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Training Objectives

 Understand the key strategic HR issues and trends that are relevant to today's HR
managers

 Describe the role and functions of the Personnel/HR Department

 Demonstrate a thorough understanding of employee resourcing, recruitment & reward

 Describe best practice in working with employees with problems

 Understand performance management

Content

• Human Resource

• Human Resources management

• HRM Vs PM

• Objectives of HRM

• The HRM Environment

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Defnition

In defining Human Resource Management, understanding Human resources vital.

Human Resources

National Point Of View,

knowledge, skills, creative abilities, talents and attitudes obtained in the population;

Individual Enterprise Point Of View

the total of the inherent abilities, acquired knowledge and skills as exemplified in the
talents and aptitudes of its employers

It  is a source of strength and helps in achieving the goals of the organization

HRM

Human Resource Management includes all activities used to attract & retain employees and to
ensure they perform at a high level in meeting organizational goals.

The management function of identifying the need for acquiring, optimally utilising and finally
discharging the human factor back to society in a responsible and ethically acceptable way.

Human Resource Management (HRM) is the effective management of people at work. It

examines what can (should) be done to make working people more predictive and satisfied.
Different scholars define HRM in different ways. Some of them are the following:
I. HRM refers to the concepts of techniques needed to carry out the people or personnel
aspects of a management position including recruitment, screening, training,
rewarding and appraising (Dessler, 1994).
II. HRM is the process of accomplishing organizational objectives by acquiring,
retaining, terminating, developing and properly using the human resource in an
organization (Invancevich, 1990).
III. HRM is the planning, organizing, directing and controlling of the recruitment,
development, compensation, integration and maintenance human resources to the

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 end that individual, organizational, and social objectives are accomplished (Filippo,
1984).

Objectives of HRM?

Performance: To help an organization reach its gals. To employ the skill and abilities of the
workforce efficiently. The primary purpose of HRM is tom make peoples' strength
productive and to benefit customers, owners and employees
To provide the organization with well –trained and well motivated employees This is a
measure of effectiveness of HRM that is building and protecting the most valuable assets (the
workers) of the organizations.
To increase the employees job satisfaction and self –actualization. For employees to be
productive, they must feel that the job is right for their abilities and that they are being treated
equally. Therefore HRM should stimulate every employee to realize his potential most of us
spend the majority of our waking hours at work and getting to and from work
To develop and maintain quality of work life that makes employment in the organization a
desirable personal and social situation. Quality of work life refers to several aspects of the
job experience. these include management and supervisory style, freedom and autonomy to
make decisions on the job satisfactory physical surrounding, job safety, satisfactory working
hours and meaningful tasks. Generally, the job and the working environment should be
designed to meet as many of the worker's needs as possible.
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• Staffing
• Administrative
• Change management

Who is responsible for HRM?

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WHY IS HRM IMPORTANT?

• Service is delivered by people.

• Low quality HR leads to low quality customer service/ Productivity

• In the 21st century effective knowledge management translates into competitive

advantage and profits.

• Knowledge comes from a firm’s people.

• Each of the four types of HR objective is important and necessary for organisations in
different ways. However, at certain times one or more can assume greater importance
than the others.

Can you identify types of situation in which each could become the most significant or urgent?

HR Managers’ Roles

Basically, the HR managers perform four major roles:

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 A Line function: The HR manager directs the activates of workers in his/her own
department (HR department).
A service Function: according to the needs of the other department service such as.
Posting job advertisements, organization training courses, keeping personnel records,
operating wage/salary systems, looking after the firms health safely arrangements at
work, etc
A control Function: analyzing key operational indices in personnel field like labor
turnover, wage cost, absenteeism, etc monitoring labor performance, recommending
appropriate remedial action to line mangers. Example identifying training needs,
change of work methods, improved work environments, etc.
An advisory Function: offers expert advice on personnel policies and procedures such
as which employees are ready for promotion (as per the policy of the organization, e.g.
Based on number of years of service, etc) who should attend certain training course?
How a grievance procedure should e operated?, interpretation of contracts of
employment, health and safety regulation, etc., and ensuring equal employment
opportunity etc.
Because of the advisory activities perfumed by the HRM and the fact that both external
and internal factors affect its movement, the human resource manger is required to
have general knowledge of what goes on inside or outside the organization.
Line and Staff Aspects of HRM

• Line Manager

• Is authorized (has line authority) to direct the work of subordinates and is

responsible for accomplishing the organization’s tasks.

