Human Resource Systems
What Do Manager Do?
Managers Get Things Done
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Human Resource System
What Is An Organization?
• Consciously Coordinated Social Unit • Functions On A Continuous Basis To Achieve A Common Goal
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Human Resource Systems
What Are Management Functions ?
Henri Foyal’s: • Plan • Organize • Command • Control • Coordinate
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Human Resource Systems
In The 21st Century:
• • • • Planning Organizing Leading Controlling
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Human Resource Systems
To Plan: • Organization Goals • Establish Overall Strategy To Achieve These Goals • Developing A Comprehensive Set Of Plans To Integrate And Coordinate Activities
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Human Resource Systems
To Organize: • What Tasks To Be Done • Who Is To Do Them • How Tasks Are To Be Grouped • Who Reports To Whom • What Decisions Are To Be Made
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Human Resource Systems
To Lead: • Motivate • Direct The Activities • Select The Most Communicative Channel • Resolve Conflicts
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Human Resource Systems
To Control: • Monitor Organizational Performance
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Human Resource Systems Why Do We Need Management
• Speed Of Change – Technological Developments To Competitive Strategies • Forces That Affect Organizational Performances – Government Actions, Expectations Of Employees Are Complex.
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Human Resource Systems
Put Employees Into a room with only a table and two chairs. Leave them without any instruction and check back on them in two hours. If they have taken the table apart... ...assign them to engineering. * If they are counting butts in the ashtray... ...put them in finance.
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Human Resource Engineering
• If they are talking to the chairs...
• ...assign them to personnel* • If they are sleeping... • ...they are management material.
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Human Resource Systems
• * If they do not notice when you walk in...
• ...place them in security. * • * If they Leave Early..
Put them In Sales
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Human Resource Systems
Ten Specific Managerial Roles • Grouped Under Three Primary Activity Centers – 1.Interpersonal 2.Informational 3.Decisional
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Human Resource Systems
Figure Head
Interpersonal Role
Leader
Liaison
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Informational Roles • Monitor • Disseminator • Spokes Person
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Human Resources Sysytems
Decisional Roles • Entrepreneur • Disturbance Handler • Resource Allocate • Negotiator
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Human Resource Systems
Henri Fayol – Focus On Managers’ Job Organizational Functions Were Included - Purchasing Planning - Production Organizing - Sales Directing - Finance Coordinating - Accounting Control - Administration
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Human Resource Systems
• 20th Century Concept • Federick Taylor pioneered “Scientific Management Movement – Observation of People Through Time And Motion Study, Importance To Task • Lillian Gilbreth – Analysis And Synthesis On The Basis Of Goal Setting • Henri Fayol – Administrative Principles – Elevation Of Management From Shop floor To The Entire Organization
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Human Resource Systems
• Max Weber’s – Bureaucracy Theory • The Great Depression Led To Behavioral Approaches • Elton Mayo’s Hawthorne Studies At Western Electric • Humanistic Psychology – Abraham Maslow, Douglas Mcgregor
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Human Resource Systems
• Mary Parker Follet – Administrative Behavior – Reciprocal Nature Of Power, Power As An Agent Of Change • The Contingency Perspective – “It All Depends Perspective”.
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Human Resource Systems
Social Sciences - Psychology - Sociology - Social Psychology - Political Sciences - Anthropology
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Human Resource Systems
Management Is The Practice Of Directing, Organizing, And Developing People, Technology, And Financial Resources In Task Oriented Systems That Provide Product And Services To Others.
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Human Resource Systems
Links With Organizational Strategy – How? • A Major Airline Implements The Purchase Decision Of Buying Four New Airbus A380s – 600 and 800 Seat Super Jumbo Aircraft. • This Aircraft Is A Flying Palace Spacious Enough To Feature Sleeping Quarters, Shops, Exercise Rooms.
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Human Resource Systems
What Are The Major HR Implications?
