Principles of hr management


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Principles of hr management

  1. 1. Principles of HR 1
  2. 2. Training Agenda 1. HR Management : An Overview 2. HR Planning and Recruitment 3. Employee Selection 4. Training and Development 5. Performance Management 6. Career Management If you find this presentation useful, please telling others about our site ( 2
  3. 3. Human Resource Management : An 3
  4. 4. HR Management Cycle Recruitment & Training & Performance Selection Development Management Reward Management Career 4
  5. 5. HR Strategy and Business Result Recruitment & Selection Training & Performance Business Development Management Business Strategy Result HR STRATEGY Reward Career Management 5
  6. 6. Manpower Planning & Employee 6
  7. 7. Manpower Planning Company Strategy Job Analysis What staff do we What staff is • Performance need to do the available within appraisal job? our • Company data organization? banks • Training Is there a • Employee match? management and What is impact development on wage and salary program? If not, what type of people do we need, and how should we recruit them? 7
  8. 8. Manpower Planning Factors in Forecasting Personnel Requirements Projected Quality and nature of The financial turnover (as a your employees (in resources result of relation to what you available to resignation and see as the changing your terminations) need of your organization organization) 8
  9. 9. Technique to Determine Number of Recruits Trend • Study of a firm’s past employment needs Analysis over a period of years to predict future needs Ratio • A forecasting technique for Analysis determining future staff needs by using ratios between sales volume and number of employees 9
  10. 10. Recruitment from External Resources • Recruiting new staff from external sources will be influenced by several factors, namely : When the economic conditions are Macro- relatively difficult, there will usually be Economic an oversupply, or the number of Conditions applicants will much higher than the of a Nation demand. In such a case, the company will find it relatively easier to select new employees from the large number of 10
  11. 11. Recruitment from External Resources When the sector is one that is Availability considered a ‘rare’ sector, the company of Manpower will have more difficulty in recruiting in Desired staff for this sector. For example, Sectors computer technology, or cellular 11
  12. 12. Recruitment from External Resources It will tend to be easier for a company Company to find and recruit the best people if Reputation the company has a good reputation, therefore the best fresh graduates will flock to apply to the company. Example : Google, McKinsey or 12
  13. 13. Recruitment Yield Pyramid • 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 13
  14. 14. Recruitment Sources Advertising (newspaper, magazine, internet) Recruitment College Sources Recruitment Recruitment Agent (headhunter) 14
  15. 15. Employee 15
  16. 16. Basic Concept of Selection Tests The quality of an employee selection test is determined by three main factors, namely : 1. Criterion Validity : A type of validity based on showing that scores on the test (“predictors”) are related to job performance (“criterion”). 2. Content Validity : A test that is “content valid” is one in which the test contains a fair sample of the tasks and skills actually needed for the job in question. 3. Reliability : The consistency of scores obtained by the same person when retested with identical or equivalent 16
  17. 17. Some Types of Selection Test 1. Cognitive Ability Test 2. Personality Test 3. 17
  18. 18. Cognitive Ability Test • Cognitive Abilities Tests: Paper and pencil or individualized assessment measures of an individuals general mental ability or 18
  19. 19. 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 • lower cost than personality 19
  20. 20. 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 20
  21. 21. 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, emotional stability, agreeableness, conscientiousness, and openness to 21
  22. 22. 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 applicants abilities and interests • can identify interpersonal traits that may be needed for certain 22
  23. 23. Disadvantages of Personality Test • difficult to measure personality traits that may not be well defined • responses by applicant may be altered by applicants 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 23
  24. 24. Interview • Interviews: A selection procedure designed to predict future job performance on the basis of applicants oral responses to oral 24
  25. 25. 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 applicants 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 25
  26. 26. 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 26
  27. 27. Training & 27
  28. 28. Training Process Training Training Training Training Need Objectives Evaluation Delivery Analysis What are Objective Techniques Measure the training should be include on- reaction, needs for measurable the-job- learning, this person and training, behavior, and/or job? observable action and results learning, 28
  29. 29. 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 Careful study of competency level Analysis to identify a deficiency and then correct it with a training program, or some other development 29
