HR Management ppt

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Principles of Human Resources Management 1

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Training Agenda 1. HR Management : An Overview 2. HR Planning and Recruitment 3. Employee Selection 4. Training and Development 5. Performance Management 6. Career Management

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Human Resource Management : An Overview 4

HR Management Cycle Recruitment & Selection

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Training & Development

Performance Management

Reward Management

Career Management

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HR Strategy and Business Result Recruitment & Selection

Business Strategy

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Training & Development

Performance Management

Business Result

HR STRATEGY Reward Management

Career Management

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Manpower Planning & Employee Recruitment 7

Manpower Planning Company Strategy Job Analysis

What staff do we need to do the job?

What is impact on wage and salary program?

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What staff is available within our organization? Is there a match?

• Performance appraisal • Company data banks • Training • Employee management and development

If not, what type of people do we need, and how should we recruit them? 8

Manpower Planning Factors in Forecasting Personnel Requirements

Projected turnover (as a result of resignation and terminations)

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Quality and nature of your employees (in relation to what you see as the changing need of your organization)

The financial resources available to your organization

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Technique to Determine Number of Recruits Trend Analysis

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Study of a firm’s past employment needs over a period of years to predict future needs

Ratio Analysis

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A forecasting technique for determining future staff needs by using ratios between sales volume and number of employees needed

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Recruitment from External Resources •

Recruiting new staff from external sources will be influenced by several factors, namely : MacroEconomic Conditions of a Nation

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When the economic conditions are relatively difficult, there will usually be an oversupply, or the number of applicants will much higher than the demand. In such a case, the company will find it relatively easier to select new employees from the large number of applicants.

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Recruitment from External Resources Availability of Manpower in Desired Sectors

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When the sector is one that is considered a ‘rare’ sector, the company will have more difficulty in recruiting staff for this sector. For example, computer technology, or cellular engineering.

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Recruitment from External Resources Company Reputation

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It will tend to be easier for a company to find and recruit the best people if the company has a good reputation, therefore the best fresh graduates will flock to apply to the company. Example : Google, McKinsey or Microsoft.

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Recruitment Yield Pyramid •

Some employers use a recruiting yield pyramid to determine the number of applicants they must generate to hire the required number of new employees.

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Example of Recruitment Curve: •

1200 - Leads generated

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200 - Candidates invited

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150 - Candidates interviewed

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100 - Offers made

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- New hires

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Recruitment Sources Advertising (newspaper, magazine, internet)

Recruitment Sources

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College Recruitment

Recruitment Agent (headhunter)

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Employee Selection

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Basic Concept of Selection Tests The quality of an employee selection test is determined by three main factors, namely : 1. Criterion Validity : A type of validity based on showing that scores on the test (“predictors”) are related to job performance (“criterion”). 2. Content Validity : A test that is “content valid” is one in which the test contains a fair sample of the tasks and skills actually needed for the job in question. 3. Reliability : The consistency of scores obtained by the same person when retested with identical or equivalent test.

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Some Types of Selection Test

1. Cognitive Ability Test 2. Personality Test 3. Interview

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Cognitive Ability Test •

Cognitive Abilities Tests: Paper and pencil or individualized assessment measures of an individual's general mental ability or intelligence.

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Advantages of Cognitive Ability Test • • • • • •

highly reliable verbal reasoning and numerical tests have shown high validity for a wide range of jobs the validity rises with increasing complexity of the job may be administered in group settings where many applicants can be tested at the same time scoring of the tests may be completed by computer scanning equipment lower cost than personality tests

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Disadvantages of Cognitive Ability Test •

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non-minorities typically score one standard deviation above minorities which may result in adverse impact depending on how the scores are used in the selection process differences between males and females in abilities (e.g., knowledge of mathematics) may negatively impact the scores of female applicants

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Personality Test •

Personality Tests: A selection procedure measure the personality characteristics of applicants that are related to future job performance.

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Personality tests typically measure one or more of five personality dimensions: extroversion, emotional stability, agreeableness, conscientiousness, and openness to experience.

