Human Resources Management

Amali Wijekoon Dept. of MOT

Learning outcomes
At the end of the session you should be able to: Understand what is human resource management and its evolution Identify major areas / functions in HRM.

Amali Wijekoon

Introduction
Organizational resources
Physical resources Financial resources Marketing capability Human resources

Managing these resources are vital

Amali Wijekoon

Defining HRM
The process of acquiring, training, appraising, and compensating employees and of attending to their labor relations, health and safety, and fairness concerns
Gary Dessler

Enjoy the video

Amali Wijekoon

Evolution of HRM
Personnel management 1950 Human resources management 1960 Strategic human resource management 1970 HR influenced by Japanese management 1980 HR influenced by IT 1990 HR linked to artificial intelligence and expert systems 2000
Amali Wijekoon

Major areas
Planning for organizations, jobs and people Acquiring human resources Building individual and organizational performance Rewarding employees Maintaining human resources International human resources management
Amali Wijekoon 6

Companys Strategic Plan

Develop HR plans & Job descriptions

Recruit candidates

Select employees

Train employees

Appraise employees

Reward employees

Manage HR in global firms

Conform to ethical standards, safety and other HR related law

Amali Wijekoon

Trends shaping HRM

Trends Globalization Increased competition Technological innovations High-tech jobs More service jobs Knowledge work An aging workforce Economic turbulences So companies must be More competitive Faster and more responsive More cost-effective Human capital oriented Quality conscious Empowered teams Scientific decision making HRM needs to Focus more on big picture Create high performance work systems Help employer better manage challenging times Manage ethically Formulate actions based on evidence

Amali Wijekoon

1. HR planning
Concerned with the flow of people
Into the organization Through the organization Out of the organization

Ensure that the organization has the right mix of people

Number of people (quantity) Competencies of people (quality)
Amali Wijekoon 9

HR planning process
Gathering pertinent information
Internal factors External factors

Forecasting the demand for HR

How many people What type of people

Forecasting the supply of HR

Internal supply External supply
Amali Wijekoon 10

HR planning process contd

Planning & conducting HR programs
Shortages Surplus

Reflective learning
PDCA cycle

Amali Wijekoon

11

Shortage of HR
Hire new people Outsourcing Automation Enhance the job role of existing employees Re-employment of retired staff Subcontracting

Amali Wijekoon

12

Surplus of HR
Freezing of hiring Voluntary retirement/retrenchment scheme (VRS) Layoffs Absorb excess HR to booming areas in the organization

Amali Wijekoon

13

Job analysis
The procedure for determining the duties and skill requirements of a job and the kind of a person who should be hired for it
Job description: a list of what the job entails Job specification: what kind of a person to hire

Amali Wijekoon

14

Job description
Job profile Includes
Job title Department or section Duties and responsibilities Reporting relationships
Supervisors Subordinates

Working conditions Accountability

Amali Wijekoon 15

Job specification
Competency profile & Personality profile Includes
Formal education Work experience Traits / characteristics

Amali Wijekoon

16

2. Employee resourcing
Also known as staffing / hiring Key aspects
Recruitment Selection Hiring Induction

Amali Wijekoon

17

Recruitment & selection process

HR planning Recruiting build a pool of candidates Applicants complete application forms Use selection tools to screen out applicants Decide who to make an offer to

Amali Wijekoon

18

Recruitment
Process by which organizations locate/find and attract individuals to fill job vacancies Develop a pool of applicants Internal recruiting vs. external recruiting

Amali Wijekoon

19

Selection
Select the best candidate for the job from the pool of applicants Selection methods
Review applications Selection tests Assessment centers Interviews Background and reference checks Physical examinations
Amali Wijekoon 20

Hiring
All activities involving offering the job in the organization Appointment letters Some may refuse the employment Come into the agreement

Amali Wijekoon

21

Induction
The process of receiving and welcoming new employees Aims of induction
Familiar to workplace Favourable attitudes towards organization Obtain effective output Reduce employees leaving quickly

Amali Wijekoon

22

3. Human Resources Development

Training
The process of teaching new or current employees the basic skills they need to perform their jobs Focus on acquiring knowledge, skills and attitudes

Development
Focus on enabling an individual to take up a future role within the organization

Amali Wijekoon

23

Training process
Training needs analysis
Identify specific knowledge and skills the job requires and compare these with the employees knowledge and skills

Design the training program

Formulate training objectives, program contents and budgets

Amali Wijekoon

24

Training process contd

Implement the program
Conduct the training program

Evaluation
Assess the programs success

Amali Wijekoon

25

On the job training

Learn the job by actually doing it On the job process
Prepare the learner Present the operation Do a tryout Follow up

Amali Wijekoon

26

Amali Wijekoon

27

On the job training methods

Apprenticeship training Informal learning Audiovisual based learning Job instruction training Electronic performance support systems (EPSS) Job rotation Coaching
Amali Wijekoon 28

Off the job training methods

The case study method Management games Outside seminars University related programs Role plays Outbound training

Amali Wijekoon

29

4. Performance Evaluation
Performance appraisal
Evaluating an employees current and or past performance relative to his or her performance standards

Steps
Setting work standards / performance criteria Assessing the employees actual performance relative to those standards Providing feedback
Amali Wijekoon 30

Why appraise performance?

