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HUMAN RESOURCEMANAGEMENT
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What is Human ResourceManagement?
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HRM
Human resource management (HRM) is the strategic andcoherent approach to the management of an organization'smost valued assets - the people working there whoindividually and collectively contribute to the achievement ofthe objectives of the business. The terms "human resource
management" and "human resources" (HR) have largelyreplaced the term "personnel management" as a descriptionof the processes involved in managing people inorganizations. In simple sense, HRM means employingpeople, developing their resources, utilizing, maintainingand compensating their services in tune with the job andorganizational requirement.
http://en.wikipedia.org/wiki/Strategichttp://en.wikipedia.org/wiki/Coherenthttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Coherenthttp://en.wikipedia.org/wiki/Strategic -
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HRM
FeaturesIts features include:
Organizational management
Personnel administration
Manpower management
Industrial management
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HRM But these traditional expressions are becoming less
common for the theoretical discipline. Sometimes evenemployee and industrial relations are confusingly listedas synonyms, although these normally refer to therelationship between management and workers and the
behavior of workers in companies. The theoretical discipline is based primarily on theassumption that employees are individuals with varyinggoals and needs, and as such should not be thought ofas basic business resources, such as trucks and filing
cabinets. The field takes a positive view of workers,assuming that virtually all wish to contribute to theenterprise productively, and that the main obstacles totheir endeavors are lack of knowledge, insufficienttraining, and failures of process.
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HRM
HRM is seen by practitioners in the field as a moreinnovative view of workplace management than thetraditional approach. Its techniques force themanagers of an enterprise to express their goals withspecificity so that they can be understood andundertaken by the workforce, and to provide theresources needed for them to successfullyaccomplish their assignments. As such, HRMtechniques, when properly practiced, are expressive
of the goals and operating practices of the overallenterprise. HRM is also seen by many to have a keyrole in risk reduction within organizations.
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HRM (Definitions) Synonyms such as personnel managementare often used in a
more restricted sense to describe activities that are necessary inthe recruiting of a workforce, providing its members with payrolland benefits, and administrating their work-life needs. So if wemove to actual definitions,
Torrington and Hall (1987) define personnel management asbeing:
a series of activities which: first enable working people and theiremploying organisations to agree about the objectives and natureof their working relationship and, secondly, ensures that theagreement is fulfilled.
While Miller (1987) suggests that HRM relates to:
".......those decisions and actions which concern the managementof employees at all levels in the business and which are relatedto the implementation of strategies directed towards creating andsustaining competitive advantage.
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HRM (Academic Theory)
One widely used scheme to describe the role of HRM,developed by Dave Ulrich defines 4 fields for the HRMfunction:
Strategic business partner Change management
Employee champion Administration
However, many HR functions these days struggle to getbeyond the roles of administration and employeechampion, and are seen rather as reactive than
strategically proactive partners for the top management.In addition, HR organizations also have the difficulty inproving how their activities and processes add value tothe company. Only in the recent years HR scholars andHR professionals are focusing to develop models thatcan measure if HR adds value.
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HRM (Business Practice)
Business practice
Human resources management comprises severalprocesses. Together they are supposed to achieve theabove mentioned goal. These processes can beperformed in an HR department, but some tasks can
also be outsourced or performed by line-managers orother departments. When effectively integrated theyprovide significant economic benefit to the company.
Workforce planning
Recruitment (sometimes separated into attraction and
selection) Induction, Orientation and Onboarding
Skills management
http://en.wikipedia.org/wiki/Workforce_planninghttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wiktionary.org/wiki/inductionhttp://en.wiktionary.org/wiki/orientationhttp://en.wikipedia.org/wiki/Onboardinghttp://en.wikipedia.org/wiki/Skills_managementhttp://en.wikipedia.org/wiki/Skills_managementhttp://en.wikipedia.org/wiki/Onboardinghttp://en.wiktionary.org/wiki/orientationhttp://en.wiktionary.org/wiki/inductionhttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Workforce_planning -
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Training and development
Personnel administration
Compensation in wage orsalary
Time management
Travel management (sometimes assigned to accounting ratherthan HRM)
Payroll (sometimes assigned to accounting rather than HRM)
Employee benefits administration
Personnel cost planning
Performance appraisal
http://en.wikipedia.org/wiki/Training_and_developmenthttp://en.wikipedia.org/wiki/Wagehttp://en.wikipedia.org/wiki/Salaryhttp://en.wikipedia.org/wiki/Time_managementhttp://en.wikipedia.org/wiki/Payrollhttp://en.wikipedia.org/wiki/Employee_benefitshttp://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Employee_benefitshttp://en.wikipedia.org/wiki/Payrollhttp://en.wikipedia.org/wiki/Time_managementhttp://en.wikipedia.org/wiki/Salaryhttp://en.wikipedia.org/wiki/Wagehttp://en.wikipedia.org/wiki/Training_and_development -
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HRM-Environment
FactorsFactors
EXTERNALEXTERNAL POLITICALPOLITICAL LEGALLEGAL
BUSINESS ENVIRONMENT BUSINESS ENVIRONMENT
GLOBALISATIONGLOBALISATION MERGERS & ACQUISITIONSMERGERS & ACQUISITIONS
DOWNSIZING /RIGHTSIZINGDOWNSIZING /RIGHTSIZING
NATIONAL ECONOMYNATIONAL ECONOMY DEMOGRAPHICDEMOGRAPHIC
Diverse workforceDiverse workforce Knowledge workforce / intellectual capitalKnowledge workforce / intellectual capital
More Women in workforceMore Women in workforce
Changing family structureChanging family structure
Contingent workforceContingent workforce
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TECHNOLOGICALTECHNOLOGICAL
Occupational ShiftOccupational Shift (manufacturing(manufacturing.. services).. services)
managing a virtual workforcemanaging a virtual workforce training & retraining employeestraining & retraining employees toto
manage obsolescence.manage obsolescence. providing work life balanceproviding work life balance Need based technology notNeed based technology not fadsfads
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Internal factorsInternal factors
UnionsUnions Strategy, LeadershipStrategy, Leadership
Organizational CultureOrganizational Culture
Professional BodiesProfessional Bodies
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The External Influences
The External Influences The HRM activities don't exist in isolation. Rather, they
are highly affected by what is occurring outside theorganization. It is important to recognize environmentalinfluences because any activity undertaken in each of
the HRM processes is directly, or indirectly, affected bythese external elements. For example, lets say thatwhen a company downsizes its workforce, does it layoffworkers by seniority? If so, are an inordinate number ofminority employees affected. Although any attempt toidentify specific influences may prove insufficient, onecan categorize them into four general areas - thedynamic environment, governmental legislation, laborunions and current management practice.
