Principles of
Human
Resources
Management
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Training Agenda
Training Agenda
1.
1.
HR Management : An Overview
HR Management : An Overview
2.
2.
HR Planning and Recruitment
HR Planning and Recruitment
3.
3.
Employee Selection
Employee Selection
4.
4.
Training and Development
Training and Development
5.
5.
Performance Management
Performance Management
6.
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Human Resource
Human Resource
Management : An Overview
Management : An Overview
HR Management Cycle
HR Management Cycle
Recruitment & Selection Training & Development Performance Management Reward Management Career Management6
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HR Strategy and Business Result
HR Strategy and Business Result
Recruitment & Selection Training & Development Performance Management Reward Management Career Management HR STRATEGY Business Business Strategy Strategy Business Business Result Result
Manpower Planning &
Employee Recruitment
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Manpower Planning
Manpower Planning
Company Strategy Company Strategy What staff do we need to do the job? What staff is available within our organization? Is there a match?If not, what type of people do we need, and how should we recruit them? Job Analysis • Performance appraisal • Company data banks • Training • Employee management and development What is impact on wage and salary program?
Manpower Planning
Manpower Planning
The financial The financial resources resources available to available to your your organization organizationFactors in Forecasting Personnel
Factors in Forecasting Personnel
Requirements Requirements Projected Projected turnover (as a turnover (as a result of result of resignation and resignation and terminations) terminations)
Quality and nature of
Quality and nature of
your employees (in
your employees (in
relation to what you
relation to what you
see as the changing
see as the changing
need of your
need of your
organization)
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Technique to Determine Number of Recruits
Technique to Determine Number of Recruits
• Study of a firm’s past employment needs over a period of years to predict future needs
Trend Analysis
Ratio Analysis
• A forecasting technique for
determining future staff needs by using ratios between sales volume and
Recruitment from External Resources
Recruitment from External Resources
• Recruiting new staff from external sources will be influenced by several factors, namely :
When the economic conditions are relatively difficult, there will usually be an oversupply, or the number of
applicants will much higher than the demand. In such a case, the company will find it relatively easier to select new employees from the large number of applicants.
Macro- Economic Conditions
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When the sector is one that is
considered a ‘rare’ sector, the company will have more difficulty in recruiting
staff for this sector. For example, computer technology, or cellular engineering.
Availability of Manpower
in Desired Sectors
Recruitment from External Resources
It will tend to be easier for a company to find and recruit the best people if the company has a good reputation, therefore the best fresh graduates will flock to apply to the company.
Example : Google, McKinsey or Microsoft.
Company Reputation
Recruitment from External Resources
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• Some employers use a recruiting yield pyramid to
determine the number of applicants they must generate to hire the required number of new employees.
• Example of Recruitment Curve: • 1200 - Leads generated • 200 - Candidates invited
• 150 - Candidates interviewed • 100 - Offers made
• 50 - New hires
Recruitment Yield Pyramid
Recruitment Sources
Recruitment Sources
Advertising (newspaper, magazine, internet) College Recruitment Recruitment Agent (headhunter)Recruitment
Recruitment
Sources
Sources
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Basic Concept of Selection Tests
Basic Concept of Selection Tests
The quality of an employee selection test is determined by three main factors, namely :
1.
1. Criterion Validity : A type of validity based on showing Criterion Validity :
that scores on the test (“predictors”) are related to job performance (“criterion”).
2.
2. Content Validity : A test that is “content valid” is one in Content Validity :
which the test contains a fair sample of the tasks and skills actually needed for the job in question.
3.
3. Reliability : The consistency of scores obtained by the Reliability
same person when retested with identical or equivalent test.
