Human Resources Management - Afzal Khan

Course modules
Human Resource
Management (HRM)
Competency Based
HRM
Recruitment and
Selection
Training and
Development
Performance
Management
Compensation and
Benefits

MODULE
Human Resource Management (HRM)

1- Definitions and objectives of HRM
Definition 1:
HRM is the function performed in organizations that facilitates the most effective use of people to
achieve organizational and individual goals.
Definition 2:
Human Resource Management is a series of integrated decisions that form the employment
relationship; their quality contributes to the ability of the organizations and the employees to achieve
their objectives.
Milkovich and Boudreau

HRM Objective
HRM
Objective
Areas
Organizational
Objectives
Societal
Objectives
Personal
Objectives
Functional
Objectives

•HRM is a means to achieve efficiency and
effectiveness. It serves other functional
areas, so as to help them to attain
efficiency in their operations.
•Acquiring right man for the right job at
right time in right quantity, developing
through right kind of training, utilizing
the selected workforce, and maintaining
the workforce are the organizational
objectives of HRM. Succession planning is
an important issue to be taken up as a
contemporary organizational objective.
Organizational Objectives
• In today’s world there is shortage of requisite
talent. Employees are encouraged by competitive
firms to change the jobs. HRM has the
responsibility to acquire, develop, utilize, and
maintain employees.
• This would be possible only when the HRM helps
employees to achieve their personal goals to get
their commitment. Creating work-life balance for
the employees is a personal objective.
Personal Objectives

•HRM performs so many functions
for other departments. However, it
must see that the facilitation
should not cost more than the
benefit rendered.
Functional Objectives
• HRM must see that the legal, ethical, and
social environmental issues are properly
attended to. Equal opportunity and equal pay
for equal work are the legal issues not to be
violated. To take care of farmers (whose land
has been acquired for the factory) and tribal’s
(who are displaced by industries and mining
companies) are the ethical issues.
• The results are clear when these issues are not
taken care of. To help the society through
generating employment opportunity, creating
schools and dispensaries, helping women
empowerment are the social responsibility
issues.
Societal Objectives

Other general objectives of HRM
1. To help the organization reach its goals
2. To employ the skills and abilities of the workforce efficiently
3. To provide the organization with well trained and well motivated employees
4. To increase to the fullest the employee’s job satisfaction and self-actualization
5. To develop and maintain a quality of work life
6. To communicate HR policies to all employees
7. To help maintain ethical policies and behavior

2- The main functions in HRM
Planning Staffing
Training and
Development
Motivation
and
Maintenance
Fourareas and their related functions share the common objective of an
adequate number of competent employees with the skills, abilities, knowledge, and
experience needed for further organizational goals

Planning
• It should cover the widest range of
personnel policies
• It should include as many aspects of
managing people as necessary to
achieve the longer term objectives of
the organization.
• Is an integral part of business planning.
• Is a systematic and continuing process of analyzing
organization’s workforce need.

Three Key
Elements
of HRM
Planning
Forecasting
Staffing
Needs
Balance
Supply
and
Demand
Evaluating
Supply
Planning

Forecasting Staffing Needs
 There are several ways to forecast your business needs, in order to predict how
many employees you need to run your business and which roles these employees
need to fill.
 Some of the factors to consider are:
• the situation of the economy,
• the internal business finances,
• the demand for your products or services
• and the growth expectations for your business.
 Take a look at your existing staff and see which current employees are likely to
transition into new positions and estimate the turnover rate of employees for
your business.
Planning

Evaluating Supply
 Evaluating the supply of employees includes a two-prong process:
• evaluating internal staff (which will occur as you are forecasting your
staffing needs)
• and evaluating external staff. Externally, you need to evaluate the
demographics of the workforce that is available.
 Evaluating Supply can include factors such as education, mobility, the
unemployment rate of government laws and regulations that can affect your
industry, your business, existing and potential employees.
 Evaluating all of these factors helps you determine if you have access to the
number and types of employees you need to fill your staffing forecasts.
Planning

Balance Supply and Demand
 The final element of the human resources planning is to determine how you
are going to balance the demand you have for employees with the supply of
employees available.
 If you have a shortage of employees, this will determine what type of recruiting
efforts your business will participate in to attract the employees it needs to fill
needs within the organization.
 It also requires you to balance your full-time and part-time needs.
 If you have a surplus of employees, this requires you to consider employee
layoffs, retirements and situations where employees may need to be demoted
or moved into a lateral position (rather than receiving a promotion).
Planning

Staffing
Staffing is defined as filling and keeping filled, positions in
the organization take into account internal factors of the
firm such as Personnel Policies, Climate in Organization,
Appraisal System.

