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Human Resource Management

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3atta2i (iGive) MiniMBA 4, HRM Course

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Human Resource Management

  1. 1. Human Resource Management BY MUHAMAD SHABAREK Damascus, 10 May 2014
  2. 2. WHO’S IN THE ROOM? 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 2
  3. 3. What is HRM and why it is important PART I (BRAINSTORMING) 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 3
  4. 4. Personnel Aspects Of A Manager’s Job Conducting job analyses (determining the nature of each employee’s job) Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries (compensating employees) Providing incentives and benefits Appraising performance Communicating (interviewing, counseling, disciplining) Training and developing managers Building employee commitment 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 4
  5. 5. Personnel Mistakes Hire the wrong person for the job Experience high turnover Have your people not doing their best Waste time with useless interviews Have your company in court because of discriminatory actions Have your company cited by OSHA for unsafe practices Have some employees think their salaries are unfair and inequitable relative to others in the organization Allow a lack of training to undermine your department’s effectiveness Commit any unfair labor practices 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 5
  6. 6. DEFINITION “Human resource management is the function performed in an organization that facilitates the most effective use of people(employees) to achieve organizational and individual goals”, Ivancevich and Glueck 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 6
  7. 7. Basic HR Concept Getting results ◦ The bottom line of managing HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve its strategic goals. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 7
  8. 8. History and evolution of HRM (main approaches) Scientific management approach (mid 1900s) Human relations approach Human Resources Approach (1970s) Strategic HRM IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 810/5/2014
  9. 9. Scientific management approach (mid 1900s) Fredrick Taylor- father of scientific management Study of motion and fatigue ‘one-best-way’ to accomplish the task Piece-rate system Workers were solely motivated through money Workers to maxamise production in order to satisfy their one work related need- money Failed to bring behavioural changes and increase in productivity Human relations approach The hawthorne studies – 1930-40’s Growing strength of unions Social and psychological factors also affected employee productivity Relations and respect >> High Productivity Why human relations approach Failed?? Did not recognize individual differences Did not recognize need for job structure Failed to recognize other factors that could influence employee satisfaction and productivity 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 9
  10. 10. Strategic Human Resource Management The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. Formulating and executing HR systems—HR policies and activities—that produce the employee competencies and behaviors the company needs to achieve its strategic aims. Human Resources Approach (1970s) Employees are assets for organization Policies, programmes and practices - help in work and personal development Organization goal & needs of employee are capable of existing in harmony should create contributive work environment to reap maximum benefit 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 10
  11. 11. Employee Advocacy HR must take responsibility for: ◦ Clearly defining how management should be treating employees. ◦ Making sure employees have the mechanisms required to contest unfair practices. ◦ Represent the interests of employees within the framework of its primary obligation to senior management. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 11
  12. 12. Challenges of HRM Individuals differ from one another Customization of stimulation and motivation Demanding personnel 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 12
  13. 13. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 13
  14. 14. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 14
  15. 15. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 15 Functions of HRMFunctions of HRM Managerial Function Planning Organizing Staffing Directing Controlling Operative Function Employment HR development Compensation Employee relations
  16. 16. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 16 Functions of HRMPlanning •it is an ongoing process of developing business mission and objective &formulating the action to accomplish that . Identification of needs of employee & to predict the future changes are part of planning Organizing •It is establishment of internal organization structure .Its focus is on division coordination & control of task . In this function HR manager assign the responsibility and authority to job holder. Staffing •It is filling the position with qualified people and keeping it filled . Recruiting hiring training evaluating transferring are the specific activity of this function. Directing •it is process of maximum utilization of human resources contribution . It also includes forming good human relation& coordination among different level of department Controlling •It is establishing performance standard based on organizations goal measuring them and comparing the actual performance to standard performance & taking proper action .
