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Organizational Behavior - Session8


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Organizational Behavior

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Organizational Behavior - Session8

  1. 1. Human Resource Policies and Practices Lecturer: Do Tien Long 09 04 51 54 46 [email_address]
  2. 2. Learning objectives <ul><li>Explain nature of human resource management (HRM), and contrast this with personnel management </li></ul><ul><li>Analyze HRM policies, activities </li></ul><ul><li>Human resource planning, recruitment and selection </li></ul><ul><li>Importance of training and development </li></ul><ul><li>Explain the system of performance appraisal </li></ul><ul><li>Nature of employee relations </li></ul>
  3. 3. Human resource management <ul><li>An essential part of the process of management is that proper attention be given to the efficient use of resources, in particular human resources </li></ul><ul><li>The efficiency & performance of staff & their commitment to organisational objectives are fostered by good human relationships at work </li></ul>
  4. 4. The significance of HR <ul><li>As the basis of her ‘living strategy’ Gratton proposes – </li></ul><ul><li>There are fundamental differences between people as an asset & the traditional assets of finance or technology </li></ul><ul><li>An understanding of fundamental differences creates a new way of thinking & working in organisations: a shift in mind-set </li></ul><ul><li>Business strategies can only be realised through people </li></ul><ul><li>Creating a strategic approach to people necessitates a strong dialogue across the organisation </li></ul>
  5. 5. Human resource management or personnel management? <ul><li>The discussion generally centres on the extent to which HRM is a new & distinctive philosophy with a particular paradigm shift towards a more strategic approach to people management </li></ul><ul><li>or </li></ul><ul><li>New wine in old bottles – HRM is no more than a different term for what good personnel managers have always been doing </li></ul>
  6. 6. Human Resource Management (HRM) <ul><li>Involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the organization </li></ul><ul><li>Fisher et al. </li></ul>
  7. 7. Defining HRM <ul><li>The design, implementation & maintenance of strategies to manage people for optimum business performance including the development of policies & processes to support these strategies </li></ul><ul><li>CIPD </li></ul>
  8. 8. Defining HRM <ul><li>Organisations that get the people thing right are the organisations that are likely to be around in the future </li></ul><ul><li>Delaney </li></ul>
  9. 9. A strategic approach <ul><li>The strategic use of human resources will help managers to contribute to the release of true value by the optimum use of people’s competencies </li></ul><ul><li>A strategic HR approach requires that the needs & talents of employees become matched with organisational goals </li></ul>
  10. 10. HRM policies & practices <ul><li>The formulation of HRM policies & implementation of personnel practices & procedures should be based on underlying philosophies of managing behaviour & employee relationships </li></ul>
  11. 11. Range of HRM policies & practices <ul><li>Human resource planning </li></ul><ul><li>Recruitment, selection & induction </li></ul><ul><li>Salary & wage administration </li></ul><ul><li>Organisational design & patterns of work </li></ul><ul><li>Education, training & development </li></ul><ul><li>Employee relations </li></ul><ul><li>Employee services, welfare and health & safety </li></ul>
  12. 12. Ethical frameworks for judging personnel practices <ul><li>Basic right – to be consulted on all matters affecting the individual at work </li></ul><ul><li>Organisational justice – fairness in treatment, equality of opportunity & equity </li></ul><ul><li>Universalism – acknowledging respect for the individual </li></ul><ul><li>Community of purpose – recognition of how organisational decision-making affects different groups & stakeholders </li></ul><ul><li>Winstanley et al. </li></ul>
  13. 13. HRM – a shared responsibility
  14. 14. Approach taken by M&S <ul><li>Every manager is a personnel manager </li></ul><ul><li>Every director is a personnel director </li></ul><ul><li>A strong, well-trained team of personnel staff provide support, training, guidance & advice to management at all levels </li></ul>
  15. 15. To deliver organisational excellence HRM needs to become – <ul><li>A partner with senior & line managers in strategy execution </li></ul><ul><li>An expert in the way work is organised & executed to ensure costs are reduced & quality is maintained </li></ul><ul><li>A champion for employees, representing their concerns to senior management </li></ul><ul><li>An agent of continuous transformation </li></ul><ul><li>Ulrich </li></ul>
  16. 16. People management – impact on profits <ul><li>Is critical to business performance </li></ul><ul><li>Companies where employees have high levels of job satisfaction & commitment showed improving financial performance </li></ul><ul><li>HR practices explained nearly one-fifth of the variation between companies in productivity and profitability </li></ul><ul><li>CIPD </li></ul>
