many firms and organizations have created codes of ethics stating the
principles, procedures and standards of personal conduct for their members. At the same
time companies need also to look into social responsibility, that is fulfi11ing their obligations
not only to their employees but also to the pub1ic as a whole.
3.
Empowerment
Empowerment is the concept of providing workers with the skills and authority to make
decision that would normally made by managers. This process indirectly wiU provide
workers with the skills and authority to make decision. The aim is to generate enthusiastic,
committed people who will be able to perform their work, believe in their work and would
enjoy the work they are doing. At the same time, empowerment wiJI generate creativity and
the wiiJingness to take risks, which are the key components of organizational success. But
with empowerment there will also be a problem of misuse of power, therefore HR is needed
to develop strategies to deal with this problem.
4.
Brain Drain
Brain drain is the loss t>fhigh talent personnel to competitors. This results when competitors
lure away intellectuals through interesting benefits or profits. Brain drain can effect
innovation and may cause rn_ajor delays in the introduction of new products or services.
5.
Job Insecurity
Lately, employees safer a problem of job insecurity. This is due to the volatility in the
economic situation. Job insecurity can cause stress to employees, which can Jead to lower
performance and productivity. HR practices through setting up unions and maintaining good
labor-employer relations can look at job security and its major agenda.
HRM533
Introduction to HRM
ACTIVITY
Can you think of other individual challenges that forms may encounter?
2.4
Implementation of Strategic HR Policies
Now, all discussed above will influence the decisions made pertaining to HR. Therefore to be
successful, firms need to closely monitor and align their HR strategies and tactics to meet the
environmental and internal cha1lenges. To accomplish this firms or companies may set up effective
strategic HR planning. Strategic HR planning is the process of formulating HR strategies and
establishing programs and policies that will help implementing them. HRP (or) human resource
planning will be discusses farther in the following chapter A brief framework of bow to choose and
implement the best HR strategies are shown below as a guideline to future managers.
Table 2A : Selected HR Strategies to Fit the Different Stages of Environmental Challenges
Low Magnitude
Environmental Dimensions
1. Degree of uncertainty
(how much accurate
information is available?)
;;.
;;.
;;.
;;.
2. Volatility
(how often is change
taking place?)
;;.
;;.
;;.
>
3. Magnitude of change
;;.
(how drastic is the

change?)
;;.
;;.
;;.
4. Complexity
(how many different
elements affect the firm)
>
>
;;.
;;.
High Magnitude
Detailed planning
Job specific training
Fixed pay
High dependency on
superior/boss
;;.
;;.
;;.
;;.
Control emphasis
Efficient production
Job-specific training
Fixed pay
Flexibility
Innovation
Generic training
Variable pay
Explicit job description

Formal hiring and
socialization of the new
Make skills
Uniform appraisal
procedures
;;.
;;.
Control
Internal recruitment
Centralization
High dependency on
superior
;;.
;;.
;;.
;;.
;;.
;;.
Loose planning
Generic training
Variable pay
Multiple source for
appraisals
Broad job classes

Informal hiring and
socialization
Buy skills
Customized appraisals
Flexibility
External recruitment
Decentralization
Multiple inputs for
appraisals
The Environment'
forHuman
.I
2.
f
Resource
mflHi.l rn oen~
Table 2B : HR Strategies fitting the Internal Challenges Organizational Perspective
1. Production process for

converting inputs to
outputs
Routine
)>
)>
)>
Control
Explicit job deception
Job specific training
(i.e. automobile plants)

2. Market Posture
Non Routine
)>
Adaptability
Quick response to change
)> Non-specific
)> Loose work planning
)> Generic training
(i.e. advertising firms)
)>
High rate at growth
,.,.,.
External recruitment
Decentralized
Customized appraisals
3. Managerial Philosophy
Low rate of growth
Internal
Centralized on the job-training
High dependency on superiors
Averse to risk/Autocratic
)>
)>
)>
Seniority based pay

Formal hiring and
socialization
Top to down
communication
Non-A verse Democratic

)>
)>
)>
)>
4. Organizational Structure
Formalized
)>
)>
)>
)>
5. Organizational Culture
Moral Commitment (High}

)>
)>
.-
Control
Centralized pay decisiOns
Explicit job description
Job based pay
)>
Preventive disciplinary
procedure
Employee protection
Explicit ethical codes to
monitor and guide
behavior
Variable pay
Supervisors given the
major role in hiring
decisions
Up and down
communication
Multiple inputs for
performance appraisal
Informal
)>
)>
)>
)>
Informal hiring
Decentralized pay
Broad job classes
Individual based pay
Entrepreneurial Climate (High)

)>
)>
)>
loose work planning

Internal hiring
Variable pay
HRM533
/ntr.oduction to HRM
COMPETENCIES OF
HR DEPARTMENT
Firms, however, have to realize, that even the best laid out strategy may fail if specific HR
programs are wrongly chosen or implemented. Therefore, firms have to ensure that their HR
strategies are mutually consistent and are considering. The factors that might influence
them: the environmental and the internal challenges. Below are some of the competencies
required of a manages of a HR department to be efficient in his/her line of duties:
Leadership
Understand the nature and style ofleadersbip display appropriate leader characteristics
demonstrate leadership at multiple levels:
)>
)>
)>
Individual
Team
Organization
Knowledge of the Business

Understand business goals, vision, values and strategies.
Understand internal and external customers as well as its environment.
Understand nature, scope and HR: implications of business globalization and the effect of
information technology on business operations.
HR Strategic Thinking
Understand the strategic business planning process.
Be able to select, design and integrate HR system or practices to build organizational
capability and to gain competitive advantage.
Process Skill
Be able to consult, to solve problem, to evaluate and diagnose and to fucilitate.
Be able to adapt to change and to understand the change process.
Be able to manage and balance under the conditions of uncertainty.
HR Technology
All HR professionals should have a generalist perspective on HR systems and

practices to relate to the achievement of organizations.
Be able to create business opportunities.
The Environment'
for Human
Resource
' /.
'
mmmmomm
Summary
I.
2. I
The major challenges ofHR can be divided into 2 categories:

a)
b)
Environmental challenges which involves rapid change, rise of the internet,

workforce diversity, legislation, ski11 shortages and the rise ofthe service sector.
(i)
(ii)
2.
Internal challenges - organization challenges which involve

decentralization, downsizing, organizational restructuring, the rise of selfmanaged work teams, organizational culture and the impact of technology
and outsourcing.
Internal Challenges - individual perspective which involve matching
people with the organization, ethics and social responsibility, empowerment,
brain drain and job insecurity.
HR Strategies
You be effective, HR strategies should fit. With the overall organizational strategies the
environment in the finn is operating in, the unique organizational characteristics and
organizational capabilities. They should also be muruaJiy consistent and reinforcing each
other.
3.
Competencies
You succeed the HR department and its managers should equip themselves with certain
competencies and they are:
)>
)>
)>
)>
)>
Leadership
Knowledge ofbusiness
HR strategic thinking
Process skills
HR technology
;---:-~
t!!t[__l CHECKLIST
Upon completion ofthis chapter, are you able to:
Define external environment.
Identify the categories of internal and external environmental challenges.
Describe how organizational can use HR practices or functions to cope with the
environmental challenges.
HRM533
Introduction to HRM

Change
Globalization
Internet Revolution
Workforce Diversity
Decentralization
Ethics and Social Responsibility
Downsizing
Restructuring
Empowerment
Brain Drain
Organizational Culture
Job Insecurity
Discussion Questions ...,.....,...,....,....,."""'...."""'_"""'_"""'"""'"""'.....,_,....,,..,.

1.
Which or the environmental, organizational and individual challenges will be the most
important to HR management?
2.
What HR policies can a company put in place to reduce turnover of good employees?
3.
What other challenges do you foresee that might affect HR policies of companies?
JOB ANALYSIS and DESIGN

II====Job Analysis
II====Job Design
The chapter will be divided into two parts, Chapter 3A and Chapter 38.
Take a look at the overview map below before proceeding.
Introduction
Defarilion of JA
Purpose of JA
Importance of JA
Con:po~nts of JA
Corducting JA
Choosing a metln1
Criteria for Assessirg
JAmethods
Ch!cklist of
data gathering
~""'
Job Analysis Methods
Methods of Job Designs
Delirition
Job Rotation
Job Errichrnent
Socio Tectrical Errichr"rert

Qual~ Circles
lrdustrial Democracy
Checklists/
lfMlrtories
School of Thoughts
on job designs
Job /earring analysis

Furdamentaf job analysis
Position analayis
questionaire
M;~nagemert position
description questioraire
Mlitimethod approaches
Traditional approaches
Modern Approaches
Guidelines
to
JA Ouestfonaires
JAlnl:erviev.rs
Problems with JA
Introduction
Applications of JA
HRM533
Introduction to HRM
Table of Contents- Chapter 3A

JOB ANALYSIS AND DESIGN
37
Learning Objectives
39
Introduction
39
3.0
Definition of job analysis
40
3.1
Purpose of job analysis
40
3.2
The importance of job analysis
40
3.3
Components of job analysis
41
3.4
Conducting the Job Analysis

Choosing a Method
43
3.5
Job analysis methods

I. Observation
2. Self-descriptionldiariesllogs
3. Job Analysis Interviews
4. Critical Incident Technique
5. Repertory Grid
6. Checklists I Inventories
7. Job-LeanUng Analysis
8. Functional Job Analysis (FJA)
9. Position Analysis Questionnaire (PAQ)
I 0. Management Position Descriptions Questionnaire (MPDQ)
11. Multi-Method Approaches
45
46
48
49
50
3.6
Guidelines
Job Analysis questionaires
Job Analysis interview
57
57
57
3.7
Cost benefit considerations relating to job analysis

Benefits of accurate job information
57
57
3.8
Problems with job analysis
59
3.9
Applications of job analysis information

Job Description
Job specification
60
42
52
53
54
55
55
56
56
61
64
66
Summary
Self-test
67
67
68
13
AI
mmmra tHll m
Job Analysis
Learning Objectives
After completing this chapter, you should be able to:
Define job analysis, job description and job specification.

Explain the importance of job analysis.
Identify the various methods or techniques to analyze job.
Differentiate job description and job specification
Conduct a job analysis.
Write a job description .
Introduction
For an employee to perform satisfactorily, his or her skills, abilities and motives to perform the
job must match the job's requirements. A mismatch may lead to
4
4
4
Poor performance
Absenteeism
Turnover
and many other problems.
Tirrough a process called Job Analysis, the skills and abilities to perform a specific job are
determined.
Take a close look at the overview map below before proceeding.
This chapter is pretty long so be sure to refer to the overview map from time to time.
JOB ANALYSIS
Definition
Purpose of Job Analysis
Importance of Job Analysis
Components of Job .Analysis
Job Content
Job Requirements
Conducting A Job Analysis
Job Context
Job Analysis Questionnaire Guidelines
Job Analysis Interview Guidelines
Job Specification
Job Description
HRM533
Introduction to HRM
3.0
Definition of job analysis

A job analysis is a systematic exploration of the activities within a job. It is a technical
procedure used to define the duties, responsibilities and accountabilities of a job. It
involves the identification and description of what is happening on the job accurately and
precisely identifYing the required tasks, the knowledge, and the skills necessary for
performing them, and the conditions under which they must be performed. (De Cenzo
/Robbins 1996).
3.1
Purpose of job analysis

The purpose ofjob analysis is to obtain answers to such questions as,
3.2
1.
Why does the job exist?
2.
What physical and mental activities does the worker undertake?
3.
When is the job to be performed?
4.
Where is the job to be performed?
5.
How does the worker do the job?
6.
What qualifications are needed to perform the job?
7.
What is the job working conditions?
8.
What machinery or equipment is used in the job?
9.
What constitutes successful performance?
The importance of job analysis

1. A job analysis determines both the minimum and desirable qualifications necessarj
to perform in a job. Such information is crucial in putting together a recruitment
plan. In the selection process, an employee's relative abilities and skills must be
evaluated.
2. A job analysis may indicate what tasks, duties and responsibilities the job will entail,
how repetitive the job may be, on how much independence the job requires. By
using that information during an interview, the HR interviewer can evaluate the
qualifications of the person being considered for the job.
Analysi.l3 AI
lBUJEHDiltll[;
Job
3. A job analysis informs the new employee especially about what must be learned to
complete the job successfully.
4. A complete job analysis will reveal if a new employee needs additional training in
certain areas to complete the job successfully. This can usually discerned by
comparing the employee's past work history and training to the tasks specified in the
job analysis.
5.. Job analysis can also help management determine an equitable pay system.
6. Tirroughjob analysis, management can find out exactly what tasks are performed on
each job and can compare individual tasks for similar iobs across the organization.
7. Job analysis can be helpful in determining which duties and responsibilities should be
considered in an evaluation.
8. A good job analysis system is important to the human resource function, the primary
focus of which is to maintain a high level of employee productivity and efficiency.
Job analyses affect the most areas of employment and indirectly affect performance
appraisal, compensation, and training, which in tum affect employee performance
and productivity.
/_~
3.3
0\V,
What is job analysis and why is it important?
Components of job analysis

Job analysis provides information about three basic aspects of a job.
1. Job content
describes the duties and responsibilities of the job in a manner that can range from
global statements to very detailed descriptions of tasks and procedural steps.
2. Job requirements
identify the formal qualifications, knowledge, skills, abilities and personal
characteristics that employees need in order to perform the content of the job in a
particular situation or context.
HRM533
Introduction to HRM
3. Job context
refers to situational and supporting information regarding the particular job :
Its purpose
Where it fits within the organization

Scope data such as the magnitude of financial, human or material resources
managed
The availability of guidelines
The potential consequences of error
The amount and closeness of supervision received or provided, and
The work setting, cultural context, physical demands and working conditions .
3.4
Conducting the Job Analysis

1. Understand the purpose of conducting the job analysis.
Before embarking on a job analysis, one must understand the nature and purpose of
conducting the investigation. Recognize that job analysis serve a vital purpose in
such HRM activities as recruiting, training, setting performance standards, evaluating
performance, and compensation.
2. Understand the role of the jobs in the organization

Every job in the organization should have a purpose. Before conducting the job
analysis, one must understand the linkage that the job has to the strategic direction of
the organization. In essence, one must answer why the job is needed.
3. Benchmark position
In a large organization, it would be impossible to evaluate every job at one time.
Accordingly, one should select jobs based on how well they represent other, similar
jobs in the organization. This information wiU be used as a starting point in later
analysis of the other positions.
4. Determine h9w you want to collect tbfl-job analysis information
Proper planning at this stage permits one to collect the data desired in the most
effective and efficient manner. This means developing a "game plan" on how the
data are to be obtained. Several methods or combinations can be used. Select the
ones that best meet your job analysis goals and timetables.
5. Seek clarification, wherever necessary
Some of the information collected may not be totally understandable to the job
analyst. Accordingly, when this occurs, one must seek clarification from those who
possess the critical information. This may include the employee and the supervisor.
Failure to understand and comprehend the information will make step 6, writing the
job description, more difficult.
Job Analysis
13AI
rBIDEHDIJClrQ
6. Develop the first draft of the job description
Although there is no specific format that all job descriptions follow, most include
certain elements. These include the job title, a summary sentence of the job's main
activities, the level of authority and accountability of the position, performance
requirements and working conditions. The last paragraph of the job description
includes the job specifications, or those personal characteristics the job incumbent
should possess to be successful on the job.
7.
Review draft with job supervisor

Ultimately, the supervisor of the position being analyzed should approve the job
description. Review Comments from the supervisor can assist in detennining a final
job description document. When the description is an accurate reflection, the
supervisor should sign off, or approve the document.
Now~
let us take a break before we actually go into data gathering for a job analysis
study.
Reiterate how to conduct a job analysis by re listing the seven things you need
to do.
1.
2.
3.
4.
5.
6.
7.
CHOOSING A METHOD
When choosing appropriate data gathering methods for a job analysis study, eight (8)
broad distinctions are relevant.
I.
Orientation
2.
Quantification
3.
Structure
4.
Packaging
{
{
{
{
worker orientated
task orientated
quantified method
qualitative method
open-ended method
closed method
packaged systems
do-it-yourself
~~
HRM533
Introduction to HRM
5.
Sophistication
6.
Proximity to jobs
7.
Applicability
8.
Sensitivity
{
{
{
{
sophisticated
straightforward
remote from under study
close to the job under study
wide application
narrow application
adaptable
inflexible
Table 3A.O Criteria For Assessing Job Analysis Methods
t.
Purpose se!Ved
Can the data collected be used for a variety of purposes?
2.
Versatility
Can a method be used to analyze many different jobs?
3.
Standardization
Does a method provide data that can easily be compared to data

collected by other methods?
4.
User acceptability
Do users of the method accept it as a reasonable why to collect job

data?
5.
Training required
How much training is needed before individuals can use it to collect

data in the organization?
6.
Sample size
How large a sampling of infonnation sources is needed before an

adequate picture of the job can obtained?
7.
Off the shelf
Can the method be used directly off the shelf, or must considerable
development work be done to tailor it for use in a particular
organization?
8.
Reliability
Does the method produce reliable data?
9.
Time to complete
How long does it take to analyze
Cost
How much, does the method cost to implement and use?
10.
a job using the method?
A Checklist of things to consider.

0
What do I want to do with the results?
In what form do I need the results in order to be able to achieve my objectives?
What resources are available to me?
Job Analysis
13AI
mmmrnomm
0
Who is available to carry out the data- gathering?
Do they need to be trained?
How many people are available to be studied?
Do I have access to job-holders, supervisors, experts, others?
How much time do I have available to me?
How much money can I spend?
What information is already available?
What information can be collected specially?
What data-gathering methods are available to me?
Will the data-gathering method be acceptable to the people involved?
Is the level of language in checklist and questionnaires appropriate?
Will I need to call on outside expertise (for training, for analysis of the data)
Do I need computer support?
What are the best methods to use?
Now with the critena and
checklist~
we are ready to look at some of the methods
available.
3.5
Job analysis methods

There are various methods that managers can use to determine job elements and the
essentiallmowledge, skills and abilities for successful performance. We will look at
I.
2.
3.
4.
5.
6.
7.
8.
9.
I 0.
II.
Observation
Self-description/diaries/logs
Job Analysis Interviews
Critical Incident Technique
Repertory Grid
Checklists I Inventories
Job-Learning Analysis
Functional Job Analysis (FJA)
Position Analysis Questionnaire (PAQ)
Management Position Descriptions Questionnaire )MPDQ)
Multi-Method Approaches
HRM533
Introduction to HRM
For each method , we will look at the technique, its applications, advantages,
disadvantages and the data generated.
1.
OBSERVATION
Data are gathered by watching employees work.
a)
Straightforward observation
=:> An analyst will position himself or herself so that they can view and
record everything that the jobholder is carrying out.
b)
The observation interview

=:> The jobholder is observed and subsequently questioned further by the
analysts in order to obtain more information on the task being carried
out.
There are two ways to perform this observation interview;
i)
The analysts can observe the worker carrying out his/her duties
and make a note of any areas where they feel they will need
further information and then question the worker on those
subject matters or
ii)
The job analysts can question the worker while she/he is

performing their duties, wherever this is possible.
Whichever method is used depend on the nature of the work
being analyzed.
c)
Behavior observation
=:> This is concerned with the behavior of the jobholder rather than the
content of the tasks.

This observation will involve the development of a checklist of important
or critical behaviors which an analyst should be looking for and
concentrating on.
In drawing up the checklist, a number of criteria for determining the
categories of behavior should be included;

i)
Possibility for change

The extent to which a behaviour- can actua11y be changed/modified at
some later point.
Job Analysis
13A I
mmmrnomra
ii)
Its meaningfulness
The behaviours being observed should have some relevance and
meaning to people who are being observed.
iii)
Reliability
The behaviour should be capable of being observed reliably and require
little interpretation via the observers.
iv)
Degree of differentiation
The categories must be separate and distinct from one another.
v)
Relation to outcome
The category being observed should have a relevance in helping

the jobholder achieve the objective of their work.
This technique requires some preparation and some knowledge of the
processes being observed.
Once the behaviours have been identified, they should be defined so that
there is an agreement among the analysts about what that type of
behaviour involves. This will ensure great reliability and consistency in
the results. The behavioural categories should be lengthy enough to give

a comprehensive overview of the job. The final stage will be the
construction of a behavior analysis form on which the observer can note
down the number of times behaviour occurred, when it occurred.
=:- Readily available and provides firsthand information.

=:- When trained analysts are being used the process itself can be one of the
most objective and it can be useful for those jobs where the whole cycle
of activities is observable.
==> It is useful in providing information to an analyst who is going to

conduct interviews aftenvards.
=:- Jobholders do not function most efficiently when they are being observed
and thus distortion in the job analysis can occur.
==> This method requires that the entire range of activities be observable possible with some jobs but impossible for many, example, managerial
position.
HRM533
Introduction to HRM
Data Generated
J.--
The data generated will depend upon the type of observations carried out and when
considering behavioural observation the topic of sampling arises. The 2 main methods of
sampling behaviour exist are
Time sampling
The observer makes a note at a predetermined interval of the activity or
behaviour, which is being carried out.
Unit sampling
Making a note of a unit of behaviour whenever it occurs.
Sampling of behaviour sequences
Not only the frequency of each behavior is noted but the sequence when
it occurs.
Table JAJ Sequence behaviour analysis ofa salesperson at work
Behaviour Sequence
2. SELFDESCRIPTION/DIARIES/LOGS
It uses any written or recorded descriptions of work provided by the jobholders

themselves including material from diaries!logs and day in the life narratives.
The jobholder records their activities over a given period.
I Technique
.
-~~--~
Ways in which diaries may be completed:

a)
The jobholders record the activities in which they have been engaged at the end
of a given time period on a regular basis.
b)
The jobholders make a record in their diaries every time they change from one
major activity to another.
c)
They make a note of specific activities which they engage in over a period of
time or
d)
A jobholder is asked to describe a typical day, either in an-hour by hour format or

as a narrative.
13
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[fJ[DEJ[!][J[g[;
Job Analysis
. .
Advantages
~-~-
f-
-=> provides much information but is seldom applicable to job activities.
=> Most suitable in the case of managerial posts where the jobholder is making
decisions throughout the day in which it would be impossible for an observer
to pick-up but it would be possible for the jobholder to record, identifYing
which decisions were made, why they were made, when they were made etc.
=> There maybe a tendency for the jobholders to concentrate only on those areas
of work which they consider to be important, thus exclude from their diaries
activities which though frequent are considered Jess important.
t---
Data Generated
As the information is provided in narrative form, it has to be analyzed by examining the

content and comparing the jobholder's own descriptions with those provided by other
jobholders.
3. JOB ANALYSIS INTERVIEWS
This method can be applied to all levels and types of job.

-----~~~-
T<l9hnlque
-~--
a)
.._
-~-
f-
The unstructured interview
=> Occurs when the interviewer has no set of pre-prepared questions or a

predetermined line of reasoning.
b)
The stroctured interview
=> The interviewer has a definite fonnat in mind for the interview.
c)
Co-Counseling
:::::::>
Where two jobholders are brought together and in a sense, interview one
another about the work that they carry out.
=> Much care has to be taken in setting up an exercise such as this and it has
to be explained carefully to the participants what they are doing, why
they are doing it and what is expected as a result of their discussion.
Advantages
- ~~--
HRM533
Introduction to HRM
=> The analyst not involved, only the participants, so they can talk freely.
:::::> Co-counseling has the advantage of removing the analyst from the interview
process and enabling the jobholders to discuss the work between themselves.
=> The jobholders themselves may not be trained. Interviewers may not probe
areas which a trained interviewer would.
:::::::>
The jobholders may miss out particular areas through their inexperience of
interviewing techniques.
1----
Data
Generated
c_
__
_ __,
=> The data which is generated will usually be descriptive.
4.
CRITICAL INCIDENT TECHNIQUE
Formulated by J.C. Flanagan.

A procedure for collecting observed incidents which have proved very important or
critical to performance. (whether effective/ineffective).
Applications
=> Very flexible and can be used for all types of jobs at all levels. It is not
suitable for analyzing a job which does not yet exist.
=> Useful for designing selection procedure, developing training courses
designing appraisal systems for evaluating perfonnance.
To qualify as a criticai incident, two criteria have to be observed;
i)
The incident has to be observable to such an extent that inferences can be

made about the person performing the act.
ii) It must be critical i.e. the incident must occur in a situation where the
purpose or intent of the act seems fairly. Clear to the observer and where its
consequences are sufficiently definite to leave little about concerning its
effects.
-------~
Techniques
--~-~---
--
Job
Ana~sis 13AI
[Bf]]EJ[D[J[i][;
Procedures that should be followed in recording incidents.
i)
the general aim of the activity should be developed and should be recorded in the
form of a brief statement, both acceptable to the jobholders and unambiguous.
ii) The people who will record the observations must be made aware of the types of
incidents being sought and instructions and relevant background information
must be provided.
The description of an incident should also follow a particular format which is

i)
The person should be asked to describe the incident which did/did not meet the
objective.
ii) The background to the incident should be described.

iii) What the person actually did which was so effective, or so ineffective should be
described.
iv) Some indication should be given of when the situation occurred.
The critical incident teclmique relies to a large extent on people's memory and so the
more recent t~e event the more likely it is that the person wi11 have a good reco11ection of
it.
=> Readily available and can be relatively easily picked up by individuals with a
minimum training.
=> Hundreds of incidents at least required in order to obtain comprehensive

description of ajob.
Data Generated
=> Data obtained from a critical incident analysis are in the form of anecdotes,
or stories of the way an individual behaved on a particular occasion. It is
recommended that observations are obtained from more than one group of
people involved in a particular job e.g. supervisor in addition to jobholder.
HRM533
Introduction to HRM
5.
REPERTORY GRID
A technique which like CIT enables those dimensions on which good and poor
performers differ to be identified. It is developed from the Personal Construct Theory
of George Kelley.
Applications
=> A flexible job analysis technique which can be used on many different types of
jobs but it does require the interviewers to be fluent and fairly ana1ytica11n how
they consider the way in which they perform their job.
Helpful in obtaining information on Jess observable aspects of a job example
decision-making, relationships with other.
r,,...,..,.~--~
Technique$ _
ko
-~
f.-
The procedures to carry out this process;
(Refer Table 3A.2)

a)
The supervisor writes the name I initials of the people supervised onto separate
cards, one for each person.
b)
The supervisor separates the cards into 2 piles, one for people who are good at
their work and one for those who are less good.
c)
The supervisor is asked to take out two cards from the good workers' stack and
one card from that of the less good. She/he is then asked to describe how the two
''good" individuals are similar in which they carry out their work, and how they
are different from the one who is less ''good".
d)
The next step involves a method called laddering ---'7 where the supervisor is
probed further on that original construct in order to define it in more detail and
make it more concrete, example - if the difference between the good and less
good workers was described as their motivation then the analyst would ask a
follow up question along the lines of "how do you know when a person in highly
motivated?"
Laddering in this way enables the analyst to identi:ty very specific behaviours in
detail.
i)
Once the "laddering" has been completed, the cards are replaced in their piles and
three more are drawn out and the process repeated. It does not matter if the same
cards are taken out- the interviewers is simply asked to think of other ways in
which the three individuals are similar and different.
The activity is continued until the person being interviewed runs out of constructs
and is starting to repeat one which have emerged earlier in the interview.
Job Analysis
13 A I
mmEHD om m
Table3A 2
Analyze problems
carefully_
Keeps machines
runninq
Helps others out when
not busy
Good act prioritizing
Peter
Harjit
Helen
David
Sketchy analysis of
Problems
Knocks machines off often
Doesn't help others
Doesn't identify correct

_priorities
=> Provide an enormous amount of data even when only a few people are
interviewed.
Can you Jist the disadvantage and the type of data ge,neratE>d?
in using repertory grid?
Data Generated
6. CHECKLISTS /INVENTORIES
A checklist describes a list of tasks that have to be performed for a job or a series of
jobs to be completed.
These lists of tasks are provided in the form of a questionnaire.

One characteristic of inventories is that they all have a number of tasks listed which
vary in type and numbers depending on the job. The tasks have to be rated by the
respondent using a series of scales which might indicate,
the degree of difficulty carrying out the task.

the importance of carrying out a task
the amount of time spent carrying out that particular activity.
The questionnaires are strucrured and standardized, which means that ]arge number
of people can be surveyed for any particular study.
HRM533
Introduction to HRM
I:b!
! a>fh
c eck/"lSts~-mventones
a e JAJ : Sampte
Work area/- Identifying training /learning needs:
Gathering information
Task group
1. Design survey
2. Devise questionnaire
3.
4.
7.
JOB-LEARNING ANALYSIS
This involves a structured job analysis questionnaire. It describes jobs not in terms of
their content or skills and abilities but in terms of nine (9) learning skills which
contribute to the satisfactory performance of the job.
The 9 learning skills are
1.
2.
Physical ski1ls- activities that require practice and repetition in order to

get right/become fast enough I minimize errors.
Complex procedures, sequences of activity or procedures which are
remembered I memorized or followed with the aid of written material or

other aids.
3.
Checlcing I assessing I discriminating. that is non- verbal information

which is received by job-holders through their sense and which is used to
make judgments or take some other action, and which usually takes
practice to get right.
4.
Memorizing facts I information that is information that has to be retained

in ones head and recalled for brief periods of time or information that has
to be learnt, retained and recalled for a period greater than a day.
5.
Ordering I prioritizing /planning that is the extent to which the jobholder

has any responsibility for the flexibility in determining. The way a
particular job activity is performed.
6.
Looking ahead/anticipating that is the jobholder can foresee problems

and take some action which might prevent or at least reduce the effects
of the problem or fault as well as meeting needs in advance.
7.
Diagnosing I analyzing/ solving that is the extent to which the jobholder

sorts out problems, without or with assistance.
8.
Interpreting or using written/pictorial or diagral1ll11atic material.
9.
Adapting to new ideas/systems that is the extent to which the jobholder is

required to adapt to or learn new ideas I equipment /methods by using
manuals or other written materials are using other sources of
information.
Job
AnalysJ 3 AI
mmEH!l umm
Applications
This method is mosi effective with jobs in the range from semi skilled to skilled
manual, supervisory and technical.
8. FUNCTIONAL JOB ANALYSIS (FJA)
Uses standardized statements and terminology to describe the nature ofjobs and to
prepare job description and job specification.
The product ofFJA is a description of a job in terms of data, people and things. FJA
is based on the following,
I)
Jobs are concerned with data., people and things.
2)
A distinction must be made what gets done and what employee do to get
things done.
3)
Mental resources are used to describe data, interpersonal resources are

used with people, physical resources are applied to people.
4)
Each duty performs on a job draws on a range of employee talents and

skills.
9. POSITION ANALYSIS QUESTIONNAIRE (PAQ)
PAQ is developed by Purdue University. It involves a structured questionnaire for

quantitatively assessing jobs. Th.e questionnaire contains I 94 questions divided into 6
major categories.
)>Information input
(where and how does the employee get the information needed to perform to
job?)
>-Mental processes
(what reasoning, decision making, planning and information processing
activiiies are involved in performing the job?)
);;. Physical- activities

(what physical activities do.es the employee perform and what tools are used?
l> Relationships with other people

(what relationships with other people are required in the job?)
)>Job Context
(in what physical/social context is the work )
>Other job characteristics

(what activities, conditions, characteristics other than those described above
are relevant. to the job?
HRM533
Introduction to HRM
10. MANAGEMENT POSITION DESCRIPTIONS QUESTIONNAIRE (MPDQ)
This is a 197 item behaviora11y oriented struchlred questionnaire for describing,

comparing, classifying and evaluating management positions.
The ten sections in the questionnaire are
General information, decision making, planning and organizing, supervising and
controlling, consulting and involving, contact, monitoring business indicators,
overall ratings, know-how and organization charts.
MPDQ is useful for selecting managerial employees, cancer planning, diagnosing

training needs and job evaluation.
11. MULTI-METHOD APPROACHES
This method uses computer technology and sophisticated quantitative techniques.
rlmJITV
You would have noticed that we did not list the advantages,
disadvantages and the type of data generated for methods 6 till 11.
Why don't you try gathering some information on your own?
Browse the web and find out more about the advantages and disadvantages of
Checklists /Inventories, Job-Learning Analysis, Functional Job Analysis (FJA),
Position Analysis Questionnaire (PAQ) and Management Position Descriptions
Questionnaire (MPDQ). List them down.
Job
Analysisl3 A I
[B[]]EJ[i][J[ll[;
3.6
Guidelines .
JOB ANALYSIS QUESTIONAIRES
1.
Review questionnaires used by organizations, professional groups or university

researchers.
2.
Keep the questionnaire short
3.
Have each questionnaire completed at work.
4.
Categorize answers
5.
Test the questionnaire with several trusted employees.
6.
Include one open-ended question.
JOB ANALYSIS INTERVIEW
3. 7
I.
Consult the supervisor of the job before deciding which persons to interview.
2.
Make sure the interviewer understands the purpose of the job analysis.
3.
Structure the interview as much as possible, decide what questions will be asked
of all employees before any interview begins.
4.
Complete a rough draft of the interview and then go back to employee to verifY
that your interpretation of the employee's statements is correct.
5.
Prepare beforehand.
Cost benefit considerations relating to job analysis
Two factors must be considered i.e.
the time spent by employees, supervisors, and members of the personnel staff in
compiling, maintaining, reviewing, and modifying information about jobs.
the time needed to reconcile any differences of opinion about the requirements of
certain jobs among employees, their supervisors, and the perso1U1el staff.
BENEFITS OF ACCURATE JOB INFORMATION
While it is difficult to put an exact monetary figure on its value, accurate information
about job requirements can save money in the long run.
(refer figure 3.0)
HRM533
Introduction to HRM
Figure 3.0
Labor relations
Recruitment
Selection
L "o"t~- __J
~ ~
{Job analysis)
Compensation
Management
Performance
Evaluation
Training and
Development
Accurate information
../ Wi11 enable an organization to recruit and select personnel whose qualification match
more closely the requirement of the jobs .
./ Can provide a more objective basis for determining training needs, thereby
preventing a waste of funds 'through' unnecessary or incorrect training.
./ Can serve as a criteria so performance evaluation can be conducted on a more

objective and equitable basis. In tum, grievances arising in connection with
performance evaluation are likely to be reduced.
And
./ Employee compensation can be related more closely to the rights of a job when
accurate specifications covering these requi;crnents are availab]e. Not only i,s more.
equitable treatment afforded employees, but also over compensation is likely to
occux:-.
Can you think ofother benefits ofaccurate job information?
Job Analysis
13AI
tBUJBlrllllCHi
3.8
Problems with job analysis
We have studied many different aspects of job analysis. Now, let us look at the problems job
analysis. Listed are some problems; add to the Jist if you have others in mind.
I.
Lack of top management support.
2.
Only one method of job analysis is used.
3.
Only a single source is used for collecting job information.
4.
Supervisors and job holders do not participate in the design of the job analysis
exercise.
5.
No training in job analysis is given to the job analyst, the supervisor or the job
holder.
6.
Employees are not made aware of the importance of job analysis.
7.
Employees see job analysis as a threat to their job and/or pay level, job security
and workload.
8.
Employees are not rewarded for providing quality job information.
9.
Sufficient time is not allowed to complete the job analysis.
I 0.
Job content and job requirements are intentionally distorted.
II.
No review of the job is undertaken to determine if it is being done correctly or if

improvements can be made.
12.
13.
HRM533
Introduction to HRM
3.9
Applications of job analysis information
The immediate application of this information transforms it into job description, job
specifications and job standards.
1.
Job description
A written, statement that explains the duties, working conditions and other
aspects of a specified job.
2.
Job Specification
Describes the job demands on the employees who do it and the human skills that
are required.
3.
Job Performance Standards

The benchmarks against which performance is measured.
It serves 2 functions.
i)
Become targets for employee efforts.

The challenge of or pride in meeting objectives may motivate employees. Once
standards are met, workers may feel a sense of accomplishment and achievement.
This outcome contributes to employee satisfaction, without standards, employee
performance may suffer.
ii)
Standards are criteria against which job success is measured.

They are indispensable to managers and HR specialists who attempt to control
work performance ..
Without standards, no control system can evaluate job performance, all control
systems have 4 features
Standards
Measures
Correction
Feedback
Job performance standards are developed from job analysis information and then
actual employee performance is measured. When measured performance strays
form the job standards, the experts or line managers, intervene and corrective
action is taken. The action serves as feedback about the standards and actual
performance. The feedback leads to change in either the standards or job
performance.
Job Analysis
13AI
mmmmIJ en;
ACTIVITY
Interview your friend either from your own organization or outside , gather the
information with regard to what they are doing in the organization.
Focus on the nature of the task performed

Keep the data for future application in the next activity.
Now, let us go through each application.

JOB DESCRIPTION
The job description is a document that describes the tasks and responsibilities of a job
and its relationships to other.
Structuring the job description must be relevant and accurate.
It should be able to clearly answer the questions:
!.What is to be done?
2.When?
3.Where? and
4.How?
The items included in a job description are the following:
!.Major duties
2.Percentage oftime devoted to each duty
3.Performance of standards
4.Working standards
5.Possible hazards
6.Number of persons working on each job
7.Reporting relationships
8.Machines and equipment used
HRM533
Introduction to HRM
Table 3A.4 indicates a format of job description questionnaire.
Table 3A.4 Job Description Questionnaire

Position.-
Location
(Job title)
Geographical area
Division/Unit
Department/Section
Job status: Exempt/Non-exempt

Full time/Part time/Casual
Job code
Reports to:
Date
(Which position does this job report to

administratively? Functionally?)
Written by:
Approved by: (name and position)
Job summary
(Why does this job exist? What is its purpose?)
Duties and responsibilities

(What is the essential, i.e. make or break, duties and responsibilities of this job? Explain in
tenns of when, how and why).
13
AI
[B[i]E][!]i][g[;
Job Analysis
Re/ationshios
How many positions/people report to this position? What are their job titles? What positions
within the organization does this job require most contact with? What sort of people (if any)
does this position require external contact with?
Know-how
What type of experience is needed to do this job? What is the minimum experience needed to
do this job? What are the minimum formal qualifications of training required? Are there any
special skills, knowledge or abilities required?
Problem solving
What types of problems are faced in this job- repetitive, routine, simple, unique, complex etc.?
Authority
What type of decisions can be make without reference to a superior? What type of decisions
must be referred to a superior? Does this position have the right to hire offrre? What specific
dollar limitations exist on decision-making authority?
Accountability
Wbat assets are controlled? What is the payroll responsibility? What is the sales volume? etc.
HRM533
Introduction to HRM
JOB SPECIFICATION
Another item incorporate in job description is job specification.

