BBA 1001

HUMAN RESOURCE MANAGEMENT

TAY JIA WEN
950711015452
202188

MR.DOUGLAS

MAY SEMESTER 2014

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1.0 CONTENT
TOPIC

PAGES

INTRODUCTION

1-5

TASK 1

6-9

TASK 2

10-12

TASK 3

13-14

TASK 4

15-19

TASK 5

20-24

TASK 6

25-26

Summary

27

References

28

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Introduction
Human Resource Management or HRM is the process of managing people in a company
as well as managing the existing inter-personal relationships. These two processes are key in
the success and growth of a business.

When viewing HRM from the point of ensuring that structures and processes are identified
and instituted to manage an organizations personnel. Staffing is the core component
of HRM. Staffing is about setting guidelines and procedures to guide recruiting and
placement. The presence of these staffing procedures will aid in the effective advertising and
reaching out to potential employees. On top of this, the person interviewing and selecting
new staff should be able to identify candidates who are suitable for the various roles. The
interview should be structured to ensure the success of the interview process as well as the
candidate selection.

Apart from hiring new employees, staffing also involves the management of existing
employees. It touches on issues like disciplinary matters, monitoring of leave, absences and
health and safety. Letting employees go is also covered under staffing. Therefore, an
organization needs a robust system needs to make sure that all these elements are covered.

Another key element of HRM is retention. The training of employees to enable them to
improve their career paths is very important. In some situations where an employee is
undergoing through a difficult time in his or her life, an effective Human Resource
Department (HRD) should offer suggestions for support and counselling where appropriate.

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Remuneration packages and perks that are associated with the package an employee has
been offered also fall under the remit of the HRD. Good HRM policies ensure that there are
structures in place which show the pay levels for the different positions in an organization. It
is important for the staff to know the career and pay that is available to them. This is
important for both during the time of employment as well as for their career progresses over
time.

Another key component of HRM is performance management. The reason for this is that
many employers use it to assess career progression and to determine pay increases. When a
good performance management policy is in place, effective targets can be set and monitored
regularly. These records are crucial when staffing levels need to be reduced or disciplinary
proceedings are instituted.

A secondary role of HRM is in the management of inter-personal relationships. This covers

staff within departments as well as at an organizational level. The relationship between staff
and management is an important factor in the success of an organization. It sets pace for how
the organization will move forward in achieving their vision.

As far as this secondary function is concerned, the objectives and outcomes, are designed to
help employees and the management grow employees and ensure that the interactions within
the organization are fulfilling for every member of staff from the bottom up.

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The ultimate focus of HRM is the people within an organization. Regular planning,
monitoring and evaluation are important for the success of HRM. Successful implementation
ensures that all employees know their role, career path and also feel part of an organization
which is able to manage and reconcile their expectations as well as those of the organization
and its objectives

Task 1

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Human Resources are exactly it is resources for humans within the workplace. Its main
objective is to meet the organizational needs of the company it represents and the needs of
the people hired by that company. In short, it is the hub of the organization serving as a
liaison between all concerned. Depending on the size of the company, the HR Department
might be called Personnel with a manageable workforce that can be handled by a personnel
manager and a small staff. For larger, more complex organizations with hundreds of
departments and divisions, the task is much more demanding, taking on a life of its own.

Some companies have more than one HR Department - Corporate and Union . For example,
a food service industry might have a Corporate HR Department that oversees white
collared" employees and an HR Department that oversees the blue collar" workforce with
an emphasis on labor relations. The organization will, thus, institute these two HR
Departments to manage the unique needs of both union and non-union employees
HR Department is also involved in designing the Job analysis and Job description for the
prospective vacancies. A job analysis is the process used to collect information about the
duties, responsibilities, necessary skills, outcomes, and work environment of a particular job.

Job descriptions are written statements that describe the duties, responsibilities, most
important contributions and outcomes needed from a position, required qualifications of
candidates, and reporting relationship and co-workers of a particular job.