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Some Types of Selection Test
Some Types of Selection Test
1. Cognitive Ability Test
2. Personality Test
Cognitive Ability Test
Cognitive Ability Test
•
Cognitive Abilities Tests: Paper and pencil or
individualized assessment measures of an
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Advantages of Cognitive Ability Test
Advantages of Cognitive Ability Test
• highly reliable
• verbal reasoning and numerical tests have shown high validity for a wide range of jobs
• the validity rises with increasing complexity of the job • may be administered in group settings where many
applicants can be tested at the same time
• scoring of the tests may be completed by computer scanning equipment
Disadvantages of Cognitive Ability Test
Disadvantages of Cognitive Ability Test
• non-minorities typically score one standard deviation above minorities which may result in adverse impact depending on how the scores are used in the selection process
• differences between males and females in abilities (e.g., knowledge of mathematics) may negatively impact the scores of female applicants
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Personality Test
Personality Test
•
Personality Tests: A selection procedure measure
the personality characteristics of applicants that are
related to future job performance.
•
Personality tests typically measure one or more of
five personality dimensions:
extroversion,
extroversion,
emotional stability, agreeableness,
emotional stability, agreeableness,
conscientiousness, and openness to experience.
Advantages of Personality Test
Advantages of Personality Test
• can result in lower turnover due if applicants are selected for traits that are highly correlated with employees who have high longevity within the organization
• can reveal more information about applicant's abilities and interests
• can identify interpersonal traits that may be needed for certain jobs
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Disadvantages of Personality Test
Disadvantages of Personality Test
• difficult to measure personality traits that may not be well defined
• responses by applicant may be altered by applicant's desire to respond in a way they feel would result in their selection
• lack of diversity if all selected applicants have same personality traits
• lack of evidence to support validity of use of personality tests
Interview
Interview
•
Interviews: A selection procedure designed to predict
future job performance on the basis of applicants'
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Advantages of Interview
Advantages of Interview
• useful for determining if the applicant has requisite
communicative or social skills which may be necessary for the job
• can assess the applicant's job knowledge
• can be used for selection among equally qualified applicants
• enables the supervisor and/or co-workers to determine if there is compatibility between the applicant and the
employees
• allows the applicant to ask questions that may reveal additional information useful for making a selection decision
Disadvantages of Interview
Disadvantages of Interview
• subjective evaluations are made
• decisions tend to be made within the first few minutes of the interview with the remainder of the interview used to validate or justify the original decision
• interviewers form stereotypes concerning the characteristics required for success on the job
• research has shown disproportionate rates of selection between minority and non-minority members using
interviews
• negative information seems to be given more weight • not as reliable as tests
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Training Need Analysis Training Objectives Training Delivery Training Evaluation
Training Process
Training Process
What are the training needs for this person and/or job? Objective should be measurable and observable Techniques include on- the-job-training, action learning, etc. Measure reaction, learning, behavior, and results30
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Assessing Training Needs
Assessing Training Needs
Task Analysis A detailed analysis of a job to
identify the skills required, so that an appropriate training program can be instituted
Competency Analysis
Careful study of competency level to identify a deficiency and then
correct it with a training program, or some other development
Competency Analysis
Competency Analysis
Required competency level for certain
position Competency Gap Competency Assessment Current competency level of the employee Training and Training and Development Development Program Program
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Competency Profile Per Position
Competency Profile Per Position
1 2 3 4 5
Communication Skills Public Speaking
Leadership Training Need Analysis
Material Development Training Evaluation Communication Skills
Interview Skills Analytical Thinking Understand Selection Tools
Teamwork Customer Orientation Recruitment Supervisor Required Level Required Competency Position Training & Development Manager Score Required Competency Type
Position Requirements Competency Relevant Training Modules Leadership • Leadership I
• Communication Skills I
• The Art of Motivating Employees
• Providing Effective Feedback
SUPERVISOR
Achievement Orientation
• Goal Setting Technique
• Work Motivation
• Planning & Organizing
• Continuous Self Improevement
Managerial competency 1 2 3 4
Leadership Required Level
Actual Level
Achievement Orientation
Teamwork
Planning & Organizing
Functional competency 1 2 3 4
Mechanical Engineering
Mechanical Equipment Maintenance
Competency Profile Per Position
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Training Matrix for Competency Development
Training Matrix for Competency Development
Communication Skills V
Leadership V
Teamwork V
Achievement Orientation V
Customer Focus V
Job Functional Skills V
Communication Skills V Leadership V Teamwork V Achievement Orientation V Customer Focus V Strategic Thinking V
Problem Solving & Decision Making V
Job Functional Skills V
Position Managerial Competency
Supervisor Manager P ro du ct iv e C om m un ic at io n S er ie s O n B ec om in g E ff ec tiv e Le ad er 1 O n B ec om in g E ff ec tiv e Le ad er 2 S er vi ce E xc el le nc e fo r C us to m er P ro fe ss io na l S em in ar S er ie s A ch ie ve m en t M ot iv at io n T ra in in g C re at iv e P ro bl em S ol vi ng S tr at eg ic M an ag em en t B ui ld in g P ro du ct iv e T ea m w or k V = compulsory training Training Title
Enhance Training Effectiveness
Enhance Training Effectiveness
Make the Make the material material meaningful meaningful Provide for Provide for transfer to transfer to learning learning Motivate Motivate the trainee the trainee Training Training Effectiveness Effectiveness
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Enhance Training Effectiveness
Enhance Training Effectiveness
Make the Make the material material meaningful meaningful
• At the start of training, provide the trainees with a bird’s-eye view of the material to be presented. Knowing the overall picture facilitates learning.
