Human Resource Management

Human Resource Management
HRM
A
concept
characteristics
Human focus
Management Function
pervasive function
Continuous commitment
Dynamic
System
Mutually-Oriented
objectives
Goal achievement
Personal goals
HRM goals
Organizational goals
societal goals
Goal harmony
Structure maintenance
Productivity improvement
Efficiency promotion
change management
Quality of Work life
functions
Acquisition
Development
Utilization
Maintenance
B
HRM System
Input
Human Energy and competencies
Org Plan
HR Plan
HR Inventory
Job Analysis
Labour market
Processing
Acquision
Development
Utilization
Maintenance
Outputs
Org Related
Goal achievement
quality of worklife
productivity
profits
readiness for change
Employee Related
commitment
competence
congruence
cost-effectiveness
HRM System.jpg
Personnel Mgmt and HRM
Dimension
Personnel Management
Column 1
HR Management
Column 2
Focus
People as input in the production process
Column 1
People as strategic resource in the org system
Column 2
Scope
Concren of Personnel Dept
Column 1
Concer of all levels of managers
Column 2
Function
Routine function
Column 1
Strategic function
Column 2
Job Design
Job design based on division of labour
Column 1
Job design based on team work
Column 2
Interest
Organization's interest uppermost
Column 1
harmony in interests of orgs and individuals
Column 2
Orientation
discipline, direction and control oriented
Column 1
systems oriented with climate for growth,
Column 2
performance and involvement
Column 2
Communication
restricted communication
Column 1
open communication
Column 2
Labour Mgmt
piecemeal approach to labour mgmt
Column 1
collective bargaining
Column 1
Integrated approach to mgmt of HR
Column 2
Individualised performance contracts
Column 2
Means
emphasis on rules, regulations,
Column 1
procedures, practices
Column 1
Emphasis on human enery and competencies
Column 2
Ends
employee satisfaction
Column 1
achieving goals
Column 2
Outcome
a) satisfied personnel
Column 1
b) Increased production
Column 1
a) committed HRs
Column 2
b) Increased productivity
Column 2
c) Readiness to change
Column 2
d) Increased Profits
Column 2
e) Quality of work life
Column 2
C. HR Outcomes
Quality of Work life(QWL)
A
Autonomy
Recognition
belonging
intrinsic rewards-job-oriented
extrinsic rewards-money oriented
B. Factors
equity in compensation
safe and healthy work environment
development of human capacities
social relevance
social responsibility
total life space
Productivity
a) Technology
b) Innovation
c) Learning
d) Motivation
e) Performance-reward linkage
Readiness to change
A) Main reasons for resistance to change are:
a) fear of unknown
b) security
c) misunderstanding
d) Habit
e) poor communication
f) lack okf involvement
g) vested interests
h) social factors
B) HRM brings readiness for change by:
i) education and communication to employees about change
ii) participation and involvement of employees in planning and implementation of change
iii) negotiation and agreement with employees about change
iv) Facilitation and support to employees through training and education
v) giving roles to key employees in designing and implementing change
vi) overcoming resistance to change
D. Challenges of HRM
Globalization
Complexity
Technological change
Less Attached Employees
New HRM Concerns
Management of Change
Learning Organizations
Components
Acquisition
Human Resource Planning
A.
Concept
Characteristics
Goal directed
checks shortage and surplus of HR
Future oriented
quantitative and qualitative
systems-oriented
forecasts needs
identifies supplies
outcome- right man at the right place at teh right time
time horizon
part of corporate plan
part of acquisition function
Importance of HRP:
Risk and uncertainty reduction
Environmental adaptatin
Improved labour relatins
Acquisition, development, utilization and control of HRs
Change management
Improved efficiency and effectiveness
B.
Concept of Human Resource Strategy
Characteristics
a) Long-term horizon
b) Objectives-oriented
c) Value Addition
d) Environment Adaptation
Relationship between HR Planning and strategic planning
Strategic planning
a road-map that provides direction and scope
a systematic process to analyze the opportunities and threats in teh environment and assess organizations internal strngths and weaknesses, and identify opportunities of competitive advantage
encourages managers to look for new opportunities in the long run
Strategic plan is a corporate level plan which :
a) defines org's mission, objectives and strategies-provides long-term road-map.
b) analyzes strengths, weaknesses, opportunities and threats of the orgs (SWOT analysis)
c) analyzes org's resource capabilities
d) matches resources with opportunities of competitive advantages.
HR Plan
a process of predetermining HR needs and choosing actions to satisfy those needs to help achieve org objectives
strong relationship with Strategic planning - an integral part of the corporate plan.
Relationship
a) Follower relationship
HR plan is based on overall objectives and strategies of the org
HR plan is tailored to fit the needs of corporate strategic plan.
b) Partner relatinship
** HR Plan is a partner in the formulation of the corporate strategic plan
** has a strategic relationship in the development of the corporate strategic plan
** HRM gets everybody in the org involved in implementing the strategic plan
Partner relationship aims to:
i) link HR activities with the strategic plan of the org
ii) ensure that HRM issues are properly considered while formulating the strategic plan
iii) ensure effective utilization of HR
iv) achieve a match between org objectives and HRM objectives
v) identify human resource competencies neede to achieve org objectives
vi) develop action plan for HRM
C. Approaches to HR Planning
1) Top down approach(Quantitative approach)
2) Bottom up approach (Qualitative approach)
3) Mixed Approach
D.