Staffing
Staffing
emphasizes
Recruitment Selection

Staffing
Recruiting:
 Recruitment is the process of identifying and attempting to attract candidates who are
capable of filling job vacancies appropriately.
 In other words Recruitment is a process to discover the sources of manpower to meet the
requirements of staffing schedule and to employ effective measures for attracting that
manpower in adequate number to facilitate effective selection of an efficient working force.
 There are two sources of Recruitment
• Internal Recruitment (through promotion, transfers, present employee or demotions
• External Recruitment (through Notice at the factory gate, trade union, unsolicited
application, casual callers, advertisement, employment exchange, educational
institution, labor contactors, or private agencies.

Staffing
Selection:
 In the selection function, the most qualified applicants are selected for hiring from among
those attracted to the organization by the recruiting function.
 On selection, human resource functionaries are involved in developing and administering
methods that enable managers to decide which applicants to select and which to reject for
the given jobs.

Training and
Development
(T&D)  The training and development function gives employees the skills and
knowledge to perform their jobs effectively.
 In addition to providing training for new or inexperienced employees,
organizations often provide training programs for experienced employees
whose jobs are undergoing change.
 Large organizations often have development programs which prepare
employees for higher level responsibilities within the organization.
T&D provide useful means of assuring that employees are
capable of performing and developing their jobs at a more
advanced levels

Training and
Development
(T&D)
Development
Is a long term educational process
It can defined as any learning activity
which is directed towards future needs
rather than present needs, and which is
concerned more with career growth than
immediate performance.
Training
Is a short term educational process
It can be defined as a formal and systematic
modification of behavior through learning,
instruction, development and planned
experience.

Training and
Development
(T&D)
Helps remove performance
deficiencies in employees
Greater stability, flexibility
and capacity for growth in an
organization
Serves as effective source of
recruitment
It is an investment in HR with
a promise of better returns
in future
Importance of
Training &
Development

Training and
Development
(T&D)
Motivation
and
Maintenance
What is Motivation and Maintenance in HRM:
It is the activities in HRM related with providing as much facilities to
employees to drive them to feel secured and do quality work with true inner
passion with their own fee well.
It is maintaining employees’ commitment and loyalty to the organization.
It is ensuring the work environment is safe, healthy, caring for employees and
as per the government rules and regulations.

Training and
Development
(T&D)
Motivation
and
Maintenance
Why Motivation is important:
 Motivation coupled with ability leads to
performance.
 Motivated employees do the quality work with
more passion and by their own will.
 Motivated employees are more productive
than the apathetic workers.
 Low attrition.
 Low turnover rate.
 Motivated employees are more loyal towards their organizations.
 They are more comfortable while doing the work in the office.
 Employee will love their job.

Training and
Development
(T&D)
Motivation
and
Maintenance
Explain how the employee
fits into the organizational
plans.
Give
chance to
learn new
skills.
Encourage new
ideas and initiatives.
Involve
employees
in the
decision
making.
Celebrate the
successes of the
employees.
Recognize, reward
and promote based
on performance.
Provide feedback.
Provide
them
ownership in
their work.
Give thanks personally,
timely, often and
sincerely.
Take time
to meet
and listen
to staff.

Training and
Development
(T&D)
Why Maintenance is important (Health and Safety):
Motivation
and
Maintenance
Whatever sort of business you are, the
underlying aim of good health and
safety management is to make sure
that people's safety is not put at risk
and that their health is not damaged.
A safe working environment does not
just happen; it has to be created. The
organizations with the best
reputations for safety have developed
well-planned and thorough
Remember, attention to health and
safety is not just about obeying the
law and being socially responsible. It
also makes good business sense.

