MGT 101 - Managing Dynamic Human Resources

Human Resource Management (HRM)

• design and applications of formal systems in an organization to ensure the effective and efficient use of human talents to accomplish objectives (Daft)

• the management of various activities activities designed to enhance the effectiveness of organization’s workforce in achieving organizational goals

• formal systems for the management of people within the organization

Three Major Concerns in HRM

• attracting an effective workforce through recruitment and selection (competent employees are identifies and selected)

• developing an effective workforce (provide employees with up-to-date knowledge and skills)

• maintaining an effective workforce (ensures that competent and high performing employees are retained)

[Three Major Concerns in HRM] attracting an effective workforce through recruitment and selection

competent employees are identifies and selected

• human resource planning

• recruitment 

• selection

[Three Major Concerns in HRM] developing an effective workforce

provide employees with up-to-date knowledge and skills

• orientation

• training

[Three Major Concerns in HRM] maintaining an effective workforce 

ensures that competent and high performing employees are retained

• performance appraisal

• pay and other compensation systems

• career development 

• workforce reductions

Factors Affecting the HRM Process

• employee labor union

• government laws and regulations

• demographic trends

[Factors Affecting the HRM Process] Employee Labor Union

• a representation of workers

• protects workers interests through collective bargaining agreement (CBA)

[Factors Affecting the HRM Process] Government Laws and Regulations

Labor Code of the Philippines

[Factors Affecting the HRM Process] Demographic Trends

characteristics of the labor market

Strategic Importance of HRM

• today’s best human resources departments actively pursue an ongoing, integrates plan for furthering the organization’s performance

• research has found that effective human resource management has a positive impact on strategic performance, including higher employee productivity and stronger financial results (Daft)

• important strategic tool

• increasingly viewed as an important means to build internal capabilities towards a competitive advantage

• builds human capital who have good leadership qualities and who can manage across geographical and cultural boundaries

• an organization’s HRM practices has been found to have significant impact on organizational performance

HRM Process

an on-going procedure that tries to keep the organization supplied with the right positions when they are needed

Basic Activities in the HRM Process

• human resource planning

• recruitment

• selection

• socialization/orientation

• training and development

• performance appraisal

• promotion, transfer, demotion, separation

The HRM Process

Human Resource Planning

• the process of determining future human resource needs relative to an organization's strategic plan and devising steps necessary to meet those needs

• process by which management ensures that an organization is supplied with the right number of capable people in the right places at the right time

• accomplished through assessing current human resources and forecasting future HR needs

• current assessment

[Human Resource Planning] inventory

HR Planning begins with an _____ of the current human resource. This includes pertinent information on employees, such as name, educational attainment, trainings attended, previous work experiences, special skills, and spoken languages among others.

[Human Resource Planning] employee database

_____ generated through HR Planning can help managers to efficiently identify the people they need.

[Human Resource Planning] Job Analysis

• systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities required for a particular job

• the information gathered through this, aids the manager in developing or revising a job description and job specification which serve as the basis for recruitment and selection, training, employee performance, and career development

[Human Resource Planning | Job Analysis] Job Description

statement of duties, working conditions, work requirements, etc.

[Human Resource Planning | Job Analysis] Job Specification

statement of skill, abilities, education, and previous work experience required for the job

[Human Resource Planning | Job Analysis] Job Design

systematic process of organizing specific jobs

[Human Resource Planning | Job Analysis] Job Enlargement

broadening the scope of a job by expanding the number of different tasks to be performed

[Human Resource Planning | Job Analysis] Job Enrichment

increasing the depth of a job by adding the responsibility for planning, organizing, controlling, and evaluating the job

[Human Resource Planning | Job Analysis] Job Rotation

the process of shifting a person from job to job

Human Resource Planning Activities

• planning for future needs

• planning for future balance

• planning for recruiting and laying off members

• planning for training and development of employees

• through HR planning, the managers can assess areas in which the organization will be understaffed or overstaffed, and hence be guided in the next step of the HRM process, particularly recruitment/derecruitment

[Human Resource Planning Activities] planning for future needs

• how many people with what skills are needed?

• future HR needs depend on the organization’s mission, goals, and strategies

[Human Resource Planning Activities] planning for future balance

compare number of present employees who can be expected to stay with the number of needed employees

[Human Resource Planning Activities | Recruitment] capable applicants

locating, identifying, and attracting _____

[Human Resource Planning Activities] Recruitment

process of developing a large enough group of candidates to let managers select the qualified employees that they need

[Human Resource Planning Activities | Recruitment] Sources of Recruits

• internal 

• external

[Human Resource Planning Activities | Sources of Recruits] Internal

existing employees in the organization

[Human Resource Planning Activities | Sources of Recruits] External

internet, employee referrals, company websites, college recruitment, professional recruiting organizations

[Human Resource Planning Activities | Recruitment] HRM Department

this has the responsibility for determining the applicants’ compliance with the requirements

[Human Resource Planning Activities | Recruitment] Derecruitment

reducing an organization’s workforce

[Human Resource Planning Activities | Derecruitment] Firing

permanent involuntary termination

[Human Resource Planning Activities | Derecruitment] Layoffs

temporary involuntary termination; may last for a few days or extend to years

[Human Resource Planning Activities | Derecruitment] Attrition

not filling of openings created by voluntary resignations or retirement

[Human Resource Planning Activities | Derecruitment] Reduced Workweeks

having employees work fewer hours per week, or perform jobs on a part-time basis, or share jobs

[Human Resource Planning Activities | Derecruitment] Early Retirement

provision of incentives to older or more senior employees for retiring before their compulsory retirement age

[Human Resource Planning Activities | Derecruitment] Job-Sharing Employees

employees sharing one full-time position

[Human Resource Planning Activities] Selection

screening job applicants to ensure that the most appropriate candidates are hired

[Human Resource Planning Activities | Selection] mutual process

• organization makes decision in offering the job

• candidate decides whether to accept the job or not

[Human Resource Planning Activities | Selection] selection devices

• valid — with proven relationship between the device and relevant criteria

• reliable — measures the same thing consistently over time

[Human Resource Planning Activities | Selection] decision

A _____ is correct when the applicant was predicted to be successful and proved to be successful on the job, or when the applicant was predicted to be unsuccessful and was not hired.