• Use a variety of familiar examples when presenting material
• Organize the material so that it is presented in a logical manner and in meaningful units
• Try to use terms and concepts that are already familiar to trainees
Enhance Training Effectiveness
Enhance Training Effectiveness
Provide for Provide for transfer to transfer to learning learning
• Maximize similarity between the training situation and the work situation
• Provide adequate training practice
• Identify each feature of the step in the process
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Enhance Training Effectiveness
Enhance Training Effectiveness
Motivate
Motivate
the trainee
the trainee
• People learn best by doing. Try to provide as much realistic practice as possible
• Trainees learn best when correct
response on their part are immediately reinforced.
• Trainees learn best when they learn at their own pace. If possible, let trainees pace themselves.
Type of Training Program
Type of Training Program
Formal course
Formal course OFF THE JOB
OFF THE JOB
Simulation
Simulation
Wilderness Trip
Wilderness Trip
• Does not interfere with job • Provides for fact learning
• Helps transfer of learning • Creates lifelike situations
• Builds teams
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Type of Training Program
Type of Training Program
Job instruction Job instruction training training ON THE JOB ON THE JOB Apprenticeship Apprenticeship training training Job rotation Job rotation Mentoring Mentoring
• Facilitates transfer of learning
• Does not require separate facilities
• Does not interfere with real job performance • Provides extensive training
• Gives exposure to many jobs • Allows real learning
• Is informal
Evaluation of Training Effectiveness
Evaluation of Training Effectiveness
Level 1 - Reaction
Level 2 - Learning
Level 3 – Behavior
Application
Level 4 – Business
Impact
Four Levels
Four Levels
of Training
of Training
Effectiveness
Effectiveness
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Evaluation of Training Effectiveness
Evaluation of Training Effectiveness
Test the trainees to determine if
they learned the principles,
skills, and facts they were to
learn.
Evaluate trainees’ reactions to
the program. Did they like the
program? Did they think it
worthwhile?
Level 1 -
Level 1 -
Reaction
Reaction
Level 2 -
Level 2 -
Learning
Learning
Evaluation of Training Effectiveness
Evaluation of Training Effectiveness
What final results were achieved in terms of the training objectives previously set? Did the number of customer complaints about employee drop? Did the reject rate improve? Was turnover reduced, and so forth.
Ask whether the trainees’ behavior on the job changed because of the training program. For example, are employees in the store’s complaint department more courteous toward disgruntled customers than previously?
Level 3 – Level 3 – Behavior Behavior Application Application Level 4 – Level 4 – Business Business Impact Impact
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Employee
Performance Management
Why Performance Appraisal?
Why Performance Appraisal?
• Appraisal provide information upon which promotion and salary decision can be made.
• Appraisal provide an opportunity for a manager and his/her subordinates to sit down and review the
subordinate’s work-related behavior, and then develop a plan for corrective action.
• Appraisal provide a good opportunity to review the person’s career plans in light of his/her exhibited strengths and weaknesses.