HR Planning Process
HRP Process.jpg
1. Assessing Current Human Resources
2. Forecasting HR demand
3. Forecasting HR Supply
4. Matching demand and supply forecasts
5. Preparation of Action plans
Figure
HR Informatin System
Concept
A database device for systematically tracking HR info
designed to collect, analyze, store, retrieve and disseminate info about jobs & employees
- Jobs currently being done : job requirements
People doing those jobs : people requirements
a computer-based system developed from employee and pay-roll records
Contents of HRIS
a) Personal data
- name
- address
- date of birth
- marital status
- children
- next of kin
b) Skills data
• Educational qualifications
• Training recieved
•language spoken
• capabilities
• special skills
c) Position data
• current position
• duties and responsibilities
• occupational history
• various jobs held in other orgs
• work location
d) Compensation data
• current salary
• salary history
• bonus
• overtime payments
• deductions from salary
• tax info
• award received
e) Performance data
• current and past performance appraisal data
Uses of HRIS
a) HR Inventory development
b) Human resource forecast
c) HR development
d) Job analysis
HR Inventory
Concept
• skills inventory of HR currently employed in teh org
• based on HRIS
• source of info for developing HR inventory are the forms completed by employees
Info included in the inventory:
a) name of the employee/age/sex/marital status
b) education qualification of the employee
c) Training undertaken by the employee
d) current position held by the employee
e) performance ratings of the employee
f) prior employment experience of the employee
g) salary level of the employee
h) language spoken by the employee
i) capabilities of the employee in terms of future potential
j) specialized skills of the employee
k) job and location preferences
Analysis of HRIS data provides the following info to facilitate the development of HR Inventory:
a) no. of current employees by departments, service, skills, level, age, etc
b) no. of current employees joining and leaving, including reasons for leaving
c) staff turnover rates, including its trend
d) sickness and absenteeism rates
e) salary bill, including overtime payments
Benefits of HR Inventory
a) enables managers to assess what skills are currently available in the org
b) useful for planning the selection, training, promotion and transfer of employees
c) serves as a decision making tool - helps to make person-job fit
d) serves as a guide for considering opportunities for diversification and expansion of operation
e) provides crucial info for identifying HR related threats to the org
f) supports decision making, coordination and control relating to human resources
Succession Planning
A. Concept
Succession planning is the process of forecasting future demand of managerial human resources. It involves
a) anticipating managerial staffing needs in future for key positions
b) identifying managers with potential for higher responsibilities
c) Making plans for the development of identified managers to meet those needs. potential successors are identified and developed.
It is done for middle and top level managers
Concerned positions are likely to be vacant in the future due to:
º Retirement
º Resignation
º Promotion
º Transfer
º Death
Takes a long term view of the managerial HR needs of the Org
Builds and 'employee bank'
A separate management inventory is generated from HR Inventory for Succession Planning purposes. It includes additional info about the following :
º Current Performance
º Long term growth potential
º Promotability
º Developmental needs (Skills deficiencies)
The Management Succession plan is prepared by matching individual manager's inventory with the list of positions likely to be vacant.
Subtopic 1
If managerial shortages are spotted for vacancies in the mgmt succession plan, candidates are developed through :
º Training and management development
º special assignments
º job rotation
º understudy
º other means
B. Benefits
a) Continuity
b) Career planning
c) Development
d) Talent Management
HR Planning in Nepalese Orgs
Job Design and Analysis
Job Design
Concept
Task
job
position
occupation
Benefits of Job design
Organizational design
Need balancing
Human resource acquisition
motivation
Person-job fit
harmonious labour relations
better quality of work life
Methods of job design
Scientific Management Method
Herzberg's Method
Job Characteristics Method
Open Socio-Technical Method
Work Team Method
Job Analysis
Concept
Components
Job description
i) Title of the job, level of the job : this identifies the job.
ii) Location of the job : Department, physical location.
iii) Relationships : responsible to and responsible for.
iv) Job summary : describes general nature of the job.
v) Duties and responsibilities : What the employee does.
vi) Authority : right to make decisions and give orders to subordinates.
vii) Accountabilities : Answerability for standards of performance.
viii) Organizational interactions : Both inside and outside the organizations.
Job specification
i) Education and Training : years of schooling, type of training
ii) Experience : previous job experience in terms of years and nature of organization.
iii) Physical Health : Good health, emotional stability.
iv) Skills : Communication, computer, driving, report writing, etc.
v) Abilities :
Physical: strength and dexterity, sitting/standing/walking
Mental: Judgement and initiative, getting along with others, decision making, etc.
vi) Maturity: capacity to assume increased responsibilities.
Job Performance standards
job evaluation
Purposes:
• It gives information for developing a compensation package.
• It is important for compensation management.