  17. 17. Operational Employment HR Planning Recruitment Selection Placement Induction HR Development Performance Appraisal Training Management Development Career Planning and Development Compensation Mgt Job Evaluation Wage and Salary Admn Incentives Bonus Fringe Benefits Employee Relations 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 17
  18. 18. Emerging role or HRM Value of Human Resource Competitive advantage Human Resource Accounting – It is measurement of the cost and value of people for an organization “It is the competence and attitude of the human resource that can make or break a business.” 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 18
  19. 19. HR and Competitive Advantage Competitive advantage ◦ Any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share. ◦ Superior human resources are an important source of competitive advantage 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 19
  20. 20. Relationships Among Strategies in Multiple- Business Firms 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 20
  21. 21. Achieving Strategic Fit Michael Porter ◦ Emphasizes the “fit” point of view that all of the firm’s activities must be tailored to or fit its strategy, by ensuring that the firm’s functional strategies support its corporate and competitive strategies. Gary Hamel and C. K. Prahalad ◦ Argue for “stretch” in leveraging resources—supplementing what you have and doing more with what you have—can be more important than just fitting the strategic plan to current resources. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 21
  22. 22. The Southwest Airlines’ Activity System 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 22
  23. 23. Human resource accounting • Human resource accounting is measurement of the cost and value of the people for an organization.COST • Human resource accounting helps management to value its human resource and use them with discretion and wisdom VALUE 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 23
  24. 24. HR Metrics Absence Rate [(Number of days absent in month) ÷ (Average number of employees during mo.) × (number of workdays)] × 100 Cost per Hire (Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) ÷ Number of Hires Health Care Costs per Employee Total cost of health care ÷ Total Employees HR Expense Factor HR expense ÷ Total operating expense 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 24
  25. 25. HR Metrics (cont’d) Human Capital ROI Revenue − (Operating Expense − [Compensation cost + Benefit cost]) ÷ (Compensation cost + Benefit cost) Human Capital Value Added Revenue − (Operating Expense − ([Compensation cost + Benefit Cost]) ÷ Total Number of FTE Revenue Factor Revenue ÷ Total Number of FTE Time to fill Total days elapsed to fill requisitions ÷ Number hired 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 25
  26. 26. HR Metrics (cont’d) Training Investment Factor Total training cost ÷ Headcount Turnover Costs Cost to terminate + Cost per hire + Vacancy Cost + Learning curve loss Turnover Rate [Number of separations during month ÷ Average number of employees during month] × 100 Workers’ Compensation Cost per Employee Total WC cost for Year ÷ Average number of employees 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 26
  27. 27. Measuring HR’s Contribution The HR Scorecard ◦ Shows the quantitative standards, or “metrics” the firm uses to measure HR activities. ◦ Measures the employee behaviors resulting from these activities. ◦ Measures the strategically relevant organizational outcomes of those employee behaviors. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 27
  28. 28. Creating a Strategy-oriented HR System Components of the HR process ◦ HR professionals who have strategic and other skills ◦ HR policies and activities that comprise the HR system itself ◦ Employee behaviors and competencies that the company’s strategy requires. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 28
  29. 29. The Basic Architecture of HR 3–2910/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK
  30. 30. The High-Performance Work System High-performance work system (HPWS) practices. ◦ High-involvement employee practices (such as job enrichment and team-based organizations), ◦ High commitment work practices (such as improved employee development, communications, and disciplinary practices) ◦ Flexible work assignments. ◦ Other practices include those that foster skilled workforces and expanded opportunities to use those skills. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 30
  31. 31. Strategic HR Relationships Figure 3–10 HR Activities Emergent Employee Behaviors Strategically Relevant Organizational Outcomes Organizational Performance Achieve Strategic Goals 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 31
  32. 32. THE CHALLENGES WORKER PRODUCTIVITY QUALITY IMPROVEMENT CHANGING ATTITUDES OF WORKFORCE IMPACT OF THE GOVERNMENT QUALITY OF WORK LIFE TECHNOLOGY AND TRAINING 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 32
  33. 33. HR and Corporate Ethics HRM must: ◦ Make sure employees know about corporate ethics policies ◦ Train employees and supervisors on how to act ethically 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 33
  34. 34. HR and Technology Benefits of technological applications for HR Intranet-based employee portals through which employees can self-service HR transactions. The availability of centralized call centers staffed with HR specialists. Increased efficiency of HR operations. The development of data warehouses of HR-related information. The ability to outsource HR activities to specialist service providers. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 34
  35. 35. Why structure ??? What structure signifies? No directions Leads to confusion Chaos Why??????????? 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 35
