HRM Year 1 Revision

Notes

What is Hrm?
Human Resource management is a strategic,integrated and coherent approach to the

employment,development and well-being of the people working in organisations.

What is HRM about?
● HRM treat employees as assets and not inputs.Develop,maintain,motivate,train and value
human resources are key factors in HRM.
● Under HRM,people management activities are done for goal achievements and employee
satisfaction instead of just doing administrative functions.
● HRM is a strategic long-term process whereas Personnel management is a reactive,short-term
routine duty.
● Decentralization,democracy and Unitarism are encouraged in HRM.

HRM is present and participates at all organizational levels regardless of the hierarchies.

Objectives of HRM.
● Ensuring that Organisational success is reached through its people.
● Increasing Organisational Effectiveness and Capability.
● Concerned about employees rights and needs(Social Responsibility).
Human Resource Planning
A process in which an organization attempts to estimate the demand for labour and evaluate the
size,nature and sources of supply which will be required to meet the demand in workforce.(Reilly 2003).

A clear distinction between Soft vs Hard HRM planning is that:

-Soft HRM Planning is a Qualitative Process which focuses on: the

skills,competency,experience and qualifications of recruits instead of massive recruitment
procedures.(Better for service driven sectors)

-Hard HRM Planning is a Quantitative Process which focuses on recruiting more employees to
supposedly increase productivity(Better for Organisations that produce goods)

HRP is an integral and constant part of Business Planning.It respects mission,vision and values of
an organization and makes the latter reach its goals through proper people management in a
system where they are trained,developed,monitored and rewarded.

HRP is a decision making process combining:1)Identify and acquire the right amount of people
with proper skills. 2)Create high interactive links between business objectives and people-
planning(Horizontal fit).
Strategic Models of HRM.
Strategic Human Resource Planning is an approach to long-term view and survival of an organization by
using and managing the human capital at best,to fulfill organisational goals.SHRM deals with both
means and ends.

Strategic & Best Fit.

Strategic fit is about Achieving congruence(Harmonized) between HR and business strategy.The Best-fite

model is in line with contingency theory(Capabilities of leaders and followers vary).The best fit model is

often referred to as ‘Vertical alignment

Horizontal Fit(Bundling).

HR Frameworks:
HR Frameworks:
Recruitment and Selection.
Recruitment is the process of finding & engaging the people the organization needs.
Selection is that part of the recruitment process involving candidate employment.

Stage of Recruitment and Selection:

1. Define Requirements(Job description)

2. Attract candidates(Initial Applicant Attraction)

3. Sort out Applications

4. Interview
5. Testing(Aptitudes)
6. Assess(Validity tests)
7. Check applications and references
8. Offer Employment
9. Follow Up(Performance Management)

Preparing a good job description holds that a realistic and clear job insight must be given in a
concise form.Benefits and Layout might attract possible candidates,if interesting
enough.Recruitment stops after shortlisting candidates. Selection then follows.

Selection Validity Tests:

1)Predict Validity: Eg:- “You see a conflict at work,what you do”

2)Concurrent Validity: Comparing various performance of candidates

3)Content Validity: All about aspect of job (fluency,patience,self-confidence)

4)Face Validity: Eg;- Test if driver can idrive,cook can cook,coach can train.

5)Construct Validity: According to the candidate’s physique,tenure,posture etc…

Recruitment and Selection.

Induction and Orientation.
Induction is a very brief(one day) and informal activity to put new recruits at ease.Soft HRM should be
used during an induction as the HR must be Open to questions.An employee may possess an employee’s
handbook to better aid during induction.
During an Induction:

1. Grooming and dress code.

2. Behaviour and Health/Safety.
3. Identify and divide task
4. Explain both employer and employees expectations INFORMALLY, reinforcing the Psychological

Unwritten contract establishing commitment.

5. Understand Unity of command and direction(Who and Where to contact). 6. Develop trust
and mutual understanding.

Orientation is a more formal program that follows induction.The employees is then familiarized with his
work environment,equipments,machines and gets a deeper understanding of his job duty.At the end of
the Orientation,an employee should feel ready and motivated to face his job challenges.

Reward management.
A Very Strategic Process(mutually agreed between HR and Finance Dept) which requires
implementation,for it to be effective.

Aims of Reward Management:

● Develop performance culture and encourage to achieve more

● Set standards of outcomes and behaviours
 ● Attract and retain talents/high-performers.
● Align reward practices with employee needs(Guest Model)
● Add value to the organisation and motivate all the staff.

Job Evaluation
A Systematic and formal process for defining the relative worth/size of jobs within an

organisation.Internal relativities are done through either Analytical or Non-Analytical schemes.

1)Analytical Job evaluation scheme:where whole jobs are broken down into a number
of defined elements/factors and them compared factor by factor,either with a graduated scale
of points attached to a set of factors.The advantages of using analytical approach is that
firstly,evaluators consider each characteristics of the job separately before defining it’s
worth.There is two main analytical schemes:
 i)Point-factor rating-Jobs are broken down into factors such as level of

responsibility,knowledge,skills or decision making.Each factor is divided into hierarchy of

levels(typically 5-6 levels).Finally separate factors are all added together to give a total score.

ii)Analytical Job matching-Can be used to grade jobs or regroup them into levels

following initial evaluation of a large sample of benchmark jobs.It takes much less time than
point-factor rating as “generic” roles are easily identified.

Or

2)Non-Analytical Job evaluation scheme:Enable whole jobs to be compared in order to

place them in a grade/rank.Jobs are not analysed by reference to their elements or factors.

Grade and Pay Structure.

Grade Structure

Consists of hierarchy of grades,bands or levels into which groups of jobs that are broadly comparable in
size are placed.Alternatively,the structure may be divided into a number of job families.

Pay Structure

Consists of pay range and scale.Defines the pay-structure to be either Narrow or Broad.
Importance of Grade and Pay structure:
-Provide framework for base pay management.
-Define Pay levels and scope for pay progression.
-Set Standards to monitor and control the implementation of pay practices.
-Enables Organisations to communicate the career and pay opportunities to workforce.

Performance-Related Pay
PRP is the most popular *Contingent Pay scheme,stating that pay increases as far as agreed
achievements are reached(Outcomes).

Those Requirements must be considered for PRP to Work:

● Rewards are worth having
● Fair and Consistent performance measurements
● High performers should motivate others to Improve behaviour at workplace
● Reward comes immediately after generate accomplishment

● The PRP scheme fits with the Organisational culture

Problems associated with PRP
● The extent to which PRP is motivational is questionable,as amounts available for distribution
are too small to act as incentives.
● Requirements for success are difficult to achieve
● Not Everyone is solely motivated by financial benefits.
● Those who don’t get rewarded might get demotivated
● PRP can go against quality and teamwork,creating pluralist spirit.

*Contingent Pay provided financial rewards in addition to base pay that are related to a factor

such as individual or organizational performance or service in the job.