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Human Resource Systems
• The Most Experienced Captains With The Airline Will Need Training • Training Needs Through Out The Cockpit Ranks – First Officers, Flight Engineers… • Cabin Attendants Will Need To Undergo Training In Safety Features And Service
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Human Resource Systems
• Maintenance Mechanics Will Need Training In Routine And Special Servicing Of The Airplane • Purchasing Agents – Different Parts And Supplies Will Need To Be Ordered • Construction Will Need To Be Undertaken To Alter Airport Gates
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Human Resource Systems
• Marketing Representatives Will Need To Know The Airplane’s Special Features To Promote Travel On It.
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Human Resource Systems
All this….
A Seemingly Straight Forward Decision To Purchase A New Aircraft, A Decision Based On Business Projections!!!
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Human Resource Systems
Strategy: • Corporate Strategy – Several Businesses • Business Strategy – Competitive Positions • Functional Strategy - Departments
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Human Resource Systems
Strategic Planning Process – SWOT Basic Strategic Trends: • Globalization • Technological Changes • Diverse Work Force • Nature Of Work
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Human Resource Systems
Managerial Consequences: • Global Expansion • Improved Competitiveness • Organizational Changes – Flat • Knowledge Management
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Human Resource Systems
Strategic Decisions
• Add New Type Of Equipment • Acquisition
Impact On HR
Training Selection (From Acquired Firm), Training, Compensation, Outplacement
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Human Resource Systems
Strategic Decisions Impact On HR
• Pursue Competitive Strategy Compensation, Labor Relations, Training • Expand Markets Selection, Training, Compensation • Relocation Of Factory Transfer, Recruitment, Selection, Training
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Human Resource Systems
HR Strategic Role: • Ensuring Competitive Advantage • Shift From Protector And Screener To Strategic Partner And Change Agent • Metamorphosis From Personnel To Human Resource Management
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Human Resource Systems
Role Of HR: • Environmental Scanning • Providing Of Competitive Intelligence • Providing Of Internal Strengths
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Human Resource Strategy
Future…. • Corporate Reorganizations - Loss Of Job, Pay, Benefits - Job Changes - Transfer To A New Geographic Location - Changes In Career Growth
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Human Resource Systems
Steps Before Making A HR Score Card: • Emerges From The Balance Score Card - Attempts To Collate Measures From Four Areas – Financial, Internal Business Process, Customer, Learning And Growth (Objectives, Measures, Targets, Initiatives)
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Human Resource Systems
HR Score Card:
• Understanding The Reason For Implementing The HR Score Card
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Human Resource Systems
• HR Outcomes Measure The Focus On Business Outcomes • Operational HR Metrics That Focus On Efficiencies
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Human Resource Systems
• Understanding The Business Context Of HR – What Are The Value Drivers OF Business Units? • What Is HR Value Proposition To The Business • Where Is HR Contribution Recognized – By Senior Management, The Line, Employees, HR Itself, Investors?
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Human Resource Systems
• What Does The HR Function Currently Measure? • Are The Metrics Activity Driven Or Value Driven?
