HUMAN RESOURCES MANAGEMENT ASSIGNMENTEMM

Prepared By : Izat Azuat B Kamaruddin

QUESTION

1) Define Human Resource Management & discuss the difference

between Personnel Management and HRM.

2) Explain the importance of training & development & further

describe the need for evaluation of training programmes.

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1) Define Human Resource Management & discuss the difference

between Personnel Management and HRM.

1.1 HRM

The Human Resources Management (HRM) function includes a variety of activities,

and key among them is deciding what staffing needs we have and whether to use

independent contractors or hire employees to fill these needs, recruiting and training

the best employees, ensuring they are high performers, dealing with performance

issues, and ensuring your personnel and management practices conform to various

regulations. Activities also include managing your approach to employee benefits and

compensation, employee records and personnel policies. Usually small businesses

(for-profit or nonprofit) have to carry out these activities themselves because they

can't yet afford part- or full-time help. However, they should always ensure that

employees have and are aware of personnel policies which conform to current

regulations. These policies are often in the form of employee manuals.

HR activities must link to organization to achieve goals and objectives of the

company. How it’s linked is described below:-

The manager’s human resource management job

All managers perform certain functions. These are planning, organizing, staffing,

leading and controlling. In total they represent the management process.

Some of the specific activities involved in each function include:

Planning -Establishing goals and standards; developing rules and procedures;

developing plans and forecasting

Organizing-Giving each subordinate a specific task; establishing department;

delegating authority to subordinates; establishing channels of authority and

communicating, coordinating the work of subordinates.

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Staffing-Determining what type of people should be hired; recruiting prospective

employees; selecting employees; setting performance standards; compensating

employees; evaluating performance; counseling employees; training and developing

employees.

Leading- Getting others to get job done; maintaining morale; motivating subordinates

Controlling- Setting standards such as sales quotas, quality standards, or production

levels; checking to see how actual performance compares with these standards; taking

corrective action needed.

Human Resource Management (HRM) encompasses those activities designed to provide

for and coordinate the human resources of an organization.

It is the process of acquiring, training, appraising, and compensating employees, and

attending to their labor relation, health and safety and fairness concerns.

Traditionally Human Resource Management has been referred to as personnel

administration or personal management.

1.2 Human Resources Function

Human resource functions refer to those task and duties performed in both large and small

organizations to provide for and coordinate human resources.

Human resource functions encompass a variety of activities that significantly influence all

areas of an organization.

Six major functions of Human resource management is Human resource planning,

recruitment and selection, Human resource development, Compensation and benefits,

Safety and Health, Employee and labor relation and Human Resource Research.

1.3 Why HR Importance

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Why are these concepts and techniques important to all managers? Perhaps it is easier to

answers this by listing some of the personal mistakes you does not want to make while

managing such as:-

Hire the wrong person for the job

Experience high turnover

Have your people not doing their best

Waste time with useless interviews

Have your company in court because of discriminatory actions

Have your company cited by OSHA for unsafe practices

Have some employees think their salaries are unfair and inequitable relative to others

in the organization

Allow a lack of training to undermine your department’s effectiveness

Commit any unfair labour practices

HR management is part of every manager’s responsibilities. These responsibilities include

placing the right person in the right job, and then orienting, training and compensating to

improve his job performance. The HR department carries out three main functions. The HR

manager exerts line authority in his unit and implied authority elsewhere in the organization.

They ensures that the organization’s HR objectives and policies are coordinated and

implemented. The managers also provides various staff services to line management, such as

partnering with the CEO in designing the company strategy and assisting in the hiring,

training, evaluating, rewarding, promoting, and disciplining of employees at all levels.

1.4 The difference between HRM and Personnel Management

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As the role of managing a workforce has evolved over the years, so have the titles and duties

of the people handling employee-related activities. While many people still interchange the

words “personnel” and “human resources,” those in the profession use “personnel” to refer to

basic employee management, while “human resources” refers to a more comprehensive

strategic approach to the tasks involved with workforce management.