  36. 36. Mechanistic Vs organic organization Rigid structure Employees are tied by rules & regulations High degree of centralization Suitable for operating in static environment Decision-making is done by superiors Ex: Public sector in the pre- reforms era Flexible structure Employees are not tied by rules & regulations Decentralized style of management Suitable for operating in dynamic environment Decision-making is done by junior level employees also Ex: Marico`s Saffola 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 36
  37. 37. President Vice President Division Managers Division Managers Department Managers Department Managers Department Managers Division Managers Vice President Division Managers Department Managers Department Managers Division Managers Division Managers Vice President Division Managers Department Managers Department Managers Division Managers Division Managers Department Managers Department Managers Informal organization Bowling team Informal organization Chess group Formal organization
  38. 38. Tall Vs Flat structureCMD ED GM CM CM Manager Manager Officer Officer Executive Executive GM GM ED ED TALL STRUCTURE COO PM PM PM PM Team Lead Team Lead Team Lead Team Member Team Member Team Member Team Member FLAT STRUCTURE 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 38
  39. 39. RESPONSIBILITY, AUTHORITY & ACCOUNTABILITY Responsibility: It is the obligation of a manager to carry out the duties assigned to him. Authority: It refers to the right to give orders and the power to exact obedience from others in the process of discharging responsibility. Accountability: The employee's answerability on using the authority in discharging the responsibility is termed accountability. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 39
  40. 40. HR and Authority Authority ◦ The right to make decisions, direct others’ work, and give orders. Implied authority ◦ The authority exerted by an HR manager by virtue of others’ knowledge that he or she has access to top management. Line authority ◦ The authority exerted by an HR manager by directing the activities of the people in his or her own department and in service areas. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 40
  41. 41. Line and Staff Aspects of HRM Line manager ◦ A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. Staff manager ◦ A manager who assists and advises line managers. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 41
  42. 42. LINE AND STAFF FUNCTIONS Departments or employees of a firm that perform core activities Contributes directly to the business of the firm Ex: Manufacturing and Marketing departments Departments or employees of a firm that perform a support function Contributes indirectly to the business of the firm Ex: HR and Finance departments 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 42
  43. 43. Functions of the HR Manager A line function ◦ The HR manager directs the activities of the people in his or her own department and in related service areas (like the plant cafeteria). A coordinative function ◦ HR managers also coordinate personnel activities, a duty often referred to as functional control. Staff (assist and advise) functions ◦ Assisting and advising line managers is the heart of the HR manager’s job. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 43
  44. 44. Human Resource Planning PART 2
  45. 45. What is HRP Process of anticipating and making provision for the movement of people into, within, and out of an organization 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 45
  46. 46. Definition Human resource planning is a process by which an organization ensures that ◦ it has the right number and kinds of people ◦ at the right place ◦ at the right time ◦ capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 46
  47. 47. Human Resource planning Right Number Right Skills Right Time Right Cost 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 47
  48. 48. Objectives of HRP To maintain • Right time To forecast • Right Number To optimize • Right skills To utilize • Right Cost 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 48
  49. 49. Organizational plans and objectives Identify future human resource requirements Compare with the current HR inventory Determine the redundant numbers Determine the numbers, levels & criticality of vacancies Analyze the cost & time involved in managing the demand Analyze the cost & time required for managing surplus Retrench Choose the resources & methods of recruitment Redeploy HUMAN RESOURCE PLANNING MODEL 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 49
  50. 50. Assessing current human resources and making inventory Job analysis HR inventory – HRIS Generate a fairly accurate picture existing situation 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 50
  51. 51. Job Analysis Job Analysis is a systematic exploration of the activities within a job. It defines and documents the duties, responsibilities and accountabilities of a job and the conditions under which a job is performed. ? 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 51
  52. 52. Outputs of job analysis Job Descriptions ◦ Written statement of what jobholder does, how it is done, under what conditions and why. ◦ Common format: title; duties; distinguishing characteristics; environmental conditions; authority and responsibilities. ◦ Used to describe the job to applicants, to guide new employees, and to evaluate employees. Job Specifications ◦ States minimum acceptable qualifications. ◦ Used to select employees who have the essential qualifications. Job Evaluations ◦ Specify relative value of each job in the organization. ◦ Used to design equitable compensation program. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 52