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There are many steps to recruiting and selecting qualified employees. First, a department
head must inform the HR manager of an opening in their department. Then the HR manager
must obtain the job description to formulate a Job Description Sheet for publication either
internally, publicly, or both. Then HR must field the (many) responses to that job
announcement to weed out the qualified from the unqualified applicants. Once that is
completed, the interview process must be coordinated. They prepare the job description,
contact the newspaper, run the ad, field the calls, compile a list of potential candidates,
submit that list to the department's hiring manager for approval and selection, contact the
chosen candidates to set up preliminary interviews, and interview the candidates! Although
most interviews are with the hiring manager or their associates, not all applicants get to meet
with the department's hiring manager right away. It is not uncommon for a company to filter
out those who fail to impress the HR manager first. For those select few who make it
through, the HR manager schedules interviews between the department's hiring manager and
potential candidates, and follows up with the hiring process to establish the new hire with the
company.

Employee Training & Development: As a company and the requirements of a position

evolve, a company needs to take certain measures to ensure a highly skilled workforce is in
place. The Human Resources Department oversees the skills development of company's
workforce, acting as an in-house training centre to coordinate training programs either onsite, off-site, or in the field. This might include on-going company training, outside training

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seminars, or even college, in which case an employee will receive tuition reimbursement
upon earning a passing grade.

Regardless of the organization's size, company policies and procedures must be established
to ensure order in the workplace. These policies and procedures are put in place to provide
each employee with an understanding of what is expected of them. Similarly, these policies
and procedural guidelines will assist hiring managers in evaluating their employee's
performance. These policies can be established company-wide or used to define each
department's function. It is Human Resource's responsibility to collaborate with department
managers on the formulation of these policies and regulations to ensure a cohesive
organization. A common practice is the development and implementation of an Employee
Procedure Manual or Employee Handbook that is either distributed to each employee at the
time of hire or a master copy allocated one to a department.

This covers salaries, bonuses, vacation pay, sick leave pay, Workers' Compensation, and
insurance policies such as medical, dental, life, and 401k. The Human Resources Department
is responsible for developing and administering a benefits compensation system that serves
as an incentive to ensure the recruitment and detainment of top talent that will stay on with
the company. When an employee is hired, the company's Benefits Coordinator is required to
meet with employees one-on-one or in small group settings to explain their benefits package.

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This often requires an employee to make an informed decision and to provide their signature
for processing purposes

The Human Resources Information Systems keeps track of the vast amount of data, a human
resources department must have a good HRIS in place to automate many functions such as
planning and tracking costs, monitoring and evaluating productivity levels, and the storing
and processing of employee records such as payroll, benefits, and personnel files. It is very
important that you, the job seeker, understand how the HR function works specifically in
the area of candidate recruitment. If you are considering a career in human resources, you
can choose to become a Generalist or a Specialist. Whether a job seeker or a HR
professional, research a company well before applying for a position.

Task2

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Human resource management, or HRM, plays an integral role in the strategic planning
process of any organization. The HR department oversees a variety of essential business
practices which have the potential to impact the organization as a whole. No matter what
other assets an organization may possess, its human capital is perhaps one of its most
essential possessions. Effective HRM is vital to the implementation of strategic planning in
any organization.

Personality tests can determine the candidates ability to fit into the work environment. A
personality test cannot be failed, but instead shows how well the applicant will handle the
job duties and workplace. Some jobs are better suited to an introverted personality, while
other positions may work well for an extrovert. Employers determine in advance the ideal
personality traits of an employee and gather the results from the personality assessment test
to find the most suitable workers.

Employers may use a physical test to determine whether a candidate has the physical
strength to perform the duties of the job. For instance, positions such as stocking shelves
may require lifting and bending. A physical test may simulate the job duties to determine
whether the candidate can manage the tasks.

Hiring strategy must address what kinds of people a company needs. First, the HR
professional must determine where the business is lacking so that positions can be created or
filled. Second, HR managers must then figure out the best way to attract the type of

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employee they require. When hiring, it is a good tactic to ensure that the prospective
employee is a good fit for the company culture. The employee and the organization's beliefs,
values and even style should be compared.

