Download Human Resources Management

Human Resources
Management
7/6/2017
Yrd. Doç. Dr.İbrahim İnan
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The aim of this hand out is to help the students for better understanding the subject
with a solid examples and explanations.
7/6/2017
Yrd. Doç. Dr.İbrahim İnan
Prepared by Ibrahim Inan
Syllabus
Mid-term exam (30%)
Final exam (50%)
presentations (15%)
participation (5%)
• attendance
• speaking up
7/6/2017
Yrd. Doç. Dr.İbrahim İnan
Program
Introduction to Human Resource Management
What is HRM?
Human Resource Management at Work
Responsibilities of the HR Department
what does HRM involve
Specific HRM Functions
Goals of Human Resource Management
FUNCTION OF Human Resources Management
Recruitment
Selection
Employment Legislation
Discrimination
Development
Training
Rewards Systems
Trade Unions
Desired Outcomes of HRM
Productivity
Human Resources Management : The Strategic Business Partner!
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Yrd. Doç. Dr.İbrahim İnan
What is HRM?
Human Resource Management Human Resource Management includes all activities used to
attract & retain employees and to ensure they perform at a high level in meeting
organizational goals. These activities are made up of 1. Recruitment & selection. 2.
Training and development. 3. Performance appraisal and feedback. 4. Pay and benefits. 5.
Labor relations
Labor
Capital Goods
(e.g. Equipment)
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Products
Services
Raw Materials
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HRM is a Separate Department
Subsystems
A “Staff” perspective
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Potential Employees Retired Employees
Recruiting Hiring Education And
training Termination Benefit
administration ACTIVITIES OF HRM
DATA MANAGEMENT EMPLOYEES THE
FIRM
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OBJECTIVES… EFFECTIVE UTILISATION OF HUMAN
RESOURCES ORGANISATIONAL STRUCTURE OF RELATIONSHIP DEVELOPMENT OF
HUMAN RESOURCES REWARDS COMPATIBILITY OF INDIVIDUAL GOALS WITH
THOSE OF AN ORGANISTION MAINTAIN HIGH MORAL..
Human
Resources
Research &
Development,
Engineering
Management
Finance
Materials,
Production,
and/or
Services
Management
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Major
Organizational
Subsystems
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Marketing
Why a Separate Department is Useful
1) Importance of Human Resources
Competitive Advantage
2) Increasing Complexity
Global workforce
3) External Influences
Legal Requirements
ACTIVITES OF HRM RECRUITMENT
PLACEMENT TRAINING AND
EDUCATION COMPENSATION
MAINTENANCE
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Human Resource Management at Work
Management Process
The five basic functions of planning, organizing, staffing, leading, and
controlling.
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Yrd. Doç. Dr.İbrahim İnan
Human Resource Management at Work
Human Resource Management
The policies and practices involved in carrying out the “people” or human
resource aspects of a management position, including recruiting, screening,
training, rewarding, and appraising.
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Yrd. Doç. Dr.İbrahim İnan
Human Resource Management at Work
Why is Human Resource Management is Important to all
Managers?
All Managers are Human Resource managers
To avoid mistakes and getting results
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Human Resource Management at Work
Authority
The right to make decisions, direct others’ work, and give orders
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Human Resource Management at Work
Line Authority
Staff 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
Line Manager
Staff Manager
A manager who is authorized to
direct the work of subordinates and
is responsible for accomplishing
the organization’s tasks
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Staff authority gives the right
(authority) to advice other
managers or employees
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A manager who assists and
advises line managers.
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Human Resource Management at Work
Line Managers Human
Resource Duties
Human Resource Managers
Duties
A line function
A coordinative Function
Staff function
??????????????
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Human Resource Management at Work
HR functions in
small business
Manager/Owner
Sales M.
Operations M.
Finance M.
HR functions in
medium size firm
President
Sales M.
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Operations M
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Finance M.
HR M.
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Human Resource Management at Work
HR functions in a
large firm
President & CEO
Training & Dev.
