Introduction to Human Resource Management

Human Resource Management at Work Human Resource Management (HRM)The process of managing human talent to achieve an organizations objective.Line and Staff AspectsLine Manager - A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organizations tasks.Staff Manager - A manager who assists and advises line managers.

Strategic Human Resource DevelopmentRecruitment & PlacementJob AnalysisHR Planning and RecruitingEmployee Testing and SelectionTraining & DevelopmentTrainingAppraising and Managing PerformanceManaging Careers and Fair TreatmentCompensationEstablishing Strategic Pay PlansPay for performance and Financial IncentivesBenefits and ServicesEmployee Security and SafetyLabor Relations and Collective BargainingEmployee Safety and HealthInternational HRM

STRATEGIC PLANNING & STRATEGIC TRENDSTHE THREE LEVELS OF STRATEGYi) Corporate level strategyii) Business level competitive strategyiii) Functional StrategiesTHE STRATEGIC PLANNING PROCESSSWOT ANALYSISBASIC STRATEGIC TRENDSGlobalizationTechnological AdvancesChanging Nature of WorkWorkforce Demographics Age , Diversity , Gender , Education

COMPETITIVE CHALLENGES & HRMGLOBALIZATIONTECHNOLOGYMANAGING CHANGEMANAGING TALENT OR HUMAN CAPITALRESPONDING TO THE MARKETTQM, SIX SIGMA, BUSINESS PROCESS REENGINERINGCONTAINING COSTSDOWNSIZINGOUTSOURCING, OFFSHORING AND EMPLOYEE LEASINGPRODUCTIVITY ENHANCEMENT

JOB ANALYSISJob TitlesAlternative titlesTasks / ActivitiesEquipment used Tools usedMaterials usedReports and records made

Relation of the job to other jobEducationExperiencePhysical effort requiredMental effort requiredVisual Attention requiredResponsibility

Job Analysis : Job Analysis is the process by means of which a description is developed of the present method and procedures of doing a job , physical conditions in which the job is done , relation of job to other jobs and other conditions of employment.

The various points on which information may be gathered for job analysis are as follows:

THE PROCESS OF JOB ANALYSIS

JOB DATATasksDutiesResponsiblitiesPerformance standardsKnowledge requiredSkills requiredExperience neededJob contextEquipment used

SOURCES OF DATAJob AnalystEmployeeSupervisor

METHODS OF COLLECTING DATAInterviewsQuestionairesObservationsRecordsDiaries

JOB DESCRIPTIONTasksDutiesResponsibilities

HUMAN RESOURCE FUNCTIONSRecruitmentSelectionTraining & developmentPerformance AppraisalCompensation management

JOB SPECIFICATIONSkill requirementsPhysical demandsKnowledge requirementsAbilities needed

Approaches to Job AnalysisFunctional Job Analysis Data , people and thingsPosition Analysis Questionnaire developed by Purdue UniversityCritical Incident MethodTask AnalysisRole Analysis HRIS and Job Analysis

JOB DESCRIPTIONJob description is a written statement that defines the duties, relationships and results expected of anyone in the job. It is an overall view of what is to be done in the job. Typically it includes

Job Title Location of job Division , department or sectionTitle of immediate supervisor Job Grade

Description of the Purpose of the Job Primary Responsibilities General Information related to the jobDetails of the equipment or tools used Special circumstances such as shifts or night work , overtime or weekend

Job SpecificationA job specification is a statement of the minimum acceptable competencies necessary to perform a job satisfactorily. Competencies can be divided into five main types: Knowledge Skills Abilities Orientation Experience

BASIS FOR JOB DESIGN

THEJOBOrganizational objectivesErgonomic considerationsBehavioral concernsIndustrial engineering

REDESIGNING JOBSJob Rotation The periodic shifting of an employee from one task to anotherJob Enlargement The process of job enlargement , also known as the horizontal loading of the job, aims to expand the workers job to include the tasks which were previously performed by other workersJob Enrichment The process of job enrichment accounts for adding more variety of tasks to be performed in addition to granting the worker more control over the job.