Training and
Development
(T&D)
Motivation
and
Maintenance
 Prevent accidents and health damage
 Reduce accident losses
 Cut absenteeism
 Improve the organization profit and loss statement
 Help you become more efficient
 Improve your business profile with customers
Why Maintenance is important (Health and Safety):

3- Characteristics of effective HRM
Building the effective Human Resources
department is a tough task as it is about the
complete change of the HR Processes, building
the fair relationship with the internal customers
and focusing on the main outcomes of Human
Resources provided to the organization. The
effective Human Resources management is
about the clear definition of the goal of the
department, the good knowledge about the HR
Roles and Responsibilities in the organization
and designing the right mix of HR Jobs as the
duties can be fulfilled.

3- Characteristics of effective HRM
• The effective HR management is about setting the right
roles and responsibilities to the individual team members
as the HR departments processes the requests quickly and
it has the additional capacity to build new and improved
HR processes and procedures.
Setting the right roles and responsibilities
• The effective HR management is about the existing HR
Career Paths as the employees of Human Resources feel
they can grow inside the organization and they do not tend
to change the job externally
The existing HR Career Paths
•The organization has to offer a valuable HR Career Path for
the young fresh university graduates as they receive the
right mix of the competencies and skills and they are fully
compliant with the organization’s corporate culture.
Offer a valuable HR Career Path
• The right HR Profiles are extremely important and they have to
be open to all HR employees as they can choose their own career
track for the future.
Right HR Profiles
FOUR main characteristics

4- HRM new roles: HRM as business partner
Today’s HR Business Partner (HRBP) role has morphed from tactical support to a more strategic role in
most organizations.
Many organizations transform the HR business model, but leave the wrong talent in the right roles.
Rarely are there clear enough performance and development expectations to help people understand
how the role has transformed and what is now expected for peak performance.
Today’s HR Business Partner (HRBP)

The new role of HR as a business partner
As HR grew in it’s complexity becoming more involved in business forecasting, establishing business
ROI and executing progress that could be directly tied to future and current business success, so
evolved the role of the HR professional into something more than it ever intended to be.
HR is a strategic business partners forcibly involved in the success of organizations evaluating not
just hiring, firing and traditional hiring advisory roles but so much more.

The Changing Role of HR
Strategic
15%
Operational
85%
Strategic
60%
Operational
40%
HR needs to realign its service delivery model to add more strategic value to the organization
The shift in the Balance of HR Role

5- Examples of HRM organization charts

Competency Based HRM
2- Types of competencies
Managerial competency (soft competency):
This type of competency relates to the ability to manage job and develop an interaction with
other persons. For example : problem solving, leadership, communication, etc.
Functional competency (hard competency):
This type of competency relates to the functional capacity of work. It mainly deals with the
technical aspect of the job. For example : market research, financial analysis, electrical
engineering, etc.

3- The importance of competencies
The competency framework is considered as the basis for all HR functions and
serve as the linkage between individual performance and business results

It helps to:
 Identify performance criteria
 Improve the accuracy and ease of the hiring and selection process
 Clarify standards of excellence for easier communication of performance expectations
to direct reports.
 Provide a clear foundation for dialogue to occur between the manager and employee
about performance, development, and career-related issues.

Identification Process

4- Sample competency frameworks
Sample 1

4- Sample competency frameworks
Sample 2

MODULE
Recruitment and Selection

1- Recruitment versus selection
StaffingRecruitment Selection

Recruitment:
 Recruitment is the process of identifying and
attempting to attract candidates who are
capable of filling job vacancies appropriately.
 In other words Recruitment is a process to
discover the sources of manpower to meet the
requirements of staffing schedule and to
employ effective measures for attracting that
manpower in adequate number to facilitate
effective selection of an efficient working
force.
Selection:
 In the selection function, the most qualified
applicants are selected for hiring from
among those attracted to the organization
by the recruiting function.
 On selection, human resource functionaries
are involved in developing and
administering methods that enable
managers to decide which applicants to
select and which to reject for the given
jobs.