HR strategists figure out what programs employees need to participate in to ensure success.
Better individual employees contribute to the overall health of the organization. HR career
evolution tactics may revolve around new employee orientation, career development,
leadership and management training. No matter what form it comes in, career evolution
tactics prepare employees to take on more challenging job duties and increased
responsibility. Depending on the situation, career development could include traditional
training, guidance to help meet legal regulations or strategies to improve efficiency.

Part of the HR professionals job function is employee evaluation. Employee evaluation helps
assess productivity to determine if more motivation is needed. In some cases, employee
evaluation also determines if the employee receives rewards or discipline. HR strategists use
evaluations to understand employee potential and set goals based on that potential. Progress
toward goals is rated at the next evaluation.

Employment agencies use assessment tests to find the ideal position for a job applicant. The
tests are designed to measure the applicants skills in particular areas such as organization or
planning. The tests can help candidates find the position that best matches skills.

Some employers use questionnaires to measure the applicants honesty and integrity. These
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tests usually consist of scenarios that allow the applicant to make decisions about the
possible action that should be taken. Integrity questionnaires also ask applicants about past
experiences that assess the candidate's honesty and ethics. Questions regarding the
applicants interests can help to determine future behavior on the job.

Cognitive abilities tests measure the applicants ability to perform basic math and reading
comprehension, as well as the candidate's knowledge of the job. The questions on the tests
can measure the applicants ability to use logic and reasoning to solve problems. Employers
can use cognitive tests to measure the candidates ability to perform job-related duties. These
employment tests can be used to determine the candidates speed in performing job tasks.

Motivation helps employees advance their own careers and it aids HR in the retention
function of their job. The natural productivity of employees varies from person to person and
may also be dependent on the time of day or even the season. A HR goal is for employees to
even out and to universally increase. HR strategists realize that what motivates is different
for every employee. For some higher pay or promotion is an incentive while others may be
motivated by the promise of time off or intrinsic rewards like contributing to society. HR
motivational tactics include a variety of rewards that satisfy of a variety of employee
motivators.

Task3
There are many factors that would affect human resource management. However the main
four are considered to Political climate, Economic climate, Company strategies and
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Technological development.

The political climate can have a great affect on any business and subsequent business
departments such as human resource management. If the government decides on spending
cuts or increasing taxes on businesses then this will dramatically affect the running of the
business. Department budgets may have to be trimmed or the department may even have to
be completely scrapped.

The economic climate can be closely associated with the political climate. However, it also
includes how the banks are coping and if they are willing to lend to businesses. Again if the
banks are cautious and so do not lend and in fact try and get their money back quicker, it can
spell disaster for a business. This in turn, will mean big changes for how human resources in
a company would be run.

Companies will also have plans and strategies on how best to move forward. These will of
course largely be determined by the two previous factors mentioned. Whatever the company
choose to do, will definitely affect how the human resource management will perform.

Technological

developments

will

greatly

affect

how human

resource

management departments conduct their business. Instead of having to bring staff in for
physical meetings, they can now do video-calling, send emails or even SMS text messages.

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Task 4
Selection methods or screening devices include application blanks, employment interviews,
aptitude tests, and personality test.

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Application forms are a means of collecting written information about an applicant's

education, work and non-work experiences, both past and present. Almost all organizations
request applicants to complete an application form of some type. Application forms typically
request information on an applicant's home address, last employer, previous work
experience, education, military service, and other information pertinent to employment, such
as names and addresses of references. The application form also serves as a guide for the
employment interview.

The employment interview is a vehicle for information exchange between applicant and
interviewer regarding an applicant's suitability and interest in a job the employer seeks to fill.
Information provided in an applicant's application for employment can be probed more
deeply in the interview, and other information relevant to an applicant's qualifications can be
elicited. Since interviews can be rather flexible, any missing pieces of information about an
applicant can be collected at this time

As a selection method, interviews are problematic. Research shows that interviews have
good test-retest reliability and good internal consistency reliability, but low inter-rater
reliability. The reason for low inter-rater reliability is that interviews are apt to be
unstructured and subjective. A number of problems result from the unstructured nature of
employment interviews. These include: (1) rater error; (2) talkative interviewer hampers
collection of job-related information; (3) variance in questions asked of applicants during
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interview; 4) interviewer asks "trick" questions; (5) interviewer asks inappropriate questions
relating to an applicant's race, religion, sex, national origin, and age.