• Staff Manager

• Assists and advises line managers.

• Has functional authority to coordinate personnel activities and enforce

organization policies.

• However, line managers still have human resource duties.

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1.1 Environment of Human Resource Management

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HRM programs and activities in an organization do not operate in vacuum. They are
influenced by and influence the external environment (outside the organization) and
internal environment (inside the organization).
A. External Environment Affecting HRM
1. Government laws & regulations: Powerful external environment influence is
government low and regulations, which have direct impact on HRM decisions by
regulating conditions and terms of employment. Some areas of legislation and
regulation that HRM programs are
 Equal employment opportunity affects recruiting selection and promotion,
employment planning, orientation, career planning training and development.
 Discrimination based on sex, age disability
 Compensation regulation, specification for minimum pay, for works with
certain education level.
 Workers safety laws-affects health & safety programs
 Labor relation law& regulation –affects the conditions of collective as
bargaining
 Benefit regulations affects pension& retirement plans
 Hours of work
2. Economic Conditions
Some of the economic conditions that affect HRM are the following.
A. The population and the labor force:
interest, and motivation of people in the available in the available workforce will
influence human resource activities and the effectiveness of the organization. Impact
of labor force may include;
 Present of minorities and woman in the workforce influences equal
employment opportunity decisions.
 Qualifications and skill in the workforce influence need of training programs,
Design of job.
 Availability if various skill and demand for these skills by employers
influence salary and compensation decisions

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  The demand of the workface for full-time or party time jobs affects decisions
on work schedule
B. Labor market conditions: The labor market involves the job opportunities,
compensation offered by employers, and the skills and contributition offered
by employees. The scope of the labor market is influenced by three factors:
i. Occupation- the skills and education required in occupation. This refers to
required training, education, or licensing requirement to perform a given type
of job, E.g accountant, medical doctor, lawyers.
ii. Geography:- the distance employees are willing to commute supply of labor
forces could be limited to a specific geographic area or region
iii.Industry (competitiveness):- the industry in which an organization competes
for labor and sells its products also influences the organization type of
compensation it should offer to its employees. It becomes more influential
when the supply of qualified workers is very limited.
C. product market situation:
i. Demand: Demand for products in the market affects both the ability an
organization to pay and the quality and quantity of workers employed.
ii. Inflation- the rate of change in price we pay for goods and services affects the
HR decision. Such as decision on cost- of-living adjustment to salaries, cost
of recruiting interviewing, training employees,
iii. Technology – changes in technology will influence the nature of jobs to be
performed and consequently the qualification and skills of people required to
perform them.
3. Union expectation and power: Labor unions exist to protect their fight in
organization in a more organized and effective way. Unions interest, expectations
and power differ from one to another. However, the demands and questions of the
union directly affect most aspects of HRM such as recruiting selection, performance.
Evaluation, promotion, compensation and benefits.
B. Internal Environment affecting HRM
1. Strategies and Objectives:

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 Organizations have strategies and goals determining the direction of the business.
When organizations change their strategies and objectives they are determining the
direction that it should take. Consequently all plans that follow the strategic
decisions will also change including the HRM in terms of quality and experience of
workers
2. Financial conditions: financial status of an organization has particularly critical
influence on number of workers to be employed and the salary increments made to
employees
3. Nature of the task:
The kind of employees found in an organization is highly influenced by the kind
of tasks /activities/ performed. Some of the issues relevant for employees in
choosing to work for a certain organization include:
- Degree of physical exertion required
- Degree of environmental unpleasantness
- physical location of work
- Time dimension of
- Human interaction on the job etc
4. Organization culture:
Organization culture refers to the values, beliefs and traditions shared by all
members that distinguish an organization from other organizations, Culture can have
an impact on the behavior, productivity and expectation of employees. Thus. thus, if
an organization has a well-defined and practiced culture, its employees should be able
to feel comfortable to operate in that environment and adhere to established culture.