External
Factors
Internal
Factors
• Demand and supply of
skilled laborers
• Unemployment problem
• Government problem
• Labor market
• Sons of the soil (localization)
• Organization image
• Labor legislations
• Recruitment policy
• Size of the organization
• Recruitment cost
• Growth and expansion
• Human Resource Plan
TwosourcesofRecruitment

2- Defining requirements and attracting qualified candidates
Attracting candidates is primarily a matter of identifying, evaluating and using the most
appropriate sources of applicants.
However, in cases where difficulties in attracting or retaining candidates are being met or
anticipated, it may be necessary to carry out a preliminary study of the factors that are likely to
attract or repel candidates the strengths and weakness of the organization as an employer.
The analysis of strengths and weaknesses should cover such matters as the national or local
reputation of the organization, pay, employee benefits and working conditions, the intrinsic
interest of the job, security of employment, opportunities for education and training, career
prospects, and the location of the office or plant.

2- Defining requirements and attracting qualified candidates
The analysis can show where the organization needs to improve as an employer if it is to
attract more or better candidates and to retain those selected.
It is the matter of attracting the most appropriate source of applicants. However, it is always a
good idea to carry out a preliminary study on the factors that are likely to attract/repel
potential employees.
it is important to consider the following while attracting candidates
• Analyze the strengths and weakness of the business.
• Analyze the requirements.
• Identify Sources of candidates.
• The Pros and Cons of Advertising and use of the Advertising media.
• Use of Online recruitment facilities.
• How and when to use services of Recruitment and Selection Consultants .

Choosing your methods of recruitment
Recruiting for skilled positions is becoming increasingly competitive,
meaning organizations need to be increasingly creative in how they go about
attracting the right candidate .
Assess where you are most likely to find your ideal candidate
• Will they be recent graduates from colleges or universities?
• Will they come from other nonprofit organizations?
• Are they within your volunteer base?
3- Latest trends in sourcing channels

Internal sources
External sources

Internal
resourcing
advantages
Opportunity
to retain
qualified
employee
Promotion to
a higher level
Reduce time
and cost
Reward to
the employee
for past
performance
Linked with
career
development
process
Internal recruitment
Advantages

Employee referrals
Recruitment through referrals encourages employees to recommend
potential candidates from their network. To ensure employees are willing
to recommend their contacts for positions at your organization it is
important to treat all referrals with respect and follow-up in a timely
manner.
Print advertisements
Print advertisements may appear in national or local newspapers,
bulletins, professional journals, or magazines.
Internet recruiting
The opportunity may be posted on an internet job board, on your own
website or on professional association websites. One study has shown
that 96% of people looking for jobs use the internet

Recruitment agencies /Executive search firms
These private companies will find and screen potential candidates for a fee, typically a percentage of the
annual salary. It is important when using these services that you take the time to clearly define the
position and your expectations of the services to be provided by the agency.
Career Fairs and Outreach Programs
Career fairs provide an opportunity to connect informally with interested candidates, often in a particular
industry. Outreach programs may be geared towards underrepresented groups or people looking to re-
enter the workforce.
Networking and Liaison
This can involve reaching out to your existing network for recommendations
or reaching out to other nonprofits. This could also involve efforts to build
or increase your current networks in the hopes of connecting with new
potential employees.

4- Types of assessment
• Preliminary Interview
• Selection Tests
• Employment Interview
• Reference and Background Checks
• Selection Decision

Scrutinizing the applications,
conducting interviews,
taking tests,
assessing candidates through assessment centers,
offering employment,
obtaining references;
Selection of candidates is aimed at finding suitable candidates that
would be competent in carrying the duties assigned successfully. It
about matching the competencies, experience, skills, and
education to the requirements of the job.