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Advantages of Personality Test •

can result in lower turnover due if applicants are selected for traits that are highly correlated with employees who have high longevity within the organization

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can reveal more information about applicant's abilities and interests

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can identify interpersonal traits that may be needed for certain jobs

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Disadvantages of Personality Test •

difficult to measure personality traits that may not be well defined

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responses by applicant may be altered by applicant's desire to respond in a way they feel would result in their selection

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lack of diversity if all selected applicants have same personality traits

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lack of evidence to support validity of use of personality tests

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Interview •

Interviews: A selection procedure designed to predict future job performance on the basis of applicants' oral responses to oral inquiries.

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Advantages of Interview •

useful for determining if the applicant has requisite communicative or social skills which may be necessary for the job

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can assess the applicant's job knowledge

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can be used for selection among equally qualified applicants

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enables the supervisor and/or co-workers to determine if there is compatibility between the applicant and the employees

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allows the applicant to ask questions that may reveal additional information useful for making a selection decision

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Disadvantages of Interview • •

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subjective evaluations are made decisions tend to be made within the first few minutes of the interview with the remainder of the interview used to validate or justify the original decision interviewers form stereotypes concerning the characteristics required for success on the job research has shown disproportionate rates of selection between minority and non-minority members using interviews negative information seems to be given more weight not as reliable as tests

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Training & Development

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Training Process

Training Need Analysis

What are the training needs for this person and/or job?

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Training Objectives

Objective should be measurable and observable

Training Delivery

Techniques include onthe-jobtraining, action learning, etc.

Training Evaluation

Measure reaction, learning, behavior, and results

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Assessing Training Needs Task Analysis

Competency Analysis

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A detailed analysis of a job to identify the skills required, so that an appropriate training program can be instituted

Careful study of competency level to identify a deficiency and then correct it with a training program, or some other development intervention.

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Competency Analysis Current competency level of the employee

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Competency Gap

Competency Assessment

Required competency level for certain position

Training and Development Program

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Competency Profile Per Position Required Level Position

Required Competency

1

2

3

4

5

Communication Skills Training & Development Manager

Public Speaking Leadership Training Need Analysis Material Development Training Evaluation Communication Skills Interview Skills

Recruitment Supervisor

Analytical Thinking Understand Selection Tools Teamwork Customer Orientation

Score Required Competency Type

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Competency Profile Per Position Managerial competency

1

2

3

4

Leadership

Required Level Actual Level

Achievement Orientation

Teamwork

Planning & Organizing

Functional competency

1

2

3

4

Mechanical Engineering

Mechanical Equipment Maintenance

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Position

Competency Requirements

SUPERVISOR

Leadership

Achievement Orientation

Relevant Training Modules •

Leadership I

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Communication Skills I

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The Art of Motivating Employees

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Providing Effective Feedback

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Goal Setting Technique

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Work Motivation

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Planning & Organizing

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Continuous Self Improevement

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V

Teamwork

V

Achievement Orientation

V

Customer Focus

V

Job Functional Skills Communication Skills Leadership

V V V

Teamwork Manager

V

Achievement Orientation Customer Focus

V V

Strategic Thinking Problem Solving & Decision Making Job Functional Skills

Professional Seminar Series

Building Productive Teamwork

Strategic Management

Creative Problem Solving

V

Leadership Supervisor

Achievement Motivation Training

V

Service Excellence for Customer

Position

On Becoming Effective Leader 2

Communication Skills

Training Title

On Becoming Effective Leader 1

Managerial Competency

Productive Communication Series

Training Matrix for Competency Development

V V

V = compulsory training

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Enhance Training Effectiveness Make the material meaningful

Provide for transfer to learning

Training Effectiveness

Motivate the trainee

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Enhance Training Effectiveness Make the material meaningful

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At the start of training, provide the trainees with a bird’s-eye view of the material to be presented. Knowing the overall picture facilitates learning.

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Use a variety of familiar examples when presenting material

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Organize the material so that it is presented in a logical manner and in meaningful units

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Try to use terms and concepts that are already familiar to trainees

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Use as many visual aids as possible 36

Enhance Training Effectiveness Provide for transfer to learning

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Maximize similarity between the training situation and the work situation

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Provide adequate training practice

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Identify each feature of the step in the process

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Enhance Training Effectiveness Motivate the trainee

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People learn best by doing. Try to provide as much realistic practice as possible

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Trainees learn best when correct response on their part are immediately reinforced.

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Trainees learn best when they learn at their own pace. If possible, let trainees pace themselves.