Personnel Planning and Recruiting

Forecasting Personnel NeedsYield PyramidCost per hireEvaluating Recruiting EffectivenessMeasuring Recruiting Effectiveness

Finding Internal CandidatesHiring from WithinJob PostingSuccession Planning (HRIS)Rehiring Former EmployeesAssessment CentrePerformance Appraisals

Finding External CandidatesSourcesEmployment Agencies Govt. & PrivateAdvertising Media , PR agencies

Temp Agencies & Alternate StaffingProfessional Associations & Labor UnionsHeadhuntingCollege RecruitingReferrals and Walk InsRecruiting on the Internet

Recruiting A More Diverse Workforce

Employee Testing and Selection

Why Careful Selection is Important

Functional Value of a Selection Technique

Face ValidityCriterionRelated ValidityContent ValidityConstruct ValidityValidityJob AnalysisSelecting predictorAdministering testCross Validation & RevalidationSelecting criterion

OTHER SELECTION TECHNIQUES

POLYGRAPH TESTINGGRAPHOLOGYMEDICAL EXAMINATIONSUBSTANCE ABUSE SCREENING

CREDIT REPORTS & BIOGRAPHICAL INFORMATION BANKSBACKGROUND INVESTIGATIONS & REF CHECKS

OTHER SELECTION TECHNIQUESSimulationsMiniature Job Training and EvaluationManagement Assessment CentersVideo-Based Situational TestingWORK SAMPLES

Interviewing Candidates

Basic Features of InterviewsSituational InterviewStress InterviewBehavioral InterviewJob-Related Interview

Interview AdministrationSelection InterviewsInterview ContentUnstructured or Nondirective InterviewInterview StructureStructured or Directive Interview

Administering the Interview

What Can Undermine An Interviews Usefulness?

How to Conduct a More Effective InterviewSuggestions:Prepare for the InterviewStructure Your InterviewEstablish RapportAsk QuestionsClose the InterviewReview the Interview

Strategic Human Resource Management

Strategic Planning

MISSION, VISION & VALUESEXTERNAL ANALYSISINTERNAL ANALYSISSTRATEGY FORMULATIONSTRATEGY IMPLEMENTATIONEVALUATIONCapture underlying philosophyEstablish foundation of cultureGuide ethical codes of conduct

Demographic trendsExternal supply of laborCompetitor benchmarking

Culture , competencies , compositionsForecast demand for employeesForecast supply of employees

Productivity and efficiencyQuality , service , speed , innovationExternal fit/ alignment and internal fit

Reconcile supply and demandDownsizing , layoffs , etc.HR practice : Staffing , training , rewards, etc.

Human capital metricsBalanced scorecard

1. MISSION , VISION AND VALUESMISSION The basic purpose of an organizationSTRATEGIC VISION A statement about where the company is going and what it can become in the future; clarifies the long term direction of the company and its strategic intentCORE VALUES The strong and enduring beliefs and principles that the company uses as a foundation for its decisions.

2.ENVIRONMENTAL ANALYSISEnvironmental Scanning Systematic monitoring of the major external forces influencing the organization

FIVE FORCES FRAMEWORK

3.INTERNAL ANALYSISTHE THREE CS- CULTURE, COMPETENCIES AND COMPOSITIONFORCASTING DEMAND AND SUPPLY OF EMPLOYEES

4.FORMULATING STRATEGYSWOT Analysis A comparison of strengths , weaknesses, opportunities and threats for strategy formulation purposesCORPORATE STRATEGY Growth and DiversificationMergers and AcquisitionsStrategic Alliances and Joint VenturesBUSINESS STRATEGYLow-Cost Strategy : Compete on Productivity and EfficiencyDifferentiation Strategy : Compete on Value AddedFUNCTIONAL STRATEGYExternal Fit / AlignmentInternal Fit / Alignment

5.STRATEGY IMPLEMENTATIONTHE 7 S MODEL

6.EVALUATION AND ASSESSMENTMeasuring Strategic AlignmentStrategy Mapping and the Balanced Score CardMeasuring Internal FitEnsuring Strategic Flexibility for the future