Central tendency errors result in most applicants being rated as average. Leniency and
strictness errors, on the other hand, result in most applicants being given either uniformly
high or uniformly low ratings. The halo effect has the result of an applicant being seen as
generally good or bad because one characteristic of the applicant overshadows all others.
Contrast effects may occur if an average applicant is rated more highly than he or she
deserves because he or she is interviewed after several poor applicants. Stereotyping is the
tendency to compare applicants with one's stereotype of the "ideal" applicant.

The value of the employment interview as a selection method will increase if these
guidelines are structured interview guide containing questions for applicants should be used
to increase the reliability of interviews. Interviewers should be given complete job
descriptions and job specifications for each job for which they are interviewing. This tends
to reduce interviewer bias because actual requirements are spelled out in detail. Interviewers
should be trained in interviewing and know how to avoid errors such as talking too much and
making hasty judgments. Interviewers should be trained to deal with all applicants,
regardless of level of qualifications, since the interview is also a public relations vehicle.
Interviewers should receive special instructions in properly and legally interviewing women
and minorities.
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Tests used for screening applicants on the basis of skills, abilities, and aptitudes can be
classified as either paper and pencil tests or job sample tests. Both kinds are scored, and
minimum scores are established to screen applicants. The "cut-off" score can be raised or
lowered depending on the number of applicants. If selection ratios are low, the cut-off score
can be raised, thereby increasing the odds of hiring well-qualified employees.

Tests should be selected only after thorough and careful job analysis. For example,
examination of a job description for an auto mechanic would probably show that
manipulation of parts and pieces relative to one another and the ability to perceive geometric
relationships between physical objects were required. These abilities are a part of a construct
called mechanical aptitude. Various parts of mechanical aptitude can be measured using
either paper or pencil or job sample tests.
Job sample tests which require applicants to demonstrate specific job duties, can also be used
to measure mechanical ability. For example, applicants for a mechanic's job could be asked
to locate and fix a number of things wrong with a car or truck. Organizations can develop
their own job sample tests. Closely related to job sample tests are job simulation exercises
that place an applicant in a simulated job situation to see how well he or she can cope.

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People often believe that certain jobs require unique personalities or temperaments. For
example, an accountant may be thought of as conservative, meticulous, and quiet, while a
used-car salesman may be pictured as aggressive, flashy, and smooth talking. While it is
probably true that some "types" of people occupy certain jobs, there is little evidence that
people must have a specific personality type to be successful at a particular type of job. It is
more common that the job itself shapes the job holder's behavior, and people stereotype
others by their job behavior.

Nonetheless, there are two general types of personality test which are sometimes used in
selection decisions. These are self-report personality tests and projective techniques. These
personality measures have been used most often in the selection of candidates for managerial
positions. They are also frequently used as part of assessment centers, which are a popular
method of identifying potential managerial talent.
Personality measures are not likely to be useful selection instruments for a number of
reasons. First, it is difficult to demonstrate that personality characteristics are job relevant.
Job specifications usually focus on skills and abilities needed for a job rather than on
personality traits. Personality measures are designed to measure specific personality
constructs, not typical behavior patterns associated with a job. Second, personality tests are
generally less reliable than ability tests. Although an applicant's low ability may allow an
interviewer to conclude with certainty that the applicant could not perform a job, one can
almost never reach such a conclusion based on a low score on a personality measure.
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Task5
Employment testing is the practice of administering written, oral, or other tests as a means of
determining the suitability or desirability of a job applicant. The premise is that if scores on a
test correlate with job performance, then it is economically useful for the employer to select
employees based on scores from that test.

The United States Supreme Court has decided several cases clarifying the place of
employment testing in the context of discrimination law. In particular, these cases have
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addressed the discriminatory use of tests when promoting employees by requiring tests
beyond the education required for the job. A central finding in Griggs v. Duke Power
Co. was that the employer must demonstrate (or be prepared to demonstrate) that its
selection process is related to the job being filled.

