Human Resource Management


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  • Human Resource Management

    1. 1. Human Resource Management
    2. 2. Fundamentals of Human Resource Management
    3. 3. Management Essentials <ul><li>Management involves setting goals and allocating scarce resources to achieve them. </li></ul><ul><li>Management is the process of efficiently achieving the objectives of the organization with and through people. </li></ul>
    4. 4. Management Essentials <ul><li>Primary Functions of Management </li></ul><ul><ul><li>Planning – establishing goals </li></ul></ul><ul><ul><li>Organizing – determining what activities need to be done </li></ul></ul><ul><ul><li>Leading – assuring the right people are on the job and motivated </li></ul></ul><ul><ul><li>Controlling – monitoring activities to be sure goals are met </li></ul></ul>
    5. 5. Why is HRM Important to an Organization? <ul><li>The role of human resource managers has changed. HRM jobs today require a new level of sophistication. </li></ul><ul><ul><li>Employment legislation has placed new requirements on employers. </li></ul></ul><ul><ul><li>Jobs have become more technical and skilled. </li></ul></ul><ul><ul><li>Traditional job boundaries have become blurred with the advent of such things as project teams and telecommuting. </li></ul></ul><ul><ul><li>Global competition has increased demands for productivity. </li></ul></ul>
    6. 6. Why is HRM Important to an Organization? <ul><li>The Strategic Nature – HRM must be </li></ul><ul><ul><li>a strategic business partner and represent employees. </li></ul></ul><ul><ul><li>forward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage. </li></ul></ul><ul><ul><li>concerned with the total cost of its function and for determining value added to the organization. </li></ul></ul>
    7. 7. Why is HRM Important to an Organization? <ul><li>HRM is the part of the organization concerned with the “people” dimension. </li></ul><ul><li>HRM is both a staff, or support function that assists line employees, and a function of every manager’s job. </li></ul><ul><li>HRM Certification </li></ul><ul><ul><li>Colleges and universities offer HR programs. </li></ul></ul>
    8. 8. Why is HRM Important to an Organization? <ul><li>Four basic functions: </li></ul><ul><li>Staffing </li></ul><ul><li>Training and Development </li></ul><ul><li>Motivation </li></ul><ul><li>Maintenance </li></ul>
    9. 9. How External Influences Affect HRM <ul><li>Strategic Environment </li></ul><ul><li>Governmental Legislation </li></ul><ul><li>Labor Unions </li></ul><ul><li>Management Thought </li></ul>
    10. 10. How External Influences Affect HRM <ul><li>HRM Strategic Environment includes: </li></ul><ul><ul><li>Globalization </li></ul></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><li>Work force diversity </li></ul></ul><ul><ul><li>Changing skill requirements </li></ul></ul><ul><ul><li>Continuous improvement </li></ul></ul><ul><ul><li>Work process engineering </li></ul></ul><ul><ul><li>Decentralized work sites </li></ul></ul><ul><ul><li>Teams </li></ul></ul><ul><ul><li>Employee involvement </li></ul></ul><ul><ul><li>Ethics </li></ul></ul>
    11. 11. How External Influences Affect HRM <ul><li>Governmental Legislation </li></ul><ul><ul><li>Laws supporting employer and employee actions </li></ul></ul><ul><li>Labor Unions </li></ul><ul><ul><li>Act on behalf of their members by negotiating contracts with management </li></ul></ul><ul><ul><li>Exist to assist workers </li></ul></ul><ul><ul><li>Constrain managers </li></ul></ul><ul><ul><li>Affect non unionized workforce </li></ul></ul>
    12. 12. How External Influences Affect HRM <ul><li>Management Thought </li></ul><ul><ul><li>Management principles, such as those from scientific management or based on the Hawthorne studies influence the practice of HRM. </li></ul></ul><ul><ul><li>More recently, continuous improvement programs have had a significant influence on HRM activities. </li></ul></ul>
    13. 13. Staffing Function Activities <ul><li>Employment planning </li></ul><ul><ul><li>ensures that staffing will contribute to the organization’s mission and strategy </li></ul></ul><ul><li>Job analysis </li></ul><ul><ul><li>determining the specific skills, knowledge and abilities needed to be successful in a particular job </li></ul></ul><ul><ul><li>defining the essential functions of the job </li></ul></ul>
    14. 14. Staffing Function Activities <ul><li>Recruitment </li></ul><ul><ul><li>the process of attracting a pool of qualified applicants that is representative of all groups in the labor market </li></ul></ul><ul><li>Selection </li></ul><ul><ul><li>the process of assessing who will be successful on the job, and </li></ul></ul><ul><ul><li>the communication of information to assist job candidates in their decision to accept an offer </li></ul></ul>
    15. 15. Goals of the Training and Development Function <ul><li>Activities in HRM concerned with assisting employees to develop up-to-date skills, knowledge, and abilities </li></ul><ul><li>Orientation and socialization help employees to adapt </li></ul><ul><li>Four phases of training and development </li></ul><ul><ul><li>Employee training </li></ul></ul><ul><ul><li>Employee development </li></ul></ul><ul><ul><li>Organization development </li></ul></ul><ul><ul><li>Career development </li></ul></ul>