Companies used the word “personnel” long before human resources, largely limiting it to

refer to activities such as recruiting, orientation, payroll, compensation and benefits planning,

grievances, discipline, termination and issues directly related to a company’s workers. A

personnel manager was not part of the executive management team or involved in long-range

strategic planning issues.

ersonnel management is regarded to be more administrative in nature. Personnel management

basically deals with the employees, their payroll and employment laws. On the other hand,

Human Resources Management deals with the management of the work force, and

contributes to an organization’s success.

Human Resources Management is spoken about in a much broader sense than Personnel

Management. It has been said that HRM incorporates and develops personnel management

skills. It is Human Resources Management that develops a team of employees for an

organization.

Personnel management can be considered as reactive, in the sense that it provides concerns

and demands as they are presented. On the contrary, Human resources Management can be

stated to be proactive, as it pertains to the continuous development of policies and functions

for improving a company’s workforce.

Whereas personnel management is independent from an organization, the Human Resources

Management is an integral part of a company or an organization.

One can also come across differences inmotivational

aspects. While Personnel management tends to motivate the employees with compensations,

rewards and bonuses, Human Resources Management tends to provide motivation through

human resources, effective strategies for facing challenges, work groups, and job creativity.

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Personnel management focuses on administrating people. On the contrary, the prime focus of

Human Resources Development is to build a dynamic culture.

1.5 Summary

1. Personnel management deals with employees, their payroll and employment laws. On the

other hand, Human Resources Management deals with the management of the work force,

and contributes to an organization’s success.

2. HRM basically deals with developing personnel management skills. It is Human Resources

Management that develops a team of employees for an organization.

3. While Personnel management is considered to be reactive, Human Resources Management

is stated to be proactive.

4. Personnel management focuses on administrating people or employees. On the other hand,

the prime focus of Human Resources Development is to build a dynamic culture.

5. Personnel management is independent from an organization. On the contrary, Human

Resources Management forms an integral part of a company or an organization.

2) Explain the importance of training & development & further

describe the need for evaluation of training programmes.

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Training is a key part of business growth and change. To help ensure that the monies are well

spent, a company must choose the right training programs wisely. When managing any

training process, it is recommended that company leaders work closely with functional

department’s heads and human resources personnel in following a systematic approach to

training.

After recruitment and selection, the next step in providing appropriate human resources for

the organization is training. Training is the methodical process of changing the behavior of

employees towards the achievement of current and future goals of the company. A formal

training program according to Ivancevich & Hoon (2002, pp. 145) is an effort by the

employer to provide opportunities for the employee to learn job-related skills, attitudes, and

knowledge. New skills that could improve production, a different mind-set to better connect

with customers, new knowledge that would revolutionize internal processes of the company,

all of which are crucial to ensure a company remains competitive. Hence, training is a critical

element in maintaining or even developing new competitive advantage for the company.

However, developing an effective training program requires an unceasing investment in time,

energy, and resources to all aspect of the training and development activities. Furthermore,

there are also internal and external factors that company needs to take into consideration

before deciding on a training program.

Internally, an effective training program is dependent on identifying the training needs of the

company. This requires an exhaustive understanding of the long and short-term objectives of

the company. Matching all factors affecting these objectives such as the financial, social,

human resources, growth, and market objectives with the company’s available tangible and

intangible resources i.e. human resources, culture, and structure. A well executed training

needs assessment would greatly facilitate the selection, implementation and even the

evaluation of the training programs. All these stages in the training cycle are important to

ensure that the goals of the training programs are met. Regardless of the condition of the

economy, companies have always perceived training as a cost rather than an investment and

by ensuring that the company’s training goals are consistently achieved the total training cost

of the company can be mitigated.

Externally, the most important factor influencing training is the condition of the external

labor market. In the current economic climate, the labor market is an employer’s market

meaning that company has the option to hire individual with the right skills, attitudes, and

knowledge to immediately assist the company in achieving any pressing objectives rather

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than investing on the training of employees which might delay accomplishing any immediate

goals of the company. However, small and medium-term enterprises should first develop a

cost benefit analysis before deciding to hire externally or training internal employees.