Job specification is a statement of the minimum acceptable qualifications a person should
possess to perform a particular job. (refer table 3A.5)
Table 3A.5 Format ofJob Specification
Position:
Location
Job status
Job code
Department/Section
Division/Unit
Key Selection Criteria

Experience
\Vhat type of and how much experience are required to successfully perform this job?
Qualifications
What are the minimum formal qualifications required to successfuBy performing this job? Are
any formal qualifications legally required to perform this job?
Skills, abilities and knowledge
What ski11s, abilities and knowledge are required to successfully perform this job?
Personal qualities
What personal qualities {physicai/personality) are required to successfully perform this job?
Job Analysis
13. A I
mmmrn lHBm
Special requirements
What special requirements must be satisfied to successfu1ly perform this job? (e.g., ability to
work shift work, travel interstate/overseas, be away from horne for extended periods, work
long/irregular hours).
Ideal experience
Industry background
\Vhat industries/organizations would provide an ideal background for doing this job>
Current organization
What would be the ideal organization for the candidate to be employed in at this moment?
Current position
What would be the ideal position for the candidate to be employed in at this moment?
Route up
What would be the ideal career path for the candidate to have fo1lowed as preparation for this
position?
Remuneration
What salary and benefits should the candidate be currently receiving to make this position
financially attractive?
HRM533
Introduction to HRM
ACTIVITY
Structure the job description and job specification based upon your earlier
interview.
Follow the format given.
Summary
Job analysis is a systematic exploration of the activities within a job. It determines the
skills and knowledge required for performing jobs in the organization. Facts about the job
are gathered, recorded, and analyzed.
Information obtained through job analyses is used in developing job description and job
specification.
Job description is a document that describes the tasks and responsibilities of a job and its
relationship to other jobs.
Job specification is a statement of the minimum acceptable qualifications a person
should possess to perform a particular job.
'v.!
'
: _____ ; CHECKLIST
Are you now able to :
0
Explain job analysis, job description and job specification.
Indicate relationship between job analysis , job description and job specification.
Structure job description and job specification.
List down the importance of job analysis.
Identify the most common methods used in collecting data for job analysis.
Job Analysis
13 AI
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Job Analysis
Job Description
Job Specification
Job Analysis Interview
Functional Job Analysis
Repertory Grid
Position Analysis Questionnaire
Management Position description questionnaires.
Self-test
Answer either True !False.
I. A job consists of a group of tasks that must be perfonned if an organization is to

achieve its goals.
2. The job description is a document that provides information regarding the duties and
responsibilities of the job.
31n practice , job specifications are not included as a part of job description.
4. The Position Analysis Questionnaire (PAQ) is a structured job analysis questionnaire

that distinguishes between job-oriented elements and worker-oriented elements.
5. Job specifications state the tasks, ?uties, and responsibilities associated with a job.
6. Irifonnation obtained through job analysis is crucial to the development ofjob

description .
7. The management position description questionnaire is a method of job analysis that use
a checklist to analyze jobs.
HRM533
Introduction to HRM
=-""""'ue"""""""""'""""'"""""'""""""""'"' ="'""""""""'"""'"'"""""'"""'"''"""""""
1.
Assume that you are the director of a medium-sized HR department and happen to be
attending a staff meeting with a! the department heads and the CEO. During the meeting,
suppose that a manager from the manufacturing division suddenly and forcefully starts
criticizing the need for job descriptions of managers. He says that they reflect a set of
static, predetermined duties created by management and evaluated by the HR department,
which also assign salary levels to them based on the number of people he supervised. He
goes on say that these job descriptions tend to be snapshots of what is needed at a
particular point in time. He points out a few that he says have been frozen in place, even
as technological advances and competitive chalJenges occur. You have heard his
criticisms and note that the CEO is now looking to you to respond to his comments. Are
job descriptions unnecessary? If so, what would take their place?
2.
Discuss 5 reasons why organization has to conduct job analysis?
3.
Differentiate between job description and job specification. Why is it important?

for company to establish job description for position available?
Answers to self-tes"jJ
LT
,.
2. T
3.F
4. T
S.F
6. T
7.T
Now that you have completed the first part on JOB

ANALYSIS, you are ready to proceed to JOB DESIGN.
Again, take a look at the overview map below.
Introduction
Introduction
Definition
Considerations
in job design
ofJA
Job Specialisation
I
Job Enrichment
Socia Technical Enrichment
Quality Circles
Industrial Democracy
School ofThoughts
on job designs
Cost Benefrt
considerations relating to
job analysis
Problems with JA
Applications of JA
Learning Objectives
After you have read this chapter, you should be able to:
i)
define what is job design.
ii)
explain the various consideration taken to structure job design.
iii)
discuss the varieties of approaches that can be used to design job.
HRM533
Introduction to HRM
Table of Contents
Learning Objectives
69
3.10
Introduction to job design
Definition of job and job design
70
70
3.11
Considerations in job design
Individual differences
Social and interpersonal relationships
Organizational climate
Teclmology
71
71
School of thoughts on job design
3.12
72
72
72
72
3.13
Traditional Job Design Approaches
Scientific Management Approach
Motivation approach
Socio-teclmical systems approach (STA)
72
72
73
3.14
Modern Job Design Approaches
The Social Information- Processing Model (SIP)
Interdisciplinary Approach
Aspects of health and well-being
77
77
77
79
3.15
Methods of job design
Job Specialization
80
76
Job Enlargement
81
81
Job Rotation
Job Enriclunent
82
82
Summary
85
85
85
3.10 Introduction to job design

As a basic concept, job design is not new. It can be traced back to ancient times. when people
began to work as a team. It is based on the simple idea that work gets done faster if there is 1ask
specialization and division oflabor among the worker.
DEFINITION OF JOB AND JOB DESIGN
Job
A job is more than a collection oftasks recorded on a job analysis schedule and
summarized in a job description.
Jobs are the foundation of organizational productivity and employee satisfaction.
Job design
Job design refers to the process of determining what tasks and work processes will
compose a given job or a given group ofinterrelatedjobs.(Scarpello /Ledvinka).
~
mmmrnomm
JobDesign
term job design usually refers to the design or redesign of lower- skill jobs or jobs held by an
inexv'Tie,nced employees.
3.11 Considerations in job design

The most important thing to know and remember when discussing job design that there is no
universally good design for work. Usually a well-designed function of the work itself and the
circumstances within which it is performed are being focused.
There are four conditioning factors that can substantially affect the impact of a job on employee's
satisfaction and productivity, such as
i)
ii)
iii)
iv)
individual differences among the employees.

the social and interpersonal context of the job.
the organizational climate
the technology which the work is a part.
INDIVIDUAL DIFFERENCES
In structuring the job design, there must be a congruence between the person and the job,
because both have demands that must be met and specific resources so as to contribute to
this individual job interaction.
Figure3B.O
Resources
Individual
Individual's knowledge and
skiJI
Job
Demands
Individual's needs and goals.
J{ -.. . . . .
Job requirements
Opportunities for personal

satisfaction
As specified in Figure 3B.O the most important moderator of how a person reacts to a job
is, the level of knowledge and skill the individual possesses for performing thejobfwork.
If the job design is poor as deliberated in work that is either excessively simple and
routine or overly complex and stressful, it may be almost impossible to find a well-suited
individuaL
A second important moderator is the degree to which the job allows the individual to
satisfy important personal needs while working productively at the job th~at is the need for
personal growth and development and the need for meaningful social relationships. An
employee with strong social needs should responds positively to jobs permitting
interpersonal interaction.
HRM533
Introduction to HRM
SOCIAL AND INTERPERSONAL RELATIONSHIPS
If jobs are changed or redesigned in such a way as to alter interpersonal relations, it is

likely that productivity, motivation and satisfaction will be affected. For example if a job
is redesigned but the interaction of the individuals is reduced, then productivity may
suffer.
ORGANIZATIONAL CLIMATE
This refers to the organization structure, job design (simple versus enriched work) and
employee growth need (low versus high).
TECHNOLOGY
Technology can also affect organization structure and to the extent that the structure
impacts on interpersonal relations and organization climate.
For example, an auto assembly lines employ a special type of technology that provides
little opportunity for workers to identify with the task or to secure autonomy, two key
motivator factors.
This job design can be limited by technology or in some cases people will not end up with
enriched jobs no matter what has been done.
3.12 School of thoughts on job design

There are various possible alternatives that can be considered in designing job. In this module, we
will study the traditional job design approach and the modern approaches. Listed are the different
approaches in each category.
Traditional job design approaches
Modern job design approaches
Scientific management approach.
Social information- processing model
Motivation approach
Interdisciplinary approach
Socio-technical system approach
International perspectives of the Japanese.

the Germans, and the Scandinavians.
Human factors
Aspects of health and well-being.
3.13 Traditional Job Design Approaches
SCIENTIFIC MANAGEMENT APPROACH

Motivation Approach
Socia Technical System Approac~

----Human Factors Approach
In the history of modern management, many people would relate the concept of task
specialization and division of labour to the period of Frederick Taylor (the father of
Scientific Management).
Job Design
13Bi
mmmmomr;
According to Taylor, the design of jobs should be based on the division of labor which
would enable the worker to be as efficient as possible. And the best design should be able
to eliminate wasted emotion. In this approach, Taylor focused on jobs that required no
initial skill, using time and motion study as a basis to determine the most efficient design
for those jobs.
The principles of Taylor's scientific management approach are;
To limit the job's tasks to those that can be performed in the most
efficient manner.
To train workers in specific methods for each task.

To place equipment and tools in a way that reduces the unnecessary
movements.
So the scientific management approach in job design can be defined as a set of principles
and practices designed to increase the performance of individual workers by stressing job
simplification and specialization.
MOTIVATION APPROACH
Motivation Approach
Socia Technical System Approach
----Human Factors Approach
This motivation approach is based on several theoretical perspectives;
ii)
Motivation- hygiene theory

.. Activation theory
iii)
Job characteristics theory
i)
Motivation - hygiene theory
The basis for this theory is the proposition of Herzberg and his colleagues that factors
intrinsic to the work itself determine how satisfied people are at work and thus how
motivated they are to perform their jobs.
Based on this proposition, various job design techniques have been implemented that is
job enrichment. Job enrichment technique attempts to delegate to lower level employees
some of the functions, performed by their. supervisors or managers.
The basic job content is left unchanged, but the employee is given responsibility for
planning his or her work and controlling work outcomes.
Activation Theory
This theory holds that apersor.'s level of arousal/alertness decreases with exposure to
varying patterns of stimuli. The repetitive work reduces the employee's level of arousal
and leads to boredom, for example daydreaming. Accordingly, job design strategies based
on activation theory attempt to increase variety and reduce boredom.
HRM533
Introduction to HRM
These techniques are,

i)
Job rotation . Assigning employees to a series of different tasks or jobs

instead of leaving them on one task or job all the time.
ii) Floating staff. Assigning workers with multiple skills to a work group whose
members are moved around among jobs for different periods of time.
iii) Skill-based pay. New variant of the floating staff approach. The idea behind it
is for workers to relate among the various tasks on a job until they learn them
all, then relate to another job and go through the same process. Unique
features of skills -based pay is that worker get paid for the skills they have
rather than the jobs they do.
Job Characteristics Theory (JCT)
This job characteristics theory stresses intrinsic aspects of work. It holds that employees
are motivated to perform when they experience the work itself as meaningful, has
responsibility for work outcomes and receive feedback on the results of this work
activities. When these conditions are present, people feel good about themselves when
they perform well. If not present, people may try harder to obtain these internal
reinforcing rewards.
Job characteristics theory focuses on 5 core dimensions of the job (Table 3B.O). Refer
also to Figure 3B.l on the next page.
Table3B./
i)
Skill variety
-->-
The extent to which the job requires a variety of

activities, skills an talents to carry out the work
ii)
Task identity
_..
The extent to which the job allows its employees to

complete whole tasks rather than just parts of tasks.
iii)
Task significance
-->-
The extent to which the job can be regarded as

important to others inside and outside the
organization.
iv)
Autonomy
-..
The extent to which the job provides freedom to

plan, schedule, and decide about work procedures.
v)
Feedback
-..
The extent to which the job allows its employees to

obtain clear and direct knowledge about how well
they perform.
The five core job dimensions can be mathematically combined to derive a score ~hich
reflects the motivational potential of a job. As skill variety, task identity and task
significance jointly determine a job's meaningfulness, these three dimensions are treated
as one dimension in the formula below.
Motivating
Skill variety+ Task identity+ Task significaw:e
] x Autonomyx FeedbacA
Potential = [
3
Score (]VIPS)
Job Design
13Bl
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Based on the formula, a score of near zero on either the autonomy or job feedback
dimensions will produce aMPS of near zero. Whilst a number near zero on skill variety,
task identity or task significance will reduce the total MPS but will not completely
undermine the motivating potential of a job.
When the core job dimensions are present in a job, the job characteristics model predict
certain positive effects in an employee's psychological state. High scores in skill variety,
task identity, and task significance result in an employees experiencing meaningfulness

in the job, for example believing the work to be important, valuable and worthwhile. A
high score in the autonomy dimension leads to an employee's feeling personally
responsible and accountable for the results of the work he or she does. And a high score
in the job feedback dimension is an indication that the employee has an understanding of
how he or she is performing the job.
Now can you explain the job characteristics model and how it can be used to
enrich jobs.
Figure JB.l
Components ofJob Characteristics Theory
CORE JOB
CHARACTERISTICS
CRITICAL
PSYCHOLOGICAL
STATES
Experienced
Skill variety
Task identity
Task significance
OUTCOMES
_...
1gn 1merna1 worK
meaningfulness of the
work
Autonomy
Feedback from job
Experienced
responsibility for
outcomes of the work
High quality work

performance
l High satisfaction with

the work
Knowledge of the actual

results of the work
activities
Low absenteeism and

turnover
A 1'-
'--
Moderators
1. Knowledge and skill
2. Growth need strength
3. "Context" satisfactions
Source: Adaptedfrom J. Richard Hackman and J. Lyold Suttle- Improving Life at Work: Behavioural
Science Approaches to Oragnizational Change
HRM533
Introduction to HRM
Mot;vat;on Approach
Socia Technical System Approach

SOCIO-TECHNICAL SYSTEMS APPROACH {STA) - - - Human Factors Approach
It focuses on designing work systems rather than individual jobs so that the social and
technical aspects of work are mutually supports.

The system is based on a diagnosis of all aspects of the work operations by people who
have stakes in the work outcomes.
Employees, managers and union representatives convene to examine their operations and
how those operations might affect the work process.
Then the work is redesigned in a way that attempts simultaneously to meet the
organization's technical requirements and employee requirements.
Socio-technical job design recognizes that not everyone wants responsibility job
involvement and growth opportunities, these are provided for employees who do not want
them.
STA also focuses on getting the work done regardless of individual differences in worker
motivation.
STA attempts to increase operational efficiency but emphasis only on those job tasks that
are critical to performance. The worker decide how the task are to be carried out. Thus
mistake I error can be avoided at the beginning, i.e worker becomes quality inspector too
and also permits decision making at the lower leveL
The implication of STA is when work system are redesigned, personnel system must also
be redesigned to reinforce and maintain the new system of work.
Human Factor Approach
The Human Factor approach is concerned with design of equipment, facilities and
environments to ensure maximum employee effectiveness and enhance health, safety and
satisfaction. This approach is categorized as,
i)
Biological approach/ergonomics.
The focus of job design is to decrease negative physiological effects
employees may experience because of such things as the job- endurance,
strength and lifting requirements etcetera.
ii)
Perceptual/motor approach
If focuses on how workers are influenced psychologically by their
interactions with machines and other environmental working conditions
and how these interaction affect their performance for example lighting
in the work area adequate.
r:.;;;>l
JobDesign
[B[IJE][i][)[!][;
3.14 Modern Job Design ApproactJes
THE SOCIAL INFORMATION- PROCESSING MODEL (SIP)
This approach is based on the idea that information from other people and worker's own
past behaviors influences workers' perceptions of and response to the design of their jobs.
In simple tenn, the SIP model focuses on what others tell us about he importance of our
job. The model focus on four factors:
i)
other people provide cues we use to understand the work environment.
ii)
other people help us judge what is important in our jobs.
iii)
other people tell us how they see our jobs.
iv)
other people's positive and negative feedback helps us understand our feelings
about our jobs.
This model emphasizes on the social environment and past behaviors and understanding
of how workers react to the design of their jobs. It helps explain why two workers with
the same job and outcomes may have different levels of the motivation and satisfaction.
INTERDISCIPLINARY APPROACH
This model is being proposed by Michael Campion and Paul Thayer. This approach
incorporate the four approaches of the traditional job design- mechanistic, motivational,
biological and perceptual I motor approach. It allows the job designer or manager to
make the exchange and alternatives among the approaches based on desired outcome
especially wilh the problem on workers' performance.

approaches as being tabled out in Figure 3B.2.
The summary of the four
HRM533
Introduction to HRM
Figure 38.2
Summary of Outcomes ofInterdisciplinary Approach
approach
time
Higher personnel
utilization levels
Lower likelihood of
satisfaction
Lower motivation
Higher absenteeism
error
Less chance of mental
overload
lower stress levels
approach
1
motivation
Greater job
involvement
Higher job
performance
Lower absenteeism
approach
approach
person's interaction
with physical
aspects of the work
environment and is
concerned with the
amount of physical
exertion eg. Lifting.
person's interaction
with physical
aspects of the work
environment and is
based on
engineering that
considers human
factors - strength/
coordination,
ergonomics and
experimental
psychology
time
Lower personnel
utilization levels
Greater chance of
errors
Greater chance of
mental overload
and stress.
Less
less
costs because of
complaints
Fewer medical
incidents
lower absenteeism
Higher job satisfaction.
equipment or job
environment.
error
Lower likelihood of
accidents
Less chance of mental
stress
Lower training time
Higher personnel
utilization levels.
changes in
satisfaction
Lower motivation
13Bl
Job Design
aJ mEHD omr;
International Perspectives
Refer to Figure 38.3
Figure 3B.3
accountability. and other or

