Principles of hr management

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  • 1. 1www.exploreHR.orgPrinciples ofHR Management
  • 2. 2www.exploreHR.orgTraining AgendaTraining Agenda1.1. HR Management : An OverviewHR Management : An Overview2.2. HR Planning and RecruitmentHR Planning and Recruitment3.3. Employee SelectionEmployee Selection4.4. Training and DevelopmentTraining and Development5.5. Performance ManagementPerformance Management6.6. Career ManagementCareer ManagementIf you find this presentation useful, please considertelling others about our site (www.exploreHR.org)(www.exploreHR.org)
  • 3. 3www.exploreHR.orgHuman ResourceHuman ResourceManagement : An OverviewManagement : An Overview
  • 4. 4www.exploreHR.orgHR Management CycleHR Management CycleRecruitment &SelectionTraining &DevelopmentPerformanceManagementRewardManagementCareerManagement
  • 5. 5www.exploreHR.orgHR Strategy and Business ResultHR Strategy and Business ResultRecruitment &SelectionTraining &DevelopmentPerformanceManagementRewardManagementCareerManagementHRSTRATEGYBusinessBusinessStrategyStrategyBusinessBusinessResultResult
  • 6. 6www.exploreHR.orgManpower Planning &Employee Recruitment
  • 7. 7www.exploreHR.orgManpower PlanningManpower PlanningCompany StrategyCompany StrategyWhat staff do weneed to do thejob?What staff isavailable withinourorganization?Is there amatch?If not, what type of peopledo we need, and howshould we recruit them?Job Analysis• Performanceappraisal• Company databanks• Training• Employeemanagement anddevelopmentWhat is impacton wage andsalary program?
  • 8. 8www.exploreHR.orgManpower PlanningManpower PlanningThe financialThe financialresourcesresourcesavailable toavailable toyouryourorganizationorganizationFactors in Forecasting PersonnelFactors in Forecasting PersonnelRequirementsRequirementsProjectedProjectedturnover (as aturnover (as aresult ofresult ofresignation andresignation andterminations)terminations)Quality and nature ofQuality and nature ofyour employees (inyour employees (inrelation to what yourelation to what yousee as the changingsee as the changingneed of yourneed of yourorganization)organization)
  • 9. 9www.exploreHR.orgTechnique to Determine Number of RecruitsTechnique to Determine Number of Recruits• Study of a firm’s past employment needsover a period of years to predict futureneedsTrendAnalysisRatioAnalysis• A forecasting technique fordetermining future staff needs by usingratios between sales volume andnumber of employees needed
  • 10. 10www.exploreHR.orgRecruitment from External ResourcesRecruitment from External Resources• Recruiting new staff from external sources will be influencedby several factors, namely :When the economic conditions arerelatively difficult, there will usually bean oversupply, or the number ofapplicants will much higher than thedemand. In such a case, the companywill find it relatively easier to select newemployees from the large number ofapplicants.Macro-EconomicConditionsof a Nation
  • 11. 11www.exploreHR.orgWhen the sector is one that isconsidered a ‘rare’ sector, the companywill have more difficulty in recruitingstaff for this sector. For example,computer technology, or cellularengineering.Availabilityof Manpowerin DesiredSectorsRecruitment from External ResourcesRecruitment from External Resources
  • 12. 12www.exploreHR.orgIt will tend to be easier for a companyto find and recruit the best people ifthe company has a good reputation,therefore the best fresh graduates willflock to apply to the company.Example : Google, McKinsey orMicrosoft.CompanyReputationRecruitment from External ResourcesRecruitment from External Resources
  • 13. 13www.exploreHR.org• Some employers use a recruiting yield pyramid todetermine the number of applicants they must generateto 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 hiresRecruitment Yield PyramidRecruitment Yield Pyramid
  • 14. 14www.exploreHR.orgRecruitment SourcesRecruitment SourcesAdvertising (newspaper,magazine, internet)CollegeRecruitmentRecruitment Agent(headhunter)RecruitmentRecruitmentSourcesSources
  • 15. 15www.exploreHR.orgEmployee Selection
  • 16. 16www.exploreHR.orgBasic Concept of Selection TestsBasic Concept of Selection TestsThe quality of an employee selection test is determined bythree main factors, namely :1.1. Criterion Validity :Criterion Validity : A type of validity based on showingthat scores on the test (“predictors”) are related to jobperformance (“criterion”).2.2. Content Validity :Content Validity : A test that is “content valid” is one inwhich the test contains a fair sample of the tasks andskills actually needed for the job in question.3.3. ReliabilityReliability : The consistency of scores obtained by thesame person when retested with identical or equivalenttest.