Irrespective of how thorough the recruitment and selection process adopted by a company

there is still a possibility that a new employee will be unable to deliver what is expected of

him or her. There is also the issue of employee morale. Hiring externally especially in the

current economic climate might cause dissatisfaction and affect the morale of existing

employees. The company could use the cost benefit analysis to identify and prepare for these

types of eventualities. The current economic climate should not deter companies from

spending on training. However, to ensure that monies spend on training is not wasted

company should focus on making sure that the objectives of any training is consistently

achieved.

2.1 TRAINING AND DEVELOPMENT AS SOURCE OF COMPETITIVE

ADVANTAGE

Companies derive competitive advantage from training and development. Training and

development programmes, as was pointed out earlier, help remove performance deficiencies

in employee. This is particularly true when - (1) the deficiency is caused by a lack of ability

rather than a lack of motivation to perform, (2) the individual(s) involved have the aptitude

and motivation need to learn to do the job better, and (3) supervisors and peers are supportive

of the desired behaviors.

Training & Development offers competitive advantage to a firm by removing performance

deficiencies; making employees stay long; minimized accidents, scraps and damage; and

meeting future employee needs.

There is greater stability, flexibility, and capacity for growth in an organization. Training

contributes to employee stability in at least two ways. Employees become efficient after

undergoing training. Efficient employees contribute to the growth of the organization.

Growth renders stability to the workforce. Further, trained employees tend to stay with the

organization. They seldom leave the company. Training makes the employees versatile in

operations. All rounders can be transferred to any job. Flexibility is therefore ensured.

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Growth indicates prosperity, which is reflected in increased profits from year to year. Who

else but well-trained employees can contribute to the prosperity of an enterprise?

Accidents, scrap and damage to machinery and equipment can be avoided or minimized

through training. Even dissatisfaction, complaints, absenteeism, and turnover can be reduced

if employees are trained well.

Future needs of employees will be met through training and development programmes.

Organizations take fresh diploma holders or graduates as apprentices or management trainees.

They are absorbed after course completion. Training serves as an effective source of

recruitment. Training is an investment in HR with a promise of better returns in future.

A company's training and development pays dividends to the employee and the organization.

Though no single training programme yields all the benefits, the organization which devotes

itself to training and development enhances its HR capabilities and strengthens its

competitive edge. At the same time, the employee's personal and career goals are furthered,

generally adding to his or her abilities and value to the employer. Ultimately, the objectives

of the HR department are also furthered.

2.2 The Benefits of Employee Training

How Training Benefits the Organization:

Leads to improved profitability and/or more positive attitudes towards profit

orientation. Improves the job knowledge and skills at all levels of the organization

Improves the morale of the workforce

Helps people identify with organizational goals

Helps create a better corporate image

Fosters authenticity, openness and trust

Improves relationship between boss and subordinate

Aids in organizational development

learns from the trainee

Helps prepare guidelines for work

Aids in understanding and carrying out organizational policies.

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Provides information for future needs in all areas of the organization

Organization gets more effective decision-making and problem-solving skills

Aids in development for promotion from within

Aids in developing leadership skills, motivation, loyalty, better attitudes, and other

aspects that successful workers and managers usually display

Aids in increasing productivity and/or quality of work

Helps keep costs down in many areas, e.g. production, personnel, administration, etc.

Develops a sense of responsibility to the organization for being competent and

knowledgeable

Improves Labour-management relations

Reduces outside consulting costs by utilizing competent internal consultation

Stimulates preventive management as opposed to putting out fires

Eliminates suboptimal behavior (such as hiding tools)

Creates an appropriate climate for growth, communication

Aids in improving organizational communication

Helps employees adjust to change

Aids in handling conflict, thereby helping to prevent stress and tension.

