HUMAN RESOURCE MANAGEMENT.ppt

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What is HUMAN RESOURCES ?

• _{From the national standpoint, the human}

resources can be defined as the total

knowledge, skills, creative abilities, talents and

aptitudes obtained in the population, whereas

• From the individual enterprise viewpoint, they

represent the total of inherent abilities, acquired

knowledge and skills as exemplified in the

talents and aptitudes of its employees’.

(2)

The Importance of Human Resource

Management (HRM)

• _{Necessary part of the organizing function of}

management

_{Selecting, training, and evaluating the work force}

• As an important strategic tool

_{HRM helps establish an organization’s sustainable}

competitive advantage.

• Adds value to the firm

_{High performance work practices lead to both high}

(3)

High-Performance Work Practices

• Self-directed work teams

• Job rotation

• High levels of skills training

• Problem-solving groups

• Total quality management procedures and processes

• Encouragement of innovative and creative behavior

• Extensive employee involvement and training

• Implementation of employee suggestions

• Contingent pay based on performance

• Coaching and mentoring

• Significant amounts of information sharing

• Use of employee attitude surveys

• Cross-functional integration

• Comprehensive employee recruitment and selection procedures

Sources: Based on M. Huselid, “The Impact of Human Resource

Management Practices on Turnover, Productivity, and Corporate Financial Performance,” Academy of Management Journal, June 1995,

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The HRM Process

• _{Functions of the HRM Process}

_{Ensuring that competent employees are identified and}

selected.

_{Providing employees with up-to-date knowledge and}

skills to do their jobs.

_{Ensuring that the organization retains competent and}

high-performing employees who are capable of high performance.

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Environmental Factors Affecting HRM

• _{Labor Union}

_{An organization that represents workers and seeks to}

protect their interests through collective bargaining.

• Collective Bargaining Agreement

_{A contractual agreement between a firm and a union}

elected to represent a bargaining unit of employees of the firm in bargaining for:

(7)

Environmental Factors Affecting HRM

(cont’d)

• _{Affirmative Action}

_{The requirement that organizations take proactive}

steps to ensure the full participation of protected groups in its workforce.

• _{Laws and Regulations}

_{Industrial Disputes Act, Workmen Compensation}

Act ,Factories Act, Industrial Employment Standing Order Act ,Trade union Act, Payment of Wages Act, Minimum Wages Act etc.

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Related to HRM

•1963 Equal Pay Act

•1964 Civil Rights Act, Title VII (amended in 1972)

•1967 Age Discrimination in Employment Act

•1973 Vocational Rehabilitation Act

•1974 Privacy Act

•1978 Mandatory Retirement Act

•1986 Immigration Reform and Control Act

•1988 Worker Adjustment and Retraining Notification Act

•1990 Americans with Disabilities Act

•1991 Civil Rights Act of 1991

•1993 Family and Medical Leave Act of 1993

•1996 Health Insurance Portability and Accountability Act of 1996

Exhibit 12.3

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MAJOR INDIAN LABOUR LAWS/ACT

_{1923 Workmen Compensation Act} _{1948 Indian Factories Act}

_{1947 Industrial Disputes Act} _{1948 Payment of Wages Act} _{Minimum Wages Act}

_{1926 Trade Union Act}

_{Industrial Employment Standing Order Act} _{Maternity Benefit Act}

_{Child Labour Act} •

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Exhibit 12.2

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Managing Human Resources

• _{Human Resource (HR) Planning}

_{The process by which managers ensure that they}

have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks.

_{Helps avoid sudden talent shortages and surpluses.}

_{Steps in HR planning:}

Assessing current human resources

Assessing future needs for human resources

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Current Assessment

• _{Human Resource Inventory}

_{A review of the current make-up of the organization’s}

current resource status

_{Job Analysis}

An assessment that defines a job and the behaviors

necessary to perform the job

– Knowledge, skills, and abilities (KSAs)

Requires conducting interviews, engaging in direct

observation, and collecting the self-reports of employees and their managers.

