WHAT IS HRM?

 HUMAN RESOURCE MANAGEMENT (HRM)

 The policies and practices involved in carrying out the “people” or

human resource aspects of a management position, including
recruiting, screening, training, rewarding, and appraising.

 MANAGEMENT PROCESS

 The five basic functions of planning, organizing, staffing, leading, and

controlling.

PERSONNEL ASPECTS OF A MANAGER’S JOB

1. Conducting job analyses (determining the nature of each employee’s job)

2. Planning labor needs and recruiting job candidates

3. Selecting job candidates

4. Orienting and training new employees

5. Managing wages and salaries (compensating employees)

6. Providing incentives and benefits

7. Appraising performance

8. Communicating (interviewing, counseling, disciplining)

9. Training and developing managers

10.Building employee commitment

 WHY IS HRM IMPORTANT

1. Hire the wrong person for the job

2. Experience high turnover

3. Have your people not doing their best

4. Waste time with useless interviews

5. Have your company in court because of discriminatory actions

6. Have your company cited by OSHA for unsafe practices

7. Have some employees think their salaries are unfair and inequitable
relative to others in the organization

8. Allow a lack of training to undermine your department’s effectiveness

9. Commit any unfair labor practices

BASIC HR CONCEPT

1. Getting results

 The bottom line of managing

2. HR creates value by engaging in activities that produce the employee

behaviors the company needs to achieve its strategic goals.

LINE AND STAFF ASPECTS OF HRM

1. LINE MANAGER

 A manager who is authorized to direct the work of subordinates and

is responsible for accomplishing the organization’s tasks.

2. STAFF MANAGER

 A manager who assists and advises line managers.

 LINE MANAGERS’ HRM RESPONSIBILITIES

1. Placing the right person on the right job

2. Starting new employees in the organization (orientation)

3. Training employees for jobs new to them

4. Improving the job performance of each person

5. Gaining creative cooperation and developing smooth working relationships

6. Interpreting the firm’s policies and procedures

7. Controlling labor costs

8. Developing the abilities of each person

9. Creating and maintaining department morale

10.Protecting employees’ health and physical condition

HR AND AUTHORITY

1. AUTHORITY

The right to make decisions, directs others’ work, and gives orders.

2. STAFF AUTHORITY

Advisory relationship

a) Innovator role

b) Employee advocacy role

3. LINE AUTHORITY

Supervisor-subordinate relationship

4. FUNCTIONAL AUTHORITY

Authority as coordinator of personnel

 FUNCTIONS OF THE HR MANAGER

1. A LINE FUNCTION

 The HR manager directs the activities of the people in his or her own
department and in related service areas (like the plant cafeteria).

2. A COORDINATIVE FUNCTION

 HR managers also coordinate personnel activities, a duty often

referred to as functional control.

3. STAFF (ASSIST AND ADVISE) FUNCTIONS

 Assisting and advising line managers is the heart of the HR manager’s

job.

EXAMPLES OF HR JOB DUTIES

1. RECRUITERS

 Search for qualified job applicants.

2. EQUAL EMPLOYMENT OPPORTUNITY (EEO) COORDINATORS

 Investigate and resolve EEO grievances, examine organizational

practices for potential violations, and compile and submit EEO
reports.

3. JOB ANALYSTS

 Collect and examine information about jobs to prepare job

descriptions.

4. COMPENSATION MANAGERS

 Develop compensation plans and handle the employee benefits

program.
5. TRAINING SPECIALISTS

 Plan, organize, and direct training activities.

6. LABOR RELATIONS SPECIALISTS

 Advise management on all aspects of union–management relations.

APPROACHES TO ORGANIZE HR

1. TRANSACTIONAL HR

 Carrying day to day transactions

2. CORPORATE HR

 Helping top management

3. EMBEDDED HR

 Helps departments like sales

4. CENTERS OF EXPERTISE HR

 Specialized consulting within companies

COOPERATIVE LINE AND STAFF HR MANAGEMENT

1. The line manager’s responsibility is to specify the qualifications employees

need to fill specific positions.

