HUMAN RESOURCE MANAGEMENT (HRM)
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1 HUMAN RESOURCE MANAGEMENT (HRM) Our people are our most important assets Human resource management process means all activities needed for staffing the organization and sustaining high employee performance. HR Planning Recruitment Selection E N V I R O N M E N T Orientation De-cruitment Training Identify & Select Competent People Adapted and Competent employees with up to date skills & knowledge Performance Appraisal Career Development Satisfy Labor-Mgt. Relations The HRM Process Competent & high performing employee able to sustain performance humanresource shari.fkm.utm 1
2 Environmental considerations Manager s decision in HRM influenced dictated by govt. policies, society pressures, laws. Labor union collective bargaining employment contract define recruitment sources, criteria for hiring, promotions, layoffs, training eligibility, disciplinary practices (need good labour mgt. relations) Govt. laws and regulations on Safety and Health at Workplace (OSHA 1994), Environmental Act Employment Act Working hours, overtime payment [Compensation] Industrial disputes discipline, Constructive dismissal etc. Sexual harassment new issue. humanresource shari.fkm.utm 2
3 HUMAN RESOURCE PLANNING Process by which mgt. ensures that it has right people (number, kinds) in right place at right time that can effectively & efficiently conduct tasks to meet company s obj. 2 steps (i) assess current HR level (ii) assess future HR needs and develop program to meet needs humanresource shari.fkm.utm 3
4 Step 1 Current assessment Generate human resource inventory (computer database) name, educ, train, skills, etc. everyone. Job analysis defines jobs and behaviors necessary to perform those jobs - What minimum knowledge for duties of Prod. Supervisor, Purchasing Clerk - Observing, interview, questionnaire, or record daily activities to find out content Information from job analysis prepare job description + job. Spec. Job description job content, what job holder does, how it s done, why it s done FOCUS ON THE JOB Job specification FOCUS ON PERSON states minimum qualification, skills, abilities needed to do job effectively need job description + job spec for recruitment and selecting humanresource shari.fkm.utm 4
5 Step 2 Meeting Future HR Needs depend on organization s goals + strategies demand of employees dependent on demand for products/services establish number and mix of HR needed to reach estimated company revenues + other criterias (technology, new products, globalisation etc.) after assessing current capabilities and future needs, can estimate shortages (number, type) balance needs and availability humanresource shari.fkm.utm 5
6 RECRUITMENT AND DE-CRUITMENT Recruitment - process of locating, identifying and attracting capable applicants If surplus of staff, de-cruitment techniques for reducing labor-supply within org. Recruitment Source internal search, adverts, public and private employment agencies, university placement word of mouth, personal reference, and Internet Supply of workers local, national international Type of job or level national search Large organization - easier to recruit job applicants - prestige humanresource shari.fkm.utm 6
7 Do certain sources of recruitment produce superior candidates? Generally Yes employee referrals recommend by employees nest, reputation at stake humanresource shari.fkm.utm 7
8 SELECTION Process of screening job applicants Prediction that person selected able to perform take risks Selection devices (tools) must be valid and high reliability Types of Selection Devices - Application Form - Written Tests - Performance Simulation Tests (do actual job) - Interviews - Background investigation (verify application data and reference) - Physical Examination humanresource shari.fkm.utm 8
9 Suggestions for Interviewing 1. Structure a fixed set of questions for all applicants 2. Have detailed info. About the job that applicants are interviewing for 3. Minimize any prior knowledge of applicant s background, interests, test scores 4. Ask behavioral questions that require applicants to give detailed accounts of actual job behaviors 5. Use standard evaluation form 6. Take notes during interview 7. Avoid short interviews that encourage premature decision making humanresource shari.fkm.utm 9
10 ORIENTATION Introduction to company familiarize people, job, surroundings, work-unit Specific duties & responsibilities, how performance evaluated Work-unit-goals of dept., how job fits with whole work-unit (dept.) introduce to colleagues/ co-workers Company org. objectives, history, philosophy, procedures, rules incl. Personnel policies & benefits, work hours, pay procedures, O/T requirements, tour of work areas/facilities Large company formal orientation film/video about MNC, HR Dept organize Informal smaller companies Outsider insider transition must be made smoothly, new member feel comfortable well adjusted, can perform humanresource shari.fkm.utm 10
