HR Module Notes

HR Module

HR Role in an Organization

• Learning Objectives:
  • HR role in an organization
  • HRM Functions
  • HRD
  • Building long term sustainability
  • Compensation Fundamentals /Motivation/ Grievance
  • Strategic HR and International Approaches

HRM Functions

• HR Functions:
  • Staffing
  • HRD
  • Compensation
  • Safety and Health
  • Employee and labor Relations

Staffing

• Staffing includes:
  • Organizational Design
  • JA (Job Analysis)
  • MPP (Manpower Planning)
  • Recruitment
  • Selection

Organizational Design

• Organizational Design: States how tasks related to jobs are well coordinated and grouped.
  • Mechanistic Organization:
    • An organizational structure characterized by close obedience to the established chain of command, highly specialized jobs, and vertical communications.
  • Organic Organization:
    • An organizational structure characterized by flexible lines of authority, less specialized jobs, and decentralized decisions.

Mechanistic vs Organic Organization

Importance of Clear Structure

• Work Specialization: How the jobs are distributed into parts of organization.
• Departmentalization: How specialized jobs are coordinated for common skill people.
• Chain of Command: Authority/ unity of command.
• Span of Control
• Centralization and Decentralization: Lower level employees are allowed to make decisions.
• Formalization: Jobs within the organization are standardized.

Departmentalization

• Departmentalization: The basis on which jobs are grouped together.
  • Work is divided through work specialization, and they must be collected so that common tasks can be coordinated.
  • Five common forms:
    • Functional Departmentalization
    • Product Departmentalization
    • Geographical Departmentalization
    • Process Departmentalization
    • Customer Departmentalization

Functional Departmentalization

• Grouping jobs by function (e.g., Production, Finance, Marketing, HR).

Product Departmentalization

• Organizing around product lines, with each division managing its own functions (Design, Manufacturing, Finance, Marketing, HR, R&D).

Geographical Departmentalization

• Dividing organization by geographic regions (e.g., Sales Director for Western Region, Southern Region, Midwestern Region, Eastern Region).

Process Departmentalization

• Grouping jobs based on the process flow (e.g., Spinning, Weaving, Dyeing, Printing Department).

Customer Departmentalization

• Organizing around different customer segments. (e.g., Foreign Customers, Domestic Customers, Wholesale Customers, Retail Customers).

Formalization

• Formalization refers to the unit to which jobs within the organization are standardized.
• In highly formalized organizations:
  • There are explicit job descriptions.
  • Lots of organizational rules.
  • Clearly defined procedures covering work processes.

Job Analysis (JA)

• A systematic procedure used to determine the duties of jobs and the kinds of people (in terms of competencies and experience) who should be hired for them.
  • Job Specification:
    • The human qualifications in terms of competencies, and experiences required to accomplish a job.
  • Job Description:
    • A document that identifies a particular job, provides a brief job summary, and lists specific responsibilities and duties of the job.

JA Details

• The identification of criteria necessary for successful performance in a given job.
• Identifies KSAs (Knowledge, Skills, and Abilities).
• Job tasks to perform.
• Skills required.
• Abilities needed.

JA Importance

• JA provides the foundation for almost everything HR is involved in.
  • Job Descriptions
  • Employee Selection
  • Training
  • Performance Appraisals
  • Job Classification
  • Job Evaluation
  • Compensation/ Benefits
  • Career Planning

JA Methodology

• Interview
• Structured Questionnaire: Employees rate tasks they perform on their job.
• Observation: A job analyst watches employees directly on daily basis.
• Checklist: A worker or supervisor check items on a standardized task inventory that apply to the job.
• Technical Conference.
• Benchmark: benefit of benchmark

JA Assistance

• How necessary is the job
• Identifying
  • Chain of command (not more than 5 including CEO)
  • Span of control (at least 5 max 8)
  • Skills required
  • Training
  • KRAs/ KPIs
  • Working conditions
  • Management/employee interaction

Man Power Planning (MPP)

• The process by which management ensures it has the right number and quality of people in the right places at the right time, who are capable of helping the organization achieve its goals. (3 R)
• Activities that managers engage in to forecast their current and future needs for human resources.
• A “process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time”
• Steps in the planning process:
  • Assessing current human resources
  • Assessing future human resources needs and developing a program to meet those needs

MPP Logic

• Demand forecasts
  • Estimates qualifications and numbers of employees the firm will need given its goals/ strategies.
• Supply forecasts
  • Estimates the availability and qualifications of current employees now and in the future, as well as the supply of qualified workers in the external labor market.
• Succession plan
  • Estimates how to fill the company’s most important executive jobs

Recruitment

• It is the process of attracting qualified applicants for a specific job.
• On other words : “Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization”
• Simply “finding right people for the right job or function

Recruitment Sources

• Internal (Rotation or Promotion, Reallocation)
• External (Press advertisements or, web job advertisement or, educational institutes or, recruitment agencies or, referral recruitment….)
• Terms:
  • Post opening
  • Pool of candidates
  • Head hunters

Internal Recruitment Advantages

• Cultural control
• Motivating & rewarding effect as people know they have career possibilities
• Development of people through transfers
• Lower recruitment & selection costs
• The person is known
• The person is likely to have realistic expectations

Internal Recruitment Disadvantages

• A limited pool of candidates…
• Low Moral
• Time consuming

Outsourcing/Offshoring

• Outsourcing: having outside vendors supply services (that the firm’s own employees previously did in- house).
• Offshoring: having outside vendors abroad supply products / services (that the firm’s own employees previously did in-house).

Selection

• Process of choosing from a group of applicants best candidates for the posts

Right Selection Impact

• Organizational performance
• Opportunity cost
• Organizational goodwill
• Actual Working Environment

Selection Methods

• Usually more than one method is used depending on:
  • The type of job;
  • Staff’s competency involved in the selection;
  • Administrative aspects;
  • Costs; and
  • Time factors.
• Methods include: selection forms, CVs, tests (EQ, IQ, Cognitive abilities (MBTI, OCEAN …), group tests, role play, case studies, assessment tools/ centers and interviews.
• References check and achievements records.

Fairness Requires

• Validity:
  • Does the method assess all relevant aspects of the job?
  • Does the method predict current and/or future performance?
  • Validity is absolutely critical!
  • i.e. the extent to which a test measures what it claims to measure
• Reliability:
  • Consistency of the method.
  • Is it free from random error?
  • i.e. :the same way each time it is used under the same condition with the same subjects, simply scores consistency .

Recruitment Plan Assignment

1. A brief job description of the position (information obtained from the job analysis you have already completed).
2. The plan and activities for recruitment. Where will you find the applicants?
3. Discussion of how you will sort the applicants to determine who and how many will get an interview.
4. A plan for the interview process. Who will interview? What is your interview format? Include some sample interview questions.
5. Selection. How will you make your selection decision?