2. HR staff then develops sources of qualified applicants and conduct initial

screening interviews

3. HR administers the appropriate tests and refers the best applicants to the
supervisor (line manager), who interviews and selects the ones he or she
wants.
 THE CHANGING ENVIRONMENT OF HR MANAGEMENT

1. HR’S CHANGING ROLE:

a) Took over hiring and firing from supervisors, payroll, and benefit
plans administration.

b) Protecting the firm in its interaction with unions(labor relations).

c) Assumed organizational responsibilities for equal employment and

affirmative action.

TRENDS SHAPING HRM

1. GLOBALIZATION

a) Sales, ownership, manufacturing in new markets

b) More pressure

c) Lower cost

d) Less secure jobs (off shoring)

e) Partnerships

2. INDEBTEDNESS (LEVERAGE)

a) Spending more and earning less

3. TECHNOLOGICAL TRENDS

a) PDAs to communicate

b) Telecommuting

c) Virtual on line communities

4. TRENDS IN NATURE OF WORK

a) High tech jobs

b) Service jobs

c) Knowledge work and human capital

5. WORKFORCE AND DEMOGRAPHIC TRENDS

a) Demographic trends

b) Nontraditional workers

c) Retirees

d) Generation Y

6. ECONOMIC CHALLENGES AND TRENDS

a) Boom

b) Recession

TRENDS IN HRM

1. THE NEW HR MANAGER

a) Focus on big picture issues

b) New ways to provide transactional services

c) Have new proficiencies

d) The Need to “Know Employment Law”

I. Equal employment laws

II. Occupational safety and health laws

III. Labor laws

2. HIGH PERFORMANCE WORK SYSTEMS

a) Generate more job applicants

b) Screen candidates more effectively

c) Provide more and better training

d) Link pay more explicitly to performance

e) Provide a safer work environment

f) Produce more qualified applicants per position

g) More employees are hired based on validated selection tests

h) Provide more hours of training for new employees

i) Higher percentages of employees receiving regular performance

appraisals.

3. STRATEGIC HRM

4. EVIDENCE BASED HRM

5. HR PROFESSIONAL CERTIFICATION

a) HR is becoming more professionalized.

6. MANAGING ETHICS

a) Discrimination

b) Harassment

c) Glass ceiling

d) Employee surveillance

e) Employee safety
 MEASURING HR CONTRIBUTIONS

1. STRATEGY

a) The company’s long-term plan for how it will balance its internal
strengths and weaknesses with its external opportunities and threats
to maintain a competitive advantage.

b) HR managers today are more involved in partnering with their top

managers in both designing and implementing their companies’
strategies.

c) Top management wants to see, precisely, how the HR manager’s

plans will make the company more valuable.

KEY ASSUMPTION

EMPLOYEES ARE THE MOST IMPORTANT ASSET OF THE ORGANIZATION

1. The quality and effectiveness of the organization is determined by the quality

of the people that are employed.

2. Success for most organizations depends on finding the employees with the
skills to successfully perform the tasks required to attain the company’s
strategic goals.

WHAT ARE PERSONNEL/ HUMAN RESOURCE MANAGEMENT?

According to the British Institute of Personnel Management:

“ Personnel Management can be defined as “that part of management which is

concerned with people at work and with their relationship within an
organization.”
According to American Management Association:

Human Resource Management is that field of management which has to do

with planning, organizing and controlling various operative functions of
procuring, developing, maintaining and utilizing a work force in order that

a) The objectives for which the company is established are attained as

efficiently and economically as possible;
b) The objectives of all levels of personnel are served to the highest degree;
and
c) The objectives of the community are duly considered and served.”

HRM STAKEHOLDERS
a) Society
b) Organization/Owners
c) Employee

OBJECTIVES OF PM/HRM

1. PERSONAL

a) It is concerned with the optimum utilization of the human resources within

an organization.
b) It is concerned with the creation of conditions in which each employee is
encouraged to make his best possible contribution to the effective working
of the undertaking.
c) It is also concerned with the development of the sense of mutual respect
and trust between management and workers through sound relations.
d) It endeavors to increase the productive efficiency to the workers through
training, guidance and counseling.
e) It tries to raise the morale of the employee.