    16. 16. The Motivation Function <ul><li>Activities in HRM concerned with helping employees exert at high energy levels. </li></ul><ul><li>Implications are: </li></ul><ul><ul><li>Individual </li></ul></ul><ul><ul><li>Managerial </li></ul></ul><ul><ul><li>Organizational </li></ul></ul><ul><li>Function of two factors: </li></ul><ul><ul><li>Ability </li></ul></ul><ul><ul><li>Willingness </li></ul></ul><ul><li>Respect </li></ul>
    17. 17. The Motivation Function <ul><li>Managing motivation includes: </li></ul><ul><ul><li>Job design </li></ul></ul><ul><ul><li>Setting performance standards </li></ul></ul><ul><ul><li>Establishing effective compensation and benefits programs </li></ul></ul><ul><ul><li>Understanding motivational theories </li></ul></ul>
    18. 18. The Motivation Function <ul><li>Classic Motivation Theories </li></ul><ul><ul><li>Hierarchy of Needs –Maslow </li></ul></ul><ul><ul><li>Theory X – Theory Y –McGregor </li></ul></ul><ul><ul><li>Motivation – Hygiene – Herzberg </li></ul></ul><ul><ul><li>Achievement, Affiliation, and Power Motives – McClelland </li></ul></ul><ul><ul><li>Equity Theory – Adams </li></ul></ul><ul><ul><li>Expectancy Theory - Vroom </li></ul></ul>
    19. 19. How Important is the Maintenance Function? <ul><li>Activities in HRM concerned with maintaining employees’ commitment and loyalty to the organization. </li></ul><ul><ul><li>Health </li></ul></ul><ul><ul><li>Safety </li></ul></ul><ul><ul><li>Communications </li></ul></ul><ul><ul><li>Employee assistance programs </li></ul></ul><ul><li>Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard. </li></ul>
    20. 20. Translating HRM Functions into Practice <ul><li>Four Functions: </li></ul><ul><ul><li>Employment </li></ul></ul><ul><ul><li>Training and development </li></ul></ul><ul><ul><li>Compensation/benefits </li></ul></ul><ul><ul><li>Employee relations </li></ul></ul>
    21. 21. HRM in an Entrepreneurial Enterprise <ul><li>General managers may perform HRM functions, HRM activities may be outsourced, or a single generalist may handle all the HRM functions. </li></ul><ul><li>Benefits include </li></ul><ul><ul><li>freedom from many government regulations </li></ul></ul><ul><ul><li>an absence of bureaucracy </li></ul></ul><ul><ul><li>an opportunity to share in the success of the business </li></ul></ul>
    22. 22. HRM in a Global Village <ul><li>HRM functions are more complex when employees are located around the world. </li></ul><ul><li>Consideration must be given to such things as foreign language training, relocation and orientation processes, etc. </li></ul><ul><li>HRM also involves considering the needs of employees’ families when they are sent overseas. </li></ul>
    23. 23. HR and Corporate Ethics <ul><li>HRM must: </li></ul><ul><ul><li>Make sure employees know about corporate ethics policies </li></ul></ul><ul><ul><li>Train employees and supervisors on how to act ethically </li></ul></ul>
    24. 24. Human Resource Planning and Job Analysis
    25. 25. Introduction <ul><li>Human resource planning is a process by which an organization ensures that </li></ul><ul><ul><li>it has the right number and kinds of people </li></ul></ul><ul><ul><li>at the right place </li></ul></ul><ul><ul><li>at the right time </li></ul></ul><ul><ul><li>capable of effectively and efficiently completing those tasks that will help the organization achieve its overall strategic objectives. </li></ul></ul>
    26. 26. Introduction <ul><li>Linked to the organization’s overall strategy and planning to compete domestically and globally. </li></ul><ul><li>Overall plans and objectives must be translated into the number and types of workers needed. </li></ul><ul><li>Senior HRM staff need to lead top management in planning for HRM issues. </li></ul>
    27. 27. An Organizational Framework
    28. 28. Linking Organizational Strategy to Human Resource Planning <ul><li>Ensures that people are available to meet the requirements set during strategic planning. </li></ul><ul><li>Assessing current human resources </li></ul><ul><ul><li>A human resources inventory report summarizes information on current workers and their skills. </li></ul></ul><ul><li>Human Resource Information Systems </li></ul><ul><ul><li>HRIS are increasingly popular computerized databases that contain important information about employees. </li></ul></ul>
    29. 29. Linking Organizational Strategy to Human Resource Planning <ul><li>Assessing current human resources </li></ul><ul><ul><li>Succession planning </li></ul></ul><ul><ul><ul><li>includes the development of replacement charts </li></ul></ul></ul><ul><ul><ul><li>portray middle-to-upper level management positions that may become vacant in the near future </li></ul></ul></ul><ul><ul><ul><li>lists information about individuals who might qualify to fill the positions </li></ul></ul></ul>
    30. 30. Linking Organizational Strategy to Human Resource Planning <ul><li>Determining the Demand for Labor </li></ul><ul><ul><li>A human resource inventory can be developed to project year-by-year estimates of future HRM needs for every significant job level and type. </li></ul></ul><ul><ul><li>Forecasts must be made of the need for specific knowledge, skills and abilities. </li></ul></ul>
    31. 31. Linking Organizational Strategy to Human Resource Planning <ul><li>Predicting the Future Labor Supply </li></ul><ul><ul><li>A unit’s supply of human resources comes from: </li></ul></ul><ul><ul><ul><li>new hires </li></ul></ul></ul><ul><ul><ul><li>contingent workers </li></ul></ul></ul><ul><ul><ul><li>transfers-in </li></ul></ul></ul><ul><ul><ul><li>individuals returning from leaves </li></ul></ul></ul><ul><ul><li>Predicting these can range from simple to complex. </li></ul></ul>
