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					Human Resource Management
Learning Objectives
• Understand the importance of Human
  Resource Management to the organization

• Appreciate the key functions associated with
  Human Resource Management

• Implement a Human Resource Planning

• Understand the importance of Recruitment
  and Selection
Learning Objectives
• Detail the main types of Compensation
  and Benefits Systems

• Implement an effective Performance
  Appraisal Process

• Understand the function of Training and
  Development and its importance to the
HRM & The Organization
What is Human Resource Management?

• Basic Definition
  – ‘managing the employment relationship’
                              (Tyson, 1987)

• Key Assumption
  – Employees are the most important asset of
    the organization
Key Functions

     Human Resource Planning

      Recruitment & Selection

     Compensation & Benefits

      Performance Appraisals

      Training & Development
Human Resource Planning
What is Human Resource Planning?

• “an effort to anticipate future business
  and environmental demands upon and
  organization and to provide personnel to
  fulfil that business and satisfy that
                               (Bowey, 1974)
       Human Resource Planning

       • Human resource planning must be integrated
         within the organizations strategic plans

       • Senior management must emphasize the
         importance of human resource planning

       • Human resource planning must be based on
         the most accurate information available

Source: Adapted from Tyson & York, 1992
     Human Resource Planning

     • Human resource planning must be
       assigned or located within a central unit

     • A clear plan must be developed with
       associated time-spans and scope of

Source: Adapted from Tyson & York, 1992
Human Resource Planning Process

          Demand Analysis

          Supply Analysis

     Estimate Deficits/Surpluses

        Develop Action Plan
Demand Analysis

• Emerges from a clear understanding of
  the organizational strategy
  – Technological Changes
  – Products
  – Workforce Requirements
    •   Skills
    •   Qualifications
    •   Experience
    •   Gender
Demand Analysis

• Managerial Estimates (Subjective)
  – Planned changes versus workforce requirements

• Work Study
  – Systematic analysis of work
     • People
     • Skills
     • Resources (materials & machines)

  – Man hours per output unit
Demand Analysis

• Statistical Techniques
  – Regression Analysis
  – Econometric Models
Supply Analysis

• Amount of human resources that will be
  available to the organization

• Sources
  – Internal Labor Market
  – External Labor Market
Internal Recruiting

• Internal Advertising

• Self Applicants

• Employee Referrals
  – Supervisor/Manager Recommendations

• Succession Planning
External Recruiting

• Existing Candidate Pool

• Newspaper/Internet
  – General
  – Specialized Recruitment Magazines/Internet Sites
  – Professional Associations

• Employment Agencies
  – Executive Search Agencies
  – Campus Recruiting
Estimate Deficits/Surpluses

• Does the supply of labor match the demand
  for labor?
• How many employees will be required?
  – Can they be secured from internal sources?
  – What are the challenges of securing employees
    from an external source?
• How many employees will have to be let go?
  – For how long?
  – Can they be re-recruited quickly, if required?
Develop Action Plan

• From the deficits/surpluses analysis a plan
  that ensures that the day-to-day operational
  human resource needs of the organizational
  are catered for

• This plan includes specific detail on the
  management of
   –   Recruitment & Selection
   –   Compensation & Benefits
   –   Performance Appraisals
   –   Training & Development
Recruitment & Selection
The Recruitment Process

    Job Analysis & Job Description

          Source Candidates

      The Recruitment Interview

        Psychometric Testing

  Reference Checks & Making an Offer
  Job Analysis

  • ‘The process of examining a job in detail
    in order to identify its component tasks
    The detail and approach may vary
    according to the purpose for which the
    job is being analyzed’

(Department of Employment Glossary of Training Terms, 1971)
Job Description - Key Elements

• Purpose of the Job

• Core Functions & Responsibilities
  – Duties
  – % of Time Spent on Activities
  – Other

• Other Functions & Responsibilities
Job Description - Key Elements

• Supervisory Responsibilities
  – Number of Staff
  – Type of Employees
  – Level of Authority to Hire

• Knowledge & Skills
  – Required
  – Preferred
  – Desirable
Job Description - Key Elements

• Fiscal Responsibility
  – Budgeting
  – Approval Privileges
  – Reporting & Auditing Functions

• Public Contact

• Physical Demands & Working Conditions
       Seven Point Plan

       1. Physical make-up; health, physique,
       2. Attainments; education, qualifications,
       3. General intelligence
       4. Special aptitudes
       5. Interests
       6. Disposition
       7. Circumstances
Source: Rodgers (1952)
       Five Fold Grading System

