HUMAN RESOURCE MANAGEMENT BUSN 302. Course Objectives: By the end of the course, each student should be able to: Realize the importance of HRM How

HUMAN RESOURCE HUMAN RESOURCE MANAGEMENTMANAGEMENT

BUSN BUSN 330202

Course Objectives:Course Objectives: By the end of the course, each student By the end of the course, each student

should be able to:should be able to: Realize the importance of HRMRealize the importance of HRM How HRM can contribute to How HRM can contribute to

productivity and productivity and organizational organizational performanceperformance

Recognize methods for staffing the Recognize methods for staffing the organization.organization.

How to train and develop employeesHow to train and develop employees Conducting a job analysis Conducting a job analysis Gain an appreciation “appraisal, Gain an appreciation “appraisal,

compensation, compensation, development.development.

Course Assessment and Course Assessment and GradingGrading

First Exam 15%First Exam 15% Assignments 25%Assignments 25% Midterm Exam 15%Midterm Exam 15% Final Exam 40%Final Exam 40% Participation in and contribution to Participation in and contribution to

class discussions 5%class discussions 5%

Text Book:Text Book:

Introduction to Human Resource Introduction to Human Resource Management, OXFORD UNIVERSITY, Management, OXFORD UNIVERSITY, Ashly Pinnington & Tony Edwards. Ashly Pinnington & Tony Edwards. 20112011

ObjectivesObjectives

By the end of this Block, you would be able to:By the end of this Block, you would be able to: Understand why relationships are so important for Understand why relationships are so important for

organizations.organizations. Also able to identify which relationships are most important.Also able to identify which relationships are most important. Identify the main tasks of HRM and MM.Identify the main tasks of HRM and MM. Identify central aspects of HRM philosophy of how to manage Identify central aspects of HRM philosophy of how to manage

people.people. Also understand the role of recruitment and selection in Also understand the role of recruitment and selection in

achieving the strategic objectives of the organization.achieving the strategic objectives of the organization. Explain the way the employment relationships are changing Explain the way the employment relationships are changing

and how they are affecting the employees.and how they are affecting the employees. Understand the process of career development in an Understand the process of career development in an

organization.organization.

HRMHRM

Definition of HRM ‘ A distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce using an array of )cultural(, )structural( and )personnel techniques(’. (Storey, 1995, p.5)

The HRM function is responsible for managing relationships with staff and the Marketing function is responsible for managing relationships with customer.

Human Resource ManagementHuman Resource Management(HRM)(HRM)

• New way thinking about how we can mange people.

• Not one theory its set of theory • Employee expect to treated fairly

• We can use it in private & public sectors • in private sector fails mean out of business • In public dependent on employees’ motivation,

skills, & service orientation.

88

So,So, Human ResourcesHuman Resources are the people in the organization are the people in the organization

Human Resource ManagementHuman Resource Management is a series of activities is a series of activities and decisions carried out by all line managers that help and decisions carried out by all line managers that help employees get the job done and achieve their objectivesemployees get the job done and achieve their objectives

Human Resource DepartmentHuman Resource Department consist of specially consist of specially trained professionals who help managers carry out human trained professionals who help managers carry out human resource management responsinsibilitiesresource management responsinsibilities

The relationship with employees is a key source of competitive advantage:

Half the total populations in the advanced economies are in some form of paid work or employment and are thus directly party to an employment relationship. From the employees' perspective: - the nature of that relationship is important in

influencing their standards of living influencing their job interest their job satisfaction their working hours their health and well-being

From the employers perspective, the nature and quality of the employment relationship can

influence

the amount of time spent in conflict with employees

the need for direct supervision staff turnover the degree of willing contribution

versus resistance the quality of the product or service

offered to customers the viability of the Org.

What are the differences between personnel Management and HRM?

Compare and construct the internal and external recruitment?

Internal Recruiting

Advantages disadvantages

1- Less expensive and Quicker Misses the diversity

2-

Increases motivation from within organizations

Misses chances on new ideas of newcomers bring to the

organization

External Recruiting from Job Markets

Advantages disadvantages

1-Brings new ideas into the

organizationExpensive and Time

consuming

2-

Source of increasing the number of employees for

expansion etc.

Can reduce moral of employees within

organizations

List and briefly discuss at least 5 tasks of the HRM function?

1. Recruitment, selection and staffing (ensure that the organization has enough staff with the appropriate qualifications and experience to carry out the work required.)

2. Induction, training and development (will help newcomers understand more quickly what is expected of them)

3. Appraisal and evaluation (to determine how far individuals are meeting individual performance targets)

4. Reward management 5. Staff management and record keeping6. Employee relations7. Personnel record keeping 8. Discipline procedures and dismissal

The major part of the HRM of function in Org is to ensure that there are enough people available, with the right skills and training, to be able to perform the tasks necessary to keep the organization running and to achieve strategic objectives.

Soft HRMSoft HRM

Start in 1981Start in 1981

gives more recognition to the needs of gives more recognition to the needs of employees and the importance of employees and the importance of their commitment to the organization their commitment to the organization (employee oriented).(employee oriented).