  53. 53. Types of Information Collected Work activities Human behaviors Machines, tools, equipment, and work aids Performance standards Job context Human requirements 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 53
  54. 54. Uses of Job Analysis Information Recruitment and Selection Compensation Performance Appraisal Training Discovering Unassigned Duties EEO Compliance 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 54
  55. 55. Job Analysis Methods ◦ Observation method – job analyst watches employees directly or reviews film of workers on the job. ◦ Individual interview method – a team of job incumbents is selected and extensively interviewed. ◦ Group interview method – a number of job incumbents are interviewed simultaneously. ◦ Structured questionnaire method – workers complete a specifically designed questionnaire. ◦ Technical conference method – uses supervisors with an extensive knowledge of the job. ◦ Diary method – job incumbents record their daily activities. ◦ The position analysis questionnaire (PAQ) ◦ The Department of Labor (DOL) procedure ◦ Functional job analysis: Takes into account the extent to which instructions, reasoning, judgment, and mathematical and verbal ability are necessary for performing job tasks. ◦ … The best results are usually achieved with some combination of methods. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 55
  56. 56. Forecasting Compare future needs with current availabity Analyze companies change plan Forecasting methods used are Time Series Analysis, Regression Analysis and Productivity Ratios 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 56
  57. 57. Linking Organizational Strategy to Human Resource Planning Ensures that people are available to meet the requirements set during strategic planning. Assessing current human resources ◦ A human resources inventory report summarizes information on current workers and their skills. Human Resource Information Systems ◦ HRIS are increasingly popular computerized databases that contain important information about employees. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 57
  58. 58. Assessing current human resources ◦ Succession planning ◦ includes the development of replacement charts ◦ portray middle-to-upper level management positions that may become vacant in the near future ◦ lists information about individuals who might qualify to fill the positions Determining the Demand for Labor ◦ A human resource inventory can be developed to project year- by-year estimates of future HRM needs for every significant job level and type. ◦ Forecasts must be made of the need for specific knowledge, skills and abilities.? 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 58
  59. 59. Matching the inventory with future requirements If the current inventory exceeds the future requirements Natural attrition cannot bring down resource to match What to consider then???? 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 59
  60. 60. Matching Labor Demand and Supply ◦ Employment planning compares forecasts for demand and supply of workers. ◦ Special attention should be paid to current and future shortages and overstaffing. ◦ Recruitment or downsizing may be used to reduce supply and balance demand. ◦ Rightsizing involves linking staffing levels to organizational goals. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 60
  61. 61. Options for Reducing a Surplus Downsizing Pay reductions Demotions Transfers Work sharing Hiring freeze Natural attrition Early retirement Retraining 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 61
  62. 62. Options for Avoiding a Shortage Overtime Temporary employees Outsourcing Retrained transfers Turnover reductions New external hires Technological innovation 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 62
  63. 63. Strategic Human Resource Planning Process 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 63
  64. 64. Recruitment PART 3
  65. 65. The Recruitment and Selection Process 1. Decide what positions you’ll have to fill through personnel planning and forecasting. 2. Build a pool of candidates for these jobs by recruiting internal or external candidates. 3. Have candidates complete application forms and perhaps undergo an initial screening interview. 4. Use selection techniques like tests, background investigations, and physical exams to identify viable candidates. 5. Decide who to make an offer to, by having the supervisor and perhaps others on the team interview the candidates. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 65
  66. 66. Steps in Recruitment and Selection Process The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 66
  67. 67. Recruiting Human Resources The role of human resource recruitment is to build a supply of potential new hires that the organization can draw on if the need arises. Recruiting: any activity carried on by the organization with the primary purpose of identifying and attracting potential employees. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 67
  68. 68. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 68 Three Aspects of Recruiting
  69. 69. Personnel Policies Internal versus external recruiting Lead-the-market pay strategies Employment-at-will policies Image advertising Several personnel policies are especially relevant to recruitment: 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 69
  70. 70. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 70 • Image advertising, such as in this campaign to recruit nurses, promotes a whole profession or organization as opposed to a specific job opening. • This ad is designed to create a positive impression of the profession, which is now facing a shortage of workers.