  • 17. 17www.exploreHR.orgSome Types of Selection TestSome Types of Selection Test1. Cognitive Ability Test2. Personality Test3. Interview
  • 18. 18www.exploreHR.orgCognitive Ability TestCognitive Ability Test• Cognitive Abilities Tests: Paper and pencil orindividualized assessment measures of anindividuals general mental ability or intelligence.
  • 19. 19www.exploreHR.orgAdvantages of Cognitive Ability TestAdvantages of Cognitive Ability Test• highly reliable• verbal reasoning and numerical tests have shown highvalidity for a wide range of jobs• the validity rises with increasing complexity of the job• may be administered in group settings where manyapplicants can be tested at the same time• scoring of the tests may be completed by computerscanning equipment• lower cost than personality tests
  • 20. 20www.exploreHR.orgDisadvantages of Cognitive Ability TestDisadvantages of Cognitive Ability Test• non-minorities typically score one standard deviationabove minorities which may result in adverse impactdepending on how the scores are used in the selectionprocess• differences between males and females in abilities (e.g.,knowledge of mathematics) may negatively impact thescores of female applicants
  • 21. 21www.exploreHR.orgPersonality TestPersonality Test• Personality Tests: A selection procedure measurethe personality characteristics of applicants that arerelated to future job performance.• Personality tests typically measure one or more offive personality dimensions: extroversion,extroversion,emotional stability, agreeableness,emotional stability, agreeableness,conscientiousness, and openness to experience.conscientiousness, and openness to experience.
  • 22. 22www.exploreHR.orgAdvantages of Personality TestAdvantages of Personality Test• can result in lower turnover due if applicants are selectedfor traits that are highly correlated with employees whohave high longevity within the organization• can reveal more information about applicants abilitiesand interests• can identify interpersonal traits that may be needed forcertain jobs
  • 23. 23www.exploreHR.orgDisadvantages of Personality TestDisadvantages of Personality Test• difficult to measure personality traits that may not be welldefined• responses by applicant may be altered by applicantsdesire to respond in a way they feel would result in theirselection• lack of diversity if all selected applicants have samepersonality traits• lack of evidence to support validity of use of personalitytests
  • 24. 24www.exploreHR.orgInterviewInterview• Interviews: A selection procedure designed to predictfuture job performance on the basis of applicantsoral responses to oral inquiries.
  • 25. 25www.exploreHR.orgAdvantages of InterviewAdvantages of Interview• useful for determining if the applicant has requisitecommunicative or social skills which may be necessary forthe job• can assess the applicants job knowledge• can be used for selection among equally qualifiedapplicants• enables the supervisor and/or co-workers to determine ifthere is compatibility between the applicant and theemployees• allows the applicant to ask questions that may revealadditional information useful for making a selectiondecision
  • 26. 26www.exploreHR.orgDisadvantages of InterviewDisadvantages of Interview• subjective evaluations are made• decisions tend to be made within the first few minutes ofthe interview with the remainder of the interview used tovalidate or justify the original decision• interviewers form stereotypes concerning thecharacteristics required for success on the job• research has shown disproportionate rates of selectionbetween minority and non-minority members usinginterviews• negative information seems to be given more weight• not as reliable as tests
  • 27. 27www.exploreHR.orgTraining & Development
  • 28. 28www.exploreHR.orgTrainingNeedAnalysisTrainingObjectivesTrainingDeliveryTrainingEvaluationTraining ProcessTraining ProcessWhat arethe trainingneeds forthis personand/or job?Objectiveshould bemeasurableandobservableTechniquesinclude on-the-job-training,actionlearning, etc.Measurereaction,learning,behavior,and results
  • 29. 29www.exploreHR.orgAssessing Training NeedsAssessing Training NeedsTask Analysis A detailed analysis of a job toidentify the skills required, sothat an appropriate trainingprogram can be institutedCompetencyAnalysisCareful study of competency levelto identify a deficiency and thencorrect it with a training program, orsome other developmentintervention.