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Current Assessment (cont’d)

• _{Job Description}

_{A written statement of what the job holder does, how}

it is done, and why it is done.

• Job Specification

_{A written statement of the minimum qualifications that}

a person must possess to perform a given job successfully.

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Meeting Future Human Resource Needs

Supply of Employees Demand for Employees

Factors Affecting Staffing

Strategic Goals

Forecast demand for products and services Availability of knowledge, skills, and abilities

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Recruitment and Decruitment

• _Recruitment

_{The process of locating, identifying, and attracting}

capable applicants to an organization

• Decruitment

_{The process of reducing a surplus of employees in}

the workforce of an organization

• E-recruiting

_{Recruitment of employees through the Internet}

Organizational web sites Online recruiters

(17)

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Selection

• _{Selection Process}

_{The process of screening job applicants to ensure that}

the most appropriate candidates are hired.

• _Selection

_{An exercise in predicting which applicants, if hired, will}

be (or will not be) successful in performing well on the criteria the organization uses to evaluate

performance.

_{Selection errors:}

 Reject errors for potentially successful applicants  Accept errors for ultimately poor performers

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Validity and Reliability

• _{Validity (of Prediction)}

_{A proven relationship between the selection device}

used and some relevant criterion for successful performance in an organization.

High tests scores equate to high job performance; low

scores to poor performance.

• Reliability (of Prediction)

_{The degree of consistency with which a selection}

device measures the same thing.

Individual test scores obtained with a selection device

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Types of Selection Devices

• _{Application Forms}

• _{Written Tests}

• Performance Simulations

• _Interviews

• _{Background Investigations}

• _{Physical examinations}

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Written Tests

• _{Types of Tests}

_{Intelligence: how smart are you?}

_{Aptitude: can you learn to do it?}

_{Attitude: how do you feel about it?}

_{Ability: can you do it?}

_{Interest: do you want to do it?}

• Legal Challenges to Tests

_{Lack of job-relatedness of test to job requirements}

_{Discrimination in equal employment opportunity}

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Performance Simulation Tests

• _{Testing an applicant’s ability to perform actual}

job behaviors, use required skills, and

demonstrate specific knowledge of the job.

_{Work sampling}

Requiring applicants to actually perform a task or set of

tasks that are central to successful job performance.

_{Assessment centers}

Dedicated facilities in which job candidates undergo a

series of performance simulation tests to evaluate their managerial potential.

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Other Selection Approaches

• Situational Interviews

_{Interviews in which candidates are evaluated on how}

well they handle role play in mock scenarios.

• Background Investigations

_{Verification of application data}

_{Reference checks:}

Lack validity because self-selection of references ensures only positive outcomes.

• Physical Examinations

_{Useful for physical requirements and for insurance} purposes related to pre-existing conditions.

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Suggestions for Interviewing

1. Structure a fixed set of questions for all applicants.

2. Have detailed information about the job for which applicants are interviewing.

3. Minimize any prior knowledge of applicants’ background, experience, interests, test scores, or other characteristics.

4. Ask behavioral questions that require applicants to give detailed accounts of actual job behaviors.

5. Use a standardized evaluation form. 6. Take notes during the interview.

7. Avoid short interviews that encourage premature decision making.

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Exhibit 12.9

Examples of “Can’t Ask and Can Ask”

Interview Questions for Managers*

• Can’t Ask

 What’s your birth date? or

How old are you?

 What’s your marital

status? or Do you plan to have a family?

 _{What’s your native}

language?

 _{Have you ever been}

arrested?

• Can Ask

 Are you over 18?

 _{Would you relocate?}

 _{Are you authorized to}

work in the United States?

 _{Have you ever been}

convicted of [fill in the blank]?—The crime must be reasonably related to the performance of the job.

* Managers should be aware that there are numerous other “can and can’t ask”

questions. Be sure to always check with your HR department for specific guidance.

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Other Selection Approaches (cont’d)

• _{Realistic Job Preview (RJP)}

_{The process of relating to an applicant both the}

positive and the negative aspects of the job.