Human Resource Management Processes.

What do we perform ?

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Acquisition

Human Resource Planning

• Human resource planning (HR planning) is a process deciding how many and what kind
of workers will be needed in the future and how this demand is met. Therefore, the
activities of HR involve the comparison of the available HR of the organization and the
future needs, and it also determines the number and type of employees to be recruited,
trained, redeployed, and possibly discarded. HR planning process requires readjustment,
as labor market conditions change.
• Activities that managers engage in to forecast their current and future needs for
human resources.

• Optimum use of present stock of human resources.

• Fulfilling individual and organisational aspirations

• Future skill assessment of the organisation

• Proper allocation of human resources.

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 • Formulation of transfer and promotional policies

• To cope with changes in the organizational set up.

• Control over cost of human resources.

• Continuity in workforce is maintained.

• Designing training programmes

• Prescribes qualifications for different jobs

Outsourcing

• Using outside suppliers and manufacturers to produce goods and services

• Using contract workers rather than hiring them.

• More flexible for the firm.

• Provides human capital at a lower cost.

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Which Jobs can be Outsourced? The Challenges?

Problems with Outsourcing

• Loss of control over output; outsource contractors are not committed to the firm.

• Unions are against outsourcing that has potential to eliminate member’s jobs.

• Capacity of outsourcing Firms

Job Analysis

• Identifying the tasks, duties and responsibilities that make up a job and the
knowledge, skills, and abilities needed to perform the job.

• Should be done for each job in the organization.

• What information will be collected on the job Analysis.

• Functions

• Task required to be performed for each function

• Sub –tasks required to be completed to complete each task.

• Skill/Knowledge/attitude required to perform each task.

• The resources required

• Working situation, relationship

• What is the out put of Job Analysis?

• Why do we need to perform it?

Use of Job Analysis

• Recruitment

• Selection

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 • Training and Career Development

• Performance Appraisal

• Compensation

• Compliance of legal requirements

• Job Design

Outputs of Job Analysis

Job analysis is a conceptual process, which yields a tangible outcome of mainly job
Description and job specification.

a. Job Description (What the job entail): It is a list of a job duties, responsibilities,
reporting relationship, working condition, and supervisory responsibilities. In short, it
concentrates on the job and list what the job holder does, how it is done, and why it is
done.
b. Job specification (What kind of person to assign for the job): It is a list of the
knowledge, skills, abilities and other characteristics (KSAOs) that the worker should
possess so as to perform the job efficiently. Job specification is mainly useful in offering
guidelines for recruitment and selection.

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Recruitment

Recruitment is the process of seeking and attracting qualified candidates for job vacancies of an
organization.

Recruitment can be defined as the active pursuit of potential candidates for the purpose of influencing
them to apply for position in the organization.
There fore, recruitment involves:

a)Identifying the source where the required kind & number of employees are available
b) Developing a suitable technique to attract the desired candidate
c)Stimulating qualified candidates to apply.
Generally, the main purpose of recruitment is to develop a group of potentially qualified people in an
organization.

The most effective way of making sure unqualified are not attracted to a job is by providing adequate
information about the nature of the job, so that unqualified applicants may self – select them selves
out of the job candidacy. This dual objective minimizes the cost of recruiting unqualified candidates.

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• Where doe we get Recruits?

Internal sources

Internal recruitment is a process of filling a vacancy by a person already employed by the organization.
Internal source recruitment is the main source of recruitment to many organizations. A vacant position
of an organization may be filled in with employees from within through;

• Upgrading the employee currently holding the position,

• Transferring an employee from a less desirable to a rewarding job else where in the
organization; or
• Promoting some one from a lower level position to a higher.