self-directedness in defining
work.
German approach
The work
is being
shaped by
unique
educational system, cultura.l
values and economic system.
~~~~~~~~;~
achieve zero wastage- 100% quality

product, delivery and time.
T echnocentric - placing technology and
engineering at the center of job design
decisions. Anthropocentric- placing
human consideration at the center of
job design decisions.
approach focus on
concern i.e. encourages high
degrees of worker control and
good social support system for
workers.
ASPECTS OF HEALTH AND WELL-BEING
According to Frank Landy, organizations should work to redesign jobs to increase worker
control, reduce worker uncertainty, managed the occurrence of conflict and task or
demand. _
This can be done in terms of;
Increasing control in work organization by
Giving workers the opportunity to control several aspects of the work and the
workplace.
Designing machines and tasks with optimal response time.
Implementing perfonnance-monitoring systems as a source of relevant feedback to

workers.
Decreasing uncertainty by
Providing employees with timely and complete information needed for their work.
Making clear and unambiguous work assignments.
Improving communication
Increasing employee access to information sources.
HRM533
Introduction to HRM
Managing conflict at work by
Encouraging participation in decision making
Utilization of supportive supervisory styles
Adequate availability of resources to meet work demands.
Improving task or job demand by
Enhancing cofe job characteristic.
OK.. it is time to take a break..... Check where you are" before proceeding...
Job Analysis
(3A)
(JA)
Introduction
Definition
Considerations
in job design
School of Thoughts
on job designs
Traditional approaches
Modem Approaches
3.15 Methods of job design

The most commonly used job-design techniques are
i)
ii)
iii)
iv)
v)
Job specialization
Job enlargement
Job rotation
Job enrichment
Socio-technical enrichment
autonomous work teams
quality of work life.
vi)
vii)
Quality circles
Industrial democracy.
We will now look at each ofthe techniques.
Methods of Job Designs
Job Specialisation
Job Enlargement
Job Rotation
Job Enrichment
Job Design
13B'l
mmmrnumm
JOB SPECIALIZATION
Job specialization involves the use of standardized work procedures and having
employees perform repetitive precisely defined and simplified tasks.
Step In Job Specialization
The job analyst records the various movements made in performing the job, clocks the
time taken for each movement and then undertakes rational or scientific job analysis to:
i)
redesign the job to make movements simpler and quicker to perform.
ii)
develop more efficient patterns of movement so employees can do the job faster
with less fatigue
iii)
set standards for designated jobs which can be, used to determine pay rates and
performance measures:
iv)
develop through job descriptions and job specifications to facilitate employee

recruitment selection, orientation and training.
Advantages of Job Specialization
i)
ii)
iii)
iv)
Improved operating efficiencies through the use of low skill and low cost labour.
The need for minimum on the job training
The easy control of production quantities.
Employees tend to make few errors when performing simple routine jobs.
Disadvantages of Job Specialization
i)
ii)
iii)
iv)
v)
vi)
Repetition
Mechanical pacing
No end product
Little social interaction
No employment involvement
Higher costs
JOB ENLARGEMENT
Job enlargement seeks to load a job horizontally by adding to the variety of tasks to be
performed.
Disadvantages of Job Enlargement
i)
the enlargement is seen as just adding more routine, boring tasks to the job.
ii)
iii)
the advantages of job specialization are reduced.

union perspective on job enlargement means more work and encourages
reductions in the number of employees.
HRM533
Introduction to HRM
<~
~an you think ofthe advantages or benefits ofjob enlargement?
JOB ROTATION
Job rotation increases task variety by periodically shifting employees between jobs
involving different tasks.
Purpose of Job Rotation
To reduce boredom through diversifYing the tasks to be performed.

Advantages of Job Rotation
i)
ii)
iii)
iv)
Place employees in more challenging jobs.

Can be effective for improving job satisfaction.
Helping an employee develop a generalist perspective.
Increasing skiiis and increase work force flexibility.
Disadvantages of Job Rotation
i)
Training costs are increased.
ii)
Productivity is reduced by moving an employee into a new job where he or she is

less efficient.
iii)
Moving employees creates disruption and members of a work group may not
accept the rotated employees.
iv)
Supervisors have to spend more time answering questions and monitoring the
work of rotated employee.
v)
Job rotation can demotivate intelligent and ambitious trainees who seek specific
responsibilities in their chosen specialty.
JOB ENRICHMENT
The restructuring of the content and level of responsibility of a job to make it more
challenging, meaningful, and interesting to a worker.
Job enrichment builds motivating factors into the job content by
i)
ii)
iii)
iv)
v)
combining task
creating natural work units
establishing client relationship
expanding jobs vertically
opening feedback channels
JobDesign
13'81
[B[iJE][!][J[g[;
Guidelines in Introducing Job Enrichment .
./ Is the widespread discontent among employees?
./ Is it economically and technically feasible to enrich the job?
./ Is there a natural unit of work?
./ Can the employee be given control over the job?
./ Does the employee perceive the job as meaningful to society?
~
Is there a reward for assuming increased responsibility?
./ Can performance feedback be given?

./ Is there some form of consumer identification?
./ If the enriched job requires the interaction of several employees, can compatible
employees be grouped together?
./ Is there some form of consumer identification?
./
If the enriched job requires the interaction of several employees, can compatible
employees be grouped together?

./ Is management style compatible with job enrichment?
./
Do employees want enriched jobs?
./ Is there union opposition to job enrichment?

../ Are some managers opposed to job enrichment?
./
Aie the jobs easy to enrich?
./ Is motivation central to the problem?
./ Is there an easier way?
./ Are compensation benefits and working environment/conditions satisfactory?

./ Is the job deficient in intrinsic rewards?
You have read and understand the four methods of job design.
Now you have to apply these methods to the situation below:
If you managed a fast-food franchise, would you increase pay rates or rotate, enlarge
or enrich jobs to decrease labour turnover and absenteeism?. Explain your answer.
HRM533
Introduction to HRM
SOCIO-TECHNICAL ENRICHMENT
Socio-technical enrichment emphasizes on the relationship between teclmology and

groups of workers. The purpose is to integrate people with technology socio-technical
enrichment usually involves the creation of self-managing or autonomous work groups to
perform a job that was previously done on an assembly line.
Autonomous work teams
Autonomous work teams represent job enrichment at the group level. They are
responsible for accomplishing defined performance objectives planning and decisionmaking are done within the group. The team will sets its won output and quality
standards. Team merilbers will elect their own leader or decide to make decisions
together. With this kind of grouping, team members are able to:
Rotate their tasks to enhance skill/variety

Work together on a product that is a whole identifiable piece of work
Relate to other members of the team
Decide as a group who will belong to the team and what task various members will
perform
Obtain feedback from other team members about their performance
Count on the assistance and support of other team members if an when needed.
Quality of Work Life (QWL)

Quality of Work Life (QWL) programs incorporate many principles of job enrichment
and socio-technical enrichrnen.t into a comprehensive effort to improve the quality of the
work environment. This program seek to integrate employee needs and well-being with
the organization,s desire for higher productivity.
In Quality of Work Life programs, management, the union and employees together
determine what needs to be done to improve the Quality of Work Life and employee
productivity. In other words, Quality of Work Life programs emphasize cooperative
relationships between employees, unions and management.
QUALITY CIRCLES (QC)
Quality circles (QC) were developed and refined in Japan in the post World War II years.
The concept is based on the work of-American quality experts Edward DeYnming and J.
M. Juran.
This quality circles attempt to overcome job specialization by giving employees the
opportunity to participate in the management of their jobs instead of modifYing the job
content.
INDUSTRIAL DEMOCRACY
Industrial democracy involves giving employees a larger voice in making the workrelated decisions that affect them.
Job Design
\3 Bl
wmmrn lHll m
,-:--/
tV-i
CHECKLIST

0
0
0
0
Explain what job design is.

Identify the various schools of thoughts that focus on job design.
States the approaches of job design.
Explaining the concepts of the various methods of job design.
Summary
Job design is the process of determining what tasks and work processes will compose a given job
or a given group of interrelated jobs.
In designing jobs there are varieties of approaches that can be considered - traditional and
modem job design.
The most common job designs are- job specialization, job enlargement, job rotation, job
enrichment, socio-technical enrichment, quality circles and industrial democracy.

Job
Job design
Social Information- processing model
Interdisciplinary approach
Scientific management approach
Job specialization
Motivation approach
Job enlargement
Sociotechnical system approach
Job enrichment
Human factors
Job rotation
1. Discuss the factors influencing job design. Give examples.
2. What are the differences between job rotation, job enlargement and job enrichment?
3. Explain how can job rotation reduce boredom among the workers? What is the major
drawback to its use?
4. Discuss of what value is the job characteristics model to work satisfaction.
HRM533
Introduction to HRM
NOTES:
HUMAN RESOURCE PLANNING

Imagine yourself in an organization \Yithout a vision. UnusuaL problematic'? An organization has to
decide what it wants to do or be at some point in the firture. It has to think whether it wants to expand
or to take advantage of a bigger market. To do this the organization need to focus on recruiting or
getting the right sort of people, in the right capacity and at the right time, To do this proper human
resource plmming need to be implemented. This chapter will focus in human resource planning and
attempts to discuss the following topics :
Definition of human resour-ce planning
The importance of human resource planning

Factors affecting Human Resource Planning
How human resource planning relates to organizational planning
Steps in the human resource planning process
Forecasting and methods of
f~Hecasting
human resource needs
The common pitfalls of human resource planning

Human resource planning is considered to be one of the most vital fimctions of human resource.
\Vithout it the right number and the right kind of people for the organization will not be able to be
jetermined properly and this will create discrepancy in the accomplishment of the organization-s
:Jbjectives.
HRM533
Introduction to HRM
Table of Contents
HUMAN RESOURCE PLANNING
87
Lc:tming Object ins:
88
~-1
Human Resource Pl:mning
89
~-2
Why is HRP important?
89
.t.J
Factors Affecting Human Resource Pl;tnning
Tl1c E:'l:tcmal Fit
lntcnml Fit
90
90
90
How tines I-IRP relate to Organizational Planning?
.t.S
The HRP Process
.t.6
Situ.ltional
93
AnaJ~sis
.t. 7
Forecasting
tv1ethods of forecasting HR requirements
95
95
.t.S
96
Methods for Forecasting HR Needs
M<Jnagerial Estimates
~-9
Delphi Teclmique
Sccnc1rio Analysis
96
97
97
Benchmarking
97
DcYelopment of Plans For Actions
.t.lO
The Common Pitfalls to HR Planning:
Summ;tQ
Ke,y Terms for RcYicw
Self-test
Learning Objectives:
Upon compJ.~~ion of this chapter, you will be able to:
1.
2.
3.
4.
5.
6.
7.
Define human resource planning

Identify the importance of human resource planning
Identi~- the factors affecting Human Resource Planning
Describe how human resource plaiming relates to organizational planning
Explain the steps in the human resource planning process
Define forecasting and describe the methods of forecasting human resource needs
Discuss the common pitfalls of human resource planning
&!Hi;;_:.-~
97
98
99
100
100
101
Human Resource
r-til
Planning~
4.1
mmmmnmm
To succeed, an organization must closely align their HR strategies with its environmental
opportunities and its own unique characteristics. Failure to do so will result in the organization not
being able to accomplish its goals and thus will Jose ground to its competitors. Human resource
planning is both a process and sets or plans. It describes how organization assess the future supply
and demand for human resources. Human resource planning will also provide mechanisms to
eliminate gaps that exist between an organization s supply of human resource and its demand. In
actual fact, HRP determines the numbers and types of employees to be recruited into the organization
and also determines the ones who are supposed to be phased out.
From the statement above, we can define HRP_ as the process of determining the human resource
needs of an organization an~ ensuring that the organization has the right number of qualified
people in the right jobs at the right time. The role of HRP to an organization is very important
because the long-term success of the organization ultimately depends on having the right people with
the appropriate talents, skills and desire are available to carry out organizational strategies.
4.2
Why is HRP important?
As mentioned earlier, HRP plays an important role towards the achievement of an organization-s
objectives. Thus the importance includes:
Jdent~6'ing
....
ldentW'ing H R constraints and Opportunities
gaps ben1-een current situation and rhefillure

If an organization has a goal of expanding its business to other parts of the world.
HRP can help identify the organizational needs \Yith regards to types of employees to
be recruited for instance and also the types of training required and other related HR
issues
HRP will help organization to identify its strengths and weaknesses pertaining to HR
functions. If for examp~e a compan.y decides to develop a new product. proper HRP
will help identify the companys potential employees \vith specific expertise or
identifying any weak areas the company might fhil w see.
...
Meeting OrganizC11ion Needs

HRP will sun'ey and evaluate the human resource needs of an organization
regardless at what stage the company is in. lf an organization's work volume
increases this past few :'ears for example, HRP will help the company in making
decisions whether is it feasible to employ more workers or is it wiser if the company
restmcture its management system to accommodJte for the increase'!
...
Helping to reduce turnover by keeping employees appraised c~f rhe career opportunities
within the company. rhrough succession planning
EDC
":2IJ
HRM533
Introduction to HRM
Reducing
1mnetvssm:r
human resource
I!Xflt'11.W!S
such as overflme.
om/ hiring eon
limcrs.
/Jiminanng 1rasred time by employees through a sound planning in employees joh

dt>sign
Creming Gooduil! and sense ofbelongingness

HRP developed through the effort of all parties in a company can help the comp;my
crc:ttc a sense of shared values and expectations from its members. l11is will surely
fOster yaJucs such as customer focus, innovation, fast gr0\\1h and cooperation.
ACTIVITY
List down other importance that you think would be of major concern to companies
to develop a ''ell planned HRP.
4.3
Factors Affecting Human Resource Planning
There are many f.1ctors affecting HR Planning of an organization. These factors may come either
from the internal or external environment. An organization is advised to consider these factors before
embarking into any plans including HR plans. An effective organization is the one that fits in with its
external and internal environments.
THE EXTERNAL FIT
External fit is a connection between a company's business objectives and the major initiatives
of HR. An example would be to resort to new innovations, thus the HR plans can inculcate
creativity and flexibility in its workforce composition. Another example is when the company
is aiming for low costs and greater productivity. The Hr can integrate and enforce efficiency
and reliability in its workforce which can be derived through good HR training plans.
INTERNAL FIT
Internal fit means that all HR practices must be aligned with one another to establish a
configuration that is mutually reinforcing each other: As an example, ail activities of HR
should focus on some behavioral targets such as efficiency and creativit:y.
Now, after understanding what the external and internal fit means to HR planning, let us look at some
examples of external factors that might cause unfitness (inconsistencies) to HR planning if they are
not considered carefully.
Human Resource
r-tjl
Planning~
The factors are :
mmmmumm
Workforce composition and Work Patterns

Most countries are experiencing drastic changes in their workforce patterns and
composition. We see a lot of women coming into the \vorkforce holding critical and
professional positions, which were previously monopolized by men. At the same time
patterns of living has also changed in the sense that people are valuing healthy living by not
wanting to work longer in a cooped up organization. They would prefer doing their work at
home or even sharing their work with somebody else. Because of this~ we see many
companies restructuring their organization whether rightsizing or even downsizing their
workforce. This decision will have an implication t_o a company's HR plans and careful
consideration has to be given on this subject.
Economic condition
A country's economic condition in terms of its interest rates. inflation rates as well as
economic growth will have an impact on companies' HR planning. They influence HR
planning activities such as decisions to hire part-timers~ to have overtime, wage and salary
decisions, hiring and even laying off workers.
Geogrnphic conditions
A country's net migration into an area, the availability of companies performing

similar businesses in area. employee resistance to a particular geographic location, direct
competitors coming from the same area or other countries and the impact of international
competition on the area ail have a tremendous impact in HR pJanning of any company. 1l1is
again will have an impact on HR decisions of hiring, salary and compensation. training and
even labor movement.
Other factors not mentioned here are equally imp.ortant. Your task is to identify and discuss \Yith
your instructors of other factors (intcmal and external) that might influence the HR planning process.
You can refer to Chapter two for some of the factors to be discussed.
ACTIVITY
\Vhat are the factors that you think are very important for the Malaysian Companies
ro consider especially their HR department when constmcting the HR plans.
The agility and the flexibility of a company tO\vards the environment can enhance its capability to
gain competitiYc advantage.
EDC
::EJI
HRM533
Introduction to HRM
The diagram below will hdp us understand the implication that internal and cxtemal factors might
have on a companys HR plans:
Financial and economic
environment
Current organization?!
situation
Organizational strategy
Culture of the
organization
4.4
L____.. Available"finailcial
~
HR;pl~riS and policies
resources
~>i-eC!uitmenL
_:::sel~t;_t,i.~n
.;. .
: :..training-
l____..
Need for HR
. .
.~
:: ~. A";Con1pensation:
. .,:.
1

aPR(aiSa,
. ... ~- ....""'
( quality and quantny of

~ worke~s/~kills/l~~eiS)
How does HRP relate to Organizational Planning?
To understand the relationship between a company's strategic or organizational planning and its HRP,
please refer to diagram in chapter one, the human resource planning process.
From the diagram, you will see that HRP in actual fact will provide the means(ways) for an
organization to achieve its strategic planning. Strategic planning of a company on the hand will
detennine the HRP needs(the demands for employees) which will then be compared with the
availability of HR in the environment both internal (within organization) and external (outside the
organization).
\Ve can also say that, the success of an organization's HRP actually depends largely to how the HR
department of an organization integrate effective people planning with the organizations business
mission or goals.
So. how can HRP planners help people from the other departments to accomplish a companys
business strategy?
l.
They can be familiar with the company's business strategy
2.
They must ensure that all traditional hurrian resource programs are satisfYing the
.
needs oftop management and the management as a whole
They must identify the human resource implications of organization's business
strategy
3.
4.
They must identify HR issues that may affect business objectives and notify the
appropriate functional manager
5.
They must convert business objectives into HR objectives that can provide the
foundation for HRP.
6.
They must also constantly review the strategic planning process to identify new
opportunities to involve human resource personnel
Human Resourcelql
Plannmg~
[8liJE][!]i][3[;
The di<Jgram shO\Yn nl.!xt may help us simplify the explanation above:
Figure -1.0.
the s/rml!g/C link herween a company's srrategic planning and HRP fimcrions
(Determine what business

organization will be in)
MISSION
~'
OBJECTIVES and GOALS
STRATEGY
(Matching skills. knowledge

abilities to required jobs)
PEOPLE
4.5
~~ rh~
proc.:ss
inYoln~
and
(Determining what jobs need to be

done and by when)
STRUCTURE
Now. k't us look
(Selling goals and objectives)
(Determine
how
goals
objectives will be attained)
the
and
in conducting HRP.
The HRP Process
Thcn.~ :11\; 111:111~
nays to c:xpktin how rhc HRP is being done. One ofthcml1Js already been dr:nfn in
thi.: frrst chaprcr. Thc orhcr onc. which is also interesting. is a sho\\n next.
f-Igure -1. 1 7'lle HRP Process
rfE
Define the skills and

~ expertis: re9uired to
\(; - meet ob;ect!Ves
I r{om:::>nrfc: fnr 1-10)
Determine tf1e impacr cf

__. orgamzational objectives
to! on specific
oroanizationai u::lts
1 Numbers and
2 .Reviewing job
descriptions and
specifications
~ Develop action plans to

""iT ___ ,, meet the anticipated HR
\.>
needs
Determine the additional
HR requirement in fight
of HR (Supply of human
resources)
3 Thorough analysis
Addition of staff or
Reduction of staff
of presently employed
personnel and forecast
of expected changes
Skills inventory
Management
inventory
characteristics of
employees should be
derived from the
objectives or the
company's strategic
plans
EDC
")III
HRM 533
Introduction to HRM
Figure -1.] .-/norher !IRP Process
- : 8TEP3 .; --
':STEP 1 and2.-
compan~d
STRATEGIC PLANNING . . . . HUMAN RESOURCE
.. ,
ui1h
~
HUMAN RESOURCE Supply
Demand
Technological Forecasts
Existing Employment
Market Forecasts
Annual Employment
Economic Forecasts
Organizational Planning
Investment Planning
Annual Generating Plans
Requirements
Numbers
Skills
Occupational
Abilities
inventory
"""' l
After application of
expected loss and
attrition rates
Variances _ _.\'0
_ ___..
!f'Surp~
_, 8TEP4
Decisions:
Layoffs
Retirement
Reduced work
~rrage
Decisions:
Overtime
Retirement
Subcontracting
Leasing
hours
END
END
END
As you can seeo both diagrams highlights the four main phases to Hr platming which are:
+ Situation analysis and environmental scanning
+ Forecasting demand for human resource

+ Analysis of supply of human resource
+ Development of plans for action
The next section will briefly describe the above phases.
4.6
Situational Analysis
A situational analysis is a point in which the companys strategic planning is aligned with its
HR planning by considering the internal and external factors discussed earlier. In involves
environmental scanning to see what is happening outside the organization and to see whether the
current company" s state needs improvement or not. As an example~ with the rapidly changing
technology nowadays, companies need to be able to hire and attracts the best candidate with the most
recent skills and knowledge in the market Not being able to do so will result in losing business to
other companies.
HumanR~u~~
Planning~
4.7
mmmmomm
Forecasting
An effective HRP will require forecasting . Forecasting will use information from the past and
present to identify expected future conditions. The information gathered from external environmental
scanning and assessment of internal strengths and weaknesses is used to predict or forecast HR supply
and demand in light of organizational objecti~~s and its strategies. Forecasting has two phases:
Forecasting Human Resource Requirements ( Demands)

An estimate of the numbers and kinds of employees an organization will need at future dates
to realize its stated objectives. When conducting this process company needs to align its
demands for employees with what the company would want to accomplish(goals) and its own
characteristics such as the availability of funds~ expertise and others.
Forecasting Human Resource Availability (Supply)
A process of determining whether a fonn will be able to secure employees with the necessary
skills from within the company, internal or external sources. This process on the other hand
must take into consideration factors such as composition of work force, individuals
graduating and leaving work force, economic forecasts for the next five years, government
regulations and pressures, actions of competing employers as well as factors influencing
persons from entering and leaving the workforce.
METHODS OF FORECASTING
HR REQUIREMENTS
To forecast the HR requirements, the following techniques can be applied:

I.
Skill Inventory
Skill inventory is a consolidated list of biographical and other information on ail
employees in the organization. It provides basic infom1ation on employees such as
list of names, characteristics and skills. It is often used as a basis for promotion and
transfer decisions. Normally, a skill inventory should contain the foliO\ving:
Personal data of emplo:yees such as age, gender, marital status

SkiJJs acquired such as education. job experience and training
Special qualifications such as membership of professional groups or awards for
special achievements
Salary/job history
Company data such as benefit plan data. retirement infornmtion and seniority
status
Capacity of individual such as test scores. psychological and other tests like
health infommtion
Special preferences of individual like geographical location and the type of job.
EDC:EJ
HRM533
Introduction to HRM
2.
Management Inventory
Management inventory is a brief assessment of a manager's past perfommnce, his/her
strengths. weaknesses and potential for advancement. It is a specialized type of skill
inventory designed for the managerial level
Both management and skill inventories serve the same purpose that is to note '"hat
kind of skills, abilities, experiences and training the employees currently have. By
having these inventories, companies may keep track of employees development and
to detect whether a particular skill is Jacking or even a new technology should be
introduced. Besides as a tool to forecasts employees requirements, skill and
management inventories are also useful for career planning progr:uns and other
related activities.
Other techniques include succession planning. Organizational replacement chan ( ORC ) and
co111Jllitment manpower and planning.
ACTIVITY
'lour tasks now will be to:
a)
b)
4.8
Find the definitions for succession planning, ORC and CMP.

Find the uses of each in helping to forecast a company's HR requirements.
Methods for Forecasting HR Needs
Methods to forecast HR needs are as follows:

a)
Managerial estimates
b)
Delphi teclmique
c)
Scenario Analysis
d)
Benchmarking
e)
Time series Analysis
f)
Personnel Ratios
g)
Productivity Ratios
h)
Regression Analysis
We will explain four of the techniques mentioned.

MANAGERIAL ESTIMATES
Judgemental method of forecasting that calls on managers to make estimates of future

staffing needs. (done by top management other management levels)
Human Resource
lljl
Planning~
[B[[]E][j]IJ[!][;
DELPHI TECHNIQUE
A judgemental method of forecasting that uses a panel of experts to make initial independent
estimates of future demands. An intermediary then will present to each expert's forecast and
assumptions to the other members of the panel. Each expert is then allowed to revise his/her
forecasts as desired. This process will continue until some consensus or composite emerges.
SCENARIO ANALYSIS
Using workforce environmental scanning data to develop alternative workforce scenarios.

Brainstorming sessions are held with line managers/ HR managers who shall forecast what
they think their workforce will look like in 5 or more years into the future.
Once the forecasts are crystallised, the managers than work backwards to identify any key
change areas/points.
This technique encourages open discussion and creativity.
BENCHMARKING
Thoroughly examining internal practi"ce and procedures and measuring them against the ways
other successful organizations operate.
By using this technique, an organization can learn what other successful organizations are
doing.
Do you know the other techniques listed above??
4.9
Your next task is to gather as much information of the techniques not

explained above. You can ask for assistance from your seminar facilitator or
your learning facilitator. If you remember well, we discussed these
techniques in an earlier Business Management course.( MGT 510/ 420)
Development of Plans For Actions
1l1c lp.st process in HRP will be to develop the best action plan to meet the organizational
goals. TI1e plans may be to recruit more workers or other alternatives if the company is
facing a problem. This section will be further discussed in the upcoming chapter. that is
rccmitment. A company, however, need not always resort to recmitment because there are
alternatives available for the company to choose from. This again will be covered in the next
chapter.
No matter how well a plan is developed, there are several obstacles that need to be overcome
or minimize. This is discussed in the next section, the common pitfalls to HR planning.
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Introduction to HRM
4.10 The Common Pitfalls to HR Planning

I.
Sponsorship by top management

To be Yiable in the long runo HR planning must have the full support of at least influential
senior executives. This is to ensure support. resources, visibility and cooperation.
2.
Size of the initial Effort
To succeed HR planning must start slowly and gradually expands. To do this the skills
inventory and the management inventOI)' must be properly de,eloped besides utilizing
the replacement chart.
3.
Coordination with other departments and other HR functions

Communication and coordination especially with other departments is a must. Failure to
do so will lead to inaccurate HR planning. The advise is to not to be too absorbed or too
preoccupied with your own department or responsibilities to the extend that you forget to
interact with the other departments of similar importance.
4.
The identity crisis

HR planners cannot avoid themselves from working in an environment characterized by
ambiguous regulations~ company politics and diverse management practices and styles.
Therefore~ they need to develop a strong sense of company s mission to be effective.
5.
Non-involvement of operating managers
Successful HR planning will require a coordinated effort on the parts of operating

managers and other personnel.
Lastly, the objective of HRP regardless of any organization is to balance the forecasts of future
demand for workers and the supply for human resources both current and future. The ultimate role
will be to help organization to identify any shortages of workers either by skills or type as well to
identii)' overstaffing of employees that may exist.
Human Resource
l"ljl
Planning~
Summary
mmmmumm
Definition
Human resource planning is defined as the process of detennining the human resource needs
of an organization and ensuring that the organization has the right number of qu:1lified people
in the right jobs at the right time. Human Resource planning will help organization to
identif} its demands and supplies of workers as well as meeting organizational needs.
Relationship between HR planning and Organizational goals

HRP will help companies to align its strategic planning with its HR planning since HR
planning serves as means to accomplish organizational goals.
The HR planning process

The HR planning process involves four important stages and they are:
a) Situational analysis and environmental scanning
b) Forecasting demand (Dd) for human resources
c) Analysis of Supply (Ss) of human resources
d) Development for plans for action

Forecasting
Forecasting is defined as the process that uses information from the past and present to identify
expected :fi1ture conditions_ Human resource planning will require forecasting to be done. There are
two types of forecasts and they are forecasting of human resource requirements and the human
resource availability. Methods of forecasts for human resource requirements include skill and
management inventories, succession planning, replacement charts and commitment manpower
planning. On the other hand. methods to forecast HR needs are managerial estimates, Delphi
technique, scenario analysis, benchmarking, time series anal:ysis, personnel ratios, productivity ratios
and regression analysis.
To succeed in the business world, organizations need to properly implement their HR planning
process. The primary goal of HR planning is to avoid overstaffing and to eliminate shortages of
workers. If these two problems are prominent in many organizations of a country, the result will be
either a very high unemployment rate which will disrupt the countrys economy or will hinder the
development or progress of a country.
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fntroducUon to HRM
~CHECKLIST
Arc you able now to:
.0
Define of human resource planning

Explain the importance of human resource planning
Identify the factors affecting Human Resource Planning
Describe how human resource planning relates to organizational planning
Explain the steps in the human resource planning process
De tine forecasting and describe the methods of forecasting human resource needs
Discuss the common pitfalls of human resource planning
Key Terms for Review
Human resource planning
Management Inventory
Intemal Fit
Managerial Estimate
External Fit
Delphi Technique
Forecasting
Scenario Analysis
Skill Inventory
Benchmarking
Self-test
Answer either True _:False.
I.
An employee skill inventory may include training courses completed and performance
appraisal result.
2.
The process referred to as a strategy to fill any or all of the firm's futnre positions are
selection.
3.
In forecasting persormel requirements, comparing two factors, a measure of business

activity and staffing levels is a ratio analysis.
Human
4.
Management inventories usually contain assessment of the
Resourcer-tj"l
Planning~
mmmmumm
manager~s
past perfonnance,
strengths and potential for advancement.
5.
6.
Human resource planning must be conducted independently from an organization's

strategic plan to assure its accuracy.
Human resource planning requires a joint effort between the HR staff and individual
operating managers.
7_
Human resource planning is sometimes called workforce planning.
8.
The process in which the organizational strategy of the organization is related to human
resource activities is called strategy linked HR planning.
9.
The HR planning process should include detennining the difference between existing
personnel and needed personnel.
10.
One of the methods of workforce reduction is through promotion.
Discussion Q u es ti on s """""""'""'""""'"""'""',........,....."""....,"""'"'""""""'"""'.""'""""'""'''""""'
1.
How is it possible to accomplish a good human resource planning'?
2.
\Vhy is HR planning important to an organization?
3.
Develop a framework to explain the relationship between a company strategic planning

and its HR planning.
4.
\Vhat altemative does an organization have when it has a problem of shortages of workers
or surplus of workers?
5.
DeYelop a framework behveen a company's strategic planning and its HR plmming

process.
6.
\Vhat arc the common barriers of HR planning as experienced b:y HR managers'?
7.
\Vhat arc the advantages ofHR planning to the organization?
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HRM533
Introduction to HRM
jJ
I.T
2. F
3. T
~.
5. F
6. T
7. T
8. T
9. T
JO.F
Answers to self-test
THE RECRUITMENT PROCESS

As previously mentioned in Chapter Four, HR planning wil1 determine the number of people an
organization needs at the right place and time. The next important HR fimction any HR department
should perform will be hiring of the best candidates to fill in available positions. This is called the
staffing process or the hiring process. The staffing process has four important components and they
are: job analysis (chapter three)~ recruitment, selection and socialization or orientation. This chapter
will concentrate on recruitment followed by selection and orientation in the fo!Iov.-ing chapters.
Definition of recruitment
Job Analysis
The challenges to the recruitment process

RECRUITMENT
Staffing Process
Selection
The recruiting process: who does it, how it

is done, and the sources to recruits.
Alternatives to recruitment
Socialization or
Orientation
Staffing the organization with the best candidate is very important to ensure accomplishment of
organizational goals. Staffing the organization with the wrong employee \\'ill lead the organization to
unwelcome results. Among them will be the inability of the emplo:yccs not to be able to perform jobs
as expected. productivity decline, dissatisfaction, high turnover rates and even high absenteeism.
Emplo:yccs will tend to leave the organization and eventually HR department will be again
responsible to tind for replacement. Because of this, proper recruitment process is cmcial.
HRM533
Introduction to HRM
Table of Contents
THE RECRUITMENT PROCESS
103
Lcarnin}! Objectives
10~
5.1
105
The Rccmitmcnt Process
Definition
!05
5.2
The Chotllcngcs to the Rccmitment Process
106
:'.3
Tin Pmccss
!06
!06
The Personnel Requisition Form

S..t
The Sources of Qualified "'orlcrs
!merna! Sources
108
!OS
E:xtenml Sources
]()9
The Adnmtages and DisadYantages of Recruitment Methods

Effecti\cness OfTilc Recruiting MetllOds
112
A.ltcnl;tti\'Cs to Recruitment
Ill
113
114
115
Self-test
115
116
Learning Objectives
Upon completion of this chapter, you will be able to:
l.
Define recruitment
2.
Discuss the challenges to the recruitment process
3.
Describe the recruiting process: in terms of who does it and how it is done.
4.
ldcntify the sourCes to recruits.
5. Discuss the different a1tematives to recruitment
The Recruibnentr-;;::l5
Process~
mmmmumm
5.1
In chapter three, we studied the importance oflfR planning in identifying a company's needs and
requirements. Effective HR planning will eventually lead into recruitment.
DEFINfTION
Recruitment is a process conducted by a company's HR department in attempting to

locate and encourage potential candidates to apply for existing or anticipated job
openings. It is also known as an activity that will influence interested and potential
candidates to apply for any job openings suitable to their qualification and needs.
Recruitment has a direct relationship with a company, s HR planning, job analysis and its selection
process. Recruitment must be done properly to ensure that a company will not have a problem of
labor shortages. Jn Malaysia, currently, we see a problem of recruiting workers especially in the
highly skilled areas. Thus, companies who engage in business operations requiring these skilled
workers need to have an effective recruitment process so that they will be able to compete with other
companies in the similar business line.
The diagram below, will show to you how is the recruitment process is related to job analysis, HR
planning and the selection process.
Fig.5.1
Relationships BeMeen Job Ana(vsis, Hr Planning, Recruitment And Selection
Job analysis
(Nature and require~t of
specific jobs}
\
HR planning
(Number of specific jobs to be
filled)
Job description
From the diagram we can see that recmitment will first begin with the job analysis An analysis is
done on jobs in an organization to determine the nature and requirement ofjobs of an organization. It
is then foiiowed with HR planning of which its main purpose is to forecast and plan for the number of
jobs to be filled. Then, recmitment \viii come into the picture to identify the pool of candidates
qualified to fill in vacancies. Recmitment will answer questions such as how will the recruitment be
done, from which sources will the candidates be taken from, ''"ho \Vill be doing the recruiting and
many other fimctions. After that. selection will then determine the most appropriate candidates to fill
in positions offered.
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5.2
The Challenges to the Recruitment Process
As previously mentioned the rccmitmcnt process comprise of several major activities. Rccmiting the
best candidates will result in a tremendous contribution to an organization.
Why'>
The reason is the best candidates will influence the organization s p~rformance. On the other hand, if
recruitment is not done properly, problems will occur. Among them will be unqualified workers
having to require close supen,ision and direction, additional training \Yill be needed, more costs will
incur and many other problems. All these reasons will finally sum up to the most important
conclusion that is recmitment must be done effectively. However, to do so. recmiters have to
undergo many obstacles and they are:
Determining which characteristics that differentiate people are most important to performance
Measuring those characteristics

Evaluating those characteristics
Deciding who should make the selectit?n decision
Besides these challenges, companies are also facing challenges coming from their internal and
extemal environments such as the government and union restrictions. the labor market conditions, the
composition oflabor force and the location of the organization.
ACTIVITY
Can you describe how is the composition oflabor force and the organization's
location affecting the decisions made by an organization with regard to its
recruitment activity in the Malaysian context?
5.3
The Process
(How it is done and who does it?)
THE PERSONNEL REQUISITION FORM
A full picture ofhow recmitment is done has already been shown in the first chapter. You
are advised to frequently refer to the diagram in order to understand the recruitment process.
Another simplified diagram is shown below to aid you to understand the recruitment process
better.
The
Recruitment~5
Process~
rammmomm
Human Resource Plan
On-going General Recruiting Visibility
Using Requisition, Manager will notify HR unit of any openings
HR recruiter and manager will review jobs and needed quali~cation
Internal sources are checked such as through job postings and promotions
External sources are then used
Selection Process takes over
Follow-up and evaluation and relationship with the HR plan
Most organization, in initiating the recruitment activity, wi11 use a Personnel Requisition Form to
officiaHy request that the HR manager of a company take action to fill in particular positions. In
other words, the form will describe the reason for the need to hire a ne\v person and to identify the
requirements of the job. A sample of the form is shown in the next page.
In most organizations, the HR department is responsible for recruitment. The HR department
normally 'viii have a special unit in charge of recruiting. This unit will have experienced recruiters,
interviewers and clerical staffs who will handle recruitment activities such as making advertisements.
answering phone calls and many other activities especiaJiy \\'hen the recruitment is done outside the
company. The role of the rccmitment personnel is very important. This is because he/she will be the
first person that interested applicants will contact. lf an applicant is mistreated~ he/she wili develop a
lasting negative impression about the company and vise versa. Therefore, companies must make a
point to have their HR personnel to be trained in communication and interpersonal skills.
Recruitment c:tn also be done away from an organization. Here, the roles of the recruiters remain the
same as when they are doing recmiting in the company. Job applicanfs impression about the
organization is going to be influenced by the knowledge and expertise of the recruiter. Jn smaller
organi~tions. the rccruitmCJ_1t is done by one person or sometimes is done by the line managers.
Next, is to identifY the sources of qualified workers.
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5.4
The Sources of Qualified Workers
Any organization. which has vacanciL:s to otTer. may till the vacancy either with someone already
employed by the organization (rccmitmcnt from within} or with someone from outside. Each of these
sources has their own ad\'antagcs and disadvantages.
INTERNAL SOURCES
Filling in \'acanciL:s with employees currently employed by an organization is also known as

rccmitmcnt from within. Normally this rccmitmcnt procedure is a result of companys
operation expansion or due to rising number of employee exit. The methods for recruiting
from within arc like computerized record system. job posting and bidding and employees
friends.
CompuTerized Record S)srems
Computers have made it possible for personnel records to be well kept.
The
personnel records are kept in data banks. These data banks may contain complete
reco_rds of all employees pertaining to their qualifications, skills, abilities and many
others. These data banks will allow the organization to screen its entire workforce in
minutes and thus will enable it to locate and identify suitable candidates to fill in
openings. HoweveL it is sometimes difficult for HR managers to be always on the
alert to identif~; and to locate suitable candidates. Another method of internal
recmitment will help minimize the problem. The method is called job posting and
job bidding.
Job Posting and Bidding

Job posting and bidding is a method of internal recruitment where company bulletin
boards or company publications will serve as posting or advertising center for any job
Openings. It is a method of informing employees of job vacancies put in central
locations and employees will be given specified period of time to apply for the job.
Lately, postings are computerized and they are easily accessible to employees.
Sometimes, organizations may choose to advertise job openings on a worldwide
electronic system.
A good job posting and bidding should follow this guideline:
Promotions and transfers must be posted

Openings must be posted for a specified period of"1ime before e"iemal
recruitment begins
Rules should be developed and communicated. An example will be the length of
service required for application of openings.
Specific standards for selection should be included in the openings
Job bidders should be required to include in their qualifications and state reasons
for transfers or promotion
Unsuccessful bidders must be notified by the HR department and inform them of
reasons of why they were unsuccessful.
The
Recruitment~5
Process~
mmmrn nen;
Employee's friends (Employees recommendations)
One of the best sources for individuals that can perform a job is reconunendation
from a current employee. Normally when you recommend a person, the person's job
will somehow or rather reflect on you. Therefore, you shall recommend a person that
is really good. Fwtherrnore, the rer:::;on who recommends will give the applicant
more realistic information about the job thus this will reduce unrealistic job
expectations and will e.xtend job survival rate. This method is very good in locating
potential employees in hard to fill positions. An example will be trained or qualified
nurses with specific skiJJs required.
EXTERNAL SOURCES
Besides recruiting employees from within, a company may also find potential candidates
from the external sources. E:xtemal recruitment is needed in organization that is growing
rapidly and when it needs a large number of technical, skilled or managerial employees. The
methods and sources for external recruitment are advertising, employment agencies~ campus
recmitment. Internet or cyberspace recruitment and unsolicited applicants.
Advertising
One of the most widely used methods of external recmitment is through

advertisement. Here, job openings are advertised through advertisements in popular
daily newspapers, on trade and professional publications or in radio and television
and even billboards. Job advertisements must be properly prepared. The right media
must be identified and chosen as well as analyzed for its impact aftenvard.
Advertisements must also not violate any rules and regulations by indicating
preferences for a particular race, religion, gender or a particular place of national
origin.
ACTIVITY
You are required to develop a job advertisement for the position of a management
trainee in your local newspaper.
J::mployment Agencies
B~sides advertising, both public and private employment agencies can also be good
sources for external recmitment. Individuals who are unemplo:ycd or have become
unemployed can register with these hvo agencies. The agencies role will be to refer
these employees to employers with job openings. Besides finding jobs to those
unemployed, employment agencies also offer other services such as vocational
counseling, aS -.weH as training on how to apply and be interviewed for a job. The
difference between a public and private employment agencies is the fees charge b~_.
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Introduction to HRM
the latter. The fees charged will cnJblc the pri,atc employment :tgcncics to tailor
their services to the specific needs of the their clients. Tht.: fees paid can either come
from the employer or the employee or both. Generally. howcycr_ it is the job seeker
"ho wi II pay the fcc.
Ewcutive Search Firms

The executive search firm is a type of private employment agency. This firm is also
knmYn as the headhunter. The headhunters normally concentrate on getting or
seeking candidates for positions with salaries of $50,000 or more. Their aim is to fill
higher-level vacancies or managerial positions. Executive search firms are paid fees
and they are paid by the organizations that are seeking the candidates. The firms arc
being paid regardless they are successful or not. The fees charged are normally more
than what the other employment agencies are getting. Another important feature of
the firm is that it will maintain the confidentiality of the recruiting organization as
well as the person who is being recmited.
Campus Recmiring
Campus recruiting is recruitment activities carried out by employcrs on college and
universities. lt is usually a joint effort between the college s placement center and
public or private organizations. Here. the organizations will send recruiters to the
campus for initial interviews. The best or qualified recn1its will then be invited to
visit the office or plant before ~ final emplo:'ment decision is made. College
recruiters generally will review an applicant's resume before conducting the
interview. Recently. another campus recruitment method through cooperative work
programs is becoming popular of late. These programs will have students working as
part-timers while going to school in the day or night. 1l1ese programs attract people
because they provide opportunity for both formal education and work experience.
Furthermore, as a fonn of incentive, these students are often promoted upon
completion of their studies.
lnternets or cyberspace recntilment

Recruitment can also be done via net. It is considered to be one of newest method of
recruitment. Recmitment through Intemets will allow greater diversity in skills,
abilities and knowledge. A wider exposure to potential candidates can also be
obtained. Unemployed individuals or job seekers can post their resumes in the net
(organization's websites) and if they are qualified may then be notified and called for
interviews. The lntemets are considered to be one of the major recruitment methods
in the future.
Unsolicited Applicants
Unsolicited applications whether through write-ins or walk-ins constitute a major
source of prospective applicants. However~ this nature of recmitment is sometimes
short lived because the job seekers tend to look for positions that suit them the most.
However, in times of economic stagnation, this method seems to be the most popular
and companies will not have a problem in getting qualified candidates.
The
Recruitment~S
Process~
mmEHD umm
THE ADVANTAGES AND DISADVANTAGES OF RECRUITMENT METHODS
The advantages and disadvantages of the recruitment methods is highlighted in the

table below:
Internal Recruitment
Advantages
Disadvantages
Morale of internal staffs

Better assessment of abilities
Lower cost for some jobs
Motivator for good performance
Have to hire only at entry level
Job candidate has a better knowledge
Of the company
Inbreeding, no innovations
Morale problems of those not
promoted
Political infighting for
promotions
People may be promoted
to the point where they
cannot successfully
perform the job
Better return on investment of present

Workforce
External Recruitment
Advantages
Disadvantages
The pool of candidates is larger
Attracting and evaluating

potential candidates is harder
Adjustment and orientation
time is longer
New insights and perspectives

Cheaper, easier to hire technical
skilled, or managerial employees from
outside.
No group of political supporters in organization
already.
ACTIVITY
List down other advantages ot disadvantages you might have which are not listed in
the table above.
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Introduction to HRM
EFFECTIVENESS OF THE RECRUITING METHODS
The aim of organiZ<ltional recruitment is to bring a pool of talented people and to select the
best to work forth.: company. To know ho\v effective each method will bring is not an easy
task. However, the points below will help recruiters to identify which recruitment method
will meet their desires:
'l'he quamiry q{app/icants
The method chosen must be able to meet this objective if it is one of the goals of the
recruitment process of the organization. The recruiters must ask themselves whether
the methods that they are using are sufficient or not in attracting a large pool of
candidates.
,ll4eering Equal Employment Oppormniry Goofs
In countries in which this act is practiced, the methods chosen must be able to meet
the goals for hiring protected -class individuals.
Quality ofApplicants
Besides quantity, quality of the applicants is also very important. The methods used
must be able to highlight the qualification and the skills required.
Cost Per Applicant Hired

Costs will vary depending on the position being filled. Knowing hmY much it costs
to replace a worker or to recruit a worker is very important. It is useless if an
expensive recruitment method is used but the result is not of \Vhat is expected.
Time Required and Speed

Another important factor to consider when choosing recmitment methods or sources
\Vill be the time required and speed in filling in a vacancy.
In summary, it can be said that the effectiveness of various recruiting methods and
sources will vary depending on the nature of the job being filled and the time
available to fill it. However, not doing the evaluation will cause ineffectiveness to the
organization.. Therefore, to help the organization increase the effectiveness, the
company can use a method called Realistic Job Previews (RJP's). A realistic job
preview is a method of providing compJete iniormation, both positive and
negative to the job applicant.
A realistic job preview can reduce new emplo)ee turnover. A realistic job preview
can help set job expectations realistically. It may show to the applicant whether the
job he seeks may or may not be attractive depending on his needs. lt can help
confirm expectations. At the same time RJP's will create satisfaction __ when
applicant's needs matches with the job he applied. A realistic job preview will also
generate higher job survival, satisfaction and reduced frequent thoughts of quitting.
The Recruitmentr-;;:l5
Process~
mmmmDmm
5.5
Alternatives to Recruitment
Job openings or vacancies do not always result in recruitment. An organization~s J-ffi. may suggest
that other alternatives be used such as employing part-timers, introducing overtime. leasing
employees or eveP requesting for independent contractors. These alternatives will be chosen if the
cost of recruitment 1tself is very high or even when the vacancy is not permanent in nature.
Overtime
Overtime is popular when a company faces pressures to meet production goals. Employees
of a company will be required to extend their working hours beyond their normal ones.
Overtime is a way to provide employees with additional income. However, there are some
disadvantages associated with overtime. They are increased accidents due to being tired,
increased absenteeism and even increased in health problems.
Employee Leasing
Employee leasing is sometimes cal1ed staff sourcing. It involves paying a fee to a leasing
company that handles payroll, employee benefits and other routine HR management
functions for the client company that is employing it services_ This method is very popular to
a small or medium sized company that cannot afford to have and to maintain its own HR
department l11e leased employees are well-trained individuals. They are normaii.Y screened
by the leasing firm, trained appropriately and sent to organizations that require their services.
From the employ'ees point of view, working this way allows more freedom and flexibility
since they can work for the length time they desire at different times.
Part-Timers or Temporary Help Services
Part-timers are individuals who are hired on a temporary basis_ This type of employees is
very much needed when a company is experiencing peak sales for example, during the festive
seasons_
Temporary help services are used to accommodate short-term fluctuations in HR management needs.
Previously temporal) help services were developed in the office administration area, but now their
services have expanded to broad range skills such as nursing, computer programmers, secretaries and
technicians. One good source for temporary help services is by- employing older citizens who have
already retired or being laid off due to downsizing of their former organizations. This older \Yorkers
have a lot of experience that can be shared.
Independent ContracfOrs
Another alternative to recruitment is the use of independent contractors. Independent

contractors are also ca:Jled consultants. These consultants may do their work at a specific
location or they may do them off the company's premises. This is done through the help of
computers: fax machines and other equipment.
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To sumnKlrizl:. recruitment is ::1 process that has to be done c::trcfully. This is because: the data ::tnd
information collected during this process will be an input to the next process in line, th::tt is selection.
If the wrong people arc anractcd, therefore, the whole selection process will also be implicated.
Summary
I.
Rccmitment is defined as a process conducted by a companys HR department in

ancmpting to locate and encourage potential candidates to apply for existing or
anticipated job openings.
2.
Recruitment is f.:1cing many challenges coming from both intemnl and external
environments.
3.
The recmitment process starts with the personnel requisition form. followed by noti:Ying
the HR units of job openings. Then the HR recruiter together \Yith the line officer will
review jobs and the qualification required- to fill in those jobs. Recmiters than will seck
applicants either from the internal source or the external source. Internal source of
recruitment is also considered to be promotion from within. The applicants for job
openings will come from the organization itself. External source to recruitment on the
other hand is attracting job seekers outside that do not come from the organization but
from sources like collegeso employment agencies and many others. Then~ the selection
process will take over.
4.
Job vacancies do not always resort in recruitment. Other recruitment alternatives can be
considered and they are cmployee leasing, employing part-timers, asking for temporary
help services and independent contractors.
. / CHECKLIST
Are you able now to:
Define recruitment
D Discuss the challenges to the recruitment process

0
Describe the recruiting process: in terms of who does it and how it is done.
Identify the sources to recruits.
Discuss the different alternatives to recruitment
The
Recruitment~5
Process~
mmmmncn;
Recruitment
Overtime
The Personnel Requisition Form
Employee leasing
Internal Source
Part-timers
External Source
Temporary Help Services
Computerized Record System
Independent Contractors
Job Posting and bidding
Employee's Recommendation
Advertising
Employment Agencies
Executive Search Firms
Campus Recruiting
lntemets /Cyberspace recruitment
Unsolicited Applicants
Realistic Job Previews
Self-test
Answer either True tFalse.
1.
Extemal recmiting of employees is often the biggest source of recmits.
2.
Many employee committed firms have comprehensive promotion from within programs.
3.
Internal recruiting and job posting can be central to a firm's efforts to boost employee
turnover and transfer.
4.
Line and staff cooperation

selection.
5.
The HR specialists who recruits and initial1y screens the vacant job is also responsible for
supervising the employee's perfonnance.
6.
Placing help wanted advertisements m newspapers can be a good source of top

management personnel.
7.
1l1ere are two types of employment agencies: those operated by the government and
privately owned agencies.
IS
essential m the area of recruitment. however not with
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Introduction to HRM
8.
All employment agencies require c~ndid=ttcs to make thcmsciYcs aYailrtblc for job
intcr\'icws in order to collect their unemployment payments.
9.
A trend today for many tim1s is to hire pcnn:mcnt \YOrkers.
I0.
The local newspaper is a good recmiting source top management.
I.
\Vhat roles do job description and job specifications play in an effective recmitment
program?
2.
Discuss the recruitment process.
3.
Discuss how internet has changed recruiting.
4.
\Vhat arc the strengths and weaknesses of promotion from within as a recmitment
technique?
I.
2.
'
5.
6.
7.
F
T
~-
F
F
8. F
9. F
10. F
THE SELECTION PROCESS

Selection will be the next process follmving recruitment. As previously mentioned, recruitment is
very important towards an organizational success. Selection is also of the same level of importance.
If a company does not engage in an effective selection process, the implication will be on the overan
performance of the organization. Bad selection practices may cause the company to face may
lawsuits and not being able to compete with other companies. This chapter aims to discuss the
importance of selection and describe how selection should be conducted in a company
Job Analvsis
Recruitment
Staffing Process
c__ _ _ ____l- --jc__s_E_L_EC_T_IO_N_
Definition of selection
Selection Standards
_,
.
Validity and Reliability
Socialization or
Orientation
The Selection Process
HRM533
Introduction
co HRM
Table of Contents
THE SELECTION PROCESS
117
Learning Objectives
118
6.1
Selection
Definition
119
119
6.2
Selection Standards
119
6.3
\Vh:n is Validity?
121
6.4
What is Reliability?
Predictor or predictors'!
122
\Vho administer the selection process and what factors must be considered?
6.5
Legal considerations
Selection responsibilities
123
6.6
124
122
123
123
Sum mat)'
134
135
Self-test
135
136
Learning Objectives
I.
Define selection
2.
Explain what is meant by:
Selection criteria
Selection predictor
3.
Describe the selection process
4.
Discuss the various methods of selection
THE~
SELECTION
PROCESS
mmmmnmm
6.1
Selection
DEFINITION
Selection is defined as the process of choosing individuals who have relevant

qualific~tions to fill jobs vacancies in an organization. A successful se!e("tl.on procedure
implemented by an organization will result in a job fit or a job placement. Job placement is
fitting a person to the right job suitable to the qualification he/she possessed.
Selection serves some importance to an organization and they are:
Enhancing productivity of an organization
If selection is properly done, the organization may be able to have committed and loyal
employees who are wiUing to work hard and thus wi11 enable the company to enhance its
productivity and meeting its goals.
Reducing turnover and absenteeism and enhancing performance

Employees who fit well to their jobs tend to be absent less and will not run out or walk
away from the organization. Their performance will also tend to be effective since there
are happy and satisfied with the company they are working for.
Gaining competitive advantage over other companies

Satisfied and happy workers will indirectly influence the level of performance the
employees contribute to the organization. If the level of perfonnance increases,
productivity indirectly will increase as well thus the company will be able to compete
with other companies. Besides that, employees who fit well with their job tend to be
more innovative and creative and are more \Yilling to accept challenges. Innovativeness
and creativity is needed in every organization to remain competitive.
6.2
Selection Standards
What are the selection standards?

Selection has a vjtal role in the HR management process. This is because selection can be seen as a
matching process that matches the gaps between employment skills and requirements ofthe job. Jfthe
gaps are wide between these two factors, appiicants will be rejected. Selection is important to ensure
the right people are put in a job. How well an employee is matched to a job will affect the amount
and quality of the employee's work. These inadequacies will further create problems in training and
increase expenses. \Yorkers who are unable to perform will cost the organization a great deal of time
and money wast~.
To ensure tl1is not to happen. selection standards must be chosen carefillly. So what are the selection
standards that company has to use for its selection procedure?
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Introduction to HRM
The standards are:

.",i.dection criteria
5.
TI1e standard that is very important to ensure that an employee can perform the job successfully.
It comprises of sets of cl1aracteristics needed for an individual to perfom1 his/her work
successfully.
Selection Predictors
6.
Selection predictors are measurable indicators of selection criteria.
An example of how these two are used are shown below:

Fig. 6. 1 L~"e ofSelecrion Criteria and Selection Predictors
Elements of Job
Performance
Quantity of work
Quality of work
Selection Criteria
for employees who wilf
Meet performance goals
Predictors
of selection predictors
Ability
Experience
Motivation
Past performance
Compatibility of others
Intelligence
Physical skills
Presence of work
Conscientiousness
Education
Length of service
Appropriate risk
For employer
Interests
Flexibility
Appropriate
Permanence
Qualification
Test scores
Work reference
Tenure on previous job
Previous job held
Drug tesUPolice record
Now, to allow an accurate prediction of the right candidate to a job, the HR selection personnel must
satisfy several requirements: the validity and the reliability of the selection procedure and process. At
the same time, the standards must also be job related.
THE~
SELECTION
PROCESS
[B[iJE][!][IrJ][g
6.3
What is Validity?
Validity refers to what a test or other selection procedures/methods measure and how well do they
measure them. lt is how well the selection criteria predict job perfonnance. In other words, if tests
are used for selection, then the !ests scores must relate to the success on the job. There are various
types of validity and they are:
Content Validity
It refers to the correspondence between the behaviors measured by the test and the behaviors .
involved on the job. For example, a l)pist position, a typing test would have a high content
validity if the typist has to produce many typing materials a day. As for an administrative
clerk involving minimal typing, the same test would have a minimal content validity.
Construct validity
It refers to tests that will measure abstract traits in the applicant's make over or ability. An
example would be to have a bank teller to undergo a numerical aptitude test. An aptitude is
not a specific criterion or feature of behavior but it is a concept to explain a large group of
behaviors. The bank however, needs to prove that the test does measure the trait and the trait
is necessary for the job to be done effectively.
Criterion Validity
It refers to the correlation between scores on the selection device and ratings on a particular
criterion of job performance. An example would be measuring and comparing actual
production records and supervisory ratings to the perfonnance in the tests or other selection
methods. In sales, normally sales figures are used as a basis of comparison.
Validity of any selection methods can be derived from job analysis that is from the job description
and specification. The diagram below will show to us hmv the relationship between validity and job
analysis is.
Fig. 6.]
Relmionship between validity as standard in the selecrion procedure andjob annb-:.is.

...----------- JOB ANALYSIS ------------.
Job Specification
Job Description
(Fadlitates the development of predictOrs)
Education
Work experience
Scores on tests
Results from employment interview
(Facilitates the development of

criteria for job success)
- Ratings from Performance appraisal
-Records from the production data
-Personal data'
Validity
(How well predictors actually predict the criteria of a job success)
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Introduction to HRM
6.4
What is Reliability?
Rdiability is a pr~dictor used that repeatedly produce the same results. It gener<~tes consistency. An
of reliability will be when a same person ,,orking under the same conditions produces
:tppro~imatdy the same test results at different time periods. But if the person fails in one day but
makes an A in taking it again a week later, will not be considered a reliable test (assuming that no
learning has taken pbce in the meantime).
c~amplc
There ar~ ,arious types of reliability and one of them is:

Tesr reresr relinbility
Correlating the scores of applicants given the same test on two different occasions assesses
reliability.
ACTIVITY
Your task is to come up with other types of reliability used such as the alternative
form reliability and inter-rater reliability. You can inquire help from your instmctor.
The next important question is. how many predictors must be used in a selection procedure?
PREDICTOR OR PREDICTORS?
An organization may use a single predictor or a combination of more than one. If only one
predictor is chosen, this practice is known as the single predictor approach. But if more than
one predictors are used they maybe of two types:
Multiple hurdles
A minimum cutoff is set on each predictor and each ininimum level must be passed.
An example is when a minimum education level is required, a minimum score in an
interview.
Combined Approach
Predictors are combined into an overall score. A high score on one predictor will offset a
]ower score on another predictor. A consideration is given to an overall predictor's
performance.
The most important point to remember is the right amount of predictors to be used must be
determined. The less the predictors used may result in no job fit. On the other hand, too
many predictors used will also tend to eliminate good candidates. Therefore, it is important
to ensure that only predictors that genuinely distinguish between successful and unsuccessful
employees are used.
After the standards are confirmed and the right predictors are chosen, ne""t will be to assign the
responsibilities of the selection process.
sELEcn~~~6
PROCESSLQJ
[B[i]E][l]IJ[!l[;
6.5
Who administer the selection process and what factors must

be considered?
In administering the selection process, there are three important matters to consider, the legal
concerns, the selection responsibilities ands the selection process as a whole. We shall be discu:. ing
the selection process in detail later in the chapter. In this section, only the legal consideration and the
selection responsibilities will be highlighted.
LEGAL CONSIDERATIONS
Companies must take note that selection practices are bound with certain rules and
regulations. Things that might go unnoticed are like questions asked during interviews as
well as who to hire for a job. Selection procedure must be free from bias and discrimination.
SELECTION RESPONSIBILITIES
The persons that should be in charge of selection are both the HR unit personnel and the line
officers. Both must co-operate with each other to ensure that the right procedure is used and
the right information is obtained. The table below highlights the main responsibilities of both
the HR unit and the managers or line officers.
HR unit
Managers
Provide employment reception
Prepare requisition forms with the

right qualification of employees
to fill jobs
Conducts initial screening

Interview
Participate in the selection process

where appropriate
Administer selection tests
Interview final candidates
Reference checking
Make final selection decision
Refer candidates for final

Selection
Providing follow up information

with regards to the suitability
of candidates
Arrange physical and medical

examlnc;~ion
Evaluation of selection process
Selection process will be discussed in detail in the next section.
TAKE A 131<EAK..... .
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Introduction to HRM
6.6

Selection is done following a sequence of steps. A diagram of how the selection is normally
done has already been shown in the first chapter. You arc required to refer to that particular
chapter to aid you in understanding the process better. However. a similar diagram is shown
here to help understand the process bener.
Fig. 6.3 The Selection Process
Starts with Job Analysis
Initial Screening Interview

(Reception/Job Previews)~RJP's
'I'
Appfication form
Interviews
Tests ..---"'"
'-:..
Background Investigation
(Optional)
Methods of selection
Conditional Job Offer
Medical Exam
(Drug Test!HIV)
Job Placement
Now. lets us discuss the process above:
INITIAL INTERVIEW/JOB PREVIEW OR INITIAL SCREENING
Most organization holds this exercise due to several reasons:

To avoid from discriminatory hiring practices
To avoid from having impolite interviews
To avoid from unnecessarily long waits
To avoid from having inappropriate testing procedures
To make up of no or lack offollow up letters explaining reasons for rejection and other
reasons.
Having a job preview will eliminate causing unfavorable impression to employers or
compames.
This process is initiated to determine if the applicant is likely to have the ability to
perform in the jobs offered. This exercise will screen out applicants on issues such as job
interests~ location desire~ pay expectations and availability of vacancy as well as
determining the desired qualification level and experience.
THE[]
SELECTION
PROCESS
mmmmomm
It is also considered as a process that the company (interviewer) will provide the job
applicant with information regarding the organization or a job (RJP's). Tills exercise can
be done through walk-in basis by the candidates or through computers called the
computerized screening. This procedure will enable the company or the interviewers to
screen out candidates' application forms and resumes. A preliminary interview process
may also be conducted if the candidates sent their appb:ations personally to the
companies of interests.
The next process in the diagram is selecting the candidates through the available selection
methods. These methods are sometimes called the selection tools predictors of job
performance. They are reference checking~ application blank forms, selection tests and
selection interviews. These are the four main methods used in the selection process.
However, students need to be aware that there is other selection tools that are less prominent
used by certain companies or organizations.
APPLICATION FORMS
Application forms are properly prepared forms by companies to be filled in or
completed by job applicants. They are widely used. They are used as a screening
devise to determine if the candidate satisfies a minimum job specification especially
for entry-level jobs. Nom1ally information that is required will be of past jobs
experience and present employment status. They serve four purposes, and they are:
As records of applicants desire to obtain position

Provide the interviewer with a profile of the application that can be used in the
interview
Basis for employee record for applications who are hired
Basis for research on the effectiveness of the selection process.
Recently, a new form is developed called the biodata fonn. This form is more
detailed in nature and contain information on candidates background, experienCe and
preference. The fom1 is designed \vith series of questions on those aspects. The
candidates responses are then scored. Examples of questions that are asked are like:
How willing are you to travel on the job?

What leisure activities do you prefer?
How much experience you have had with computers?
.
However. the questions in both of these forms must be determined through job
analysis before they are created.
ACTIVITY
Your task is to design an application form for the compo:m:y you are working for to aid
the HR personnel in selection.
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SELECTION TESTING
Selection testing is a great selection tool if it is properly used and administered. The
tests arc used to test job related skills and job related skills such as proficiency,
<1chicvcmcnt of knowledge, aptitude or potential ability~ mental abilityc personality.
physical abilities and even interests.
The most common tests administered by companies are ability tests, personality tests
and psychological tests.
Ability tests
Personality test.
Ability tests assess candidates ability to learn

skills
The skills can range from verbal to
qualitative skill and perceptual speed. Examples
of these tests arc:
Personality test is used to

assess traits or individual
workers characteristics that
is required in a job to ensure
that it 1s done effectively.
Previously
popular
but
lacking in importance of late.
This is due to questions on its
validity
and
reliability.
However, personality testing
now is widely accepted in the
field
of
personality
psychology testing on these
areas:
Cognitive abilirv test that measure a candidates

potential in certain area such as mathematics and
is a valid predictor of job performance when the
ability tested is based on job analysis.
Phvsica/ abi/itv test are used by certain
organization such as the anns forces like the
police and fire departments. It measures the
strength and the endurance of the job applicants.
The results of this test are used as an indicator to
how productively an applicant can handle a task
or set of tasks if he is given the job.
Work sample test is a test administered to a job
applicant to see how well he or she will perform
actual work tasks. An example 1s asking an
applicant trying for the position of a typist to type
some samples of letter.
The company
administering this test must ensure that the test
really shows the variety and complexity of tasks
similar to the work itself.
Extroversion
Agreeableness
Conscientiousness
Emotional stability
Openness to
experience
Other types of tests include honesty testing, psychological testing and drug testing or
medical testing. Another type of testing center that has become popular of .late is the
use of assessment centers. Assessment centers comprise of a series of evaluative
exercises and tests used for selection and development purposes. A panel of trained
raters evaluates the candidates' performance.
One point that needs to be highlighted s that tests administered must stress and focus
on the job content and the types of problems often faced while performing the job.
THE~
SELECTION
PROCESS
mmmmDmm
Now, r:-e<J:.e, ..,&reJ<, be{ore-p.-~t"c-tM- ~ com:p01'1e1toftM~p~ IfyC>t</c:<re-~"losr:-, re{err:-o-tM-:.eJ.ec:t:'<.Oyt,pY<>Ce.W
chart below. We- wU, be-

(Reception/Job Previews)-RJP's
Tests~
'
Application form
Interviews
Background
(Optional)
Methods of selection
Medical Exam
(Drug TesVHIV)
...
Job Placement
SELECTION INTERVIEWING
Another type of selection method is through interviewing. Interviews are designed to
identify information on a candidate and attempts to clarify information through other
means of selection. Interviews can provide face-to-face interactions. Because of .
this, interviews may enable the interviewees to assess the candidates communication
skills, body gestures and explore his/her background to see if he/ she has the
experience and the knowledge necessary to do a good job and to look for any
personality traits that is outstanding and might be usefi.tl to the organization. However
it is not considered to be a valid and reliable predictor of job performance.
Therefore. interviews are often used together with other means of selection methods
namely testing.
There are several guidelines to interviewing that can be followed to avoid being bias
or discriminating.
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Introduction to HRM
The guidelines are:

1.
2.
3.
Identify objective criteria related to the job to looked for in the interview
Criteria must be put in writing
Multiple levels of reviewing must be provided in cases of difficult or controversial
decisions that have to be made
4.
Structured type of interviews should be used for specific job.
T1 es ofl11teniews
"
. .
'
5itnu.:wred lnlerview
I.
A structured interview is an interview with series of _job related questions being

applied with consistent pre-determined ans\vers across all interviews for a particular
job. Areas of concerned are:
Situational questions that try to elicit from the candidates how thev would
respond to a particular work situation.
Job knowledge questions that aim to assess \Yhether candidates have the basic
knowledge needed to perfom1 the job
\Vorker requirements questions that aim to assess job applicant's willingness to
perform under prevailing conditions.
Stmctured interviews are considered to be valid predictors of job performance

because of they consistency in the questions asked and the results obtained from
several candidates. They are easy to handle since questions are prepared in advance
fo11owed by a complete standardize intervie\Yee evaluation form. They are useful at
the time of initial screening stage of the selection process to screen out candidates.
This type of interview will provide adequate time for candidates to answer questions.
At the same time this will also enable interviewers to probe deeper if they desire in
order to understand the candidates clearly.
7.
Unstntctured Interview
Unstructured interview is when an applicant is fonvarded with various t)-pes of
questions that are made up during the intervie\v session. This type of interview has
very low validity and not very reliable. The reason is because candidates for a job
will be given interview questions that are not consistent. Interviewees are also
subject to criticism and biasness. Even though it has low validity and not really
reliable~ unstructured interview is still a popular method used to screen out unsuitable
applicants. This is because it still serves an effective tool in "assessing an individual
suitability to the organization.
Other types of intervie\VS are problem-solving interview~ stress interview, behavioral

description interview and non-directive interview.
ACTIVITY
1
__
'Ill!.
With your instructo!s help, try to describe the following types of interviews:
~;r-----~-------B--eh_a_v_i_o~rru~d~e~s~cn__p_ti_o_n_i_n_te_rv
__ie_,_~----------------------------"
2.
Stress interview
THE~
SELECTION
PROCESS
mmmmomm
Besides the types of interview~ interviews may also vary in styles.
S(l'fes ofImen-iews
. 1.
One-ro-one basis
