“Some people talk in

their sleep, lecturers talk

while other people
sleep”
 HRM

Activities undertaken to attract, develop and

maintain an effective workforce within an
Organization
Human Resource Management

Management of the organization’s

employees; consists of all the activities
required to enhance the effectiveness
of an organization’s workforce in
achieving organizational goals and
objectives.
 HRM

 All managers are HR managers

 Manager pay attention to development & satisfaction
subordinates

 Employees are viewed as assets

 Employees, not buildings & machinery give a
Co. a competitive advantage
 HRM is a matching process
 integrating Org Goals with employees needs
 Strategic Goals of HRM

•HR Planning
•HRM Forecasting Tech
Attract •Recruitment
•Selecting

•T&D
Develop
•Performance Appraisal

•Wage & Salary

•Benefits
Maintain an Effective Workforce •Labor Relation
•Termination
 Goals are to attract an effective workforce to
the Org, develop the workforce to its
potential & maintain the workforce over the
long term
 How do we achieve these goals
 what is the difference between
HR specialists & HR generalists
 HR specialists : Focuses on one of the HRM
areas, such as recruitment of employees or
administration of wage, benefit programs
 HR generalists : have responsibility in more
than one HRM area
Environmental Influences On HRM

Mergers & Acquisitions

Downsizing
Competitive Strategy International Operation

EEO
Federal Legislation
Discrimination

Globalization, Workforce Diversity

Social Trends
Labor supply functions,
Employment at will, Unionization
 Downsizing : the systematic reduction in the number of
managers & employees to make a company more cost
efficient & competitive
 EEO: the equal right of all citizens to the opportunity to
obtain employment regardless of their gender, age, race,
country of origin, religion, color, disabilities
 Discrimination : the hiring or promoting of applicants based
on criteria that are not job relevant
 Affirmative Action: A policy requiring employers to take
positive steps to guarantee equal employment opportunities
for people with in protected groups
 Competitive Strategy

 Org competitive strategy include mergers &

acquisition, downsizing to increase
efficiency, internal operations or the
acquisition of automated production
technology
 These strategic decisions determine the
demand for skills & employees
 Federal Legislation

 Federal laws have been passed to ensure EEO

 The point of the laws is to stop discriminatory
practices that are unfair to specific groups & to
define enforcement agencies for these laws
 EEO legislation attempts to balance pay given to
men & women; provide employment opportunities
without regard to race, religion, national origin:
ensure fair treatment for employees of all ages;
avoid discrimination against disable individuals
 Trends In Society

 Trends that surface raise new problems for staffing

the firm include
 Globalization
 Workforce Diversity
 Labor Supply Fluctuations
 Employee at Will
 Employee Flexibility
 Unionization
 Globalization

 As companies of every size enter the global

market place and expand operations, HR
executives must deal with such staffing
concerns as whether to send expatriate
managers or hire local managers for foreign
operations
 Workforce Diversity

 The ethnic & gender makeup of the people

 Diversity ?
 Diversity also brings creativity to the Org
How ?

 Women Seeking employment

 Diversity through Immigration
 Labor Supply Fluctuations

 Changing demographic & economic

conditions affect labor supply
 Labor shortages
 Political Conditions of a country can increase
or decrease the demand for labor

War
• labor boosts in ammunition & fire MMA banning functions at public
arms industry places / Catering firms suffered
 Employment at Will

 Rule traditionally permitted an employer to fire

an employee for just cause or even no cause
 Employers no longer enjoy the undisputed right
to fire employees Termination accepted by the
courts when employers can
show employee incompetence
 Employees filing lawsuits or changing business
requirements
 Employers avoiding terms such as Permanent
Employment ….. Why?
 Employee Flexibility

 Obtain quality employees & the same time

reduce excess employee costs so that firms
can remain competitive in the global
marketplace

• Making greater use of P/T • Reduce costs without having to

employees lay off valued employees
• Contingent workforce
 Unionization

 Unions exist to represent workers in the ORG

 Employee & labor sign a Labor agreement

Compensation, hours, WC

 Unions can be a positive force, negative force ?

HOW ?
 Attracting An Effective Workforce

 (a) HR Planning : forecasting of HR needs & the

projected matching of individuals with expected job
vacancies
 HR planning begins with several questions
 what new technologies are emerging & how will these affect the work
system?
 what is the volume of the business likely to be in the next 10 yrs
 What is the turnover rate & how much if any is avoidable ?

• Answers to these questions help define the direction

for the Org HRM strategy
The activities managers engage in to forecast their current and future needs
for Human resources
 (b) HRM Forecasting Techniques
1.1. Informal
Informal&&Instant
Instantdecisions
decisions
2.2. Formal expert survey
Formal expert survey
 Expert Forecasts 3.3. NGT
NGT
4.4. Delphi
Delphi

 Trend Projection 1.1. Extrapolation

Extrapolation
2.2. Indexation
Indexation
3.3. Statistical
Statisticalanalysis
analysis

 Other forecasting
1.1. Budget
Budget&&Planning
PlanningAnalysis
Analysis
methods 2.2. New-Venture analysis
New-Venture analysis
3.3. Computer
Computermodel
model
 © Recruiting