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Human Resource Systems
Defining HR Value:
- The Value Of The HR Function As A Whole - The Value Of HR Processes As Practiced Throughout The Organization – Performance Management And The Fit With Culture, Structure And Strategy
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Human Resource Systems
Defining HR Value: • Selecting The Relevant Measures And Metrics • Maintaining A HR Score Card Frame Work
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Human Resource Systems
Now HR Score Card: • Business Context Two Influences On HR Effectiveness: - External Influences – The Company’s Current Operating Environment - Internal Influences – How The Business Perceives HR Capability
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Human Resource Systems
Current HR Objectives:
Resources, Performance Management, Training, And Development, Reward, Employee Relations – Areas Where Measurement Is Required
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Human Resource Systems
Evolve Appropriate HR Metrics
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Human Resource Systems
Score Card Design Frame Work: • Financial • Process • Internal Customer Focus • People/Human Capital Management
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Human Resource Systems
Financial Value: - HR Management Budget/Spend - HR Development Budget/Spend - Sales Per Employee - Revenue Per Employee
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Human Resource System
Internal Customer: - Training - Self Learning - Ration Of E –Learning Modules To Traditional Training Modules
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Human Resource Systems
Human Capital Intervention (Focus And People) - Training Days Delivered - Training Needs/ Analysis - Performance Management
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Human Resource Systems
Human Capital Management - Absenteeism Ration - Headcount - Staff Turnover - Employee Commitment
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Human Resource Systems
HR Planning:
• What Positions To Fill • How To Fill Those Positions
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Human Resource Systems
HR Planning: To Forecast: • Personnel Needs • The Supply Of Internal Candidates • The Supply Of External Candidates
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Human Resource Systems
How To Forecast Personnel Needs ? • Forecast Future Revenue • Estimate The Size Of Staff To Achieve This Revenue • Projected Turnover Of Manpower • Quality And Skills Based On Changing Needs Of The Organization
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Human Resource Systems
• Strategic Decisions • Technological Changes • Financial Resources Available
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Human Resource Systems
To Predict Employment Needs:
• Trend Analysis • Ratio Analysis • The Scatter Plot
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Human Resource Systems
Job Analysis: Procedure To Determine • Duties Of Positions • Characteristics Of People To Satisfy These Positions - Job Descriptions - Job Specifications
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Human Resource Systems
Job Analysis: • Work Activities • Human Behaviors • Machine Tools, Equipments • Performance Standards • Job Context • Human Requirements
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Human Resource Systems
Uses Of Job Analysis: • Recruitment And Selection • Compensation • Performance Appraisal • Training • Discovering Unassigned Duties
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Performance Appraisal
Why Job Analysis? • Globalization • Flatter Organizations • Reengineering • High Performance Insight
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Human Resource Systems
Which Are The Types Of Jobs To Be Analyzed ? • Jobs Which Are Critical To The Organization • Jobs Which Are Difficult To Learn And Perform • Legal Factors
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Human Resource Systems
Types Of Job Data: • Foundation Work Activities – (Basic ) Amount Of Responsibility • Intermediate Work Content – (Some Technological Content) – How Much Of Time Is Spent On Teaching People? • Area Work Activities – Technologically Oriented Specific To Work Activities
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Human Resource Systems
Steps In Job Analysis: • How Will The Information Be Used? • Review Relevant Background Information • Select Representative Positions • Actually Analyze The Job • Verify The Information • Develop A Job Description And Specification
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Human Resource Systems
Methods Of Collecting Job Analysis Information: • Qualitative • Quantitative
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Human Resource Systems
Qualitative Methods:
• Interview – Individual, Supervisor, Group
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Human Resource Systems
Interview Method – Typical Questions: • What Is The Job Being Performed? • What Are The Major Duties? • What Exactly You Do? • What Physical Conditions Do You Work In? • In What Actives Do You Participate?