An interview conducted with only one interviewer and an interviewee
2.
Group Interview
Two or more interviewers are interviewing two or more candidates. Nonnally these
candidates are asked to discuss job-related matters among themselves while the
interviewers will rate their performances. It is an effective tool to for supervisory and
managerial positions. Do you recall a similar technique we have discussed earlier?
3.
Panel Interviews
This is a ty-pe of interview conducted where a panel of interviewers of which one will
act~ as a chairperson will interview a candidate. A technique often use lately because
it less costly and time consuming. However. this type of interview sometimes causes
uneasiness on the part of the interviewees.
What are the factors to be considered for an effective interview?

TI1ere are several factors to be considered in an effective interview session and they
are:
+ Planning of the interview

Interviews should be planned in advance. Applicants resume and application must
be reviewed and important areas that highlight the applicants strengths and
weaknesses must be noted. Interview session must take place in a room with good
ventilation, not too hot or too cold. It must be done privately and not at a public
place. As an example, an interview room must not have the sun penetrating the eyes
of the applicant.
+ Timing oflhe imerview

The interview session that takes place must not be carried out too long. A proper
tiffie limit must be set so that the all applicants that need to be interviewed on that
particular day can be interviewed. Intervie,...-ing is a tedious and ta'>.ing process. Too
long an interview can create tension and fatigue on both interviewers and
interviewees.
+ The topic for discussion
The topic for discussion in an interview session should be determined earlier. A
stmctured intervie\v questions can be prepared to aid the interviewers in making
decisions. Interviewees on the other hand are advised to have some prior knO\vledge
of job vacancy and the organization they are applying for.
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Introduction to HRM
+ 1-:.~'itah/i.rh rapporr
Interviewers arc advised to establish rapport with the interviewees. This will enable
them to be at c:::~sc and will help them to answer questions effectively. Furthermore. it
can create good image of the company to the interviewees and future 3pplicants.
At the same time the interviewers are encouraged to ask questions that \\elcome the
intcn:icwecs to give their opinion. Avoid asking questions with YES or NO answers.
Do not put words in the applicants mouth. Do not interrogate the applicants. Do not
monopolize the interview sessions by giving your opinion and having the candidates
to agree upon them. Listening to the candidates answers is required of the
interviewers.
+ Termination of!he inrervie\1

Close the interview session politely. Allow some time for the candidates to ask some
qucstioris or to clari(Y some matters or even to sell themselves to your company.
+ Evaluation ~(the inrenfeu

Carefully review notes from the interview sessions that took place. This can help Jo
make decisions faster and to minimize negative emphasis.
1hat are the inteniewing errors to be avoided?

The common mistakes in an interview session are:
Halo ef/ecr
Making decision or judgment based on the first observation of the applicant and the
first few minutes of the interview session
Contrast error
A situation when the interYiewers are influenced either for or against the prior interYiewee
with the current one.
Misinterpretation or non-verbal cr1es

Interviewers making the mistake of paying too much attention to the non-verbal behavior like
how the person looks. sits or his/her ability to establish eye contact.
Similar to me error
This is a situation where the inteniewers tend to give higher ratings to the candidates that are
perceived to be similar to t11em be it coming from the same university or have the same
interests a.."1d so forth.
Gender B.ias
1l1is is a situation when decisions made depend on the applicant's sex or physical
attractiveness.
Interviewer lack ofjob knowledge or topicsfor discussion

Sometimes an error is made when the interviewers do not do prior checking on the applicant's
resume or application fonn. which sometimes lead them to asking irrelevant questions. There
is also a situation where the inteniewer himself/ herself Jacks knowledge on t11e particular job
or its responsibilities in which the applicant is applying for.
THE[]
SELECTION
PROCESS
mmmmomm
What are the attributes andfactors to look for in an interview session?
Listening to the responses of the interviewees is considered very important in an
interview session .. Listening is not merely done through our ears, but can be done
through our eyes. lnterviewers are encouraged to look for some of these attributes
and factors in the candidates while interviewing an they are:
1.
2.
3.
4.
5.
6.
7.
8.
9.
I 0.
11.
12.
13.
~~
The candidates appropriate responses

His/her enthusiasm in his/her responses
His/her confidence in giving opinion and answering questions
Maturity in terms of responsibility and responses
Appearance
Work experience
Fluency in language
Body language
Extra curricular activities
Career goals
Initiative
Emotional stability
Academic qualification
Finally, to be effective intervie".-s must be conducted together with other tools of

selection. One of them is through reference checking or background investigation.
You must have experienced being interviewed at least once in your job pursuit. Do
vou think it was carried out fairlv'? What would seem unfair to vou as the
interviewee?
~
REFERENCE CHECKING OR BACKGROUND INVESTIGATION

Reference check is a clarification process or an investigation done on job applicant
the firm to seek further information on them_ This form of checking is done to
seek infonnation on the applicanfs qualification, his/her personality and even his/her
strengths and weaknesses. Other areas include:
l. Information on prior work experience
2. Information on financial standing
3 _ Information for any law enforcement records
4. Information on personal references
b~'
Reference check can be done either after or before the applicant is interviewed. lt is
however: time consuming for the company but is worth the effort since it can clari~
information on applicants.
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Introduction to HRM
Background investigation or reference check cJ:n be either done through phone calls or
requiring the rcfcrl:t:S to fill in forms prepared by the company or to response in writing.
In general kttcrs of r~commcndation arc not good predictors to performance. This is because
most of these letters arc written positively. But any poor letters of recommendation may be
n:ry predictive and should not be ignored in a selection process. Regardless, reference
checking in the fonn of recommendation letters or any other forms should be used with other
selection tools discussed to enable them to be effective. They must not be used singlehandcdl~.
The next thing that nc,::ds to be done in the selection process will be to conduct additional
inh:T\ i~ws if thL'y arc required. This is optional which means companies can already make
decisions on who should be selected without going through this step. Finally, the last step
,yj!J be issuing J conditional job offer lener pending upon the candidates passing the medical
cxJm required.
MEDICAL EXAMINATION
Succcssfill candidates will be notified and will be issued a conditional job offer lener. Before
being placed or offered the job. candidates are required to undergo a medical examination
consists of drug tests and other physical tests. These tests \Viii determine and ensure the
company that they (the candidates) are free from any dmg usage and are physica11y fit to
perform their duties later. Another important purpose of these tests is to avoid hiring people
who may become problem workers in the future.

(Reception/Job Previews)-RJP's
T
Application form
Tests
Interviews
Background Investigation
(Optional)
Medical Exam
(Drug Test/HIV)
Job Offer .
letter
...
_____.....,Job Placement
A.I' yc>w C<A.V '""' we- "'""' C<t- !;he, end- of !;he, ;ele~.CW proceM: We- will- d.4<:w !;he, job- offey
letter~.
What is a job offer letter?

A job offer letter is going to be issued when a job applicant is successful in his
application. It is going to be issued before placement takes place. A job offer letter
wiJI infonn the job applicant or the employee of his success in the selection process
done on him and should be delayed in delivery. At the sa!!!C time, rejection letter to
unsuccessful candidates must also not be delayed and must be worded carefully so as
not to hurt or tarnish the company's image.
The contents of a job offer letter is:
The contract of employment

All employees are covered by the Employment Act and they must be given written
contract known as the express terms of contract
An implied term of contract also must exist between the employee and employer and
must be understood by both once the letter has been issued. The implied terms of
contract includes trust, provision of safe working conditions, good pay and many
other factors of importance. On the other hand, employees have to contribute in
terms of being loyal, committed, obedient, faithful, honest and disciplined.
The letter must specify the types of employment contract whether it is a fixed
one or indefinite in nature.
The letter must express certain conditions of service such as:

The job holder s occupation
The d11rafion ofthe wage period
The salary wage rates. all allowances and overtime rates payable
All bene.fits such as increments and bonuses
Normal hours of work per day
Jhe holidays and annual leave entitled
The notice period in the event o.ftermination qf employment
Other information recommended ''"ill be:
A mobiliry clause such as rhe right o_(rhe employer Ia 1ran.~(er lrorker.\. place of work
or chonge C?f\rorking hours
A clause requiring employees to undergo a medical examination
Age c~lrerirement
Proborionary period in case o_f terminorion
*The abtn>e iuformalimr cuu be fmmJ in H11mau Reso11rce .)Janugemeut, by Pnifessor .llaimrmah
.!mimuldiuumlyvu we recummeuJeJto retldfurther to mulerstuml bf!lter.
hentualh. after all the steps are followed, and the job candidates are successful in
the medical examination, they will be allocated to the jobs in any place they have
applied for.
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HRM533
Introduction to HRM
Selection of employees must be done carefully to aYoid problems both to the employee and the
company. A company is adYis~d to develop a clear policy on hiring as on disciplining and dismissing
their cmploy~oxs. The hiring or rt.:cruitmcnt policy should include a thorough background check of
.1pplicants that is verification of educational. employment and residential information. Companies arc
also recommended to const::mtly check with the state or federal laws rcg~nding hiring :~pplicants with
criminal records or history. At the same time, companies need to learn as much as they can about
applicants past work-related behavior if this has a possible effect on job performance.
Summary
Definition
Selection is dcfmcd as the process of choosing individuals who have relevant qualifications to fill
jobs ''acancies in an organization.
Selection standard is comprise of selection criteria and selection predictors

A selection criterion is the standard that is very important to ensure that the employees can perform
the job successfully. A selection predictor is a measurable indicator of the selection criteria.
Validity is what a test or other selection method measures and how does it measure tht!m. Reliability
is predictors used that repeatedly produce the same results that will generate consistency.
Selection Process
The selection which is done by a company will follow a sequence of steps beginning with job
preview, followed by the application of selection tools namely the application blank form, reference
check, interviews and administering tests. This will then be followed by an issuance of a conditional
job offer letter following the success the applicants will get from their medical examination result.
Eventually, the candidates will then be placed aCcordingly suitable to the application they sent in.
Companies need to take precautions in their hiring process. This is to avoid hiring '\vorkers that might
cause problems to their companies. Therefore companies need to check constantly with their state
and federal governments regarding hiring practices so as to avoid engaging in
illegal hiring practices.
I~
CHECKLIST
Are you able now to:
0
D
0
D
Define selection
Explain what is meant by:
Selection criteria
Selection predictor
Describe the selection process
Discuss the various methodsof selection
SELECTI~~r-;::l6
PROCESSL!?_j
mmmrnom[;
Selection
Unstructured Interview
Selection Standards
One-to-one interview
Selection Criteria
Group interview
Selection Predictors
Panel interview
Validity
Aptitude test
Reliability
Personality test
Realistic Job Preview
Performance test
Application Blank Forms
Reference Check
Interviews
Job offer letter
Structured Interview
Self-test
Answer either True False.
I.
2.
Test reliability is that a test measures what it purports to measure.

The content validity of a test basically involves demonstrating that those who do well on
the test also do well on the job and those who do poorly on the test also do poorly on the
job.
3.
One way to verify factual information about an applicant is through reference check or
4.
A test that measures what a person has learned is work-sample test.
5.
Criteria that an employer would hope to predict with the test might include quantity
produced per hour and number of rejects produced per hour.
Computer data bases have made it Jess difficult to check background information on
candidates than in the past.
Assessment centers involve situations in which management candidates are asked to
make decisions in hyvOthetical situations.
Research has shown that the validity of interviews is very high.
The first step in the selection procedure normally is completion of an application blank
form.
An interviewer should make notes on the application form during an interview
background check.
6.
7.
8.
9.
I 0.
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HRM533
Introduction to HRM
I.
\Vhat is selection and why is selection ,cry important?.
2.
\Vhat is a selection criterion'!
3.
\Vhy is validity and reliability considered to be two important criteria for an effective selection
tool'!
4.
Describe the selection process and explain the selection tools in it.
jJ ' """' """'""

I.
2.
'
-1.
5.
6.
7.
8.
9.
10.
F
F
T
F
T
T
T
F
T
F
Significance of Culture and

Orientation
In this chapter, we will look at how culture of the organization create impact on the employ'ees and
effective orientation program conducted by the organization will produce an effective happy
individual and become Joyal to the organizer.
!Significance of Culture and Orientationj
Before you proceed. mk'! tiCIJ~!o:o~k~<:ll~t~h~e~====~=~=;===~==L====~

overview map.
r
~~---c_u_LT_U_RE____~_j
-1
~~--O_R_IE_NT_A_TI_O_N__~I
The Organizational Culture
j 1__
-i The Socialization Process /
Induction
'-,--------'
~Definition
-Goal and Putpose

-Induction Process
Orientation
-Definition
-Benefits
1- Factors to consider in the planning stage
1- Stages in an effective orientation program
1-- Roles of Supervisor
1- Techniques and Content
Who should orient
L. Orientation Follow-up
HRM533
Introduction to HRM
Table of Contents
SIGNIFICANCE OF CULTURE AND ORIENTATION
137
Llarning Objcctiycs
IJ8
7. t
139
7.2
The SociaJiz;ttion Process
140
7.3
Introduction to Oricnt<ltion
140
Induction
Defini1ion
Goal of Induclion
Purpose of Induction
l11e Induction Process
141
141
0 rientation
Definition
Orientation Process
Benefits of orientmion programs
Faclors tllm should be considered in the orientation planning stages
142
Stages in Effective Orientation Program

Firs! Stage
Second Stage
Third Stage
144
144
144
144
7..f
7.5
7.6
7. 7
7.8
7.9
141
141
141
142
142
142
J-G
Roles of Supcnisor
The Orientation Program :Techniques and Content

\:Vho should orients new employees?
Orientation Follow-up
145
147
148
Summary
148
149
149
Learning Objectives
After you have read this chapter, you should be able to:
1. Cite some of the subjects to be covered in orienting a new employee.
2. Discuss the stages involved in carrying out the program.
3. Describe the roles or functions of the supervisor.
4. State the benefits of orientation to the employee and the organization.
5. Indicate the importance of organizational culture.
6. Define socialization process.
of[l]
Significance
Culture and
Orientation
[B[I]E][O[)[l][i
SIGNIFICANCE OF CULTURE
Today~s HR managers exist in changing organizational structures and can be the main factor in
initiating change and establishing the means for adaptation.
Organizations too, strive to be creative~ efficient and highly competitive. maintaining a leading edge
in their respective discipline. An effective managers are vital to the continuing self-renewal and
survival of the organization.
The HR manager then, must be able to recognize changes that are occurring in the external
environment and they must possess the necessary competencies to manage responsive \vorkforce. The
manager too must also be aware of the internal system and recognize that the major element in a
workforce is the Organizational Culture- the feelings, norms and behavior of its members.
A study conducted by Reilly, Chatman and Caldwell indicated that job commitment, job satisfaction
and employee turnover are greatly affected by the fit between the individual's values and the
organizational culture.
7.1
An important clement of an organization s human resource system is the organizntional culture.

Culture refers to a specific civilization, society or group that share distinguishing characteristics.
As quoted by B.F Skinner. a culture is not the behavior of the people "living in if'. it is the ~~it" in
,,-hich rh::y lin~ ----contingencies of social reinforcement which generate and sustain their behavior.
Oroonizationol culmre is defined as a system of shared meaning , including the language, dress,
pattems of behavior, value system, feelings, attitudes, interactions and group nonns of the members.
For example, in your organization you may observe these patterns of behavior for instance how
people dress and \\car their hair------- these are the elements that make up culture that is the accepted
pattem of behaYior. \Vhilc the values and behavioral norms for the organization will be like culture at
Fedcr:J.! Exprt:ss as t:xamp/c. where the chairman reflect combat situation for the company, that is
flights arc calkd "missions" and competitors are caJled ~~enemies".
Norm!J ar~
the organized and shared ideas regarding what members should do and feel, how this
behaYior should be rcgula.tcd and what sanctions should be applied when behavior is parallel with
social expectations. The values and behaviors of each organization arc unique. Some patterns of
blmYior maybe functional and facilitate the achievement of organizational goals. \Vhile other
pattcms ofbeha,ioral or cultural norms ma~: block the accomplishment of organizational goals.
Generally. norms are enforced onJ~ for behaviors that are viewed as most important b~ most group
members. The pressure ro conform to these norm varies~ allowing individuals some degree-of
freedom in responding ro organizational pressures depending on how they perceive the rewards or
punishments. Organization too, also has latitude in the degree of compliance of its members. To
insure such organizational commitment is through training program which wiH be able to fulfill
employees expectations and desires.
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Introduction to HRM
ACTIVITY
Do you know your company's culture'!
Jnquire from your friend about their company's culture. Compare and give reason (s)
why is it different '?
7.2
The Socialization Process
Even though organization does an effective job of rccmiting . new employees must still adjust to the
organization culture. Since they are unaware of the culture_ new employees arc likely to disagree
with or question the customs and values that exist. So socialization is the process that adapts
employees to the organization s culture.
Each individual brings certain expectations about the job. the people, and the organization. For a new
member to function effectively. he or she must be aware of the norms of behavior within the
organization. The individuars initial entry into any new situation will incur in some degree of anxiety
or stress. l11c more closely an individual can relate the new situation _ the less anxiety he or she will
feel. And the Jess the individual can relate a situation to other situations. the greater the feelings of
anxiety and discomfort.
ORIENTATION
7.3
Introduction to Orientation
Many individuals will be curious when they are just starting a new job.
Will I be able to do the job?
Will I fit in around here?
Will the employer or my manager like me?
These first day anxieties rna:y be natural, but may reduce a new employee s satisfaction and ability to
learn_
To a psychologists. this kind of behavior is normal because initial impressions are strong and lasting
since newcomers have little else by which to judge. To help, a new employee become a satisfied and
productive member in the organization, the manager and the Human Resource department must make
those initial impressions favorable.
Once the selection process has taken place, managers and the Human Resource department help the
new hire" fit in that is through orientation.
-~
~
.:......
Have you gone through any form of workplace orientation before?

Did you notice what they do to help you fit in?
Significance
of[l]
Culture and
Orientation
munornumra
When an employee is hired, hvo processes are involved that is,
i)
ii)
Induction
7.4
Induction
Orientation
DEFINITION
Induction is a process by which new employees are familiarized with the working
environment
GOAL OF INDUCTION
The immediate goal of this process is to bring the employee into the mainstream of the
organization as soon as possible.
PURPOSE OF INDUCTION
The purpose of the process is to develop programs that tum "them'' (new employees) and
us" (the compan}-') into ..,Ye'.
Besides changing the status of the ne''" employees as one of the family, the induction program
is to provide the new employee, with the necessary information about the compan_y. It
tamiliarizcs the nc" person ''"ith the duties and benefits of employment.
The employee receives pamphlets. fills in forms. gets a pass issued and has fringe benefits
explained. Management sees to it that the employee is provided \Yith an explanation of the
company history. irs products or services and the organization stmcture.
The gcncml purpose of this phase is to see that the employee leams where to go for answers
and help. and \Yhat the important rules. policies and procedures of the organization are.
THE INDUCTION PROCESS
The process of induction is accomplished through an interaction of the employee, the

immediate supervisor and the personnel specialist if there is one. The time induction requires
may be divided bc!\Yeen one to one interactions and large group education.
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Introduction to HRM
7.5
Orientation
DEFINITION
Orientation is the process to familiarize new employees with their roles. tht: organization, its
policies and other employees.
Or
A procedure for providing new employees with basic background information about the firm.
Orientation continues what induction began. The new employees are being exposed to the
organization-s formal systems. paperwork and policies. is now introduced to the immediate
,,orking environment ~md co-workers.
ORIENTATION PROCESS
The employee and manager \Yill discuss specifics of the \YOrk location, mles, equipment,
procedures and plans for training.
In addition. the employee :md the manager will have the opportunity to discuss and reinforce
performance expectations that were initially discussed during the interview process.
The new employee may be paired with an experienced employee for a period to help the
socialization process. The pairing and one to one discussions are an attempt to reduce the
employees anxiety through meeting other people and allowing him or her the opportunity to
discuss expectations and actual perfonnance ..
The infomml group fi..1rther provides this type of feedback as the new employee interacts in
the work environment. The orientation phase is extremely important.
Having the new employee become comfortable with the superior and the peer group is a
socialization process. lt needs to be planned.
BENEFITS OF ORIENTATION PROGRAMS
i)
To reduce anxiety due to.

NL""a"
situation
Any new situation involves change- and the more things are differen,t~ the
more change and uncertainties the employee will have to cope up with.
Problems entering in a group

New employees often worry about whether they will be accepted by other
group members in the new places.
Unrealistic expectation
New employees often have unrealistically high expectations about the
advantages of their new jobs and are often shocked at the reality of getting
less than they bargained for.
of[l]
mmmmomr;
Significance
Culture and
Orientation
Surprise/nervousness
Surprise may occur when expectations about one s self are unmet, or \vhen
the features of the job such as the need to work late hours are unanticipated.
ii)
New employees can have realistic job expectations.
iii)
To facilitate socialization and internalization process between new employees and

old one.
(Socialization is the process through which new members of an organization gain
exposure to its values and norms, its policies and procedures and the behavior
expected from new people).
This socialization process helps the organization meet its needs for productive
employees while enabling new employee to meet their needs.
An important objective of Human Resource Management is to assist employees m
achieving their personal goals, as those goals enhance the individuars contribution to
the organization.
iv)
To reduce turnover
If employee perceives themselves as ineffective, they may react to these feelings by
quitting, due to this effective orientation can reduce this costly re:tction.
v)
To save time
Improper oriented employees must still get the job done, and to do so they need help.
The most likely people to provide help is coworker or supervisor, so a good
orientation program can save everyone time.
FACTORS THAT SHOULD BE CONSIDERED IN THE ORIENTATION PLANNING STAGES
In order to ensure that the orientation program that is going to be carried out is effectively and
efficiently manage, there are several factors should be considered before its implementation.
-
i)
Program goals.
ii)
Range of topics to be considered.
iii)
Timing and duration of orien-tation program
iv)
Company topics versus departmental and job topics
v)
Technical versus social aspects of orientation.
,i)
f\:1cthods for encouraging emplo:yccs discussion sessions and feedback.

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HRM533
Introduction to HRM
7.6
Yii)
Training personnel representatives and supervisors prior to conducting orientation

sessions.
viii)
Specific training need to be conducted by personnel department and by supervisors.
ix)
Checklists of topics to ensure follow-up by personnel representatives.
x)
Employee handbook that is the topics it covers_ its organization and provisions for
keeping it current.
xi)
Program flexibility to accommodate employees differences in education. intelligence

and work experience.
Stages in Effective Orientation Program
There arc three stages involved in carrying out an orientation program, ll1cy are,
FIRST STAGE
This stage focus on the general information about the organization. These include company
overview, reviewing company policies and procedures and salary.
These materials will be presented by members of the Human ResourcC dcparrment. To
ensure that all the areas wilf be covered~ the HR executive(s) should prepared a checklist for
that purpose.
SECOND STAGE
During this second stage, it will be the responsibility of the immediate supervisor to inform
the employee with regard to the matters like, an overvie,, of the department, job
requirements: safety, a tour of the department, a question and answer session, introducing
session, to other employees. Beside what has been specify above. the supervisor should also
explain clearly the perfonnance expectations and specific work mles. The supenrisor should
also try to make the new employee feel at ease for social acceptance by the work group.
THIRD STAGE
Together with the immediate supervisor, the HR department will carry out the evaluation and
follow-up process. At this stage especially the first week, the supenrisor works ,,ith the new
employee to clarify infonnation and integration do take place in the work group. \bile t~e
HR department will assists the supervisor that this step is properly implemented and
accomolished.
ACTIVITY
Now go back to memory lane, and try to remember the experience that yo1;1 have
undergone when your company conduct the orientation program for :you and your
colleagues .What happened? List down the items.
Significance o f [ l ]
Culture and
Orientation
mmmmll en:;
7.7
Roles of Supervisor
The roles of the supervisor include

To make sure the integration process takes place successfully in the work place_
Gives confidence towards the new employees and the assurance that the company
would not have hired them if they don't believe that they can do the job effectively
and efficiently.
Explain to the new employees the good and bad points of the job.
Inform the new employees with regard to his/her expectation for instant the likes and
dislikes in the job performance.
1l1e standard set by the work group and the company should be communicated and
explained.
The ne,,- employees should be introduced to the work group.
7.8
The Orientation Program : Techniques and Content
The purpose of orientation program is to impart information and knowledge, to the new employees,
so to maintain the new employees attention and involvement. management must be able to use a
range of training methods to create the necessary attention, thus reduce boredom.
Some of the techniques other than talks illustrates the wide range of training methods to be
considered when designing an orientation program are~
i)
Films and videos

This is to show the aspects of an organization s work which is inaccessible for new
employees to risit and as a medium for communication by an otherwise top management in a
largt; organization.
ii)
lmeractive video
iii)
Tape or slide package:-;
iv)
Visits or umrs
v)
Hand-olfls
,-j)
Discussion groups
,-jj)
Projects and se(l-learning
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HRM533
Introduction to HRM
In terms of contents or topics often covered m employee orientation programs. generally

reYolvc around these categories,
i)
Organizarional issues
History of employer
Organization of emplo~'er
Names and titles of key executives
Employee s title and department
Layout of physical facilities
Probationary period
Product lines or services provided
Overview of production process
Company policies and rules
Disciplinary regulations
Employee handbook
Safety procedures and enforcement
ii)
l:"mployment
ben~/its
Pay slips and paydays

Vacations and holdings
Rest breaks
Training and education benefits
Counseling
Insurance benefits
Retirement program
Employer provide services for employees
Rehabilitation programs
iii)
Introduction
To supervisors
To trainers
To co-workers
To employee counselor
iv)
Job duties
Job location
Job tas~s
Job safety requirements
Overview of jobs
Job objectives
Relationship to other jobs.
Source
IFil/iam B. Wercher. Jr. and Keilh Davis, Human Resources and Personnel Aia11agement. 5r" Edition, Prentice
Hall. 1996.pg. 257.
of[l]
mmmmomm
Significance
Culture and
Orientation
J,
ACTIVITY
O
,
No\v, refer back to the list you have listed and compare with the above material
stated. Is there any similarities or diffci~nces the way it being conducted?
WHO SHOULD ORIENTS NEW EMPLOYEES?
Usually who should orients new employees will depend on the size of the organization small, medium or large organization. For a small organization, the operating manager carried
out the orientation program whereas for a medium-sized and large organization, the operating
manager and the HR manages do all the orienting.
Fig. 7.0
Relationship of operating and HR managers in orientation
. Orieiltati.on;fu~.ction
i)
Design the orientation

program.
i~
Introduce the new

employee to the
organization and its
history, personnel policies,
working conditions, and
rules, complete
paperwork.
OperatingManager
(OM)
OM should help in the design
work
. HR l\lal).ager
(HRM)
HRM consults with OM
HRM perfonns this.
iii) Explain the task and job

expectations to the
employee.
OM perfonns this
iv) Introduce the employee to

he work group and new
surroundings
OM performs this
Encourage other
employees to help the
new employee
OM perfonns this
v)
Source: John .\1/l'micmich, Human Resource .\kmagemem. Sewwh Edition, .\JcGraw Hill. I 998, pg. -113.
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Introduction to HRM
7.9
Orientation Follow-up
A successful ori~ntation progr3ms must include built-in foiimY-up procedures. Follow-up is needed
because new employees often arc reluctant to admit that they do not recall cver;.1hing they were told
in the initial orientation sc.::ssions. Besides that this follow-up or feedback system \Yill ensure that any
unanswered questions and misunderstanding are clarified. This \Yill also provide as a basis for an
evaluation of the effectiveness of the orientation program.
An improper orientation program carried out by the organization will cause new cmployees to Jean~
the organization very early. This is at the expense of the organization. \Vhy such occurrence?
i)
False expectations during recruitment.

This occurs whc:n the job and conditions of service do not in practice match the expectations
created during the recruitment process.
ii)
l'itting.into the organization

l11is is due to \Yhen the new employee finds the whole style or culture of the organization
unpleasant.
iii)
Relations with managers

This is caused by personality clash when the new employee falls foul of supervision or
management. The risk is greatest when the selection procedures do not involve the
employee s immediate boss.
For example the recmitment process was handled by the senior manger or human resource
department, not by the supervisor to whom the employee will report on a day to day basis.
iv)
Fitting into the work group

The new employee has difficulty in adjusting to or being assimilated into the immediate work
group.
Summary
Organizational culture is a system of shared meaning, including the language, dress, patterns of
behavior. value system, feelings, attitudes, interactions and group norms of the members. It is very
important for new employees to know , understand and adapt to the culture of the organization. The
process is kn0\\'11 as socialization. While orientation is the process to familiarize TIC\\' employees with
their roles, the organization, its policies and other employees .The purpose of organization tocarry
out orientation program for its new employees are to reduce anxiety, to give realistic job expectations,
to facilitate socialization and internalization process between new and old employees, to reduce
turnover and to save time.
of[l]
mmmmDmm
Significance
Culture and
Orientation
-~~
I.VJ CHECKLIST
0
0
0
0
Explain the importa"ce of organizational culture_

Write down the subject matters to be considered in orienting a new employee.
Specify the stages involved in the orientation program_
Acknowledge the functions of the supervisor in the orientation program.

Induction
Organizational culture
Orientation
Socialization
I.
University or college orientation.

In today s companies, we spend time thinking about planning and implementing orientation
programs. Universities or colleges too, have followed suit. In many universities or colleges,
new students tyl)icall_y are invited to spend a day with university /college representatives.
These representatives go over various aspects campus life' that are Important to the new
student. Among these are campus tours, housing and dining information, major declarations,
campus services, and course registration. In as much as this process assists new students to a
university or college, it is often general in nature, specific infom1ation for each colJege or
major may be limited.
Therefore. as business students~ develop an orientation program to be used in your school.
As a group of 3 to 5 students, develop an orientation plan that could be given to the dean of
the college for immediate implementation. Make sure you address the time frame (or the
process. Also. decide \Yho should conduct the orientation.
2.
\Vhnt are the bcne~ts of a comprehensive orientation program.
i)
to the employee?
ii)
to the organization'
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::2m
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Introduction to HRM
NOTES
Training and Developing Employees

Once employees have been recmited and selected, they need to be socialized to the new environment.
No matter how realistic the information they were provided during interviews and site visits,
individuals beginning new jobs will experience shock and surprise. Employees need to become
familiar with job tasks. receive appropriate training and understanding company practices and
procedures.
Therefore this chapter will look into issues related to human resource development. Human Resource
development is concerned with learning and development opportunities, training interventions and
planning, conducting and evaluating training programs. We will discuss the socialization/ orientation
process, training process and development and evaluation techniques which aims to fulfill both
individual and organizational needs.
Take a look at the overview map belovv before proceeding.

Training and Developing Employees
Training for New Employees
Training Process
Legallssues
Needs Assessment
Training Training
Training Evaluations
HRM533
Introduction to HRM
Table of Contents
TRAINING AND DEVELOPING EMPLOYEES

Learning Objccthes
8.1
8.2
151
152
Socio\lization and Orientation
153
The Training Process
15~
The FiYe-step Tmining and Development Process
15~
8.3
Legal Aspects of Training
!56
SA
Training Needs Amdysis (TNA)
157
8.5
Training Techniques
158
!58
16J
162
162
On-the-Job Trnining (OJT)

Training for Special Purpose
Providing Employees With Lifelong Learning
Mcmagerial Development and Training Teclmiques

Managerial on-the-job-Trairting
161
Off -the Job Trnining
16~
8.6
Evaluating the Training Effort
166
Summar:-
167
Ke) Terms for Review
168
168
Learning Objectives
After completing this chapter, you should be able to:
I. Design an effective socialization program for employees
2. Discuss the training and development process
3. Discuss the legal issues related to training
4. Describe the processes involved in conducting a TNA
5. Describe at least five training techniques
6. Describe the managerial development and training techniques
7. Exp]ain why training evaluation is important
~nd[ru
Training
Developmg
Employees
[B[l]E][i]IJD][;
8.1
Socialization and Orientation : Training for new employees
Organizational socialization is the process by which new employee are transformed into effective
members of the organization. What they should learn and develop through the socialization process
are as follows (T. Chao et.al, 1994)
The company's goals, values, traditions. c13toms and

background of members
Rules or principles directing the company
Company goals
Slang and jargon unique to the company: professional

Language
technical language
How to gain information regarding the formal and informal
Politics
work relationships and power structures in the company

Successful and satisfYing work relationships with other
People
employees
What needs to be learned: effectiveness in using and
Performance
and acquiring the kno\\Jedge, skills and abilities needed for

proficiency
the job.
Orientation programs play an important role in socializing employees. This program involves
familiarizing new employees with company rules, policies and procedures. Typically. a program
includes information about the company: department in which the empfo:-,'ee will be working and
community (Figure 7. I).
History
Figure 7.1: Content l"if0rientalion programs

Company level information
Company overview
II
Ill
Key policies and procedures

Compensation
Employee benefits and services
Safety and accident prevention
Employee and Union relations
Physical facilities
Economic factors
Customer relations
Department- Level Information

Department functions and philosophy
Policies, procedures, rules and regulations
Tour of department
Job duties and responsibilities
Performance expectation
Introduction to department employees

Miscellaneous
Community
Family adjustment
Housing
So11rce:
].[.. Schwarz aud.\l Wes!owslii. ''Employee Oliellfatiou: Wlud Employers S/uni!J Km1w. TheJoumal of
Comemvorarv Business issues rJ995i.
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Introduction to HRM
ACTIVITY
\Vhat is organisational socialization'? \Vhat should trainees learn during the

socialization process'!
\\!hat is orientation program? \Vhat are the contents of orientation program?
Give examples derived.fiom your own experience and other readings.
8.2
The Training Process
Training can be defined as a process and an organized program created to provide opportunity for
individual to acquire knowledge, develop skills and maintaining existing capability necessary for
them to perform their job more effectively, which suit to the particular needs of the organisation.
Some of the reasons why training is important:
To secure a better match between employees knowledge and skills and the tasks required
by organisation
Helps to improve productivity
Enable organisations to fully utilize its plant equipment and procedures
Help employees to cooperate in the standard ways of working that the organsiation
reqmres
Helps employees to see more points in the jobs.
Changes in the business world is inevitable. Due to the ever changing environment, focus of training
has broaden from technical training to quality-improvement programs, Information and
Communication Technology (JCT) training and customer-service training. In other words, training is
utilize by organization to gain competitive advantage.
!i'!>_
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_.;~""' ~''''' "'' m;o,, ;,
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THE FIVE-STEP TRAINING AND DEVELOPMENT PROCESS
According to Carolan ( 1993) training consists of five steps, as summarized in Figure 7.2.
Training and learning

Training is a planned effort by a company to facilitate employee"s learning of job-related
competencies. Where else learning is a relatively change in human capabilities that does not
result from groMh process. Therefore, training is essentially a learning process. According
to Knowles (1990), in developing program for the employee, Human Resource professional
must understand the 'Adult Learning Theory' that based on several assumptions:
and~
Training
Developing
Employees
i.
ii_
iii.
iv_
v.
mmmmumm
Adults have the need to know why the are learning something
Adults have the need to be self-directed
Adults bring more work-related experiences into the learning environment
Adults enter into a learning experience with a problem--centered approach to learning
Adults are motivated to Jearn by both extrinsic and intrinsic motivators.
Understanding the adult learning theory gives insight how people Jearn_
Figure 7.2
1. Need Analysis
Identify job performance skills needed to improve performance and productivity
Analyze the audience
Use research to develop specific measurable knowledge and performance
objectives
2. Instructional Design
Gather instructional objectives, methods, media, description/ sequence of content, examples,
exercises and activities
Make sure all instructional materials are written clearly and complement each other
Carefully and professionally handle all program elements to guarantee quality and effectiveness
3. Validation
Introduce and validate the training before a representative audience. Base final revisions on pilot
results to ensure program effectiveness.
4. Implementation
When applicable, boost success with a train-the trainer workshop that focuses on presentation
knowledge and skills in addition to training content
5. Evaluation and Follow-Up

Assess program success according to:
REACTION- Document that learners' immediate reactions to the training
LEARNING- Use feedback devices or pre-posttests to measure what /earners have
actually learned
BEHAVIOR- Note supervisors' reactions to learners' performance following completion of
the training.
RESULTS -determine the level of improvement in job performance and assess needed
maintenance.
Effectively prepare the trainees

Create a perceived need for training in the minds of participants by informing why they
should learn or to be trained. Employees Jearn best when they understand the objectives of
the training program
Direct the trainees' attention to important aspects of the job they should be aware of.
Employees are more like!~-- to learn when the training is linked to their current job experiences
and tasks- that is when it is meaningfhl to them.
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Introduction to HRM
Trainees will understand and remember material that is meaningful

Pro\idc the training obj~ctin.~s and on::rvic:w of the training program
Provide a bird s cyc-vicw of the subject matter
Usc a variety of familiar examples and encourage two way communications
Organize the materials so that it is presented in a logical manner and in a meaningfhl units
Use simple and familiar tenns and concept. Do not use jargons
Usc visual aids.
Ensure easy transfer of learning to the job site

T!} to simulate the training situation and the work situation
Provide opportunity to practise
Identify or label each step in the learning process.
Motivate the trainee

People learn best by doing. Try to provide as much rcali~tic practise as possible
Adopt reinforcement concept by rewarding or punishing trainee during the learning process
Let them learn at their own pace.
ACTIVITY
8.3
Legal Aspects of Training

Training situations that may result in Legal action. Such instances are
employee injury during a training activity
employees or others injured outside the training session
breach of confidentialitY or defamation
reproducing and using ~opyrighted material without pennission
excluding women and minorities from training programs
not ensuring equal treatment while in training
requiring employees to attend.training programs the~ find offensive
In order to prevent legal actions~ some of the precaution that human resource professional can
take are:
Warn employee of potential dangers from incorrectly using equipment
Use safety equipment
Ensure training procedureS~ manuals and activities were correct and foHowed the
steps provided by certified agencies.
To obtain permission from the owner of copyrighted materials
Evaluate the training activity to determine its effectiveness in reducing negligence
risks.
Training and[ID
Developing
Employees
mmmmomr;
ACTIVITY
fi
8.4
What are some potential legal issues that a trainer should consider before deciding to
run an adventure learning program ( such as Kern Bina Semangat)?
~----------------------------------------------~
Training Needs Analysis (TNA)

The first step in training is to determine the training needs. Training Needs Analysis refers to
the process used to determine if training is necessary. Figure 7.3 shows the causes and
outcomes resulting from needs assessment.
Figure 7.3: The Needs Assessment Process
What is the context?

Reasons or ..Pressure Points"
Outcomes
Legislation
Lack of Basic Skills
Poor Performance
New Technology - - - -. .
Customer Requests
New Products
Higher Performance Standards
New Jobs
In what do
they need
training?
What trainees need to learn

Who receives training
Type of training
Frequency
Buy vs. Build Training
Decision Training vs. Other
HR Options such as
selection or job redesign
Who needs training ?
Sorm:t: Raymond A.
,\Ot~.
(20001) Emplo_l'l!t! Training & Dt-rrelopment.\JcGraw Hill. L:S.-l (pg. 51)
Initially~ the Human Resource professional need to determine the ~pressure point" or reasons
that suggest that training is necessary. Based from the pressure point. organisational analysis~
task and analysis and person analysis will be conducted.
Organisational analysis determines the appropriateness of training by refleCting their

business strategy and objectives, available resources and to get support from the
management
Person analysis (performance analysis) helps to identi~ who needs training by
dett:rmining any performance deficiencies. who need training and determining employee
readiness for training
Task analysis identifies the important tasks and knowledge. skill and behaviors that need
to be emphasized in training.
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Introduction to HRM
Tht: need ~sscssmcnt process results in information n:latcd to the outcomt:s st:IgL' as stated in
figun.. 7.-L
Figure 7. .J
/.,."ey ( 'oncern..: of l. "pper and .\lidlewl _1/nnagers and Trainers in Xeeds .lssessment
Organizational
analysis
Upper Level Managers

Is !raining important to
achie1e our business

ohjectiFe? Hmr does
training support our
Midlevel Managers
Do I wa/11 ro spend
money on !raining? Hms
IIIllCh?
Trainers
Do I hare rhe budget to

huy training senices?
will managers support
training?
business strategy?
Person analysis
IJ"hatfunctions or
lf1w should be Trained?
Jlmr will I idenr(fy H'hich
business or business units
.\Jnnngers?
employees need Training
need training?
Prc~fe.\:r;;ionals?
Core
emphwees?
Task analysis
ACTIVITY
DOI!s !he compan_t hm'e

he people wilh !he
knmrledge, skills and
abilily needed 10 compere
in rhe markerplnce?
For ll'hai jobs cat

rraining make the big,_eest
difference in producl
quality or customer
senice?
II Jwr rasks should be

1roined? //"hat
1.-,Hndedge. skills. ahi/i~v.
or o1her characrerisrics
are necessary ?
Nhy should upper level managers be included in the needs assessment

Jrocess?
There are various methods of training and tools used to help employees acquire new
knowledge, skills and behaviors. According to a survey on Industry report 1997 by
Lakewood Publications Training Magazine (Oct. 1997), lectures and videotapes are the most
frequently used training tools.
We will look at training done on-the job and off the job.
ON-THE-JOB TRAINING (OJT)
On-the-Job Training (OJT) refers to new or inexperienced employees learning through

observing peers or managers performing the job and trying to imitate their behavior.
There are several types of on-the-job training. The most familiar is the coaching or
understudy method.
Advantages ofOn-the..Job Training

Need less investment in time or money for materials, trainers, salary or instructional
design
.... Managers or peers who are job knowledge experts are used as instructors
... Trainees get quick feedback about their performance.
....
Training a n d c r u
Developing
Employees
mmmmumm
Disadvantages ~(On-the-job Training
-+
-*
.....
Managers and peers may not use the same process to complete a task
They may pass a bad habits as well as useful skills
Unstructured on-the-job-training can result in poorly trained employees.
Dessler (2000) dictates that there are four main principles of learning for On-the-JobTraining, that is:
Step 1: Preparation of the Leamer
Step 2: Presentation of the operation

Step 3: Performance Tryout
Step 4: Follow-up.
Below are some of the common training methods utilized by the Human Resource
professionals
Apprenticeship Training
Programmed Learning
Audiovisual Techniques
Distance Learning
Vestibule or Simulated Training
Computer Based Training
Training Via CD-ROM and the Internet
As you can see, these methods are not totally isolated. For example, trining via distance
Jeaming can be done using the internet and via CD-ROM. Let us look at each of the methods
listed.
Apprenticeship Training is a work-sh1dy training method with both on-the-job and
classroom training. The majority of apprenticeship programs arc in the skiiied trades such as
carpentry, plumbing and electrical work. This training is assisted with guidelines for effective
apprenticeship training.
....
"""
....
Advantages
Quick and simple way to provide knowledge to a large group of trainees
hnohe experts or guest speakers that can motivate learning by training to the trainees
rdeYant examples and applications
Allow student presentations that" may increase the materiars meaningfl.ilness and
trainees attentiveness
Disodvantages
Lack participation involvement. feedback and meaningful connection to the work
environment
... Dit1icult for the trainer to judge efficiently the Ieamer s level of understanding.
....
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Introduction to HRM
Programmed Learning is a systematic method for tcJchingjob skills imoh ing

1.
2.
3.
Presenting questions. facts or problems to Ieamer

Allowing the trainee to respond
Providing feedback on the accuracy of the trainee s answer
Advantages
It reduces training time by about one-third
Let trainees learn at their O\Yn pace. proYidcs immediate feedback and reduce the risks of
error.
/.)i~advamages
Cost of developing the manuals and/or software is high

Traditional textbook provides more infommtion than the manual.
Audiovisual Techniques include very effectiYC use of films" video conferencing, and
audiotapes and is a ''idely use technique. In teletraining.. a trainer in a central location can
train groups of employee at remote locations via tele,ision hook up.
Distance Learning is used by geographically dispersed companies to provide infonnation
about new products, policies or procedures, as well as skills training and experts lectures to
field locations.
Types of distance learning techniques:

audio conferencing
docu-conferencing
video conferencing.
For example, video conferencing is by nature visual. interactive and remote. It allows people
in one location to communicate live with people with another city/country or with groups in
several other cities.
As someone who is directly involve in distance learning, do you think it is an
effective an efficient way to train employees?
Remember. vou did differentiQie rraining and learning earlier on in this chaprer_
Vestibule or Simulated Training is a training method that represents a real-life-situation,

with trainees decisions resulting in outcomes that mirror what would happen if they were on
the job. This method allow trainees to see the impact of their decisions in.a an artificial, riskfree environment. Simulated training is widely used to teach production process s~ills and
well as management and interpersonal skills.
Computer-Based Training (CBT) is an interactive training experience in which the
computer provides the learning stimulus, the trainee must respond and the computer analyzes
the responses and provide feedback to the trainee. It includes interactive video, CD-ROM and
other systems when they are computer driven. Studies show that interactive teclmologies
reduce learning time by an average of 50%
Training a n d [ j ]
Developing
Employees
mmmmumm
.....
-
Advantages
consistent instruction being developed
learners can easily monitor and pace their learning
increases learners retention and increased trainee motivation.
....
.....
Disadvantage
high investment needed
information must be monitored and updated.
Training Via CD-ROM and the Internet

Using a personal computer, animation, video clips and graphics can be integrated into a
training session. Internet is a method for sending and receiving communications quickly and
. inexpensively, way to locate and gather resources such as sofhvares and reports.
Using internet, trainees can communicate with trainers at their locations or across the global,
leave messages or documents and get access to 'rooms~ designated for conversation on
certain topics.
ACTIVITY
As a manager of a departmenL you realize that training is important. However,
sending staffs for training may affect your production. Will you send your staff
for training? Why'? \\ll1ich training technique would your prefer?
TRAINING FOR SPECIAl PURPOSE
Literacy Training Techniques

This is to train employee on basic reading, writing and arithmetic
Aids Education aims
..... to educate employees about AIDS
.... to reduce anxieties and maximize the chances that the employees will be able to work
together as a team
... to get employees to learn the fhcts about AID SO clearing up misconceptions and helping
to put the personal concerns of many emPloyees to rest.
As a manager c~la deportment ui/1 you educme your stofTon AIDS?
Wh~v?
Training for International Business

Globalization initiates a need for special global training program. Examples of global
training programs are:
...
...
...
The Cultural Awarcncss program - Language programs

Cross-Cultur.tl Training and orientation- language training
Basic Business for Foreign Ex~cutivc- Cross-Cultural Tcclmology Transt0r.
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Introduction to HRM
Diversity Training
Diversity training refers to tr.tining designed to change employee attitudes =tbout diversity
and/or deYcloping skills needed to work \Yith a din;rsc work force.
\:Vith an increasing diYcrse workforce. finns arc implementing diversity training programs.
The goals of diversity training are:
(i)
(2)
to eliminate ,a]ues. stereotypes and managerial practices that inghibit

employees personal dc\'clopment and
to allow employees to contribute to organizational goals regardless of their
race. gender, f3mily status. religious orientation or cultural background.
Custome1 Service Training {CST)

Move and move companies are tinding it necessary to compete based on the quality of their
service. The basic aim of CST is to train all employees to treat the cornpanys customer in a
courteous and hospitable manner. Excellent customer senice is regarded as vital competitive
edge by emp layers.
Group building training methods refers to training methods designed to improve team or
group effectiveness. Training is directed at improving the trainees skills as well as team
effectiveness. It involves trainees to share ideas and experiences, building group identity,
understanding the dynamics of interpersonal relationships and getting to know their own
strengths and weaknesses.
Types of Group building training:
~...
Adventure learning such as Outward Bound programs
~...
T earn training which involves coordinating the perfonnance of individuals who \VOrk
together to achieve a common goaL
vo+
Action learning which involYeS giving teams or work group an actual problem.
Empowering Employees also usually requires extensive training such as to develop the
problem-solving and analysis skills. For example, many companies, today use work teams
such as the 'QCC team to analyze job-related problems and come up with solutions.
PROVIDING EMPLOYEES WITH LIFELONG LEARNING
T odar s organisations depend on their first-line employees to recognize new opportunities,

identify problems and react quickly with analyses and recommendations_ To achieve'this and
to create work environment that favors learning many companies are attempting to become
learning organisations. A learning organisation is a company that has an enhanced capacity to
learn, adapt and change. It required a continuous and concerted effort to upgrade skill and
education levels so that employees can meet workplace challenges. This continuous training
provided through out employees/ careers is known as lifelong learning.
MANAGERIAL DEVELOPMENT AND TRAINING TECHNIQUES
What is Management Development ?
Training andcru
Developing
Employees
mmmmnmm
Management development is any attempt to improve managerial performance by ~importing

knowledge, changing attitudes, or increasing skills in order to meet the organization~s present
and.future needs. It improves manager's performance, gives them development
opportunities, and provides for management succession.
The particular aims of management development are to:
Ensure that managers understand what is expected of them
IdentifY managers with potential, encouraging them to prepare and implement
personal development plans and ensuring that they receive the required development,
trnining and experience to equip them for more demanding responsibilities within
their O\:Vll locations and elsewhere in the organization.
Provide for management succession, creating a system to keep this under review
(succession planning).
Dessler (2000) indicated that the general management development process consist of (I)
assessing the company's needs, (2) appraising the managers performance, and then (3)
developing the managers themselves.
Succession planning is a process through which senior-level openings are planned for and
eventuall:: filled. Succession planning takes place in stages. First, an organization projection
is made: here you anticipate your departments management needs based on factors like
planned expansion or contraction. Next the Human Recourse department reviews its
management skills inventory to identify the management talent now employed. Next,
management replacement charts are drawn which will summarize potential candidates for
each management slot, as well as each person s development needs. (Dessler. 2000)
MANAGERIAL ON-THE-JOB-TRAINING
Important managerial on-the-job training techniques include

Job Rotation,
Coaching I Understudy Approach
Action Learning.
We are sure you have heard of the three techniques mentioned above. Can you
describe them''
Job Rotation
Coaching I Understudy Approach - - - - - - - - - - - - - - Action Learning
Well. fetus see U~vou got them right.
Job Rotation involves providing management trainees with a series of job assignments in
various fimctional areas of the company or movemcnr among jobs in a single fimctional area
or department.
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Introduction to HRM
Job rotation helps management trainees:
(i)
(ii)
(iii)
(iv)
gain an overall appreciation of the company's goals

increases their understanding of different company functions
develops a network of contacts and
improves their problem-solving and decision-making skills.
\Vays to improve a rotation

(i)
progrnm~s
success
The program should be tailored to the needs, interest and capabilities of the
individual trainee.
The length of time the trainee stays in a job should be determined by how
f.:1st he or she is learning
The managers to whom these trainees are assigned should be specially
trained to provide feedback and to monitor performance in an interested and
competent way.
(ii)
(iii)
Coaching/understudy Approach. The trainee works directly with a coach (peer or

manager) who will motivate him, help him develop skills and provide reinforcement and
feedback. The understudy relieves coach of certain responsibilities, giving the trainee a
chance to learn the job.
Action Learning is a team training approach where management trainees are allowed to
work full time and analyzing and solving problems in other departments.
ACTIVITY
L \\That is 'Management Development" and why it is important?
2. Briefly discuss the various techniques ofOJT techniques
3. Do you think job rotation is a good method to usc for developing
management trainees? \Vhy or why not?
OFF -THE JOB TRAINING

OtT-the-job training is an effective alternative to on-the-job training. One of the advantage of
this approach is that the trainee can determine this own learning pa~e and the duration of
study. Listed are v~rious off -the -job training techniques/ methods.
Cnse Study
This is a written description of an organizational problem. This method require trainees to
identify and analyze specific problems, develop alternative courses of action and reco'mmend
the best alternative.
Management games is a development technique in which teams of managers compete with
one another by making decisions regarding realistic but stimulated companies.
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and~
Training
Developing
Employees
IB Ill EHil Dcu;

Outside seminars
Management trainees may also be allowed to attend seminars conducted by training
consultants or associations aimed at developing managers.
University- Related Programs
Most local universities conduct a short academic programs at ned to develop the workforce.
For example UiTM may conduct a 4-day program of Certificate in inventory management for
Managers or Certificate in Retailing for I :t, years.
Role Playing involves having trainees act out characters assigned to them. To be effective,
trainers need to engage in several activities:
(i)
before - to explain the purpose and the characters role of the activity to the
(ii)
during - need to monitor the time, degree of intensity and focus of the
groups attention
after
- debriefing.
tminees
(iii)
Role-playing may be video taped and viewed together followed by discussions on the analysis
of roles acted out.
Behavior 1'\r]odeling is a training technique in which trainees are:
(i)
(ii)
(iii)
shown good management techniques (of doing things) in a film/video

letting them practise the right way to do it and
providing feedback regarding each trainees performance.
Most companies may have their own in-house development centres. However, this does not
mean that they must provide all the training and development
program for the
organizations. They may offer their own internal program if they have the experts.
Otherwise, they can outsource the respective training and development program from
external experts.
ACTIVITY
You have seen a lot of terms in the last section. To help you remember, the
training techniques are listed below according to what lre have just
discussed. It is your 1'job" to make short notes for each technique- it is a
good uay to help you remember, so do not ignore this activity.
Briefl~_.
discuss the various training techniques.
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Introduction
co HRM
ON THE JOB TRAINING
i Training For Special Purpose

Apprenticeship Training
Literacy Training
Techniques
Managerial on-the-job-Training
Job Rotation
Programmed Learning
AIDS Education
Audiovisual Technique
Coaching I Understudy
Distance Learning
Training for International

Business
Approach
Vestibule or Simulated
Training
Diversity Training
Action Learning
Customer Service Training

Computer Based Training
Group Building_training
Training Via CD-ROM and
the Internet
OFF THE JOB TRAINING

Case studies
Management Games
University- Related Programs
Outside seminars
Role Playing
Behaviour Modelling
8.6
Evaluating the Training Effort
Training evaluation refers to the process of collecting the outcomes needed to determine if training is
effective. Evaluation of ihe training effort asks:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Are we doing enough training?

Are we spending enough resources (or too much) on training?
ls our training reaching the right populations"'
Is it moving the business agenda in the right direction
Is it contributing to the achievement of the business strategies?
Do our clients in the organizations vie\v training as accessible and
worthwhile?
Training andcru
Developing
Employees
mmmmumm
In general, there are two basic issues to address when evaluating a training program i.e.
(a)
(b)
the design of the evaluation study- (controlled experimentation)

training effects to measure.
a.
Controlled experimentation is a formal methods for testing the effectiveness of a

training program, preferably with pre and post tests and a control group.
b.
Training Effects to Measure

The basic outcomes can be measured are:
(i)
Reaction
focus on trainee satisfaction
(ii)
Learning
determining the level of understanding and acquisition of

knowledge, skills, attitude, behavior
(iii)
Behavior
to determine the level of improvement of behavior on the job
(iv)
Results - to identify the business results achieved by trainees.
What could happen if we do not evaluate our training effort?
Summary
Training and Development is an important tool for individuals as well as the organisations to
achieve their present and future needs. The training process consists of five steps: needs
analysis: instructional design: validation: implementation: and evaluation. Various types of
training techniques being discussed. however. the appropriate method for a training program
depends on the outcomes of the training need analysis process.
Management development is aimed at preparing employees for fhture jobs with the
organisation or at solving organizational on wide problems.
In determining the effectiveness of a tm.ining program these are four categories of outcomes
you can measure: reaction. learning. behavior and results.
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Introduction to HRM
:~CHECKLIST
o Design an effective socialization program for employees
o Discuss the training and development process
o Discuss the legal issues related to training
o Describe the processes involved in conducting a TNA
o Describe at least five training techniques
o Describe the managerial development and training techniques
o Explain why training e\'aluation is important

Organizational socialization
Employee orientation
Training Needs Analysis
Organizational Analysis
Task Analysis
Person anal~sis
On-the-job training
Management development
I a.
Job rotation
Coaching
Action Learning
Case study method
Management game
Role Play
Behaviour modeling
Training evaluation
e.
Describe the anxieties encountered by new employees as they experience their first days
of employment
What should the Human Resource Staff emphasize in an employee orientation program if the
majority of these new employees were unskilled employees?
Training is an investment on a person. The employer invests money and the employee invests
time and sometimes money as well.
How do training benefit an organization?
Discuss how you would know that an employee need tram mg.
Discuss five training methods for non- managerial development
Discuss five training methods for managerial development
Discuss why the.HR department must conduct training evaluation.
a.
b.
c.
d.
Training and development is a planned. continuous effort by management to improve

employee competency levels and organizational performance. It has the important dual
function of utilization and motivation. Training and development a1lows better utilization of
human resources.
Give two differences between training and development

Discuss four important training issues facing today's organizations
Give four benefits of training and development programs
Discuss three advantages and disadvantages of on-the-job training.
b.
2.
a.
b.
c.
d.
3.
\Career Planning and Development
\Nhat is a career -
Career Management
l_
IL_-r____c_a~r_e_e_r_P_Ia_n_n_i_n_g_______JI IL______c_a_re_e_r_D_eTv_e_lo_p_m
__e_n_t_____JI
_l_
Career Paths
Career Development Programs
~--~~----~
If----------'
Methods of Organizational
Career Planning and Development 1
Career Plateau
Career Counseling
~--------~
Human Resource Supported j

Career Development
j
Career Planning and Development

Individuals have varying expectations about the rewards and satisfaction they seek from their jobs.
To some individual, work is a painflll mechanism for earning enough money to support one s self or
one s family. But to other cmplo:. ees, they are not only seek good salaries and benefits but also the
desire to satisfy certain human needs through their work. And to another persons, work is the most
significant part of their lives~ in which they are totally committed to their jobs, have personal pride
and satisfaction from their work, to these group of employees what it mean to them, the job comes
first and ever;-1hing else comes second.
On a continuum of career interest, work maybe viewed as 'just a job~; at one end and as a career on
the other end.
In the past traditionally, managers did not try to justify t~is distinction for their employees- but today
Human Resource professionals are laying significant aCtive role in designing and implementing
programs that help employee to focus on career choices and objectives but also achieve the objective
they formulate. The programs created are specifically designed for the development of career paths.
The prOgrams that arc being structured fall under the general heading of Career Planning and
DeveiOJ).ment /Career Management.
( NB: In the process l?(exp/a;n;ng rh;s chapter .we lri/1 be u::;;ng the term career management).
HRM 533
Introduction to HRM
Table of Contents
CAREER PLANNING AND DEVELOPMENT

Lc;uning Objectives
9.1
\VIt:tt is a carto.cr?
169
170
171
9.2
\\1hat is career management?
Successful c;uccr mcmagement
171
171
9.3
Career Planninl!,
Cll'ccr pl;uming benefits.
Factors Hffecting career planning
Organizational Career Planning
lndhidual Career PlaiUling
172
173
174
176
9.-t
Career Development
178
9.5
MctholJs of Organiz;ttion C;trccr Planning and Development
178
9.6
Cuccr Paths
179
9.7
180
177
9.8
Factors that <lre Important for Successful Career Development
Positive results from a well-designed career development program
181
182
9.9
Career Counseling
182
9.10
Career Plateau (Plateauing)
183
9.10
Human Resource- Supported Career Development
184
Summary
185
186
186
Learning Objectives
After you have read this chapter you should be able to:
I. Discuss the career development processes as it relates to the individual and the organization.
2. Cite the benefits of career planning to the individual and organization.
3. Identify the various factors that affect career planning
4. List down the various activities involved in implementing the career development program.
5. Discuss the factors that are important to successful career development.
Career
and
9.1
What is a career?
Planning~9
Development~
mmmmnmm
A career is all the jobs that are held during one"s working life or pattern of work related experiences
(example job positions, job duties, decisions and subjective interpretations about work related events)
and activities over the span of the person's work life (Greenhaus).
9.2
What is career management?
Career management is the process of designing and implementing goals, plans and strategies that
enable Human Resource professionals and managers to satisfy work force needs and ailow
individuals to achieve their career objectives.
SUCCESSFUL CAREER MANAGEMENT
There are four factors for an organization to consider, to ensure the success of its career
management efforts:
i)
Proper Planning
The operating manager (line manager) and the Human Resources administrators must share
the responsibility for effective career management and work together to ensure that the line
and staff efforts are coordinated.
ii)
Support from top management

Top management must support this effort by encouraging internal promotion. through the
development of ernployees skills and the utilization of valid performance criteria for
promotion decisions.
iii)
Career management programs and processes

The management must omit or neglect any of the career management s programs and
processes such as organizational and individual career planning~ integrating organizational
and individual plans, implementation and evaluation.
iv)
Career match
The career management programs must be able to match the cmployers plaDs for the
employee with the employee s personal aspirations. The programs that only explain the
organizations career plans to the employees but do not assist them in clarifying their own
goals and developing a match between theirs and the organizations will cause a failure.
Therefore tht: employer and, the employee must discuss and negotiate to get a mutually
acceptable result
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Introduction to HRM
9.3
Career Planning
C::m:cr planning is dl'tincd .:ts thc process by which one selects career go<1ls and the path to those
go.:J.Is.
Career goals are the future positions one strives to reach as part of a career. It serves as benchmarks
along one s career path.
Figure Y. U-
( areer Planning Process
Feedback
Individual
Needs &
Aspiration
Individual
development
efforts
Personal
counseling &
r"
Matching
information
path
Matching
Organizational
Personal
needs & ---!~ planning &
opportunities
career
on career
Fonmal
training
& development
programs
Feedback
In practice. the career plmming process involved matching organizational career planning with
individuars career aspirations together with the opportunities available in the organization. The
career pathing is the sequencing of the specific jobs that are associated with those opportunities.
(Figure9.0).
If career management is to be successful~ the individual and the organization must assume an equal
share of the responsibility for it. For instance the individual must identify his or her aspirations and
abilities and through counseling, recognize what training and development needed for a particular
path. The organization also must identify its needs and opportunities and through workforce
planning, provide the ne~essary career information and training to its employees.
Then. the needs and opportunities of the individual and the organization will be matched in various
ways. The most widely use are
i)
ii)
counseling b,- the personnel staff

career counseling by supervisors.
This counseling can be conducted either formal or informal through workshops, seminars and
self-assessment centers.
Career
and
Planning~9
Development~
CAREER PLANNING BENEFITS.
[BIll Ell mDCHi
Source : Adapted from William B, Werther, Jr. & Keith Davis, Human Resource Management Fifth Edition,
McGraw Hill I 996).
I)
Aligns strategy and internal staffing requirements.

By assisting employees with career planning, the HR department can better prepare
them for anticipated job openings identified in the HR pi an, resulting in a better mix
of the talents needed to support company strategies.
2)
Develops promotable employees

Career planning helps develop internal supplies of promotable talent to meet
openings caused by retirement, resignations and grmvth.
3)
Facilitates international placement

Global organizations can use career planning to help identify and prepare for
placement across international borders.
-1)
Assists ltith v/orkforce diversity

\Vhen they are given career planning assistance. workers with diverse backgrounds
can Jearn about the organization's expectations for self-growth and development.
5)
Lowers turnover
Increased attention and concern for individual careers may generate more
organizational loyalty and lower employee turnover.
6)
Taps employee potential

Career planning encourages employees to tap more of their potential abilities because
they have specific career goals, not only does this prepare employees for future
openings, it can lead to a better performance among incumbents in their current jobs.
7)
Furthers personal grov.:th

Career plans and goals motivate emplo.yees to grow and develop.
8)
Reduces hoarding
Career planning causes employees, managers, and the HR department to become
a\vare of employee qualifications. preventing selfish managers from hoarding key
subordinates.
CJ)
Satisjles employee needs

\Vith less hoarding and improved gro,,1h opportunities~ an individuars esteem needs
such as recognition and accomplishment are more readily satisfied.
10)
Assist affirmative action plans

Career planning can help members of protected groups prepare for more important
jobs, this preparation can contribute to meeting affirmative action timetables.
NB:
To ret1/ize these benefits compunies are supporting career pltmning through career
education, information and counseling.
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Introduction to HRM
FACTORS AFFECTING CAREER PLANNING
There :m.:: scn::ral factors or clements that giYc an impact to career pbnning.
They arc (i) career stages (ii) career anchors ( iii) the environment
Career Stages
An organization c::mnot function at its fullest unless a way is found to dcn::lop the human
potcnti:tl of organization members. According to various HR researchers. indi\idual progress
through several career stages which follow life pattems. Each career stage is distinguished by
differing needs. motives and tasks. Each individual then will pass through a series of typical
career stages. as described as follows.
BasicaJJy. there are four level of career stages.
i)
First stage- Exploration stage/establ!shing identity.

During this stage, the adolescents and young adults are trying to de,elop their work
images from the mass media and personal observations. After assessing their talents
and limitations and develop their self-images of what they might be. their
occupational choices are graduall.Y fom1ed.
ii)
Second stage- Establishment stage

At this stage, a person chooses an occupation and establishes a career path. As part
of the establishment stage~ a young employees are required to resolve conflicts
between family and work in order to find a comfortable level of accommodation and
also are required to form a career strategy of how to succeed. For example working
hard, finding mentors ecetera
iii)
1l1ird stage- Maintenance stage

TI1is occurs when individuals are in their mid and late careers, During this period
they are given more responsible and important assignments and expected to achieve
their highest levels of productivity.
At this part, a person either accepts life as it is or makes adjustments. During this
phase also, career change and divorce occur because people seriously question the
quality of their lives.
iv)
Fourth Stage- Decline stage

Individuals are required to make preparations for formal retirement. They: must learn
to accept reduced roles with less responsibility and learn to manage less -:- structured
lives. Due to this a person may have lower aspirations and less motivation resulting
to additional career adjustments. For instance, person typically develop new
activities and responsibilities combined with increased leisure pursuits.
~~
Trace your career in terms of career stages.
Planning~9
mmEH!l JJ mm
Career
and
Career Anchors
Development~
Career anchors is a concern or value that you '"111 not give up if a choice has to be made.
According to Edgar Scheins there are five different motives that account for the way people
select and prepare for a career.
i)
Managerial competency
The career goal of managers is to develop qualities of interpersonal. analytical and
emotional competence. Jndividual who is using this anchor, want to manage.
ii)
Technical or functional competency
For individuals who choose this anchor do not seek managerial position.
iii)
Security
The anchor for security - conscious individual is to stabilize their career situations.
They often see themselves tied to a particular organization or geographical location.
iv)
Creativity
This individual has entrepreneur spirit and they want to create or build somethi:.g
is entirely on their own.
v)
~hal
Autonomy and independence

The career anchor for independent people is a desire to be free from organizational
constraints.
They value autonomy and '\"ant to be their own boss and work at their own place and
pace.
The Environment
This refer to the work environment in which career planning takes place.
occurrence of downsizing.
For example -
ACTIVITY
Based upon Edgar Schein's five motives. explain how you go aboUt in choosing :your
career.
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Introduction to HRM
ORGANIZATIONAL CAREER PLANNING
The process of establishing career paths within a tinn is referred to as organizational career
planning.
In most organization. career planning program art! expected to achieve one or more of the
following.
i)
More ~{!eclive developmem olavai/able wlem.

The individuals are more likely to be commined to the de\'elopment that is directed toward a
specific career plan.
ii)
Se/f:appraisal opponuniliesjor employees con.ndering nell or /radilional mreer palhs.

To some excellent employees. they do not view the traditional upward mobility progression
as their optimum career path.
iii)
More ~{liciem developmem ol human resources wilhin and among division ond or
ge<>graphic locations.
If the traditional progression of employees was upward within a division, career path should
be developed that cut across divisions and geographic locations.
iv)
Sati::,fCrction (?lemployees personal development needs.

Individual who see their personal development needs being met tend to be more satisfied 'vith
their jobs and the organization.
v)
Improvement (?{peJformance through on-lhe-joh training experiences provided hy horizontal

and verTical career moves.
1l1is mean that the job itself play the most important influence on career development.
vi)