  71. 71. Recruitment Sources: Internal Sources Succession planning Job Posting: the process of communicating information about a job vacancy: ◦ On company bulletin boards ◦ In employee publications ◦ On corporate intranets ◦ Anywhere else the organization communicates with employees 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 71
  72. 72. Recruitment Sources: External Sources Direct applicants (Walk-ins) Referrals Advertisements Electronic recruiting Employment agencies Colleges and universities Activities and projects Recruitment events 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 72
  73. 73. One in Three Positions Are Filled with Insiders 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 73
  74. 74. The Recruiter Characteristics of the Recruiter Behavior of the Recruiter Recruiter’s Impact 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 74
  75. 75. Recruiter Characteristics and Behavior True = A False = B Applicants respond more positively when the recruiter is an HR specialist than line managers or incumbents. Applicants respond positively to recruiters whom are warm and informative Personnel policies are more important than the recruiter when deciding whether or not to take a job. Realistic job previews should highlight the positive characteristics of the job rather than the negative. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 75
  76. 76. Enhancing the Recruiter’s Impact Recruiters should provide timely feedback. Recruiters should avoid offensive behavior. They should avoid behaving in ways that might convey the wrong impression about the organization. The organization can recruit with teams rather than individual recruiters. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 76
  77. 77. Measuring Recruiting Effectiveness What to measure and how to measure ◦ How many qualified applicants were attracted from each recruitment source? ◦ Assessing both the quantity and the quality of the applicants produced by a source. High performance recruiting ◦ Applying best-practices management techniques to recruiting. ◦ Using a benchmarks-oriented approach to analyzing and measuring the effectiveness of recruiting efforts such as employee referrals. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 77
  78. 78. Evaluating the Quality of a Source YIELD RATIOS A ratio that expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next. By comparing the yield ratios of different recruitment sources, we can determine which source is the best or most efficient for the type of vacancy. COST PER HIRE Find the cost of using a particular recruitment source for a particular type of vacancy. Divide that cost by the number of people hired to fill that type of vacancy. A low cost per hire means that the recruitment source is efficient. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 78
  79. 79. Results of a Hypothetical Recruiting Effort 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 79
  80. 80. Recruiting Yield Pyramid  Recruiting yield pyramid – The historical arithmetic relationships between recruitment leads and invitees, invitees and interviews, interviews and offers made, and offers made and offers accepted. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 80
  81. 81. Recruitment alternatives Outsourcing/Offshoring Partnerships Temp. staff/ Interim IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 8110/5/2014
  82. 82. Developing and Using Application Forms Application form ◦ The form that provides information on education, prior work record, and skills. Uses of information from applications ◦ Judgments about the applicant’s educational and experience qualifications ◦ Conclusions about the applicant’s previous progress and growth ◦ Indications of the applicant’s employment stability ◦ Predictions about which candidate is likely to succeed on the job 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 82
  83. 83. Selection YOUR EXPERIENCE IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK83 10/5/2014
  84. 84. Personnel Selection Personnel Selection: the process through which organizations make decisions about who will or will not be allowed to join the organization. Selection begins with the candidates identified through recruitment. It attempts to reduce their number to the individuals best qualified to perform available jobs. It ends with the selected individuals placed in jobs with the organization. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 84
  85. 85. Figure 6.1: Steps in the Selection Process 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 85
  86. 86. Why Careful Selection is Important The importance of selecting the right people ◦ Organizational performance always depends in part on subordinates having the right skills and attributes. ◦ Recruiting and hiring employees is costly. ◦ The legal or negative implications of incompetent hiring ◦ EEO laws and court decisions related to nondiscriminatory selection procedures ◦ The liability of negligent hiring of workers with questionable backgrounds 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 86
  87. 87. A Strategic Approach to Personnel Selection Organizations should create a selection process in support of its job descriptions. The selection process should be set up in a way that it lets the organization identify people who have the necessary KASOs. This kind of strategic approach to selection requires ways to measure the effectiveness of the selection tools. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 87
  88. 88. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 88 Criteria for Measuring the Effectiveness of Selection Tools and Methods The method provides reliable information. The method provides valid information. The information can be generalized to apply to the candidates. The method offers high utility. The selection criteria are legal.