Employee Influence (1)

Work System (4)

H.R. Flow (2) Reword Systems (3)

Harvard model

4 C’s of HRM Policy4 C’s of HRM Policy

when making decisions managers when making decisions managers should consider the four C’s:should consider the four C’s:CommitmentCommitmentCompetenceCompetenceCongruence (Compatibility)Congruence (Compatibility)Cost effectivenessCost effectiveness

Guest (UK)Guest (UK)Second soft HRM model came from David Second soft HRM model came from David

Guest Guest

HRM in UK should be about design policies & HRM in UK should be about design policies & practices to achieve four out comes:practices to achieve four out comes:

1.1. Strategic integration Strategic integration (planning/implementation)(planning/implementation)

2.2. High employee commitment High employee commitment

3.3. High workforce flexibilityHigh workforce flexibility

4.4. High quality workforce High quality workforce

HRM: Trade Union and Industrial RelationsHRM: Trade Union and Industrial Relations

Industrial Relations (IR): defined as Industrial Relations (IR): defined as study of the rules governing study of the rules governing employment. These are:employment. These are:

Written collective agreement Written collective agreement (negotiated agreement between (negotiated agreement between employers and employees)employers and employees)

Unilateral regulation (those rules that Unilateral regulation (those rules that are imposed by an employer)are imposed by an employer)

Rules that originate from law (legal Rules that originate from law (legal regulation).regulation).

History of British IRHistory of British IR Tradition of voluntarism (legal Tradition of voluntarism (legal

regulation for employment regulation for employment relationship is limited).relationship is limited).

Employment relationship is by:Employment relationship is by:

- voluntary agreement of - voluntary agreement of management and trade union.management and trade union.

- through management action only.- through management action only.

Features of VoluntarismFeatures of Voluntarism No right of law for employees to take No right of law for employees to take

strike action.strike action. Employees can be dismissed in case of Employees can be dismissed in case of

strike as it is said to be breaking the strike as it is said to be breaking the contract of employment.contract of employment.

Collective agreement as a result of Collective agreement as a result of management – trade union negotiation is management – trade union negotiation is not legally binding.not legally binding.

Either party can ignore parts of agreement Either party can ignore parts of agreement if they wish.if they wish.

Absence of any legal provision that forces Absence of any legal provision that forces the employer to consult the employees on the employer to consult the employees on employee-related issues.employee-related issues.

Important development in IRImportant development in IR1.1. Employers were hostile towards employees in Employers were hostile towards employees in

end of 19end of 19thth century and beginning of 20 century and beginning of 20thth century.century.

2.2. Employees who tried to organize resistance Employees who tried to organize resistance against management control were punished.against management control were punished.

3.3. After World War II, emphasis on trade unionism After World War II, emphasis on trade unionism increased, duel development:increased, duel development:

Trade union got favourable legal climate.Trade union got favourable legal climate. Growth of trade union membership.Growth of trade union membership.

4.4. Multi-employer bargaining system introduced Multi-employer bargaining system introduced for private sector wherein negotiations took for private sector wherein negotiations took place between members of group of employers place between members of group of employers and trade union representatives.and trade union representatives.

5.5. Public sector encouraged unionization.Public sector encouraged unionization.

6.6. Multi-employer bargaining determined Multi-employer bargaining determined the pay and service conditions of the pay and service conditions of majority of employees.majority of employees.

7.7. Donovan Commission set up in mid 60s Donovan Commission set up in mid 60s to investigate the state of British IR, to investigate the state of British IR, stressed on doing away with multi-stressed on doing away with multi-employer bargaining and going for employer bargaining and going for formalization of plant level bargaining.formalization of plant level bargaining.

8.8. In IR Act 1971, collective agreements In IR Act 1971, collective agreements were made legally binding and were made legally binding and introduction of heavy financial penalties introduction of heavy financial penalties on trade unions responsible for unfair on trade unions responsible for unfair practice.practice.

9.9. In 1974, this Act was repealed by change In 1974, this Act was repealed by change of government.of government.

Changes in IR in 1980sChanges in IR in 1980s

First important change was weakening of First important change was weakening of trade unions effect on employers and trade unions effect on employers and decline in trade union membership.decline in trade union membership.

Decline in collective bargaining process.Decline in collective bargaining process. Fewer issues were taken up for negotiation Fewer issues were taken up for negotiation

as compared to earlier.as compared to earlier. Decentralization of levels of bargaining i.e. Decentralization of levels of bargaining i.e.

from multi-employer to single employer from multi-employer to single employer bargaining.bargaining.

Role of joint regulation declined while role Role of joint regulation declined while role of unilateral regulation increased which of unilateral regulation increased which supplemented growth in practices supplemented growth in practices associated with HRM (performance related associated with HRM (performance related pay schemes, quality control, appraisal).pay schemes, quality control, appraisal).

Between 1979 and 1997, number of efforts Between 1979 and 1997, number of efforts taken by UK government to weaken trade taken by UK government to weaken trade union affect.union affect.

Several political and economic Several political and economic developments reduced the affect of trade developments reduced the affect of trade union. union.

Recent developmentsRecent developments

In 1997, when labour party came to power In 1997, when labour party came to power in the government, the attention was paid in the government, the attention was paid to create statutory right for trade union.to create statutory right for trade union.

Minimum Ware Rate was fixed by Low Pay Minimum Ware Rate was fixed by Low Pay Commission in the UK.Commission in the UK.

British government signed the Social British government signed the Social Chapter of EU and passed 2 directives Chapter of EU and passed 2 directives concerning Right to Parental Leave and concerning Right to Parental Leave and Creation of European Work Council in Creation of European Work Council in MNCs. MNCs.

