human resources

1. Lecture 1,2

2. Why Do You Study Human Resource Management?
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3. The Big Picture is:
The People Make
the Place
• Effective Human Resource Management helps
organizations achieve their financial objectives.
• Effective Human Resource Management helps some
companies survive and even thrive in difficult times.
• Effective Human Resource Management gives
organizations an advantage over their competitors.
• Effective Human Resource Management Practices Help
organizations meet the needs of employees, customers,
owners, and society.
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4. What is Human Resource
Management?
• Human resource management is defined as a
strategic and coherent approach to the
management of an organization’s most
valued assets – the people working there,
who individually and collectively contribute
to the achievement of its objectives.
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5. How to Create Value through
Human Resources?
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Source: Stewart et al, Human resource management-linking strategy to practice

6. Human Resource Activities
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• Human Resourcing
• Human Development
• Reward Management
• Human Relations
• Organisational Development

7. Human resource planning HRP
HRP is the process of determining future employee
needs and deciding steps or strategies to achieve those
needs for the purpose of accomplishing organization
goals and objectives.

8.  To determine future employee needs
 To utilize HR more efficiency and effectively
 To control employee cost
 To develop high talent employees
 To formulate and implement strategic plans

9. 1
2
3
4
5
Forecast future demand for HR
Estimate HR supply
Compare forecast demand with estimated
supply
Develop strategies to be taken
Assess HRP effort
Feedback

10. Forecasting employee requirements for the organization
comes under this step. Forecasting demand for human
resources involves estimating the types and numbers of
employees needed for future

11. Factors affecting future demand for HR
Demand for the product
Goals and strategic plans of the organization
Production methods
Retirements
Resignations
Deaths
Leave of absence
Termination
External factors

12. Forecasting Techniques
1. Informal Forecast
This is the easiest way of forecasting future
demand for human resources. Under this
technique, future demand for human
resources is determined without a
systematic base and it is done quickly and
randomly. Generally this technique may be
good only for small organizations but cannot
be recommended as a good method for
large organizations to apply.

13. 2. Formal Expert survey
Systematically future demand for human
resources is estimated by conducting a
survey among experts. A better method is
for planners to survey managers, who are
experts about their department’s future
employments needs; and centralization of
this information permits formal plans that
identify the organization’s future demands.
Data collection can be done by using a
questionnaire or conducting interviews

14. 5.Extrapolation
Extrapolation involves extending past rates of
change into future . It is based on past data
and an attempt is made to find a trend or a
pattern that might continue into the future.

15. 6. Indexation
This is another approach that mean making
forecast based on the ratio between (1)
some casual factor(like sales volume) and (2)
number of employee required

16. Staffing table/ Manning table
A staffing table lists the future emplacement
needs for each type of job. This listing may
be a specific number or an approximate
range of needs, depending on the accuracy
of the underlying forecast. These estimates
allow personnel specialists to match short-
range demand and supply.

17.  Internal Supply
Internal supply consists of current employees who can be
promoted and transferred to meet forecast needs or fill job
vacancies which are in the staffing table.
 External supply
External supply consist of people who are working for other
organizations in industries and job seekers who are
unemployed. They are the people who are in the employee
market.

18. Steps in HR supply
1. Auditing current HR
This mean assessing education, experience and
competencies of all the current employees
in the organization. In this context HR audit
is a systematic attempt to summarize each
employee’s education, experience and
competencies.
The audit results in preparing two documents
1. Skill inventories
2. Management inventories

19. Skill inventories- The audits of non managers
are called skill inventories
A skill inventory should contain the following information accurately:
 Identification information of the employee(name, address, sex, age, etc.)
 Identification information of the current job( job title, job location etc.)
 Education ( academic and professional)
 Experiences including previous jobs held
 Seniority
 Special competencies
 Trainings
 Current and past job performance evaluations
 Promotability
 Weaknesses
 Preferences

20. Management inventories- audits of managers
are called management inventories.
In addition to the above, a management
inventory includes the following matters;
Number of subordinates supervised
Jobs and duties of the subordinates
Total budget managed
Management training received
Management systems developed and
implemented
Creative works and innovations

21. 02.Identifying and arranging possible
replacements( succession planning)
By comparing HR audit information ( skills and management
inventories) with the job analysis information ( job description and
job specification), it requires identifying and deciding the most
appropriate person from the current employees to fill the job
vacancies. These replacements or tentative assignments can be
recorded on replacements charts.
Replacements chart/ succession planning
A replacement chart is a visual representation of who will replace,
whom in the event of a job opening

22. The third step of the process of HRP is to compare forecast demand
with estimated supply. Here calculating net employee requirements
for the relevant period of planning should be done. It is possible to
calculate net employee requirements by subtracting estimated/
projected supply( replacements) from forecast HR demand. Its
involves determining net employee requirements and identifying
shortages and surpluses of HR

23. Calculation of Net employee Requirement
Job No. Job title Forecast
Demand
Estimated
Supply
Net Employee
Requirement
O03 Assistant Operation
Manager
01 00 -01
O07 Production Supervisor 02 02 00
F01 Finance Manger 01 01 00
F05 Management Trainee
(Fin)
01 00 -01
M04 Sales Engineer 07 02 -05
H03 HR executive 02 01 -01
A05 Driver 01 03 +02
--------------- ----------------------------- ------------ ---------------- ------------------------
Total Xxx Xxx Xxx