increased emploJee loyalty and morivarion leading ro decreased turnover.

Individuals who believe that the organization is interested in their career planning wiH be
more likely to remain with the organization.
vii)
A merhod ({determining training and development needs.

If a person desires a certain career path and does not presently have the proper qualifications,
their absences identifies a training and development need.
Career Planning
and
~9
Development~
rammmumm
INDNIDUAL CAREER PLANNING
The primary responsibility for career planning rests with the individuaL
Learning about
oneself is referred to as self-assessment. How? For example

i)
Self-evaluation/ assessment procedure in tenns of identifying the strengths and weaknesses

balance sheet.
Strength
ii)
Weaknesses
a)
Work well with people
a)
Get very close to few people
b)
Hard working
b)
Do not like details.
Likes and dislikes survey-a procedure that assists individuals in recognizing restrictions they
place on themselves.
Like
NB
a)
Like to travel
b)
Like to meet people
a)
Dislike
Do not want to work for a large
organization.
In addition to a self assessment, individual s/z(lu/d he wise !tJ follow the J-1" guidelines to prepare for
(I new career path by (Mom(J' & Noe (/'' Edirion.)
Figure 9. I- Effecrs I?{Cnreer Planning
Career
Planning-Program
More
Realistic
Employee
Expectation
Supervisory
Role
Clarified
More effective
Use of
Systems
Enhanced
Personal
Career
Planning
Capabilities
No
Effect
Raised
Employee
Expectation
Enhance
Performance
Strengthened
Career
Commitment
And
Development
Action
Plan
Burden on
Supervisors
Strain
On
Systems
Improved
Retention
Improved
Utilization
Of talent
Organizational
Disruption
Disappointment
And
Reduced
commitment
Diminished
Performance
Turnover
Personal
Anxiety
NB: *(Prompt employee to deJ.e/op realistic expectation).
Figure 9.1 indicates the positive and negative effects of carc~r planning on employe~.
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Introduction to HRM
ACTIVITY
Based upon your experience or readings or observation or interview with

your colleagues can you l:xplain the reasons why self-appraisal so important to the
carea planning process'?
Assuming that you arc a consultant. determine how you want to go about in
structuring the career plan of your highly potential managers?
9.4
Career Development
Career development is a formal approach taken by the organization to ensure that people with the
proper qualifications and experience arc a,ailablc when needed. The approach \\"ill includes any and
all activities that prepare a person for sarisf)ing the nce'ds of the organization both 110\Y and in the
fi.1ture.
It usually involves both formal and informal means.
The career development program has been structured may be conducted in-house or by outside
sources. The principle that need to be observed in career development program are
i)
the t)ve of development skills that will be needed is determined by specific job demands.
ii)
the job itself has the greatest influence on career development.
iii)
development ''"ill occur only when a person has not yet obtained the skills demanded by a
particular job.
iv)
the time required to develop the necessary skills can be reduced by identifying a rational
sequence ofjob assignments for a person.
9.5
Methods of Organization Career Planning and Development
Usually the methods used are

i)
Superior or subordinate discussion

(superior and subordinates jointly agree on the career planning and development activjti<;s).
ii)
Company materials
The organizationS provide material specifically developed to assist their employees in career
program and development.
iii)
Performance appraisal system.

This is a valuable tool in career planning.
weaknesses can uncover developmental needs.
By noting, and discussing an emPloyees
Career
and
Planning~9
Development~
mmmmomm
iv)
Workshops
Some organization will conduct workshop lasting 2 or 3 days for the purpose of helping
workers develop career within the organization. The employees will then define and match
their specific career objectives with the needs of the organization.
9.6
Career Paths
Career path is a sequential pattern of jobs that make up one's career,

There are 4 types of career path.
I)
Traditional career path

Traditional career path is when an employee progresses vertically upward in the organization
from one specific job to the next. The assumption is that each preceding job is essential
preparation for the next higher level job.
But lately, this traditional approach has become flawed because of the business trends and
changes in the work force. For instant,
a)
b)
c)
d)
2)
A huge reduction in management ranks due to mergers. downsizing, stagnation,

grm\1h cycles and reengineering.
Extinction of paternalism and job security
Erosion of employee loyalty
A \vork environment where new skills must constantly be learned.
Network career path

A method of career path that contains both a vertical sequence of jobs and a series of
horizontal opportunities. This approach realisticaiJy represents opportunities for employee
development in an organization when compare to traditional career path.
3)
Lateral skill path

This lateral skill path moves \vithin the organization that can be taken to allow an employee
to become revitalized and find new challenge.
4)
Dual career path

A career path method which recognizes that technical experts, can and should be allowed to
continue to contribute their c:--.:pertisc to a company without having to become managers.
What about your own career path"? Ha,e you given it any thought'?
Does taking up distance learning has anything to do with your career?
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Introduction to HRM
9.7
Sown: .ldapredfrom.John .\f. !rancevich. /Iuman Resource .\lanagemem. Sen'llfh l:'dnion ..\/c:(irmr !Jill.
1998.1
l\:lany organizations provide a broad assortment of activities to help employees manage their careers.
1.
Mento ring
Assigning an experienced employee to help a ne\Y or in experienced employe~.
2.
Career Counseling
During employment interview
During performance evaluation
Psychological assessment
Coaching and development by supervisors
3.
Career Pathing
(Identifying a sequence of jobs through wl~ich individuals can expect to progress toward
higher levels of management).
new
Job progression plans for

employees
Job moves for high potential employees
Annual review of managers by a committee
Dual-career ladders (provide upward mobility for those people without removing them
from their technical specialty~ greater autonomy in practicing the profession).
4.

Succession planning and replacement charts.
Development and use of a computerized human resource information system.
5.
Career Information System

Job posting and bidding systems
Announcement boards
6.
Management and supervisory development

Special programs~ conferences and ...
Job rotation
In-house management training
7.
Training
Technical skills training
Intern programs
Tuition reimbursement
In-house supervisory training
8.
Program for special groups

Pre-retirement counseling
Career management and counseling for women
Refresher courses for mid-career managers
Outplacement program
Career
and
Planning~9
Development~
mmmrnnmm
ACTIVITY
Can you explain how useful are mentors for young, career-minded people ?
(NB: You can use your own experience if you have undergone through such process.)
9.8
,\'ource
Factors that are Important for Successful Career Development

...J.dap!ed.from Ra_vmond J. Stone, Human Resource .\lanagement, Second Edition, Wiley &
Sons 1995.
1.
'Performance
Performance is the foundation to career success. Employees who perform badly are rarely
considered for training and development opportunities or promotion ..
2.
Exposure
If an employee is to succeed~ he or she must become known to senior management. Good
performers can miss out on important career opportunities if they Jack exposure. Employees
can become recognized by the organisation s decision makers through maintaining superior
performance~ writing reports, making presentations and being involved in company training
and development programs and social activities.
3.
Mentors nnd Sponsors

Successful managers usually have a mentor or sponsor who helps advance their career by
offering advice, giving instruction and opening up career opportunities, The mentor is
usually on older. experienced senior manager. Sponsorships may be established forrna1ly by
an organization as part of an employees orientation or they may develop informally.
Bene.fits c~f"mentoring
AdYancc the career of the protege by nominating him or her for promotion or club
membership.
Provide the protege from controversial situations and suggest work strategies.
Provide counseling with regard to work and personal problems.
ProtCgC having developed more skills and self-confidence. will perform better and
proYidc longer service to the organization.
4.
Development/growth opportunities
On going expansion of skills and knowledge makes an employee more valuable, therefore
more attractive to an organization. Self-development overcomes the problem of reaching a
career plateau.
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Introduction to HRM
5.
:"ietworking
i'\,.,::tworking ml.!ans gaining ,.,:::xposurc outsid~ thi.! firm. Potential cont~H.:ts include bl!sincss('S.
gJn'nun;nt. tr;~dc unions. professional bodies. etc. It is ,.,:::xtrcmd: important do build a
net\\ ork of cont:Jcts who arc likely to be useful to your career dcYelopment.
6.
Goal Setting
\Vithout clearly set goals, employees will find it difficult to reJiizc their nKt:Ximum potential.
Their careers will be \\ithout focus and subject to aimless drift.
Succcssfill c.:neer
d~,elopmcnt requires a goal-oriented approach ir"it is do have purpose and give the employee
:1 sl..!nsc of direction and achieYcrnent.
POSITIVE RESULTS FROM A WELL-DESIGNED CAREER DEVELOPMENT PROGRAM
Sourc:' : ./dap!ed.fi-om Dm.-id .-l.. DeCenzo & .\"rephen J>. Robbins. Human Resource .\fmwgement,
nrth t'dition. 1/lfe,l'l~ sons.
1990.
A well designed career development program
9.9
1.
Ensure needed talent will be available.
2.
Improves the organization s ability to attract and retain high-talent employees.
'
Ensures the employees get opportunities for gro\\1h and development.
-1.
Reduces employee frustration
5.
Enhances cultural diversity
6.
Promotes organizational goodwill.
Career Counseling
To help employees establish career goals and finds appropriate career paths, career counseling is
being conducted by various departments in the organization.
The career counselor may be someone who listens to an employee s interests and provides the
specific job related information or help employees uncover their interest by administering and
interpreting aptitude. skills, psychological and other tests. The two tests that are useful for guiding
people into occupations that are likely to be of interest to them are
i)
Strong vocational interest blank - a method of determining the occupation in which a person
has the greatest i'nterest and from which the person is most likely to receive satisfaction.
These tests compare the individuars interest \Vith those of successful employees in a specific
job
ii)
Kuder preference record- measure the degree of interest in mechanical/clerical scientific and
persuasive activities, among others.
..
To be truly successful, career counselors must get employees to assess themselves and their
environment.
Career
and
9.10 Career Plateau (Plateauing)
Planning~9
Development~
mmmmumm
Career plateau occurs when an employee~s job functions and work content remain the same because
of a lack of promotional opportunities within the organization.
When this happens, employees find themselves blocked and unable to achieve further advancement.
Emplo,e-: 'plateauing' creates problems for both the individual and the organization.
This problem can be overcome by
i)
ii)
ii)
Lateral employment moves (developing skills)

Job enrichment (challenge of job, job meaningful, greater sense of accomplishment etc).
Exploratory career development (gives an employee the opportunity to test ideas in another
field without committing to an actual move).
Or a more detail or indepth action strategies in addressing career plateau according to

Kaye and Farren- Figure 9.2
Leibowitz~
Table 9.2 -.-letion srraregiesjor addressing career plateaus

For employee
!
!
:
!
!
!
!
Develop special expertise.

Ask for specific feedback
Increase visibility and reputation in the organization.
Look for what's missing in your job and try to change it.
Seek training and skill upgrading
Build networks in other departments and divisions.
Look for opportunities outside of work.
For Managers
!
!
!
!
=
!
=
=
!
:
Redesign jobs to create more flexibility

Encourage or recommend new ways of doing tasks
Give people time to learn on the job.
Give candid feedback
Provide opportunities for peer coaching
Provide training and skill~upgrading opportunities
Provide exposure for all your people, not just for the stars.
Give non~monetary recognition
Build strong networks across the organization
Make more use of project terms
For Organisations
!
:
:
:
:
!
:
:
:
:
(Source:
Create generalists
Pay for performance
Base career paths on skill and mastery
Set up job* rotation programs to create lateral movement and broaden skills
Work to change the organizational structure
Provide sabbaticals
Provide access and opportunity for mentoring
Recognise employees for their experience and knowledge, not just for time on the job.
Use line people as instructors in programs.
Set up communication channels to ask plateaued employees what would motivate them.
l. B. l.eihowirz. HI .. J.:c~re and C.F Farren, 'l17rar!O do abof/1 career gridlock'. 1inining and Detlopnltmt
.Munwl. mi. .f.f. no. -1 ..lpril/990. p. 32j.
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Introduction to HRM
9.10 Human Resource- Supported Career Development

Car~cr d~' dopmcnt
the
assistant~
should not rei~- solely on indiYidual efforts. Career dcYc!opmcnt often inYoln:s
of m~magcrs and the HR department.
\Vithout coaching from operating managers or the HR department. employees may take actions, that
arc not in the best interest of the organization or themselves. The HR department does more to help
cmployecs careers than just conduct career information seminars. For example. the training and
development programs are a big stopping- stone in most people s careers.
In addition to helping employees. the HR department seeks many goals through its_ career planning
acti,itics. such as
i)
ii)
to de,elop an intemal pool of talent

help trainers identify training needs among employees etc.
HowcYer. for the benefits of career planning and development to accme to the organization and its.
People. the HR department must enlist the support of management, particularly to management.
\Vithout feedback also. it is difficult for employees to sustain the year of preparation sometimes
needed to reach career goals. So HR department can provide feedback 'Yith regard to career
development efforts in many forms, for instant.
To give employees information about job placement decision. An employee who pursues career
development activities and is passed over for promotion may infer that career development is not
worth the effort.
Unsuccessful candidates for \'acant openings internally should be told \\hy they did not get the career
opportunities may sought. The objectives of their feedback are
i)
to assure bypassed employees that they are still valued and will be considered for
future promotions if they are qua1ified
ii)
to explain why they were not selected
iii)
to indicate what specific career development actions they should undertake.
The result of this feedback allows the employee to adjust his or her performance and career plans.
(Figure9.3)
Career
Planning~9
and Development~
Figure 9.3
A System view ofcareer planning and development
Career
Planning
mmmrnocH
Career
Paths
Career
Goals
Career
r~"
Feedback
Source : William B. lferther, Jr. and Keith Davis - Human Resources and Personnel .\lanagement
Third Edition, Prentice Ha/11996.
(The planning process enables employees to identify career goals and the paths to those goals.
Through developmental activities, the \VOrkers seek ways to improve themselves and further their
career goals) .
../CHECKLIST
Are vou now able to :
0 Explain what career management is
0 Cite factors that affect career planning.
0 Discuss the benefits of career planning to individual and organization.
0 Explain and carry out the activities in the career development program.
0 Indicate the importance of an effective and successful career development.
Summary
Career management is the proc~ss of designing and implementing goals, plans and strategies that
enable HR professionals and managers to satisf) workforce needs and allow individuals to achieve
their career objectives. There are four factors for an organization to consider to ensure success of its
career management efforts :- proper planning support from top management, career management
programs and processes and career match. If management take proper care of the career management
oftheir employees. it will not only benefit the individual but organization too.
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Introduction to HRM

Career
Career anchor
Career development
Career management
Career match
Career Planning
Career Plateau
Career Paths
career Counseling
Self-tests
Answer either Tnte or False.

I.
A career maybe defined as the individually perceived sequence of positions occupied by an

individual during the course of ones lifetime and would include the attitudes and behaviors
associated with work-related activities and experiences.
2. The first step in taking hold of your career is to stand back and take a hard look at yourself.
3. In order to minimize e3rly career problems and Jessen the possibility of unrealistic e.-"Xpectations, it
is important for the new employee to receive periodic salary increase.
4. The major tasks in the middle -career stage are to examine and reappraise the early career results~
make changes in goals and remain productive on the job.
I.
Discuss what are the reasons for the trend tO\"Vard increased emphasis upon personal
de\'elopment, counseling and career growth programs?
i)
What can career planning and development programs accomplish?
ii)
What factors appear to contribute to the perceived effectiveness of career planning

and development programs''
(Adapted from ITM- BM.MEI 93/HRM 540)
Career Development Programs rire developed to further the advancement of employees \~ithin
an organization. As an HR officer in charge of the development of this program~ what would
be rhe basic coriditions that must be present if Career Development Program is to be
successful?
3.
(Adapted form ITM - BM/MEI 95/HRM 540)

Answer To Self-test
I. T
2. T
3. F
~.
EDC
PERFORMANCE APPRAISAL
Performance appraisal is the process of assessing how well employees are doing their jobs. Although.
most managers and employees dislike the performance appraisal process, many realise that periodic
reviews can help employees improve their performance over time. Performance appraisals play many
important roles in such as a guide for employee career planning and for making termination decisions.
Companies with poor performance appraisal system will face tremendous human resource problems.
Being a staff of a company or owning a company, you definitely had some experiences with
performance appraisal for example, ;.'our performance will be appraised each year for certain
re\vard/punishment purposes.
Therefore this chapter will discuss fhrther related issues to performance appraisal from the employee
and employcr"s perspective. Take a look at the overview map below.
Definition
Purpose of Performance Appraisal
Performance.Appraisal Process
Performance Appraisal Methods
, .""'",. v. ,.:-.
Problems of Appraisal
"~
'------,-----_J
,----------'-------,
TQM Based Appraisal
For Managing Performance
4.
- "'
~.-
$<;.
'.
HRM533
Introduction to HRM
Table of Contents
PERFORMANCE APPRAISAL
Le;trning Objectives
187
188
10.1
Definition
189
10.2
Purposes of Performance Appraisals
189
10.3
Pc1form:mce Appr;lis:ll Process
190
10.4
Pcrformomce Appmis:ll Methods
191
10.5
Problems of ApJ)raisal
Ho" to .A.xoid Appraisal Problems
Who Conduct Perfonnance Appraisal?
192
10.6
The AJ)J)n\isal Inteniew
How to prepare for the Appraisal interyiew
Ho" to Conduct the Inter>iew
194
194
TQJ\1-B;tsed Appr;tisals for Momnging Performance
10.7
193
193
19.\
195
Summolry
196
197
197
Learning Objectives
Upon completion of this chapter, you should be able to:
I.
Define the term pert'onnance appraisal
2. Explain how performance appraisals can be usefhl to organizations

3.
Discuss the various perfonnance appraisal methods and the pros and cons of each
4.
Discttss the problems in performance appraisal
5_ Conduct a more effective appraisal interview.
EDC
::::siiJ
Performance~
Appraisal~
[B[DE][J]l][J][;
10.1 Definition
Dessler (2000) - Performance appraisal is defined as evaluating on employee s current or past
perfonnance relative to his/her performance standards. The appraisal process therefore involves:
I.
2.
setting work standards

assessing the employee s actual performance relative to these standards
3.
providing feedback to the employee s actual perfommnce deficiencies or to continue

to perform above par.
Jackson & Schuler (2000) dictates that performance appraisal refers to a formal stmctured system for
measuring. evaluating and influencing an employees job-related attributes. behaviors and outcomes.
Its focus is on discovering how productive the employee is and \Vhether he/she can perform as or
more effectively in the future. so that the employee, the organization and society ail benefit.
/;>.
~ased on the two definitions. define performance appraisal using your own words
10.2 Purposes of Performance Appraisals
Perfonnance appraisals are used for so many important purposes. In general. the organization
appraises the employees performance in order to:
i.
To reward employees _lOr improvement

1l1e performance data will provide indications on how/how much should the employee be
rewarded for his/her good performance
11.
To guide human resource actions by providing information upon which promotion and salary
decision can be made
iii. Provide employee
lfilh
infi:Jrmation for their own personal development organization
JV.
To provides an opportunityfor the employee organization to ident(fy type a_(training needed

for the employee s career planning
To integrate human resource planning and co-ordinate other human resource fimctions. Such
as for making termination decisions.
To conclude, performance appraisal is useful for administrative and development purposes as follows:
Administrative Uses
Compensation
Dismissal
Promotion
Downsizing
LaYoffs.
Development uses
Identifying strengths
Development planning
]dentifying areas for grm"1h
Coaching and Career planning.
HRM533
Introduction to HRM
ACTIVITY
\Vhy does employee performance vary even after employees have successfully
passed rigorous recmitment, selection and placement procedures? How can a
performance appraisal address this performance variability?
10.3 Performance Appraisal Process

A typical performance appraisal system involve (Figure I 0.1)
Identification of criteria for assessment. may be based on job description,

performance standards. person specifications and so on.
The preparation by the subord'inate s manager of an appraisal report
An appraisal intenrie\Y, for an exchange of views about the results of the
assessment. targets for improvement, solutions to problems and so on.
Review of the assessment by the assessors own supen;isor, so that the
appraisee does not feel subject to one person s prejudices. Fonnal appeals
may be allowed, if necessary to establish the fairness of the procedures
The preparation and implementation of action plans to achieve improvements
and changes agreed: and
Follow-up: monitoring the progress of the action plan.
>
?
r
"r
CORPORATE PLAN
~
Purpose of appraisal
~
Identification
Assessment
of criteria for
assessment
f--.-+
'
'''
Job
requirements
(Report) by
Manager
...........
Assessment
(interview)
f----
Followup action
'
Employee's
Performance
Job description!
analysis
Jointly agreed
concrete
conclusion
Feedback.
''
'''
'''
''
.
.
'
------------------------- --!
Figure 10.1: T_1pica/ performance appraisal system
ACTIVITY
Look up the procedures manual of your organization and read through your aPpraisal
procedures. Also get hold of any documentation related to them; the appraisal report
form and notes in particular.
Describe the performance appmisal system set by .your organization. How effective do
you think your organisations appraisal proc.edures are?
Performance~
Appraisal~
10.4 Performance Appraisal Methods
mmEHD om li
Thereare several performance appraisal methods but there is no one method best for aU
organizations. The type ofpetformance appraisal method used will depend on its purpose
Graphic Rating Scale (GRS) Method
GRS method is the most popular technique for appraising performance. This technique
requires the rater to list a number of traits and a range of performance value for each traits.
Each traits of characteristic to be rated is represented by a scale. The employee is then rated
b~, identifying the score that best describes his/her level of performance for each trait.
Ranking I\'Jethod
ln this method. the employees are ranked from best to worst on a particular trait and then rank
them from highest to the lowest.
Paired Comparison Method
ln thiS method for every traiL every subordinate is paired with and compared 'to every other
subordinate to indicate who is the better employee of the pair.
For example. there are five employees to be rated. Using this method. you need a chart of all
possible pairs of employees for each trait. Then for each trait indicate (with a+ or-) who is
better employee of the pair. The employee that has the most + marks will be ranked highest.
Forced Distribution Method
\Vith this method. predetermined percentages of ratees are placed in .various performance
categories. For example you may decide to distribute employees as follow:
I 0% high performers
80% average performers
I0% low performers.
ln other words, this system forces the supervisors to identify no more then I Oo/o of his
employees as high performers.
Critical Incident Method
This method requires the supervisor to keep a log book of each subordinates work-related
behavior. The supervisor and subordinate then meet periodically and discuss the latter's
petfonnance using the specific incidents as examples
Narrative Form
The rater is required to write a brief narrative describing the employee s perfonnance. The
rater is also required to write down critical examples and an improvement plan designed to
aid the employee in understanding where his/her performance was good or bad, and for
improving that performance. A summary performance appraisal discussion then focuses on
problem solving.
HRM533
Introduction to HRM
Behavioral Anchored Rating Scales (BARs)

BARs is an appraisal method that aims at combining the benefits of narrative critical
incidents and quantified ratings by anchoring a quantified ratings by anchoring a quantified
scale with specific narrative examples of good and poor performance.
Example:
9
8
BARs scale for an account clerk:

{Extremely good)
Very knowledgeable conscientious, skill in

monetary transaction, high observational ability.
(according to expert opinion)
6
5
4
3
2
1
(Extremely poor)
Poor product knowledge, poor skill in monetary
transaction, .
The Management by Objectives (MBO) Method

MBO involves setting specific measurable goals 'vith each employee and then periodically
reviewing the progress made.
This method may create confusion if the objectives set are unclear and unmeasureable.
Furthennore, setting the objectives (the organization and departmental objectives) are time
consuming.
Explain how would you use the paired comparison method, the forced distribution
method and the BARs.
10.5 Problems of Appraisal

Some of the problems that lead to ineffective of performance appraisal in improving the
performance of subordinates are:
I.
Managers act in their traditional role of judge rather then set performance goals
together and then evaluate subordinate progress toward the set goals
2.
Shifting standards- some managers rate each subordinate by different standards

and expectations. To be effective, the appraisal method must be perceived by
subordinates as based on uniform. fair standards.
3.
Rater bias- personal bias regardirig sex, race, color, religion, style of clothing, or
political vie,vpoint can distort ratings
EOC~
4.
Different rater patterns- Managers differ in their rating styles. Some Managers
rate harshly~ others easily. Therefore~ it makes difficult to decide which employees
should be rewarded due to lack of uniform rating standards
5.
Recently of events error- Employees should be rated based on his/her performance

through out the year, not on his/her current or past three month s average behavior.
6.
The halo effect- There is a tendency for managers to rate subordinates high or low
on all performance measures based on one of their characteristics. For example, an
attractive or popular employee might be given a high overall rating. A manager may
also rate high on productivity and quality of output as well as on motivation for
employee who works late constantly.
7.
Central Tendency- Many supervisors have a central tendency when fitting in rating
scales.
HOW TO AVOID APPRAISAL PROBLEMS
There are several wa:ys to minimize the impact of appraisal problems by convincing the
subordinate to view the appraisal as a fair one by:
1.
n.
m.
1v.
Evaluate his/he perfonnance frequently

make sure )'OU are familiar with the person-s performance
_make sure there is an agreement between you and your subordinate concerning
his/her job duties and
solicit the person-s help when you formulate plans for eliminating perfonnance
weaknesses.
WHO CONDUCT PERFORMANCE APPRAISAL?
Supervisors who rate their employees

Employees who rate their supervisors
Tearn member-s who rate each other
Outside sources
Employee self-appraisal
Multi source (360 ) appraisal.
Explain the problems to be avoided in appraising performance. Give examples of

situations you encountered in the process of appraising or being appraised.
EDC".
';;:zm
HRM533
Introduction to HRM
10.6 The Appraisal Interview

Appraisal interview is an interview in \\:hich the supervisor and its subordinate review the appraisal
and come up with a plan to rectify deficiencies and reinforce perforn1ance improvements.
There are three basic types of appraisal interview, each 'Yith its o'"vn objectives as indicated below;
Appraisal Interview Type
Appraisal interview Objectives
Performance is satisfactory- employee is

promotable
Make development plans
Satisfactory- Not Promotable
Maintain performance
3.
Unsatisfactory- Correctable
Plan correction
HOW TO PREPARE FOR THE APPRAISAL INTERVIEW
The preparation involves three main tasks:

a.
Collate data and compare the employee s perfom1ance to the standard

also review the files of the employee-s previous appraisals
b.
Prepare the emploYee- give ample time (at least 7 daYs( for him/her to prepare
c.
Choose time and place- agreeable and comfortable to both party.
HOW TO CONDUCT THE INTERVIEW
Four basic things to keep in mind

Be specific and direct
Don t get personal
Encourage the person to talk
Don t tiptoe around.
Throughout the interview process, it is normal for the employee to retaliate when attacked.
As a supervisor~ you must able to handle a defensive subordinate as well as to criticize them.
In dealing with defensive subordinate. you should
1.
2.
3.
4.
Recognize the defensive behavior

Do not attack a person s defensive e.g. By mentioning 'sales is down. instead of
y,ou are not selling.
Do not continuously criticize- give sufficient time. a more rational reaction takes
over and
Recognize your own limitations.
When criticism is required, ensure that the person s dignity and sense of growth is
maintained.
Performance~
Appraisal~
Therefore. criticism should be

done in private
done constructively
objective and free of any personal biases .
rB [i] EH!liJ [!][;
Subordinate is said to be satisfy with appraisal intervie\v when the feel not threaten during the
interview (2) able to express their ideas and feelings and (3) having a helpful and constmctive
supervisors conduct the interview.
On the other hand~ you as the manager must ensure that the appraisal interview manage to
(I) clear up job-related problems (2) setting measurable performance targets and (3) set a
good schedule for achieving the new targets.
ACTIVITY
Explain how to conduct an appraisal interview ..
10.7 TQM-Based Appraisals for Managing Performance

Many experts feel that traditional appraisal don t improve perfommnce and may actually backfire
because:
I.
2.
3.
4.
They create conflict between supervisor and subordinates and lead to dysfunctional behavior
The traits measured are often personal in nature
They believe that organization is a system and motivation is not the only determination of
employee s performance
Believe that traditional appraisal had no role in performance management process.
Performance management can be defined as a strategic and integrated approach to delivering

suswined success to organization bv improving the perfOrmance o(the people who works in them and
bv developing the capabilities o(teams and individual contributors. Performance Management is
integrated in four senses:
Vertical integration- linking business, team and individual objectives

Functional integration -linking functional strategies into different parts of the
business
HR integration -linking aspects of human resource management for individual as
well as organizational achievement
The integration of individual needs with those of the organization.
As a consequence. scholars such as W. Edward Deming, suggests conducting a TQM-based approach

to avoid ti]e more glaring appraisal problem.
HRM533
Introduction to HRM
The characteristic of a TQM-based performance management oriented appraisal would include:

(Dessler, 2000)
An appraisal scale that contains relative few performance- level
categories and avoids a forced distribution
Objective ways to measure results. avoiding subjective criteria such as
teamwork and integrity
A 'vay to determine whether any performance is a result of
(I) employee motivation (2) inadequate training, or (3) external factors
360 degree feedback
Adequate samples of work behaviors
An atmosphere of partnership and constructive advice
A through analysis of key external and internal customers needs and
expectations on which to base performance appraisal standards.
ACTIVITY
Explain why many experts feel that traditional appraisal don "t improve perfonnance.
Summary
Performance appraisal is a system that provides a periodic review and evaluation of an
individuar s or group job performance. It serve several purposes either for administrative or
individual development.
Performance appraisal methods include Graphic Rating Scale, Ranking, Paired Comparison,
Forced-distribution method Critical Incident Method, Narrative form, BARs and MBO.
Managers need to understand the performance appraisal process and try to avoid appraisal
problems to ensure effective performance appraisal.
TQM-based appraisal provides a holistic approach in appraising employees .
. . ; . CHECKLIST
0 Define the term performance appraisal
0
Explain how performance appraisals can be useful to organizations
Discuss the various performance appraisal methods and the pros and cons of each
Discuss the problems in performance appraisal
Conduct a more effective appraisal interview.
Pertormancer
Appraisal~
[B[i]E][l][J[ll[;
Appraisal interviews
Performance Management
Graphic Rating Scale Method
Ranking Method
Paired Comparison Method
Rater Bias
Forced Distribution Method
Critical Incident Method

Narrative Form
Behavioral Anchored Rating Scales
Management by Objectives
Halo Effect
Central tendency
TQM biased Apparaisal
Discussion Questions ..............."'"""""'"""'"'""-""""""""""'"""""""""..,.......,"""'....,.....,

I.
(a) Discuss four principal uses of performance appraisal to a manager

(b ) Describe the rating scale method of appraisal and the problems generated by this method
(c) \:Vhat is an appraisal interview and for what reasons are appraisal interviews conducted.
2.
State and briefly discuss the basic purposes of performance appraisal. Briefly describe the
various alternatives as to \vho should conduct performance appraisal.
3.
Explain performance appraisal. Hmv does an organization benefit ftom implementing a

comprehensive performance appraisal system?
4.
Discuss the characteristics of an effective performance appraisal system. Why should appraiser
trading be an important issue for organization to consider?
5.
(a)
(b)
Distinguish between administrative and development uses of performance appraisal

Describe the various possibilities of who should conduct the performance appraisal.
\Vhich is the most common? Wh:y?
HRM533
Introduction to HRM
NOTES
MANAGING EMPLOYEES DISCIPLINE

Employee discipline is one of the main managerial issues in employee relations. When a manager
must take action against an employee for violating an organizational work mle or for poor
performance, the manager uses the organizational disciplinary procedure to resolve the problem.
Some organizational have very formal disciplinary procedures, others are less fonnal, some may have
no set procedures at all.
Managers should view discipline as a corrective and preventive measure, putting the wrong employee
back on the right path instead of punishment for going wrong. The corrective approach is "both more
humanitarian and more cost-effective, hO\vever it is up to the manager of which to emphasis.
lt theory it is clear that the aim of disciplinary action is to ensure that the breach of standards is not
repeated by those being disciplined. Howevero to imposed a disciplinal) action involve several
procedures. This chapter will only discuss issues related to managing employee disciplines. Issues
on how employees aired their grievances and the organizational grievances will be discussed in
Chapter I 5.
Before you proceed . take a look m the overview mt~p below.
Managaing Employees Discipline
Definition
Organizational
Rules and Regulations
Causes of Disciplinary Actions
Supervisory Resistance
to Discipline
Approaches to Disciplinary
Administration
Hot Stove Rule
Progressive Discipline
Positive Discipline
Penalties
HRM533
Introduction to HRM
Table of Contents
MANAGING EMPLOYEES DISCIPLINE
199
Learning Ob.fccthes
200
11.1
Definition
201
11.2
Org:misational Rules and Regulations
201
11.3
Causes of Disciplin;tr~ Actions
201
11.4
SuperYisoQ Resistance to Discipline
202
11.5
Approaches to Discipline Administration
203
Hot Stove Rule

Progressive Discipline
Positive Discipline
203
203
203
204
206
Penalties
Don't Let a Firing Backfire
Summary
207
208
208
Learning Objectives
At the end of this chapter. you should be able to:
I.
2.
3.
4.
Explain the meaning of organizational discipline.

Explain the causes of disciplinary actions
Describe supervisory resistance to discipline.
Discuss the approaches to discipline administration.
Managing~l
Employees
Discipline
11.1 Definition
wmmmucn;
Organizational discipline can be defined as an action taken against an employee who has violated an
organizational mle or whose performance has deteriorated to the point where corrective action is
needed. The disciplinary action taken are based on the organizational rules and regulations which are
vital for ensuring safety of the organization and its employees.
It is the management prerogative to set the mles. however, employees representatives or unions are
normally involved in the settings of the mles. Regardless of the numbers of rules sec the organization
must clearly communicate it to ensure every simple person in the organization being informed and
aware of the rules. Some organization produce a hand book. listing all the cornpanys rules and
regulations. Orientation program delivering the C<?mpan~' s mles and reputations.
11.2 Organisational Rules and Regulations

There is no two companies that have similar mle regulation. The companys top management
detem1ine their work rules and which to enforce. Generally. the common work mles that a company
enforce are:
1.
2.
3.
4.
5.
All workers must punch their 0\\11 time cards before and after work. Punching other
workers cards is against the regulation
All workers must conform to the company's \vorking hours
Theft or dishonestly is considered as misconduct
No one is allow to sleep during working hours
Failure to follow safet}' rules and regulations may lead to disciplinary action.
Companys nonnall:y will update and revise their rules and regulations. However,
any changes in the regulations must be well communicated to be organization s
society.
11.3 Causes of Disciplinary Actions

Generally there are two types of conditions for disciplinary action to be taken
I. Poor job perfom1ance that negatively affects an employees job performance,

such as absenteeism, sleeping on the job or dishonestly
2. Actions that indicate poor citizenship such as fighting on the job and abusing
custom"ers.
It should be noted that determining why an employee is performing at unsatisfactory level is

of critical importance. As a manager, we should not only aware for employee performance
problems but also to identifY the causes of problem. We should uncover the true causes of
performance problems and seek solutions to eliminate or minimize them.
HRM533
Introduction to HRM
Some causes of unsatisfactor:' performance are :
Lack of skills and abilities
Lack of motivation
Rule Breaking
Personal problems.
ACTIVITY
.
f;, __can
'_d_e-nt_i_f}_
t_h_e_c_a_u-se_s_o_f_u_n_s-at-i-sf:-a-ct_o_ry_-_p_er-fo_r_n_,a_n_c_e_a_t_y_-o_u_r_o_rg_a_n-iz_a_t-io_n_.
-D-is-c-us_s_h_o_'_v--'
~""#'
you overcome
or minimize the problems.
11.4 Supervisory Resistance to Discipline

Many managers and supervisors are unwilling to use discipline or sometimes will even put
off discipline. They find disciplining an employee difficult and painful.

Discipline is often a dreaded task because of:
I.
Supervisors may find it distasteful to discipline an employee who is also a
friend.
2.
Some feel that application of discipline forces them to 'play God. They are
uncomfortable in the role of, judge and jury - to define precisely "'hat is
right and what is wrong.
3.
4.
Supervisors may lack of ability to discipline- just sidestep the issue.

Supervisors sometimes do not get support from top management to use
discipline
5.
The organizational culture that allows 'avoidance' to discipline
6.
The disciplinary process and procedure normally involves l~ng perio~
7.
Employees whom being disciplined, may prolong the case to higher

authorities.
As a consequences. some manages would rathet to ignore o avoid facing discipli_ne problems
of their employees.
Managing[g]l
Employees
Discipline
l3 liJ EH!liJ CJ r:;

11.5 Approaches to Discipline Administration
HOT STOVE RULE
Administering discipline should be analogous to the bum received when touching a hot stove.
Hot-stove rule refers to a set of guidelines used in administering discipline that calls for quick
consistent. and impersonal action preceded by warning. This approach also suggests that
discipline should be directed against the act rather than the person. Other key points of the
hot-stove mle are:
lp
lp
lp
Immediacy
For discipline to be most effective it must be taken as soon as
involving an emotional, irrational decision
possible but without
Advance p.:orning
An employee must be given advanced warning before any disciplinary action taken
Consislency
Inconsistency Jov~:ers morale, diminishes respect for management and leads to
grievances.
PROGRESSIVE DISCIPLINE
This is the most commonly used form of discipline. It involves the normal sequence of
actions taken by management in disciplining an employee would be oral warning, written
warning, suspension and discharge. Actions taken to modify employee s behavior will
progressive!:' become more severe as the employee continues to behave improper/or no sign
of performance improvement and may be suspended first before being dismissed.
It should be noted that management must be able to show, generally through the
preponderance of evidence that the offense \'vas committed. The employee also hris the right
to a careful and impartial procedures. (Maimunah, 1996)
POSITIVE DISCIPLINE
Viewing employees as the most important asset of the organization this concept emphasis
that employee are responsible and accountable for their personal conduct. This concept also
reveals the importance of interaction/communication between superior and subordinates as
means for resolving employees misconduct. Employees \vere given explanation and advises
so that he or she can do early correctionS. In other words, positive discipline is a
management philosophy that assumes that improved employee behavior is most likely to be
long-lived when discipline is administered without revenge or abuse.
HRM533
Introduction to HRM
There are four steps to positive discipline:
Counseling
Internal Counseling services or "Employee Assistance program are services given to
employees on a range of social as well as work-related problems. ll1e employees
supervisor also can act as a Counselor. The Counselor will advise as \veJI as develop
plans an schedule for the employee to solve his problem. In this approach.
confidentiality is guaranteed and the oral discussion will normally be followed by
informal oral agreements.
Written Documentation
If there is no changes in the employees behavior a second meeting with the
employee will be arranged. 1l1e employees will be reminded about his
behavior/performance followed by a written reminder.
Final Warning
Regardless of counseling session and written reminder, the employee still does not
show any performance 'improvement" a final warning letter \Vill issued. This final
warning indicates that the employee is at risk of being dismissed. This step will give
the employee sometime to evaluate himself and come up with a new solution.
Discharges
This will happen if the employee continuously fail to show any changes to improve
his performance/behavior after the final warning. A discharge has consequence for
both the employee and the employer. Loss of income is usually the most serious
setback, because an employee discharged for disciplinary reasons generally cannot
collect company-provided supplement benefits. To the employer, a botched
discharged can lead to a highlY publicized. Costly lawsuit an significant damage to
the firm s reputation. Therefore. supervisors and managers should be come effective
counselors.
PENALTIES
Employers can penalize employees who fail to conform to the Company's rules and
regulations. l11e penalties could be inform of oral \Vaming, written warning, downgrading or
dismissal.
The Employment Act (Section 14) states that: '"An employer may, on the ground of
misconduct after due inquiry:
a.
b.
c.
dismiss the worker without notice

downgrade the employee
impose any other lesser punishment as he deems just and fit.
(Maimunah (1996) dictates that if the employee is covered by a Collective agreement, it is

unlikely that the employer can impose any penalties other than those listed in the agreement.
Managing~l
Employees
Discipline
[fJ[I]EII!lllnlli
For example~ an agreement between the Non-Metallic Mineral Products Manufacturing
Employees Union and or employer reads as follows:
'The Company may take discip1inary action against any employee in the event of
misconduct, inefficiency, negligence or in discipline. Such disciplinary action shaH be
confirmed in \\Titing.
The Company rna, after inquiry apply natural justice:
a.
Suspend an employee without pay up to one weeks
b.
Downgrade the employee
c.
Dismiss the employee \vithout notice on the grounds of misconduct in

consistent with the fhlfillment of the expressed or implied conditions or
service or
d.
If it considers the offense does not in itself justify dismissal, issue a written
warning to the employee .. ,
Figure 11.1 on the next page shows the check that should be initiated before an employer
takes disciplinary action against an employee for unsatisfactory performance, (Maimunaho
1996).
DON'T lET A FIRING BACKFIRE

Any discharge should be canied out fairly and legally. l11e disgruntled employee wiiJ probably bring
disrepute to the company as well as significant damage to your reputation as ti1e manager.
Several guidelines as listed below can reduce the risk :
I.
2.
.l.
-L
5.
6.
7.
8.
9.
10.
Prior to hiring. review all documents- application blanks, personnel handbook and
so on- to be sure that tl1ey say what you want them to say
Don't make promises (about job security. etc.) that you cannot or do not intend to
keep
Make sure t11at new employees receive companys handbook tlmt i1Iustrates t11e
companys rules regulations and policies
When disciplining, deal with tl1e worst offenders first
Use progressive disciplinary procedures
When a dispute arises. get tl1e employee's side of the story with witnesses present.
Before acting, check out the employee's reason for hisn1er beha"ior
Apply discipline consistently: make stu~ that similar infractions receive similar
discipline
Apply discipline fairly
Consider buying out a potential problem discharge with additional severance pay
Don"t become an obstacle to tlte discharged employee's future employment. Bad
references may lead to a costly lawsuit, and good references will be seen as an
admission that the discharge without cause
(Cane/1 M., Kuzmits F. 011d Elbert N.. Hmrw11 Resource Management.J987 Merill Publishing. USA)
HRM533
Introduction to HRM
Figure I 1./ Flow chart on unsatisfactory performance and discipline
...........
EOO'..l~
Managing[g]l
Employees
Discipline
mmEH!lll mm
Summary
Human resources are an important asset to the organization. They are hired based on their expertise
and are expected to transfer their expertise to their job in order to achieve organizational goals.
However, human being are complex due to their different needs and wants as weB as their behavior
towards the organization.

Discipline is an important approach where the management utilizes as a tool to monitor and control
the emplo~ees conduct. In disciplining the employees, management adopt several approaches to
ensure both party (the employer and the emploYee) benefited from the disciplinary action.
Management must ensure that their action does not backfire by having a clear disciplinary action
process. Most organization will impose severe action after several flexible action taken failed .
. , ; . CHECKLIST
Are you now <Jblc to:
Explain the meaning of organizational discipline.

Explain the causes of disciplinary actions
Describe supervisory resistance to discipline.
Discuss the approaches to disci pi ine administration.

Why don't you Jist the key tenns in tills chapter. ... .look out for definitions and words use to describe situations
etc.
e~_."~
u:o.;,-,-.~
HRM533
Introduction to HRM
Discussion Questions ...........in'"'"'"' "'k' "'""'"""'a"'""'...'"""'"""'"""l""'"ei,..._...................--...-,....,.....,.......

L
When do organisations need to take disciplinary action against employees?
2.
\Vhat is meant by progressive discipline'?
3.
What penalties can an employer use to punish an employee
4.
Discipline one of the most challenging areas in the Human Resource function. This
is because it a considered to be a form of training that enforces organizational rules
a.
b.
c.
Define discipline
Discuss five common disciplinary problems at your place
Describe the positive approach to discipline.
COMPENSATION
Pay system seems to be a motivating factor in attracting individuals to stay with a company. At the
same time, companies nom1ally will use pay as mechanisms to attract retain and motivate competent
employees. Thus, we can say good pay system can benefit both the employees and the companies
they work for. Modes of payment vary and there are various types of pay. In this chapter, we shall
specifically look at compensation and how companies are managing it.
Overview map
Compensation
Definition
Development
Factors influencing a company's

compensation system
of a base pay system
Components of a
compensation system
Definition of Incentive
Types of incentives
Bases for
Compensation Program
Managing a
Compensation Program
HRM533
Introduction to HRM
Learning Objectives:
Define compensation?
Explain the factors influencing a company's compensation system
Explain the components of a compensation program
Explain the bases for compensation program
Discuss the factors to consider in managing a compensat~on program

Discuss the development of a base pay system
Describe incentives and types ofincentives available
Compensation~
rammmumm
What is Compensation?
As mentioned earlier in the chapter, compensation is considered an important mechanism
to motivate, attract and retain employees. It provides benefits to both the individuals and
the organizations that employ them. So, what is compensation?
Compensation, according to Mondy (2000), is a type of reward that individuals receive in
return ofthe effort or labor. At times, it is considered as all fonns of pay or rewards that
will go to employees that arise from their employment. Some say, that compensation
provides extrinsic rewards/gains to individuals in the forms of salaries or wages and
intrinsic values such as recognition; promotion and more challenging job opportunities.
Compensation is what employee receives in exchange for their work efforts.
Companies must understand the value of linking its compensation system to its
organizational objectives. This is tenned strategic compensation planning that aims to
enhance motivation and growth while at the same time aligning its efforts with the
company's goals and objectives. Good compensation system can benefit a company is
many ways:
It can motivate employees to become better performers because it aims to
reward employees' past perfonnance
It can enable the company to remain competitive in the labor market
It can reduce employee exits by having and maintaining salary equity
among employees
It can held company align its employees' future performance with
company's goals
It helps company to attract new employees
It reduces unnecessary turnover
The diagram below will help us understand the value that a total compensation system of
a company can bring to its employees.
HRM533
Introduction to HRM
Diagram : Total Compensation System

Extrinsic rewards/values
Monetary Rewards
Hourly wages
Salary
Bonuses
Commissions
Pay Incentives
Benefits
Insurance
Retirements/paid vacations
Paid holidays/food services
Recreation
Compensation
OfEmployees
Recognition
Promotion opportunity
Working condition
Interesting work
Activity
List down other benefits of good compensation practices that you see happening in the
company you are working for.. List down also the drawbacks to inefficient compensation
practice to a company.
Compensation~
mmmmocH;
What are the :fuctors that will influence or affect the compensation system of a company?
The factors that will influence the compensation system of a company is shown it the
diagram below:
Diagrnm: Factors influencing a company's compensation program
Internal Factors
Compensation policy of a company

A job's worth
The employee's relative worth
The employer's ability to pay
External Factors
Labor market condition

Cost of living
COMPENSATION
Collective bargaining
Legal requirements
The internal and external factors shown in the diagram above have been discussed in the
earlier chapters. These factors will influence the planning of a company's compensation
program. They will also have an impact on the design ofthe compensation structure of a
company.
HRM533
Introduction to HRM
Components of the Total Compensation Program

The components of a company's total compensation program is shown in the diagram
below:
Compensation
J(
Direct Compensation
...
'A.
Indirect Compensation
Pay
Incentives
...
Benefits
Now, what is direct compensation and indirect compensation?
Direct compensation is a form of payment that a person receives or tangible rewards

provided by the employer in which a person is working for. The most common types of
direct compensation are pay and incentives. Pay is the basic compensation an employee
will receive in the form of wage or salruy. An incentive is compensation that will reward
an employee for his or her efforts, which is beyond normal performance expectations.
Incentives can be in the form of bonuses, commissions and profit sharing plans. Both
pay and incentives will be discussed further in this chapter.
Indirect compensation on the other hand is the tangible value of rewards received by
and employees without receiving the actual cash. Benefits are indirect compensation an
employee may receive and they may be in the form health insurance, vacation pay, and
retirement pensions provided by a company to its employees as a part of organizational
membership. We shall discuss this topic in greater detail in the next chapter.
The next important issue to be looked into will be the bases of employee compensation
program.
Bases for Compensation Program

A company may design its compensation program based on:
I.
Time and Productivity

A company may pay its employees based upon the time spent by the
employees on the job or based upon the amount of work produced by the
employees. The employees who are paid on an hourly basis will receive
payment in the form of wages, which are payments directly calculated on the
amount of time they worked. The employees who are paid based upon the
amount of work they produced will received payments in the form of salaries,
CompensatioJ
121
rBliJEIIDilnJ[;
which are payments received from period to period despite the number of
hours worked.
A worker may also be paid based upon his or her performance or productivity.
An example of this form of compensation is the piece--rate system, in which
an employee will be paid for each unit or production. A salesperson or a
person working for telemarketing may be paid in this manner.
2.
Task based and knowledge or skill based pay

Employees of a company may also be paid based on the tasks, duties and
responsibilities they performed. Employees whose jobs require more variety
of tasks, knowledge and skills, greater physical and mental effort as well as
demanding working conditions will be paid more. This is termed task based
or job based pay. On the other hand, employees especially the ones that are
paid hourly will also be paid for the skills and competencies they possessed.
Employees with greaier versatility will be paid more and will motivate them
to develop more skills. This type of base pay is called the skill based pay
system. The employees in this type of based pay system are normally paid at
base level of pay and will receive increases as they learn to do other jobs or
gain other knowledge, skills in which will make them become valuable to the
company they are working for.
Managing compensation is a very important function to any organization because

indirectly we understand that good management of a company's compensation program
will be able to motivate its employees. Compensation management will include areas
such as the design of salary policy, salary and wage administration, job pricing, salary
and wage reviews as well as annual increments. Now, what will be the criteria to
consider in managing compensation?
The fuctors/criteria include:
Company's ability to comply and to commit to the pay design and
structure
The structure must be able to differentiate between job grades and job
levels
The structure must be flexible to acconunodate to the changing
environments both internal and external
The structure must meet its objectives and the objectives are as listed
below.
The objectives ofthe structure are:
o The structure must be uniform and can serves as a guideline for salary
and wage as well as incentives administration
o The structure must address the issue of equity
HRM533
Introduction to HRM
o The structure may be able to be used as a guide and reference for new
recruits and existing employees
o The structure must be able to categorize employees based on groups
and levels such as managerial and supervisory levels.
If all the criteria above are taken into consideration, the next step will be to develop a
base pay system regardless whether they are based upon time, productivity, skills or
knowledge.
Development of a Base Pay System
The development of a base pay system for a company may be illustrated through the
following diagram:
Development ofBase Pay System
(Mathis and Jackson, Human Resource Management, essential peiSpectives)
Job Analysis
Pay Surveys
Job Evaluation
Pay Policies _ _.,. .,. Pay tctures

Performance,---+lndividual Pay
Appraisals
Compensation system
Implementation, Communication and
Monitoring)
A company's compensation planning must have a thorough and complete job analysis
done. Thus an accurate job analysis must be conducted. The information gathered will
then used to develop a job description and peiSon specification for each job. These two
documents are then used to conduct job evaluation and pays surveys to generate the
company's pay structure pending upon the company's pay policy and its ability. From
the pay structure, an individual pay system will be determined subjected upon the
outcomes of the individual's performance appraisal. Finally, the company's total
compensation system will be developed, implemented and monitored.
Job Evaluation
Compensation~
mLil mmnen:;
Job evaluation is a systematic process of determining the relative worth ofjobs in order
to eo;tablish which jobs should be paid more than others within an organization. This will
help the company to establish equity in its pay system. What is being done here, is a job
(by right every job) in an organization will be examined carefully and will be priced
according to their relative worth to the company by complying with these criteria:
Its relative importance to the company
The skills needed to perform the job compared with other jobs
The difficulty of the job compared with other jobs
The methods used to evaluate the jobs are:
The Ranking Method
o One ofthe simplest methods. It will place jobs in an orderly manner,
usually ranging from highest to the lowest in value to the company or
they relative worth to the company. Looking at the entire job in
question rather than its individual components does the evaluation on
the job. They are various ways how the jobs can be ranked and one of
them is by having the raters arrange cards listing the duties and
responsibilities of each job in order of the importance of the jobs. The
ranking can be done by an individual who is an expert on
compensation management as well as having a committee composed
of both management and employee representatives to conduct the
evaluation.
The Classification Method
o Systems of job evaluation in which jobs are classified and grouped
according to a series of predetermined wage grades. The jobs are
graded on these grounds:
Degree of responsibilities
Abilities or skills
Knowledge
Duties
Volume of work
Experience needed
This method again is not precise since the jobs are evaluated as a whole
and not addressing the jobs individual components. This type ofjob pay
evaluation is common in civil service either state or federal goveinments.
The Point Method
o The point method is the most widely used job evaluation technique. It
is a quantitative job evaluation procedure that determines the relative
value of a job by the total points assigned to it. Here, jobs are broken
HRM533
Introduction to HRM
down into various factors eligible to be compensated and are then

placed with weights or points. The factors considered for the points
and weights are like the physical demands required, the hazards
encountered and the wm:king environment an employee has to be in
contact while working in a particular company. These fuctors are very
important in the manufacturing type of companies while office and
clerical jobs might assign a smaller weight on those factors. An
example of the point method system is the Hay Plan developed by a
consulting firm, Hay and Associates. Many companies around the
world apply this plan. The Hay Plan uses three fuctors and has
numerically measure the fuctors required in a particular job. The
numerically measured factors are:
KnowHow
Functional expertise
Managerial skills
Human relations
Problem solving
Environment
Challenge
Accountability
Freedom to act
Impact on end results
Magnitude
The Factor Comparison

o The factor comparison method is a job evaluation system that permits
the evaluation process to be accomplished on a fuctor-by-factor basis
by developing a factor comparison scale. It is also a quantitative
method of job evaluation and is very complex. Again, factors that
make a job to be of importance are highlighted and this time these
factors are compared against the factors of key jobs within the
organization that serve as the job evaluation scale. Key jobs can be
defined as those jobs that are important for setting of salary and wages
and are widely know among companies and the labor market The key
haracteristics of key jobs are:
The jobs must be very important to employees and the
organization
The jobs vary in terms ofjob requirements
The jobs have a stable content
The jobs are .used in salary surveys for salary and wage
settings.
These key jobs are evaluated based on fuctors such as skill, mental and physical
efforts, responsibility and working conditions.
Compensation~
[fJ[I]EJ[!]IJ[l][;
Pay Surveys
Job evaluation systems conducted aims to provide a company will with internal equity,
which then serve as a basis to determine the wage or salary rates in a company. It does
not determine the wage rate. The wage rate whether it is paid on an hourly, weekly or
monthly is determined through pay surveys. Pay surveys are activities conducted by
companies to collect data on compensation rates for workers performing similar jobs in
other companies. A company may choose to conduct its own survey or may opt to use
surveys run by other companies. Once the pay survey is conducted the information
gathered are then used to develop a company's pay structure, which will eventually result
in pay grades and pay range for each job. Pay survey provide external inputs to a
company's pay structure or system.
Activity
I. Your task is to go to companies and interview an officer in charge of
compensation management on how job evaluation and pay survey is conducted in

their companies. Are there any specific plans that must be followed or referred to
in setting up their company's salary structure?
2. Search for any state or federal regulations governing companies' compensation
plan in Malaysia.
Incentives
One ofthe components of direct compensation is incentive plan developed by a company
as a mean to motivate and retain its workers. Certain companies call it variable pay
programs. Employees entitle to these plans must reach or meet a minimum level of
performance or effort set by the company they are working for. Incentives plans will
bring a company with several advantages and they are:
They help employees to focus their efforts on specific performance
targets/objectives
They foster teamwork and create cohesiveness especially when payments
to individuals are based on team efforts
They enable companies to distribute success among employees who are
responsible for producing good work
The incentives payrrients are directly linked to the achievement of work
results whereas base pay does not show this relationship since it is a fixed
cost unrelated to the work outcome.
What are the criteria for a good incentive plan?
HRM533
Introduction to HRM
Similar to wage and salary administration as mentioned earlier, successful incentive plan
must have the following criteria:
The financial incentives provided by the company must be linked to a
valued behavior
The incentive plan must be a fair one
The quality or performance standard set by the company for the incentive
plans must be challenging and achievable
The payment made must simple and understandable by the employees
Types oflncentive Plans
Basically, there are three types of incentive plans catered to different broad categories.
They are:
Individual incentive plan
Piece rate system
Standard hour plan
0
Bonuses
0
Merit pay
0
Lump sum merit pay
0
Sales incentives
0
Maturity curves
0
Executive compensation
0
0
Group Incentive Plan

Team compensation
Scanlon Plan
Gain sharing plans
Improshare
Organization Incentive Plan

Profit Sharing
Stock Options
Employee Stock Ownership Plans
(ESOPS)
Next, we shall be discussing a few of the different categories of incentive plans.

Jndividuallncentive Plan
Piecework
o One of the oldest incentive plans. Frederick W. Taylor introduced this
type of incentive plan. There are two main types of piece work
planning and they are:
Straight piece work
Incentive plan in which employees receive a certain rate
for each unit produced
Compensation~
nnummomm
Differential Piece Rate

An incentive plan where employees whose production
exceeds the standard amount of output will receive a
higher rate for all of their work than the rate paid to
those who do not exceed the standard amount
Piecework incentive plan has received many criticisms due to it not being
flexible. This system is not suitable in cases where the employees have no
control or little control over their work outcomes and when the nature of
work is too mechanized. At the same time this system does not promote
workforce cooperation, creativity or problem solving. This is because
these work culture will delay employee's time and productivity. Other
problems include. rate busters and bottlenecks problems.
Standard Hour Plan
o Standard hour plan is incentive plan that sets rates based upon the
completion of a job in predetermined standard time.
Bonus
o Bonus is incentive payment that is supplemented to the base wage.
Normally, it is given to employees at the end of year and does not
become part of base pay.
Merit Pay
o A merit pay program is a raise that links an increase in base pay to
how successfully an employee performs his or her job. The company
normally issues it to employees if they have achieved specific
performance standard set.
Group Incentive Plan
Lately, we see many companies are encouraging their employees to work in
groups and teams. Through this, the companies will be able to meet their
objectives of quality and cost reduction. Groups and teams will enable more ideas
to be generated and to work collectively. To motivate these groups of employees,
group incentive plans are developed. Group incentive plans differ from
traditional incentive plans in many ways. One difference is that goals and results
are clarified and established for teams and not for individuals. These teams are
also evaluated based on the performance target met by the group and not as
individuals. The goals then must be clearly communicated and the performance
measurement must be clearly identified. Therefore, a viable and effective
communication system must be set prior to any tasks done in groups or teams or
else the objectives will not be met. A problem of in-group incentive plans is the
emergence of social loafers (group member/s who is/are unable to put the group's
importance before his/her/their own) and free riders (individuals who do not
EDC:,:';DJ
HRM533
Introduction to HRM
really put forth their efforts towards group outcomes). The group incentive plans
are:
Team Incentive Plan
o Compensation plan in which all team members receive an incentive
bonus payment when production or service standards are met or
exceeded
Gain sharing plans
o Programs conducted under which both employees and the organization
will share financial gains according to a pre-determined formula that
reflects improved productivity and profitability
Scanlon Plan
o Scanlon plan is bonus incentive plan using employee and management
committee to gain cost reduction improvements. Scanlon plan
practices two-way communication in which several purposes are set up
to be discussed and communicated to a series or levels of committee
comprising of top management, units/departments and individuals.
Feedback on suggestions and problems in implementation by
individuals and units/department committee will be given to top
management to be reviewed and approved and implemented.
Improshare
o lmproshare is a type of gain sharing program under which bonuses are
based upon the overall productivity of the work team.
The advantages and disadvantages of team incentive plans:
Team incentives can create team culture that will support group planning
and problem solving
The contributions of individual employees are dependent of group
collaboration and cooperation
Team incentives will also reduce jealousies among employees and
complaints
Team incentives will encourage cross training
Team incentives will encournge team members to develop n.ew
competencies
The disadvantages are:
Social problems between group members
Social loafing and free riders
Misunderstanding among group members
Group-think
Compensation~
mmmrnnmm
The disadvantages are:
Social problems between group members
Social loafing and free riders
Misunderstanding among group members
Group-think
Activity
1.
.. 2.
Discuss the types of group or team incentive plans available in the Malaysian
industries or companies
List down other advantages and disadvantages ofteam incentive plans.
Organizational/Companies Incentive Plans

Organizational incentive plans encourage organizational members to participate in the
company's compensation planning (means and ways to compensate employees and
motivate them). Here, the members will be rewarded on the basis of the success of
the organization over an extended period of time. Their aim is to create ownership
culture towards the company's the employees are working for and to enhance the
sense ofbelongingness among them. The plans will foster teamwork and cooperation
among all organization members. Organizational incentive plans that are common
are:
Profit sharing plans
o Any procedure by which an employer pays or allocate a certain
amount of sum or deferred sums to all regular employees based upon
the profits gain by the company in addition to the employees' base
pay.
Stock Options
o Stock option plans will grant employees the right to purchase a
specific number of shares of the company's stock at a guaranteed price
during a specified period of time. This will enable the employees to
trade their stocks and gain profit.
Employee Stock Ov,nership plans (ESOP)
o This plan will allow companies to contribute shares of its stock to an
established trust for the purpose of stock purchases by their
employees.
HRM533
Introduction to HRM
Summary
Good compensation planning is crucial to a company's success. This is because it
provides the company with both intrinsic and extrinsic rewards to its employees, which
will eventually lead it, high effort, motivation and productivity. Companies must be
aware that a sound compensation planning and management will be a result of
organizational climates that fosters equity and must relate to employees work
performance. The performance management for compensation must also be quantifiable,
easily understood and appreciated by organizational members.
Checklist
Are you able to:
Define compensation?
Explain the factors influencing a company's compensation system
Explain the components of a compensation program
Explain the bases for compensation program
Discuss the factors to consider in managing a compensation program
Discuss the development of a base pay system
Describe incentives and types of incentives available
Key terms
Compensation
Indirect compensation
Knowledge based pays
Direct compensation
Task based pay
Skill based pay
Job evaluation
Ranking method
The classification
Method
Point method
Factor comparison
Pay surveys
Compensation~
[B[i]E][!][][g[;
Incentives
Individual incentive plan
Piece work
Straight piece work
Differential
Piece rate
Standard hour plan
Bonus
Merit pay
Team incentive
Plan
Gain sharing
Scanlon Plan
lmproshare
Profit sharing
Plan
Stock Options
Employee Stock Ownership plans (ESOP)
Discussion questions
].
What are the reasons behind the different payment methods for employees?
Discuss the factors that will influence a company when setting its
compensation system.
3.
Explain the implications of a bad compensation management to a company?
Self test questions

Answer T (True) or F (False)
I.
2.
3.
4.
5.
Base wages a.tJd salmies are the hourly, weekly or monthly pay plus benefits
that employees receive in exchange of their work.
The basic purpose ofthe wage and salary system is to establish a pay system
that is fair in relation to the performance of all employees and the duties and
responsibilities oftheir jobs.
Wage and salary systems establish pay ranges for job based on the relative
worth ofthe job to the organization.
When establishing pay ranges for jobs in an organization, internal equity is
extremely important but external equity is oflittle concern.
Determining the worth of a job should begin with the consideration of the
requirements of the job and the value of these duties to the organization.
HRM533
Introduction to HRM
6.
7.
8.
9.
10.
The oldest and the simplest method of determining the relative worth of a job
is the factor comparison method.
Incentive pay plans attempt to strengthen the performance reward relationship
and thus motivates the affected employees.
Incentive plans usually function in addition to not in place of the base
wage/salary structure.
The most common type of incentive award for managerial employees is the
granting of stock options.
Research indicates that suggestion systems are basically a waste of time and
money for employers.
Answers
].
2.
3.
4.
5.
6.
7.
8.
9.
10.
f
t
t
f
t
f
t
t
f
f
BENEFITS
What motivates people other than their hourly wages and salary'' What comprise of good
compensation system? The answers to both will be to offer something extra than just money that is
benefit. People nowadays would want something extra in their working life than just the wages and
salaries they are getting. This chapter will focus specifically on the third component of the
compensation system. which is benefit and will address topics on:
The definition of benefit
1l1e importance of a benefit program to the company and to its employees
The relationship between benefits and motivation
Factors to consider when developing benefit program
The types of benefits offered by companies
Benefits
r- Definition
~Importance
I
Relationship between
Benefits and motivation
Factors to consider
when developing benefit program
Types of benefits
offered by companies
HRM533
Introduction to HRM
Table of Contents
BENEFITS
Leaming Objectives
227
228
13.1
What is benefit?
229
13.2
The Relationship between Benefit and MotiYation
230
13.3
Dcnloping Benefit Prognm
230
IJA
TytlCS ofBenctits
231
Summ:\ry
232
Key tums For ReYicw
233
Self-test (Juestions
233
233
Learning Objectives
AI the end of tl1is chapter. you should be able to:
Upon completion of this chapter, you \viii be able to:
I.
Define benefit
2.
List down the importance of benefits
3.
Explain the relationships between benefits and motivation
4.
Discuss the factors to consider \Vhen developing benefit program
5.
Discuss the types of benefits offered by a company
E_bc-'~
.. ,;.-.~
Benefits[!1]
[3[1]E][i][J[ll[;
13.1 What is benefit?
Today, employees want something more than just hourly wages and salary. They want something
more than can motivate them and make them more committed to their work. Because of this,
companies have to provide or put aside additional contributions to their employees that will to enrich
their lives. This extra contribution is called benefit. Benefit, as we have mentioned earlier is a
component of a company ~s compensation program, which falls under indirect compensation.
Examples of companies benefits are pensions. health insurance. time off with pay and others.
Benefits are offered to attract and to retain good workers. Benefits are offered to employees
regardless of their performance levels. The absence of benefits can lead to job dissatisfaction and
increased absenteeism. Other contributions that benefits can bring to the organization are:
Help
Help
Help
Help
Help
attract employees
retain employees
elevate the organization s image
increase job satisfaction
increase job performance
For employees, benefits can:

Help motivate them
Help to enrich their working lives
Help them to be committed and Joyal to the company
Help them to concentrate on their job without worrying about their problems like
medical expenses and others
Help them to develop themselves through education benefits
ACTIVITY
List dovm other importance of benefits to:

IP
IP
Company
Individuals
Another important feature of benefit is, they are not taxed as income to employees.
The next section will discuss the implication .of having a good benefit program in motivating
employees.
HRM533
Introduction to HRM
13.2 The Relationship between Benefit and Motivation

The diagram below \\'ill help explain why benefits are important especially in motivation
organizational members.
Figure 13.1 Benefits and their link to motivation
,l.
Individual
Effort
_____..Organizational
Individual
Performance
Goals
Individual goals
~<
Extrinsic rewards
... i-
Intrinsic rewards
J/
...
Benefits issued
Benefits given to employees do not increase an individual's financial position but they help in
making the employees job seemed more attractive and more meaningful (intrinsic rewards). At
the same time the tangible benefit given will also help employees to experience extrinsic rewards.
13.3 Developing Benefit Program

Besides considering the objectives of a benefit program, careful considerations must also be given in
developing a sound benefit progrnm. A benefit program is introduced by a company to its employees
must follow the criteria below:
Flexible
o
The benefit program must be flexible to accommodate to the ever-changing

environment. At the same time, flexibility will allow the company to maintain a
favorable competitive position or image with other related companies. Most
importantly, flexibility will also accommodate to employees~ needs. The
advantages of having a flexible benefit plans are:
They enable the company to satisfy or match with individuals m;:eds
They will enable the company to accommodate to changing and
diversified workforce
They enable the company and the individuals to maximize psychological
and the intrinsic values of benefits
They enable companies to gain competitive advantage in recruiting and
retention of employees
Benefit plans also come with extra costs to companies. But the advantages of
having a good benefit plan will sometimes out weigh the costs associated.
Benefits~
[8[I]B][!]IJ[!J[;
Employees' Inputs
o Before a company introduces a benefit plan, the need for it should first be
detennined by consulting with its employees. Here, sunte)'S can be used to
obtain the employees inputs. Their inputs are important to ensure that the
company is developing a plan that will satisfy the employees wants and needs
thus will indirectly benefit the company.
Communication of benefits offered
o Employers must carefully communicate information especiaiJy difficult or
complicated benefits plans like insurance or pension plan to their employees.
This will make sure that misunderstanding will not occur. The plans can be
communicated through cornpanys in-house publications like newsletter and
employees handbooks.
Benefit plans can also be communicated during
orientation programs and training sessions.
13.4 Types of Benefits

There are two types of benefit plans offered by a company. They are:
Mandated Benefit or legally required benefit
Non-mandated Benefit or voluntary benefits issued by the employer
Mandated benefit
Mandated benefits are the benefits 'vhich emp!0)1ers in Malaysia and the rest of the world
must provide to their employees. The law requires them to be paid to the employees.
Non-mandated Benefits or Voluntary Benefits

Voluntarv benefits are benefits that are provided by the employers on a voluntarily basis. A
company may differ in its voluntary benefits with other companies. Lav~.' does not mandate
them_
The diagram that follows shows to us the types and the kinds of benefit plans offered by companies.
The ones that are highlighted or shadowed are the ones mandatory.
HRM533
Introduction to HRM
Fig. 13.2
SECURITY
HEALTH
CARE
RETIREMENT
FINANCIAL
SOCIAL
/INSURANCE
AND
RECREATIONAL
!OTHERS
Wal-ker's-
Medical
cOijlP.~~SaFon
Benefit
... .
'
'
EPFis'ocso
Life insurance
Tennis court
in
TIME OFF
~~~~~it
.-.
M-alaysia
. .:,
'-:.
Dental
Early retirement
Legal insurance
Bowling Leagues
Supplemental
unemployment
.insurance
Vision care
Disability retirement
benefits
Disability
insurance
Service Awards
Family issues
Prescription
Health care retirees
Stock plans
Cafeteria
Social Security
(retirement,
old
age,
survivor's
disability
and
insurance in US)
- child care, elder