2. ORGANIZATIONAL
 a) To recognize the role of HRM in bringing about organizational effectiveness.
b) HRM is not an end itself. It is only a means to assist the organization with its
primary objectives.
c) Simply stated, the department exists to serve the rest of the organization.

3. SOCIETAL

a) To be ethically and socially responsible to the needs and challenges of the

society while minimizing the negative impact of such demands upon the
organization.
b) The failure of organizations to use their resources for the society’s benefit
in ethical way may lead to restrictions.
c) For example, the society may limit HR decisions through laws that enforce
reservation in hiring and laws that address discrimination, safety or other
such areas of social concern.
WHY IS HRM IMPORTANT?

1. Service is delivered by people.

2. Low quality HR leads to low quality customer service.
3. In the 21st century effective knowledge management translates into
competitive advantage and profits.
4. Knowledge comes from a firm’s people.

WHAT IS UNIQUE ABOUT HRM?

HR is multidisciplinary:

1. It applies the disciplines of Economics (wages, markets, resources),

Psychology (motivation, satisfaction), Sociology (organization structure,
culture) and Law (Maternity Benefit Act, Min. Wage Act, Factories Act, IRO,
etc.).

2. HR is embedded within the work of all managers, and most individual

contributors due to the need of managing people (subordinates, peers and
superiors) as well as teams to get things done.

WHO COMPLETES HR TASKS?

1. Line Managers
2. Human Resource Managers
3. Shared Service Centers
4. Outsourcing Firms
5. Technology interfaces

KEY ACTIVITIES OF HUMAN RESOURCES

1. Human Resource Planning

2. Human Resource Policies
3. Salary and Benefit Administration
4. Human Rights and Labour Laws
5. Recruitment, Selection and Orientation
6. Performance Management
7. Training and Staff Development
8. Communications and Counselling

RESPONSIBILITY FOR HRM

1. The responsibility for human resource management activities rest with each
MANAGER.
2. If a MANAGER does not accept this responsibility then HR activities will only
partially get done.
3. HR department provides strategies, systems, tools and support to Managers
to ensure effective staff management!

LINE vs. STAFF AUTHORITY

1. Authority: The right to make decisions, direct other’s work, and give orders.
2. Line manager: A manager who is authorized to direct the work of
subordinates and responsible for accomplishing the organization’s goals.
3. Staff manager: A manager who assists and advises line managers. HR
managers are generally staff managers.

PROSPECTS OF HR MANAGER
1. “Personnel are the fast track to the top” and “Human Resource Director are
the new corporate heroes”.
2. It is said that in the years to come, a tour of duty in the Human Resource
Department will be mandatory for any executive in Bangladesh who aims to
be Chairman or Chief Executive Officer.
OUTSTANDING PERSONAL QUALITIES

1. A lively intelligence
a. The personal function demands a marked degree of analytical ability
and great resourcefulness. Good judgment, intellectual honesty,
alertness and keen perception are also ranked high among the
desirable mental traits.

2. A high degree of freedom from bias

a. To be truly effective, personnel management requires of its
practitioners an impartial, objective attitude toward management,
toward the workers & toward the society. The personnel managers’
plans, his decisions, his counsel – all must be dictated by the total
requirements of the situations. This implies sincerity, fearlessness,
and above all honesty.

3. A compelling Manner
a. The ability to inspire confidence, to encourage friendliness and to
elicit cooperation and enthusiasm is invaluable to the pioneering
effort that will be required for him.
4. Understanding the People
a. Such understanding includes appreciation of human wants and
aspirations, of individual differences in aptitudes and abilities. It
manifests itself in an increasing effort to provide others with the
opportunities, the encouragement and the motivation of their
development.

5. A good Executive
a. He must be organization minded and know how to delegate
assignments. Since personnel departments themselves are often
 complex and need a strong executive at the top, his management
ability must compare favorably with that of the other top executives
in the company.