BALANCED SCORECARD

Training and Developing Employees

SYSTEMS MODEL OF TRAINING

PHASE I

NEEDS ASSESSMENT

Organizational analysisTask analysisPerson analysis

PHASE II

DESIGN

Instructional ObjectivesTrainee ReadinessLearning Principles

PHASE III

IMPLEMENTATION

On the job methodsOff the job methodsManagement development

PHASE IV

EVALUATION

ReactionsLearningBehaviour Results

Analyzing Training NeedsTask Analysis: Assessing activities to be performedPerformance Analysis: of performance , knowledge and skillsTraining Needs AnalysisOrganizational Analysis: Assessing environment , strategies and resourcesAssessing Current Employees Training Needs

TRAINING DESIGNINSTRUCTIONAL OBJECTIVES Desired outcome of a training program

TRAINEE READINESS & MOTIVATION Maturity & Experience , background, skills self discipline etc. Determined by test scores and questionnaires

PRINCIPLES OF LEARNING

CHARACTERISTICS OF INSTRUCTORS

1.Knowledge of subject5.Interest2.Adaptability6.Clear Instructions3.Sincerity7.Individual assistance4.Sense of humour8.Enthusiasm

PRINCIPLES OF LEARNING

Training Methods for Non Managerial EmployeesOn the job trainingApprenticeship TrainingCooperative Training , Internships and Governmental TrainingClassroom InstructionProgrammed InstructionAudiovisual MethodsE LearningSimulation Method

TRAINING METHODS FOR MANAGEMENT DEVELOPMENTON THE JOB EXPERIENCESEMINARS AND CONFERENCESCASE STUDIESMANAGEMENT GAMESROLE PLAYINGBEHAVIOUR MODELLING

EVALUATING THE TRAINING PROGRAMREACTIONS Thru feedbacksLEARNING Test before , test after and use control groupsBEHAVIOUR Transfer of learning

- Give employees climate for transfer, devise transfer strategiesCRITERION Results or Return on InvestmentBENCHMARKING -Demmings Plan, Do , Check and Act . Benchmark with Industry Leaders

Performance Management and Appraisal

Appraisal MethodsTRAIT METHODSGRAPHIC RATING SCALESFORCED CHOICE METHODALTERNATION RANKING METHODFORCED DISTRIBUTION METHODPAIRED COMPARISON METHODNARRATIVE FORMSBEHAVIOURAL METHODSCRITICAL INCIDENT METHODBEHAVIOURAL CHECKLIST METHODBEHAVIOURALLY ANCHORED RATING SCALEBEHAVIOUR OBSERVED SCALERESULTS METHODPRODUCTIVITY MEASURESMANAGEMENT BY OBJECTIVEBALANCED SCORECARD METHOD

Reasons of FailureInadequate preparation on part of managerLack of clarity on objectivesLack of clarity on Performance standardsInconsistency in ratings among ratersRating personality rather than performanceBiases and ErrorsInappropriate time spanLack of observation by managersOveremphasis on uncharacteristic performanceInflated ratingsOrganizational politics

Setting Performance StandardsStrategic RelevanceReliability Specific Measurable goalsCriterion DeficiencyCriterion Contamination

Setting Performance StandardsWho Should Do the Appraising?

360 degree Appraisal ComprehensiveQuality of Information is betterComplements TQM initiatives by emphasizing customers and teamsLessens biasFeedback from peers and others may increase self development

ComplexFeedback can be intimidatingConflicting opinions from different standpointsRequires trainingEmployees may colludeMay lack accountability in case of anonymity

Appraising Performance: Problems

The Appraisal InterviewTELL AND SELL - INTERVIEWTELL AND LISTEN - INTERVIEWPROBLEM SOLVING INTERVIEWTypes of Appraisal InterviewsAsk for a Self - AssessmentMinimize CriticismInvite ParticipationExpress AppreciationChange the Behaviour Not the personEstablish GoalsFocus on Solving ProblemsBe SupportiveFollow Up Day to Day

Improving PerformanceIdentifying Sources of Ineffective PerformancePerformance DiagnosisManaging Ineffective Performance

MotivationCareer ambitionEmployee conflictFrustrationFairness/ SatisfactionGoal / Expectations

EnvironmentEquipment/ materialsJob DesignEconomic ConditionsUnionsRules & PoliciesManagement SupportLaws & Regulations

AbilityTechnical SkillsInterpersonal SkillsProblem-solving skillsAnalytical skillsCommunication skillsPhysical limitationsFactors That Influence PerformancePERFORMANCE DIAGNOSIS