  17. 17. Resourcing the organisation Whose concern is this? <ul><li>Managers & supervisors should have some say in the appointment of own staff </li></ul><ul><li>Recruitment & selection of staff can be regarded as a specialist activity but all managers should be well acquainted with the basic procedures & skills involved & have access to HR department for advice </li></ul>
  18. 18. Prerequisites for an effective recruitment & selection policy <ul><li>The clarification of corporate objectives </li></ul><ul><li>Design of an effective structure </li></ul><ul><li>A system of human resource planning </li></ul>
  19. 19. HR planning <ul><li>A strategy for the acquisition, utilisation, improvement & retention of an organisation’s human resources </li></ul>
  20. 20. Main HR planning stages <ul><li>Analysis of existing staffing resources </li></ul><ul><li>Estimating likely changes in resources by the target date </li></ul><ul><li>Forecasting staffing requirements necessary to achieve corporate objectives by the target date </li></ul><ul><li>Measuring the required staffing resources available as & when required </li></ul>
  21. 21. Main stages in HR planning
  22. 22. Value of HR planning <ul><li>Foresee changes & identify trends in staffing resources </li></ul><ul><li>Adopt personnel policies that help to avoid major problems </li></ul><ul><li>Reconcile differences between supply & demand </li></ul><ul><li>Provides framework in which action can be taken to overcome staffing differences </li></ul>
  23. 23. Value of HR planning <ul><li>Continuous process that seeks to ensure flexible resourcing related to internal/external environmental influences </li></ul><ul><li>Can help anticipate potential future difficulties while there is still a choice of action </li></ul>
  24. 24. Recruitment & selection of staff
  25. 25. Job analysis <ul><li>The total process by which a job description & a person specification are produced </li></ul>
  26. 26. Possible contents of a job description
  27. 27. Person specification <ul><li>Document that gives information about the job, providing a blueprint of the ideal person to do the job & the personal attributes & qualities associated with successful performance </li></ul>
  28. 28. Attracting suitable candidates - sources <ul><li>Employment services – job centres/agencies </li></ul><ul><li>Careers advisory offices </li></ul><ul><li>Schools/colleges/universities </li></ul><ul><li>Private employment agencies </li></ul><ul><li>Professional & executive appointment registers </li></ul><ul><li>Ex-service organisations </li></ul><ul><li>Personal introductions </li></ul><ul><li>Exhibitions for mass recruitment </li></ul><ul><li>Advertising </li></ul><ul><li>Headhunting – executive searches </li></ul>
  29. 29. Methods of selection <ul><li>Short-listing </li></ul><ul><li>Graphology </li></ul><ul><li>Peer rating </li></ul><ul><li>In-tray exercises </li></ul><ul><li>Selection tests </li></ul><ul><li>Peer questionnaires </li></ul><ul><li>Assessment centres </li></ul>
  30. 30. The selection interview <ul><li>Despite constant criticisms the interview is usually a central & indispensable element of the selection process and is still a widely used method of selection </li></ul>
  31. 31. Interview style <ul><li>Behavioural interviews – questions about how candidates have handled past situations </li></ul><ul><li>Situational interviews – posing hypothetical, future-oriented questions to help assess future job performance </li></ul>
  32. 32. Interview considerations <ul><li>Seating arrangements </li></ul><ul><li>Types of questions to ask </li></ul><ul><li>Purpose of questions </li></ul>
  33. 33. Interview questions Leading Time keeping is important. Are you a good time keeper? I guess you regret that now, do you?
  34. 34. Interview questions Open What made you decide to ……….? How did you happen to………….?
  35. 35. Interview questions Direct / closed What grades did you get in each of your A- level subjects? Exactly how many staff report directly to you?
  36. 36. Interview questions Reflective remark You appear to prefer working in a busy office It seems that you do not respond well to personal criticism
  37. 37. Selection decision – grading schemes
  38. 38. Benefits of training <ul><li>Training can: </li></ul><ul><li>Increase confidence, motivation, & commitment of staff </li></ul><ul><li>Provide recognition, enhanced responsibility, & the possibility of increased pay & promotion </li></ul><ul><li>Give a feeling of personal satisfaction & achievement, & broaden opportunities for career progression </li></ul><ul><li>Help to improve the availability, quality & skills of staff </li></ul>
  39. 39. A planned & systematic approach to training <ul><li>Clear commitment to training throughout all levels of the organisation </li></ul><ul><li>An objective assessment of training needs </li></ul><ul><li>Staff themselves should feel a sense of involvement </li></ul><ul><li>A clear set of objectives & a defined policy for training </li></ul><ul><li>Planned training programmes </li></ul>
  40. 40. A planned & systematic approach to training <ul><li>Choice of the most appropriate methods of training </li></ul><ul><li>External courses & training opportunities linked to the educational system </li></ul><ul><li>Regard given to the training needs of those groups who are not currently active in the workforce </li></ul><ul><li>An effective system of review & evaluation </li></ul><ul><li>Evaluation related to objective, measurable factors </li></ul>
