HRM
Session 15 & 16
1
WHY HUMAN RESOURCE
MANAGEMENT IS IMPORTANT
All Managers Engage in Human Resource Management
Activities
interview job candidates
orient new employees
evaluate work performance
Achieving competitive success through people, requires a
fundamental change in how management thinks about
employees
High performance work practices--work practices that lead to
both high individual and high organizational performance
2
HUMAN RESOURCE
MANAGEMENT PROCESS
Necessary for staffing the organization and sustaining high
employee performance
Identify and select competent employees
Provide up-to-date knowledge and skills
Retain competent, high performing employees
Influenced by the external environment
Labor union - represents workers and protects their interests
through collective bargaining
Government regulations to assure equal employment opportunities
3
4
HUMAN RESOURCE PLANNING
Ensures:
That organization has the right number and kind of people in the
right places and at the right time
Employees are capable of effectively and efficiently performing their
assigned tasks
Current Assessment
Job analysis - defines jobs and the behaviors necessary to perform
them
Job description - statement of what job holder does, how it is
done, and why it is done
Job specification - statement of the minimum qualifications that a
person must possess to perform a given job
5
HUMAN RESOURCE PLANNING
(continued)
Meeting Future Human Resource Needs
Determined by the organization’s goals and strategies
Demand for employees is a result of demand for the organization’s
products and services
Comparison of current HR capabilities and future needs determines
areas of overstaffing or understaffing
6
RECRUITMENT AND DECRUITMENT
Recruitment
Process of locating, identifying, and attracting capable applicants
Choice of recruiting source determined by:
local labor market
type or level of position
size of the organization
Employee referrals typically produce the best applicants
Decruitment
Process of reducing the size of the organization’s workforce or
restructuring its skill base
Used to meet the demands of a dynamic environment
Firing, Layoffs, Attrition, Transfers, Reduced workweeks, Early
retirements, Job sharing
7
SELECTION
Selection Process
Screening job applicants to ensure that the most appropriate
candidates are hired
Prediction exercise to determine which applicants will be successful
if hired
Selection decisions may be correct or incorrect
8
ORIENTATION
Work Unit Orientation
Familiarizes new employee with goals of the work unit
Organization orientation
Informs new employee about the organization’s objectives, history,
procedure, and rules
Successful orientation
May be formal or informal
Makes new member feel comfortable, lowers likelihood of poor
performance and resignations
9
TRAINING
Skill Categories
As jobs change, employee skills have to be updated
Technical skills - basic and job-specific competencies
Interpersonal skills - ability to interact effectively
Problem-solving skills - useful in non-routine jobs
10
PERFORMANCE
Performance Management System
Process of establishing standards and appraising employee
performance
Performance Appraisal Methods
Each method has advantages and disadvantages
Written essay - written description of employee’s strengths and
weaknesses
Critical incidents - focus is behavior that defines effective and
ineffective performance
11
PERFORMANCE (continued)
Performance Appraisal Methods
Objectives - employees evaluated by how well they accomplish a
specific set of goals
Management By Objectives (MBO) - preferred method of
appraising managers and professional employees
360 degree feedback - utilizes feedback from supervisors,
employees, and coworkers
12
COMPENSATION (WAGES AND BENEFITS)
Goals of Compensation Programs
Attract and retain competent and talented individuals
Positively impact organization’s strategic performance
Skill-based pay
Rewards employees for their job skills and competencies
Job title doesn’t define pay category
Mesh nicely with the changing nature of jobs
Trends in compensation
Make pay systems more flexible
Reduce the number of pay levels
13
FACTORS THAT INFLUENCE
COMPENSATION/BENEFITS
Company Profitability
Kind of Job performed
Kind of Business
Unionization
Labor or Capital Intensive
Management Philosophy
Geographical location
Size of company
Employee’s tenure and performance
14
CAREER DEVELOPMENT
Career
Sequence of positions held by a person during her or his lifetime
The Way It Was
Employees advanced their work lives within a single organization
Career development was a way to attract and retain quality
employees
Uncertainty brought organizational changes that undermine
principles of traditional career development
15
CAREER DEVELOPMENT
(continued)
You and Your Career Today
Boundary-less career - individual, not organization, responsible for
career
Career choice - optimally offers the best match between person’s
aspirations and her or his abilities and market opportunities
16
SOME SUGGESTIONS FOR A
SUCCESSFUL MANAGEMENT CAREER
17
Assignment in form of group ppt
1. How does HRM affect all managers?
2. Discuss the external environmental factors that most
directly affect the HRM process.
3. Should an employer have the right to choose employees
without governmental interference? Support your
conclusion.
4. What do you think? What benefits are there to having a
formal HRM process? What drawbacks?
5. Describe the different selection methods and which work
best for different jobs.
6. Describe the different performance appraisal methods.
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