Main activities of HRMMain activities of HRM

1.1. Recruitment, selection and staffingRecruitment, selection and staffing2.2. Induction, training and developmentInduction, training and development3.3. Appraisal and evaluationAppraisal and evaluation4.4. Reward managementReward management5.5. Discipline procedures and dismissalDiscipline procedures and dismissal6.6. Grievance handlingGrievance handling7.7. Staff management and record keepingStaff management and record keeping8.8. Employee relationsEmployee relations9.9. Personal record keepingPersonal record keeping10.10. Welfare functions.Welfare functions.

Employee Resourcing and CareersEmployee Resourcing and Careers Employee Resourcing: this process Employee Resourcing: this process

aims at supplying an organization aims at supplying an organization with the right quality and number of with the right quality and number of people to achieve its strategy.people to achieve its strategy.

HR Flow: 3 stages:HR Flow: 3 stages:– Inflow: recruitment and selection.Inflow: recruitment and selection.– Internal flow: employee’s work roles, Internal flow: employee’s work roles,

promotion, career satisfaction and promotion, career satisfaction and development.development.

– Outflow: retirement, resignation and Outflow: retirement, resignation and retrenchment.retrenchment.

HR Flow ManagementHR Flow Management HR Flow Management: determining a HR Flow Management: determining a

pattern of flow that considers effect pattern of flow that considers effect on employee commitment to the on employee commitment to the organization, ability of organization organization, ability of organization to adapt to changing circumstances to adapt to changing circumstances and the culture of the organization.and the culture of the organization.

HR flow has affect on:HR flow has affect on:– Employee commitmentEmployee commitment– Level of organizational competenceLevel of organizational competence– Well being of local community and Well being of local community and

societysociety

Flow Policy systemsAnd practices1. InflowRecruitment, selection,Orientation, socialization2. Internal flowPerformance and potential EvaluationCareer developmentPromotion, training3. OutflowTermination, retirement

Organizational Requirements

Business objectivesAnd plans

HR flow plans

Individual needsPersonal objectives

And life plansIndividual career

Development plans

Social institutionsGovt. legislation, unions,

public policy, educational institutions

HR FLOW

3 perspectives on HR flow policies3 perspectives on HR flow policies

Individual perspective (career)Individual perspective (career) Organizational perspective (4 Organizational perspective (4

cultures)cultures) Societal perspective (national Societal perspective (national

culture)culture)

1. Individual Perspective1. Individual Perspective Study of how employee resourcing affects Study of how employee resourcing affects

individual careers.individual careers. Careers are short or long or changed due to Careers are short or long or changed due to

change of work.change of work. Careers are important for all.Careers are important for all. Factors like privatization and de-regulation have Factors like privatization and de-regulation have

made large organizations flatter with less number made large organizations flatter with less number of layers resulting into less opportunity for of layers resulting into less opportunity for promotion, social advancement and higher promotion, social advancement and higher status.status.

This leads to either adaptation to whatever This leads to either adaptation to whatever available or career dissatisfaction.available or career dissatisfaction.

Career dissatisfaction: when organization is Career dissatisfaction: when organization is unable to provide new challenging opportunities unable to provide new challenging opportunities to ambitious, high performing employees.to ambitious, high performing employees.

Career AnchorsCareer Anchors Ed Schein introduced this concept.Ed Schein introduced this concept. These are attributes, motives, attitudes and These are attributes, motives, attitudes and

values that shape individual careers.values that shape individual careers. There are 6 career anchors:There are 6 career anchors:

1.1. Managerial competenceManagerial competence2.2. Technical-functional competenceTechnical-functional competence3.3. SecuritySecurity4.4. CreativityCreativity5.5. AutonomyAutonomy6.6. IndependenceIndependence

■ If 6 career anchors are present in employee’s If 6 career anchors are present in employee’s work, leads to career satisfaction and work, leads to career satisfaction and commitment in the organization.commitment in the organization.

Determinants for success of HR flowDeterminants for success of HR flow

Success of HR flow is when individual Success of HR flow is when individual career needs are matched with career needs are matched with organizational needs.organizational needs.

Employee can be satisfied when he is Employee can be satisfied when he is flexible to change and agrees to flexible to change and agrees to different working pratices.different working pratices.

2. Organizational Perspective2. Organizational Perspective Organizational culture (OC) sets norms Organizational culture (OC) sets norms

and expectations of how people should be and expectations of how people should be treated and serve the needs of the treated and serve the needs of the organization.organization.

OC affects employee resourcing.OC affects employee resourcing. Different cultural differences create 4 OCs Different cultural differences create 4 OCs

(Fons Trompenaars) and these are:(Fons Trompenaars) and these are:– FamilyFamily– Eiffel TowerEiffel Tower– Guided MissileGuided Missile– IncubatorIncubator

FamilyFamily

Supports leadership from top.Supports leadership from top. Expects love and respect from employers.Expects love and respect from employers. HR flow policies are not clearly mentioned.HR flow policies are not clearly mentioned. HR flow policies depend on decisions made HR flow policies depend on decisions made

by a few top people in the organization.by a few top people in the organization. Loyalty demanded from employees and in Loyalty demanded from employees and in

return employees demand to be treated return employees demand to be treated like members of the family.like members of the family.

Eiffel Tower Eiffel Tower

Bureaucratic and mechanistic.Bureaucratic and mechanistic. People treated as human resources.People treated as human resources. People expected to follow People expected to follow

organizational job description, rules organizational job description, rules and procedures.and procedures.