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The Dynamic Environment of HRM
It's been stated that the only thing that remains constantduring our lifetimes is change (and paying taxes!). We
must, therefore, prepare ourselves for events that have asignificant effect on our lives. HRM is no different. Manyevents help shape our field. Some of the more obviousones include-
globalization,
work-force diversity,
changing skill requirements,
corporate downsizing,
total quality management,
reengineering work processes,
decentralized work sites, and
employee involvement.
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The Dynamic Environment of HRM
GLOBALIZATION Globalization reflects theworldwide operations of many businesses today.One is no longer bound by continents or societalcultures.
WORK FORCE DIVERSITY includes the varied
backgrounds of employees that are present inthe companies today. Homogeneity ofemployees, and their needs, no longer exist. Thework today is more complex, requiringemployees with sophisticated skills. Withoutthem, many employees will lack the basicabilities to successfully perform in tomorrow'sorganizations.
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The Dynamic Environment of HRM
Corporate downsizing, total quality
management, and reengineeringall relate to one
another. As the world changed, U.S. companies had tocompete harder to maintain their leading industrial status.This meant doing things differently. In an effort to becomemore productive, organizations downsized to create greaterefficiency by eliminating certain jobs. Of the jobs and work
processes remaining, total quality management (TQM) looksat ways of improving job effectiveness. By continuouslyimproving on methods, techniques, processes, and the like,companies made constant efforts to better what they produce.But what if what they produce, even if it's better, still doesn'tsatisfy the customer? In those cases, reengineering is
necessary. Whereas TQM looks at new and improved ways ofproducing goods and services, reengineering looks at startingthe processes over again from scratch. That is, instead ofimproving on an existing product, the organization wouldanalyze what should be done and how they should do it.Searching for answers would not be constrained by current
business practices.
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The Dynamic Environment of HRM
Decentralized work sites are quickly becoming partof many organizations. With the technologies that areavailable (personal computers, fax machines, modems,etc.), work that was once done on the company
premises may now be more cost-effectively handled atthe employee's home. Lastly,
Employee involvement looks at how employees' worklives are changing. Involved employees now have morecontrol over their jobs. Certain activities, like goal setting,were once the sole responsibility of managers. Withemployee involvement, such an action today permitsparticipation.
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Governmental Legislation Many employees today wishing to take several
weeks of unpaid leave to be with their newbornchildren, and return to their previous job without
any loss of seniority, have an easier time makingthe request. Although some employers may seesuch an application as negatively affecting theworkflow, government legislation has given
employees the right to take this leave. Lawssupporting this and other employer actions areimportant to the HRM process.
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Legal Compliances
Shops & Establishments Registration & Compliance
Registration &Compliance under the Factories Act
Registration & Compliance under Provident Fund Act
Registration and Compliance under the ESI Act
Compliance under Minimum Wages Act
Compliance under the Gratuity Act
Compliance under the Payment of Bonus Act
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I.I. ObjectivesObjectives
A. CompetitiveA. Competitive
advantage.advantage.
B. Changing trends.B. Changing trends.
C. Importance ofC. Importance of
measurement.measurement.
HRM in a Changing Environment
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II. OverviewII. OverviewA. Functions of HRMA. Functions of HRM
B. HRM is about the peopleB. HRM is about the people
who perform its activities.who perform its activities.
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II. Overview cont...II. Overview cont...
C. Most effective HRMC. Most effective HRMprogramsprograms
1. Not typical.1. Not typical.2. HR is a major2. HR is a major
contributor.contributor.
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II. Overview cont...II. Overview cont...
D. Status of HRM isD. Status of HRM is
improving.improving.
1. More Professional1. More Professional
2. Bigger budgets2. Bigger budgets
3. Senior3. Seniormanagementmanagement
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III. HRM TrendsIII. HRM Trends
A. Trend 1: productivityA. Trend 1: productivity
B. Trend 2: flexibilityB. Trend 2: flexibility
C. Trend 3: internationalC. Trend 3: international
D. Trend 4: litigationD. Trend 4: litigation
E. Trend 5: workforce.E. Trend 5: workforce.
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IV. HRM MeasurementIV. HRM Measurement
A. The value of HRMA. The value of HRM
functions.functions.
B. measurement canB. measurement can
reduce cost.reduce cost.