Manager
Marketing VP
Operations VP
Finance VP
HRM VP
Compensation &
Benefits Manager
Staffing
Manager
Safety & Health
Manager
Labor Relations
Manager
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Human Resource Management at Work
An evolving HR
organization
President & CEO
Marketing VP
Outsourced
Executive
Development
Manager
HRM VP
Training
Manager
Finance VP
Benefits
Manager
Operations VP
Other HRM
Functions
Manager
Shared
Service
Center
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The Changing Environment of Human Resource
Management
Globalization Trend
Technological Trends
Trends in the Nature of Work
High tech jobs
Service jobs
Knowledge work and human capital
Workforce demographic trends
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The Changing Role of Human Resource Management
Strategic human
resource
management
Creating high
performance work
systems
Measuring the
human resource
management team’s
performance
Managing with the
HR scorecard
process
Formulating and executing human resource policy and practices
that produce the employee competencies and behaviors the
company needs to achieve its strategic aims
# Managing with technology
# Effective HR practices
# High performance work systems
Metrics (A set of quantitative performance measures use to assess
their operations)
HR scorecard (Measures the HR function’s effectiveness and
efficiency in producing employee behavior needed to achieve the
company’s strategic goals
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Responsibilities of
the HR Department
Advice and Counsel
Service
Policy Formulation
and Implementation
Employee
Advocacy
Strategic Partner
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Every Supervisor or Manager
is an HR Manager
Anyone who deals with subordinates
plays a HRM role
The “Line” perspective
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Tasks Completed by Line Managers
Interview job applicants
Provide orientation, coaching, and on-thejob training
Provide and communicate job performance
ratings
Recommend salary increases
Carry out disciplinary procedures
Investigate accidents
Settle grievance issues
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So just what does HRM involve?
Ways of categorizing HR activities
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Four Activities
The Acquisition
of
Human Resources
The Development
of
Human Resources
The Rewarding
of
Human Resources
The Maintenance
of
Human Resources
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How HR Functions Relate to HR
Activities
The Acquisition of
Human Resources
Planning
Analyzing Jobs
Recruitment
Selection
The Development of
Human Resources
Appraising
Training
Developing
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How HR Functions Relate to HR
Activities, continued
The Maintenance of
Human Resources
The Rewarding of
Human Resources
Employee Benefits
Safety & Health
Labor Relations
Compensating
(Wages & Salaries)
(Incentives)
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Goals of Human Resource
Management
Facilitating
organizational
competitiveness
Enhancing
productivity and
quality
The human resource
function in contemporary
organizations
Complying with
legal and social
obligations
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Promoting
individual growth
and development
Desired Outcomes of HRM
Attraction
Retention
Job Performance
Productivity
Employee Safety and Health
Attendance
Job Satisfaction
Competitive Advantage
Company Performance
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Specific HRM Functions
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Human Resource Planning
Analyzing Jobs
Recruiting
Selecting
Appraising
Training
Developing
Compensating
Benefits
Work Environment
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HRM Planning:
Outsourcing Outsourcing: managers can
decide to contract with outside workers
rather than hiring them. Outsourcing is
more flexible for the firm. Outsourcing
often provides human capital at a lower
cost.
Outsource problems: managers lose
control over output. Outsource contractors
are not committed to the firm.
Unions typically are against outsourcing
that has potential to eliminate member’s
jobs.
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HRM Planning:
Job Analysis Job analysis determines the tasks,
duties and responsibilities of the job.
A job analysis should be done for each job in the
organization.
Job analysis can be done by: Observe current
workers.
Questionnaires filled out by worker and
managers. Current trends are toward flexible
jobs where duties are not easily defined in
advance.
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Yrd. Doç. Dr.İbrahim İnan
Human Resources
The Strategic Business Partner! HRM Components Component
should be consistent with the others, organization structure, and
strategy. Recruitment: develop a pool of qualified applicants
The Topic that we are covering in are presentation is feasibility of manpower resource, which is
known as HR management in today’s corporate world.