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Human Resource Systems
Interview Method: • Detailed Checklists • Interview Guidelines Questionnaire Method: Observation Method Participant Diary/Logs
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Human Resource Systems
Recruitment The Process Of Organizations Locate And Attract Individuals To Fill Job Vacancies
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Human Resource Systems
Recruitment Process: • Vacant/New Position Occurs • Perform Job Analysis And Plan Recruiting Effort • Generate Applicant Pool – Internal/External • Evaluate Applicants • Impress Applicants • Make Offer
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Human Resource Systems
Strategic Issues In Recruiting: • Match With Organizational Values • State Of External Labor Market • Firm’s Ability To Pay • Attract Talent
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Human Resource Systems
Recruitment Goals: • To Attract Large Pool Of Applicants • Attract High Proportion Of Well Qualified Candidates Who Are Interested In Accepting Offers • Post Hiring Goals – Retention, Spill Over Effect
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Human Resource Systems
Recruitment Philosophy • Whether Internal/External Recruitment • Merely Filling Up Vacancies/Hire For Long Term Careers • Depth Of Commitment To Hiring A Diverse Range Of Employees • Marketing Orientation • Ethical Overtones
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Human Resource Systems
How To Attract Applicants: • By Changing Nature Of Inducements • Target Labor Pools • Sponsor Immigration • Mergers And Acquisitions • Temps • Employee Leasing
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Human Resource Systems
Internal Recruitment: • Job Posting And Bidding • Consulting Of Replacement Charts • Nominating Committees • Managerial Succession Planning
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Human Resource Systems
External Recruiting: • About The Position To Be Filled • Job Specification Sheet • Recruiter Must Identify What Will Attract The Candidate
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Human Resource Systems
Planning For External Recruiting: Factors Which Are Time Consuming: • The Need For Confidential Search • A Technically Complex Position • Competition In The Market Place • A Poor Industry/Company/Division Reputation • Low Pay • Unclear Job Description • An Undesirable Location
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Human Resource Systems
External Recruitment: • Informal Methods – Employee Referrals • Formal Methods - Advertisements • Internet Recruitment • Employment Agencies • HR Consultants
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Human Resource Systems
Recruiting Targeted Groups: • Executive Search Firms - Reasons For Failure – Unrealistically High Job Specifications, Poor Reputation, Internal Politics In Hiring Organisations, Insufficient Research Staff, Use Of Overly Specialized Search Firmly
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Human Resource Systems
• • • • Campus Recruiting Recruiting Older Workers Recruiting Disabled Workers Affirmative Action Recruiting – E.g.: SEZ
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Human Resource Systems
The Applicant’s Point Of View: • Job Search • Job Choice
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Human Resource Systems
Job Choice: • Individuals Make Rational Choice - Pay, Benefits, Growth • Instinct • Influenced By Interviewer’s Skill/Politeness
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Human Resource Systems
Why Selection Is Important?
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Human Resource Systems
Selection: • Your Own Performance Depends On The Performance Of Your Colleagues • It Is Costly To Recruit • Legal Implications – Negligent Hiring
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Human Resource Systems
Effective Selection Depends On Validity And Reliability Validity – A Sample Of A Person’s Behavior Reliability – Consistency Of Scores
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Human Resource Systems
Reliability :
Systematic Error Versus Random Error
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Human Resource Systems
Methods Of Measuring Reliability:
• Test – Retest – Consistency Of A Test Over Time • Inter-Rater • Internal Consistency
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Human Resource Systems
Validity: • Whether The Test Is An Adequate Measure Of The Characteristic It Is Supposed To Measure • Whether The Inferences Based On The Score Are Appropriate
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Human Resource Systems
Validity :
• Criterion Validity – Behavioral Determinations • Content Validity – Representative Of Construct’s “Domain”
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Human Resource Systems
How To Validate A Test? Step 1: Analyze The Job - Predictors – Job Description And Specification - Define Success On The Job - Standards Of Success – Criteria 89
Human Resource Systems
Step 2:
Step 3:
Choose The Tests
Administer The Test Concurrent Validation Predictive Validation
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Human Resource Systems
Concurrent Validation: 3 Steps • Select A Sample Of Employees • Give Each Employee A Proposed Selection Test • Compute The Correlation Between Test Scores And Criterion Scores