C. which HRM practicesC. which HRM practiceswork.work.
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Management by Measurement
System Management by measurement system
ensuring all functional business units subscribeto guidelines for sound, strategic measurement criteria to measure
performance (e.g., individual, team, unit) quantity, quality, timeliness, cost-effectiveness, effects on
others
productivity
customer satisfaction
absenteeism
turnover/retention/tenure/intentions to stay/leave
employee theft
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Management byMeasurement System
criteria to measure (continued)
violence in the workplace
job stress (e.g., role conflict, ambiguity)
job satisfaction/motivation/attitudes/commitment creativity
perceived fairness (procedural, interactional)
error rates
accidents, health-related variables (worker stress,
injuries)
organizational citizenship behavior
HRM F ti
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HRM Functions
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The Human Resource System
R
etain
i
ng
good
staff
Recruit m
ent
Process
Handli
n
g
proble
ms
Termination of employement
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Manage vendors, suppliers,budgets, and HR systems
Handle employeestransactions andenquiries
Develop and deliver
programmes that enhance theorganisations ability toattract, develop and retainsuperior performers
Align HR activities and programmeswith the strategic direction andbusiness needs of the organisation
TodayToday FutureFuture
Administration
Transactions
Performance
Enhancement
Strategy
40%
30%
25%
5%
% Time, Effort,
Cost
20%
20%
20%
Strategy
Administration
Performance
Enhancement
40%
Transactions
Source: Hay/McBer & Company, presented by Lyle M. Spencer,Jr.,PhD
The Changing Face of HRHR Transaction and Administration functions are being enabled
through leading edge e-HR solutions
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HRIS, INTERNET,
INTRANETS &
EXTRANETS
Performance appraisal,
including 360O feedback
Widespread
electronicsystems
Enhanced distribution
of HR policy,
news, information
Internet
recruitmentBetter internal
communication
Maintenance
of HR records
On-line training
& development
Multi-site
collaborative work
teams, electronically
linked
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Considered to be the most important aspect of
management
Attitudes and abilities of staff have a crucial
impact on the visitors experience
Labour costs are likely to be the largest single
items on the attractions budget
Human Resource Management in
Tourism
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Tourism industry suffers from bad reputation in HRM
High turnover of staff
Seasonality of demand
Poor status of jobs
Lack of career structures
Unusually demanding jobs
lack of management expertise Lack of widely recognized qualification
and training schemes
Problems of HRM at visitor attractions
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Problems ofpublic sectorattractions are often in direct
contrast to the problems mentioned before
Low turnover of staff
Inflexible working practices
Fixed-wage rages
Standardized recruitment and disciplinary procedures
Problems of HRM at visitor attractions cont.
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Benefits for organisation of good HRM
Improves performance of staff
Provides a competitive advantage to the organization
Contented staff provide better service to customers,
encouraging repeat visitation
Reputation for good staff will lead to increased first-
time visitation
HRM plays a part in determining the success orfailure of any organisation.
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HUMAN RESOURCEPLANNING
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PRODUCTIVITY
ECONOMIC
DEVELOPMENT
GROWTH
EFFECTIVE
U
TI
L
I
Z
AT
I
O
N
OF
HUMAN
CAPABILITY
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Human Resource Planning
Effective planning of HR is essential tomatch the requirements of the job with the
individual
Right resources at the right time to meetthe future organizational needs is critical
A comprehensive and meticulous HRP
process can ensure sustained growth of anorganization
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Human Resource Planning Diversification or expansion, employee promotion
or changes in human resource necessitateseffective HRP
Organizational plans, goals, and strategies also
needs effective HRP Success in business is dependent on being able
to react quickly to opportunities
Organizations must have accurate, rapid access
to information about both supply of and demandfor HR
rgan za ona e- yc e ages
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rgan za ona e yc e agesHR Activities
LIFE-CYCLESTAGE STAFFING COMPENSATION
TRAINING ANDDEVELOPMENT
LABOR /EMPLOYEERELATIONS
Introduction Attract besttechnical andprofessionaltalent
Meet or exceedlabor market ratesto attract neededtalent
Define future skillrequirements andbegin establishingcareer ladders
Set basicemployee-relationsphilosophy oforganization
Growth Recruit adequatenumbers and mixof qualifiedworkers. Planmanagementsuccession.Manage rapidinternal labourmarketmovements
Meet externalmarket butconsider internalequity effects.Establish formalcompensationstructures
Mold effectivemanagementteam throughmanagementdevelopment and
organizationaldevelopment
Maintainlabour peace,employeemotivation &morale
rgan za ona e- yc e ages an
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rgan za ona e yc e ages anHR Activities
LIFE-CYCLESTAGE STAFFING COMPENSATION
TRAINING ANDDEVELOPMENT
LABOR /EMPLOYEERELATIONS
Maturity Encourage sufficientturnover to minimizelayoffs and providenew openings.Encourage mobility asreorganizations shiftjobs around
Controlcompensation costs
Maintainflexibility andskills of anaging
workforce
Control labourcosts &maintain labourpeace. Improveproductivity
Decline Plan andimplementworkforce
reductions andreallocations,downsizing andoutplacement mayoccur during thisstage
Implementtighter cost
control
Implementretraining and
careerconsultingservices
Improveproductivity andachieve flexibility
in work rules.Negotiate jobsecurity andemployment-adjustmentpolicies
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Human Resource Planning
HRP is both a process and a set of plans
a process by which management of an
organization determines its future HR
requirements
a plan to fill the future HR requirements frominternal and external sources
Assessment of human resource
requirements in advance vis a visorganizational objectives, production
schedules, and demand fluctuations
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Human Resource Planning
The process of determining human resourcerequirements and the means of meeting those
requirements in order to carry out the integrated
plan of the organization Coleman
Relates toestablishing job specifications
determining the number of personnel
required developing the sources of human resource
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Internal vs. External
System of matching the availableresources, either externally or internally,with the expected organizational demandover a period of time
Internal Resources employees who are already in theorganization
External Resources
personnel who have to be recruitedfrom outside
Obj ti f HRP
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Objectives of HRP:-Forecasting HR Requirements