Hierarchical. Hierarchical.

Guided MissileGuided Missile

Task centered culture.Task centered culture. Structured organization with clearly Structured organization with clearly

set goals.set goals. Employees have MBO and rewarded Employees have MBO and rewarded

with performance related pay.with performance related pay. High performers assigned more High performers assigned more

challenging tasks.challenging tasks.

IncubatorIncubator Opportunity for personal growth and Opportunity for personal growth and

change.change. Emphasis on innovation and creativity.Emphasis on innovation and creativity. Employees recruited and laid off according Employees recruited and laid off according

to workload.to workload. Guided missile and Eiffel Tower have well Guided missile and Eiffel Tower have well

documented and formulated business documented and formulated business strategy.strategy.

Systematic methods exist in the above 2 Systematic methods exist in the above 2 OC.OC.

3. Societal Perspective – National Culture3. Societal Perspective – National Culture

Influence of society on HR flow.Influence of society on HR flow. Employers and managers must Employers and managers must

understand these influences in order understand these influences in order to create and implement HR policy to create and implement HR policy effectively.effectively.

Employees should understand the Employees should understand the influence of culture and society in influence of culture and society in order to manage their careers and order to manage their careers and adapt to situations confidently for adapt to situations confidently for individual effectiveness.individual effectiveness.

Managing HR FlowManaging HR Flow

Managing Inflow (recruitment and Managing Inflow (recruitment and selection)selection)

– Recruitment is the process of Recruitment is the process of attracting candidates to apply for attracting candidates to apply for vacant jobs (+ve process).vacant jobs (+ve process).

– Selection is the process of choosing Selection is the process of choosing the right person for the job from the right person for the job from among pool of candidates (-ve among pool of candidates (-ve process).process).

Recruitment ®Recruitment ® R is the first stage of a relationship in which both R is the first stage of a relationship in which both

applicant and organization send out signals and applicant and organization send out signals and make decisions as to whether to go on to the next make decisions as to whether to go on to the next stage of employment contract.stage of employment contract.

It is a process of mutual exchange and It is a process of mutual exchange and negotiation where both parties try to influence negotiation where both parties try to influence each other’s expectations.each other’s expectations.

It is a communication function.It is a communication function. Organization tries to promote image of Organization tries to promote image of

themselves for attracting potential employees.themselves for attracting potential employees. External recruitment: by media advertisement, External recruitment: by media advertisement,

employment agencies, placement consultants, employment agencies, placement consultants, career fairs, campus interviews, website career fairs, campus interviews, website opportunities.opportunities.

Internal recruitment: By newsletters, vacancy Internal recruitment: By newsletters, vacancy bulletins.bulletins.

9.3 Recruitment & Selection: Putting 9.3 Recruitment & Selection: Putting The Right People Into The Right JobsThe Right People Into The Right Jobs

HOW DO MANAGERS CHOOSE THE BEST HOW DO MANAGERS CHOOSE THE BEST PERSON FOR A JOB?PERSON FOR A JOB?

The process of locating and attracting The process of locating and attracting qualified applicants for jobs open in the qualified applicants for jobs open in the organization is referred to as organization is referred to as recruitmentrecruitment

There are two types of recruitment: There are two types of recruitment: internalinternal and and externalexternal


1.1. Making people already employed by the Making people already employed by the organization aware of job openings is called organization aware of job openings is called internal recruitinginternal recruitingCompanies use Companies use job postingsjob postings where information where information about job vacancies and qualifications is posted about job vacancies and qualifications is posted on bulletin boards, in newsletters, and on the on bulletin boards, in newsletters, and on the organization’s intranet to find internal organization’s intranet to find internal personnelpersonnel2.2. Attracting job applicants from outside the Attracting job applicants from outside the organization is organization is external recruitingexternal recruitingThe most effective source of external The most effective source of external employees is referralsemployees is referrals

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Internal Recruiting: Advantages/Disadvantages

Advantages:Advantages: Employees tend to be Employees tend to be

inspired to greater inspired to greater effort and loyaltyeffort and loyalty

The whole process of The whole process of advertising, advertising, interviewing, and so on interviewing, and so on is cheaperis cheaper

There are fewer risks. There are fewer risks. Internal candidates are Internal candidates are already known and are already known and are familiar with the familiar with the organizationorganization

Disadvantages:Disadvantages: Restricts the competition Restricts the competition

for positions and limits the for positions and limits the pool of fresh talent and pool of fresh talent and viewpointsviewpoints

It may encourage It may encourage employees to assume that employees to assume that longevity and seniority longevity and seniority will automatically result in will automatically result in promotionpromotion

Whenever a job is filled, it Whenever a job is filled, it creates a vacancy creates a vacancy elsewhere in the elsewhere in the organizationorganization


External Recruiting: Advantages/Disadvantages

Advantages:Advantages:Applicants have Applicants have

specialized specialized knowledge and knowledge and experienceexperience

Applicants have Applicants have fresh viewpointsfresh viewpoints

DisadvantagesDisadvantages::The recruitment The recruitment

process is longer process is longer and more and more expensiveexpensive

The risks are higher The risks are higher because the because the persons hired are persons hired are less well knownless well known