6. A good salesman
a. Not the over aggressive type, but the kind who can sell sound
management ideas to employees and interpret labor’s ideas to the
employer. Here a good sense of values is all-important.
7. A good Negotiator
a. He should be able to conduct meetings between management and
labor without letting the arguments come to a boil, able to maintain
his own equilibrium and get a good night's sleep even after spending
an entire day at the conference table with the most arrogant of union
leaders.

8. He must be a Good Technician

a. Able to analyze details concerning labor laws, interpretations and
executive orders. Incidentally, he must also have the faculty of
adapting himself gracefully to changed conditions.
9. He must have the quality which President Roosevelt once described as a
“Passion for anonymity”. This means that he will not look for opportunities
to claim credit, that he will enjoy engineering a deal for which someone
else gets praise, and that he will consider the line supervisors the real
personnel managers of the company and constantly try to build them up as
such.
10.He must be fully conversant with existing labor laws and regulations. He
must also know the language of the people.

END OF MIDTERM
Human Resource Management
 1. Recruitment

Recruitment

 The process by which a job vacancy is identified and potential employees

are notified.

 The nature of the recruitment process is regulated and subject to

employment law.

 Main forms of recruitment through advertising in newspapers, magazines,

trade papers and internal vacancy lists.

 Job description – outline of the role of the job holder

 Person specification – outline of the skills and qualities required of the post
holder
  Applicants may demonstrate their suitability through application form,
letter or curriculum vitae (CV)

2. Selection

Selection

 The process of assessing candidates and appointing a post holder

 Applicants short listed – most suitable candidates selected

 Selection process – varies according to organisation:

 Interview – most common method

 Psychometric testing – assessing the personality of the applicants – will

they fit in?
  Aptitude testing – assessing the skills of applicants

 In-tray exercise – activity based around what the applicant will be doing,
e.g. writing a letter to a disgruntled customer

 Presentation – looking for different skills as well as the ideas of the

candidate

3. Employment Legislation

Employment Legislation

 Increasingly important aspect of the HRM role

 Wide range of areas for attention

 Adds to the cost of the business

A) Discrimination

 Crucial aspects of employment legislation:

 Race
  Gender

 Disability

4. Discipline

Discipline

 Firms cannot just ‘sack’ workers

 Wide range of procedures and steps in dealing with workplace conflict

 Informal meetings

 Formal meetings

 Verbal warnings

 Written warnings

 Grievance procedures

 Working with external agencies

 5. Development

Development

 Developing the employee can be regarded as investing in a valuable asset

 A source of motivation

 A source of helping the employee fulfil potential

 6. Training

Training

 Similar to development:

 Provides new skills for the employee

 Keeps the employee up to date with changes in the field

 Aims to improve efficiency

 Can be external or ‘in-house’

 7. Rewards Systems

Rewards Systems

 The system of pay and benefits used by the firm to reward workers

 Money not the only method

 Fringe benefits

 Flexibility at work

 Holidays, etc.
 8. Trade Unions

Trade Unions

 Importance of building relationships with employee representatives

 Role of Trade Unions has changed

 Importance of consultation and negotiation and working with trade unions

 Contributes to smooth change management and leadership

 9. Productivity

Productivity

 Measuring performance:

 How to value the workers contribution

 Difficulty in measuring some types of output – especially in the service

industry

 Appraisal

 Meant to be non-judgmental

 Involves the worker and a nominated appraiser

 Agreeing strengths, weaknesses and ways forward

to help both employee and organisation
Chapter 4 HUMAN ESOURCES MANAGEMENT

HUMAN RESOURCES MANAGEMENT IS ALL ABOUT:

Individual Performance – Outputs of a high quality and quantity

HR Predictions for: Definition of jobs

 Organizations will not pay for the value of the job but for the value of the person

 Versatility will be a key factor in determining employee value

 Compensation systems will be linked to business outcomes

 All jobs will require higher levels of computer skills

 Positions will be organized in teams focused on a task

Positions will be defined by competencies needed to be performed (Grobler et al, 2006

HRM Issues and Challenges

 Worker productivity

 Quality improvement

 Downsizing, delayering, derecruiting

 Changing workforce

 Globalization

 Impact of legislation

 Quality of working life (QWL)

 Technology and training

Human Resource Strategy

 A strategic approach to HRM:

Recognises impact of external environment

Recognises impact of competition

Recognises impact of labour market dynamics a long range focus (3 – 5 years)

Focuses on choice and decision-making considers all personnel is integrated with overall
corporate strategy

Strategic Human Resource Management

 Strategic Human Resource Management

– The process by which managers design the components of a human resource

system to be consistent with each other, with other elements of organizational
structure, and with the organization’s strategy and goals.