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Performance Management Cycle
Performance Management Cycle
Performance Planning (Setting Performance Targets) Regular Review and Monitoring Feed back Feed back Corrective Corrective Action Action Performance Appraisal and Evaluation • Training & Development Plan • Salary/Bonus Adjustment • Career DevelopmentPerformance Management Cycle
Performance Management Cycle
Defining Defining Performance Performance Standard/ Standard/ Targets Targets Appraising Appraising Performance Performance Providing Providing Feedback for Feedback for Development Development 1.
1. Defining the performance standards Defining the performance
means making sure that you and your subordinate agree on his/her duties and targets that you expect
2.
2. Appraising performance means Appraising performance
comparing your subordinate’s actual performance to the standard/targets set in step one.
3.
3. Providing feedback means discussing Providing feedback
plans for any development that is required.
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Problems in Performance Appraisal
Problems in Performance Appraisal
Lack of Lack of standards standards Irrelevant or Irrelevant or subjective subjective standards standards Poor Poor measures of measures of performance performance Poor Poor feedback to feedback to employee employee Negative Negative communication communication Failure to Failure to apply apply evaluation evaluation data data
Common Performance Evaluation Problems
Bias in the Appraisal Process
Bias in the Appraisal Process
Halo
Halo
Effect
Effect
The "halo" effect occurs when a supervisor’s rating of a subordinates on one trait biases the rating of that person on other traits
Central
Central
Tendency
Tendency
A tendency to rate all employees the same way, such as rating them all average
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Leniency
Leniency
The problem that occurs when a supervisory has a tendency to rate all subordinates either high or low
Bias
Bias The tendency to allow individual differences such as age, race, and sec affect the appraisal
rates these employees receives.
Bias in the Appraisal Process
Performance
appraisal
elements
has two main
categories:
2. Performance Result:
Hard or quantitative aspects
of performance (result)
1. Competencies: It
represents soft or qualitative
aspects of performance
(process)
Performance Appraisal Element
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1.
1.
Competencies Score
Competencies Score
2. Performance Result
2. Performance Result
Score
Score
Overall Score
Overall Score
Will determine the employee’s career movement, and also
the reward to be earned
Performance Appraisal Element
Element # 1 : Competencies
Element # 1 : Competencies
Basic Intermediate Advanced Expert
Actively listens, and clarifies
understanding where required, in order to learn from others.
Actively listens, and clarifies
understanding where required, in order to learn from others.
Actively listens, and clarifies
understanding where required, in order to learn from others.
Actively listens, and clarifies understanding where required, in order to learn from others.
Empathise with audience and
formulates messages accordingly. Empathise with audience and formulates messages accordingly. Empathise with audience and formulates messages accordingly. Empathise with audience and formulates messages accordingly. Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information. Responds promptly to other team
members’ needs. Balances complementary strengths in teams and seeks diverse contributions and perspectives.
Actively builds internal and external
networks. Builds internal and external networks and uses them to efficiently to create value. Involves teams in decisions that effect
them. Uses cross functional teams to draw upon skills and knowledge throughout the organization.
Uses cross functional teams to draw upon skills and knowledge throughout the organization. Encourages co-operation rather than
competition within the team and with key stakeholders.
Builds and maintains relationships
across The company. Drives and leads key relationship groups across The company. Manages alliance relationships through complex issues such as points of competing interest. Ensures events and systems, eg IT, for collaboration are in place and used. Draws upon the full range of relationships (internal, external, cross The company) at critical points in marketing and negotiations.