       1. Impact on others; physical make-up,
          appearance, speech
       2. Acquired qualifications; education,
          training, experience
       3. Innate abilities
       4. Motivation
       5. Adjustment

Source: Munro Fraser (1954)
Job Description - Example
Title   …………                   Responsibility
Location ………                   ………………………
No of Subordinates …           Budget ………………
Responsible to …………… …
Responsible for ………… ……
60% of time    …………… …
25 % of time   ………… ……
15 % of time   ………… ……
Sourcing Candidates

• Internal Recruiting

• External Recruiting
Internal Recruiting

• Advantages

• Disadvantages
External Recruiting

• Advantages

• Disadvantages
Screening Resumes

• Relevance of Education & Experience
   – Is the candidates experience and educational
     record appropriate for the position on offer?

• Interests & Abilities
   – What are the candidates interests and abilities?
   – Will these interests and abilities contribute to their
     performance on the job?
Efficiency of the Recruitment Interview

 • Highly effective if based on a detailed
   job description
 • Structured interviews, based on pre-set
   questions, are more effective than
   unstructured interviews
       Functions of the Interview

                                      Mutual Preview



Source: Adapted from Anderson & Shackelton (1993)
Mutual Preview - Function

• Informal discussion that explains the
  selection process and the job on offer

• Provision of a detailed and Realistic Job
Interviewer’s Objectives

• To ‘set the scene’ for the candidate and
  the organization

• To inform the candidate of the
  organization’s selection procedures
Candidate’s Objectives

• To understand what the selection procedure
  will be and what will be involved during each
  stage of the procedure

• To obtain an indication of what the job will
  entail so that they can also decide their
  suitability and interest in the position

• To get a better ‘feel’ for the organization
Assessment - Function

• Formal discussion guided by job
  description and a number of pre-set
Interviewer’s Objectives

• To document answers to pre-set

• To probe candidate further on critical
  aspects of the job
Candidate’s Objectives

• To provide the interviewer with sufficient
  information to guide and influence their
Negotiation - Function

• Negotiation of outstanding points

• Can be directed and led by both
  interviewer and candidate

• May take place during interviewer or at
  the offer stage of the recruitment
Interviewer’s Objectives

• To ensure that the offer is mutually
  acceptable to the candidate and the
  organization and that all potential areas
  of conflict are resolved

• To smooth the transition from job to role
Candidate’s Objectives

• To expand and agree all contractual
  and non-contractual terms and

• To smooth the transition from job to role
The Recruitment Interview - Advantages

 • Quick and relatively easy to perform
 • Perceived by the candidate as a natural
   part of the recruitment process
 • Allows the organization to get to know a
 • Allows the candidate to find out more
   about the organization
The Recruitment Interview - Disadvantages

  • Open to errors
  • Difficult for interviewer to discriminate
    between relevant and irrelevant information
  • Different conclusions can be reached
    dependent on the type of interview conducted
  • Early impressions can negatively and
    inappropriately influence the interviewer’s
Psychometric Testing

• Cognitive Tests
  – General Intelligence
  – Spatial Ability
  – Numerical Ability

• Personality Tests
  – 16PF (Cattell et al , 1970)
  – Occupational Personality Questionnaire (Saville &
    Holdsworth, 1984)

• Face
  – Does the test look right?
  – Is it acceptable to th candidate and the
  – Will it produce useful and relevant
  – Does the test come from a recognizable

• Construct
  – Does the test measure what it sets out to
  – Does it correlate with other tools that
    measure the same thing?

• Predictive
  – Does the test predict how well an individual
    is going to perform within the job?
Reference Checking


       Data Collection


• Ensure that questions are relevant to the
  position on offer

• Verify information already received
  –   Qualifications
  –   Length of Service
  –   Duties
  –   Responsibilities

• Look for factual information
Data Collection

• Establish a rapport with the referee and
  explain the purpose of the reference
• Ensure that you follow pre-set questions
• Keep to the facts
• Be alert to the responses given by the
• Document all answers
• Be careful not to accept all information
  at face value

• Use the information in conjunction with
  that gathered from other sources to
  evaluate the candidate

• If any doubt exists seek other
Checking References - Key Points

• Be Consistent
• Ask the same questions about each
• Ask questions relating to the
  candidate’s ability to perform the job
• Cross-Check References from several
• Document all information received
Giving References - Key Points