  30. 30. Competency Analysis Current Competency Required competency Gap competency level of the level for certain employee position Competency Training and Assessment Development 30
  31. 31. Competency Profile Per Position Required Level Position Required Competency 1 2 3 4 5 Communication Skills Public Speaking Training & Leadership Development Manager Training Need Analysis Material Development Training Evaluation Communication Skills Interview Skills Recruitment Analytical Thinking Supervisor Understand Selection Tools Teamwork Customer Orientation Score Required Competency 31
  32. 32. Competency Profile Per Position 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 Position Relevant Training Modules Requirements • Leadership I SUPERVISOR Leadership • Communication Skills I • The Art of Motivating Employees • Providing Effective Feedback • Goal Setting Technique Achievement Orientation • Work Motivation • Planning & Organizing • Continuous Self 32
  33. 33. Training Matrix for Competency Development Service Excellence Building Productive Motivation Training Effective Leader 1 Effective Leader 2 Creative Problem Communication Seminar Series On Becoming On Becoming Achievement for Customer Management Professional Productive Teamwork Strategic Training Title Solving Series Position Managerial Competency Communication Skills V Leadership V Teamwork V Supervisor Achievement Orientation V Customer Focus V Job Functional Skills V Communication Skills V Leadership V Teamwork V Achievement Orientation V Manager Customer Focus V Strategic Thinking V Problem Solving & Decision Making V Job Functional Skills V V = compulsory 33
  34. 34. Enhance Training Effectiveness Make the material meaningful Provide for Training transfer to Effectiveness learning Motivate the 34
  35. 35. Enhance Training Effectiveness • At the start of training, provide the Make the material trainees with a bird’s-eye view of the meaningful 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 • Use as many visual aids as 35
  36. 36. Enhance Training Effectiveness • Maximize similarity between the training Provide for transfer to situation and the work situation learning • Provide adequate training practice • Identify each feature of the step in the 36
  37. 37. Enhance Training Effectiveness • People learn best by doing. Try to Motivate the trainee 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 37
  38. 38. Type of Training Program OFF THE JOB Formal course • Does not interfere with job • Provides for fact learning Simulation • Helps transfer of learning • Creates lifelike situations Wilderness Trip • Builds teams • Builds 38
  39. 39. Type of Training Program ON THE JOB Job instruction • Facilitates transfer of learning training • Does not require separate facilities Apprenticeship • Does not interfere with real job performance training • Provides extensive training Job rotation • Gives exposure to many jobs • Allows real learning Mentoring • Is informal • Is integrated into 39
  40. 40. Evaluation of Training Effectiveness Level 1 - Reaction Level 2 - Learning Four Levels of Training Level 3 – Behavior Effectiveness Application Level 4 – Business 40
  41. 41. Evaluation of Training Effectiveness Evaluate trainees’ reactions to Level 1 - the program. Did they like the Reaction program? Did they think it worthwhile? Test the trainees to determine if Level 2 - they learned the principles, Learning skills, and facts they were to 41
  42. 42. Evaluation of Training Effectiveness Ask whether the trainees’ behavior on the job Level 3 – changed because of the training program. For Behavior example, are employees in the store’s complaint Application department more courteous toward disgruntled customers than previously? What final results were achieved in terms of the Level 4 – training objectives previously set? Did the number Business of customer complaints about employee drop? Did Impact the reject rate improve? Was turnover reduced, and so 42
  43. 43. Employee Performance 43
  44. 44. 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 44
  45. 45. Performance Management Cycle Performance Regular Feed back Planning Review and (Setting Monitoring Performance Corrective Targets) Action • Training & Development Performance Plan Appraisal and • Salary/Bonus Evaluation Adjustment • Career 45
  46. 46. Performance Management Cycle Defining 1. Defining the performance standards Performance means making sure that you and your Standard/ subordinate agree on his/her duties and Targets targets that you expect Appraising 2. Appraising performance means Performance comparing your subordinate’s actual performance to the standard/targets set in step one. Providing 3. Providing feedback means discussing Feedback for plans for any development that is Development 46
  47. 47. Problems in Performance Appraisal Poor Poor Lack of feedback to measures of standards employee performance Irrelevant or Failure to Negative subjective apply communication standards evaluation data Common Performance Evaluation 47
  48. 48. Bias in the Appraisal Process The "halo" effect occurs when a supervisor’s Halo rating of a subordinates on one trait biases the Effect rating of that person on other traits A tendency to rate all employees the same Central way, such as rating them all average 48