– The objective of strategic HRM is the development of an HRM system that

enhances the organization’s efficiency, quality, innovation, and responsiveness
to customers.
Human Resource Planning

 HRP as part of strategic organisational planning

 The impact of good HRP

 Steps in the planning process

Forecasting demand

Estimating supply – skills inventories

Recruitment and Selection

 Factors that influence recruitment

 Recruitment sources

 Recruitment methods

 Legal considerations

 Factors that influence the selection decision

 Selection Process

 Employment tests

 Checks

Training and Development

 Training

 Development

 Strategic Training Approaches:

Traditional training vs Virtual Training

3 principles of VT:

 Employees are responsible for their growth

 Most powerful learning takes place on the job
 Improved performance hinges on the relationship between manager and employee
Performance Management

 Purpose of Performance Management

 Performance Evaluation

 Legal considerations

 Performance management and QA:

“If the system itself prevents good work, individuals will not be able to improve their
performance, even if they want to” (Deming)

Compensation

 Why compensation?

 Factors influencing compensation

 Elements of total compensation

 Job hierarchies – evaluation systems

 Tenets of dynamic compensation:

Pay is a people issue

Pay is a communication tool

Pay must support vision, values, strategies

Pay must be aligned to a work culture

No single pay strategy is right for everyone

Employee Relations

 Addresses the employer-employee relationship

 Three parties in this relationship-

a) Directly – employee and employer

b) Indirectly – the state

 Rights of workers

 Rights of management
Career Planning

 By the individual:

An individual sets career goals and identifies the means to achieve them

 By the organisation: (HR Planning)

Recruitment and Selection

Grooming people for posts

Career Development

CHAPTER 5

Definition 1 – Integration

HRM is a series of integrated decisions that form the employment relationships; their quality
contributes to the ability of the organizations and the employees to achieve their objectives

Definition 2- Influencing

 HRM is concerned with the people dimensions management. Since every organization is
made up of people ,acquiring their services, developing their skills , motivating them to
higher levels of performance and ensuring that they continue to maintain their
commitment to the organization are essential to achieving organizational objectives.

This is true regardless of the type of the organization- govt, business education, and health,
recreational or social action

Definition 3 Applicability

• HRM is planning, organizing directing and controlling of the procurement ,

development, compensation , integration, maintenance, and separation of human
resources to the end that individual, organizational and social objectives are
accomplished.

Core Elements of HRM

Organizations ------People ------ Management

Meaning of HRM

It is concerned with management of people from Recruitment to Retirement

To select right person, at the right place for the right job.

Difference between Personnel Mgmt & HRM

HRM PM

People as important assets who People as a tool behavior of whom could be

could be used for the benefit of manipulated for benefit of the organization and
organization and society replaced when worn out ,this department was
not treated with respect

Aiming at policies and One way traffic

promoting mutuality – goals,
respect, rewards &
responsibilities

In turn better economic Emphasis on only performance

performance and greater HRD

A part of strategic business Not considered a part

Eg –Banks every unit of is a profit making

center

New add-ons like training programmes could A routine activity meant to hire new
be invoked in HRM employees having fixed grades & to
maintain personnel records.
SCOPE OF HRM
HRM starts from the employees entry till the exit of the same and hence covers everything
under the sun.

Activities:

 HR Planning

 Job Analysis – JD & JS

 Job Design eg- job rotation and job enrichment

 Employees Hiring -- Recruitment & Selection

 Orientation & Placement, Training & Development eg: team work practiced, Individual
practice.

 Employee and Executive Remuneration Eg- some prefer low base of salary & individual
negotiation , some prefer collective bargaining

 Employee Maintenance – Motivation, Communication.