Because people are often disillusioned after Because people are often disillusioned after taking a job, some companies provide taking a job, some companies provide realistic realistic job previewsjob previews where candidates are given both where candidates are given both positive and negative features of the jobs and positive and negative features of the jobs and the organization before being hired the organization before being hired The process of screening job applicants and The process of screening job applicants and hiring the best candidate is the hiring the best candidate is the selection selection processprocessThere are three types of selection tools: There are three types of selection tools: background information, interviewing, and background information, interviewing, and employment tests employment tests


1. Background Information1. Background Information - application - application forms and resumes are basic sources of forms and resumes are basic sources of information about job applicantsinformation about job applicants

2. Interviewing2. Interviewing - can be - can be unstructuredunstructured (asks (asks probing questions to find out what the probing questions to find out what the applicant is like), or applicant is like), or structuredstructured (asks each (asks each applicant the same questions and compares applicant the same questions and compares responses to a standardized set of answers)responses to a standardized set of answers)

Important aspects of the case are:Important aspects of the case are: Process of recruitment and selection has Process of recruitment and selection has

to be considered in a wider context.to be considered in a wider context. They form part of the overall manpower They form part of the overall manpower

planning process within organization.planning process within organization. Recruitment includes projecting positive Recruitment includes projecting positive

image of the organization continuously to image of the organization continuously to all parties.all parties.

There are many things to think about There are many things to think about when planning a recruitment drive.when planning a recruitment drive.

SelectionSelection Important communication and Important communication and

relationship function within an relationship function within an organization.organization.

2-way function.2-way function. Main methods of selection are:Main methods of selection are:

– InterviewInterview– Test (to know about aptitude about Test (to know about aptitude about

literacy, numeracy or personality)literacy, numeracy or personality)– Assessment center (use of a Assessment center (use of a

combination of techniques for selection)combination of techniques for selection)

Induction and SocializationInduction and Socialization From organizational side, socialization is From organizational side, socialization is

the process which helps to shape and the process which helps to shape and maintain organizational culture.maintain organizational culture.

From employees’ side, it is a means of From employees’ side, it is a means of knowing job and firm.knowing job and firm.

Function of HR dept. to provide induction Function of HR dept. to provide induction programmes and other informal means of programmes and other informal means of helping the new employees to understand helping the new employees to understand what is required of them.what is required of them.

Induction helps to acquire skills, Induction helps to acquire skills, knowledge and capabilities to carry out knowledge and capabilities to carry out their role in an expected standard.their role in an expected standard.

Securing Competitive advantage Securing Competitive advantage through human resources through human resources

Please see the fig. 3.1 pg.34 in Block Please see the fig. 3.1 pg.34 in Block 2 for seeing how HR functions create 2 for seeing how HR functions create competitive advantage.competitive advantage.

Employee InvolvementEmployee Involvement A way of improving employer-employee A way of improving employer-employee

relationships.relationships. Participative activities that make the Participative activities that make the

employees to feel more involved with the employees to feel more involved with the organization for which they work.organization for which they work.

Builds commitment.Builds commitment. Ways of involving are:Ways of involving are:

– Two way communicationTwo way communication– Involvement of employees in solving work Involvement of employees in solving work

related problems.related problems.– Team workingTeam working– Self managed teams.Self managed teams.– Share ownership Share ownership – Profit sharing e.g. of financial involvement in Profit sharing e.g. of financial involvement in

Scott Bader case.Scott Bader case.

Managing OutflowManaging Outflow

Early retirement at 50 / 55 age.Early retirement at 50 / 55 age. Lay off (low performers).Lay off (low performers). Outflow affected by national Outflow affected by national

employment legislation.employment legislation. For cost reduction and retaining For cost reduction and retaining

people who truly have competence people who truly have competence and attitude to changing work and attitude to changing work environment.environment.

HR PlanningHR Planning

Means of representing the inflow, Means of representing the inflow, internal flow and out flow of human internal flow and out flow of human resources.resources.

Quantitative methods of analyzing an Quantitative methods of analyzing an organization’s HR needs under organization’s HR needs under changing conditions and developing changing conditions and developing personnel policies required for long personnel policies required for long term effectiveness of organization.term effectiveness of organization.

Learning and DevelopmentLearning and Development Learning and development are indispensable Learning and development are indispensable

components of strategic HRM.components of strategic HRM. Learning: the process whereby individuals acquire Learning: the process whereby individuals acquire

knowledge, skills and attitudes through knowledge, skills and attitudes through experience, reflection, study and instruction.experience, reflection, study and instruction.

Training: a planned and sustained effort to modify Training: a planned and sustained effort to modify or develop knowledge /skill /attitude through or develop knowledge /skill /attitude through learning experience, to achieve effective learning experience, to achieve effective performance in an activity or range of activities.performance in an activity or range of activities.

Education: A process and a series of activities Education: A process and a series of activities which aim at enabling an individual to assimilate which aim at enabling an individual to assimilate and develop knowledge, skills, value and and develop knowledge, skills, value and understanding that are not simply related to a understanding that are not simply related to a narrow field of activity but allow a broad range of narrow field of activity but allow a broad range of problems to be defined, analyzed and solved.problems to be defined, analyzed and solved.

Learning OrganizationLearning Organization

LO: it is an organization that facilitates the LO: it is an organization that facilitates the learning of all its members and learning of all its members and continuously transforms itself.continuously transforms itself.

Creating LO is a strategy for sustainable Creating LO is a strategy for sustainable development in which more organizations development in which more organizations may take a greater interest in the future, may take a greater interest in the future, but as yet it is still mainly a vision of what but as yet it is still mainly a vision of what might be.might be.