  49. 49. Bias in the Appraisal Process The problem that occurs when a supervisory Leniency has a tendency to rate all subordinates either high or low The tendency to allow individual differences Bias such as age, race, and sec affect the appraisal rates these employees 49
  50. 50. Performance Appraisal Element 1. Competencies: It represents soft or qualitative Performance aspects of performance appraisal (process) elements has two main categories: 2. Performance Result: Hard or quantitative aspects of performance (result) 50
  51. 51. Performance Appraisal Element 1. Competencies Score Overall Score 2. Performance Result Score Will determine the employee’s career movement, and also the reward to be 51
  52. 52. Element # 1 : Competencies Competency : Collaboration Basic Intermediate Advanced Expert Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies understanding understanding where required, in understanding where required, in understanding where required, in where required, in order to learn from others. order to learn from others. order to learn from others. order to learn from others. Empathise with audience and Empathise with audience and Empathise with audience and Empathise with audience and formulates formulates messages accordingly. formulates messages accordingly. formulates messages accordingly. messages accordingly. Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information. Responds promptly to other team Balances complementary strengths Actively builds internal and external Builds internal and external networks and uses members’ needs. in teams and seeks diverse networks. them to efficiently to create value. contributions and perspectives. Involves teams in decisions that Uses cross functional teams to draw Uses cross functional teams to draw upon effect them. upon skills and knowledge skills and knowledge throughout the throughout the organization. organization. Encourages co-operation rather than Builds and maintains relationships Drives and leads key relationship groups competition within the team and with across The company. across The company. key stakeholders. 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 52
  53. 53. Element # 2 : Performance Results No. Main Performance Target Target to be Achieved 1 Conduct an assessment of the All employees submit their performance assessment form employees 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 Target should be measurable and 53
  54. 54. Employee Career 54
  55. 55. Career Planning and Development Providing employees Career the assistance to form Planning & realistic career goals Development and the opportunities to realize 55
  56. 56. Typical Career movement Entry Level Join Company 22 years old First Line Supervisor/Ass. Manager 26 - 29 years old Middle Managers 29 - 35 years old Management Senior GM/Senior Managers 35 - 45 years old Management Top CEO/BOD 45 - 55 years old 56
  57. 57. 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 The period, roughly from age 30 to 40, Stage during which occupational goals are set and more explicit career planning is made to determine the sequence for accomplishing 57
  58. 58. Career Stage Mid career The period occurring between the mid- Crisis Stage thirties and mid-forties during which people often make a major reassessment of their progress relative to their original career ambitions and goals Maintenance The period form about ages 45 to 65 during Stage which the person secures his or her place in the world of 58
  59. 59. Career Stage Decline Stage The period during which many people are faced with the prospect of having to accept reduced levels of power and 59
  60. 60. 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 60
  61. 61. Five Career Anchors Technical/ Managerial Creativity as a Functional Competence as a Career Anchor Career Anchor Career Anchor Autonomy and Security as a Independence as Career Anchor Career 61
  62. 62. Five Career Anchors • People who have a strong Technical/ technical/functional career anchor 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 62
  63. 63. Five Career Anchors • People who show strong motivation Managerial to become managers Competence • Their career experience enables them to believe that they have the skills and values necessary to rise to such general management 63
  64. 64. Five Career Anchors • People who go on to become Creativity 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 64
  65. 65. Five Career Anchors • People who are driven by the need to Autonomy and be on their own, free from the Independence 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 proprietors of a small retail 65
  66. 66. Five Career Anchors • People who are mostly concern with Security 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 program and 66
  67. 67. Career Management and the First 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 67
  68. 68. Career Management and the First Assignment 5. Provide periodic job rotation 6. Provide career-oriented performance appraisals 7. Encourage career-planning 68
  69. 69. Recommended Further Readings 1. Gary Dessler, Human resource Management, Prentice Hall 2. Susan Jackson and Randall Schuler, Managing Human Resource : A Partnership Perspective, South-Western College 69
  70. 70. End of Material If you find this presentation useful, please consider telling others about our site ( 70