care
Lunch
and
rest breaks
Holidays and
vacations
drug
Psychiatric
counseling
EJ9dicii1. ,and
:J'Uri~!~~Yes.
Financial
counseling
Recreation
programs
Funeral
The above benefits are the benefits offered in Malaysia and in the United States. The types of
voluntary benefits offered will depend on the ability of the company in terms of their financial
strength.
ACTIVITY
You are required to seek for other types of benefits offered by companies especially
the ones in Malaysia.
In summary, benefit administration is very important to retain workers. Benefits can benefit both
organization and its employees by fulfilling both intrinsic and extrinsic values.
Summary
Companies use both extrinsic and intrinsic rewards to compensate employees for their time and effort.
Benefits beside pay systems are designed to attract, retain and IY!Otivate employees while coinplying
with the state and federal laws. Law requires certain benefits to be offered and some are voluntarily.
Employee benefits are not just a fringe cost to employers, they represent a substantial percentage of
the total payroll. Benefits are usually awarded equally to all workers or on a seniority basis. To
develop a benefit program in a company, flexibility, emplpyees inputs and communication of the
benefits offered are to be considered.
EDC
::J:!D
and
bereavement
Benefits[!]
IB lil EH!l ll m[;

.;/!CHECKLIST
Are you able to:
0
0
0
0
0
Define benefit
List down the importance of benefits
Explain the relationships between benefits and motivation
Discuss the factors to consider when developing benefit program
Discuss the types of benefits offered by a company
Key terms For Review