maintain the required quantity & quality of HR
turnover/attrition rates
Effective Management of Change
coping with changes in market conditions, technology,
govt. regulations et alRealizing Organizational Goals
expansion, diversification
Promoting Employees
database on skill repertoire
Effective Utilization of HR
surplus/unutilized employees vis a vis downsizing
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Emergence of HRP
Early HRP was top down, short range 1970s: manpower planning
1990s: aligning HR strategy with
corporate strategy
attention to individual career
planning
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Effective HRP
An effective HRP
closes the gap between the current
situation and a desired situation inthe context of an organizations
strategy
helps cope with change and achieveorganizational goals
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HR Planning Levels
HRP is carried out at differentorganizational levels to meet HRrequirements at those levels
Flow of communication in HRP is both
ways Top to bottom
Bottom to top
The levels are Corporate level planning
Intermediate level planning
Operational level planning
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HR Planning Levels Corporate-level Planning
Culture and mission of the organization Macro-level: changes in market conditions, technology, strategicplan, etc
Identification of broad policy issues; employment, welfare,development policies
Intermediate-level Planning
SBU level, based on corporate-level HR Plan Determining recruitment, retaining, laying off
Operational-level Planning Operations level plan Training & development, recruitment etc
Planning Short-term Activities Management of day-to-day activities Ensure success or failure of corporate plans Grievance handling, etc
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Environmental Scanning
impact of strategy/goals on diff. units
Forecastingquantity & quality of personnel needed
Involving Line Managersdetermining HR needs of departments
Analysis of Supplymatching current HR supply & reqmnt
H
R
P
P
R
O
C
ES
SPlan of Action
recruitment, selection, training, et al
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Human
Resource
Planning
Predict demand
Forecast internal supply Forecast external supply
Assess trends in
External labour markets Current employees Future organizational plans
General economic trends
Compare future demand
and internal supply
Plan for dealing with predict-ed shortfalls or overstaffing
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Situation Analysis Interaction of HRM and strategic planning
The strategic plan must adapt to environmentalcircumstances
HRM is one of the mechanisms of adaptation
process Example: rapid technological changes can force
an organization to quickly identify and hireemployees with new skills
Without HR plan to support the recruitment &selection functions it would be impossible tomove fast to stay competitive
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Forecasting
Estimating not only how many but alsowhat kinds of employees will be needed
Yields advance estimates or calculations
of the organizations staffingrequirements
Apart from quantitative tools, a great
deal of human judgement is involved Incredibly difficult tasks, especially in
rapidly changing environment
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Forecasting Techniques
Qualitative TechniquesExpert estimate
Nominal Group Technique (NGT)
Delphi Technique Quantitative Techniques
Regression Analysis
Productivity Ratios
Personnel Ratios
Time Series Analysis
The Nominal Group
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The Nominal GroupTechniqueA small group of 4-5 people gathers around a table. Leader
identifies judgment issue and gives participants procedural
instructions
Participants write down all ideas that occur to them, keeping
their lists private at this point. Creativity is encouraged during
this phase
Leader asks each participant to present ideas and writes themon a blackboard or flipchart, continuing until all ideas have been
recorded
Participants discuss each others ideas, clarifying, expanding,
and evaluating them as a group
Participants rank ideas privately in their own personal order and
preference
The idea that ranks highest among the participants is adopted
as the groups judgment
The Delphi Technique
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The Delphi TechniqueLeader identifies judgment issues and develops questionnaire
Prospective participants are identified and asked to cooperate
Leaders send questionnaire to willing participants, who record
their judgments and recommendations and return the
questionnaire
Leaders compiles summaries and reproduces participantsresponses
Leader sends the compiled list of judgment to all participants
Participants comment on each others ideas and propose a final
judgment
Leader looks
for consensus
Leader accepts consensus judgment as groups choice
Statistical Techniq es
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Statistical TechniquesNameName
Regression analysis
Productivity ratios
DescriptionDescription
Past levels of various work load indicators, such as sales,production levels, are examined for statistical relationships
with staffing levels. Where sufficiently strong relationships
are found, a regression (or multiple regression) model is
derived. Forecasted levels of the retained indicator(s) are
entered into the resulting model and used to calculate the
associated level of human resource requirements.
Historical data are used to examine past levels of a
productivity index (P):
P = Work load / Number of People
Where constant, or systematic, relationships are found,
human resource requirements can be computed by diving
predicted work loads by P.
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Statistical Techniques
NameNamePersonnel ratios
Time series analysis
DescriptionDescriptionPast personnel data are examined to determine historical
relationships among the employees in various jobs or job
categories. Regression analysis or productivity ratios are
then used to project either total or key-group human
resource requirements, and personnel ratios are used to
allocated total requirements to various job categories or toestimate for non-key groups.
Past staffing levels (instead of work load indicators) are
used to project future human resource requirements. Past
staffing levels are examined to isolate and cyclical
variation, long-tem terms, and random movement. Long-
term trends are then extrapolated or projected using a
moving average, exponential smoothing, or regression
technique.
A l i C t S l
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Analysing Current Supply How many and what kinds of employees do I currently have in terms of the skills and training
necessary for the future?
Are resources available internally or externally to fill those needs? Internal
skills inventory
succession planning
promotability
External
availability of qualified labor; surplus? shortage?
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Analysing Current Supply The Skills Inventory: tool to assess current
supply of employees in terms of
skills
abilities
experiences
training
If the current inventory exceeds the future
requirements and natural attrition cannotbring down the resources to match the future
requirements?