Benefits to the Individual Which in Turn Ultimately Should Benefit the Organization:

Helps the individual in making better decisions and effective problem solving

Through training and development, motivational variables of recognition,

achievement, growth, responsibility and advancement are internalized and

operationalised

Aids in encouraging and achieving self-development and self-confidence

Helps a person handle stress, tension, frustration and conflict

Provides information for improving leadership, knowledge, communication skills and

attitudes

Increases job satisfaction and recognition

Moves a person towards personal goals while improving interactive skills

Satisfies personal needs of the trainer (and trainee)

Provides the trainee an avenue for growth and a say in his/her own future

Develops a sense of growth in learning

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Helps a person develop speaking and listening skills; also writing skills when

exercises are required. Helps eliminate fear in attempting new tasks

Benefits in Personnel and Human Relations, Intra-group & Inter-group Relations and Policy

Implementation:

Improves communication between groups and individuals:

Aids in orientation for new employee and those taking new jobs through transfer or

promotion

Provides information on equal opportunity and affirmative action

Provides information on other government laws and administrative policies

Improves interpersonal skills.

Makes organizational policies, rules and regulations viable.

Improves morale

Builds cohesiveness in groups

Provides a good climate for learning, growth, and co-ordination

Makes the organization a better place to work and live

2.3 NEED ASSESSMENT

Needs assessment diagnoses present problems and future challenges to be met through

training and development. Organizations spend vast sums of money (usually as a percentage

on turnover) on training and development. Before committing such huge resources,

organizations would do well to the training needs of their employees. Organizations that

implement training programmes without conducting needs assessment may be making errors.

For example, a needs assessment exercise reveal that less costly interventions (e.g. selection,

compensation package, job redesign) could be used in lieu of training.

Needs assessment occurs at two levels-group and individual. An individual obviously needs

when his or her performance falls short of standards, that is, when there is performance

deficiency. Inadequacy in performance may be due to lack of skill or knowledge or any other

problem. The problem of performance deficiency caused by absence of skills or knowledge

can be remedied by training. Faulty selection, poor job design, uninspiring supervision or

some personal problem may also result in poor performance. Transfer, job redesign,

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improving quality of supervision, or discharge will solve the problem. Figure below

illustrates the assessment of individual training needs and remedial measures.

2.4 Training Evaluation

Need for Evaluation: The main objective of evaluating the training programmes is to

determine if they are accomplishing specific training objectives, that are, correcting

performance deficiencies. A second reason for evaluation is to ensure that any changes in

trainee capabilities are due to the training programme and not due to any other conditions.

Training programmes should be evaluated to determine their cost effectiveness. Evaluation is

useful to explain programme failure, should finally, credibility of training and development is

greatly enhanced when it is proved that the organization has benefited tangibly from it.

Principles of Evaluation: Evaluation of the training programme must be based on the

principles:

1. Evaluation specialist must be clear about the goals and purposes of evaluation.

2. Evaluation must be continuous.

3. Evaluation must be specific.

4. Evaluation must provide the means and focus for trainers to be able to appraise

themselves, their practices, and their products.

5. Evaluation must be based on objective methods and standards.

6. Realistic target dates must be set for each phase of the evaluation process. A sense of

urgency must be developed, but deadlines that are unreasonably high will result in

poor evaluation

Criteria for Evaluation: The last column in Fig. 9.1 contains a number of potential goals

1. Training validity: Did the trainees learn during training?

2. Transfer validity: What has been learnt in training, has it been transferred on the job

enhanced performance in the work organization?

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3. Intra-organizational validity: Is performance of the new group of trainees, for which

the training programme was developed, consistent with the performance of the

original training group?

4. Inter-organizational validity: Can a training programme validated in one organization

be used successfully in another organization?

These questions often result in different evaluation techniques.

Techniques of Evaluation: Several techniques of evaluation are being used in organization

may be stated that the usefulness of the methods is inversely proportional to the ease with

which evaluation can be done.

One approach towards evaluation is to use experimental and control groups. Each group is

randomly selected, one to receive training (experimental) and the other not to receive training

(control). The random selection helps to assure the formation of groups quite similar to each

other. Measures are taken of the relevant indicators of success (e.g. words typed per minute,

quality pieces produced per hour, wires attached per minute) before and after training for

both groups. If the gains demonstrated by the experimental groups are better than those by the

control group, the training programme is labeled as successful.

