Managing Human Resource

Management
• Human Resource refers to the knowledge, talents and skills and
behaviors of a human or humans that contribute to the production of
goods and services. Or Any person and their particular abilities and
skills.
• Human resource management (HRM) is the strategic and
consistent approach to the management of an organization's most
valued assets - the people working there who individually and
collectively contribute to the achievement of the objectives of the
business.
• "Human resource management is responsible for how people are
treated in organizations. It is responsible for bringing people into the
organization, helping them perform their work, compensating them
for their labors, and solving problems that arise" (Cherrington, 1995,
p. 5).
 A strategy is a course of action. The company’s long-tem
plan for how it will balance its internal strengths and
weaknesses with its external opportunities and threats to
maintain a competitive advantage.
• Strategic Human Resources Management
– Strategic human resource management is the
process of linking the human resource function
with the strategic objectives of the organization
in order to improve performance.
• Basic Model of
How to Align HR
Strategy
and Actions with
Business
Strategy
Source: Adapted from Garrett Walker and J. Randal MacDonald,
“Designing and Implementing an HR Scorecard,” Human
Resources Management 40, no. 4 (2001), p. 370.
 Important HR Activities

• Job Analysis & HR Planning:

• job analysis determine activities, skills, and knowledge required of
an employee for a specific job. Job analyses are "performed on
three occasions:
– (1) when the organization is first started,
– (2) when a new job is created, and
– (3) when a job is changed as a result of new methods, new procedures, or new
technology" (Cherrington, 1995).
• Jobs can be analyzed through the use of questionnaires,
observations, interviews, employee recordings, or a combination of
any of these methods.
• Two important outcome of job analysis are
– (1) a job description, which identifies the job, provides a listing of responsibilities
and duties unique to the job, gives performance standards, and specifies
necessary machines and equipment; and
– (2) the job specification, which states the minimum amount of education and
experience needed for performing the job (Mondy and Noe, 1996).
• HR Planning
• HR planning is a process by which an organization
ensures that it has the right number and kinds of people
at the right place, at the right time, capable of effectively
and efficiently completing the tasks that help
organization to achieve its overall goals.
• The information then are used to match supplies and
demand for employees and making them compatible
with organization future needs
An Overview Of The HR Planning Process

HR Planning
Organizational
strategic
planning

HRM Human
environmental resources
scanning planning
•Labor markets •Demand forecast
•Technology •Internal labor supply
•Legislation •External labor supply
•Competition •Job analysis
•Economy
 The Recruitment and Selection Process – Steps

1. Decide what positions you’ll have to fill through personnel

planning and forecasting.
2. Build a pool of candidates for these jobs by recruiting
internal or external candidates.
3. Have candidates complete application forms and perhaps
undergo an initial screening interview.
4. Use selection techniques like tests, background
investigations, and physical exams to identify viable
candidates.
5. Decide who to make an offer to, by having the supervisor
and perhaps others on the team interview the candidates.
 2. Recruitment & Selection

• Staffing in large organizations:

– Someone (e.g., a department manager) or some event (e.g., an
employee's leaving) within the organization usually determines a
need to hire a new employee.
– an employee requisition must be submitted to the HR
department that specifies the job title, the department, and the
date the employee is needed.
– From there, the job description can be referenced for specific job
related qualifications to provide more detail when advertising the
position—either internally, externally, or both (Mondy and Noe,
1996).
• Internal recruitment Sources: Job Posting
• External recruitment Sources: Adv, job
portals, employee referrals etc.
 External Sources of Candidates

Advertising
– The Media: selection of the best medium depends
on the positions for which the firm is recruiting.
• Newspapers (local and specific labor markets)
• Trade and professional journals
• Internet job sites
• Marketing programs
• Constructing and effective ad
– Wording related to job interest factors should evoke
the applicant’s attention, interest, desire, and action
(AIDA) and create a positive impression of the
company.
– Org. info, info about job, job specification, process.
• Training and Development
• "Training focuses on learning the skills, knowledge, and attitudes
required to initially perform a job or task or to improve upon the
performance of a current job or task, while
• development activities are not job related, but concentrate on
broadening the employee's horizons.
Training Process
 Sources of
Training Needs
Assessment

Figure 9–5
 Important T & D Methods
• The type of training depends on the material to be learned, the length of
time learners have, and the financial resources available.