  41. 41. Areas of training <ul><li>With the rapidly changing nature of the business world and the need to maintain competitive advantage, organisations need to ensure that staff are fully trained in – </li></ul><ul><li>Knowledge of their products/services </li></ul><ul><li>Technical skills </li></ul><ul><li>Human relations skills </li></ul><ul><li>How to work with maximum effect </li></ul>
  42. 42. Growth of e-learning <ul><li>Learning via technology </li></ul><ul><li>Offers opportunities to provide a standard message to large numbers of geographically-dispersed people </li></ul><ul><li>Provides minimum disruption to people’s working lives & private lives </li></ul><ul><li>Can reduce costs where large numbers of learners are involved </li></ul><ul><li>Can be more accessible than other forms of training methodologies </li></ul>
  43. 43. Investors in People <ul><li>A standard for the training & development of people within an organisation </li></ul><ul><li>Launched in 1991 by the Department of Employment </li></ul><ul><li>Seeks to reward organisations that achieve prescribed standards </li></ul><ul><li>Provides a framework for improving business performance & competitiveness </li></ul><ul><li>Standard held for 3 years after which organisation is required to go through external assessment again </li></ul>
  44. 44. Investors in People <ul><li>The standard is based on the following principles: </li></ul><ul><li>Public commitment from the top to invest & develop people to achieve business goals </li></ul><ul><li>Planning how individuals & teams will be developed </li></ul><ul><li>Taking relevant action to meet training & development needs </li></ul><ul><li>Evaluating the outcomes of training & development </li></ul>
  45. 45. Overview of performance appraisal
  46. 46. Benefits to appraisal <ul><li>Can identify individual’s strengths & areas of development </li></ul><ul><li>Can indicate how strengths can be utilised & weaknesses overcome </li></ul><ul><li>Can help reveal problems that may be restricting progress </li></ul><ul><li>Can develop a greater degree of consistency through regular feedback </li></ul><ul><li>Can provide information for HR planning </li></ul><ul><li>Can improve communications </li></ul>
  47. 47. Performance appraisal & psychological principles <ul><li>People work / learn / achieve more when they are given - </li></ul><ul><li>Adequate feedback as to their performance </li></ul><ul><li>Clear attainable goals </li></ul><ul><li>Involvement in the setting of tasks & goals </li></ul><ul><li>James </li></ul>
  48. 48. Designing a successful appraisal system <ul><li>Questions to be addressed </li></ul><ul><li>Who should be appraised? </li></ul><ul><li>Who should undertake the appraisal? </li></ul><ul><li>At what frequency should appraisals be undertaken? </li></ul><ul><li>Should the appraisal system be open? </li></ul>
  49. 49. 360 degree feedback <ul><li>An appraisal & feedback from different groups within the work situation </li></ul><ul><li>Includes feedback from peers, subordinates, bosses & possibly internal & external customers </li></ul>
  50. 50. Upward appraisal feedback <ul><li>An upward review or appraisal system that involves subordinates’ appraisal of managers </li></ul><ul><li>This can help to judge managers’ ability accept constructive criticism </li></ul><ul><li>Requires an appropriate organisational culture & open management </li></ul>
  51. 51. Employment relations <ul><li>Concerned with the relationships between the policies & practices of the organisation & its staff & the behaviour of work groups </li></ul>
  52. 52. Influences on the employment relations policy <ul><li>The type, nature & size of the organisation </li></ul><ul><li>Structure & methods of operation </li></ul><ul><li>Nature of staff employed </li></ul><ul><li>Arrangements for collective bargaining </li></ul><ul><li>Structure & strength of trade unions </li></ul><ul><li>Preference of the parties for freedom of action from outside influences </li></ul><ul><li>The philosophy of top management & their attitudes </li></ul>
  53. 53. Employment relations & business performance This material is taken from Employment Relations into the 21st Century: An IPD Position Paper and reproduced with the permission of the publisher, the Chartered Institute of Personnel and Development, London, SW19 4UX, December 1997, p.5.
  54. 54. Effective employment relations
  55. 55. International approaches of HRM <ul><li>Ethnocentric approach </li></ul><ul><li>Polycentric approach </li></ul><ul><li>Geocentric approach </li></ul><ul><li>Regiocentric approach </li></ul><ul><li>Budhwar </li></ul>
  56. 56. 10 ways to make HR effective <ul><li>Be the catalyst for making things happen </li></ul><ul><li>Avoid being the corporate soft touch </li></ul><ul><li>Understand the whole business </li></ul><ul><li>Keep people-management systems simple </li></ul><ul><li>Remember line managers manage people, not HR </li></ul>
  57. 57. 10 ways to make HR effective <ul><li>Work with, not above, line managers </li></ul><ul><li>Be super-efficient in the transactional stuff </li></ul><ul><li>Be leaders in the transformational stuff </li></ul><ul><li>Help the business to manage change </li></ul><ul><li>Accept that good ‘people ideas’ exist outside HR </li></ul><ul><li>Browning </li></ul>
  58. 58. At which stage of the selection process do you think a company’s culture becomes clear to an employee? Discuss with a classmate. Chapter Check-Up: HR Policies