 The process of attracting individuals to apply for jobs that are

open/ finding & attaining capable applicant for employment
 Internal Recruitment : considering current employees as
applicants for high level jobs in the Org
Benefits : less costly, generates higher employee commitment,
development & satisfaction- offers opportunities for CD to
employees rather than outsiders
 External Recruitment: Getting people from outside the Org to
apply for jobs
Applicants are provided by variety of sources: newspaper,
advertising, private employment agencies, referrals (cheapest &
reliable method)
 Realistic Job Preview
shows the employee job & the job setting before the hiring
decision is made

 An honest assessment of the advantages &

disadvantages of a job & organization
 enhance employee satisfaction and reduce turnover
 without RJPs, unmet expectations may cause
initial job dissatisfaction and increased turnover
 Medical vaccination –natural resistance to that disease
 Selecting

 Next step is to select desired employees from

the pool of recruited applicants / Series of
steps used to decide which recruit should be hired
 SKA match with required job requirement
 Job descriptions

 list of duties as well as desirable

qualifications for a particular job
 HR professionals or Line managers should
read the JD before they review applications
 Job summary
 Job duties
 Working Conditions
 Selection devices

 Used for assessing applicant qualifications

 Use a combination of these devices to obtain a
valid prediction of employee job performance
 Application form
 Interview
 Paper pencil test
 Assessment center
 Application Form A device for collection info about an applicants
Education, previous job experience & other
background
characteristics

 Interview Serves as two way communication

• not a valid predictor of job performance

A written test designed to measure a particular

attribute
 Paper & Pencil test Such as intelligence or aptitude

Technique for selecting individuals with high

managerial potential based on their performance
on a series of Simulated managerial tasks
 Assessment Center • In basket exercise: to play role of manager
 Develop An Effective Workforce

Training & development

 planned effort by an Org to facilitate
employees’ learning of job related behaviors’
Teaching low level or technical employees
How to do their present jobs
 Training

Teaching managers and professionals the

 Development Skills needed for both present and future jobs
 On-the-job training (OJT)

 A type of training in which an experienced

employee “adopts” a new employee to teach
him/her how to perform job duties
o Adv: save costs for training facilities, materials or instructor fee
• Videos: sales person dealing with loud &
• Orientation Training angry customer
•Role play: McDonalds hamburger uni
• Classroom Training help franchisees acquire the SKA need to
manage restaurants
• Computer assisted Instruction
• Conference & case discussions groups
 Help Companies retain and develop
productive employees
 Job Posting: positions are announced on
bulletin boards or in company publications as
openings occurs. Interested employees notify
the HR dept
 Employee Resource chart: identify likely
successors for each management position
 Performance Appraisal

 The process of observing and evaluating an

employee’s performance, recording the
assessment & providing feedback to the
employees
 A formal assessment of how well an
employee is doing his/her job
 The process by which organizations
evaluate individual job performance
 Accessing Performance Accurately
 360-degree feedback
A performance appraisal by peers, subordinates,
Superiors, clients thus appraising the employee
from a variety of perspectives

 Rating problems
 Halo error
 Homogeneity

 Technique to overcome performance evaluation errors

 BARS (Behaviorally anchored rating scale)
 By relating employee performance to specific incidents
raters can more accurately evaluate an employee’s
performance
 Halo error: means the error of judging the whole
personality or performance of a person based on a single few
traits of his personality. Hallo effect/error distort performance
evaluation if for example a supervisor likes or dislikes a person &
rates him good or bad accordingly
 Homogeneity : occurs when a rater rate all employees a
similar rating even if their performances are not equally good
 Specific behaviors are ranked along a scale For example
BES for Bartender’s Customers Relations:

 Extremely Out Standing 7 you can expect this bartender

 Performance to help customers in need.

 Good performance 6 you can expect this bartender to calm

down arguments before they erupt into
fires

 Poor performance 2 you can expect this bartender

to check identification of
customers on their first time in
the bars.
 Extremely poor 1 you can expect this bartender
Performance to pick up customers drinks
finished or not with little
or no warning at close
time.
 Performance appraisal interview

 Number of steps suggested by research into

the performance appraisal interview

Assignment
 Maintaining An Effective
Workforce

 Compensation : Monetary payments (wages/

salaries) and nonmonetary (fringe benefits,
vacations) used to reward employees
 The financial remuneration given by the Org
to its employees in exchange for their work
 •Design compensation structure
to fit company strategy
•Use a merit pay system than system based on
 Compensation Strategy •Seniority criteria

Pay for performance systems

 Compensation Equity •Determine the relevant worth of jobs

•With this knowledge jobs are out into
 Job evaluation Hierarchy according to their relative worth
• Job Ranking, Grading, factor comparison
and Point system methods used

 (Skills, responsibilities, WCs are involved in the job)

 Wage & Salary Structure
 Point System
 Pay Survey What other employees in the same labor market
Are paying for specific key job
 Pay trend line
 Benefits

 Important part of Org compensation package

 Once called ‘fringe’ benefits
 Business travel accident insurance
 Medical insurance
 Stock purchase plan
 Tuition reimbursement
 Healthcare
 Cafeteria plan benefits packages
 Termination :

 Org will lose employees Some will retire, others will depart
voluntarily for other jobs and still others
will be forced out through mergers or for
poor performance

 Value of termination for maintaining WF is

two fold •Employees who are poor performers can be
dismissed
• an exit interview conducted with departing
employees to determine why they are
leaving; also excellent tool to reduce future
turnover
 Summary

Discussion