 Performance Appraisals, Job Evaluation Eg- Different kind of appraisal systems.

 Industrial Relations – Welfare, Safety& Health eg: OSHA,

Role of HRM

 Advisory Role

 Personnel Policies

 Personnel Procedures

 Functional Role

 Service Role
HR Managers Today Future

Humanitarian Role Enhancement of Human & Non Human

Resources

Counselor Maximization of people to achieve

Organizational goals

Mediator Synergizing IT with HR

Spokesman Managing diverse workforce

Problem Solver

Change Agent

Managerial functions of HRM

Planning- plan & research about wage trends, labor market etc
Organizing- manpower and resources
Staffing- recruitment & selection
Directing- issuance of orders and instructions to follow plan of action
Controlling – to regulate the activities

Operational Functions of HRM

Procurement- planning , Recruitment & Selection , Induction & Placement
Development – T & D, Career Planning & Counseling
Compensation- Wage & Salary administration
Integration:
Maintenance – improving work conditions, retentions
Separation - caused by resignations, retirement, death, medical reasons etc

CHALLENGES OF HRM IN ECONOMY

 World becoming a Global Village eg-GE, ranbaxy, Glaxo, TCS

 Corporate Re-organizations e.g- Air India & BA,

 New Organizational Structures- Virtual, boundary less, flat, Eg: soaps,

edible oils etc. Forward & Backward integration.

 Diverse workforce- eg. Teenagers, Nuclear families, working mothers etc.

  Change in Employee Expectations- more of benefits

 People Focus – concept of flexi time, work environment etc.

 Employee Engagement

 Attrition

Approaches to HRM / Interdisciplinary Approaches

Line & Staff Relationships in Organizations

Relationship which the managers in an organization deal with one another are classified into
two categories
Line and staff

Line Relationship - authority and responsibility

Receiving and giving instructions or orders. Important as one gets work done through people.

Staff Relationship –giving and taking of advice

Organization of Personnel Department

1. Its concerned with the relationships of management to employees

2. Its concerned with the relationships of employees to employees in all matter

3. Personnel department is staff department and has a structure of line type

4. Organization of personnel function depends on the size, structure, range and depth of
actions, needs, capacities, nature and location of organization.

5. The degree to which the organization takes personnel function seriously

Scale of operations large – a separate department is essential

Responsibility of Personnel Specialist

 Human Resource Planning

 Formulation of Programs & Procedures

 Employee Health & Safety Programs

 Training and Development of Personnel

 Wage & Salary Administration

 Good Labor Management Relations – Grievance

handling

 Employee Benefit Programs

 Personnel Research

 Personnel Audit & Review Work

Summary

HRM is a tool that helps managers to plan, recruit, select, train, develop, remunerate, motivate
and make maximum utilization of human and non human resources for the organization and
society at large.

“One machine can do the work of fifty ordinary men. No machine can do the work of one
extraordinary man.”- Elbert Hubbard

CHAPTER 6

Human Resources (HR) Management

 Human Resources (HR) Management

◦ The management function devoted to acquiring, training, appraising, and

compensating employees.

 Strategic Human Resource Management

◦ The linking of the human resource function with the company’s strategies to
accomplish that strategy.

The Basic HR Process

Personnel Planning

 The process by which management ensures it has the right number and kinds of people
in the right places at the right time, who are capable of helping the organization achieve
its goals

 Steps in the planning process:

1. Assessing current human resources

2. Assessing future human resources needs and developing a program to meet

those needs

Writing Job Descriptions And Recruiting Employees

 Staffing

◦ Filling a firm’s open positions; also, the personnel process that includes six steps:

 job analysis

 personnel planning

 recruiting

 interviewing

 testing and selection

 training and development

Job Analysis

 Job Analysis

◦ The procedure used to determine the duties of particular jobs and the kinds of
people (in terms of skills and experience) who should be hired for them.

 Job Specification

◦ The human qualifications in terms of traits, skills, and experiences required to

accomplish a job.

◦
  Job Description

◦ A document that identifies a particular job, provides a brief job summary, and
lists specific responsibilities and duties of the job.