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Human Resource Systems
Predictive Validation:
• Present (Time 1) Versus Future (Time 2)
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Human Resource Systems
Step 4: Relate Your Criteria (Test Scores) And Predictor ( Test Scores) Cross Validate And Revalidate
Step 5:
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Human Resource Systems
Special Concerns In Validation: • Measurement Bias • Validity Generalization
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Human Resource Systems
Types Of Tests For Selection:
• • • • Cognitive Abilities Motor And Physical Abilities Measuring Personalities And Interests Management Assessment Centers – Simulation Exercises (In Basket, Leaderless GD, Games, Individual Presentations, Objective Tests, The Interview)
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Human Resource Systems
Induction
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Human Resource Systems
Induction: • Employee Induction • Should Feel Comfortable And At Ease • Understand The Organization's Culture • Policies And Procedures Of The Organization • Expectations From The Employee
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Human Resource Systems
Training And Development
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Human Resource Systems
Training – 5 Step Process: • Needs Analysis Step – A.D.D.I.E. • Instructional Design • Validation Step • Implement • Evaluation And Follow -Up
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Human Resource Systems
Training And Learning:
• Make Learning Meaningful • Make Skills Transfer Easy • Motivate The Learner
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Human Resource Systems
Analyzing Training Needs
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Human Resource Systems
Analyzing Training Needs:
• Task Analysis • Performance Analysis • Supplementing Methods: - Management’s Request, Supervisor’s Report, Personnel Records, Questionnaire Survey
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Human Resource Systems
Performance Analysis:
Difference Between “Can’t Do” And “Won’t Do”
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Human Resource Systems
Traditional Training Methods: • On-The Job Training • Apprenticeship Training • Informal Learning • Job Instruction Training – Step-By-Step Approach • Lectures • Programmed Learning • Audio-Visual Tools • Simulated Training 104 • Computer Based Training
Human Resource Systems
Managerial Development And Training: • Job Rotation • Coaching/Understudy • Transactional Analysis
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Human Resource Systems
Off The Job Training And Development Techniques: The Case Study Method Management Games Out Of Campus Seminars University Related Programs Role Play
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Human Resource Systems
• Behavior Modeling: - Showing The Right Way Of Doing Things - Practice The Right Way - Feedback
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Human Resource Systems
Evaluation Of Training Effort: • Designing The Study – Controlled Experimentation Training Effects To Measure: • Reaction • Learning • Behavior • Results
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Human Resource Systems
Development
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Human Resource Systems
What Is Career?
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Human Resource Systems
• Organization Career Development • Individual Career Development
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Human Resource Systems
• Career Development Vs. Personnel Development - Ensures Needed Talent Is Available - Improves Organizational Ability To Attract And Retain High Talent Personnel - Ensuring Growth Opportunities For All Employees - Reduces Employee Frustration
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Human Resource Systems
External Versus Internal Dimensions To A Career
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Human Resource Systems
Career Stages: • Exploration • Establishment • Mid-Career • Late Career • Decline
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Human Resource Systems
Effective Career Development: • Challenging Initial Jobs • Dissemination Of Career Option Information • Job Postings • Assessment Centers
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Human Resource Systems
Career Counseling – 4 Elements: • Employee Goals And Aspirations For The Next 5 Years • The Manager’s Views About Opportunities Available • Identification Of What The Employee Would Have To Do In The Way Of Self Development • Identification Of Actual Steps In The Form Of Plans For New Development Activities
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Human Resource Systems
Methods For Growth:
• • • • Career Development Workshops Continuing Education Periodic Job Changes Sabbaticals
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Human Resource Systems
Suggestions For Individual’s Career Development: 3 Step Self Assessment Process: • Identify And Organize Your Skills, Interests, Work-Related Needs And Values • Convert These Inventories Into General Career Fields And Specific Job Goals • Test These Possibilities Against The Realities Of The Organization Or The Job Market
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Human Resource Systems