Purpose of Training and DevelopmentPurpose of Training and Development

To assess and address skill To assess and address skill deficiencies.deficiencies.

To act as a catalyst for change.To act as a catalyst for change. To give the organization a To give the organization a

competitive edge.competitive edge. To encourage a learning climate.To encourage a learning climate.

Kind of TrainingKind of Training

1.1. On the job trainingOn the job training

2.2. Off the job trainingOff the job training

3.3. MentoringMentoring

4.4. CoachingCoaching

5.5. Lateral moves/secondments.Lateral moves/secondments.


Employment TestsEmployment Tests - legally considered to consist - legally considered to consist of any procedure used in the employment of any procedure used in the employment selection decision processselection decision processThree common employment tests are: Three common employment tests are: --ability testsability tests - measure physical abilities, - measure physical abilities, strength, stamina, and so onstrength, stamina, and so on--performance testsperformance tests - measure performance on - measure performance on actual job tasksactual job tasks--personality testspersonality tests - - measure personality traits measure personality traits like adjustment, energy, sociability, like adjustment, energy, sociability, independence, and so on using tests like the independence, and so on using tests like the Myers-Briggs assessmentMyers-Briggs assessment

9.4 Orientation, Training, & Development 9.4 Orientation, Training, & Development

HOW DO MANAGERS HELP NEW HIRES BE HOW DO MANAGERS HELP NEW HIRES BE SUCCESSFUL?SUCCESSFUL?

Helping newcomers fit smoothly into the job Helping newcomers fit smoothly into the job and the organization is referred as and the organization is referred as orientationorientationOrientation should provide information on: Orientation should provide information on: -the job routine-the job routine-the organization’s mission and operations-the organization’s mission and operations-the organization’s work rules and employee -the organization’s work rules and employee benefitsbenefits

9.4 Orientation, Training, & Development9.4 Orientation, Training, & Development

Managers can also improve employee Managers can also improve employee performance by providing training and performance by providing training and developmentdevelopmentTrainingTraining refers to educating technical and refers to educating technical and operational employees in how to better do operational employees in how to better do their current jobstheir current jobs

– Short-Term skills orientedShort-Term skills orientedDevelopmentDevelopment refers to educating refers to educating professionals and managers in the skills they professionals and managers in the skills they need to do their jobs in the futureneed to do their jobs in the future

– Long-Term career orientedLong-Term career oriented


Figure: 9.2: Five Steps in the Training ProcessFigure: 9.2: Five Steps in the Training Process


Training that takes place at work is called Training that takes place at work is called on-the-job-trainingon-the-job-training Training that takes place using classroom Training that takes place using classroom programs, videotapes, and so on is programs, videotapes, and so on is off-the-off-the-job trainingjob trainingWhen computers are used to provide When computers are used to provide additional help or reduce instructional time, additional help or reduce instructional time, there is there is computer-assisted instructioncomputer-assisted instruction

9.5 Performance Appraisal9.5 Performance Appraisal

HOW SHOULD MANAGERS ASSESS THEIR HOW SHOULD MANAGERS ASSESS THEIR EMPLOYEE’S PERFORMANCE?EMPLOYEE’S PERFORMANCE?

Performance appraisalPerformance appraisal consists of consists of assessing an employee’s performance and assessing an employee’s performance and providing him or her with feedbackproviding him or her with feedbackThis provides employees with an This provides employees with an understanding of how they are doing understanding of how they are doing relative to the firm’s objectives and it helps relative to the firm’s objectives and it helps with their development and training with their development and training


There are two types of appraisals: There are two types of appraisals:

1. 1. Objective appraisalsObjective appraisals are based on facts and are are based on facts and are often numerical often numerical

2. 2. Subjective appraisalsSubjective appraisals are based on a manager’s are based on a manager’s perceptions of an employee’s perceptions of an employee’s traitstraits (attitudes, (attitudes, initiative, leadership) or initiative, leadership) or behaviorsbehaviors (specific (specific observable aspects of performance)observable aspects of performance)

Most performance appraisals are done by Most performance appraisals are done by managers, but sometimes information comes from managers, but sometimes information comes from

other sources like peers and subordinatesother sources like peers and subordinates


There are two types of feedback:There are two types of feedback:

1. 1. Formal appraisalsFormal appraisals are conducted at are conducted at specific times throughout the year and are specific times throughout the year and are based on performance measures that have based on performance measures that have been established in advancebeen established in advance

2. 2. Informal appraisalsInformal appraisals are conducted on an are conducted on an unscheduled basis and consist of less unscheduled basis and consist of less rigorous indications of employee rigorous indications of employee performanceperformance


Performance Appraisals

Establish Establish StandardsStandards

– UnderstandableUnderstandable– MeasurableMeasurable– ReasonableReasonable

Communicate Communicate StandardsStandards

Evaluate Evaluate PerformancePerformance

4. Discuss Results

5. Take Action1. Corrective2. Reward

6. Use Results to Make Decisions


Major Uses of Performance Appraisals

Evaluate hiring process

Judge effectiveness of orientation process

Use as a basis for terminating workers

Identify training Identify training needsneeds

Use as a Use as a promotion toolpromotion tool

Recognize Recognize workers’ workers’ achievementsachievements


How to Give Employees Feedback:

Take a problem-Take a problem-solving approach, solving approach, avoid criticism, and avoid criticism, and treat employees treat employees with respectwith respect

Be specific in Be specific in describing the describing the employee’s present employee’s present performance and performance and the improvement the improvement you desireyou desire

Get the employee’s Get the employee’s inputinput


How to Give Employees Feedback:

If criticism is If criticism is warranted, warranted, criticize the act, criticize the act, not the employeenot the employee

Learning Cycle (LC)Learning Cycle (LC) Learning organization is about individual Learning organization is about individual

and organization change and about and organization change and about creating conditions for better learning.creating conditions for better learning.