Checklist
Job Analysis Questions

 What is the job being performed?

 What are the major duties of your position? What exactly do you do?

 What are the education, experience, skill, and [where applicable] certification and
licensing requirements?

 In what activities do you participate now?

 What are the job’s responsibilities and duties?

 What are the basic accountabilities or performance standards that typify your work?

 What are your responsibilities?

 What are the environmental and working conditions involved?

 What are the job’s physical demands? Its emotional and mental demands?

 What are the health and safety conditions?

 Does the job expose you to any hazards or unusual working conditions?

Employee Recruiting

 Recruiting

◦ Attracting a pool of viable job applicants.

Sources of Recruits

 Current employees

 Advertising

 The Internet

 Employment agencies

◦ Public

◦ Private

 Contingent workers and temporary help agencies

 Executive recruiters

 Employee referrals

 Walk-ins

 College recruiting

 Recruiting for a diverse workforce

Testing for Employee Selection

 Uses of Tests

◦ Reliability (repeatability of test results)

◦ Validity (measures what it purports to measure)

 Types of Tests

◦ Intelligence

◦ Mechanical comprehension

◦ Personality and interests

◦ Ability/achievement (current capabilities/knowledge)

◦ Aptitude (performance potential)

◦ Management assessment center

Conducting Effective Interviews

 Plan the interview

 Structure the interview

 Establish rapport

 Ask effective questions

 Delay your decision

 Close the interview

Guidelines for Interviewees

 Prepare

 Make a good first impression

 Uncover the interviewer’s needs

 Relate your answers to the interviewer’s needs

 Think before answering

 Watch your nonverbal behavior

Potential Biases in Interviews

 Prior knowledge about the applicant will bias the interviewer’s evaluation

 The interviewer tends to hold a stereotype of what represents a good applicant

 The interviewer tends to favor applicants who share his or her own attitudes

 The order in which applicants are interviewed will influence evaluations

 The order in which information is elicited during the interview will influence evaluations

 Negative information is given unduly high weight

 The interviewer may make a decision concerning the applicant’s suitability within the
first four or five minutes of the interview

 The interviewer may forget much of the interview’s content within minutes after its
conclusion
  The interview is most valid in determining an applicant’s intelligence, level of
motivation, and interpersonal skills

 Structured and well-organized interviews are more reliable than unstructured and
unorganized ones

Orienting Employees

 Orientation

◦ The introduction of a new employee to the job and the organization

 Objectives of orientation

◦ To reduce the initial anxiety all new employees feel as they begin a new job

◦ To familiarize new employees with the job, the work unit, and the organization
as a whole

◦ To facilitate the outsider–insider transition

Training Employees

 Training Program

◦ The process of providing new employees with information they need to do their
jobs satisfactorily.

 Training Program Steps

◦ Needs analysis

◦ Instructional design

◦ Validation

◦ Implementation

◦ Evaluation and follow-up

Employee Training

 What and Why?

◦ Changing skills, knowledge, attitudes, or behavior.

 ◦ Changing what employees know, how they work; or their attitudes toward their
jobs, co-workers, managers, and the organization

 On-the-Job Training Methods

◦ Job rotation

◦ Understudy assignments

 Off-the-Job Training Methods

◦ Classroom lectures

◦ Films and videos

◦ Simulation exercises

◦ Vestibule training

Performance Management and Measurement

 Performance management system

◦ A process of establishing performance standards and evaluating performance in

order to arrive at objective human resource decisions and to provide
documentation to support personnel actions

 Adjective rating scales

◦ Rating an individual on each job performance factor on an incremental scale

 360-degree appraisal

◦ An appraisal device that seeks feedback from a variety of sources for the person
being rated

 Group-order ranking

◦ Requires the evaluator to place employees into a particular classification such as

“top fifth” or “second fifth”

 Individual ranking approach

◦ Requires the evaluator merely to list the employees in order from highest to
lowest
  Paired comparison approach

◦ Each employee is compared with every other employee in the comparison group
and rated as either the superior or weaker member of the pair

◦ Each employee is assigned a summary ranking based on the number of superior

scores achieved

 MBO

◦ Employees are evaluated by how well they accomplish a specific set of objectives
determined to be critical in the successful completion of their jobs

Checklist
How to Conduct the Appraisal Interview

 Prepare for the interview.