Competency : Collaboration
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No. Main Performance Target Target to be Achieved
1 Conduct an assessment of the All employees submit their performance assessment form employee's performance on time
2 Improve the system for Target : completed 100 % performance assessment in November 2008
3 Conduct training activities Target : to conduct 6 training modules in one year
4 Carry out on the job training Target : 90 % of the total employees activities who attend the training
experience an increase in skill and knowledge
Element # 2 : Performance Results
Element # 2 : Performance Results
Target should be measurable and
Target should be measurable and
specific
Employee Career
Management
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Career Planning and Development
Career Planning and Development
Providing employees
Providing employees
the assistance to form
the assistance to form
realistic career goals
realistic career goals
and the opportunities
and the opportunities
to realize them
to realize them
Career
Career
Planning &
Planning &
Development
Development
Entry Level Entry Level First Line First Line Middle Middle Management Management Senior Senior Management Management Top Top Management Management
Join Company 22 years old
Supervisor/Ass. Manager 26 - 29 years old
Managers 29 - 35 years old
GM/Senior Managers 35 - 45 years old
CEO/BOD 45 - 55 years old
Typical Career movement
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Career Stage
Career Stage
Trial Stage The period from about age 25 to 30 during which the person determines whether or not the chosen field is suitable and if it is not, attempts to change it.
Stabilization Stage
The period, roughly from age 30 to 40, during which occupational goals are set and more explicit career planning is made to determine the sequence for
Mid career Crisis Stage
The period occurring between the
mid-thirties and mid-forties during which people often make a major reassessment of their progress relative to their original career ambitions and goals
Maintenance Stage
The period form about ages 45 to 65 during which the person secures his or her place in the world of work
Career Stage
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Decline Stage The period during which many people are faced with the prospect of having to accept reduced levels of power and responsibility.
Career Stage
Career Anchors
Career Anchors
Career Anchor :
A concern or value that someone will not give up if
choice has to be made
Career anchors, as their name implies, are the
pivots around which a person’s career swings; a
person becomes conscious of them as a result of
learning about his or her talents and abilities.
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Five Career Anchors
Five Career Anchors
Technical/ Technical/ Functional Functional Career Anchor Career Anchor Managerial Managerial Competence as a Competence as a Career Anchor Career Anchor Creativity as a Creativity as a Career Anchor Career Anchor Autonomy and Autonomy and Independence as Independence as Career Anchor Career Anchor Security as a Security as a Career Anchor Career Anchor
Five Career Anchors
Five Career Anchors
Technical/ Technical/ Functional Functional Career Anchor Career Anchor
• People who have a strong
technical/functional career anchor tend to avoid decisions that would drive them toward general
management.
• Instead, they make decisions that will enable them to remain and grow in their chosen technical or functional field
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Five Career Anchors
Five Career Anchors
Managerial
Managerial
Competence
Competence
• People who show strong motivation to become managers
• Their career experience enables them to believe that they have the skills and values necessary to rise to such general management position
Five Career Anchors
Five Career Anchors
Creativity
Creativity • People who go on to become successful entrepreneurs
• These people seem to have a need to build or create something that is
entirely their own product – a product or process that bears their name, a company of their own, or a personal fortune that reflects their
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Five Career Anchors
Five Career Anchors
Autonomy and
Autonomy and
Independence
Independence
• People who are driven by the need to be on their own, free from the
dependence that can arise when a person elects to work in a large organization.
• Some of these people decide to
become consultants, working either alone or as part of relatively small firm. Others choose to become professors, free-lance writers, or
Five Career Anchors
Five Career Anchors
Security
Security • People who are mostly concern with long-run career stability and job
security.
• They seem willing to do what is required to maintain job security, a decent income, and a stable future in the form of a good retirement
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Career Management and the First
Career Management and the First
Assignment
Assignment
• Factors to keep in mind about the important first assignment, include :
1. Avoid reality shock (reality shock refers to the result of a period that may occur at the initial career entry when the new employee’s high job expectations confront the reality of boring, unchallenging jobs. 2. Provide challenging initial jobs
3. Provide realistic job preview in recruiting 4. Be demanding
Career Management and the First
Career Management and the First
Assignment
Assignment
5. Provide periodic job rotation
6. Provide career-oriented performance appraisals 7. Encourage career-planning activities
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References/Recommended Further Readings
References/Recommended Further Readings
1. Gary Dessler, Human Resource Management, Prentice Hall. You can obtain this excellent book at this link :
http://www.amazon.com/Framework-Human-Resource-Management-5th/dp/0136041531/ref=sr_1_6?ie=UTF8&s=books&qid=1219801564&sr=1-6
2. Susan Jackson and Randall Schuler, Managing Human Resource : A
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