• Be Honest
• Verify the identity of the individual seeking the
• Reply directly to the questions being asked
• Keep your answers to job related activity
• Make sure that any negative information
  given can be supported by documented
Compensation & Benefits
Major Compensation Schemes

           Flat Rate Only

  Flat Rate Plus Payment By Results

              Merit Pay

         Profit/Gain Sharing

Flat Rate Only

• Most popular compensation option for
• Easy to administer, understand an provides
  stability of earnings for employees
  – Hourly
  – Weekly
  – Monthly

• Best used where performance criteria difficult
  to define
Flat Rate Plus Payment By Results

• Growing in popularity
• Mix of flat rate and bonus payments
• Immediacy of reward increases
  motivation levels
• Can be difficult to administer
• Often hard to find an accurate measure
  of performance
Merit Pay

• Bonuses paid on the basis of a
  systematic assessment of performance
• Performance evaluated against set
  objectives and from this a bonus or
  merit payment is paid
• Often hard to find an accurate measure
  of performance
Profit/Gain Sharing

• Bonuses are paid on the basis of overall
  company performance
• Bonus paid either on the basis of
  monetary or in terms of company
• Profit/Gain Sharing increases
  employees awareness of the overall
  performance of the organization

• Employees are paid only for the work
  that they have completed

• Can cause considerable conflict with
  employees as it does not gaurantee a
  minimum income
Performance Appraisals
Why Have Performance Appraisal?

• Performance Appraisal offers several
  advantages at the level of the:
  – Individual
     • Recognition of past effort
     • Developmental requirements can be uncovered
  – Team
     • Alignment of effort with objectives
     • Motivation of team members
  – Organization
     • Development of staff
     • Achievement of key objectives
     • Best and focused utilisation of human resources
Appraisal Overview
   Plan Work &        Business Plan
                     Job Description
  Identify Skills
                    Performance Goals

   Observe &             Service
   Document              Profits
  Performance          Productivity

                      Reward Review      PAST
                    Performance Review   PRESENT
                    Development Review   FUTURE
 The Appraisal Process

• Components
                  P   I
  – People        r   n   m
     • Manager    e   v   m
                  p   o   u
     • Employee
                  a   l   n
     • Peers
                  r   v   I
  – Information   a   e   c
     • Facts      t   m   a
     • Opinions   i   e
  – Emotion       o   n
                  n   t
     • Positive           n
     • Negative
Appraisal Procedure

• Agree Objectives

• Monitor Performance

• Give Sufficient Notice

• Prepare Necessary Documentation

• Prepare Location
Appraisal Procedure

• Conduct Appraisal

• Complete Documentation

• Implement Plans
      Eight Appraisal Techniques

      1.        Ranking
      2.        Paired Comparisons
      3.        Critical Incident
      4.        Free-Form/Narrative
      5.        Self-Assessment
      6.        Assessment Centre
      7.        Performance
      8.        Rating
Source: Adapted from Gunnigle & Flood , 1990

• Appraiser ranks employees from the
  worst to the best based on specifica
  characteristics or on overall job
• Strengths
  – Simple
  – Facilitates comparisons

• Weaknesses
  – Subjective
  – Poor basis for decisions
  – Degree of difference between employees
    difficult to specify
Paired Comparisons

• Appraiser ranks employees two at a
  time and decisions on which is superior
  are included in the final ranking order
  for the whole organization
Paired Comparisons

• Strengths
  – Simple
  – Ease of decision making

• Weaknesses
  – Complicated within a large workforce
  – Challenges asociated with ranking
Critical Incident

• Appraiser observes incidents of good
  and bad performance and employs this
  information for judging and leading the
  performance appraisal
Critical Incident

• Strengths
  – More objective than previous techniques
  – Job related

• Weaknesses
  – Time consuming
  – Requires skilled observation

• General free-written evaluation by the

• Strengths
  – Flexible

• Weaknesses
  – Comparisons challenging
  – Subjective

• Appraisee evaluates themselves based
  on a particular template that has been
  supplied by the organization

• Strengths
  – Promotes self-analysis
  – Participative
  – Facilitates discussion

• Weaknesses
  – Appraisee may be more lenient
  – Conflict can occur between appraiser and
Assessment Centre

• Appraisee receives a series of
  assessments supplied, performed and
  evaluated by specialized external
Assessment Centre

• Strengths
  – Objective
  – Range of techniques employed
  – Range of demensions analyzed

• Weaknesses
  – Expensive
  – Not necessarily job specific

• Appraiser evaluates the degree to which
  the appraisee has achieved specific

• Strengths
  – Objective
  – Job related
  – Participative

• Weaknesses
  – Requires awareness of measurable targets

• Appraiser specifies on a scale to what
  degree relevant characteristics are
  possessed by the appraisee

• Strengths
  – Ease of comparison
  – Capacity to assess characteristics from the
    very simple to the complex

• Weaknesses
  – Subjective
  – Personality and behavioral traits difficult to
Training & Development
What is Training?