Feasibility Study focusing manpower:
Feasibility Study focusing manpower A feasibility study phase provides the analyst with a more
thorough understanding of the problems, opportunities related to personnel’s . A feasibility
study should be conducted to determine the viability of an idea before proceeding with the
development of HUMAN RESOURCE .
Objective of feasibility study in HR: To increase the benefit and lessen
the cost
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Yrd. Doç. Dr.İbrahim İnan
Economic feasibility As the world denotes that the economic
feasibility means more benefit at less expenditure . So every
organization must keep in mind while recruitments of the
personnel’s that more people should not be employed than
required as it can raise the cost.
Motivational feasibility Motivation plays a vital role in overall
improvement in terms of efficiency of personnel’s. As through
motivation more and more work with grater efficiency can be
taken away from employees Different ways of motivations are:
→ Performance appraisals → Training and development →
Improving working condition as par their health and security. →
Incentives and perks etc.
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Operational feasibility Before switching to new
technology, it mainly examines whether the employees
at work are comfortable with organizational frame work..
Are the Requirements, specifications and design clearly
explained to the employees, so that they conduct their
operations successfully.
Political feasibility It is perhaps the most power full type
of feasibility. As every political system is biased. Because
government issues, new polices which can effect the
moral of the personnel’s at a larger extent. Hence these
are the different types of feasibility having different
effects on the conduct of personnel’s.
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What Next?
After the feasibility study has been
completed, a Feasibility Report is
prepared covering following aspects.
Basic information about the personnel’s
The expectations as regards development
schedule and manpower resources
Highlighting the requirements of
personnel’s. A gist of Technical,
economical, Operational, motivational and
political feasibility assessment.
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SYSTEM ANALYSIS The analysis of the system is the basic necessity for
an efficient system design.The need for analysis stems from the following
points: To redefine or reset the objectives as a reference point in context
of the current business requirement. To establish the system boundaries
that define the scope and coverage of the system.
SYSTEM ANALYSIS STAGES The different stages as followed in the
system analysis of the HR management information system are :
ORGANISATIONAL ANALYSIS A Human Resources Information System, is
a system that lets you keep track of all your employees and information
about them . An analysis of the existing information system is necessary
to propose new HRIS. CURRENT SITUATION ANALYSIS Here we analyze
a company’s competitive situation, develops its strategic goals and
mission, it’s external opportunities and threats, and its internal strength
and weaknesses to generate alternatives. Also a plan of actions and
deployment of resources is determined to achieve the pre-specified goals.
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FUNCTION OF Human Resources
Management
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Recruitment
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Recruitment
The process by which a job vacancy
is identified and potential employees are
notified.
The nature of the recruitment process
is regulated and subject
to employment law.
Main forms of recruitment through
advertising in newspapers, magazines,
trade papers and internal vacancy lists.
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Recruitment
Job description – outline of the role
of the job holder
Person specification – outline
of the skills and qualities required
of the post holder
Applicants may demonstrate their suitability
through application form, letter or
curriculum vitae (CV)
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Recruitment
Recruitment External recruiting:
Managers look outside the firm for people who have not
worked at the firm before. Managers advertise in
newspapers, hold open houses, recruit at universities,
and on the Internet. External recruitment is difficult
since many new jobs have specific skill needs. A multiprong approach to external recruiting works best.
Internal Recruiting: positions filled within the firm.
Internal recruiting has several benefits: Workers know
the firm’s culture, may not have new ideas. Managers
likely already know the candidates. Internal
advancement can motivate employees.
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Selection
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Selection
Selection: determine relative qualifications
& potential for a job. Training &
Development: ongoing process to develop
worker’s abilities and skills.
Performance appraisal & feedback:
provides information about how to train,
motivate, and reward workers.
Managers can evaluate and then give
feedback to enhance worker performance.
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Selection
The process of assessing candidates
and appointing a post holder
Applicants short listed –
most suitable candidates selected
Selection process –
varies according to organisation:
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Selection
Interview – most common method
Psychometric testing – assessing the personality
of the applicants – will they fit in?