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Type of Training Program OFF THE JOB Formal course

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Does not interfere with job Provides for fact learning

Simulation

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Helps transfer of learning Creates lifelike situations

Wilderness Trip

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Builds teams Builds self-esteem

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Type of Training Program ON THE JOB Job instruction training

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Facilitates transfer of learning Does not require separate facilities

Apprenticeship training

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Does not interfere with real job performance Provides extensive training

Job rotation

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Gives exposure to many jobs Allows real learning

Mentoring

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Is informal Is integrated into job

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Evaluation of Training Effectiveness Level 1 - Reaction Level 2 - Learning Level 3 – Behavior Application

Four Levels of Training Effectiveness

Level 4 – Business Impact

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Evaluation of Training Effectiveness Evaluate trainees’ reactions to

Level 1 -

the program. Did they like the

Reaction

program? Did they think it worthwhile? Test the trainees to determine if

Level 2 -

they learned the principles,

Learning

skills, and facts they were to

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learn.

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Evaluation of Training Effectiveness Ask whether the trainees’ behavior on the job changed because of the training program. For example, are employees in the store’s complaint department more courteous toward disgruntled customers than previously?

What final results were achieved in terms of the training objectives previously set? Did the number of customer complaints about employee drop? Did the reject rate improve? Was turnover reduced, and so forth.

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Level 3 – Behavior Application

Level 4 – Business Impact

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Employee Performance Management 44

Why Performance Appraisal? •

Appraisal provide information upon which promotion and salary decision can be made.

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Appraisal provide an opportunity for a manager and his/her subordinates to sit down and review the subordinate’s work-related behavior, and then develop a plan for corrective action.

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Appraisal provide a good opportunity to review the person’s career plans in light of his/her exhibited strengths and weaknesses.

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Performance Management Cycle Performance Planning (Setting Performance Targets)

• Training & Development Plan • Salary/Bonus Adjustment • Career Development

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Regular Review and Monitoring

Feed back

Corrective Action

Performance Appraisal and Evaluation

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Performance Management Cycle Defining Performance Standard/ Targets

1. Defining the performance standards means making sure that you and your subordinate agree on his/her duties and targets that you expect

Appraising Performance

2. Appraising performance means comparing your subordinate’s actual performance to the standard/targets set in step one.

Providing Feedback for Development

3. Providing feedback means discussing plans for any development that is required.

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Problems in Performance Appraisal Lack of standards

Poor feedback to employee

Irrelevant or subjective standards

Negative communication

Poor measures of performance Failure to apply evaluation data

Common Performance Evaluation Problems

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Bias in the Appraisal Process Halo Effect

Central Tendency

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The "halo" effect occurs when a supervisor’s rating of a subordinates on one trait biases the rating of that person on other traits

A tendency to rate all employees the same way, such as rating them all average

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Bias in the Appraisal Process Leniency

The problem that occurs when a supervisory has a tendency to rate all subordinates either high or low

Bias

The tendency to allow individual differences such as age, race, and sec affect the appraisal rates these employees receives.

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Performance Appraisal Element

Performance appraisal elements has two main categories:

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1. Competencies: It represents soft or qualitative aspects of performance (process) 2. Performance Result: Hard or quantitative aspects of performance (result)

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Performance Appraisal Element 1. Competencies Score

Overall Score 2. Performance Result Score

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Will determine the employee’s career movement, and also the reward to be earned

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Element # 1 : Competencies Competency : Collaboration Basic

Intermediate

Advanced

Expert

Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies understanding where understanding where required, in order understanding where required, in order understanding where required, in order required, in order to learn from others. to learn from others. to learn from others. to learn from others. Empathise with audience and formulates messages accordingly.

Empathise with audience and formulates messages accordingly.

Empathise with audience and formulates messages accordingly.

Empathise with audience and formulates messages accordingly.

Shares resources and information.

Shares resources and information.

Shares resources and information.

Shares resources and information.

Responds promptly to other team members’ needs.

Balances complementary strengths in Actively builds internal and external teams and seeks diverse contributions networks. and perspectives.

Builds internal and external networks and uses them to efficiently to create value.

Involves teams in decisions that effect them.

Uses cross functional teams to draw upon skills and knowledge throughout the organization.

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Uses cross functional teams to draw upon skills and knowledge throughout the organization.