Organization LC: learn collectively.Organization LC: learn collectively. Kolb’s LC: 4 stages process for Kolb’s LC: 4 stages process for

continuously revising and creating continuously revising and creating knowledge.knowledge.– Concrete experience (generating ideas Concrete experience (generating ideas

through experience)through experience)– Reflective observation (individual integrates Reflective observation (individual integrates

and reflects on experience)and reflects on experience)– Abstract conceptualization (drawing Abstract conceptualization (drawing

conclusions and formation of concepts)conclusions and formation of concepts)– Testing the concepts or ideas. (Fig. 8.3 pg. Testing the concepts or ideas. (Fig. 8.3 pg.

193)193)

Individual learning stylesIndividual learning styles According to Honey and Mumford, According to Honey and Mumford,

individuals have a mixture of four learning individuals have a mixture of four learning styles normally one or two more preferred styles normally one or two more preferred than other styles.than other styles.

These are:These are:– Activist (open minded, sociable, Activist (open minded, sociable,

welcomes changes)welcomes changes)– Reflector (Good listener, tolerant, sees Reflector (Good listener, tolerant, sees

different perspective)different perspective)– Theorist (rational, objective, analytical)Theorist (rational, objective, analytical)– Pragmatist (experimenter, adaptable. Pragmatist (experimenter, adaptable.

Practical).Practical).

Organizational LearningOrganizational Learning There are four stages in OL There are four stages in OL

(according to Dixon):(according to Dixon):– GenerateGenerate– IntegrateIntegrate– InterpretInterpret– ActAct

Employee DevelopmentEmployee Development Need for a proactive approach to Need for a proactive approach to

Employee Development.Employee Development. Employee development is the Employee development is the

responsibility of everyone in the LO.responsibility of everyone in the LO. Helps in being innovative in organization.Helps in being innovative in organization. Through informal methods and on the job Through informal methods and on the job

practice.practice. Off the job learning programs are also Off the job learning programs are also

important.important. Trainers and HR facilitators act as change Trainers and HR facilitators act as change

agents, bringing about innovation. agents, bringing about innovation.

Components of Innovative Organization Components of Innovative Organization according to Galbraithaccording to Galbraith

1.1. Structure: structure must encourage idea Structure: structure must encourage idea generators, sponsors and orchestrators.generators, sponsors and orchestrators.

2.2. Processes: planning ahead for Processes: planning ahead for innovation, idea generating, blending innovation, idea generating, blending ideas and managing innovative products.ideas and managing innovative products.

3.3. Reward System: Should provide Reward System: Should provide opportunities, autonomy, promotion and opportunities, autonomy, promotion and recognition for successful employees recognition for successful employees who are innovators.who are innovators.

4.4. People: Must be selected and People: Must be selected and encouraged to self select and then must encouraged to self select and then must be provided training and development.be provided training and development.

Kinds of Employee DevelopmentKinds of Employee Development 1.1. Outdoor development (learning activities Outdoor development (learning activities

aim to motivate employees to improve their aim to motivate employees to improve their leadership, teamwork, problem solving, leadership, teamwork, problem solving, decision making and creativity skills).decision making and creativity skills).

– Pre-course briefing, post course feedback and Pre-course briefing, post course feedback and organize follow up activities to ensure the organize follow up activities to ensure the maximum transfer of learning into work place.maximum transfer of learning into work place.

2.2. Technology based learning and OL: use of Technology based learning and OL: use of computers, IT methods, A/V aids for training computers, IT methods, A/V aids for training and development.and development.

3.3. Management Development: aim is to make Management Development: aim is to make managers more innovative, risk taking and managers more innovative, risk taking and proactive.proactive.

InternationalizationInternationalization Growth of international trade.Growth of international trade. Growth of MNC has its impact on HRM.Growth of MNC has its impact on HRM. Activities of MNCs have grown.Activities of MNCs have grown. Intra-enterprise trade within MNCs.Intra-enterprise trade within MNCs. Increased speed of international Increased speed of international

communication.communication. Finances raised from different parts of Finances raised from different parts of

world.world. Senior management being represented by Senior management being represented by

people of different countries.people of different countries. MNCs have national characteristics of the MNCs have national characteristics of the

country of their own.country of their own.

Implications of national identity in MNCs for HRMImplications of national identity in MNCs for HRM

MNCs are good channel through MNCs are good channel through which HRM policies move across the which HRM policies move across the globe.globe.

MNC is medium for transferring MNC is medium for transferring knowledge.knowledge.

Employment practices of parent Employment practices of parent company extends to subsidiaries company extends to subsidiaries overseas.overseas.

US/Japanese HRM practices being US/Japanese HRM practices being used across border.used across border.