24. Strategies in surplus conditions:
 Hiring freeze
 Attrition ( Voluntary departures)
 Encouragement of leaves of absence
 Early retirement on voluntary basis
 Reduction of reward expenditure
 Lay off
 Formal outplacement facilities
 Termination

25. Strategies in shortage conditions
Have current employees work overtime
Sub contract work to other firms
Provide opportunities for learners for a
period of time
Hire part- time employees
Hire casual employees
Hire temporary employees
Hire permanent full-time employees
Capital substitution

26. Job Analysis

27. Job Analysis Defined
Job analysis is the process of studying jobs to gather,
analyze, synthesize and report information about job
responsibilities and requirements and the conditions
under which work is performed.
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28. 39
Uses of Job Analysis Information

29. Job analysis can be used as a
Foundation of all HR practices
JOB
ANALYSIS
HR Planning
Staffing
Training
Performance
Management
Safety
&
Health
Rewards
Employee
Relations
Legal
Compliance
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30. 41
Steps in Job Analysis
1
2
3
4
5
Steps in doing a job analysis:
Review relevant background information.
Decide how to use the information.
Select representative positions.
Analyze the job.
Verify the job analysis information.
6 Develop a job description and job specification.

31. Data Sources
• Job incumbent
• Supervisor or manager
• Former jobholders
• Job analyst
• Subject matter experts (SMEs)
• Professional organizations like SHRM
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©SHRM 2009

32. Data Collection Methods
• Observation
• Work sample
• Work diary
• Interview
• Questionnaire
• Perform the job
• Background records
• Multiple methods
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©SHRM 2009

33. Methods of Collecting Information
for Job Analysis: Interview
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• Information sources
– Individual employees
– Groups of employees
– Supervisors with
knowledge of the job
• Advantages
– Quick, direct way to find
overlooked information.
• Disadvantages
– Distorted information
• Interview formats
– Structured (Checklist)
– Unstructured

34. Methods of Collecting
Information: for job analysis:
Questionnaires
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• Information source
– Have employees fill out questionnaires to describe their job-
related duties and responsibilities.
• Questionnaire formats
– Structured checklists
– Opened-ended questions
• Advantages
– Quick and efficient way to gather information from large
number of employees
• Disadvantages
– Expense and time consumed in preparing and testing the
questionnaire

35. Methods of Collecting
Information
for job analysis: Observation
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• Information source
– Observing and noting the physical activities of employees as
they go about their jobs.
• Advantages
– Provides first-hand information
– Reduces distortion of information
• Disadvantages
– Time consuming
– Difficulty in capturing entire job cycle
– Of little use if job involves a high level of mental activity.

36. Methods of Collecting Information for
job analysis: Participant Diary/Logs
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• Information source
– Workers keep a chronological diary/ log of what they do and
the time spent in each activity.
• Advantages
– Produces a more complete picture of the job
– Employee participation
• Disadvantages
– Depends upon employees to accurately recall their activities

37. Outcomes of Job Analysis
• Job description:
– Systematic, detailed summary of job
tasks, duties and responsibilities.
– Assures that employees and managers
are on the same page regarding who
does what.
• Job specification:
– Detailed summary of qualifications
needed to perform required job tasks.
• Performance standards:
– Establishes the level of satisfactory
performance.
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©SHRM 2009

38. Recruitment

39. recruitment
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40. The Recruitment Process
Defining requirements: preparing result-orientated job
descriptions and person specifications within the competency
framework deciding terms and conditions of employment.
Attracting candidates: reviewing and evaluating alternative
sources of applicants inside and outside the company,
advertising using agencies and consultants.
Selecting candidates: sifting applicants, assessing,
interviewing, offering employment, obtaining references,
preparing contracts 51
The three stages of
recruitment and selection are:

41. 52
Finding Internal Candidates
Hiring from
Within
Job Posting
Succession
Planning (HRIS)
Rehiring Former
Employees

42. Sources Of Candidates
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Hiring From Within
Advantages
 knowledge of candidates’ strengths and weaknesses
 More accurate view of candidate’s skills
 Candidates have a stronger commitment to the company
 Increases employee morale
 Less training and orientation required
Disadvantages
 Failed applicants become discontented
 Time wasted interviewing inside candidates who will not be
considered
 Inbreeding of the status quo

43. Source of Candidates (cont.)
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Using Employment Agencies
Reasons:
•When a firm doesn’t have an HR department and is not geared
to doing recruiting and screening.
•The firm has found it difficult in the past to generate a pool of
qualified applicants.
•The firm must fill a particular opening quickly.
•The firm wants to cut down on the time it’s devoting to
recruiting.

44. Source of Candidates (cont.)
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• Advertisement
•Effective Ad
•Ineffective Ad
•Employee Referrals
•Walk-ins
•College Employment Fairs

45. Source of Candidates
Recruiting Employees
Internal
Searches
Advertising The
internet
Employme
nt Agencies
Universities Employme
nt fairs
Head-
Hunting
Referrals Walk-ins
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46. 57
Outside Sources of Candidates
1
2
3
4
Advertising
Recruiting via the Internet
Employment Agencies
Offshoring/Outsourcing
5
6
7
Executive Recruiters
College Recruiting
Referrals and Walk-Ins
Locating Outside Candidates