    32. 32. Linking Organizational Strategy to Human Resource Planning <ul><li>Predicting the Future Labor Supply </li></ul><ul><ul><li>Decreases in internal supply come about through: </li></ul></ul><ul><ul><ul><li>Retirements </li></ul></ul></ul><ul><ul><ul><li>Dismissals </li></ul></ul></ul><ul><ul><ul><li>Transfers-out </li></ul></ul></ul><ul><ul><ul><li>Lay-offs </li></ul></ul></ul><ul><ul><ul><li>Voluntary quits </li></ul></ul></ul><ul><ul><ul><li>Sabbaticals </li></ul></ul></ul><ul><ul><ul><li>Prolonged illnesses </li></ul></ul></ul><ul><ul><ul><li>Deaths </li></ul></ul></ul>
    33. 33. Linking Organizational Strategy to Human Resource Planning <ul><li>Where Will We Find Workers </li></ul><ul><ul><li>migration into a community </li></ul></ul><ul><ul><li>recent graduates </li></ul></ul><ul><ul><li>individuals returning from military service </li></ul></ul><ul><ul><li>increases in the number of unemployed and employed individuals seeking other opportunities, either part-time or full-time </li></ul></ul><ul><li>The potential labor supply can be expanded by formal or on-the-job training. </li></ul>
    34. 34. Linking Organizational Strategy to Human Resource Planning <ul><li>Matching Labor Demand and Supply </li></ul><ul><ul><li>Employment planning compares forecasts for demand and supply of workers. </li></ul></ul><ul><ul><li>Special attention should be paid to current and future shortages and overstaffing. </li></ul></ul><ul><ul><li>Recruitment or downsizing may be used to reduce supply and balance demand. </li></ul></ul><ul><ul><li>Rightsizing involves linking staffing levels to organizational goals. </li></ul></ul>
    35. 35. Linking Organizational Strategy to Human Resource Planning Employment Planning and the Strategic Planning Process
    36. 36. Job Analysis <ul><li>Job Analysis is a systematic exploration of the activities within a job. </li></ul><ul><li>It defines and documents the duties, responsibilities and accountabilities of a job and the conditions under which a job is performed. </li></ul>
    37. 37. Job Analysis <ul><li>Job Analysis Methods </li></ul><ul><ul><li>Observation method – job analyst watches employees directly or reviews film of workers on the job. </li></ul></ul><ul><ul><li>Individual interview method – a team of job incumbents is selected and extensively interviewed. </li></ul></ul><ul><ul><li>Group interview method – a number of job incumbents are interviewed simultaneously. </li></ul></ul>
    38. 38. Job Analysis <ul><li>Job Analysis Methods </li></ul><ul><ul><li>Structured questionnaire method – workers complete a specifically designed questionnaire. </li></ul></ul><ul><ul><li>Technical conference method – uses supervisors with an extensive knowledge of the job. </li></ul></ul><ul><ul><li>Diary method – job incumbents record their daily activities. </li></ul></ul><ul><li>The best results are usually achieved with some combination of methods. </li></ul>
    39. 39. Job Analysis <ul><li>Structured Job Analysis Techniques </li></ul><ul><ul><li>Department of Labor’s Job Analysis Process: </li></ul></ul><ul><ul><ul><li>Information from observations and interviews is used to classify jobs by their involvement with data, people and things. </li></ul></ul></ul><ul><ul><ul><li>Information on thousands of titles available on O*Net OnLine which is the Department of Labor’s replacement for the Dictionary of Occupational Titles. </li></ul></ul></ul>
    40. 40. Job Analysis <ul><li>Position Analysis Questionnaire (PAQ)(developed at Purdue University) </li></ul><ul><ul><li>Jobs are rated on 194 elements, grouped in six major divisions and 28 sections. </li></ul></ul><ul><ul><li>The elements represent requirements that are applicable to all types of jobs. </li></ul></ul><ul><ul><li>This type of quantitative questionnaire allows many different jobs to be compared with each other, however, it appears to be more applicable to higher-level professional jobs. </li></ul></ul>
    41. 41. Job Analysis <ul><li>Job Descriptions </li></ul><ul><ul><li>Written statement of what jobholder does, how it is done, under what conditions and why. </li></ul></ul><ul><ul><li>Common format: title; duties; distinguishing characteristics; environmental conditions; authority and responsibilities. </li></ul></ul><ul><ul><li>Used to describe the job to applicants, to guide new employees, and to evaluate employees. </li></ul></ul>
    42. 42. Job Analysis <ul><li>Job Specifications </li></ul><ul><ul><li>States minimum acceptable qualifications. </li></ul></ul><ul><ul><li>Used to select employees who have the essential qualifications. </li></ul></ul>
    43. 43. Job Analysis <ul><li>Job Evaluations </li></ul><ul><ul><li>Specify relative value of each job in the organization. </li></ul></ul><ul><ul><li>Used to design equitable compensation program. </li></ul></ul>
    44. 44. Job Analysis <ul><li>The Multi-faceted Nature of Job Analysis </li></ul><ul><ul><li>Almost all HRM activities are tied to job analysis. </li></ul></ul><ul><ul><li>Job analysis is the starting point for sound HRM. </li></ul></ul>
    45. 45. Job Analysis <ul><li>Job Analysis and the Changing World of Work </li></ul><ul><ul><li>Globalization, quality initiatives, telecommuting, and teams require adjustments to the components of a job. </li></ul></ul><ul><ul><li>Today’s jobs often require not only technical skills but interpersonal skills and communication skills as well. </li></ul></ul>
    46. 46. Recruitment and Selection By: Dr. Hadia Hamdy
    47. 47. Introduction <ul><li>Recruiting </li></ul><ul><ul><li>Once an organization identifies its human resource needs through employment planning, it can begin the process of recruiting potential candidates for actual or anticipated organizational vacancies. </li></ul></ul>