  89. 89. How Organizations Select Employees MULTIPLE-HURDLE MODEL Process of arriving at a selection decision by eliminating some candidates at each stage of the selection process. COMPENSATORY MODEL Process of arriving at a selection decision in which a very high score on one type of assessment can make up for a low score on another. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 89
  90. 90. Communicating the Decision When a candidate has been selected, the organization should communicate the the offer to the candidate. The offer should include: ◦ Job responsibilities ◦ Work schedule ◦ Rate of pay ◦ Starting date ◦ Other relevant details 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 90
  91. 91. Orienting Employees Employee orientation ◦ A procedure for providing new employees with basic background information about the organization. Orientation content ◦ Information on the benefits ◦ Personnel policies ◦ The daily routine ◦ The Organization’s structure, system and operations ◦ Safety measures and regulations ◦ Facilities tour 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 91
  92. 92. Orienting Employees (cont’d) A successful orientation should accomplish four things for new employees: ◦ Make them feel welcome and at ease. ◦ Help them understand the organization in a broad sense. ◦ Make clear to them what is expected in terms of work and behavior. ◦ Help them begin the process of becoming socialized into the firm’s ways of acting and doing things. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 92
  93. 93. New Employee Departmental Orientation Checklist 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 93
  94. 94. Performance Management PART 4 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK94 10/5/2014
  95. 95. Introduction Performance management: the process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals. This process requires: ◦ Knowing what activities and outputs are desired ◦ Observing whether they occur ◦ Providing feedback to help employees meet expectations 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 95
  96. 96. Stages of the Performance Management Process 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 96
  97. 97. Comparing Performance Appraisal and Performance Management Performance appraisal ◦ Evaluating an employee’s current and/or past performance relative to his or her performance standards. Performance management ◦ The process employers use to make sure employees are working toward organizational goals. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 97
  98. 98. Purposes of Performance Management Strategic Purpose – means effective performance management helps the organization achieve its business objectives. Administrative Purpose – refers to the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs. Developmental Purpose – means that it serves as a basis for developing employees’ knowledge and skills. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 98
  99. 99. Performance Appraisal Roles Supervisors ◦ Usually do the actual appraising. ◦ Must be familiar with basic appraisal techniques. ◦ Must understand and avoid problems that can cripple appraisals. ◦ Must know how to conduct appraisals fairly. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 99
  100. 100. Performance Appraisal Roles (cont’d) HR department ◦ Serves a policy-making and advisory role. ◦ Provides advice and assistance regarding the appraisal tool to use. ◦ Prepares forms and procedures and insists that all departments use them. ◦ Responsible for training supervisors to improve their appraisal skills. ◦ Responsible for monitoring the system to ensure that appraisal formats and criteria comply with EEO laws and are up to date. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 100
  101. 101. Criteria for Effective Performance Management Fit with strategy Validity Reliability Acceptability Specific feedback 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 101
  102. 102. Contamination and Deficiency of a Job Performance Measure 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 102
  103. 103. Designing the Appraisal Tool What to measure? ◦ Work output (quality and quantity) ◦ Personal competencies ◦ Goal (objective) achievement How to measure? ◦ Graphic rating scales ◦ Alternation ranking method ◦ MBO 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 103
  104. 104. Methods for Measuring Performance METHOD Comparativ e Attribute BehaviorResults Quality 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 104
  105. 105. Who Should Do the Appraising? The immediate supervisor Peers Rating committees Self-ratings Subordinates 360-Degree feedback 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 105
  106. 106. Sources of Performance Information 360-Degree Performance Appraisal: performance measurement that combines information from the employees’: ◦ Managers ◦ Peers ◦ Subordinates ◦ Self ◦ Customers 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 106
  107. 107. Improving Performance 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 107
  108. 108. The Training Process Training ◦ The process of teaching new employees the basic skills they need to perform their jobs. Training and Development Process 1. Needs analysis: Identify job performance skills needed, assess prospective trainees skills, and develop objectives. 2. Instructional design: Produce the training program content, including workbooks, exercises, and activities. 3. Validation: Presenting (trying out) the training to a small representative audience. 4. Implement the program: Actually training the targeted employee group. 5. Evaluation: Assesses the program’s successes or failures. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 108