Salary advancements and promotions are linked with performance appraisals Develop a plan to correct deficiencies or to reinforce the things the employee does right Useful for career planning process

Amali Wijekoon

31

Appraisal types/objectives
Performance is satisfactory Promotable Performance is satisfactory Not promotable Performance is unsatisfactory Correctable Performance is unsatisfactory Uncorrectable
Amali Wijekoon

Make development plans

Maintain performance

Take corrective actions

Tolerate or dismiss the person

32

SMART objectives
Specific clear, unambiguous, understandable Measurable in terms of quantity, quality, time or money Achievable challenging but within the reach of a competent and committed person Relevant aligned to organizational objectives Time frame to be completed within an agreed time frame
Amali Wijekoon 33

Who should do the appraising?

The immediate supervisor Peer appraisals Rating committees Self rating Appraisals by subordinates 360-degree feedback
Supervisors, peers, subordinates and customers

Amali Wijekoon

34

5. Reward Management
Reward
All forms of paying going to employees and arising from their employment

Components of a reward scheme

Financial rewards Non financial rewards Employee benefits

Amali Wijekoon

35

Motivation & incentives

Amali Wijekoon

36

Financial rewards
Wages Salaries Incentives Commissions Bonuses

Amali Wijekoon

37

Non financial rewards

Employee recognition Gifts, cash rewards Merchandise incentives Training programs Work/life balance Group / individual travel

Amali Wijekoon

38

Employee benefits
Supplemental pay benefits
E.g. sick leave, sabbatical leave, maternity leave, casual leave, vacations/holidays

Insurance benefits Retirement benefits Employee services

E.g. day-care facilities

Amali Wijekoon

39

6. Grievance Handling
Any genuine or imaginary feeling of dissatisfaction or injustice which an employee experiences about his job and its nature, about the management policies and procedures can result in
frustration, dissatisfaction, low productivity, lack of interest in work, absenteeism
Amali Wijekoon 40

Sources
Improper working conditions such as strict production standards, unsafe workplace, bad relation with managers, etc. Irrational management policies such as overtime, transfers, demotions, inappropriate salary structure, etc. Violation of organizational rules and practices

Amali Wijekoon

41

Manage
Quick action Acknowledge grievance Gathering facts Examine the causes of grievance Decision Execution and review

Amali Wijekoon

42

Key HR challenges in Sri Lanka

Inability to find competent and talented people at entry level and very senior level Managing expectations of school levers and fresh graduates Skill mismatch of GCE A/L passed people and graduates with the requirements of the private sector Brain drain Shortage of supply of labor for some selected industries
Amali Wijekoon 43

Business ethics
The principles of conduct governing an individual or a group; specially, the standards you use decide what your conduct should be Ethical decisions have two aspects
Normative judgment Morality / community standards

Profession bodies have their Code of ethics

http://www.iesl.lk/iesl_member_area_MemCls&G rds_OF_CodeOfEthics.html
Amali Wijekoon 44

Ethical decision making approaches

Utilitarian approach
The ethical action is the one that produces the greatest good and does the least harm for all stakeholders e.g. clients, colleagues, the community

Rights approach
The ethical action is the one that best protects and respects the moral rights of those affected

Amali Wijekoon

45

Ethical decision making approaches

Fairness/justice approach
Ethical actions should treat all human beings equally, or if unequally, then fairly based on some standard that is defensible

Common good approach

This approach suggests that the interactions with your community are the basis of ethical reasoning Respect and compassion for all others, especially the vulnerable, are requirements of such reasoning
Amali Wijekoon 46

Ethical decision making approaches

Virtue approach
Virtues are dispositions and habits that enable us to act according to the highest potential of our character Honesty, courage, compassion, generosity, tolerance, love, fidelity, integrity, fairness, selfcontrol, and prudence are all examples of virtues Virtue ethics asks of any action, "What kind of person will I become if I do this?"
Amali Wijekoon 47

Amali Wijekoon

48