Another method of training evaluation involves longitudinal or time-series analysis.

Measures are taken before the programme begins and are continued during and after the

programme is completed. These results are plotted on a graph to determine whether changes

have occurred and remain as a result of the training effort. To further validate that change has

occurred as a result of training and not due to some other variable, a control group may be

included.

One simple method of evaluation is to send a questionnaire to the trainees after the

completion the programme to obtain their opinions about the programmes worth. Their

opinions could through interviews. A variation of this method is to measure the knowledge

and/or skills that employee possess at the commencement and completion of a training. If the

measurement reveals that the results after training are satisfactory, then the training may be

taken as successful.

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In order to conduct a thorough evaluation of a training programme, it is important to assess

the cost and benefits associated with the programme. This is a difficult task, but is useful in

convincing the management about the usefulness of training.

Some of the costs that should be measured for a training programme include needs

assessment cost, salaries of training department staff, purchase of equipment (computers,

videos, handouts), programme development costs, evaluation costs, trainers' costs, rental

facilities and trainee wages during the training period.

The benefits to be compared with the cost are rupee payback associated with the

improvement in trainees' performance, their behavioral change, and the longevity of the

period during which the benefits would last

Closed-loop System

Model suggests that a training programme should be a closed-loop system in which the

evaluation process provides for continual modification of the programme. The information

may become available at several stages in the evaluation process. For example, an effective

monitoring programme might show that the training programme has not been implemented as

originally planned. In other instances, different conclusions might be supported by comparing

data obtained from the evaluation of training. In addition, even when the training programme

achieves its stated objectives, there are always developments that can affect the programme,

including the new training techniques or characteristics of trainees. Obviously, the

development of training programme needs to be viewed as a continuously evolving process.

Course Evaluation

Asking the trainees what they thought of the training is an important part of the evaluation of

the program. A training evaluation questionnaire that the trainees fill out upon completing the

program is an effective tool. A trainee survey focusing on the application of the new skills

once the employees have started using them measures the usefulness of the training program.

Companies must combine such information with objective measurements to get a complete

picture of training results.

Performance

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An objective measurement is an evaluation of employee and company performance and a

comparison with levels achieved prior to the training. If the problem is a high error rate in an

assembly, for example, the company establishes a target for improvement and develops

corresponding training. After the training, the company measures the error rate again and

compares it with the target. The training is effective if the measurements meet or exceed the

target.

Behavior

Companies sometimes have problems with employee behavior that affects performance. In

addition to measuring performance, the company must define the behavioral characteristics

that are unacceptable, develop training that specifically addresses the questionable behavior

and set measurable targets for success. Corresponding tools, such as records of co-worker

complaints and supervisor reports and evaluations, measure instances of such behavior before

and after the training. They show that the training has been effective if the targets have been

met.

Knowledge

Even employees with positive attitudes may not have the knowledge to adequately carry out

their assigned tasks. Effective training ensures that each employee has the skills and

knowledge to meet performance targets. Typical tools to evaluate knowledge are tests in the

subject matter. Training programs must define what knowledge is required for a specific task,

test employees for it and establish pass/fail levels. The tests measure the effectiveness of the

training. Excellent training programs result in all employees acquiring the essential

knowledge and passing the tests.

Summarry

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Businesses implement training programs for their employees in response to problems with

employee performance, motivation or poor work quality. They develop goals for the training

and then have to measure how well the training met the requirements. Tools for evaluating

the training ideally give information and feedback about the adequacy of the training program

as well as parts that are ineffective. Management can address these shortcomings with

additional training designed specifically for the gaps that the measurement tools identify.

REFFERENCES

Websites

1. http://www.wikipedia.com

2. http://www.quickmba.com

3. http://smallbusiness.chron.com/tools-measure-training-effectiveness-

52691.html

Text Book

1. Certo, S & Certo, T (2009) Modern Management 11e, Pearson Prentice

Hall.

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