    48. 48. Introduction <ul><li>Recruiting brings together those with jobs to fill and those seeking jobs. </li></ul>
    49. 49. Recruiting Goals <ul><li>To provide information that will attract a significant pool of qualified candidates and discourage unqualified ones from applying. </li></ul>
    50. 50. Recruiting Goals <ul><li>Factors that affect recruiting efforts </li></ul><ul><ul><li>Organizational size </li></ul></ul><ul><ul><li>Employment conditions in the area </li></ul></ul><ul><ul><li>Working conditions, salary and benefits offered </li></ul></ul><ul><ul><li>Organizational growth or decline </li></ul></ul>
    51. 51. Recruiting Goals <ul><li>Constraints on recruiting efforts include: </li></ul><ul><ul><li>Organization image </li></ul></ul><ul><ul><li>Job attractiveness </li></ul></ul><ul><ul><li>Internal organizational policies </li></ul></ul><ul><ul><li>Recruiting costs </li></ul></ul>
    52. 52. Recruiting: A Global Perspective <ul><li>For some positions, the whole world is a relevant labor market. </li></ul><ul><li>Parent (Home) country nationals are recruited when an organization is searching for someone with extensive company experience to launch a very technical product in a country where it has never sold before. </li></ul>
    53. 53. Recruiting: A Global Perspective <ul><li>Host-country nationals (HCNs) are targeted as recruits when companies want each foreign subsidiary to have its own distinct national identity. </li></ul><ul><li>HCN’s minimize potential problems with language, family adjustment and hostile political environments. </li></ul>
    54. 54. Recruiting Sources <ul><li>Sources should match the position to be filled. </li></ul><ul><li>Sources : </li></ul><ul><ul><li>Internal Searches </li></ul></ul><ul><ul><li>Employee Referrals/ </li></ul></ul><ul><ul><li>Recommendations </li></ul></ul><ul><ul><li>External Searches </li></ul></ul><ul><ul><li>Alternatives </li></ul></ul>
    55. 55. Recruiting Sources <ul><li>The internal search </li></ul><ul><li>Organizations that promote from within identify current employees for job openings: </li></ul><ul><ul><li>by having individuals bid for jobs </li></ul></ul><ul><ul><li>by using their HR management system </li></ul></ul><ul><ul><li>by utilizing employee referrals </li></ul></ul>
    56. 56. Recruiting Sources <ul><li>The internal search </li></ul><ul><li>Advantages of promoting from within include </li></ul><ul><ul><li>morale building </li></ul></ul><ul><ul><li>encouragement of ambitious employees </li></ul></ul><ul><ul><li>availability of information on existing employee performance </li></ul></ul><ul><ul><li>cost-savings </li></ul></ul><ul><ul><li>internal candidates’ knowledge of the organization </li></ul></ul>
    57. 57. Recruiting Sources <ul><li>The internal search </li></ul><ul><li>Disadvantages include: </li></ul><ul><ul><li>possible inferiority of internal candidates </li></ul></ul><ul><ul><li>infighting and morale problems </li></ul></ul>
    58. 58. Recruiting Sources <ul><li>Employee referrals/recommendations </li></ul><ul><li>Current employees can be asked to recommend recruits. </li></ul><ul><li>Advantages include: </li></ul><ul><ul><li>the employee’s motivation to make a good recommendation </li></ul></ul><ul><ul><li>the availability of accurate job information for the recruit </li></ul></ul><ul><ul><li>Employee referrals tend to be more acceptable applicants, to be more likely to accept an offer and to have a higher survival rate. </li></ul></ul>
    59. 59. Recruiting Sources <ul><li>Employee referrals/recommendations </li></ul><ul><li>Disadvantages include: </li></ul><ul><ul><li>the possibility of friendship being confused with job performance </li></ul></ul>
    60. 60. Recruiting Sources <ul><li>External searches </li></ul><ul><li>Advertisements : Must decide type and location of ad, depending on job; decide whether to focus on job ( job description ) or on applicant ( job specification ). </li></ul><ul><li>Two factors influence the response rate: </li></ul><ul><ul><li>identification of the organization </li></ul></ul><ul><ul><li>labor market conditions </li></ul></ul>
    61. 61. Recruiting Sources <ul><li>External searches </li></ul><ul><li>Employment agencies : </li></ul><ul><ul><li>Public or state employment services focus on helping unemployed individuals with lower skill levels to find jobs. </li></ul></ul><ul><ul><li>Private employment agencies provide more comprehensive services and are perceived to offer positions and applicants of a higher caliber. </li></ul></ul>
    62. 62. Recruiting Sources <ul><li>External searches </li></ul><ul><li>Schools, colleges, and universities: </li></ul><ul><ul><li>May provide entry-level or experienced workers through their placement services. </li></ul></ul><ul><ul><li>May also help companies establish cooperative education assignments and internships. </li></ul></ul>
    63. 63. Recruiting Sources <ul><li>Recruitment alternatives </li></ul><ul><li>Temporary help services . </li></ul><ul><ul><li>Temporary employees help organizations meet short-term fluctuations in HRM needs. </li></ul></ul><ul><ul><li>Older workers can also provide high quality temporary help. </li></ul></ul><ul><li>Employee leasing . </li></ul><ul><ul><li>Trained workers are employed by a leasing company, which provides them to employers when needed for a flat fee. </li></ul></ul><ul><ul><li>Typically remain with an organization for longer periods of time. </li></ul></ul>