Encourages co-operation rather than Builds and maintains relationships competition within the team and with key across The company. stakeholders.

Drives and leads key relationship groups across The company. Manages alliance relationships through complex issues such as points of competing interest. Ensures events and systems, eg IT, for collaboration are in place and used. Draws upon the full range of relationships (internal, external, cross The company) at critical points in marketing and negotiations.

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Element # 2 : Performance Results No.

Main Performance Target

1 Conduct an assessment of the employee's performance

Target to be Achieved All employees submit their performance assessment form on time

2 Improve the system for performance assessment

Target : completed 100 % in November 2008

3 Conduct training activities

Target : to conduct 6 training modules in one year

4 Carry out on the job training activities

Target : 90 % of the total employees who attend the training experience an increase in skill and knowledge

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Target should be measurable and specific 54

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Employee Career Management 55

Career Planning and Development

Career Planning & Development

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Providing employees the assistance to form realistic career goals and the opportunities to realize them

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Typical Career movement Entry Level First Line

Join Company 22 years old Supervisor/Ass. Manager 26 - 29 years old

Middle Management

Managers 29 - 35 years old

Senior Management

GM/Senior Managers 35 - 45 years old

Top Management

CEO/BOD 45 - 55 years old

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Career Stage Trial Stage

The period from about age 25 to 30 during which the person determines whether or not the chosen field is suitable and if it is not, attempts to change it.

Stabilization Stage

The period, roughly from age 30 to 40, during which occupational goals are set and more explicit career planning is made to determine the sequence for accomplishing goals

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Career Stage Mid career Crisis Stage

The period occurring between the midthirties and mid-forties during which people often make a major reassessment of their progress relative to their original career ambitions and goals

Maintenance Stage

The period form about ages 45 to 65 during which the person secures his or her place in the world of work

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Career Stage Decline Stage

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The period during which many people are faced with the prospect of having to accept reduced levels of power and responsibility.

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Career Anchors Career Anchor :

A concern or value that someone will not give up if choice has to be made

Career anchors, as their name implies, are the pivots around which a person’s career swings; a person becomes conscious of them as a result of learning about his or her talents and abilities.

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Five Career Anchors

Technical/ Functional Career Anchor

Managerial Competence as a Career Anchor

Autonomy and Independence as Career Anchor

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Creativity as a Career Anchor

Security as a Career Anchor

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Five Career Anchors Technical/ Functional Career Anchor

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People who have a strong technical/functional career anchor tend to avoid decisions that would drive them toward general management.

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Instead, they make decisions that will enable them to remain and grow in their chosen technical or functional field

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Five Career Anchors Managerial Competence

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People who show strong motivation to become managers

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Their career experience enables them to believe that they have the skills and values necessary to rise to such general management position

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Five Career Anchors Creativity

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People who go on to become successful entrepreneurs

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These people seem to have a need to build or create something that is entirely their own product – a product or process that bears their name, a company of their own, or a personal fortune that reflects their accomplishments.

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Five Career Anchors Autonomy and Independence

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People who are driven by the need to be on their own, free from the dependence that can arise when a person elects to work in a large organization.

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Some of these people decide to become consultants, working either alone or as part of relatively small firm. Others choose to become professors, free-lance writers, or proprietors of a small retail business. 66

Five Career Anchors Security

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People who are mostly concern with long-run career stability and job security.

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They seem willing to do what is required to maintain job security, a decent income, and a stable future in the form of a good retirement program and benefits.

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Career Management and the First Assignment •

Factors to keep in mind about the important first assignment, include : 1. Avoid reality shock (reality shock refers to the result of a period that may occur at the initial career entry when the new employee’s high job expectations confront the reality of boring, unchallenging jobs. 2. Provide challenging initial jobs 3. Provide realistic job preview in recruiting 4. Be demanding

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Career Management and the First Assignment 5. Provide periodic job rotation 6. Provide career-oriented performance appraisals 7. Encourage career-planning activities

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References/Recommended Further Readings 1.

Gary Dessler, Human Resource Management, Prentice Hall. You can obtain this excellent book at this link :

http://www.amazon.com/Framework-Human-Resource-Management-5th/dp/0136041531/ref=sr_1_6?ie=UTF8&s=

2.

Susan Jackson and Randall Schuler, Managing Human Resource : A Partnership Perspective, South-Western College Publishing

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