 Be direct and specific.

 Don’t get personal.

 Encourage the person to talk.

 Don’t tiptoe around.

When Performance Falls Short

 Performance impediments

◦ Mismatched skills

◦ Inadequate training

◦ Employee’s personal problems

 Discipline

◦ Actions taken by a manager to enforce an organization’s standards and

regulations

 Employee counseling

◦ A process designed to help employees overcome performance-related problems

Compensation And Benefits

 Compensation administration

◦ Determining a cost-effective pay structure that will attract and retain competent
employees, provide an incentive for them to work hard, and ensure that pay
levels will be perceived as fair

 Factors influencing pay levels

◦ Employee’s job

◦ Kind of business

◦ Environment surrounding the job

◦ Geographic location

◦ Employee performance levels and seniority

Types of Employee Benefits

 Social Security

 Workers’ and unemployment compensations

 Paid time off from work

 Life and disability insurance

 Retirement programs

 Health insurance

 Non-financial rewards designed to enrich employees’ lives

Discipline and Grievances

 FRACT Model

◦ A multi-step procedure for assessing the need for discipline:

 Get the Facts

 Find the Reason

 Audit the records

 Pinpoint Consequences

 Identify the Type of infraction.

 Discipline without Punishment

◦ A multistage disciplinary technique that uses oral reminders of the violated rule;
then written reminders; followed by a paid one-day leave; and finally, if the
behavior is not corrected, dismissal.

 Grievance

◦ A complaint that an employee

lodges against an employer,
usually one regarding wages,
hours, or some condition of
employment, such as unfair
supervisory behavior.

Checklist
Guidelines for Disciplining an Employee

 Make sure the evidence supports the charge.

 Protect the employee’s due process rights.

 Warn the employee of the disciplinary consequences.

 The rule allegedly violated should be “reasonably related” to the efficient and safe operation of
the work environment.

 Fairly and adequately investigate the matter.

 Be sure there is substantial evidence of misconduct.

  Apply rules, orders, or penalties even-handedly.

 Make sure the penalty is reasonably related to the misconduct and to the employee’s past work
history.

 Maintain the employee’s right to counsel.

 Don’t rob your subordinate of his or her dignity.

 Remember that the burden of proof is on you.

 Get the facts. Don’t base your decision on hearsay or “general impression.”

 Don’t act while angry.

Affirmative Action

 Affirmative Action

◦ A legislated requirement that employers make an extra effort to hire and promote those
in a protected (women or minority) group.

Improving Workforce Diversity

 Widen the recruiting net to broaden the pool of applicants

 Ensure the selection process is nondiscriminatory

 Assist new employees in assimilating into the firm’s culture

 Conduct specialized orientations and workshops for new employees

Diversity as Policy

 What do these statistics point out about the current state of diversity in our organizations?

 Have you seen evidence of this in your own work?

 Why is marketing seen as so important in encouraging diversity? Do you agree?

Labor–Management Relations

 Norris–LaGuardia Act

 Guarantees each employee the right to bargain with employers for union benefits.

 Wagner Act

 Outlaws unfair labor practices such as employers interfering with, restraining, or

coercing employees who are exercising their legally sanctioned rights of organizing
themselves into a union.

 The Taft–Hartley Act

 Prohibits unfair labor practices by unions against employers (like refusing to bargain
with the employer).

 The Landrum-Griffin Act

 Protects union members from unfair practices perpetrated against them by their unions.

Layoffs and Downsizing

 Layoff-survivor sickness

◦ The set of attitudes, perceptions, and behaviors of employees who remain after
involuntary staff reductions

 Dealing with the “Survivor Syndrome”

◦ Provide opportunities for employees to talk to counselors about their guilt, anger, and
anxiety

◦ Provide group discussions for the survivors to vent their feelings

◦ Implement employee participation programs such as empowerment and self-managed

work teams

END