    64. 64. <ul><li>Questions??? </li></ul>
    65. 66. Selection
    66. 67. Selection – the process by which an organization chooses from a list of applicants the person or persons who best meet the selection criteria for the position available, considering current environmental conditions
    67. 68. Internal Environmental Factors Influencing Selection <ul><li>Organization characteristics that can influence the selection process: </li></ul><ul><ul><li>Size </li></ul></ul><ul><ul><li>Complexity </li></ul></ul><ul><ul><li>Technological ability </li></ul></ul>
    68. 69. External Environmental Factors Influencing Selection <ul><li>Government employment laws and regulations </li></ul><ul><li>Size, composition, and availability of local labor markets </li></ul>
    69. 70. Selection Criteria Formal Education Experience and Past Performance Physical Characteristics Personal Characteristics and Personality Type
    70. 71. Reliability of Selection Criteria <ul><li>Reliability – how stable or repeatable a measurement is over a variety of testing conditions. </li></ul>
    71. 72. Validity of Selection Criteria <ul><li>Validity – addresses the questions of: </li></ul><ul><ul><li>What a selection tool measures </li></ul></ul><ul><ul><li>How well it has measured it </li></ul></ul><ul><li>It is not sufficient for a selection tool to be reliable </li></ul><ul><li>The selection tool must also be valid </li></ul>
    72. 73. Steps in the Selection Process 4. Background and Reference Checks 5. Selection Decision 6. Physical Examination 2. Employment Interview 3. Employment Tests 1. Preliminary Screening
    73. 74. The Selection Process <ul><li>Initial Screening </li></ul><ul><ul><li>Involves screening of inquiries and screening interviews. </li></ul></ul><ul><ul><li>Job description information is shared along with a salary range. </li></ul></ul>
    74. 75. The Selection Process <ul><li>Employment Interview </li></ul><ul><li>Interviews involve a face-to-face meeting with the candidate to probe areas not addressed by the application form or tests </li></ul><ul><li>Two strategies for effective use of interviews: </li></ul><ul><ul><li>1. Structuring the interview to be reliable and valid </li></ul></ul><ul><ul><li>2. Training managers on best interview techniques </li></ul></ul>
    75. 76. The Selection Process <ul><li>Types of Interviews: </li></ul><ul><li>Unstructured interview </li></ul><ul><li>Structured interview </li></ul><ul><li>Behavioral Interviews </li></ul><ul><ul><li>Candidates are observed not only for what they say, but how they behave. </li></ul></ul><ul><ul><li>Role playing is often used. </li></ul></ul><ul><li>Stress Interviews . </li></ul>
    76. 77. The Selection Process <ul><li>Realistic Job Preview </li></ul><ul><ul><li>RJP’s present unfavorable as well as favorable information about the job to applicants. </li></ul></ul><ul><ul><li>May include brochures, films, tours, work sampling, or verbal statements that realistically portray the job. </li></ul></ul><ul><ul><li>RJP’s reduce turnover without lowering acceptance rates. </li></ul></ul>
    77. 78. The Selection Process <ul><li>Employment Tests </li></ul><ul><li>Mechanism that attempts to measure certain characteristics of individuals, e.g., </li></ul><ul><ul><li>aptitudes </li></ul></ul><ul><ul><li>intelligence </li></ul></ul><ul><ul><li>personality </li></ul></ul><ul><li>Should be validated before being used to make hiring decisions </li></ul>
    78. 79. The Selection Process <ul><li>Employment Tests </li></ul><ul><li>Estimates say 60% of all organizations use some type of employment tests. </li></ul><ul><ul><li>Performance simulation tests : requires the applicant to engage in specific job behaviors necessary for doing the job successfully. </li></ul></ul><ul><ul><li>Work sampling : Job analysis is used to develop a miniature replica of the job on which an applicant demonstrates his/her skills. </li></ul></ul>
    79. 80. The Selection Process <ul><li>Employment Tests </li></ul><ul><ul><li>Assessment centers : A series of tests and exercises, including individual and group simulation tests, is used to assess managerial potential or other complex sets of skills. </li></ul></ul><ul><ul><li>Testing in a global arena : Selection practices must be adapted to cultures and regulations of host country. </li></ul></ul>
    80. 81. The Selection Process <ul><li>Background Investigation : </li></ul><ul><li>Verify information from the application form </li></ul><ul><li>Typical information verified includes: </li></ul><ul><ul><li>former employers </li></ul></ul><ul><ul><li>previous job performance </li></ul></ul><ul><ul><li>education </li></ul></ul><ul><ul><li>legal status to work </li></ul></ul><ul><ul><li>credit references </li></ul></ul><ul><ul><li>criminal records </li></ul></ul>
    81. 82. The Selection Process <ul><li>Background Investigation </li></ul><ul><li>Do not always provide an organization with meaningful information about applicants </li></ul><ul><li>Concerns over the legality of asking for and providing confidential information about applicants </li></ul>
    82. 83. The Selection Process <ul><li>Physical Examinations </li></ul><ul><li>Should be required only after a conditional offer of employment has been made </li></ul>
    83. 84. Summary <ul><li>Putting more money into selection can significantly reduce the amount of money it must spend on training </li></ul><ul><li>A selection system will make some mistakes </li></ul><ul><ul><li>No guarantee of successful job performance </li></ul></ul>
    84. 85. Questions????