Encourages mismatched applicants to withdraw.

Aligns successful applicants’ expectations with actual

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Exhibit 12.10

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Orientation

• _{Transitioning a new employee into the}

organization.

_{Work-unit orientation}

Familiarizes new employee with work-unit goals

Clarifies how his or her job contributes to unit goals Introduces he or she to his or her coworkers

_{Organization orientation}

Informs new employee about the organization’s

objectives, history, philosophy, procedures, and rules.

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Training

• _{A planned process to modify knowledge, attitude}

or skill behaviour through learning experience to

achieve effective performance in an activity or

range of activities. Its purpose in the work

situation ,is to develop the abilities of the

individual and to satisfy the current and futuer

manpower needs of the organization”

• Manpower Service Commission(1981)

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Types of Training

• Interpersonal skills

• Technical

• Business

• Mandatory

• Performance management

• Problem solving/Decision making

• Personal

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Exhibit 12.12

Employee Training Methods

• Traditional

Training Methods

 _On-the-job

 _{Job rotation}

 _{Mentoring and coaching}

 _{Experiential exercises}  _{Workbooks/manuals}  _{Classroom lectures} • Technology-Based Training Methods  _{CD-ROM/DVD/Videotapes/} Audiotapes  Videoconferencing/ teleconferencing/ Satellite TV  _{E-learning or other} interactive modules.

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Employee Performance Management

• _{Performance Management System}

_{A process establishing performance standards and}

appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions.

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Performance Appraisal Methods

• _{Written essays}

• _{Critical incidents}

• Graphic rating scales

• _{Behaviorally anchored rating scales (BARS)}

• _{Multiperson comparisons}

• _{Management By Objectives (MBO)}

• _{360 Degree feedback}

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Compensation and Benefits

• _{Benefits of a Fair, Effective, and Appropriate}

Compensation System

_{Helps attract and retain high-performance employees}

_{Impacts on the strategic performance of the firm}

• Types of Compensation

_{Base wage or salary}

_{Wage and salary add-ons}

_{Incentive payments}

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Exhibit 12.14

Factors That Influence Compensation and Benefits

Sources: Based on R.I. Henderson, Compensation Management, 6th_{ed. (Upper Saddle River, NJ: Prentice Hall,}

(37)

Career Development

• _{Career Defined}

_{The sequence of positions held by a person during}

his or her lifetime.

• Career Development

_{Provides for information, assessment, and training}

_{Helps attract and retain highly talented people}

• Boundaryless Career

_{A career in which individuals, not organizations,}

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Exhibit 12.15

Top 10 Job Factors for College Graduates

1. Enjoying what they do

2. Opportunity to use skills and abilities

3. Opportunity for personal development

4. Feeling what they do matters

5. Benefits

6. Recognition for good performance

7. Friendly co-workers

8. Job location

9. Lots of money

10. Working on teams

(ranked in order of importance) Source: Based on V. Frazee.

“What’s Important to College Grads in Their First Jobs?” Personnel Journal, July 1996, p. 21.

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Some Suggestions

for a Successful

Management

Career

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Contemporary HRM Issues

• _Downsizing

_{The planned elimination of jobs in an organization}

Provide open and honest communication. Reassure survivors.

• Managing Work Force Diversity

_{Recruitment for diversity}

_{Selection without discrimination}

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Contemporary HRM Issues (cont’d)

• _{Sexual Harassment}

_{An unwanted activity of a sexual nature that affects}

an individual’s employment.

Unwanted sexual advances, requests for sexual favors,

and other verbal or physical conduct of a sexual nature when submission or rejection of this conduct explicitly or implicitly affects an individual’s employment.

_{An offensive or hostile environment}

An environment in which a person is affected by

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Contemporary HRM Issues (cont’d)

• _{Work-Life Balance}

_{Employees have personal lives that they don’t leave}

behind when they come to work.

_{Organizations have become more attuned to their}

employees by offering family-friendly benefits:

On-site child care Summer day camps Flextime

Job sharing

Leave for personal matters Flexible job hours