Employee Replacement Chart
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Employee Replacement Chartfor Succession Planning
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Managing Employee
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Managing EmployeeSurpluses
Source: Compliments of Dan Ward, GTE Corporation
Managing Employee
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a ag g p oyeeShortages
Source: Compliments of Dan Ward, GTE Corporation
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HRIS
Human Resource Information System ismore than just a computerized skillsinventory
An HRIS is an integrated approach to analysing
acquiring
storing controlling the flow of information
throughout an organization
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HRIS
Highly developed HRIS systems canincrease efficiency and response time ofHRM activities
The system might contain a programmefor tracking applicants, a skills inventory, acareer planning programme, employeeservice programmes
One of the most common uses of anHRIS is in recruitment and tracking ofapplicants
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Job analysis
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Job analysisAn assessment of the kinds of skills,
knowledge, and abilities needed to
successfully perform each job in an
organization
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Job Analysis
Job analysis is the systematic collection
and recording of information concerning:
the purpose of a job,
its major duties,
the conditions under which it is performed,
the contact with others that performance of
the job requires, and the knowledge, skills, and abilities needed for
performing the job effectively.
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JOB ANALYSIS OUTCOMES
Job description
Job specification
Job evaluation
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Job Analysis Components
Job description
A written statement of what a job holder does, how it
is done, and why it is done
Tasks, duties and responsibilities that the job entails
Job specification
A statement of the minimum acceptable qualifications
that an incumbent must possess to perform a given
job successfully
Knowledge, skills, and abilities required of the job holder
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JOB DESCRIPTION
Focus on the job Written statement
What is done
How
Why
Includes Job content
Environment
Conditions ofemployment
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TYPICAL JOB DESCRIPTION FORMATS
Job title
Duties
Distinguishing
characteristics Authority
Responsibilities
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JOB DESCRIPTIONS ARE USEFUL FOR
Recruiters
New hires
Performance
appraisals Identifying essential
job functions
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JOB SPECIFICATION
Focus on the personwho does the job
Identifies minimumincumbent
qualifications Knowledge, skills,
education,experience,certification, abilities
Personality
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JOB EVALUATION
Establish job
comparability
Compensation
Relative value
Competitive analysis
IT TAKES GOOD JOB ANALYSIS TO
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IT TAKES GOOD JOB ANALYSIS TO
PERFORM
THESE HRFUNCTIONS WELL:
Recruiting
Selection Strategic human
resource planning
Employee training
AND.
MORE HR FUNCTIONS NEED JOB
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MORE HR FUNCTIONS NEED JOB
ANALYSIS
Employeedevelopment
Career development
Performanceappraisal
Compensation
Safety and health
Labor relations
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The Multifaceted Nature of the Job Analysis
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82
Ajob analysis may be based on informationobtained through direct observation, interviews,diaries or questionnaires.
Ajob description is a statement of the duties,
working conditions, and other significantrequirements associated with a particular job.
Ajob specification is a statement of the skills,abilities, education and previous workexperience that are required to perform aparticular job.
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83
Methods of Job Analysis
For existing jobs, interviews withemployees
Interviews with supervisors
Observation
Combination, interviews & observation
Structured questionnaires Employee journals/logbooks
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Job Analysis
Unorganized data has little use.
Only concerned with facts.
Concerned only with the job, not the
worker.
Not job classification.
Required to determine job qualifications?
No, but planning is the key to success.
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Tools used
Books and Literature
Valid information on current job analysis and
studies.
Job analysis that are being implemented byother successful companies.
Past and present failures and successes.
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Tools cont..
Flow and Organizational Charts
Very helpful for showing past and current
information.
Show trends and similarities.
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Recruitment and Selection
R it t A d S l ti
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Recruitment And Selection
Recruitment
The process of locating, identifying, and
attracting capable applicants
Selection process The process of screening job applicants to
ensure that the most appropriate candidates
are hired
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Recruitment and Selection
We have specific objectives in recruiting andselecting:
Identifying the right people.
Reducing the range of differences inperformance from least effective tomost effective workforce.
Keeping turnover to a minimum.
R it t d S l ti
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Recruitment and Selection
How to achieve objectives: There is no magic answer.
Start with a good solid job description.
Do customer analysis.
Analyze competitors workforce.
Analyze our workforce.
Take info from these steps and compile a
profile on type of person we want.
R it t d S l ti
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Developing a pool of applicants:Job must be sufficiently attractive.
Then we go to many sources to recruit
such as:College placement services.
Trade media advertising.
Newspaper advertising.Employment services.
Recruitment and Selection
Recruitment and Selection
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Screening and final selection:
Comparison with our preferred
employee profile.Interviews to assess.
Impressions candidate makes.
Interest in job.
Personal characteristics.
Recruitment and Selection
Strategic
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Strategic
Recruiting
Stages
Typical Division of HR
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Typical Division of HR
Responsibilities
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Traditional Recruiting Sources
Internal searches
Advertisements
Employee referrals
Public employment agencies Private employment agencies
Campus placement
Temporary help services
Employee leasing and
independent contractors
Organizational Recruiting
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Organizational Recruiting
Activities
RecruitingRecruiting
ImageImage
RecruitingRecruitingPresencePresence
Training ofTraining of
RecruitersRecruiters
EffectiveEffectiveRecruitingRecruiting
Strategic Recruiting Decisions
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Strategic Recruiting Decisions
RecruitingRecruiting
Source Choices:Source Choices:
Internal vs.Internal vs.
ExternalExternal
RecruitingRecruiting
Source Choices:Source Choices:
Internal vs.Internal vs.
ExternalExternal
Organizational-Organizational-Based vs.Based vs.
OutsourcingOutsourcing
Organizational-Organizational-Based vs.Based vs.