Aptitude testing – assessing the skills
of applicants
In-tray exercise – activity based around what the
applicant will be doing, e.g. writing a letter to a
disgruntled customer
Presentation – looking for different skills
as well as the ideas of the candidate
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Selection
Selection Process Paper & Pencil Tests:
Either an ability and personality test.
Ability test: assess if applicant has right skills for
the job.
Personality test: seek traits relevant to job
performance. Be sure test is a good predictor of job
performance.
Performance Tests: measure job performance.
Typing speed test is one example. Assessment
Center: candidates assessed on job-related
activities over a period of a few days. References:
outside people provide candid information about
candidate. Can be hard to get accurate information.
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Selection Process
Selection Process After a pool of applicants are
identified, qualifications related to the job
requirements are determined: Background
Information: includes education, prior employment,
college major, etc. Interview: almost all firms use
one of two types: Structured interview: managers
ask each person the same job-related questions.
Unstructured interview: held like a normal
conversation. Usually structured interviews
preferred; bias is possible. Physical Ability Test:
measure strength & endurance. Good for physically
demanding jobs.
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Employment Legislation
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Employment Legislation
Even in a small business, the legislation
relating to employees is important –
chemicals used in a hairdressing salon for
example have to be carefully stored and
handled to protect employees.
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Increasingly
important aspect of
the HRM role
Wide range
of areas for
attention
Adds to the cost of
the business
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Discrimination
Crucial aspects
of employment
legislation:
Race
Gender
Disability
Disability is no longer an issue for employers
to ignore, they must take reasonable steps
to accommodate and recruit disabled workers.
Copyright: Mela, http://www.sxc.hu
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Discipline
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Discipline
Firms cannot just ‘sack’ workers
Wide range of procedures and steps
in dealing with workplace conflict
Informal meetings
Formal meetings
Verbal warnings
Written warnings
Grievance procedures
Working with external agencies
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Development
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Development
Developing the employee
can be regarded as investing
in a valuable asset
A source of motivation
A source of helping the employee fulfil
potential
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Training
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Training
Similar to development:
Provides new skills for the employee
Keeps the employee up to date
with changes in the field
Aims to improve efficiency
Can be external or ‘in-house’
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Types of Training Training
Development Apprentice
Ships On-the-job Training On-the-job Training Needs
Assessment : Types of Training Classroom Instruction:
workers acquire skills in classroom. Includes use of videos,
role-playing, simulations. On-the-Job Training: learning
occurs in the work setting as worker does the job. Training
given by co-workers and can be done continuously.
Apprenticeships: worker contracts with a master worker to
learn a skill.
Types of Development Varied Work Experiences: Top
managers must build expertise in many areas. Workers
identified as possible top managers given many different
tasks. Formal Education: tuition reimbursement is common
for managers taking classes for MBA or similar. Longdistance learning can also be used to reduce travel.
Whatever training and development efforts used, results
must be transferred to the workplace.
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Training & Development
Training
Reliability & Validity Selection tools must be reliable and valid.
Reliability: the degree to which the tool measures the same
thing each time it is used. Scores should be close for the same
person taking the same test over time. Validity: Does the test
measure what it is supposed to measure? Example: does a
physical ability test really predict the job performance of a
firefighter? Managers have an ethical and legal duty to develop
good selection tools.
Training & Development Training: teach organizational members
how to perform current jobs. Help worker’s acquire skills to
perform effectively. Development: build worker’s skills to enable
them to take on new duties. Training used more often at lower
levels of firm, development is common with managers. A Needs
Assessment should be taken first to determine who needs which
program and what topics should be stressed.
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Rewards Systems
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Rewards Systems
The system of pay and benefits used
by the firm to reward workers
Money not the only method
Fringe benefits
Flexibility at work
Holidays, etc.
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HRM Components Pay and
Benefits:
High performing employees should be
rewarded with raises, bonuses. Increased
pay provides additional incentive. Benefits,
such as health insurance, reward
membership in firm.