External sources

When a job of an organization is filled up from candidates outside the company, the source if known as
external sources. It is often needed by organizations that are growing rapidly or have large demand for
technical and skilled employees

• How do we recruit? The ways

A) Job posting: It means posting notice of job opening on organization's bulletin board, magazine
or newspaper. Accordingly, interested employees could apply for the job. Job posting is usually not used
when promotion to supervisory positions is involved, since managers prefer to select workers for
promotion to management levels.
B) Skills inventory: It is an internal recruitment method to identify the employees with the
attributes needed for a particular job.

C) Job advertisement: It is widely used recruitment method, when a company wants to inform the
public that it has a vacancy, it puts up an advertisement on newspapers, radio, TV and /or billiard.
However, the choice of appropriable media for a specific advertisement should depend on the type of
job and the required degree coverage.
In addition, to the media used, the construction of the advertisement is also important. The following
are the basic guidelines job advertisements should follow.

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 1. Attract attention of the reader
2. create interest in the job
3. instigate action on the potential candidates
4. The information should not too narrow or too broad.
5. Recruitment advertisement should be written from the viewpoint of the applicant and his/her
motivation rather than exclusively from the viewpoint of the company Theses advertisement
usually describe the job duties, outline minimum job qualifications and tell interested & qualified
readers how to apply.
D) Employment agencies: there could be public or private employment agencies. These agencies
have information about job seekers in terms of qualification, skills, interest, etc, and can be good
sources of employment for organization.
These agencies usually pre-screen applicant for the organizations. Although it is advantageous to have
part of the recruitment process done by specialists, it could sometimes result in allowing poor applicants
by pass the preliminary stage or blocking qualified applicants from entering the final recruitment stage.
To avoid such problems, organizations are advised to do the following

 Give the agency an accurate and complete job description and job specification.
 Specify the devices of tools that the employments agency should use in screening potential
applicants
 If feasible, develop a long –term relationship with one or two agencies.
E) Educational institutions: Educational institutions offer opportunities to recruit recent graduates.
Educational institution is particularly excellent source of potential employees for entry-level positions.
It could also be important for hiring foreign nationals.
F) Professional Associations: professional group of engineers. Physician, accountants. And others
often maintain placement rosters. This channel is attractive to recruiters because the members of
professional association remain informed of the latest development in their fields leading higher quality
applicants from these sources.
G) Employees' Referral: Some organizations encourage their employees to refer potential
applicants to an open position. This method of recruiting potential candidates can cut recruiting costs by
eliminating advertisement and agency fees. It can also result in high quality candidates since most
employees would not recommend some one unless he/she believes that the individual can perform
effectively. However, there are some possible problems among those recommenders that confuse

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friendship with job performance and competence. As a result. employees referral methods may result in
nepotism and some times violet equal employment opportunity law (one group favoring each other)
H) Employee leasing: some agencies lease employees to employer as long term employees. Instead
of the employer having to hire. Pay & train, some companies supply a work force from another
organization.
I) Walk – INs /Write INs or Unsolicited Applicants: Walk ins are job seekers who arrived at the HR
department in search of a job; write ins are those who send a written inquiry. both groups are
unsolicited applicants, i.e., they make such application by expecting that the organization may have
vacant jobs, though not announced. These applications are kept in active file if there are no particular
openings at the time.
J) International recruiting agencies: Recruitment in foreign countries presents special challenges.
When recruiting internationally, recruiters should become familiar with the employment practices in the
foreign country. Not only employments contracts are different, but also cultural expectations may lead
to unforeseen problems.
K) E-Recruiting: Some organizations create their own HR web page on the internet. A typical
organizational home page will provide background information about the company, its products,
services, and employment opportunities (job vacancies) and application procedures. Most also include
online resume outline that can be completed and sent via the internet

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 Selection

Placement

Assigning the person in the Job he is Hired or Promoted

Induction

1. Organization

2. Job related

3. Policies and rules

4. Safety

5. Benefits

How Do We Assess the effectiveness of Recruitment and Selection Process ?

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  Were your methods cost-effective?

 Did you stay within budget?

 Did your recruitment generate enough applicant pool ?

 Were your applicants qualified for the job?