Scenario1Low CompetencyPossible skill issuesTraining/ DevelopmentScenario 2High competency , poor behaviourPossible motivation issueCoaching/ IncentiveScenario 3High behaviour rating , poor resultsWork environmentWork design / Leadership

PURPOSE OF PERFORMANCE APPRAISALDEVELOPMENTALAssist in goal identification & evaluate goal achievementRecognize individual performance and provide feedbackIdentify individual & organizational training needsReinforce authority structureImprove communicationAllow employees to discuss concerns

ADMINISTRATIVEDocument personnel decisionsDetermine promotion, transfers, retention, terminationValidate selection criterionMeet legal requirementsEvaluate training programsPersonnel planningMake reward / compensation decisions

COMPENSATION

SEGMENTATIONBusiness life cycleBusiness designGeographic impactBrand impact

ESSENTIAL ELEMENTS OF COMPENSATION STRATEGY Role of compensation elements Purpose of each compensation vehicle (base salary, short-term incentives, long-term incentives and recognition awards) Comparator group (s) Competitive business/ labour market Competitive positioning Target positioning & mix Performance orientation Differentiation, time horizon, point of measurement & metrics Internal equity Importance of the internal relative value of work Affordability and sustainability Degree of cost control required Governance and accountability Decision-making structure & management responsibility Administration Approach & point of management Communication and transparency Approach & vehicles for Information sharing Success factors Measuring and monitoring results

FACTORS AFFECTING THE WAGE MIX

INTERNAL FACTOREXTERNAL FACTORCompensation strategy

of organizationWorth of jobEmployees relative worthEmployers ability to pay

Conditions of the

labor marketArea wage ratesCost of livingCollective bargainingLegal requirements

WAGEMIX

JOB EVALUATION SYSTEMS

Job Ranking SystemPoint SystemWork ValuationHay Profile Method

COMPENSATION STRUCTURE

Wage & Salary SurveysWage CurvePay GradesRate RangesBroad bandingCompetency based pay

STRATEGIC REASONS FOR INCENTIVE PLANSEstablish performance thresholdProvide employee focusProvide motivationFoster teamwork and unit cohesivenessWay to distribute successReward or retain top performersDirectly linked to operating performance

TYPES OF INCENTIVE PLANS

INDIVIDUAL

PieceworkStandard Hour PlanBonusesMerit payLump-sum merit payIncentive awardsSales incentivesIncentives for professional

EmployeesGROUPTeam compensationScanlon PlanRucker PlanImproshare

ENTERPRISEProfit sharingStock optionsESOPs

EXECUTIVE PAY PACKAGE

Base salaryShort term incentives/ bonusesLong term incentives/stock optionsBenefitsPrerequisites

LONG TERM INCENTIVESStock OptionsStock Appreciation RightsStock PurchasePhantom StockPerformance UnitsPerformance Shares

SHORT TERM INCENTIVESBonuses for individual innovation and creativity such as patent awardsAwards for achieving desired results ( perfect attendance , length of service and seniority, referral)Attainment of specific organizational goals ( profit earned & cost reduction)

EXECUTIVE PERKS OR PREREQUISITESCompany Car Company planeExecutive Eating facilitiesCompany paid parkingPersonal Liability InsuranceEstate PlanningHome computersChauffeur serviceChildrens education

Spouse TravelMobile phonesLarge insurance policiesIncome tax preparationCountry club membershipLuncheon club membershipPersonal home repairsLoansLegal counseling

Pay for time not workedVacations and holidaysSick leaveParental and family and medical leaveSeverance pay

Insurance benefitsWorkers compensation actLife insurance - Employees State Insurance Scheme, Employees Deposit Linked Insurance Scheme

Retirement benefitsSocial security Employees Provident FundPension plans - Employees Pension Scheme

BENEFITS

THE WORKMEN'S COMPENSATION ACT - The Workmen's Compensation Act was enacted to help workmen face the hardships resulting from accidents. An employer is liable to provide monetary compensation to a disabled workman, or to his dependents, in case of his death, if the disablement or death occurs "out of and in the course of employment the was capable of doing at the time of the accidents. Its effect may be temporary or permanent

EMPLOYEES STATE INSURANCE ACT -The Employees State Insurance Act, 1948 envisaged an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity. the Act also guarantees reasonably good medical care to workers and their immediate dependants.