OutsourcingOutsourcing
Regular vs.Regular vs.
Flexible StaffingFlexible Staffing
Regular vs.Regular vs.
Flexible StaffingFlexible Staffing
Recruiting andRecruiting and
EEO/DiversityEEO/Diversity
ConsiderationsConsiderations
Recruiting andRecruiting and
EEO/DiversityEEO/Diversity
ConsiderationsConsiderations
StrategicStrategic
RecruitingRecruiting
StrategicStrategic
RecruitingRecruiting
EEO and Diversity Considerations
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EEO and Diversity Considerations
Advantages and Disadvantages of
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Advantages and Disadvantages of
Internal and External Recruiting Sources
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Internal Recruiting Methods
Internet Recruiting Methods
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Internet Recruiting Methods
Job BoardsJob Boards
Professional/Professional/Career Web SitesCareer Web Sites
Employer Web SitesEmployer Web Sites
InternetInternet
RecruitingRecruitingMethodsMethods
Internet Recruiting
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Internet Recruiting
Advantages Recruiting cost
savings
Recruiting time
savings
Expanded pool of
applicants
Morale building for
current employees
Disadvantages More unqualified
applicants
Additional work for HR
staff members
Many applicants are
not seriously seeking
employment
Access limited or
unavailable to some
applicants
External Recruiting
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External Recruiting
Employment AgenciesEmployment Agenciesand Search Firmsand Search Firms
College andCollege andUniversityUniversityRecruitingRecruiting
High Schools andHigh Schools andTechnical SchoolsTechnical Schools
LaborLaborUnionsUnions
ExternalExternalRecruitingRecruiting
SourcesSources
Media SourcesMedia Sourcesand Job Fairsand Job Fairs
CompetitiveCompetitiveSourcesSources
What to Include in an Effective
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What to Include in an Effective
Recruiting Ad
Evaluating Recruiting
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Evaluating Recruiting
Evaluating RecruitingEvaluating Recruiting
EffortsEfforts
EvaluatingEvaluating
TimeTime
Required toRequired to
Fill OpeningsFill Openings
EvaluatingEvaluating
RecruitingRecruiting
Costs andCosts and
BenefitsBenefits
EvaluatingEvaluating
RecruitingRecruiting
Quality andQuality and
QuantityQuantity
Recruiting Evaluation
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Recruiting Evaluation General Areas for Evaluating Recruiting
Quantity of applicants
EEO goals met
Quality of applicants
Yield ratios A comparison of the number of applicants at onestage of the recruiting process to the number at thenext stage.
Selection rate The percentage hired from a given group of
candidates
Recruiting Evaluation Pyramid
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Recruiting Evaluation Pyramid
Selection and Placement
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Selection and Placement
SelectionThe process of choosing individuals who have
needed qualities to fill jobs in an organization.
Organizations need qualified employees tosucceed
Good training will not make up for bad selection.
Hire hard, manage easy.
HRs Role in Selection and
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Placement Reasons for centralizing selection
Easier to have applicants in one place.
Contact with outside applicants is easier.
Managers can concentrate on operating
responsibilities rather than the selection
process.
Selection costs are lower with no duplicatedefforts.
Selection Methods
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Selection Methods Yield ratios
A comparison of the number of applicants at one
stage of the recruiting process to the number at the
next stage
Selection rate
Percentage hired from a given group of candidates
Acceptance Rate
Percentage of rejected job offers
Success Base Rate Comparing percentage rate of past applicants who
were good employees to that of current employees.
Selection Terms
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Selection Terms
Reliability The degree to which a selection device measures the
same thing consistently (stability)
Example: an individual consistently achieves nearly identical
scores on the same exam.
Validity
The proven relationship between a selection device
and some relevant criterion (a measure of job
success) Example: superior job performance and high employment test
scores
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The case of Protection Royale 1
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113
y The focus is on the Financial Consultancy Division of this insurance company
There had been very low turnover among the sales consultants whose job had been tomarket the companys insurance products to insurance brokers.
Recruitment was by replacement:
advertise in the trade press
use specialist recruitment agencies
recommendations from existing staff
shortlist from applications
interviews, roles plays, psychometric testing
references
But the job became harder as products diversified and become more complex
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Protection Royale ... 3
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115
Furthermore, legislation introduced in 1994
required financial sales practitioners to holdvarious qualifications
Therefore there was a big reduction ineligible people within the external labourmarket.
Existing staff were deemed either suitable,unsuitable or possible; many left
Line managers tried to head-huntreplacements, but failed.
A crisis became apparent
y
Protection Royale ... 4
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116
Recruitment champions were appointed Line managers and HR specialists were givenperformance indicators relating to recruitmentobjectives
A new search for direct recruits and fortrainees.
A matrix of selection methods (e.g.
Application form, testing of job knowledge/skills/attitudes, psychometric testing,interviews, simulations, presentations,references) and competencies.
Protection Royale ... 4
Protection Royale... 5
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117
National advertising
7 day phone-in interviews, followed by screeninginterviews
Assessment centre based selection
Appointment of an induction manager
Thorough procedural knowledge training for all thoseinvolved in the recruitment and selection process.
Protection Royale... 5
Recruitment & Selection flowing downf C t St t
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118
from Corporate Strategy Here the objective of recruitment & section would be
to recruit people who will enhance the org.s capacityto deliver its corporate strategy.