  • 30. 30www.exploreHR.orgCompetency AnalysisCompetency AnalysisRequiredcompetencylevel for certainpositionCompetencyGapCompetencyAssessmentCurrentcompetencylevel of theemployeeTraining andTraining andDevelopmentDevelopmentProgramProgram
  • 31. 31www.exploreHR.orgCompetency Profile Per PositionCompetency Profile Per Position1 2 3 4 5Communication SkillsPublic SpeakingLeadershipTraining Need AnalysisMaterial DevelopmentTraining EvaluationCommunication SkillsInterview SkillsAnalytical ThinkingUnderstand Selection ToolsTeamworkCustomer OrientationRecruitmentSupervisorRequired LevelRequired CompetencyPositionTraining &DevelopmentManagerScore RequiredCompetency Type
  • 32. 32www.exploreHR.orgPositionCompetencyRequirementsRelevant Training ModulesLeadership • Leadership I• Communication Skills I• The Art of Motivating Employees• Providing Effective FeedbackSUPERVISORAchievementOrientation• Goal Setting Technique• Work Motivation• Planning & Organizing• Continuous Self ImproevementManagerial competency 1 2 3 4Leadership Required LevelActual LevelAchievement OrientationTeamworkPlanning & OrganizingFunctional competency 1 2 3 4Mechanical EngineeringMechanical Equipment MaintenanceCompetency Profile Per PositionCompetency Profile Per Position
  • 33. 33www.exploreHR.orgTraining Matrix for Competency DevelopmentTraining Matrix for Competency DevelopmentCommunication Skills VLeadership VTeamwork VAchievement Orientation VCustomer Focus VJob Functional Skills VCommunication Skills VLeadership VTeamwork VAchievement Orientation VCustomer Focus VStrategic Thinking VProblem Solving & Decision Making VJob Functional Skills VPosition Managerial CompetencySupervisorManagerProductiveCommunicationSeriesOnBecomingEffectiveLeader1OnBecomingEffectiveLeader2ServiceExcellenceforCustomerProfessionalSeminarSeriesAchievementMotivationTrainingCreativeProblemSolvingStrategicManagementBuildingProductiveTeamworkV = compulsory trainingTraining Title
  • 34. 34www.exploreHR.orgEnhance Training EffectivenessEnhance Training EffectivenessMake theMake thematerialmaterialmeaningfulmeaningfulProvide forProvide fortransfer totransfer tolearninglearningMotivateMotivatethe traineethe traineeTrainingTrainingEffectivenessEffectiveness
  • 35. 35www.exploreHR.orgEnhance Training EffectivenessEnhance Training EffectivenessMake theMake thematerialmaterialmeaningfulmeaningful• At the start of training, provide thetrainees with a bird’s-eye view of thematerial to be presented. Knowing theoverall picture facilitates learning.• Use a variety of familiar examples whenpresenting material• Organize the material so that it ispresented in a logical manner and inmeaningful units• Try to use terms and concepts that arealready familiar to trainees• Use as many visual aids as possible
  • 36. 36www.exploreHR.orgEnhance Training EffectivenessEnhance Training EffectivenessProvide forProvide fortransfer totransfer tolearninglearning• Maximize similarity between the trainingsituation and the work situation• Provide adequate training practice• Identify each feature of the step in theprocess
  • 37. 37www.exploreHR.orgEnhance Training EffectivenessEnhance Training EffectivenessMotivateMotivatethe traineethe trainee• People learn best by doing. Try toprovide as much realistic practice aspossible• Trainees learn best when correctresponse on their part are immediatelyreinforced.• Trainees learn best when they learn attheir own pace. If possible, let traineespace themselves.
