HRM Process: Identifying, Selecting, Training and Retaining Employees

Copyright ©2013 Pearson Education, Inc.
publishing as Prentice Hall
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Learning Outcomes
After studying this chapter, you will be able to:
Describe the key components of the human resource
management process
Discuss the tasks associated with identifying and
selecting competent employees.
Explain how employees are provided with needed
skills and knowledge.
Describe strategies for retaining competent, high-
performing employees.
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Human Resource
Management (HRM)
is the management function
concerned with
getting, training, motivating, a
nd keeping competent
employees.

HRM Process
Identification and selection of a competent
employees:
1. employment planning
2. recruitment and downsizing
3. Selection
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HRM Process (cont.)
Adapted and competent employees with up-to-date
knowledge and ability
4. orientation
5. training.
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HRM Process (cont.)
Competent and high performance employees who
are capable of sustaining high performance over
the long term
6. performance appraisal,
7. compensation and benefits
8. safety and health
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Identifying and Selecting
Employees

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 (1) Employment
planning
 (2) Recruitment
and downsizing
 (3) Candidate
selection

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o (1) Employment planning :
is the process by which managers ensure that they have the
right number and kinds of people in the right places at the
right times,

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oThis process (Employment planning) translates the
organization’s mission and goals into an HR plan that allows
the organization to achieve those goals by:
oAssessing current and future human resource
needs, and
o Developing a plan to meet those needs.

Conducting Employee
Assessments
Assessing current and
future human resource
needs, and
Developing a plan to
meet those needs
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Assessing current and future
human resource needs by..
human resource inventory:
which generally lists the name, education, training, prior
employment, languages spoken, capabilities, and specialized
skills of each employee in the organization.
job analysis:
a process in which workflows are analyzed and the skills and
behaviors necessary to perform jobs are identified.
The job analysis helps determine the kinds of
skills, knowledge, and attitudes needed to successfully
perform each job.
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Assessing current and future
human resource needs by..
A job description
is a written statement that describes what a job holder
does, how it’s done, and why it’s done. It typically includes
job content, job environment, and conditions of
employment.
Job specification
states the minimum qualifications that a person must
possess to perform a given job successfully. It identifies
the knowledge, skills, and attitudes needed to do the job
effectively.
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o (2) Recruitment and downsizing
o Recruitment is: The process of identifying and hiring
the best-qualified candidate (from within or outside of an
organization) for a job vacancy, in a most timely and cost
effective manner.
oDownsizing: occurs when a company permanently
reduces its workforce, poor economic conditions or the
company’s need to cut jobs in order to lower costs or
maintain profitability

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Recruiting Applicants
There are multiple sources
of applicants,
The source used should
reflect the local labor market,
the type or level of position,
and the size of the
organization.

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Source Advantage Disadvantage
Internal search
Low cost, build employee
moral, candidates are
familiar with organization
Limited supply , generate
many unqualified candidates
, may not increase the
diversity and mix employees
Advertisements
Wide distribution can be
targeted to specific group
generate many unqualified
candidates.
Employee referrals
Generate strong candidates
because a good referral
reflects on recommender ,
May not increase the
diversity and mix employees
Public employment agencies
(Hafiz) etc.
Free or nominal cost
Candidates tend to be lower
skilled, though some skilled
employees available
Privet employment
Wide contacts, carful
screening ,short-term
guarantees often given
High cost
School placement
Large, centralized body of
candidates
Limited to entry level
positions

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Handling Layoffs
or Downsizing
most global organizations, and
some small businesses have been
forced to shrink the size of their
workforce or restructure their
skill composition during the last
several years.
Downsizing has become a
relevant strategy for meeting the
demands of a dynamic
environment.

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o(3) Candidate selection
o seeks to predict which applicants will be “successful” if
hired, who will perform well on the criteria the
organization uses to evaluate it’s employees
o Screening job applicants to ensure that the most
appropriate candidates are hired.

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Selecting Job Applicants
The major intent of any selection
activity is to reduce the
probability of making reject
errors and accept errors while
increasing the probability of
making correct decisions.
We do this by using reliable and
valid selection procedures

Reliability and Validity
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Reliability
The degree to which
selection device measures
the same thing consistently
Validity
The proven relationship
between a selection device
and some relevant measure.
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application forms, tests, interviews, or
physical examinations all must possess an
acceptable level of consistency

Selection Devices: Tests
and Interviews
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o Written tests
oPerformance-simulation
tests
o Interviews.
Are The best-known Selection
Devices Managers use.

Effective Interviewing
Techniques
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potential biases can creep into interviews if they’re not
well structured and standardized.
The following are highlights from potential biases
• The interviewer tends to hold a stereotype of what
represents a good applicant.
• The interviewer tends to favor applicants who share his
or her own attitudes.
• The order in which applicants are interviewed will
influence evaluations.

“Closing the Deal”
Realistic job preview
(RJP):
which includes both positive
and negative information
about the job and the
company
To increase job satisfaction
among employees and
reduce turnover
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“Closing the Deal”
Remember:
It’s just as important to
retain good people as it is
to hire them in the first
place.
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Providing Skills and
Knowledge
Successful job performance requires more than
having certain skills. New hires must be
acclimated to the organization’s culture, trained,
and given the knowledge to do the job in line
with the organization’s goals.
To achieve this, HRM uses orientation and
training.
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Orientation process
introduces new hires to the
organization. The major
goals are to:
Reduce the initial anxiety
all new employees feel as
they begin a new job
Familiarize new
employees with the
job, the work unit, and
the organization as a
whole, and
Employee training
is a learning experience that
seeks a relatively permanent
change in employees by
improving their ability to
perform on the job.
Training may involve what
employees know, how they
work, or their attitudes
toward their
jobs, coworkers, managers, a
nd the organization.
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Retaining Competent
Employees
Retaining employees, especially
competent, high-performing
employees, is essential.
2 HRM activities that play a role in this
are:
1 Managing employee performance
2Developing an appropriate
compensation and benefits program.
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Retaining Competent
Employees
critical incidents
focuses on critical or key behaviors.
adjective rating scales.
lists a set of performance factors such as quantity
and quality of work, job
knowledge, loyalty, attendance, etc.and rates
each factor on an incremental scale.
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Retaining Competent
Employees
behaviorally anchored rating scales (BARS).
combine major elements from the critical incident and
adjective rating scale approaches
360-degree appraisal
seeks performance feedback from multiple
sources, such as the person being
rated, bosses, peers, team members, customers, and
suppliers
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Retaining Competent
Employees
Management by objectives (MBO)
Employees are evaluated by how well they
accomplish a specific set of objectives that is
critical to the successful completion of their
jobs objectives that are tangible, verifiable, and
measurable.
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Retaining Competent
Employees
appraisal methods
They require us to evaluate employees on the basis
of how well their performance matches
established or absolute criteria
compare one person’s performance with that of
one or more other individuals
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Addressing Poor
Performance
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What if employee isn’t meeting
his performance goals
Manager needs to find
out WHY ?
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So what is HRM in brief ?
http://www.youtube.com/watch?v=9ZLbSk1Te68
Enjoy watching this 2 min video 
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HRM Process: Identifying, Selecting, Training and Retaining Employees

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