Benefit
Mandatory Benefit
Voluntary Benefit
Self-test questions
lndicale T (True) or F (False)
I_
2.
3.
4.
5.
6.
7.
Employee benefits are those rewards given to employees retiring from the organization
All emplovee benefits are legally required benefits.
Employee benefits can be reserved for company executives only.
Flexible plans are attractive because employees are given some control over the
distribution of benefits.
Indirect financial payments given to employees are known as compensation.
Employee benefits are available to specific employees and do not include health and life
insurance, vacations and child care facilities.
An advantages of using flexible b.enefit plans is meeting changing needs.
Discussion Questions ..r ...,..,;~...,.,,.,.,.,.""''""-"'"'""'"'""'"'"""'''"'"'"'"''"'""'"'!3!'"*'""'""'"';.,,""'""'~"""'"""'"'

1.
How can employer benefits attract~ retain and motivate employees?
2.
What factors are important in developing a benefit program
3.
If you were establishing your 0\\TI business~ which benefits would you be legally required
to pay and which would you choose to offer?
HRM533
Introduction to HRM
Answers
I.
2.
3.
4.
5.
6.
1.
F
F
F
F
F
F
F
EMPLOYEE SAFETY AND HEALTH

Health and safety programs reflect the organisations concern for its people/employees. Poor
Occupational health and safety performance is equivalent to poor human resource management.
Accidents and illnesses will result in physical and mental suffering for employees and they are a
major cause of costs for employers and the community.
So this chapter will examine the workplace safety and health. An unsafe work environment can affect
an employee s ability and motivation to perform.
Employee Safety and Health
SAFETY
HEALTH
What is safety?
What is health?
What causes accident?
Common problems
r
Occupational safety
& health act
Role of Management commitment

to safety
How to prevent
accidents?
I
I
I
How to remedy
I
I
HRM533
Introduction to HRM
Table of Contents
EMPLOYEE SAFETY AND HEALTH

Learning Objccti\'es
235
236
IM
Wh:r are Emplo~ce Safe(\' and Health Important ?
237
H. I
What Is Safety?
237
H.2
What Causes Accident?
238
H.3
Occupational Safety & Health Act 1994
238
Role of Management in Promoting Sotfct.Y
239
How to PrCYcnt Accident
240
u.s
14.6
Health
WHATJSHEALTII
COMMON PROBLEMS
HOW TO REMEDY
241
241
241
243
Summary
Ke~
Terms for ReYicw
245
Self-test
245
245
ATTACHMENT
246
Learning Objectives
I. Define Safety and Health
2.
Explain the purpose of OSHA
3. Describe the focus of safety programs in business operations

4. Explain in detail how to prevent accidents at work
5. Discuss major health problems at work and how to remedy them.
Safety andflhl
Health~
mmmrnumm
Before we proceed to discuss issues related to safety and health at the workplace, let us spend a few
minutes to reiterate the importance of safety and health.
14.0 Why are Employee Safety and Health Important?

The diagram below distinguishes the importance of safety and health from different aspects i.e. the
moral, legal and economic aspects. You might also have other factors in mind.
MORAl
Managers undertake accident prevention on purely humane grounds.

The objective is to minimize the pain & suffering of the injured worker & his family
as the result of an accident
lEGAl
ECONOMIC
Today, there are federal, state &

municipal laws covering occupational
safety & health & penalties for noncompliance have become quite
severe.
Organisations are subject to fines &

supervisors can received jail
sentences if sound responsible for
fatal accidents
The cost to the company of small

accident can be quite high.
Worker's compensation
insurance simply compensates the
injured worker.
Among these are payments for
settlements of injury or death claims,
legal fees for defence against claims,
cost of rescue operation, increased
insurance costs &
others
rig. 1-1.1
14. 1 What Is Safety?

Safety is
:-
To protect organisation members from illness & ph:'sical danger in the workplace. The
process also includes the protection of the surrounding community from polJution or toxic
substance.
To design the job place to fit the real people who must work there .
To protect the well being of employees is to protect the organisations most valuable resource
and to avoid the staggering costs and negative public image associated with safety neglect.
--~~
~-:r
lfvou wen: a consultant/manager. how wouid you develop a strategy for increasing your
employees motivatiOn to work more safely?
__
::
HRM533
Introduction to HRM
14.2 What Causes Accident?

The causes of accidents at the workplace can be divided into three categories i.e.
Employee error
Equipment insufficiency
Procedure Insufficiency
For each category, there are numerous ways in which accidents can happen. Take a look at the
diagram below.
8'ioployee Error
Equil'!'lenl!nsufficiency
Distractions by others
Neuromuscular
malfunctions
Inappropriate working
positions
Knowingly using
defective equipment
Use of inappropriate
equipment
Safety devices being
removed or inappropriate
The Jack of such things as
engineering controls
Respiratory protection
Protective clothing
Procedure tnsldflcleno;y
Failure and procedure for eliciting
warning of hazard
In appropriate procedure for
handling materials
Failure to look out or tag out,
Lack of written work procedures
Fig. 1-1.2 Causes of.-J.ccidents
14.3 Occupational Safety & Health Act 1994

THE OCCUPATIONAL SAFETY & HEALTH ACT (OSHA)
was gazetted on the Febmary 24''. 1994. The OSHA is a
comprehensive legislation that replaced Factories and Machinery
Act 1967, which e~"tend the functions and roles of safety and
health management at the place of work.
The act aims to ensure safe working conditions for every \vorker
by:
1. Setting & enforcing \YOrk
2. Promoting employer-sponsored educational programs
3. Requiring employers to keep records regarding job related
safety & health matters
.
OCCUPATIONAL SAFETY & HEALTH
ADMINISTRATION
(OSHA)
The government agency responsible for
developing& enforcing workplace
health & safety standards.

REVIEW COM MIS ION
hearing appeals from employers who
wish to contest OSHA rulings.
NATIONAL INSTITUTE FOR

conducting health & safety research to
Suggest new OSHA Standards & to
update previous ones.
,,
"
Safety andfl"hl
Health~
mmEHil nmr;
The safety of the employees and the workplaces are the responsibility of the employer. The health of
the employees are the joint responsibility of both employer and employee. A safe and healthy work
environment \:o.'iH lead organisations to achieve higher productivity and industrial hannony.
Organisation with safe and healthy environment shows higher job satisfaction and retained higher
profit by reducing medical expenses.
14.4 Role of Management in Promoting Safety

Jn order to promote safety at the workplace. the management must place emphasis on the tasks listed
belmv.
Emphasise workplace safety during orientation and training. Workers should
be given constant reminders of its importance throughout their employment.
Teach workers how to do their jobs safely by providing employees with
information about the safet)' procedures to follow. warnings to heed &
precautions to take.
Managers investigate accidents in order to prevent future accidents. Ensure
legal compliance, which mandates that employers be flexible when assigning
work to employees who have either repetitive motion or lower back
disorders. Managers can alleviate \Vorker stress. Employee stress can be
caused by a \vide variety of factors. which are under the manager s control.
There are some specific actions managers can take:
Try to match job assignments to employee skills

Avoid placing unrealistic deadlines on employees
Encourage employees to voice their concerns
Provide appropriate training and orientation .
Ensure the confidentiality of the information they possess concerning

employee disabilities. Personal information (e.g. AIDS, substance abuse)
may be conveyed only to those people with a 'need to know"
HRM533
Introduction to HRM
14.5 How to Prevent Accident

In order to prevent accidents, a few measures can be taken.
1. Safety Training and Communication
Starting with orientation to the job & over the course of a worke(s employment
Reinforced through various communications with employees a method like;
: Posters
: Meeting
: Fire drills
: Articles in employee publications
: Booklets
.;. Slogan
Both supervisors and employees
: Pass proficiency test before allowed to use the hazardous equipment
.;. Learn how to perform each of their tasks as safely as possible
2. Protective Equipment
3. Emergency Plan
Some of the most frequently used personal

safety devices are earplugs, hard hats, safely
goggles/glasses, safety boots, gloves, face
shields, helmets, safety belts, respiratory
equipment & protective clothing. The worker &
the group have a great deal of control over the
extent to which protective equipment is used
properly.
Organisations must be prepared to provide

competent first aid at a moment's
notice/even to evaluate employees &
nearby residents from the site.
Such contingency preparation ilecessitates
training & emergency procedures must also
be co-ordinated with the outside community
through the police, fire fighters & hospitals.
Well, we have finished the first part of the

chapter.... The second part will be on health
Take a look at the overoiew map below to
refresh your memory of the whole chapter.
Employee Safety and Health
SAFElY
VVhat is safety?
VVhat causes accident?
Occupational safety
& health act
Role of Management
commitment to safety
How to prevent
accidents?
Safety andflhl
Health~
Wlil Elm ll tiH~
14.6 Health
Employee health problems are varied and inevitable. They can range from minor illnesses such as
colds to serious illnesses related to the jobs performed. Some employees have emotional problems,
others have alcohol or drug problems. Some problems are chronic. But all may affect organisational
operations and individual employee productivity.
WHAT IS HEALTH
Health is defined as
The general state ofphysical, mental and emotional well-being of employees

in tire workplace
Organisations began shouldering some of responsibility even before the modem personnel
department carne into e:'{istence. Natura11y these organisations wanted to hold dO\:vn the costs
of insurance & reduce the number of claims filed by employees so they depended on safety
specialists to help establish & maintain safer working conditions in their plants.
llms. occupational health is a necessity and fundamental aspect of any efficient organisation.
As quoted by R. S. Schuler, 'if organisations can reduce the rates and severity of
occupational accidents, diseases and stress and improve the quality of the working life of
their employees. they will be more effective." The presence of this quality working life result
m:
more productivity due to fewer work day's lost to absenteeism
more efficiency from \YOrkers \Vho are involved with their jobs
reduced medical and compensation rates and direct payment because of fewer
claims being filed
lower rates of turnover and absenteeism due in part to increased '''orker
satisfaction and involvement
greater flexibility and adaptability.
COMMON PROBLEMS
Many occupations require employ:ees to adapt to work conditions that place pressure on them.
These pressures can create stresses that can affect the health of employees their productivity
and satisfactory. Figure 14 indicates the elements that can cause stress and its outcomes.
HRM533
Introduction to HRM
Fig. /./.3 Causes o[Srress
(the interaction between an individual

and the environment characterized
STRESS
by emotional strain affecting a
' - - - - - - - '1 person's physical and mental
conditions)
.-----.
INTERVENING VARIABLES
Individual characteristics of person

Environment fit work-home interface
Stressful job
Overload, pressure, responsibilities
High demand, low control
Relation with boss, co-workers, clients
Lack of fairness
Work home conflict
REACTIONS TO STRESSORS (things that can cause stress)

EMOTIONAL
Anxiety
Depression
Concentration loss
Withdrawal
PHYSIOLOGICAL
Burnout
g~~:~mines
Cholestrol
Blood pressure
ACCIDENTS
l
AD:VERSE
HEALTH
Performance decrements
Drug and alcohol problems
Emotional disorders
t
.
"
ABSENTEEISM.
Outcomes
Cardiovascular disease
Infections disease
Somatic symptoms
Safety and'lhl
Health~
HOW TO REMEDY
mmmmDmm
The stresses experienced by an employee can be overcome through

i)
ii)
Social support
Stress management program
Social Support
'r
Social support from superiors, co-workers, family and friends can serve to hold stress
level down or to reduce them by providing a feeling that someone is there to help and
that one is not all alone
:;.
Emotional support is part of the process- someone to rely on, to encourage and to
listen
)>
Others can provide the knowledge to cope with stress and the understanding to deal
with uncertainty.
Stress Management Programs

Many organisations have developed management programs to teach employees hmY
to determine negative effects of job-related stress. These programs involved relation
techniques, coping skills, listening skills, methods of dealing with difficult people,
time management and assertiveness. The purpose of this program is to
reduce/eliminate the tension that goes with job-stress situations. They also help
employees achieve greater control of their lives. Other techniques \Vill be like
clarifying the employee s work role~ redesigning and enriching jobs, correcting
physical factors in the environment etc.
Several other methods used for stress management include wellness programs~
biofeed-back, meditation. career life planning, stress management training and job
burnout seminars.
ACTIVITY
Help Me, please'
At times, workers have personal problems that negatively influence their work and
that may make the workplace unsafe. When this occurs, both managers and human
resource professionals may be required to become involved to maintain a safe and
healthy work environment Dealing with one sown personal problems is often
difficult and assisting employers in dealing with their personal problems can be even
more taxing on managers. However, since a problem employee can have a negative
effect on workplace productivity, such a situation must be addressed by individuals
involved in human resource management This exercise should provide a better
understanding ofhow to handle a most difficult issue- that of resolving employee
problems.
Outline the common personal problems normally occurs aDd how to deal with it.
HRM533
Introduction to HRM
Summary
I.
Safety and Health are vital in reducing the staggering number of deaths & accidents occurring
at work
2.
The pUTJlOSe of OSHA is to ensure every working person a safe and healthful workplace.
OSHA standards are very complete and detailed and are enforced through a system of
workplace in.spections. OSHA inspectors can issue citations and recommend penalties to heir
area managers.
3.
Management play a key role in monitoring \Vorkers for safety. Workers in turn have a
responsibility to act safely. A commitment to safety on the part of top management that is
filtered down through the management rank is an important aspect at any safety program
4.
The three basic causes at accidents: chance occurrences~ unsafe conditions and unsafe acts on
the part of employees. Furthermore, three other work-related factors (the job itself. the work
schedule, psychological climate) also contribute to accidents.
5.
Reducing unsafe conditions and acts are the several approaches in preventing accidents.
6.
Safety involves protecting employees from injuries, resulting from work related accidents .
Health refers to the emplovees freedom !Tom physical or emotional illness
7.
Stress is the body s non specific reaction to any demand made on it sources at stress include
role ambiguity, role conflict financial problems, workload variance, managerial work,
working conditions. corporate culture, the family, financial problems and living conditions.
Also, mediation is a stress-reduction technique in \Vhich a person, comfortably seated,
silently repeats a secret work or phrase (provided by a trained instructor).
,~.
L . .......!
CHECKLIST
0
0
0
0
0
Define safety and health

Describe the puf]Jose of the occupational safety and health Act
Understand the puf]Joses of health and wellness programs
Explain the means of coping with stress
IdentifY the role of management in reducing accidents at working place.
Safety
and~
Health~
f]UJE][i][)nl[;
Burnout
Moral
Legal
Safety
Health
OSHA
Stress
Meditation
Economic
Emotional
Accidents
Social Support
Adverse Health
Self-test
.-lnslt'er eiTher True False.
I.
OSHA has begun to concentrate its resources upon low risk industries such as
construction
2.
There is increasing evidence that undue stress is related to diseases which are the
leading causes of death
3.
The most stressful life event is the death of a spouse.
I.
Highlight the importance of a safe and healthy work environment
2.
In your opinion, should managers be held criminally liable for health and safety violations?
3.
Explain the provisions of OSHA
I.F
2. T
3. T
HRM533
Introduction to HRM
ATTACHMENT
GENERAL DUTIES AND RESPONSIBILITIES
The Employer
An employer owes a duty of ccue to the employees. ll1ere are some factors that should be considered by the
employer. such as:
The persona] nature of the duty mved by the employer to his employee. and he does not escape that duty by
showing that he has delegated tl1e perfonnance to son competent person
Magnitude or risk: the greater the risk the more care sllould be taken
Cost nnd practicability of overcoming risk. In every case of a foreseeable risk. it is n matter of balancing
the risk against the measures necessary 10 eliminate it.
Therefore. an employer is responsible as far as practicable to:

a)
Setting out a written safety an health policy that declares the commitment and support of the top
management
b)
ProYide and maintain plant and system of work
c)
Make arrangements for the safe use. operation. handling,. storage and transportation of substances and
plant
d)
ProYide information. instmction. training and supervision
e)
Pro\'ide and maintain plnce of work nnd means ofnccess to and egress from any place of work
f)
Pro\'idc and maintain working environment that is safe and without health risk and with adequate
welfare facilities.
Trade Union
Trade unions <Uld employee associations ha,e a responsibility to
Identify safety and health problems witl1in the enterprises of their members. or in enterprises within the
smne industl)
Communicate these problems to their members and other enterprises within the same industry
Assist in the identification of countenneasures and to communicate such information to members and other
enterprises within the same industl).
Industry Associations
Industry associations ha\'e a responsibility to
Identify safety and healtl1 problems within the enterprises of their members, or in enterprises within the
same industry
Communicate t11ese problems to tl1eir members and other enterprises within the same industry
Assist in t11e identification of countenneasmes and to communicate such information to members and other
enterprises within the same industry.
LABOUR RELATIONS
AND COLLECTIVE BARGAINING
In any organisation, there are two parties : the employer and the employee. The work environment is
very important to most people where innumerable questions may arise out ofthe employee and
employer relationship. Therefore. industrial relations refers to the studv o[relationship between the
emplovee (worker) and their emp!over (rhe owner) within the work environment.
Industrial relation only exists when workers form association known as "Trade Union (TU). This
chapter, therefore, ''viii emphasis issues related to industrial relations by studying the trade union
activities, rights and functions. In Malaysia what a union can do or cannot do is prescribed by the
Trade Union Act (1959), the Industrial Relation Act (1967) and the Employment Act (1955). We
would also look at what roles the Ministry of Human Resources play in overseeing the good
relationship between the t\vo parties .
Before you proceed, take a look at the overview map below.
ILabour Relations and Collective Bargaining I .

1
1
Labour Relations
!----+-j
Trade Union
I
I~------~1
~~------~
1- Definttion
I-' Definttion
1- Importance
'-Government Involvement
~Trade
Collective Bargaining!1--'--li
Collective Agreement
_j
Grievances
_j
Trade Disputes
~~======~
. lc.......,------'
Union in Malaysia
Settlement of
trade disputes
~Types of Industrial Actions

-By Employees
-By Employer
HRM533
Introduction to HRM
Table of Contents
LABOUR RELATIONS AND COLLECTIVE BARGAINING
247
Learning Objectives
248
15.1
Definition
249
15.2
Is L<lbour Relations Important?
249
15.3
Gol'Crnmcnt Involl'Cment in Labour Relations
250
15.-t
What is
250
15.5
Trade Union in
<l
Trade Union?
Mala~sia
251
Registration for Trade Union
251
252.
253
15.6
Collective Bargaining
What is Collective Bargaining (CB)
Collective Bargaining Procedures
Collective Bargaining in Public Sector
254
254
255
255
15.7
CollectiYe Agreements (CA)
256
15.8
GrieYances
Dos and Donts for hand1ing grievance
257
257
15.9
Trade Disputes
259
15.10
Settlement of Trade Disputes
259
15.11 Types of Industrial Actions

Industrial action by employees
Industrial Action by Employers
260
Definition of Trade Union
Membership
Summary
260
261
261

262
262
Learning Objectives
1.
2.
3.
4.
5.
6.
E..,.plain the meaning of labour relations and describe its importance.

Explain the role of government in hannonizing the employees and employers relation.
Explain and describe the role of trade union as enacted by the legal provision.
Describe and discuss the process of collective bargaining.
Explain and discuss the procedures ofhandling grievances.
Explain the various approaches to settle trade dispute according to the legal provision.
Labour Relations
and Collective
lsi
Bargaining
mmmmLua m
15.1 Definition
Labour relation is also referred as employee or industrial relation. There is no exact definition of
labour relation. However in general it refers to the relationship between workers and their
organisation. managers and their organisation and government agencies concerned lf'ith !he
'f1orkplace and employmenT issues. Good labour relations involves providing equitable and
consistent treatment to all employee for achieving individual, groups as well as organisational
objectives.
Labour relations stresses on the following areas :
\Vork environment
T em1s and conditions of work
The Employee and Employers right
The way on how we make mles and terms in the organisation
ACTIVITY
Think of five events that your organisation does which are included in labour
relations as defined.
15.2 Is Labour Relations Important?

-
Look through today s newspaper. How many of the stories in it are concerned with
labour relations?
Rarely, you would find a day when not a single news in the newspaper or in the television news is
concerned with labour relation. Mostly, there are several stories which are concerned with labour
relations. Furthermore you could easily get books \Vritten about labour relations. Therefore, this
indicates that labour relations is seen as so important.
For major reasons on why labour relations are so important:
i)
ii)
iii)
iv)
\:York is such a central activity. for most adult

Everyone is affected by labour relations
Bad labour relations can damage our economy
Good labour relations give potential and far- reaching benefits (Christ Brewster, 1989)
HRM533
Introduction to HRM
15.3 Government Involvement in Labour Relations

In Malaysia the government plays major role in the labour relation/industrial relations system. The
government acts as legislator. administrator as well as participant (the employer).
At Parliament, as the legislator the government revises and passes employment act that has direct
impact to the 1ndustrial Relation system. Revision of employment laws involves discussion between
employees and employers representative together with the government representative known as the
National Labour Advisory Council (NLAC). The NLAC is chaired by the Minister of Human
Resources.
The Ministry of Human Resources is a federal agency with the main objective of producing a
workforce th.:'lt is capable, skilled productive, disciplined and with positive values. lts functions are:
To promote and maintain industrial ham1ony:

To protect and promote workers welfare in line with national social policy:
To coordinate and implement human resource development programmes, particularly skill
training.
Several departments are set up to ensure the success of Ministry of Human Resources.
departments are :
The
Labour Department Peninsular Malaysia

Labour Department of Sa bah
Labour Department of Sarawak
Industrial Relation Department
Department of Occupational Safety and Health
Human Resource Development Council
Man Power Department
Social Security Organisation
Department of Trade Union
Industrial Court
ACTIVITY
What is the role of the Ministry of Industrial Relation m the Industrial Relation
Systems?
Explore MITI's web page to find out what the ministry does ...
15.4 What is a Trade Union?

A union is an organisation that represents employees interest to management on issues Slich as wage
negotiation. disciplinary mles. work hard and working conditions. A trade union therefore in general
refers to an organisation which consists \vholly or mainly of workers of one or more descriptions.
Labour Relations
and Collective
Bargaining
Ilsi
mmmmumm
It is an organisation whose principal purposes include the regulation of relations between workers of
that. description or those descriptions and emplqyers or employers associations. The definition
highlights a number of elements which constitUte "trade union-ness. These are :
There is an organisation- not just a group of individuals.

The organisation exists to represent its members to employers, the press, the government
and the public.
3. Its primary interests are in the terms conditions of employment of its members.
4. The organisation is not controlled by the employers
5. The organisation is prepared to bargain collectively on behalf of its members with the
employers.
6. The definition gives some insight on why employees organized join unions
I.
2.
ACTIVITY
/\;1!
fl
I.
Why do so many people join trade unions? If you are a union member try to
remember why you joined and write a sentence that explains it. If not, try to
imagine a situation in which you might join a trade union.
2.
Do you think that employers are in favour for their employee to join trade
unions? Why and why not?
15.5 Trade Union in Malaysia

This section will discuss briefly issues related to Tmde Unions in Malaysia, specifically on collective
bargaining and internal labour relations.
DEFINITION OF TRADE UNION
Section 2 of the TU l\ct ( 1959) defines a tmde union as any association or combination of
workmen or employers, being workmen or employers whose place of work is in the states of
Malaya (or Sabah or Sarawak) or employers employing workmen in the states of Malaya (or
Sabah or Sarawak) :
a)
Within any particular trade, occupation or industry or within any similar trades,
occupation or industries; and
b) Whether temporary or permanent: and
c) Having among its objects one or more of the following objects:
i)
the regulator of relations between workmen and employers, or
between employers and employers
ii)
the representation of either workmen or employers in trade disputes
iii)
the conduct of or dealing with trade disputes and matters related
thereto
iv)
the promotion, organisation or financing of strikes or lock~outs in
any trade or industry or the provision of pay or other benefits for its
members during a strike or lock-out.
HRM533
Introduction to HRM
Trade unions can either be associations of workmen or employers. However in Malaysia,

generally employer~s union is referred to :assOciations'.
Based from the definitions~ several implications are noted:
ErnployerS union must be separate from an employees union. A union cannot have
membership of both employees and employers.
Tite membership of a trade union must be confined to either peninsular Malaysia or
Sabah or Sarawak.
Trade unions of a general nature is not permitted. Members must be within a
particular trade occupation or industries. Two provisions ensures that unions are
relatively homogeneous in their membership. Section 2 (2) ofTU Act ( 1959)
dictates that decision as to whether a trade, occupation or industry is ;similar rests
with the Registrar of Trade Unions.
MEMBERSHIP
A person who is above the age of sixteen years and engaged in trade, occupation or industry
of the union to which he seeks memberships, is eligible to apply unless the rule of the union
specify otherwise.
A member of a trade union who is below 18 years of age is not permitted to vote on the
following matters :
a)
b)
c)
d)
Strikes and lock-outs and all related matters

The imposition of levy
Dissolution of the trade union or of the federation with which it is connected.
Amendment of the rules of the trade union
Workers in Malaysia have the right to form and join trade unions as stated in the Industrial
Relation Act (Section 5) :
i)
ii)
iii)
iv)
No employer shall prevent a worker from joining a union by putting a condition in as

contract or employment.
No employer shell refuse to employ a worker on the grounds he is a trade union
member or officer
No employer shall discriminate against a worker on the ground he is a trade union
member or officer and
No worker shall be threatened with dismissal or dismissed if he proposes to join a

trade union or if he part~cipates in union activities.
However, section 7, Industrial Relation Act also specify that workers also have the right not
to join a trade union.
Public sector workers can join unions which are only formed by workers in the same
occupation, department or ministry. However, employees in the police, Prison Service and
Armed Forces and these in confidential or security work are not allowed to join unions at all.
labour Relations
and Collective
lsi
Bargaining
rBUJEHDDmli
Employees of statutory authorities are permitted to join or be members any trade union, but
the union concerned must confine its membership exclusively to employees of the particular
authorities.
Employees who are in the professional and managerial group in the public sector ~lso cannot
join a trade union unless they get the permission from the Chief Secretary to the Government.
ACTIVITY
I.
2.
What are the main implications from the definition of trade union as
indicated in section 2 of the TU Act ( 1959)
Who can join and \VllO cannot join a union?
REGISTRATION FOR TRADE UNION
Every trade union is required to apply for registration within a period of one month from the
date of its establishment. This period may be extended at the discretion of the Registrar of
Trade Unions, but it must not exceed six months in the aggregate.
Failure to apply for registration in due time or ifthe registration is refused with drawn or
cancelled, section provides as follows:
a)
b)
c)
d)
The trade union is considered to be an unlmvful association.

The trade union its members are forbidden to participate, promote, organize or
finance any strike or lock out.
The trade union has to be dissolved and all of its funds disposed of in accordance
with the i-ules.
No person is~allowed to get involve in the trade union unless it is with the purpose of
dissolution, disposal of its funds or to appeal against the refhsed to register, withdraw
or cancel.
For registration, at least seven members of the union must signed the prescribed form. This
prescribed form requires details on.
Name, occupationS and addresses of those members making the application.

Name of the trade union, an~ addresses of its head quarters.
Title, names, ages and occupations of the officers of
trade union.
A printed copy of the rules of the trade union.
Other information as required by the Registrar of the Trade Unions.
the
The Registrar can then use his/her discretion to refuse registration of the trade union
accordance to the provision of the Industrial Relation Act (I 959)
Registration of a union gives it the legal right to exist but it does n6t mean it can perform
effectively and efficiently. Therefore recognition by the individual employer is important
\\"here the union is accepted as the rightful representative of his workers.
HRM533
Introduction to HRM
If no recognition is granted the union cannot commence collective bargaining as well as to

enhance harmonious industrial relations.
In order that recognition be given the procedure is :

l.
2.
The trade uillon writes to the employer claimi_ng recognition

The employer must reply within 21 days after receiving the claims
3.
The employer can either decide

a. to give recognition
b.
c.
to refuse recognition, with reasons given

request the Director General of Industrial Relations (DGIR) to verify
whether the union is the correct union for his industry and whether the
workers are member of the union.
If the employer refuses to give recognition or fail to reply the union's claim, the union can
report to the DGIR. The DGIR will then investigate and take necessary action to settle the
dispute. If the employer still rel11ses to grant recognition the DGIR can brought the matter to
the Minister of Human Resources. The Minister of Human Resources has the power to
decide whether or not the union should be recognized.
Once the registered trade union has been awarded recognition by the employer, the process of
collective bargaining can now take place.
ACTIVITY
I.
2.
HO\v does a union get recognition from an employer?