• One type is instructor-led training, which generally allows participants to

see a demonstration and to work with the product first-hand.

• On-the-job training and apprenticeships let participants acquire new skills

as they continue to perform various aspects of the job.

• Audi-visual techniques.
• Class rooms Instructions

• Computer-based training (CBT) or Distance Learning: provides learners

at various geographic locations access to material to be learned at
convenient times and locations.
• Behavioral Modeling: employees learn key behaviors and matches their
behaviors with the showed modeled one.
• Types of development opportunities include mentoring, career counseling,
Case Studies, Simulation, Role Playing etc.
Levels of Training Evaluation
 Performance Appraisals

• Personnel evaluation method seeking the measurement of

employee work effectiveness using objective criteria.
• Performance appraisal systems hope to achieve higher productivity
outcomes by delineating how employees meet job specifications.
• A major challenge for performance appraisal systems is to define
performance standards while maintaining objectivity.
• There are two primary purposes of performance appraisal:
evaluative and developmental.
– The evaluative purpose is intended to inform people of their performance
standing. The collected performance data are frequently used to reward high
performance and to punish poor performance.
– The developmental purpose is intended to identify problems in employees
performing the assigned task. The collected performance data are used to
provide necessary skill training or professional development.
 Some Appraisal methods
• Just as there can be different performance evaluators, depending
on the job, several appraisal systems can be used. Some of the
popular appraisal methods include:
• (1) ranking of all employees in a group;
• (2) using rating scales to define above-average, average, and
below-average performance;
• (3) recording favorable and unfavorable performance, known as
critical incidents; and
• (4) managing by objectives, or MBO (Mondy and Noe, 1996).
 Who conducts the appraisals

• Supervisors who rate their subordinates

• Employees who rate their supervisors
• Team members who rate each other
• Outside sources
• Employees’ self-appraisal
• Multisource (360° feedback) appraisal
• Compensation and Benefits
• Compensation (payment in the form of hourly wages,
monthly or annual salaries) and benefits (insurance,
pensions, vacation, modified workweek, sick days, stock
options, etc.) are important because an employee's
performance can be influenced by compensation and
benefits, and vice versa.
• In the ideal situation, employees feel they are paid what
they are worth, are rewarded with sufficient benefits, and
receive some intrinsic satisfaction (good work
environment, interesting work, etc.).
• Compensation should be legal and ethical, adequate,
motivating, fair and equitable, cost-effective, and able to
provide employment security (Cherrington, 1995).
Components of A Compensation
Program

Figure 12–1
Compensation
Administration
Process
 Job Evaluation
• Job Evaluation
– The systematic determination of the relative
worth of jobs within an organization.
• Employee and Labor Relations
• Just as human resource developers make sure employees have proper
training, there are groups of employees organized as unions to address and
resolve employment-related issues. Unions have been around since the
time of the American Revolution (Mondy and Noe, 1996).
• Those who join unions usually do so for one or both of two reasons—
– to increase wages and/or to eliminate unfair conditions.
– Some of the outcomes of union involvement include better medical plans, extended vacation
time, and increased wages (Cherrington, 1995).
• HR managers are also responsible for resolving
collective bargaining issues i.e. employment related
issues such as compensation and benefits, working
conditions, job security, discipline procedures,
individuals' rights, management's rights, and contract
length.
• Collective bargaining involves management and the
union trying to resolve any issues peacefully—before the
union finds it necessary to strike and/or management
decides to institute a lockout (Cherrington, 1995).
• Article 17 provides for a fundamental right to exercise
the freedom of association and the right to form unions
• Safety, Health & Environment
• Mondy and Noe (1996) define safety as "protecting
employees from injuries caused by work-related
accidents" and
• health as keeping "employees free from physical or
emotional illness" (p. 432).
• The Safety laws are to enhance safety and health and to
decrease accidents, which lead to decreased productivity
and increased operating costs (Cherrington, 1995).
• Health problems recognized in the workplace can include
the effects of smoking, alcohol and drug/substance
abuse, AIDS, stress, etc
• Task: Case Analysis(South West Airlines)