  • 38. 38www.exploreHR.orgType of Training ProgramType of Training ProgramFormal courseFormal courseOFF THE JOBOFF THE JOBSimulationSimulationWilderness TripWilderness Trip• Does not interfere with job• Provides for fact learning• Helps transfer of learning• Creates lifelike situations• Builds teams• Builds self-esteem
  • 39. 39www.exploreHR.orgType of Training ProgramType of Training ProgramJob instructionJob instructiontrainingtrainingON THE JOBON THE JOBApprenticeshipApprenticeshiptrainingtrainingJob rotationJob rotationMentoringMentoring• 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• Is integrated into job
  • 40. 40www.exploreHR.orgEvaluation of Training EffectivenessEvaluation of Training EffectivenessLevel 1 - ReactionLevel 2 - LearningLevel 3 – BehaviorApplicationLevel 4 – BusinessImpactFour LevelsFour Levelsof Trainingof TrainingEffectivenessEffectiveness
  • 41. 41www.exploreHR.orgEvaluation of Training EffectivenessEvaluation of Training EffectivenessTest the trainees to determine ifthey learned the principles,skills, and facts they were tolearn.Evaluate trainees’ reactions tothe program. Did they like theprogram? Did they think itworthwhile?Level 1 -Level 1 -ReactionReactionLevel 2 -Level 2 -LearningLearning
  • 42. 42www.exploreHR.orgEvaluation of Training EffectivenessEvaluation of Training EffectivenessWhat final results were achieved in terms of thetraining objectives previously set? Did the numberof customer complaints about employee drop? Didthe reject rate improve? Was turnover reduced,and so forth.Ask whether the trainees’ behavior on the jobchanged because of the training program. Forexample, are employees in the store’s complaintdepartment more courteous toward disgruntledcustomers than previously?Level 3 –Level 3 –BehaviorBehaviorApplicationApplicationLevel 4 –Level 4 –BusinessBusinessImpactImpact
  • 43. 43www.exploreHR.orgEmployeePerformance Management
  • 44. 44www.exploreHR.orgWhy Performance Appraisal?Why Performance Appraisal?• Appraisal provide information upon which promotion andsalary decision can be made.• Appraisal provide an opportunity for a manager andhis/her subordinates to sit down and review thesubordinate’s work-related behavior, and then develop aplan for corrective action.• Appraisal provide a good opportunity to review theperson’s career plans in light of his/her exhibitedstrengths and weaknesses.
  • 45. 45www.exploreHR.orgPerformance Management CyclePerformance Management CyclePerformancePlanning(SettingPerformanceTargets)RegularReview andMonitoringFeed backFeed backCorrectiveCorrectiveActionActionPerformanceAppraisal andEvaluation• Training &DevelopmentPlan• Salary/BonusAdjustment• CareerDevelopment
  • 46. 46www.exploreHR.orgPerformance Management CyclePerformance Management CycleDefiningDefiningPerformancePerformanceStandard/Standard/TargetsTargetsAppraisingAppraisingPerformancePerformanceProvidingProvidingFeedback forFeedback forDevelopmentDevelopment1.1. Defining the performanceDefining the performance standardsmeans making sure that you and yoursubordinate agree on his/her duties andtargets that you expect2.2. Appraising performanceAppraising performance meanscomparing your subordinate’s actualperformance to the standard/targets setin step one.3.3. Providing feedbackProviding feedback means discussingplans for any development that isrequired.