What are the consequences to a Trade Union which fails to get recognition?
15.6 Collective Bargaining

Malaysia, as a newly industrializing country realizes the importance of collective bargaining in
ham1onizing the employee and the employer relationship. As quoted by our Prime Minister Dr.
Mahathir Mohamed." As long as our cost of production is low, we can compete, continue to develop
and progress. But if we also use the test of strength approach in settling industrial disputes, we too
will face production cost increases and lose our competitive. edge. The effect on us will be worse
because we do not have our technology, we are short a capital and our domestic market is smalL "
Three approaches were adopted by the Industrial Relation Act as the need for avoidable industrial
actions that are collective bargaining, conciliation ffild arbitration.
WHAT IS COLLECTIVE BARGAINING (CB)
Collective bargaining can be broadly defined as a process o_f bargaining between employers
and their employees by which they settle between themselves their disputes relating to
working hours. wages and other terms ofemplf:!yment and conditions o_(work.
Labour Relationsjlsl
and Collective
Bargaining
rnmmmomr;
The best way to solve a dispute is together, talk over the differences, enter into a process of
negotiations and bargaining and settle them. Settlement of disputes through mutual
discussion and negotiation can create co-operation and harmony atmosphere. How ever in
the 'CB' the final out cause ofthe bargaining may depends on :
I. The strength of the parties which determine the issues

2.
3.
The art, skill and strength of the representatives of one party to the other
Readiness for parties to discuss and settle the issues
The Industrial Relation Act defines 'CB' as negotiating with a view to the conclusion of a
collective Agreement.
are then the rights of workmen where via organizing themselves
into trade unions. they can bargain collectively with the employer on terms of employment
and cOnditions of work as \veil as to collectively withhold labour to back up the process of
'CB'
cs
COLLECTIVE BARGAINING PROCEDURES
'CB' is considered by the government to be the best way for private companies to decide on
workers terms and conditions of service. The procedure for collective bargaining is laid out
in the Industrial Relation Act (section 13). The figure below shows the CB procedure in
diagrammatic fo~. (Aminuddin, 1990)
In the bargaining process, there are issues that employer refuses to bargain and those issues
are referred to as ~Managerial Prerogatives'. 1l1e managerial prerogatives include (as stated
in section 13 (3)
a.
b.
c.
d.
e.
f.-
the promotion by an employer of any employee from a lower grade to a higher grade.
the transfer by an employer of an employee within the organisation.
the employment by an employer of any person that he may appoint in the event of a
vacancy.
the termination of a;1 employee by an employer due to reasons of redundcy or restmcturing of the organisation.
the dismissal and reinstatement of an employee by an employer.
the assignment or allocation of duties and tasks by an employee to an employer.
COLLECTIVE BARGAINING IN PUBLIC SECTO~
Most countries differentiate bet\veen the private and public sectors when it comes to
Industrial Relation systems. In Malaysia, tl1e government is the largest employee and the
terms and conditions of service granted to public sector employees influences the private
sector.
There is no CB in the public sector. However, the government has appointed special
cOmmission from time to time to discuss the terms and conditions of public service.
The public services department which is under the prime Ministers Department is
responsible for all planning and implementation of personnel related functio.ns in the public
service. The PSD also monitor the question of the National Joint Councils (NJC).
HRM533
Introduction to HRM
The NJC are forums for discussion and debate between unions representing employees in the
public sector and thei"r employer. The Councils is actually a form of joint consultation which
provide a channel of communication for the government to receive feedback from the unions
in the public servic~.on the vie\vs of the public sector workers.
The Public Service Tribunal, established under Public Service Tribunal Act 1977, heard and
adjudicated any dispute in regard to in the implementation of the cabinet committee report
on services and terms and conditions of service.
ACTIVITY
I.
2.
Describe the meaning of collective bargaining and its process in the private
sector.
What factors influence the outcome of collective bargaining?
15.7 Collective Agreements (CA)

CA is an agreement between trade union and the employer. It is a written agreement regarding
working conditions and terms of employment and was defined by section 2 of the TU Act ( 1959) as
i)
ii)
iii)
iv)
v)
an agreement
in \vritten
concluded between an employer or a trade union of employer on the one
hand and
relating to the terms and conditions of employment and work of workmen
and
concerning relations between such parties.
Section 14 of the Act dictates that a CA must contain the following before the industrial court take
cognizant~ of the agreement.
a)
b)
c)
d)
name the parties

specify the effective period which must not be less than three years from the date of
commencement of the agreement.
prescribe the procedure for its modification and termination and
prescribe the procedure for the adjustment of any question that may arise as to the
implementation or interpretation of the agreement.
'
Items commonly found in cA are :'
i)
Recognition
ii)
Union security
iii)
Compensation and benefits
Labour Relations
and Collective
\15\
Bargaining
[BI]EJ[I][)[l][l
15.8 Grievances
An individual workmen's complaint is termed as ;grievance. It is any factor involving wages,
working hours, or conditions of employment that is used as a complaint against the employer. For
example:
i)
An employee was being terminated by his employer due to excessive absences. The
employee filed a grievance stating that he was terminated without any warnings or related
discipline this termination is not is proper justice.
ii)
A junior employee was hired to fill the position of a laid off senior employee. The senior
employee filed a grievance protesting the action .
DO'S AND DON'T'S FOR HANDLING GRIEVANCE
The best way to handle grievance is to create a conducive work environment that will not
promote dissatisfaction among employees. However, human beings are unique and employee
and employer expectations and objectives differs.
Do's
l.
2.
3.
4.
5.
6.
7.
8.
Talk with the employee about his/her grievance, give the person a good and fhll
hearing.
Investigate and handle each c.:1.se as though it may eventually result in an arbitration
hearing.
Comply with procedure for handling the grievance
Visit the work area of grievance
Examine the grievant's personnel record
Fully examine prior grievance records
Hold your grievance discussion privately
Treat the ubion representative as you equal
Dont's
I.
2.
3.
4.
5.
Discuss the case with the union representative without presence of grievant.
Make agreements with individual employee that are in consistent with the legal
provision.
Bargain over items not covered by the contract
Trade a grievance settlement for a grievance withdrawal
Deny grievances on the premise that your ;hands have been tied by management".
The example on the next page illustrates the grievance procedure in ;CA" between the
National Union of Petroleum and chemical industry workers and a company in Penang
(Aminuddin, 1996)
What is a 'grievance?
How \VOuld you handle a grievance?
HRM533
Introduction to HRM
SAMPLE GRIEVANCE PROCEDURE

Purpose
It is desire of both parties to this Agree_ment that grievances arising between an employee
and
Company or between the Union and the Company be settled as equitably and as
quickly as possible. In pursuance of this, it is agreed that grievances should be processed
accordingly to the following procedures, with the aims of reaching agreement at the lowest
possible level and of maintaining continuous good relations between both parties.
the
Definition of Grievance
A grievance shall be defined as a reasonable and legitimate complaint by the employee

concerned which he brings to the attention of his immediate supervisor/officer and which is
subsequently not settled to the satisfaction of the employee.
Procedure
Step 1.
If the employee fails to obtain satisfaction from his immediate supervisor/officer, he
may approach his manager, if he so desires, with a union branch officiaL If the
employee still fails to obtain satisfaction within five working days, he may refer his
grievance in writing either directly or through the union as he wishes to the Personnel
Manager..
Step 2.
If the matter is still not settled within a further seven working days the union's branch
shall make representation in writing to the general manager or his appointed deputy_
The general manager of his appointed deputy will then arrange a meeting to be held
within ten working days of the receipt of the union letter.
Step 3.
If the matter is still not resolved after this meeting or any further meeting which both
parties may agree to hold, the Union may make formal representation to the
company in writing through the General Secretary within ten working days of the date
of the final meeting at this leveL
On receipt of the union's letter, the company will offer arrangements for a meeting
between the company and the union which will be attended by senior officials of the
Company and the Union, such meeting to be held within ten working days of the,
receipt of the Union's letter.
Step 4.
If the matter still remains unresolved after this meeting or any further meeting which
both parties agree should be held, both parties agree to refer the dispute for
settlement under the provisions of the Industrial Relations Act
-ED""'".,..,.,.
1 ... "'~"~
Labour Relations
and Collective
Bargaining
!lsi
(] rD EU!li:U!Hl
15.9 Trade Disputes
The Industrial Relation Act ( !967) clearly recognizes the need for settling the industrial disputes
incidental to promoting 'CB' between the parties and ensuring constructive industrial relations
between the employers and their employees. l11e Industrial Relation Act ( 1967) under section 2,
defines, ''trade dispute means any dispute between the employer and his workmen which is connected
with the employment or non-employment or the terms of employment or the conditions of v..-ork of
any such workmen."
Based from the definition, it should be noted that :
I. A trade dispute could exists without unions. There is no mention of trade union of employers
or trade tnlion of workmen. It means a trade dispute could exist without unions. (V.
Anantaraman, 1997)
2. The employee involved must be a workmen- not in other capaCity such as the Managing
Director and Board of Directors who are the directing mind determining and formulating the
company s policy.
15.10 Settlement of Trade Disputes

Industrial disputes can be settled by either voluntary or forced approaches. The Industrial Relation
Act made several provision as follows :
Conciliation
To bring together the two parties involved to resolve their problems.

Section 18. Industrial Relation Act give the DGIR a certain power
To ensure smooth conciliation process, Section 19 A ofthe act also
Indicated that the Minister may, at any time if he considers it
necessary take such steps as may be necessary to conciliate in any
trade dispute.
Arbitration
A method of setting dispute whereby the two parties involved

request a third party, or are compelled by law to use a third party to
make a decision for them. The parties to settlement by arbitrator
must agree to accept the decision of the arbitrator as binding.
Investigation
Where a trade dispute exists the Minister may appoint a committee

and Inquiry of Investigation or a Board of Inquiry and refer to the
body any matter appearing to him to be connected with or relevant to
the dispute. The decision to establish a Committee or Board rests
with the Minister and does not require agreement from the affected
parties.
Direct Negotiation
The best method to solve industrial disputes is when both parties

involved the employer and the union are willing to sit at a table,
talk over differences. TI1ey enter in a process of negotiations and
bargaining and settle them through mutual discussion and
negotiation. This approach is without involvement of an outsider.
This voluntary negotiations are encour'J.ged in the Industrial Relation
Act. In this process trade unions become stronger and employers
become more responsive to trade unionists.
EDCi.
~~1}':'~
"'-."..,...,.,.
HRM533
Introduction to HRM
15.11 Types of Industrial Actions

INDUSTRIAL ACTION BY EMPLOYEES
a)
Strikes
It is a concerted withdrawal of labour by a group of workmen. The group of workmen
may refuse to continue work or to accept work until their employer accepts this demands.
As defined by the Industrial Relation Act (section 2) a strike 13.
The cessation of a work by a body of workmen acting in combination~ or a concerted
refusal or a refusal under a common understanding of a number of workmen to continue
\vork or to accept employment and includes any act or omission by a body of workmen
acting in combination or under a common understanding, which is intended to or does
result is any limitation, restriction, reduction or cessation of or dilatoriness is the
performance or execution of the whole or any part of the duties connected with their
employment.
The above definition includes various forms of industrial action such as the go~slow and
work to-rule .Industrial Court Award No. 3/76 states that ''A go-slow is likely to be more
harmful than total cessation of work by strike. It is in effect a strike on the job, a sort of
sabotage which cannot be easily justified.
A strike cannot take place in any of the following circumstances :
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
A secret ballot must be held by those eligible to strike, clearly stating the issues
leading to the proposed strikes.
TI1e results of the ballot must be sent to the 'DO' of 'TU. within 14 days of
taking the ballot.
The strike can only take place if two-thirds of entitle vote agreed to the action
The strike can only take place after awaiting seven days (cooling-off period) after
the ballot results have been sent to the DO.
Strike is illegal if it does not follow the requirements set in the TU.
Strike cannot take place of the dispute has been referred to the Industrial Court
(IC)
Strike cannot take place if the trade disputes is concerning matters of managerial
prerogatives and matters covered in the 'CA
Strike cannot take place ifthe disputes occur in the public sector where The Yang
Di Pertuan Agong has withheld consent to the reference of the dispute to the !C.
TI1e Coolingeoff period is intended to allow :

i)
ii)
iii)
iv)
DO ofTmde Union time to check the validity of the ballot

Union members to rethink their decisions
The employer for second thoughts
The Minister of Human Resources to interview and refer the dispute to the 'IC'.
Labour Relations
and Collective
1151
Bargaining
lB liJ EHil [] mrQ

b) Picketing
The practise of picketing a \Vork-place in order to persuade other employees not to enter
is a common weapon used by trade unions when they are involved in disputes. Section
40 oflndustrial Relation Act ( 1967) allows picketing but only in a very limited way. The
law allows picketing at or near the place but not in the place. The locality where
picketing may be carried out is also limited to the place where the workmen work and
where a trade dispute involving such workmen exists.
The picket must also be conducted only for the purpose of obtaining or communicating
information or persuading or inducing any workmen to obtain from work. The picketing
should not involve intimidation and no show or threat to violence. If the manner of
picketing ceases to be peaceftii or endangers the public peace the picketing will become
unlawfttL Picketers are not entitled to obstmct people or the passage of vehicles for the
purpose of communicating information.
In Malaysia, picketing must be properly organized and those participating in it must be
disciplined. As dictated by Wu Min Aun ( 1982) failure to obey police orders may results
-~--~?
.. in the r~ther vague offence ofobstmcting a policeman in the discharge of his duty .
. ? . :.
:
What is the purpose of having a 11 cool-offperiod 11 ?

Under \vhat circumstances that a strike would be illegal
*\
INDUSTRIAL ACTION BY EMPLOYERS
a)
Lock-out
Lock-out is the employer's weapon of forcing the workmen to accept his terms and
of employment. According to the Act, lock-out means:
conditi01~s
i)
ii)
iii)
the closing of a place of employment, or

the suspension of work, or
the refttsal by an employer to continue to employ any number of workmen employed
by him.
The procedures for lock-out are the same as those for a strike. However, there is no specific
provision conferring on the employer the freedom to declare a lock-out, such a light is
interred from various provisions of the Trade Union Ordinance and the Industrial Relation
Act. (Wu Min Au, 1982).
Summary
Employees get organized to ensure their well-beings as a worker either from the employer or the
\Vork environment perspectives. The Malaysian Industrial law are meant to ensure that trade unions
are lawful bodies that carries out their legitimate activities responsibly.
Being a developing country, the control and restrictions on trade union foc1;1ses on the needs for
developing the country's economy. Our industrial relation systems also greatly depends on the
compulsory arbitration system to ensure a human, fair and equitable relationship between employer
and employee and the trade unions of employees.
HRM533
Introduction to HRM
'~CHECKLIST
0
o
Explain the meaning of labour relations and describe its importance.

Explain the role of government in harmonizing the employees and employers relation.
0
0
0
0
Explain and describe the role of trade union as enacted by the legal provision.
Describe and discuss the process of collective bargaining.
Explain and discuss the procedures of handling grievances.
Explain the various approaches to settle trade dispute according to the legal provision.

\~hy don't you list the key telllls in this chapter .... look out for definitions and words use .to descrjbe
situations etc.
Discussion Questions _______________..............,

l.
What is a grievance?
What steps should management adopt in order to avoid grievances'?
2.
Discuss basic areas in which union impact on rp.anagement will be felt.
3.
a) What is a trade union and why do employees choose to unionize?
b) Hov. can an employer create a union free environment?

c) What is a trade dispute and what causes such disputes?
4.
a) Distinguish between 'picket"", 'strike.. and "lock-out"".

b) Briefly discuss the collective bargaining procedure .
.5.
What is trade unions and discuss why some employers resort trade unions?
HUMAN RESOURCE RESEARCH

We start this chapter with the benefits of human resource research and methods of inquiry in
human resource research. You will also go through the research process and finally evaluate
human resource functions. Take a look at the chapter overview before proceeding.
Overview Map
~,----.------1:
HUMAN
LEARNING
OBJECTIVES
RES~URCE RESEARCH
:f--------.
APPLICATION
PROJECT
CHECKLIST
SELFTEST WITH
ANSWERS
1.
2.
3.
4.
What is HR Research?
Benefits of HR research
Major Global HRM problems
Methods of Inquiry
>
The Case Study
:..
The Survey Feedback
r
The Experiment
5.
6.
The Research Process

Evaluating the HRM functions
;;-.
Checklists
>
Quantitative measurers
7.
8.
Technology affecting HRM

Summary
ARTICLE RELEVANT
TO THE TOPIC
KEYTERMS FOR
REVIEW
HRM533
Introduction to HRM
Table of Contents
263
HUMAN RESOURCE RESEARCH

Learning Objectives
26~
16.1
What is HR Research?
265
16.2
Benefits Of HR Research
265
16.3
Major Global Human Resource Management Problems
266
267
267
268
268
16.-'
Mctholls oflnquiry in Human Resource Research
The Case Study
The Stmey Feedback Method
The Experiment
16.5
268
270
270
270
16.6
Evaluating the Human Resource Management Function
Checklist
Quantitative measures
16.7
271
Technology Affecting Human Resource Mamtgement
272
Learnin~
Objectives
1.
Discuss the importance. of research to human resource management
2.
Identify the basic methods of inquiry for research and describe the steps in the
research process
3.
':- Eo
c .,_,.,..
. .:;~
Describe how the human resource functions may be evaluated, and

technological advances can affect human resource management.
hO\V
Human Resource\16\
Research
[B[I]E][j]iJ[iJ[;
16.1 What is HR Research?
Human resource research is the systematic study of an organization's human resources for the
purpose of maximizing personal and organizational goals achieveJTlent
HR research is a non-stop process same thin with HR management. It provides a valuable
information for any organization in order to cOpe with diverse responsibilities and very fast
movement
~r,?~
?. . ..
.
'
-'k
Read the statement quoted below.
''Employee attitudes revealed through human resource research can be qf

tremendous benefit to managers as they attempt to determine the real reasons for
high turnover rates and other indicators of employee dissatisfaction. Without
this in.fOrmation, a situation may continue to give more problems to the
organization.
(Mondy, 5th. Etlition)
Does it help you to understand what HR research is all about?
16.2 Benefits Of HR Research

HR research provides an effective management for the followings:
a.
Human Resource Planning, Recruitment and Selection

Human Resource research can help in explaining why an individual rimy be
an excellent worker in one finn and a poor worker in another.. eventhough the
job.s seem to be similar. Thus, it helps the organizations to find the best
match between their needs and those of their employees. [t can be done on
hO\v to plan well, to determine how individuals with high potential can be
encouraged to apply for jobs witl1 the firm.
b.
Human Resource Development (HRD)

Human Resource on Human Resource Development may identify the
employees who can benefit from train~ng. For instance, a high error rate
associated with certain employees might indicate the need for additional .
training.
c.
Compensation
Currently, compensation research is widely used to identify potentia~
problems before they get out of hand. For example, if tl1e supply and
demand for skilled employees in the labor force is ~onstantly changing, an
organizations compensation program can rapid.ly become outdated and must
therefore be closely monitored.
HRM533
Introduction to HRM
d.
.Employee and Labor Relations
Human Resource research in the area of employee and labor.relations focuses

primarily on areas that affect individual job performance. It may identify
factors that will allow the organization to remain union-free. This is because
of when problems are left unsolved, the worker may believe that the only
remedy to the situation is to join the union. As a matter of fact, a closely
monitoring factors that affect employee and labor relations will probably
always prove beneficial to both the employee and the organization.
e.
Safely and Health of the organization

This Human Resource research focused more the identification of potential
problem areas. For example, study may be conducted to determine. the
locations and causes of accidents. It also can be used to identify
characteristics of workers having higher accident probabilities. Accident
patterns may be identified and changes recommended to prevent their
occurrence.
16.3 Major Global Human Resource Management Problems

Below are the most important issues related to global Human Resource Management derived from a
recent survey conducted by several organizations and institutions.
ACTIVITY
Make your own notes for each of the problem. To do so, you might need to
search the internet or refer to articles in magazines or the newspapers.
a.
Legal aspects of Human Resource resources
b.
International Human Resource management
c.
IT in Human Resource management
d.
K - workers
e.
Workplace violence
EDC . .~
Human Resourcelt61
Research
lB DHiJ mDmr;
f
Networking in Human
g.
Corporate punishment
h.
Sexual Harassment
1.
Resourc~
management
Spirituality and religion
J.
Justice and equity
k.
Culture and symbolism.
Do you know of. did you come across other HR management problems?
..
16.4 Methods of Inquiry in Human Resource Research

The type of problem and the particular needs of the organization, determine to a large extent the
methods of inquiry that will be used. Three of such methods are discussed below.
THE CASE STUDY
A case study is an investigation into the underlying causes of specific problems in a plant. a
department, or a work group. The results of the researcli apply only to that particular set of
problems and cannot be generalized. Typical problems that the case study method might be
used to investigate include the following:
High Turnover
High Absenteeism
High Accident Rate

Lo\v Morale of workers
Low Number of minority group
HRM533
Introduction to HRM
THE SURVEY FEEDBACK METHOD
In the survey feedback method, a prepared questionnaire is used to systematically collect and
measure employee anitudes. It can be either the objective multiple-choice type or the scaledresponse type which asks for agreement or disagreement.
Two important points to remember when employing the survey method:
! Survey responses often identify symptoms rather than causes. Thus, the
researcher should avoid concentrating on isolated responses. Instead, the data
should be viewed from a broader perspective.
: When surveys are used to identify employees attitudes and opinions,
confidentiality of responses must be ensured. It can be done by omitting a
workers name on the questionnaire.
THE EXPERIMENT
This method utilizes a control group and an experimental group. The control group continues
to operate as usual, whereas selected variables are manipulated for the experimental group.
For instance, a manager may want to determine the effect that a new training program will
have on productivity. The control group would continue to perform tasks in the conventional
manner. The experimental group would receive the training. The assumption is that any
change in productivity in the experimental group results from the training.
16.5 The Research Process

The chart below shows a typical research process.
a.
Recognize the problem

The first thing in Human Resource research is to recognize
that a problem exists. For instance, at what point does
absenteeism or turnover become excessive. [n actuality, the
problem may be caused by an inadequate selection process,
insufficient managerial training or any number of other
reasons. It may happens also as the manager suggests, there
might not be any problem within organization. Whatever
happen. an openness on the part of the manager is the most
vital factor in problem recognition.
b.
State the problem

The next step in the process is to clearly state the purpose of
the research. For instance. a manager might maintain that
the cause of declining production is low pay, when in fact
the real reason is in adequate supervision or ins-ufficient
training. Thus, a clear definition of the problem is essential
for effective research.
. .<>Recognizitne.p:r~bl\im
. . ~....... !~ ..
..
,i!f#f1S!~t&tt\1if~9l~~!jf~'f ' .
;\S'~~-s..~q;~;Jit~JjJ Q.ti,i~t.iuti1JiiJ;Y .
...
. ,. . ._r~'"<> ~-
.,~
: "'>triterp ret!resi!flts..
I .
,.,. . :takeaetio.nk
.I.,......... ,.... ..'
6~iil\i~teitlie;acil8n~tilken
- ' .
.
.
.
-~
Human Resourcell6l
Research
(] Ul EH!l IJ CHa
c.
Choose the method of inquiry

The method of inquiry chosen depends to a large extent on
the nature of the research. TI1e methods of inquiry
previously described: -the case study, the survey and the
experiment- are all valuable. However, most Huinan
Resource research involves either the case method or the
survey.
d.
Select and use the appropriate research tools

Numerous quantitative tools are available for use by the
human resource researcher. Managers do need to know the
availability of quantitative tools, circumstances under which
these tools should be used, strengths and weaknesses of each
method and how to interpret the results. The selection of a
tool depends on the particular purpose for which the research.
is being conducted.
e.
[nterpret the results

The individual involved in the problem should participate in
interpreting the results when outsiders alone attempt to do
this, they often arrive at strange conclusions. For instance,
the survey may suggest that major dissatisfaction exists in
the engineering department. A person not close to the
situation might mistakenly identify the problem as one and
in adequate supervision. Actually, the engineers may have
voiced their dissatisfaction with the conditions of their
facilities.
f.
Take Action
The results may have identified areas in which changes need
to be made. The Human Resource manager no\v becomes
the catalyst to convince the mrumgement team that a change
is necessary. Definitely, this is the mist difficult task to
complete. This is because, telling a manager that his or her
management style is causing excessive turnover can be not
an easy task. However, the benefits of research are realized
only when action is being taken to resolve the problem that
ha5 been identified.
G.
Evaluate the action taken

Evaluation requires an objective assessment of whether the
action has solved the problem and if so, how. Determining
whether the problem has been adequately solved will assist
in future research efforts. Revisions may be needed or the
entire research approach may need to be rethought, but the
information gained through a well Conceived research
project almost always proves useful./
Do you know what we

mean when we mention
quantitative tools?
Can you list some of
them down?
HRM533
ln.troduction to HRM
16.6 Evaluating the Human Resource Management Function

There are two basic methods may be used to evaluate human resource management activities:
checklists~ and quantitative measures .. ,
CHECKLIST
It poses a number of questions that can be answered either '-yes" or "no". This method is
concerned with whether important activities have been recognized and if so, \Vhether" they are
being performed. Essentially, the checklist is an evaluation in terms of what should be done
and the extent to which it is being done.
The more yes" ans\vers there are, the better the evaluation~ no" answers indicate areas or
activities where follow-up or additional work is needed to increase Human Resource
Management"s effectiveness. TI1e checklist method is purely on internal evaluation devices.
It is not a vehicle for comparing one company with another.
QUANTITATIVE MEASURES
It relies on the acclunulation at various types of numerical data and the calculation of certain
ratios from them. Numerical data are useful as an indicator of activity levels and trends.
Ratios shmv results that are important in themselves but that also reveal (when maintained
over a period of time) trends may be even more important.
ACTIVITY
ASK YOURSELF
Working at your own organization, kindly ask yourself the following checklist
questions:a.
Are all legally mandated reports submitted to requiring agencies on time?
YesfNo
b.
Have formalized procedures and methods been develop for conducting job
analysis?
Yes/No
c.
Are human resource requirements forecasts made at least annually?
YesfNo
d.
Is the recruiting process effectlvely integrated with human resource

planning?
Yes/No
e.
Does the application from conform to applicable legal and affirmative action
standards?
YesfNo
f.
Are all employees appraised at least annually''
g.
Are career opporttmities communicated Clearly to all employees?

YesfNo
YesfNo
Human Resourcejl6j
Research
mmmmomm
16.7 Technology Affecting Human Resource Management

With the usage oflnformation Technology (IT) in almost all types of businesses and jobs, the impact
of IT on the Human Resource Management has been tremendous. Nowadays, be using the InterOrganizational Information System (lOS), information can easily transferred between two or more
organizations, thus making effective communication at a reasonable price. lluough IT, all
information can be delivered almost in real time and can be automatically forwarded to the
appropriate department for processing. There are very few errors in the transformed data as a result
of computer-to-computer data transfer information is also consistent. Using IT, one can improve
recruitment and Human Resource Development in a multinational corporation.
To summarize, the modern global business organization transnational and culturally complex. Its
diversity brings different competitive advantages and challenges to each industry and organization.
The speed of change and global dispersion of information also accelerates the rate of social change
across the globe. The pressures produced by these factors are pertinent issues that are affecting all
organizations to some degree in which it requires the Human Resource Management to keep abreast
of the latest information and usage of IT on its area.
Belovv are a few examples of IT.
a. Teleconferencing:
A method of conducting or participating in multiparty discussion by

telephone or videophone.
b. Voice Mail:
Is electronic transmission and storage of spoken messages for

delivery to the recipient at a later time
c. Word Processing:
A computer application that permits an operator

to create and edit written material
d. Spreadsheet Programs:
Provide a column-row matrix on which numbers or words

can be entered, stored and used for calculations
e. A Decision Support:
Is an information system that allows users to System

(DSS)interact directly with a mainframe computer to quickly
process and retrieve information
f. A Database Management:
Is to reduce data and Programming redundancies as much as

possible; the terms thus refers to the integration of the
various infom1ation subsystems in order to minimize
duplication.
g. Data Communication:
The ending of coni.puter data over some form Of

communication medium such as telephone lines.
h. Telecommuting
(Teleworking) :
Employees '.vorks at home or any working

centers and transmit data over telephone lines tied to a computer.
HRM533
Introduction to HRM
Suminary
HR research is vital in maximizing personal and organizational' goal achievement. It is
an on-going process in which needs for research.
Several methods of inquiry can be used in HR research such as case study for covering
the underlying reasons occurs within the organization. survey feedback"' for determining
the employee attitudes and ''experiment" in the manipulation of certain variables while
others are held constant.
Recognizing the problem, stating the problem, choosing the method of inquiry, selecting
and using the appropriate research tools, interpreting the results, taking action and
evaluating the action taken care all the processes involved in HR research.
Two basic methods can be used to eval~ate HR management activities~ 'Checklists and
Quantitative Measures. The checklist approach poses a number of questions that can be
ans\vered with "yes" or 'no". This method is concerned with whether important
activities have been recognized and if, so whether they are being perforn1ed. The
quantitative method relies on accumulating numerical data and calculating various ratios
from these data for corporate purposes.
Teclmological advances tike teleconferencing, voice mail, word processing, spreadsheet,

a decision support system (DSS), database management, data communiCation and
teleconferencing occur virtually every day. Thee developments can improve HR
management and raise employee productivity.
The assignment below will help you apply what you have learned so far. You are expected to provide
essay-type answers based on the questions posed at the end.
APPLICATION PROJECT
Irdeena Balqis is a plant manager for Ezi Company in Pahang, Malaysia. The company
prodtiCes a line of relatively inexpensive painted wood furniture. Six monthS ago, lrdeena became
concerned about the turnover rate among workers in the printing department. Manufacturing plant
turnover rates in that part ofPulau Pinang generally averaged about 30 percent, and this was the case
at Pahang as well. The painting department, however had experienced a turnover of nearly 200
percent in each of the last two years. Because of the limited number of skilled workers in the area,
Pahang s Branch had an extensive training program for new painters, and Irdeena knew that the high
tumoverrate was very costly.
Irdeena conducted eXit interviews with niany of the departing painters. Some of them said that they
were leaving for more money, others mentioned better benefits, and most cited some kind of
"personal reasons"' for quitting. lrdeena checked and found that Pahang's Brach wages and benefits
were competitive with, if not better than, those of other manufacturers in the are she then called in
Nik Ramli the painting supervisor, to discuss the problem. Nik Ramli's response \Vas you kri.ow
hm.v this younger generation is. They work to get enough money t live on for a few \Veeks and then
quit. I don "t worry about it. Our oldtimers can take up the slack." "But Nik", lrdeena replied, 'we
have to worry about the turnover rates. Ifs really costing the company a lot of money. rm going to
ask Mr. Ismail in the HR department to administer a stirvey to get the bottom of this." Nik Ran:Jli
replied. 'Do whatever you think is right. I don't see any problem."
EDC,C"2m
Human Resource\16\
Research
[B[DE][!]I][g[;
Questions:
l.
Do you agree that a survey of employee is the best way to identify the problem?.
Explain.
2.
If you determine that a survey is needed, what kind of survey would you conduct and
how would you analyze the results?.
,---:/
IV,_\ CHECKLIST
Describe the general methods of inquiry used in HR research
Identify the basic steps of the research process
Explain the important or benefits frori1 an effective HR research
Explain how the HR management function rimy be evaluated
Identify and define the technological advances affecting human resource

management

Human Resource research
case Study
Survey feedback
Experiment
Data Communication
Word Processing
Decision Support System (DSS)

Database Management
Teleconferencing
Telecommuting
Voice Mail
Expert System
HRM533
Introduction to HRM
Self-test
a.
The systematic study of an organization s human resources for the purpose of

maximizing personal and organizational goals achievement is also known as
b.
List down the 4 most important issues related to global Human Resource
Management
I.
Ill.
II.
IV.
c.
The case study, men taring and experiment are the three basic methods of inquiry in
Human Resource research
Tme/False
d.
The research process involved the followings EXCEPT,
e.
1.
Recognize the problem
iii. Fire the manager/head of department
11.
State the problem
iv. Choose the right method of inquiry
.,-------and.--:c_
____
are normally used in evaluating the Human
Resource management functions.
Discussion Questions ,,.

....w............,....,.,,............._ _ _ _ _.,.,.........,...................
1.
Describe the HR research process and provide examples as ...veil.
2.
Explain the importance of research for the company or organization.
3.
Describe the methods used in research.
Jf!J
(~
Human
Resource Research
b.
c.
Any four from the list given/provided

False
d.
iii
e.
Checklist, quantitative measures.
Human Resourcell6l
Research
mmEH!liJ mr;
Transforming HR into A GLOBAL POWERHOUSE

BUILD GLOBAL MANAGERS WITH GLOBAL SKILLS. When corporations embark upon a global
strategy, they go through several developmental phases. Each phase has key implications for the
HR function. Different phases require special approaches to personnel and training (see box below.)
HR practitioners must develop a cadre of managers who can help an organization expand at
whatever stage it is in. They must share common identity, values and knowledge, and be flexible
enough to accept additional international transfers at senior management's request. Instead of
primarily using expatriates, many firms now use foreign nationals or employees who are native to the
country of operation. They also use third-country nationals who are employees originating from a
country that is Qeither the country of operation nor of the company's headquarters.
The use of foreign nationals offers many benefits. Typically, foreign nationals offer outstanding
capabilities at lower overall compensation rates, especially when compared to a North American
expatriate package consisting of salary and the requisite expatriate allowances. Foreign nationals
have the benefit of understanding the local business practices and establishing networks in a region.
As a result, they may be better able to manage the local workforce, anablyze local competitors, and
tap into local suppliers and research centers.
Astute global human resource managers must recognize the need to recruit and develop the talent
pools of both foreign national and third-country nationals in addition to expatriates. To accomplish
this, many companies are creating training, executive education, and career management systems
that encompass a global pool of talent. Managers in all countries can be offered the opportunity to
compete for international assignments, developmental job assignments, developmental job
assignments, access to training opportunities, and communication linkages to understand the pulse of
the business.
Mentoring can also be a meaningful way of developing managers for global work. Organizations can
build the confidence of inexperienced managers by pairing them up during an assignment with
experienced global managers. Experienced expatriate managers can be instrumental in assimilating
foreign nationals to better understand the corporate and social culture of the parent company. Even if
not especially werr:suited as mentors, HR practitioners are in the best positions to recommend
possible mentors.
CREATE A BLUEPRINT FOR GLOBAL CHANGE. Employees often buck cultural change because
they are comfortable with the status quo. So when a corporation tries to embrace a new culture,
particularly on a global scale, the undertaking can be particula~y hard .. Culture change occurs over
the long-term and requires extreme care during implementation. Human resources must be involved
in determining what a global-culture will look like, how it will function and how it will be implemented at
all levels of the organization. Without the guidance of HR professionals, senior executives simply
may not be able to accomplish this task.
HRM533
Introduction to HRM
"It takes about five years to develop a globally aware and competent workforce that can manage all of
this." says Stephen H. Rh.inesmith, president of Rhinesmith and Associates Inc. "There's no quick
fix."
To lead their organizations in managing increasing globalization, the role of HR is clear, HR
managers should find, place, develop and aligh systems for global leaders to help their organizations
prosper in the new business environment. Thoroughly understanding the global business strategy of
the organization is imperative. From this knowledge, HR systems can b assessed for their
customization and flexibility. And horizontal integration of the HR function with others in the
organization will begin.
A BLUEPRINT FOR GLOBAL SUCCESS
Monitor the literature of the industry. Look for best practices in using people to the best
competitive advantage in identifying and taking advantage of international business opportunities.
Make sure you are involved at the outset. Don't assume others will ask for HR practitioners'
involvement in globalization, but offer them suggestions anyway. Do homework on HR practices
in the other nations with which the firm is doing business or wants to do business, and be
prepared to pinpoint the issues and offer specific recommendations about them to key decisionmakers.
Monitor problems. Follow up on expatriate assignments and with those
individuals who are repatriated. What do they wish had been different?. What did their mistakes
cost the organization?. What could have been done to avert them?.
Involve group affected by the change. Open a dialogue with HR practitioners in other nations.
Involve line managers in that dialogue to the extent that it results in information that may affect
their decision-making about HR practices.
Communicate the need for change to employees. One reason that many people do not feel a
sense of urgency or interest.in globalization issues is that they do not see how it affects them.
Offer briefing sessions to employees and managers about global issues affecting the
organization. Involve business managers who have done business internationally. Work to
create not only an overall awareness of a company's globalization efforts but also to establish
channels for sharing global experiences.
WILLIAM J. ROTHWELL is professor of human resource development at Penn State. ROBERT K.

PRESCOTT is director of public programs and MARIA TAYLOR is director of custom programs at
Penn State's Smeal College of Business Administration. This article is based on information from
"The Strategic Human Resource Leader:- How to Prepare Your Organization for the Six Key Trends
Shaping the Future" (Davies Black, 1998). ARTICLE# 10175.
Transforming Human resources into a Global Powerhouse
Currently, Human Resource is dramatically affected by globalization. Thus, the human resource
manage~s role must change to reflect new market dynamics, include rapid advance in technology,
communication and travel. They are also had to develop more familiarity with cross-national labor
laws and international standards.
Human Res~urce/16/
Research
[8[1E]TI][)t\][;
Further, Human Resource leaders also must be strategically focused and proactive in addressing
their organization's global needs successfully. There are 3 in globalization, include embrace a
partnership role, build global managers with global skills and create a blueprint for global change.
The first step is embracing a partnership role. Human Resource managers must spend time in
international operations to understand the dynamic regional Human resource practice and develop a
global mindset and truly global stralegies for staffing, compensation and career management.
Improving communications system globally through new world technology facflitating, such as
client/server systems can complele it and integrated database that allows for integrated information
and data communication.
The second step is build global managers wilh global skills. Human resource practitioners must
develop a cadre of managers who can help an organization expand in whatever stage it is in and
share common identity, values and knowledge,-and be flexible enough to accept additional transfer at
senior management's request. Further, Human Resource managers must recognize the need to
recruit and develop the talent pools of foreigner, by creating training, executive education, and career
management systems thai encompass a global pool of talent.
The third step is creating a blueprint for global change. Human Resource must be involved in
determining what a global culture will look like, how it will function and how it will be implemented at
all levels of the organizations.
Therefore, Human Resource manager has important role in order to lead their organization in
managing increasing globalization.
From my opinion, to meet challenges that are inherent in a global perspective requires a series of
strategic capabilities that are posed by any managers; not only force to Human Resource managers.
This globalization is more psychological than organizationaL They are not drawn on a company's
organizational chart but the minds of its manages and employees.
HRM533
Introduction to HRM
NOTES

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INTRODUCTION TO

INSTITUT PERKEMBANGAN PENDIDIKAN (lnED)

PUSAT PERKEMBANGAN PENDIDIKAN

A CONCEPTUAL MODEL TO INTRODUCTION TO HUMAN RESOURCE MANAGEMENT.

Introduction to HRM -An overvie

Human Resources Functions/Activities

Job Analysis &

A 'Venture' into HR in the new millenium

Enable you to indulge in an introductory study of human resource management.

Planning Your Study

Recommended Study Plan

So are you ready to take on the challenge of HRM?

Organization of this module

Questions which are representatives of the exam

Important points which act as a checklist

As mentionedo the module will be divided into six parts:

Introduction to HRM- An overview

Human Resource Functions/Activities

Developing Human Resources

Rewarding Human Resource

Maintaining & Protection of HR.

Human Resource Research

A CONCEPTUAL MODEL TO INTRODUCTION TO HUMAN RESOURCE MANAGEMENT.

Introduction to HRM -An Overvie

Human Resources Functions/Activities

Job Analysis &

Labor Relations &

Career planning &

Assessment for HRJ\.1 533 are as follows:

The details of the continuous assessment are as follows:

Individual Assignment (HRJ\1 533)

How the internet fi.tels globnlization and its effects on HR practices.

Discuss the 360% appraisal system.

What is meant by HRM?

Compensation in High tech industries

Test as an important tool for selection. Discuss.

Training a global workforce.

Requirement of project/Assignment [Individual & Group)

The report/assignment mnst be typed-written

Seminar 2 (Refer to schedule)

Seminar 3 (Refer to schedule)

Assignment 3 - Seminar 4 (Refer to schedule).

Groups for projects/Assignments must comprise of 4 persons based on the

Many organizations even individuals are

Introduction To Human Resource Management- An Overview

Steps in providing for Human Resources

Key Terms For Review

Define human resource management.

Explain how Human Resource Management influence an organization's perforinance.

Explain the historical development of Human Resource Management.

The 21' Century Organization

Inculcate team work

Human is the most important asset of an organization.

Wrongly selected individuals wi1l cause organizations to be dysfunctional.

Proper Human Resource Management will enhance organizational productivity and

The utilization of human resources to achieve organizational objectives.

The development, administration and evaluation of programs to acquire and enhance

STEPS IN PROVIDING FOR HUMAN RESOURCES

77ze initial attraction and screening ofthe supply of

Choosing an individual to hire from all those

The process ofdeveloping qualities in human resources that

The process ofreviewing past productive activity to evaluate the contribution

Source .: Cerro. Modern Management Prentice Hall 2000