Labor relations: managers need an
effective relationship with labor unions
that represent workers. Unions help
establish pay, and working conditions. If
management moves to a decentralized
structure, HRM should be adjusted as well.
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Pay and Benefits Pay level
How the firm’s pay incentives compare to
other firms in the industry. Managers can
decide to offer low or high relative wages.
Pay Structure: clusters jobs into categories
based on importance, skills, and other
issues. Benefits: Some are required (social
security, workers comp). Others (health
insurance, day care, and others) are
provided at the employers option.
Cafeteria-style plan: employee can choose
the best mix of benefits for them. Can be
hard to manage.
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Trade Unions
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Trade Unions
Importance of building relationships with
employee representatives
Role of Trade Unions has changed
Importance of consultation
and negotiation and working
with trade unions
Contributes to smooth change
management and leadership
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Unions Unions
Unions Unions represent worker’s interests in
organizations. Managers usually have more power
over an individual worker. Workers join together in
unions to try and prevent this. Unions are permitted
by the National Labor Relations Act (1935) which
also created the NLRB to oversee unions. Not all
workers want unions. Union membership costs
money in dues and a worker might not want to
strike. Union membership is lower today than 40
years ago. Collective bargaining: process unions
and management go through to negotiate work
agreements. Results in a contract spelling out
agreed terms.
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Labor Relations
Considers all activities managers perform
to ensure there is a good relationship with
labor unions. There are laws regulating
some areas of employment. Fair Labor
Standards Act (1938) prohibits child labor,
sets a minimum wage and maximum
working hours. Equal Pay Act (1963) men
and women doing equal work will get
equal pay. Work Place Safety (1970) OSHA
mandates procedures for safe working
conditions
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Productivity
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Who Appraises Performance?
Self: self appraisals can supplement manager view.
Peer appraisal: coworker provides appraisal;
common in team settings.
360 Degree: provides appraisal from a variety of
people able to evaluate a manager: Peers,
customers, superiors, self. Need to be alert to bias
from some evaluators.
Effective feedback: appraisals must provide
feedback: Formal appraisals: conducted at set
times of the year Provides valuable, but infrequent
feedback. Informal appraisals: manager provides
frequent feedback informally.
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Performance Appraisal & Feedback
Trait Appraisals:
Evaluate on traits (skills, abilities) related to the job.
Problem:
Even though a worker has the trait, they may not use it in
the job and it is hard to give feedback. Behavior
Appraisals: how a worker does the job. Focuses on what a
worker does and provides good feedback options. Results
appraisals: what a worker accomplishes. Sales reps are
usually evaluated on what they sell. Objective appraisals:
based on facts (sales figures) Subjective appraisals: based
on a manager’s perceptions of traits, behavior, or results.
Many rating scales used to overcome subjective problems.
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Productivity
Measuring performance:
How to value the workers contribution
Difficulty in measuring some types of output –
especially in the service industry
Appraisal
Meant to be non-judgmental
Involves the worker and a nominated appraiser
Agreeing strengths, weaknesses and ways forward
to help both employee and organisation
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STRATEGIES FOR HR REQUIREMENT
DETERMINATION
The methods for forecasting and planning HR needs are :
INTERVIEW … A face to face method for collecting data. It
may be formal or informal, questions asked may be
structured or unstructured. Success of an interview
depends on the skill of the interviewer and on his or her
preparation for the interview.
QUESTIONAIRE … A structured questionnaire can be used
to collect data. The questionnaire is pre-tested, modified,
and used to capture data on a cross-section of HRIS users.
There are four parts to the questionnaire: profiles of
organizations; application of HRIS; perceptions of the
barriers to the implementation of HRIS and perceptions of
the benefits achievable through HRIS; and profiles of the
respondents.
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Effective Feedback:
1. Be specific and focus on correctable
behavior. Provide a suggested
improvement.
2. Focus on problem-solving and
improvement, not criticism.
3. Express confidence in worker’s ability to
improve.
4. Use formal and informal feedback.
5. Treat subordinates with respect and
praise achievements.
6. Set a timetable for agreed changes.
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