[Human Resource Planning Activities | Selection] steps in the selection process

• job application

• initial interview

• testing

• background investigation

• in-depth selection interview

• physical examination

• job offer

[Human Resource Planning Activities] Orientation/Socialization

• program designed to help employees fit smoothly into an organization

• types of information given during orientation

• general information about work routine

• organization information — history, purpose, products, and services, etc.

• detailed presentation of organizational policies, work rules, and employee benefits

• may also include a tour of the facilities

• may be formal or informal

[Human Resource Planning Activities] Training and Development

these are important because a job demands change, employee skills have to change, too

[Human Resource Planning Activities | Training and Development] training program

designed to maintain or improve current job performance

[Human Resource Planning Activities | Training and Development] development program

designed to develop skills necessary for future work activities

[Human Resource Planning Activities | Training and Development] ways to determine training needs

• performance appraisal

• analysis of job requirements

• organizational analysis

• employee survey

[Human Resource Planning Activities | Training and Development] Training Approaches vs. Development Approaches

• on the job training (OJT)

• internship

• apprenticeship

• off the job training

[Human Resource Planning Activities | Training and Development] Training Approaches vs. Development Approaches

• coaching

• job rotation

• training positions

• planned work activities

[Human Resource Planning Activities] Performance Appraisal

• the process through which an organization gets information on how well an employee is doing his or her job

• low performance prompts corrective actions

• high performance merits rewards

• informal performance appraisals—continuous process of giving feedback to employees

• formal appraisal—formal rating process which is done at certain periods

[Human Resource Planning Activities | Performance Appraisal] major purpose or performance appraisal

• lets the employees know formally how their current performance is being rated

• identifies employees who deserve merit raises

• locates employees who need additional training

• identifies candidates for promotion or demotion

[Human Resource Planning Activities | Performance Appraisal] approaches to performance rating

• the manager rating an employee

• a group of managers rating an employee

• peer evaluation

• the employees rating the manager

• the employee rating himself

• outside sources

• multisource (360° feedback) appraisal

[Human Resource Planning Activities] Compensation

reward systems attract, motivate, and retain people

[Human Resource Planning Activities | Compensation] three decisions related to designing a pay plan

• pay level

• pay structure

• individul pay

[Human Resource Planning Activities | Compensation] pay level

low, average, or high pay

[Human Resource Planning Activities | Compensation] pay structure 

how to price different jobs within the organization

[Human Resource Planning Activities | Compensation] individual pay

different pay rates for jobs of similar worth within the same family

[Human Resource Planning Activities | Compensation] factors that influence compensation and benefits

[Human Resource Planning Activities] Employee Incentives and Benefits

• individual incentive plans

• group incentive plans

• employee benefits

[Human Resource Planning Activities | Employee Incentives and Benefits] individual incentive plans

• most common type of incentive plans

• consist of an objective standard against which a worker’s performance is compared

[Human Resource Planning Activities | Employee Incentives and Benefits] groups incentive plans

• gainsharing

• profit sharing plans

[Human Resource Planning Activities | Employee Incentives and Benefits] gainsharing

based on group performance (function of the ratio between labor costs and sales)

[Human Resource Planning Activities | Employee Incentives and Benefits] profit sharing plans

employees share based on the unit or company profitability

[Human Resource Planning Activities | Employee Incentives and Benefits] employee benefits

• those required by law

• those voluntarily given by an employer

• cafeteria benefit program

• flexible benefit program

[Human Resource Planning Activities | Employee Incentives and Benefits] cafeteria benefit program

an employee benefit program in which employees choose from a menu of options to create a benefit package tailored to their needs

[Human Resource Planning Activities | Employee Incentives and Benefits] flexible benefit program

a benefit program in which employees are given credits to spend on benefits that fit their unique needs

[Maintaining an Effective Workforce] labor relations

the system of relations between workers and management

[Maintaining an Effective Workforce] reasons for unionization

• economic reasons especially for workers in low-paying jobs; they bargain to raise wages for members

• job dissatisfaction encourages workers to form unions

• the belief that the union can obtain desired benefits

• mage of union can determine whether a satisfied worker will seek out the union

[Maintaining an Effective Workforce] collective bargaining

a periodic ritual of negotiating an agreement between over wages, hours, and working conditions

[Maintaining an Effective Workforce] Four Cs Model of Evaluating Human Resources

• competence

• commitment

• congruence

• cost effectiveness

Maintaining an Effective Workforce

• labor relations

• unionization

• collective bargaining

• labor management relations

• effective compensation and benefit system

• valuing and managing diversity

• terminating poor performers

• four Cs model of Evaluating Human Resources

Current Issues in HRM

• downsizing

• workplace romance

• sexual harassment

• drug and alcohol abuse

• employees’ right to privacy

• family issues

• glass ceiling