    85. 86. Training and Development By: Magda Hassan
    86. 87. Agenda <ul><li>The Socialization Process. </li></ul><ul><li>Employee Orientation. </li></ul><ul><li>Employee Training </li></ul><ul><li>Employee Development. </li></ul><ul><li>Organization Development. </li></ul><ul><li>Evaluation of Training Program. </li></ul>
    87. 88. Introduction <ul><li>Socialization, training and development are all used to help new employees adapt to their new organizations and become fully productive. </li></ul><ul><li>Ideally, employees will understand and accept the behaviors desired by the organization, and will be able to attain their own goals by exhibiting these behaviors. </li></ul>
    88. 89. 1. The socialization Process <ul><li>Socialization </li></ul><ul><ul><li>A process of adaptation to a new work role. </li></ul></ul><ul><ul><li>Adjustments must be made whenever individuals change jobs </li></ul></ul><ul><ul><li>The most profound adjustment occurs when an individual first enters an organization. </li></ul></ul>
    89. 90. 1. The socialization Process <ul><li>The assumptions of employee socialization: </li></ul><ul><ul><li>Socialization strongly influences employee performance and organizational stability </li></ul></ul><ul><ul><li>Provides information on how to do the job and ensuring organizational fit. </li></ul></ul><ul><ul><li>New members suffer from anxiety , which motivates them to learn the values and norms of the organization. </li></ul></ul>
    90. 91. 1. The socialization Process <ul><li>The assumptions of employee socialization: </li></ul><ul><ul><li>Socialization is influenced by subtle and less subtle statements and behaviors exhibited by colleagues, management, employees, clients and others. </li></ul></ul><ul><ul><li>Individuals adjust to new situations in remarkably similar ways. </li></ul></ul><ul><ul><li>All new employees go through a settling-in period. </li></ul></ul>
    91. 92. 1. The socialization Process A Socialization Process
    92. 93. 1. The socialization Process <ul><li>The Socialization Process </li></ul><ul><ul><li>Prearrival stage : Individuals arrive with a set of values, attitudes and expectations which they have developed from previous experience and the selection process. </li></ul></ul>
    93. 94. 1. The socialization Process <ul><li>The Socialization Process </li></ul><ul><ul><li>Encounter stage : Individuals discover how well their expectations match realities within the organization. </li></ul></ul><ul><ul><li>Where differences exist, socialization occurs to imbue the employee with the organization’s standards. </li></ul></ul>
    94. 95. 1. The socialization Process <ul><li>The Socialization Process </li></ul><ul><ul><li>Metamorphosis stage : Individuals have adapted to the organization, feel accepted and know what is expected of them. </li></ul></ul>
    95. 96. 2. New-Employee Orientation Purpose <ul><li>Orientation may be done by the supervisor, the HRM staff or some combination. </li></ul><ul><li>Formal or informal, depending on the size of the organization. </li></ul><ul><li>Covers such things as: </li></ul><ul><ul><li>The organization’s objectives </li></ul></ul><ul><ul><li>History </li></ul></ul><ul><ul><li>Philosophy </li></ul></ul><ul><ul><li>Procedures </li></ul></ul><ul><ul><li>Rules </li></ul></ul><ul><ul><li>HRM policies and benefits </li></ul></ul><ul><ul><li>Fellow employees </li></ul></ul>
    96. 97. 2. New-Employee Orientation <ul><li>Learning the Organization’s Culture </li></ul><ul><ul><li>Culture includes long-standing, often unwritten rules about what is appropriate behavior. </li></ul></ul><ul><ul><li>Socialized employees know how things are done, what matters, and which behaviors and perspectives are acceptable. </li></ul></ul>
    97. 98. 2. New-Employee Orientation Roles <ul><li>The CEO’s Role in Orientation </li></ul><ul><li>Senior management are often visible during the new employee orientation process. </li></ul><ul><li>CEOs can : </li></ul><ul><ul><li>Welcome employees. </li></ul></ul><ul><ul><li>Provide a vision for the company. </li></ul></ul><ul><ul><li>Introduce company culture -- what matters. </li></ul></ul><ul><ul><li>Convey that the company cares about employees. </li></ul></ul><ul><ul><li>Allay some new employee anxieties and help them to feel good about their job choice. </li></ul></ul>
    98. 99. 2. New-Employee Orientation <ul><li>HRM’s Role in Orientation </li></ul><ul><li>Coordinating Role : HRM instructs new employees when and where to report; provides information about benefits choices. </li></ul><ul><li>Participant Role : HRM offers its assistance for future employee needs (career guidance, training, etc.). </li></ul>
    99. 100. 3. Employee Training <ul><li>Definitions </li></ul><ul><ul><li>Employee training </li></ul></ul><ul><ul><li>a learning experience designed to achieve a relatively permanent change in an individual that will improve the ability to perform on the job. </li></ul></ul><ul><ul><li>Employee development </li></ul></ul><ul><ul><li>future-oriented training, focusing on the personal growth of the employee. </li></ul></ul>
    100. 101. 3. Employee Training Determining Training Needs
    101. 102. 4. Methods of Employee Training <ul><li>On-the-job training methods </li></ul><ul><ul><li>Job Rotation </li></ul></ul><ul><ul><li>Understudy Assignments </li></ul></ul><ul><li>Off-the-job training methods </li></ul><ul><ul><li>Classroom lectures </li></ul></ul><ul><ul><li>Films and videos </li></ul></ul><ul><ul><li>Simulation exercises </li></ul></ul><ul><ul><li>Vestibule training </li></ul></ul>
    102. 103. 5.Employee Development <ul><li>This future-oriented set of activities is predominantly an educational process. </li></ul><ul><li>All employees, regardless of level, can benefit from the methods previously used to develop managerial personnel. </li></ul>