  • 47. 47www.exploreHR.orgProblems in Performance AppraisalProblems in Performance AppraisalLack ofLack ofstandardsstandardsIrrelevant orIrrelevant orsubjectivesubjectivestandardsstandardsPoorPoormeasures ofmeasures ofperformanceperformancePoorPoorfeedback tofeedback toemployeeemployeeNegativeNegativecommunicationcommunicationFailure toFailure toapplyapplyevaluationevaluationdatadataCommon Performance Evaluation ProblemsCommon Performance Evaluation Problems
  • 48. 48www.exploreHR.orgBias in the Appraisal ProcessBias in the Appraisal ProcessHaloHaloEffectEffectThe "halo" effect occurs when a supervisor’srating of a subordinates on one trait biases therating of that person on other traitsCentralCentralTendencyTendencyA tendency to rate all employees the sameway, such as rating them all average
  • 49. 49www.exploreHR.orgLeniencyLeniencyThe problem that occurs when a supervisoryhas a tendency to rate all subordinates eitherhigh or lowBiasBiasThe tendency to allow individual differencessuch as age, race, and sec affect the appraisalrates these employees receives.Bias in the Appraisal ProcessBias in the Appraisal Process
  • 50. 50www.exploreHR.orgPerformanceappraisalelementshas two maincategories: 2. Performance Result:Hard or quantitative aspectsof performance (result)1. Competencies: Itrepresents soft or qualitativeaspects of performance(process)Performance Appraisal ElementPerformance Appraisal Element
  • 51. 51www.exploreHR.org1.1. Competencies ScoreCompetencies Score2. Performance Result2. Performance ResultScoreScoreOverall ScoreOverall ScoreWill determine the employee’scareer movement, and alsothe reward to be earnedPerformance Appraisal ElementPerformance Appraisal Element
  • 52. 52www.exploreHR.orgElement # 1 : CompetenciesElement # 1 : CompetenciesBasic Intermediate Advanced ExpertActively listens, and clarifiesunderstanding where required, inorder to learn from others.Actively listens, and clarifiesunderstanding where required, inorder to learn from others.Actively listens, and clarifiesunderstanding where required, inorder to learn from others.Actively listens, and clarifies understandingwhere required, in order to learn from others.Empathise with audience andformulates messages accordingly.Empathise with audience andformulates messages accordingly.Empathise with audience andformulates messages accordingly.Empathise with audience and formulatesmessages accordingly.Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information.Responds promptly to other teammembers’ needs.Balances complementary strengthsin teams and seeks diversecontributions and perspectives.Actively builds internal and externalnetworks.Builds internal and external networks and usesthem to efficiently to create value.Involves teams in decisions thateffect them.Uses cross functional teams to drawupon skills and knowledgethroughout the organization.Uses cross functional teams to draw uponskills and knowledge throughout theorganization.Encourages co-operation rather thancompetition within the team and withkey stakeholders.Builds and maintains relationshipsacross The company.Drives and leads key relationship groupsacross The company.Manages alliance relationships throughcomplex issues such as points of competinginterest.Ensures events and systems, eg IT, forcollaboration are in place and used.Draws upon the full range of relationships(internal, external, cross The company) atcritical points in marketing and negotiations.Competency : CollaborationCompetency : Collaboration
  • 53. 53www.exploreHR.orgNo. Main Performance Target Target to beAchieved1 Conduct an assessment of the All employees submit their performance assessment formemployees performance on time2 Improve the system for Target : completed 100 %performance assessment in November 20083 Conduct training activities Target : to conduct 6 training modulesin one year4 Carry out on the job training Target : 90 % of the total employeesactivities who attend the trainingexperience an increasein skill and knowledgeElement # 2 : Performance ResultsElement # 2 : Performance ResultsTarget should be measurable andTarget should be measurable andspecificspecific
  • 54. 54www.exploreHR.orgEmployee CareerManagement
  • 55. 55www.exploreHR.orgCareer Planning and DevelopmentCareer Planning and DevelopmentProviding employeesProviding employeesthe assistance to formthe assistance to formrealistic career goalsrealistic career goalsand the opportunitiesand the opportunitiesto realize themto realize themCareerCareerPlanning &Planning &DevelopmentDevelopment
  • 56. 56www.exploreHR.orgEntry LevelEntry LevelFirst LineFirst LineMiddleMiddleManagementManagementSeniorSeniorManagementManagementTopTopManagementManagementJoin Company 22 years oldSupervisor/Ass. Manager 26 - 29 years oldManagers 29 - 35 years oldGM/Senior Managers 35 - 45 years oldCEO/BOD 45 - 55 years oldTypical Career movementTypical Career movement
  • 57. 57www.exploreHR.orgCareer StageCareer StageTrial Stage The period from about age 25 to 30 duringwhich the person determines whether ornot the chosen field is suitable and if it isnot, attempts to change it.StabilizationStageThe period, roughly from age 30 to 40,during which occupational goals are setand more explicit career planning is madeto determine the sequence foraccomplishing goals
  • 58. 58www.exploreHR.orgMid careerCrisis StageThe period occurring between the mid-thirties and mid-forties during which peopleoften make a major reassessment of theirprogress relative to their original careerambitions and goalsMaintenanceStageThe period form about ages 45 to 65 duringwhich the person secures his or her placein the world of workCareer StageCareer Stage
  • 59. 59www.exploreHR.orgDecline Stage The period during which many people arefaced with the prospect of having to acceptreduced levels of power and responsibility.Career StageCareer Stage
  • 60. 60www.exploreHR.orgCareer AnchorsCareer AnchorsCareer Anchor :A concern or value that someone will not give up ifchoice has to be madeCareer anchors, as their name implies, are thepivots around which a person’s career swings; aperson becomes conscious of them as a result oflearning about his or her talents and abilities.