Employers considering the use of employment tests, particularly knowledge and aptitudebased tests, should perform due diligence to assure that questions are reasonably related to
the job. This is often accomplished with advice from counsel. For example, applicants for an
engineering position may be required to complete a math test, as math is a skill commonly
required for engineers. To comply with the decision in Griggs, the employer must assure that
the test is a reasonable measure of job performance. Therefore, if the math questions were
engineering-related and documents could prove that employees with insufficient knowledge
of math would not succeed as engineers, then the examination would meet the Griggs test.
Conversely, employers that require a receptionist to take a math test may be considered
unreasonable, because math is unrelated to a receptionist's job duties. For all employment
tests, common sense and reasonableness must apply.

Different types of assessments may be used for employment testing, including personality
tests, intelligence tests, work samples, and assessment centres. Some correlate better with job
performance than with others; employers often use more than one to maximize predictive
power.

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Performance-based assessment testing is a process to find out if applicants can do the job for
which they are applying. It is done through tests, which are directly administered and judged
by Hiring Managers who will be supervising the potential hire. Performance assessments can
be used as a pre-screening tool to test applied knowledge, skills-job match and commitment
of the applicant towards the job position.

The tests are peer-to-peer and reflect real business tasks that candidates have to perform,
should they be selected for the role. The tests are open ended, time bound, business related
questions which applicants need to submit their responses for in order to prove their abilities.
The most important question that performance testing, seeks to answer is: How would you
solve this problem? Web tools like, HireVue Gap Jumpers and CodeEval allow candidate
responses to be judged directly by Hiring Managers of the respective departments to select
the ones most suited for the role, thus making the process efficient for the company.

Personality tests may potentially be useful in personnel selection. Of the well-known Big
Five personality traits, only conscientiousness correlates substantially with traditional
measures of job performance, and that correlation is strong enough to be predictive.
[8]

However, other factors of personality can correlate substantially with non-traditional

aspects of job performance, such as leadership and effectiveness in a team

environment. The Myers-Briggs Type Indicator (MBTI) is also used.

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The Minnesota Multiphase Personality Inventory (MMPI) is a highly validated

psychopathology test that is generally used in a clinical psychology setting and may reveal
potential mental health disorders. However, this can be considered by the Equal Employment
Opportunity Commission as the employer having knowledge of a medical condition prior to
an offer of employment. This is an illegal basis for a hiring decision in the United States.
Employers considering personality tests should focus on tests designed for job purposes and
do not provide any information regarding an applicant's mental health or stability.

Notable situations in which the MMPI may be used are in final selection for police officers,
fire fighters, and other security and emergency personnel, especially when the employees are
required to carry weapons. An assessment of mental stability and fitness can be reasonably
related and necessary in the performance of the job.

Tests of cognitive ability can assess general intelligence and correlate very highly with
overall job performance. Individuals with higher levels of cognitive ability tend to perform
better on their jobs. This is especially true for jobs that are particularly intellectually
demanding.

Employers administer job-knowledge tests when applicants must already possess a body of
knowledge before being hired. Job-knowledge tests are particularly useful when applicants

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must have specialized or technical knowledge that can only be acquired through extensive
experience or training. Job-knowledge tests are commonly used in fields such as computer
programming, law, and financial management.

Licensing exams and certification programs are also types of job-knowledge tests. Passing
such exams indicates competence in the exam's subject area. Tests must be representative of
the tested field; otherwise litigation can be brought against the test-giver.

To me, situational judgment tests are commonly used as employee-selection and employeescreening tools and have been developed to predict employment success. These tests present
realistic hypothetical scenarios in a multiple-choice format. Applicants are asked to state
what they would do in a difficult job-related situation. Responses are scored according to the
level of effectiveness, rather than as right or wrong.

Situational judgment tests measure the suitability of job applicants by assessing attributes
such as problem solving, service orientation, and striving for achievement. These tests screen
for candidates with key attributes and assess their capabilities to perform and respond to jobrelated situations. Therefore, results from situational judgment tests provide more indicative
and job-specific information concerning an applicant's competencies, which may not be
initially apparent in their resume or during an interview.] Situational judgment tests are

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becoming increasingly popular for selection for customer-facing positions in fields such as
sales, retail and hospitality.