    103. 104. 5.Employee Development <ul><li>Employee development methods </li></ul><ul><ul><li>Job rotation involves moving employees to various positions in the organization to expand their skills, knowledge and abilities. </li></ul></ul><ul><ul><li>Assistant-to positions allow employees with potential to work under and be coached by successful managers. </li></ul></ul>
    104. 105. 6. Employee Development Methods <ul><li>Employee development methods </li></ul><ul><ul><li>Committee assignments provide opportunities for: </li></ul></ul><ul><ul><ul><li>decision-making </li></ul></ul></ul><ul><ul><ul><li>learning by watching others </li></ul></ul></ul><ul><ul><ul><li>becoming more familiar with organizational members and problems </li></ul></ul></ul><ul><ul><li>Lecture courses and seminars benefit from today’s technology and are often offered in a distance learning format. </li></ul></ul>
    105. 106. 6. Employee Development Methods <ul><li>Employee development methods </li></ul><ul><ul><li>Simulations include case studies, decision games and role plays and are intended to improve decision-making. </li></ul></ul><ul><ul><li>Outdoor training typically involves challenges which teach trainees the importance of teamwork. </li></ul></ul>
    106. 107. 7. Organization Development <ul><li>What is change? </li></ul><ul><li>OD efforts support changes that are usually made in four areas: </li></ul><ul><ul><li>The organization’s systems </li></ul></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><li>Processes </li></ul></ul><ul><ul><li>People </li></ul></ul>
    107. 108. 7. Organization Development <ul><li>Two metaphors clarify the change process. </li></ul><ul><ul><li>The calm waters metaphor describes unfreezing the status quo, change to a new state, and refreezing to ensure that the change is permanent. </li></ul></ul><ul><ul><li>The white-water rapids metaphor recognizes today’s business environment which is less stable and not as predictable. </li></ul></ul>
    108. 109. 8. Evaluating Training and Development Effectiveness <ul><li>Evaluating Training Programs: </li></ul><ul><li>Typically, employee and manager opinions are used, </li></ul><ul><ul><li>These opinions or reactions are not necessarily valid measures </li></ul></ul><ul><ul><li>Influenced by things like difficulty, entertainment value or personality of the instructor. </li></ul></ul><ul><li>Performance-based measures (benefits gained) are better indicators of training’s cost-effectiveness. </li></ul>
    109. 110. Performance Appraisal and Compensation By: Yomna Sameer
    110. 111. Evaluating Employee Performance - Agenda <ul><li>Purpose of performance management system </li></ul><ul><li>Difficulties in performance management system </li></ul><ul><li>Steps of the Appraisal process </li></ul><ul><li>Appraisal methods </li></ul>
    111. 112. Performance Evaluation <ul><li>The performance management systems need to include: </li></ul><ul><ul><li>decisions about who should evaluate performance </li></ul></ul><ul><ul><li>what format should be used </li></ul></ul><ul><ul><li>how the results should be utilized </li></ul></ul>
    112. 113. Purposes of a Performance Management System <ul><ul><li>Feedback - let employees know how well they have done and allow for employee input. </li></ul></ul><ul><ul><li>Development – identify areas in which employees have deficiencies or weaknesses. </li></ul></ul>
    113. 114. Difficulties in Performance Management Systems <ul><ul><li>Focus on the individual : Discussions of performance may elicit strong emotions and may generate conflicts when subordinates and supervisors do not agree. </li></ul></ul>
    114. 115. Difficulties in Performance Management Systems <ul><ul><li>Focus on the process : Company policies and procedures may present barriers to a properly functioning appraisal process. </li></ul></ul><ul><ul><li>Additionally, appraisers may be poorly trained. </li></ul></ul>
    115. 116. The Appraisal Process
    116. 117. Step 1 and 2 <ul><li>Establishment of performance standards </li></ul><ul><ul><li>Derived from company’s strategic goals. </li></ul></ul><ul><ul><li>Based on job analysis and job description. </li></ul></ul><ul><li>Communication of performance standards to employee. </li></ul>
    117. 118. Step 3 and 4 <ul><li>Measurement of performance using information from: </li></ul><ul><ul><li>personal observation </li></ul></ul><ul><ul><li>statistical reports </li></ul></ul><ul><ul><li>oral reports </li></ul></ul><ul><ul><li>written reports </li></ul></ul><ul><li>Comparison of actual performance with standards. </li></ul>
    118. 119. Step 5 and 6 <ul><li>Discussion of appraisal with employee. </li></ul><ul><li>Identification of corrective action where necessary. </li></ul><ul><ul><li>Basic corrective action deals with causes. </li></ul></ul>
    119. 120. Appraisal Methods <ul><li>Three approaches: </li></ul><ul><li>Absolute standards </li></ul><ul><li>Relative standards </li></ul><ul><li>Objectives </li></ul>
    120. 121. 1. Absolute Standards <ul><li>Evaluating absolute standards : </li></ul><ul><li>An employee’s performance is measured against established standards. </li></ul><ul><li>Evaluation is independent of any other employee. </li></ul>
    121. 122. 1. Absolute Standards <ul><ul><li>Essay Appraisal : Appraiser writes narrative describing employee performance & suggestions. </li></ul></ul><ul><ul><li>Critical Incident Appraisal : Based on key behavior incident illustrating effective or ineffective job performance. </li></ul></ul>