  109. 109. Training Methods On-job Training (OJT) ◦ Having a person learn a job by actually doing the job. i.e. by Coaching or understudy, Job rotation, Special assignments Apprenticeship training ◦ A structured process by which people become skilled workers through a combination of classroom instruction and on-the-job training. Informal learning ◦ The majority of what employees learn on the job they learn through informal means of performing their jobs on a daily basis. Job instruction training (JIT) ◦ Listing each job’s basic tasks, along with key points, in order to provide step-by-step training for employees. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 109
  110. 110. Evaluating the Training Effort Designing the study ◦ Time series design ◦ Controlled experimentation Training effects to measure ◦ Reaction of trainees to the program ◦ Learning that actually took place ◦ Behavior that changed on the job ◦ Results that were achieved as a result of the training 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 110
  111. 111. Time Series Training Evaluation Design Figure 8–5 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 111
  112. 112. Career Development Employee development: the combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers. Development is about preparing for change in the form of new jobs, new responsibilities, or new requirements. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 112
  113. 113. Training versus Development TRAINING DEVELOPMENT Focus Current Future Use of work experiences Low High Goal Preparation for current job Preparation for changes Participation Required Voluntary 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 113
  114. 114. What Is Management Development? Management development ◦ Any attempt to improve current or future management performance by imparting knowledge, changing attitudes, or increasing skills. Succession planning ◦ A process through which senior-level openings are planned for and eventually filled. ◦ Anticipate management needs ◦ Review firm’s management skills inventory ◦ Create replacement charts ◦ Begin management development 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 114
  115. 115. Benefits, Incentives & Recognition PART 6 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK115 10/5/2014
  116. 116. Benefits Benefits ◦ Indirect financial and nonfinancial payments employees receive for continuing their employment with the company. Types of employee benefit plans ◦ Supplemental pay ◦ Insurance ◦ Additional services and facilities ◦ Retirement (Pensions) 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 116
  117. 117. The Role of Benefits Benefits contribute to attracting, retaining, and motivating People. The variety of possible benefits helps organizations to tailor their compensation based on their needs. benefits help to maintain economic security. Benefits impose significant costs. Benefits packages are more complex than pay structures, making them harder to understand and appreciate. Sometimes, benefits are subject to government regulation. ◦ Legally required benefits. ◦ Tax laws can make benefits favorable. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 117
  118. 118. Expectations and Values Employees expect to receive benefits that are legally required and widely available. They value benefits they are likely to use. The value they place on various benefits is likely to differ from one employee to another. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 118
  119. 119. Expectations and Values(continued) Organizations can address differences in employees’ needs and empower their employees by offering flexible benefits plans in place of a single benefits package for all employees. Cafeteria-style plan: a benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 119
  120. 120. Communicating Benefits to Employees Organizations must communicate benefits information to employees so that they will appreciate the value of their benefits. This is essential so that benefits can achieve their objective of attracting, motivating, and retaining employees. Employees are interested in their benefits, and they need a great deal of detailed information to take advantage of benefits. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 120
  121. 121. Incentive Pay Incentive pay – forms of pay linked to an employee’s performance as an individual, group member, or organization member. Incentive pay is influential because the amount paid is linked to certain predefined behaviors or outcomes. For incentive pay to motivate employees to contribute to the organization’s success, the pay plans must be well designed. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 121
  122. 122. Pay for Individual Performance Piecework rates Standard hour plans Merit pay Individual bonuses Sales commissions 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 122
  123. 123. Pay for Group Performance Gainsharing Bonuses Team Awards 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 123
  124. 124. Types of Pay for Organizational Performance 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 124
  125. 125. How Incentives Sometimes “Work” SOURCE: DILBERT reprinted by permission of United Feature Syndicate, Inc. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 125
  126. 126. Why Incentive Plans Fail Performance pay can’t replace good management. You get what you pay for. “Pay is not a motivator.” Rewards punish. Rewards rupture relationships. Rewards can have unintended consequences. Rewards may undermine responsiveness. Rewards undermine intrinsic motivation. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 126
  127. 127. Processes That Make Incentives Work PARTICIPATION IN DECISIONS Employee participation in pay-related decisions can be part of a general move toward employee empowerment. Employee participation can contribute to the success of an incentive plan. COMMUNICATION Communication demonstrates to employees that the pay plan is fair. When employees understand the requirements of the incentive pay plan, the plan is more likely to influence their behavior as desired. Important when the pay plan is being changed. 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 127
  128. 128. Thank you!.. Follow us on facebook.com/3atta2i 10/5/2014 IGIVE - MINIMBA4 - 04 HRM - M.SHABAREK 128

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