Task 6
Some companies cannot afford the time to take personnel away from their jobs and provide
off site training. On the job training provides instructions at the workplace and is focused on
training employees in techniques for their current jobs. The training is usually provided by a
supervisor or others in a department.

According to MBA Knoll, one advantage of on the job training is that the instruction is
immediately reinforced by the employee performing the work he is trained for. A
disadvantage is that there are often interruptions in the workplace, making it harder for the
trainee to focus on the material that is being disseminated.

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Role playing is a training approach where the trainee pretends and acts in a hypothetical
situation. For example, a supervisor could receive a description of an employee problem and
interact with another class member who played the role of the supervisor experiencing the
problem employee.

Role playing is often used to train others in personnel related management skills or other
interactive environment such as training focused on team building.

Role playing provides an opportunity for a trainee to practice a behavior as if it is real. This
behavior based approach often makes it easier for the trainee to exhibit the trained behavior
in a real life situation.
Simulation training involves working in an environment that is similar to a real life situation.
For example, pilots and astronauts practice first in simulators, enclosed containers that
appear like the vehicle with controls they would normally fly. The pilot looks out a window
that appears as if he was looking out a real cockpit window. Simulation provides an
environment most closely matching a real life situation

This type of training is conducted in a classroom environment or on line. The classroom

version provides the trainee with an easy way to interact and exchange ideas with others in
the class at scheduled times. Online training is often more flexible and allows the trainee to
work when and where he wants to.

Lecture and course based training, whether in a classroom or on line, is often used to teach
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an employee new skills or update his current knowledge with new information.

One advantage of lecture- and course-based training is that the trainee can focus primarily on
the material being provided. A disadvantage is that there is often a lag between the training
sessions and time spent back on the real job.

To me, though these four methods of training employees are the most widely used others are
also employed including on-the-job training including job instruction, mentoring, and
coaching; and off-the-job training including sensitivity training which will be detailed and
discussed in a future article.
Conclusion
To me, this chapter reviews the present state of HRM and its likely development in the near future. The
adoption of human resource management has been driven by a range of stakeholders with different
interests and expectations. It has been interpreted differently around the world but globalization has
encouraged an increasing convergence. In recent years, improvements in HR metrics have resulted in
clear evidence for the effectiveness of HRM initiatives, especially when they are delivered in strategic
'bundles'. HRM also overlaps with other management approaches such as human capital management,
talent management and knowledge management and this trend is likely to continue. HR specialists are no
longer able to focus solely on their own local employment markets as global competition and outsourcing
become dominant factors in the allocation of human resources.
The Human Resource Management teams main function is to manage people. There are positive and
negative aspects of this function; first of all, the HR department enriches the organisation through

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recruitment procedures and an example an effective HR team in this area is Tesco Ireland. HR department
also ensures that members of staff follow a general direction by frequently clarifying and reminding them
of the organisations goals. Besides this, they are also responsible for organising incentives or
compensation packages to motivate employees. All these functions contribute towards organisational
effectiveness. However, there are some negative aspects of HR; it has to bear the burden of blame if an
employee performs poorly like the Arthur Andersen Company. Besides this, some policies made by the
department may be detrimental to the Company like in the Home Depot Companys case. Improvements
to their role can be done by arranging training for staff members, organising activities for the organisation
and changing organisational culture

References

1.http://www.younghrmanager.com/roles-and-functions-of-the-human-resource-department
2.http://smallbusiness.chron.com/primary-responsibilities-human-resource-manager-10957.html
3.http://www.dineshbakshi.com/igcse-business-studies/people-at-work/revision-notes/850-functions-ofhuman-resource-department
4.http://humanresources.about.com/od/HR-Roles-And-Responsibilities/f/importance-of-human-resourcesmanagement.htm
5.http://managementstudyguide.com/human-resource-management.htm
6.http://www.scribd.com/doc/43375780/External-factors-affecting-human-resource-management-HRM
7.http://www.studymode.com/essays/Technology-Affecting-Human-Resources-Management-436200.html
8.http://www.eeoc.gov/policy/docs/factemployment_procedures.html
9.http://employeetraininghq.com/methods-of-training-employees/

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