E.g. for an INNOVATION corp. strategy, the companywould seek to recruit people with:
highly innovative behaviour preference/ability for co-operative behaviour relatively high risk taking tolerant of uncertainty
moderate concern for quality of output balanced orientation toward process and results longer-term focus
For a QUALITY ENHANCEMENT or COSTREDUCTION corp. strategies, the patterns would be
different
Recruitment & Selection driving
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119
There is a business case for building more
DIVERSITY into organisations
enhances creative capability
greater flexibility in global markets
more widely equipped to face unpredictable
challenges
Recruitment & Selection drivingCorporate Strategy
Recruitment & Selection Flowing down
from Organisation Structure
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120
from Organisation Structure
Behavioursrequired in
managers in
Organic
Organisations: networking
team building
information retrieval innovative problem
solving
Mgt competencies required inOrganic organisations
info search
concept formation
conceptual flexibility
interpersonal search
managing interaction
developmental orientation
self confidence Proactiveness
achievement orientation
(These may be needed by non-managers too)
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Training and Development
The Workplace Skills Strategy
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Human capital is increasingly regardedas one of the major drivers of
productivity, economic growth andcompetitive advantage. Recognizing the importance of human
capital, the training manpower setsout to generate:
A skilled, adaptable, motivated andresilient workforce
A flexible, efficient labour market
A responsive strategy to meet employersneeds for skilled workers
A learned employee can retain customersand increase business & market sharethro proper behavior and good publicrelations
As a demand-driven
approach to human resource
and skills development, the
Training will build and
strengthen relationships with
and among workplacepartners and better engage
employers, unions to
respond to the challenges of
workplace skills
development.
An organization is only as good as its
employees
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employees.
In order for an organization to produce professionalcareer minded employees an investment has to be
made.
What type of investment must an employer
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offer employees to gain this?
An investment in training and education is a sure payoff.
Importance of Training
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Managers: Importance to overall business strategy
Labour leaders: Importance to collective bargainingissues
5%
22%
44%
30%
9%
29%
37%
25%
0%
5%
10%
15%
20%
25%
30%35%
40%
45%
50%
not/s lightly important important very im portant crucial
managers
labour
Examples of Training Investments
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Industry and government in the United Statesspend approximately $90 billion each year onemployee training and education.
Average Japanese companies spends about 6%of budget on training.
Study of major automobile manufactures foundU. S automakers spend about 40 hourstraining new employees compared to 300hours for Japanese automakers.
Motorolas CEO required all divisions to spendat least 2% of budget on training. Over next 7years, profits increased 47% and it wasestimated that each $1.00 in training yielded$30.00 in return.
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TRAINING ACTIVITIES SHOULD BE
ALIGNED WITH OVERALLOBJECTIVE OF THE
ORGANISATION,
WITH A MEANINGFUL EMPHASIS ONVALUE ADDITION TO OUR
HUMAN RESOURCES.
Factors to consider
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Factors to consider
Training to benefit organisation Training to benefit employees
Training to benefit the industry
Provide a good return on investment?
Investment
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To invest properly, the employer must provide training asone of the needed tools for employees to get the job
done.
Why Training?
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The sharing of information through training is our mostvaluable tool to develop our most valuable assetour
employees.
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TRAININGS SHOULD AIM AT
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EMPOWERING THE EMPLOYEES
INCREASING PRODUCTIVITY
MAKING THE PROCESSES MORE
EFFICENT AND EFFECTIVEso as to
ENSURE ULTIMATE
CUSTOMER SATISFACTIONIMPROVE THE OVERALL
PERFORMANCE OF THE ORGANISATION.
Importance of Training contd
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1. Respond to technology changes affectingjob requirements.
2. Respond to organizational restructuring.
3. Adapt to increased diversity of theworkforce.
4. Support career development.
5. Fulfill employee need for growth.
Importance of Training and Development
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Maintain skill levels Advance skill and knowledge to improve
Performance (efficiency)
Service delivery (error rate)
Profitability (productivity, manpower)
Integrate new technologies into work
Establish standards for work practices
Benefits of Training - Individuals
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Do job more efficiently learn newmethods
Professional approach to work, engaged
in best practice routines Personal satisfaction felt valued
Recognised qualification to add to CV
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Benefits of Training-a summary
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Improved customer service and public relations Fewer complaints
Better morale and attitudes
Less turnover and absenteeism
More involved and caring employees
Proactive vs. reactive employees
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MANAGEMENTs ONE OF THEMOST IMPORTANT FUNCTIONS IS
TO TRAIN PEOPLE FOR THEIR
JOBS.
Then why is training often neglected?
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Urgency of need Training time
Costs
Employee turnover Short-term worker
Diversity of worker
Kinds of jobs (simple-complex)
Not knowing exactly what you
want your people to do and how
Attitudes to training
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g
Individual: How is that related to
what I do?
Im good at my job and
anyway, I have no time I suppose thats my
weekends shot for
months!
Are they trying to get ridof me?
Employer: How can I be sure the
organisation will benefit?
Training is so expensive how will I know if it has been
effective? Will this effect the goal of
developing and implementingstandards and protocols forthe organisation?
If I train them, theyll leave
Our front-line employees are often good
will ambassadors
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will ambassadors.
Yet they are the ones who hold the most thankless job.Their role and their understanding of their role is the vital
key towards their development and their ability to provide
excellent customer service.
Importance of TrainingTeaching people How to do Their
J b
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Jobs:
There are three kinds oftraining: Job Instruction,Retraining, and Orientation.
The big sister/ big brother
system is when a old handdominates a newcomer.
When good training is absentthere is likely to be an
atmosphere of tension, crisis,and conflict because nobodyknows what to do.
Training Process Model
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I. Needs
Assessment
II. Developing &
Conducting
Training
III. EvaluatingTraining
Developing a Unit Training Program
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This is taught in several sessions.
It should provide check points tomeasure progress.
Should include two elements:
1. Showing and telling the
employee what to do.2. Having the employee do it (right).