 How many applicants must be generated?

 How long did it take to fill the position?

 How long does it take for a new employee to “get up to speed?”

 What about turnover?

 Do your new employees stay with the organization?

HR Development

A set of systematic and planned activities designed by an organization to provide its members
with the necessary Knowledge & Skills to meet current and future job demands.

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• Development – preparing for future responsibilities, while increasing the capacity to
perform at a current job

• Management training

• Supervisor development

• Training – improving the knowledge, skills and attitudes of employees for the short-term,
particular to a specific job or task – e.g.,

• Employee orientation

• Skills & technical training

• Coaching

• Counseling

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Needs Assessment

• An assessment of which employees need training or development

and what type of skills
or knowledge they need
to acquire.

Types of Development

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Coaching & Mentoring

Case Studies

Varied Work Experiences

Formal Education

Types of Training

• Classroom Instruction

• On-the-Job Training

• Simulation

• Cases

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Performance Management

• Performance Appraisal

• The evaluation of employees’ job performance and contributions to their

organization.

• Performance Feedback

• The process through which managers share performance appraisal information,

give subordinates an opportunity to reflect on their own performance, and develop
with subordinates, plans for the future

Performance Appraisal

• Process of evaluating employee performance

• job related strengths

• development needs

• progress toward goals

• determine ways to improve performance

• Pay an promotion decisions

Types of Performance Appraisal

• Trait Appraisals

• Assessing subordinates on personal characteristics that are relevant to job

performance.

• Disadvantages of trait appraisals

• Employees with a particular trait may choose not to use that particular trait
on the job.

• Traits and performance are not always obviously linked

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 • It is difficult to give feedback on traits.

• Behavior Appraisals

• Assesses how workers perform their jobs—the actual actions and behaviors that
exhibit on the job.

• Focuses on what a worker does right and wrong and provides good feedback for
employees to change their behaviors.

• Results appraisals

• Managers appraise performance by the results or the actual outcomes of work

behaviors

• Objective appraisals

• Assesses performance based on facts (e.g., sales figures).

• Subjective appraisals

• Assessments based on a manager’s perceptions of traits, behavior, or results.

• Graphic rating scales

• Behaviorally anchored rating scales (BARS)

• Behavior observation scales (BOS)

• Forced ranking systems

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Effective Feedback Tips

• Be specific and focus on behaviors or outcomes that are correctable and within a
worker’s ability to improve.

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 • Approach performance appraisal as an exercise in problem solving and solution finding,
not criticizing.

• Express confidence in a subordinate ability to improve.

• Provide performance feedback both formally and informally.

Effective Feedback Tips

• Praise instances of high performance and areas of a job in which a worker excels.

• Avoid personal criticisms and treat subordinates with respect.

• Agree to a timetable for performance improvements.

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Pay-for-Knowledge and Skill-Based Pay

• Pay-for-knowledge involves compensating employees for learning specific information.

• Skill-based pay rewards employees for acquiring new skills.

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Additional Benefits

• Legally required: social security, workers’ compensation…

• Voluntary: health insurance, retirement, day care

• Wellness programs concentrate on keeping employees from becoming sick

rather than simply paying expenses when they do become ill.

• Cafeteria-style benefits allow employees to choose the benefits they really want.

Employee Relation

• Steps that managers take to develop and maintain good working

relationships with the labor unions that may represent their employees’
interests build stable and cooperative relationships with employees that minimize
conflict; achieve commitment through employee involvement and
communications processes; develop mutuality – a common interest in achieving
the organization’s goals through the development of organizational cultures based
on shared values between management and employees.

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Effective Employee Relations

• Creating a Safe Work Environment

• Foundations of Effective Employee Relations

• Labor-Management Relations

• Disciplinary and Grievance Procedures

Unions

• Represent worker’s interests to management in organizations.

• The power that a manager has over an individual worker causes workers to join
together in unions to try to prevent this.

Collective bargaining

• Negotiation between labor and management to resolve conflicts and disputes

about issues such as working hours, wages, benefits, working conditions, and job
security.

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