11 EMPLOYEE TRAINING maintain & improve job performance update, upgrade, knowledge learn new skills, re-learn old knowledge or modify skills Skill categories Technical Interpersonal Problem Solving Technical - Computer (all levels) New Technology More Complex UTM e-learning (WebCT, DPMS) Interpersonal - Better Listener, Communicator Good PR Reduce Conflict Prob. Solving - Skills at defining prob. Find causes develop alternaties, select solution creativity Lateral Thinking humanresource shari.fkm.utm 11
12 Training Methods On the-job training Job Rotation Lateral transfers allowing employees to work at different jobs. Provides exposure to a variety of tasks Understudy assignments working with a seasoned veteran, coach, mentor. Provides support, encouragement from experienced person. Trades industry - apprenticeship Off-the-job Classroom lectures lectures designed to convey specific technical, interpersonal, or problem solving skills Films and videos- using media to demonstrate technical skills not easily presented by other methods Simulation exercises actually performing work (or simulate), case analysis, experiential exercises, roleplaying humanresource shari.fkm.utm 12
13 EMPLOYEE PERFORMANCE MEASUREMENT Managers need to know employees performance whether effective and efficient or need improvement Performance Measurement System A process of establishing performance standards and appraising performance in order to arrive at objective human resource decisions as well as provide documentations to support those decisions humanresource shari.fkm.utm 13
14 Performance Appraisal Methods Method Adv. Disadv. Written essay Simple to use More of writing ability than employee s actual performance Critical incidents Rich examples; behaviorally based Time-consuming; lack quantification Graphic rating Provide quantitative data; Do not provide depth of scales less time-consuming job behavior assessed than others BARS Focus on specific and measurable job Time-consuming; difficult to develop behaviors Multiperson comparisons Compares employees with one another Unwieldy with large number of employees MBO (Mgt by Focus on end goals; Time consuming Obj) results oriented 360 degree appraisal Thorough Time consuming humanresource shari.fkm.utm 14
15 COMPENSATION AND BENEFITS Developing an effective and efficient system of employee rewards is important part of HRM process Purpose to attract and retain competent and talented employees Different types compensation - Base wages + salaries - Wage/salary add ons (Allowance etc) - Incentive Payments - Fringe Benefits humanresource shari.fkm.utm 15
16 Factors Influencing Compensation/Benefit How does management determine who gets RM5.00 an hour and who gets RM2,500/month? Primary determinant ~ kind of job employee performs - kind and level of skills pay according to skills - knowledge Company Profitability Geographic Location Size of Company LEVEL OF COMPENSTN & BENEFITS Employee s tenure and performance Kind of job Kind of business/ organization Management Philosophy Labor or Capital Intensive Unionization humanresource shari.fkm.utm 16
17 CAREER DEVELOPMENT Define career sequence of positions occupied by a person during course of a lifetime. Career means also profession Professional development Applies to unskilled, skilled, managers engineers, lecturers, accountants, ALL humanresource shari.fkm.utm 17
18 The Way it Was Dramatic changes in concept of career dev (CD) CD programs designed to help employees advance their work lives within a specific company/org Provide info, assessment, & training to help realize their goals - and a way of attracting, retain highly talented people But, these purposes have disappeared Downsizing, restructuring, other organizational adjustments have led to one significant conclusion: The individual not the organization is responsible for his or her career. You must take responsibility in designing, guiding, and developing own career. You manage yourself humanresource shari.fkm.utm 18
19 You and Your Career Today First career decision career choice Offers best match between what you want out of life and your interests, abilities, market opportunities Good choice results in series of positions that leads to being good performer, make you want to maintain your commitment to your career, and give you proper balance between work and personal life Top 10 Important Job Factors for College Graduates - USA (V.Frazee, Personnel Journal, July 1996, p.21) 1. Enjoy what they do 6. Recognition for good performance 2. Opportunity to use 7. Friendly co-workers skills and abilities 3. Opportunity for 8. Job location personal development 4. Feeling what they do 9. Lots of money matters 5. Benefits 10. Working on teams (ranked in order of importance) humanresource shari.fkm.utm 19
20 Successful Management Career Suggestions for successful career Develop a Network Continue Upgrading Your Skills Consider Lateral Career Moves Stay Mobile Support Your Boss Find a Mentor Don t Stay Long in Your First Job Stay Visible Gain control of Organizational Resources Learn the Power Structure Present Right Image Do Good Work Select Your First Job Judiciously Take active role in managing your career, work life can be more exciting, enjoyable, and satisfying humanresource shari.fkm.utm 20
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