Decisions on whose career should be given Decisions on whose career should be given prominence and who should occupy senior prominence and who should occupy senior

positions in international organizationspositions in international organizations Ethnocentric: all key positions at headquarters Ethnocentric: all key positions at headquarters

and subsidiaries are filled by parent country and subsidiaries are filled by parent country nationals.nationals.

Polycentric: host country nationals are recruited Polycentric: host country nationals are recruited to manage subsidiaries in their own country and to manage subsidiaries in their own country and parent country nationals occupy key positions in parent country nationals occupy key positions in corporate headquarters.corporate headquarters.

Geocentric: the best people are sought for key Geocentric: the best people are sought for key jobs, regardless of their nationality.jobs, regardless of their nationality.

Regiocentric: People’s careers are limited to a Regiocentric: People’s careers are limited to a particular geographical region and within this particular geographical region and within this region, the best people are sought for key jobs, region, the best people are sought for key jobs, regardless of their nationality.regardless of their nationality.

Constraints from Host CountryConstraints from Host Country Differences in business systems of Differences in business systems of

different countries act as constraints for different countries act as constraints for MNCs.MNCs.

Open economy will accept the new firm-Open economy will accept the new firm-market relationships.market relationships.

In cohesive, integrated business systems, In cohesive, integrated business systems, MNCs will have to adapt their mode of MNCs will have to adapt their mode of operation to the host country.operation to the host country.

Legal framework of host country has affect Legal framework of host country has affect on MNCs (constraint their freedom).on MNCs (constraint their freedom).

Cultural differences between countries.Cultural differences between countries.

Requires functional flexibility.

9.6 Managing Promotions, Transfers, 9.6 Managing Promotions, Transfers, Disciplining, & DismissalsDisciplining, & Dismissals

WHO SHOULD BE PROMOTED, WHO SHOULD WHO SHOULD BE PROMOTED, WHO SHOULD BE DISMISSED?BE DISMISSED?

Deciding who to promote, transfer, or dismiss Deciding who to promote, transfer, or dismiss are all part of the manager’s responsibilities are all part of the manager’s responsibilities Managers can recognize an employee’s Managers can recognize an employee’s superior performance by giving the individual a superior performance by giving the individual a promotionpromotionWhen an employee is moved to a different job When an employee is moved to a different job with similar responsibility, the employee has with similar responsibility, the employee has been been transferredtransferred

9.6 Managing Promotions, Transfers, 9.6 Managing Promotions, Transfers, Disciplining, & DismissalsDisciplining, & Dismissals

Employees that are not meeting Employees that are not meeting expectations may be warned or expectations may be warned or reprimanded, and then reprimanded, and then disciplineddisciplinedThere are three types of There are three types of dismissalsdismissals::-layoffs-layoffs imply that the dismissal is imply that the dismissal is temporarytemporary-downsizing-downsizing is a permanent dismissal is a permanent dismissal--firingfiring implies that the dismissal is implies that the dismissal is permanent and that there was cause for the permanent and that there was cause for the dismissal dismissal


Employee Replacement

PromotionPromotion: : moving an employee to a higher level moving an employee to a higher level position.position.

TransferTransfer:: movement of an employee to a different movement of an employee to a different job with similar responsibilityjob with similar responsibility..

Disciplining & DemotionDisciplining & Demotion: : poorly performing poorly performing employees may be given a warning or reprimand employees may be given a warning or reprimand and then disciplined. May be temporarily removed and then disciplined. May be temporarily removed from his or her regular job or demoted—having his from his or her regular job or demoted—having his or her position, pay, and prerequisites taken away.or her position, pay, and prerequisites taken away.

DismissalDismissal::LayoffsLayoffsDownsizingDownsizingFiringsFirings


Reasons Why Employees are Transferred

Solve organizational problemsSolve organizational problems Broaden managers’ experienceBroaden managers’ experience Retain manager’s interest and motivationRetain manager’s interest and motivation Solve some employee problemsSolve some employee problems


Practical Action: The Right Way to Handle a Dismissal

Give the employee a chance firstGive the employee a chance first Don’t delay the dismissal, and make sure Don’t delay the dismissal, and make sure

it’s completely defensibleit’s completely defensible Be aware how devastating a dismissal can Be aware how devastating a dismissal can

be—both for the individual and to those be—both for the individual and to those remainingremaining

Offer assistance in finding another jobOffer assistance in finding another job


Sexual Harassment

Sexual Harassment:Sexual Harassment: consists of unwanted consists of unwanted sexual attention that creates an adverse work sexual attention that creates an adverse work environment.environment.


Sexual Harassment

Guidelines for preventing sexual harassment:Guidelines for preventing sexual harassment: Don’t do uninvited touching, hugging, or Don’t do uninvited touching, hugging, or

patting of someone’s body.patting of someone’s body. Don’t request or suggest sexual favors for Don’t request or suggest sexual favors for

rewards related to work or promotion.rewards related to work or promotion. Don’t make suggestive jokes of a sexual Don’t make suggestive jokes of a sexual

nature, demeaning remarks, slurs, or obscene nature, demeaning remarks, slurs, or obscene gestures.gestures.

Don’t create sexual pictures or displays or Don’t create sexual pictures or displays or written notes of a sexual nature.written notes of a sexual nature.

Don’t laugh at others’ sexually harassing Don’t laugh at others’ sexually harassing words or behaviors.words or behaviors.

Documents

HUMAN RESOURCE MANAGEMENT BUSN 302. Course Objectives: By the end of the course, each student should be able to: Realize the importance of HRM How