Performance Appraisal
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Human Resource Systems
Why Performance Appraisal? • An Objective Method To Decide On Compensation/Benefits • Identify Areas Where Development/Training Is Required • Criterion On Which Selection Programs Are Validated
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Human Resource Systems
Other Uses Of Performance Appraisal: • Less Need to Micro Manage • Greater Employee Commitment • Greater Employee Engagement • Increased ease and comfort around Performance Appraisals • Better Coordination Between Company, Department and Individual’s Performance
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Human Resource Systems
Linkage Between :
• Efforts And Performance • Performance And Rewards
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Human Resource Systems
What Is Performance In Performance Appraisal? • Means Doing The Job Effectively And Efficiently With A Minimum Related Employee Disruption
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Human Resource Systems
Definition Of Performance Appraisal: Is A Structured Formal Interaction Between A Subordinate And The Supervisor That Usually Takes A Form Of Periodic Interview In Which Work Performance Of The Subordinate Is Examined And Discussed With A View To Identify Weaknesses And Strengths, Opportunities For Skill Development
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Human Resource Systems
The Appraisal Process: • Establishment Of Performance Standards • Communication Of Expectations To The Employee • Measurement Of Performance – How And What To Measure • Actual Performance Versus Expected Performance
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Human Resource Systems
Who Should Do The Appraisal: • Immediate Supervisors • Peers • Self Evaluation • Immediate Subordinates
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Human Resource Systems
When The Systems Of Performance Appraisal Is Not Clear : 3 Emotions Are Prevalent: • Ambiguity • Uncertainty • Suspicion
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Human Resource Systems
Methods Of Appraisal: • Graphic Rating Scales 1. Quality (Accuracy, Thoroughness, Acceptability Of Work Performed) 2. Productivity 3. Job Knowledge 4. Reliability 5. Availability 6. Independence
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Human Resource Systems
Methods Of Appraisal: • Paired Comparison Method • Forced Distribution Method • Critical Incident Method • Narrative/Essay Method • BARS Method (Behaviorally Anchored Rating Scales) • Virtual Appraisals
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Human Resource Systems
Steps For BARS: • Generate Critical Incidents • Develop Performance Dimensions • Reallocate Incidents • Scale The Incidents • Develop A Final Instrument As Behavioral Anchors – Clusters Of Skills
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Human Resource Systems
Performance Management: • Performance Planning (Employee Goal Setting, Objective Setting) • Ongoing Communication • Data Gathering, Observation, Documentation • Performance Appraisal • Performance Diagnosis And Coaching
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Human Resource Systems
What Is Participative Management? • Process Of Involving Those Who Are Influenced By Decisions, In Making Decisions. • 2.Where Everyone Makes Certain That Everyone Gets Their Needs Met.
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Human Resource Systems
Participative Management: Delegating Process: Responsibility + Accountability + Authority
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Human Resource Systems
In Participate Management We Negotiate: • Goals • Guidelines • Accountability • Resource • Reward
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Human Resource Systems
• The Concept Of Control Is Generally Replaced By The Concept Of Self-control And Accountability. • The Word Manage Is Generally Replaced By The Words Lead, Encourage, Persuade, Lift, Serve, Help,Understanding, And Inspire • The Words Negotiate And Review And Discuss And Decide Replace Words Like Orders, Inform, Tell, Assign, Direct, And Require. • The Attitude Of Negotiation Is Encouraged By Phrases Like How Can We Improve • The Phrase I Is Replaced By We
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Human Resource Systems
Managerial Succession Planning: Business Systems: From To • Organizational Pyramids - Flatter Systems • Desire For Seasoned Leaders – Want The Seasoning To Develop Sooner • Stability Flexibility With Faster Market Responsiveness
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Human Resource Systems
Managerial Succession Planning: • Develop Pools Of Broadly Qualified Candidates – Have Position Pools • More Broadly Disciplined Candidates • More Centralization And Integration Of Systems And Information In Business Units • Cross Boundary Fertilization To Develop Broader Skills And Perspective
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Human Resource Systems
Managerial Succession Planning: • Largely Line Driven • Strategic Competencies And Models Define Success • Cross Functional Management Capability • Individual Sets Career Direction • Sequential Job Assignments Provide Primary Development, Supplemented By Specific Training • Create Assignments For Development
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