    122. 123. 1. Absolute Standards <ul><ul><li>Checklist Appraisal : Appraiser checks off behaviors that apply to the employee. </li></ul></ul><ul><ul><li>Adjective Rating Scale Appraisal : Appraiser rates employee on a number of job-related factors. </li></ul></ul>
    123. 124. 1. Absolute Standards <ul><ul><li>Forced-Choice Appraisal: Appraisers choose from sets of statements which appear to be equally favorable, the statement which best describes the employee. </li></ul></ul>
    124. 125. 1. Absolute Standards <ul><li>Behaviorally Anchored Rating Scales (BARS): Appraiser rates employee on factors which are defined by behavioral descriptions illustrating various dimensions along each rating scale. </li></ul>
    125. 126. 2. Relative Method <ul><li>Employees are evaluated by comparing their performance to the performance of other employees. </li></ul>
    126. 127. 2. Relative Method <ul><li>Group Order Ranking : Employees are placed in a classification reflecting their relative performance, such as “top one-fifth.” </li></ul>
    127. 128. 2. Relative Method <ul><ul><li>Individual Ranking : Employees are ranked from highest to lowest. </li></ul></ul><ul><ul><li>Paired Comparison : </li></ul></ul><ul><ul><ul><li>Each individual is compared to every other. </li></ul></ul></ul><ul><ul><ul><li>Final ranking is based on number of times the individual is preferred member in a pair. </li></ul></ul></ul>
    128. 129. 3. Achieved Outcome Method <ul><ul><li>Management by Objectives (MBO)‏ </li></ul></ul><ul><ul><li>includes mutual objective setting and evaluation based on the attainment of the specific objectives </li></ul></ul>
    129. 130. 3. Achieved Outcome Method <ul><ul><li>Common elements in an MBO program are: </li></ul></ul><ul><ul><ul><li>goal specificity </li></ul></ul></ul><ul><ul><ul><li>participative decision making </li></ul></ul></ul><ul><ul><ul><li>an explicit time period </li></ul></ul></ul><ul><ul><ul><li>performance feedback </li></ul></ul></ul><ul><ul><li>Effectively increases employee performance and organizational productivity. </li></ul></ul>
    130. 131. Creating More Effective Performance Management Systems
    131. 132. Development of Compensation and Pay systems - Agenda <ul><li>Objectives of compensation </li></ul><ul><li>Types of rewards </li></ul><ul><li>Development of a base pay system </li></ul>
    132. 133. Objectives of compensation <ul><li>Efficiency </li></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Performance </li></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><li>Fairness </li></ul><ul><li>Compliance </li></ul>
    133. 134. Types of Reward Plans <ul><li>Intrinsic versus Extrinsic Rewards </li></ul><ul><li>Intrinsic rewards (personal satisfactions) come from the job itself, such as: </li></ul><ul><ul><li>pride in one’s work </li></ul></ul><ul><ul><li>feelings of accomplishment </li></ul></ul><ul><ul><li>being part of a work team </li></ul></ul>
    134. 135. Types of Reward Plans <ul><li>Intrinsic versus Extrinsic Rewards </li></ul><ul><li>Extrinsic rewards come from a source outside the job </li></ul><ul><ul><li>include rewards offered mainly by management </li></ul></ul><ul><ul><li>Money </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><ul><li>Benefits </li></ul></ul>
    135. 136. Types of Reward Plans <ul><li>Financial versus Non-financial Rewards </li></ul><ul><li>Financial rewards include: </li></ul><ul><ul><li>wages </li></ul></ul><ul><ul><li>bonuses </li></ul></ul><ul><ul><li>profit sharing </li></ul></ul><ul><ul><li>pension plans </li></ul></ul><ul><ul><li>paid leaves </li></ul></ul><ul><ul><li>purchase discounts </li></ul></ul><ul><li>Non-financial rewards emphasize making life on the job more attractive; employees vary greatly on what types they find desirable. </li></ul>
    136. 137. Introduction
    137. 138. Development of a Base Pay System Job Analysis Job Evaluation Pay Survey Pay Structure & Grades Job Structure
    138. 139. Development of a Base Pay System <ul><li>Job Evaluation </li></ul><ul><li>Use of job analysis information to determine the relative value of each job in relation to all jobs within the organization. </li></ul><ul><ul><li>The ranking of jobs </li></ul></ul><ul><ul><li>Labor market conditions </li></ul></ul><ul><ul><li>Collective bargaining </li></ul></ul><ul><ul><li>Individual skill differences </li></ul></ul>
    139. 140. Development of a Base Pay System <ul><li>Job Evaluation Methods </li></ul><ul><li>Ordering method : A committee places jobs in a simple rank order from highest (worth highest pay) to lowest. </li></ul>
    140. 141. Development of a Base Pay System <ul><li>Job Evaluation Methods </li></ul><ul><li>Classification method : </li></ul><ul><ul><li>Jobs are placed in classification grades </li></ul></ul><ul><ul><li>Compare their descriptions to the classification description and benchmarked jobs </li></ul></ul><ul><ul><li>Look for a common denominator such as skills, knowledge, or responsibility </li></ul></ul>
    141. 142. Development of a Base Pay System <ul><li>Job Evaluation Methods </li></ul><ul><li>Point method : </li></ul><ul><ul><li>Jobs are rated and allocated points on several identifiable criteria, using clearly defined rating scales. </li></ul></ul><ul><ul><li>Jobs with similar point totals are placed in similar pay grades. </li></ul></ul><ul><ul><li>Offers the greatest stability. </li></ul></ul>
    142. 143. Development of a Base Pay System <ul><li>Establishing the Pay Structure </li></ul><ul><li>Compensation surveys </li></ul><ul><ul><li>Used to gather factual data on pay rates for other organizations </li></ul></ul><ul><ul><li>Information is often collected on associated employee benefits as well </li></ul></ul>
    143. 144. Any Questions <ul><li>? </li></ul>