Training refers to the acquisition of
   knowledge, skills and abilities
  required to perform effectively in
            any given role
Knowledge, Skills & Abilities

• Knowledge is information specific and particular to a
  subject, enabling a person to understand a subject to
  an acceptable level

• Skill is a developed aptitude or ability in a particular
  intellectual or physical area

• Attitude is an internal state which affects one’s
  choice of action towards some objects, persons or
Training & Development Perspectives



The Fragmented Approach

•   Training is not linked to organizational goals
•   Training is perceived as a luxury
•   Non systematic approach to training
•   Training is directive and delivered by trainers
•   Training occurs with the training department
•   Knowledge-based courses
•   Focus on training not development
The Formalized Approach

• Training is directly linked to human
  resource needs
• Systematic developmental training
  linked to appraisals
• Knowledge based courses broadened
  to skill based
• Line manager involvement in the
  development of the course content
The Formalized Approach

• Training still performed by trainers but
  the range of skills required increases
• Pre- and post - course activities
• Training linked to individual needs
The Focused Approach

• Training and continuous development by
  employees is now perceived as essential for
  organizational survival and an integral part of
  organizational strategy
• Training becomes a source of competitive
• On-the-job development
• Self selection for specialized training courses
The Focused Approach

• Training non-directive with the
  exception of knowledge based training
• New forms of training delivery explored,
  such as open courses and e-learning
• Measurement of learning becomes
  critical to the organization
The Training Cycle


EVALUATE               DEVELOP

The Training Cycle

  – Identify issues affecting the business
  – Caution: Not all those identified can be
    resolved via training

  – Prioritise those identified and develop
    training objectives
The Training Cycle

 – Employ training solution

 – Compare employee/team performance
   before and after training
Training Needs Analysis

 The systematic process of determining
  and ordering training goals, measuring
 training needs and deciding on priorities
             for training action
Training Need

• The difference between the actual and
  required human performance in some
  specific areas of operations, where
  improved training is the most
  economical way of eliminating the
Not Everything is a Training Need!

    Business Need

  Performance Need

Work Environment Need

    Training Need
Benefits of Training Needs Analysis

• Organisational Focus on Performance
• Identifies Routes to Closing
  Organisational Performance-Gaps
• Through Involvement Builds Internal
  Commitment To Achieving
  Organisational Targets
• Separates Non-Training Needs -
  ‘Training Not the Only Panacea’
Difficulties with Training Needs Analysis

 • Time-Consuming
 • Generates High Expectations
 • Requires Top-Level Support &
 • May Isolate Certain Categories of Staff
Training & Development

Accepted Core Competencies
• Identify and analyse the learning, training &
  development needs of employees

• Plan, recommend, implement and monitor the
  effectiveness of learning and development
  initiatives that meet the present and emerging
  business needs of the organisation and its
 Training & Development
New Core Competencies
• Recognise developments and trends in HRM and within
  the organisation’s external and internal business
  environment that are significant to both the organisation
  and the employees

• Develop, implement, forecast and monitor effective
  placement, deployment and release processes, to meet
  the organisation’s needs

• Build internal capacity and lead change

• An appreciation of Human Resource
  Management offers considerable benefits to
  the organization

• Human Resource Planning emerges from a
  clear understanding of the organizational

• Ownership of the Recruitment and Selection
  Process must reside within the organization
• There are five main Compensation and Benefits
   –   Flat Rate Only
   –   Flat Rate Plus Performance By Results
   –   Merit Pay
   –   Profit/Gain Sharing
   –   Piecework

• Performance Appraisal offers several advantages at
  the level of the:
   – Individual
   – Team
   – Organization

• Training refers to the acquisition of
  knowledge, skills and abilities required
  to perform effectively in any given role

• Remember Not Everything is a Training

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