• It serves as the basis for fixing a fair and equitable salary and wage structure.
Purposes of job analysis
1. develop job description, job specifications and job performance standards
2. Conduct job evaluation
3. prepare human resource plan
4. Identify training and development needs
5. Develop performance appraisal system
6. Job design and redesign
Collecting Job Analysis Information (Process)
a) understand purpose of job analysis
b) Select positions to be analyzed
c) Identify information needed
i. work activities
ii. worker-oriented activities
iii. machines and materials used
iv. job performance standards
v. job context
vi. personal attributes
d) Identify sources of information
i) employees
ii) supervisors
iii) independent experts
iv) job review committee
v) nonhuman sources
e) choose methods for collecting information
i. observation method
ii. interview method
iii. questionnaire method
iv. diary method
v. technical conference method
f) Collect needed information and check for accuracy
Job Analysis techniques
Job focused techniques
a) Functional Job Analysis Technique
i) worker functions
ii) Worker fields
iii) Worker products
iv) Worker traits
b) Methods Analysis
• Balancing movements of two hands
• Opposite and symmetrical directions of hands
• Reduction of muscular efforts
• Doing productive work without idle time
• Location and position of tools and materials for grasping
• Illumination, height, space arrangements at work
c) The Hay Plan
• Objectives of the job
• Dimensions of the job
• Nature and scope of managerial position
• Accountability
• Supporting staff needs
• Technical, managerial and human relationships required
• Nature of problem solving required
• Nature of control and supervisory requirements
Person/behaviour focused techniques
a) Position Analysis Questionnaire (PAQ)
i) Information unit : where and how the worker gets information to do the job.
ii) Mental processes : reasoning, planning and decision making involved in a job
iii) Work output : physical activities as well as tools or devices used
iv) Relationships : interpersonal relationships required by the job
v) Other job characteristics: work schedules, work responsibilities, etc
b) Critical Incident Technique
Recruitment, Selection and Socialization
Recruitment
Process:
Locating sources
Internal Sources
Sources
∙ Promotion from within
∙ Transfer
∙ Rehires
∙ job rotation
Advantages of Internal Recruitment
1. Better selection
2. Morale building
3. Adaptability
4. Human resource development
5. Cost-effective
6. Commitment
Disadvantages
1. Limited choice
2. In-breeding
3. Favouritism
4. Limited opportunities
5. Seniority-based
External
Sources
1. Employment exchange
2. Private employment agencies
3. Educational institutions
4. Professional associations
5. Trade unions
6. Unsolicited applicatins
∙ Walk-ins
∙ write ins
∙ electronic
Advantages of external recruiting
1. Qualitative human resources
2. Organizational rejuvenation
3. Environmental adaptation
4. Balanced human resource mix
5. Fairness in recruitment
Disadvantages of external recruiting
1. High cost
2. Poor employee morale
3. Adaptability problems
4. Wrong selection
Attracting qualified candidates to apply
Methods of recruitment
Internal methods:
1. Job posting
a) Bulletin boards
b) In-house newsletters/newspapers
c) circulars
d) electronic mail
2. Employee referral
3. Human resource inventory search
a) Personal : Name, age, sex, marital status
b) Educational qualifications/professional qualifications
c) Training undertaken/special skills
d) Employment experience/ current position held/seniority
e) Performance ratings
f) Salary level/benefit plans
g) Language spoken
h) Capabilities
i) Job and location preferences
External methods
1. Advertising
A. Media:
i) print
ii) visual
iii) audio-visual
B. Adv types:
i) Want ads
ii) blind box ads
2. Educational institution placement
3. Employee referrals
4. Internal search
5. Contact
Selection
Selection process
selection process.jpg
1) Application form evaluation
2) Preliminary interview
3) Selection tests
4) Selection interview
5) Reference checks
6) Physical examination
7) Hiring decision
Selection tests
Types
Ability tests
Aptitude tests
GMAT
Special aptitude tests
i) Mechanical aptitude tests
ii) psychomotor aptitude tests
iii) Artistic aptitude test
achievement test
i) job knowledge test
ii) work sample test
intelligence test
IQ.jpg
personality tests
interest test
attitudes test
projective test
situation tests
honesty tests
Reliability and validity of selection process
1) Reliability (consistency
2) Validity (Accuracy)
a) content validity
b) predictive validity
c) Concurrent validity
d) Construct validity
Interviews
Interview process
a) Preparation
b) conduct
c) termination
d) evaluation (review)
Methods of interviews
a) one-on-one interview
b) panel interview
c) group interview
Types of interviews
1. Unstructured interview (non-directive approach)
2. Semi-structured interview (mixed approach)
3. Structured interview (directive approach)
a) Behavioral interview
b) Situational interview
Limitations of interview
1. Snap judgement
2. Contrast effect
3. Halo effect
4. Non-verbal signals
5. Personal biases
6. Pressures
7. Negative factors
8. Lack of knowledge
Socialization
Process of socialization
1. Prearrival stage
• Education and training
• Prior job experiences
• Recruitment process
• Selection process
2. Encounter stage
3. Metamorphosis stage