  • 61. 61www.exploreHR.orgFive Career AnchorsFive Career AnchorsTechnical/Technical/FunctionalFunctionalCareer AnchorCareer AnchorManagerialManagerialCompetence as aCompetence as aCareer AnchorCareer AnchorCreativity as aCreativity as aCareer AnchorCareer AnchorAutonomy andAutonomy andIndependence asIndependence asCareer AnchorCareer AnchorSecurity as aSecurity as aCareer AnchorCareer Anchor
  • 62. 62www.exploreHR.orgFive Career AnchorsFive Career AnchorsTechnical/Technical/FunctionalFunctionalCareer AnchorCareer Anchor• People who have a strongtechnical/functional career anchortend to avoid decisions that woulddrive them toward generalmanagement.• Instead, they make decisions that willenable them to remain and grow intheir chosen technical or functionalfield
  • 63. 63www.exploreHR.orgFive Career AnchorsFive Career AnchorsManagerialManagerialCompetenceCompetence• People who show strong motivationto become managers• Their career experience enablesthem to believe that they have theskills and values necessary to rise tosuch general management position
  • 64. 64www.exploreHR.orgFive Career AnchorsFive Career AnchorsCreativityCreativity• People who go on to becomesuccessful entrepreneurs• These people seem to have a need tobuild or create something that isentirely their own product – a productor process that bears their name, acompany of their own, or a personalfortune that reflects theiraccomplishments.
  • 65. 65www.exploreHR.orgFive Career AnchorsFive Career AnchorsAutonomy andAutonomy andIndependenceIndependence• People who are driven by the need tobe on their own, free from thedependence that can arise when aperson elects to work in a largeorganization.• Some of these people decide tobecome consultants, working eitheralone or as part of relatively smallfirm. Others choose to becomeprofessors, free-lance writers, orproprietors of a small retail business.
  • 66. 66www.exploreHR.orgFive Career AnchorsFive Career AnchorsSecuritySecurity• People who are mostly concern withlong-run career stability and jobsecurity.• They seem willing to do what isrequired to maintain job security, adecent income, and a stable future inthe form of a good retirementprogram and benefits.
  • 67. 67www.exploreHR.orgCareer Management and the FirstCareer Management and the FirstAssignmentAssignment• Factors to keep in mind about the important firstassignment, include :1. Avoid reality shock (reality shock refers to the resultof a period that may occur at the initial career entrywhen the new employee’s high job expectationsconfront the reality of boring, unchallenging jobs.2. Provide challenging initial jobs3. Provide realistic job preview in recruiting4. Be demanding
  • 68. 68www.exploreHR.orgCareer Management and the FirstCareer Management and the FirstAssignmentAssignment5. Provide periodic job rotation6. Provide career-oriented performance appraisals7. Encourage career-planning activities
  • 69. 69www.exploreHR.orgRecommended Further ReadingsRecommended Further Readings1. Gary Dessler, Human resource Management, Prentice Hall2. Susan Jackson and Randall Schuler, Managing Human Resource : APartnership Perspective, South-Western College Publishing
  • 70. 70www.exploreHR.orgEnd of MaterialIf you find this presentation useful, please considertelling others about our site (www.exploreHR.org)(www.exploreHR.org)