Location should be ambient.
Training materials should be the
same as used on the job.
Who will do the Training?
The magic apron method: people
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The magic apron method: people
train themselves the easiest ways to
get the job done.
The person that is leaving trains:
teaches shortcuts and ways of
breaking the rules. Big sister, big brother method:
passes on bad habits and may resent
new person as a competitor.
The logical person to train new
workers is The employer!
How employees learn the best:
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When they are actively involved in the
learning process-(to do this choose aappropriate teaching method).
Training is relevant and practical.
Training material is organized and
presented in chunks.
Training is in an informal, quiet, and
comfortable setting.
When they have a good trainer.
When they receive feedback on
performance.
When they are rewarded.
How do Employees Learn the
Best?
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Best?
Learning is theacquisition of skills,knowledge, or attitudes.
The adult learningtheory is a field ofresearch that examineshow adults learn. Anumber of the followingtips come from the adultleaning theory.
How do Employees Learn the Best?
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Tell me and I forget, teach
me and I remember, involve
me and I learn
- Benjamin Franklin
Kinds of training
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Informal on the job, phone a friend Formal attendance or completion
Formal certified, vindicated
Evidence of Return on Investment
Must be planned
Allows for customisation, relates to workplace
standards
Job Instruction Training (JIT)
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g ( )
Also called on the job training. Consists of 4 steps:
1. Prepare the learner
2. Demonstrate the task3. Have the worker do thetask
4. Follow through: put theworker on the job, correctingand supporting as nessicary.
Classroom Training Skills Be aware of appropriate body
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Be aware of appropriate body
language and speech.
Watch how you talk to
employees. Covey respect and
appreciation.
Handle problem behaviors in aneffective manner.
Avoid time wasters.
Facilitate employee participationand discussion.
Use visual aids to avoid
constantly referring to notes.
DELIVERING CUSTOMISED TRAININGSUCCESSFULLY
DELIVERING CUSTOMISED TRAININGSUCCESSFULLY
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MAKE IT FUN RULES FOR LEARNING:
1. ASK QUESTIONS
The only dumb questions are the ones you dontask!
2. MAKE MISTAKES Training is a great place to make mistakes. The you
wont make as many at work in the live environment!
DELIVERING CUSTOMISED TRAININGSUCCESSFULLY
DELIVERING CUSTOMISED TRAININGSUCCESSFULLY
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MAKE IT FUN RULES FOR LEARNING Continued
3. HAVE FUN
This rule is very important
4. CHEAT Watch how other people do things or yell for help
3. Types of Training
Types of Training
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1. Skills Training.
2. Retraining.
3. Cross-
Functional.
4. Team Training.
5. CreativityTraining.
6. Literacy Training.7. DiversityTraining.
8. CustomerService.
1. SKILLS TRAINING
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Focus on job knowledgeand skill for:
Instructing new hires.
Overcoming performance
deficits of the workforce.
2. Retraining
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g
Maintaining workerknowledge and skill as job
requirements change dueto:
Technological innovation
Organizationalrestructuring
3. Cross-Functional Training
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Training employees toperform a wider varietyof tasks in order to gain:
Flexibility in workscheduling.
Improved coordination.
4. Team Training
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g
Training self-directedteams with regard to:
Management skills.Coordination skills.
Cross-functional skills.
5. Creativity Training
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Using innovativelearning
techniques toenhance employeeability to spawn
new ideas andnew approaches.
6. Literacy Training
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Improving basic skills ofthe workforce such asmathematics, reading,
writing, and effectiveemployee behaviorssuch as punctuality,
responsibility,cooperation,etc.
7. Diversity Training
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Instituting a variety ofprograms to instillawareness, tolerance,respect, and acceptanceof persons of differentrace, gender, etc. anddifferent backgrounds.
8. Customer Service Training
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g
Training to improvecommunication, betterresponse to customer
needs, and ways toenhance customersatisfaction.
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3. Computer Assisted InstructionPROS CONS
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Efficient instruction.
Considers individualdifferences.
Allows scheduling flexibility.
Allows active practice forsome tasks.
Allows learner control.
Provides immediatefeedback to tasks.
Limited in presenting theories
and principles. Limited discussion.
Transfer depends onparticular job. (Good forcomputer work.)
High development cost (40-60hours per hour of instructionat approx Rs. 10,000 perhour.)
5. Simulation
PROS CONS
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Provides realism.
Allows active practice.
Provides immediatefeedback.
Allows exposure tohazardous events.
High transfer to job.
No job interference.
Lowers trainee stress.
Cannot cover all jobaspects.
Limited number oftrainees.
Can be very expensive
(for example, aircraftsimulators and virtualreality simulators).
PROS CONS
6. On-The-Job TrainingPROS CONS
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Provides realism. Allows activepractice.
Providesimmediatefeedback.
High motivation. High transfer to
job. Lowers training
cost.
Disruptions tooperations.
May damageequipment.
Inconsistent acrossdepartments.
Inadequate focus onunderlying principles.
Lack of systematicfeedback.
Transfer of improperprocedures.
Trainee stress.
CONS
Overcoming Obstacles to
Learning
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Reduce fearwith a positive approach(convey confidence in the worker).
Increase motivation: emphasize
whatever is of value to the learner,
make the program form a series ofsmall successes, build in incentives
and rewards.
Limited abilities: adjust teaching to
learners level.
Laziness, indifference, resistance: May
mean a problem worker.
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Types of Evaluation Designs
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Train Measure
Post Test Only. Cannot tell if
there is a change in knowledgeor skill.
Measure Train Measure
Pre-test with Post-test. Detects achange, but cannot tell if training
was responsible.
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