EMPLOYEES PROVIDENT FUND ACT - According to the Employees Provident Fund ,a member is entitled to various benefits & facilities such as withdrawals, advances, pensions, death insurance etc. The Act covers establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified .According to the act , statutory rate of contribution of employee is 12% of emoluments (basic wages, dearness allowance, cash value of food concession and retaining allowances if any .A matching contribution is to be collected from the emoluments of the employees.

THE EMPLOYEES' DEPOSIT-LINKED INSURANCE SCHEME - The purpose of the scheme is to provide life insurance benefits to the employees of the establishments covered by the E. P. F. The benefit provided under the scheme in the nature of life insurance is as follows. On the death of an employee while in service a lump sum insurance amount is payable to his nominee or family members. The insurance amount is equal to the average balance in the account of the deceased employee in the Provident Fund during a period of 12 months immediately preceding his death.

EMPLOYEES PENSION SCHEME - The purpose of the Scheme is to provide for superannuation pension, retiring pension or permanent total disablement pension to employees covered by the Employees' Provident Funds.

COMPETENCY BASED PAYPAY FOR KNOWLEDGESKILLSQUALITY OF WORK LIFE PROGRAMBROADBANDINGAUTONOMOUS WORK GROUP

COMPETENCY BASED PAY - competencies mean demonstrable characteristics of the person that enable performance. These include knowledge, skills and behaviors, sometimes also personality traits and abilities. KNOWLEDGE WORKERSESOPSALTERNATIVE WORK SCHEDULES

CREATING HIGH PERFORMANCE WORK SYSTEMS

UNDERLYING PRINCIPLES OF HIGH PERFORMANCE

SHARED INFORMATIONEGALITARIANISMPERFORMANCE REWARD LINKAGEKNOWLEDGE DEVELOPMENT

COMMUNICATIONBUILD A CASEFOR CHANGEINVOLVEUNIONNAVIGATETRANSITIONEVALUATIONIMPLEMENTING HIGH PERFORMANCE WORK SYSTEMS

STRATEGYCOMPETITIVE CHALLENGESEMPLOYEE CONCERNSCOMPANY VALUESWORK-FLOWDESIGNTECHNOLOGIESHR PRACTICESLEADERSHIPACHIEVING STRATEGIC FITEXTERNL FIT

ANATOMY OF HPWS

Work FlowSelf managed teamsEmpowerment

StaffingSelective recruitingTeam Decision making

TrainingBroad skillsCross trainingProblem solvingTeam training

CompensationIncentivesGainsharingProfit sharingSkill-based pay

LeadershipFew layersCoaches / facilitators

TechnologiesHRISCommunication

Shared Knowledge Performance EgalitarianismInformation Development Reward Linkage

OUTCOMES OF HPWSEMPLOYEE OUTCOMES & QUALITY OF WORK LIFEDEVELOP COMPETENCIES RARE, VALUABLE, DIFFICULT TO IMITATE , ORGANIZEDEMPLOYEES CAN DECIDE GOALS, TAKE RISKS, GENERATE NEW IDEAS, MAKE MISTAKES,LEAD TO NEW PRODUCTS, SERVICES AND MARKETSEMPLOYEE INVOLVEMENT SATISFACTION & GROWTHINFORMATION & EMPOWERMENT HIGHER SKILLS, JOB SECURITY , GREATER POTENTIAL FOR CONTRIBUTIONSORGANIZATIONAL OUTCOMES AND COMPETITIVE ADVANTAGEHIGHER PRODUCTIVITY , LOWER COSTS, BETTER CUSTOMER AND EMPLOYEE SATISFACTION, GREATER FLEXIBILITY, HIGHER PROFITABILITY

HR SCORECARD STRATEGY MAP

BENEFITS OF HR SCORECARD

It reinforces the distinction between HR deliverables and doables

It lets HR professionals effectively manage their strategic responsibilities

It encourages flexibility and change

It reinforces the distinction between HR do-ables and deliverables:

It enables cost control and value creation

It measures leading indicators

It assesses HRs contribution to strategy implementation