It also involves making the right choice between a pool of potential candidates. A trio exists
that help the business in making selection decisions, The classic trio consists of:
• Application forms - Providing vital information on the credentials of the potential job
candidate
• Interviews - offering a chance to the employer to observe and evaluate the candidate
formally
• References. - Highlights the character and views of others about the potential employee.
• It is suggested that Selection tests and assessment centers shall be added to the above list
of selection options

5- Reliability of assessment methodologies
• Application forms.
• Employment interviews.
• Aptitude tests.
• Personality tests.
• Procurement of Qualified and Skilled Workers
• Reduced Cost of Training and Development.
• Absence of Personnel Problems.

Interview may be
One to one Interview
Only two participants –
1. Interviewer
2. Candidate
6- Types of interviews

Sequential Interview
1 2 3
Involves series of interviews
Candidates moves from room to room

Panel Interview
Two or more interviewers
Formal

7- Competency based interview structure
 Best predictor of a candidate's future performance is
his/her past performance
 Asks candidate to describe things they have actually
done rather than what they would do in a given situation
 Avoids stereotypes

Competency Based Approach
 Past behaviors and performance
 Learning from past behaviors
 Future adaptability to new post
 Knowledge and understanding of issues in
relation to job
Assess candidates against essential criteria
and competency

 Which are the most relevant
to this application?
 Have you covered the
essentials?
 Which ones have made the
most difference?

Approaches to Interviewing
Traditional
● Fact finding - About candidate’s background
● Theoretical - How you would implement or do something
● Hypothetical/Situational - How would you deal with a hypothetical situation
Competency Based
Allows candidates to prove their suitability for the job by quoting
examples of actual behavior:
 Give an example when……
 Describe an occasion when……
 Tell about a time when……..

 Place emphasis on evidence of outcomes
 Things you have done that you are proud of
 Situations you have handled particularly well
 Ways you have contributed to the success of your
organization
 Be conscious of your current work
 Start writing them down
Your Examples
Tips for the Interviewee

Don’t over analyse body language – some people
just fold their arms because they fold their arms!
Body Language Panel
Observation of the audience is useful as it
gauges:
 Attention
 Agreement
 Disagreement
 Boredom

Be innovative and prepared to consider several different methods in order to attract the
best person for the job
How likely is it that your chosen methods will reach your target candidates?
Recruit efficiently
What are the timeframes to fill the positions?
What size candidate pool will you need?
For a general, unspecialized position you have a higher probability of finding a suitable
candidate within a smaller pool so you will want to recruit in a ways that keeps the number of
applications reasonable
For a very senior or highly skilled position you will likely need to reach out to the widest
possible pool in order to get the best candidate
8- The selection decision

MODULE
Training and Development

1- Identification of training needs
A training need exists when an employee lacks the
knowledge or skill to perform an assigned task
satisfactorily.
To identify the range of training needs and define
their content, the HRD uses different approaches to
assessment of needs. Training
Need
Assessment
Survey
Group
Recommendation
Task
Identification
HR weaknessesOther Sources
Supervisors
Self-
nominations
Training of employees is essential because work
force is invaluable asset to an organization.
Training is required on account of the following
reasons:
• Newly appointed persons
• Existing experienced employees
• Technological changes
• Internal mobility
• Problem related with production

Survey among the potential trainees is conducted to identify specific topics about
which they want to learn more.
The job description is evaluated to identify the salient tasks the job requires.
Once trainers have an understanding of those tasks, specific plans are developed
to provide the necessary training.
The group’s expertise may be tapped through a group discussion, a
questionnaire, or a normal group meeting.
Survey
Group
Recommendation
Task
Identification
HR weaknesses
The weaknesses among HR activities like inappropriate placement, orientation,
selection, or recruiting may lead to workers with deficiencies.

In this case employees are asked to nominate themselves for training and development
programs where they want the differences in between their expected skills, knowledge
and abilities.
Supervisors are able to observe employees on daily basis. They may recommend
an employee for training and development as reward good employees.
Reviewing other sources of information includes different report. e.g. production
records, quality control reports, grievances, safety reports, etc. it may reveal
problems that should be addressed through training and development efforts.
Other Sources
Supervisors
Self-
nominations

2- Design and delivery of training
Designing the Training Course:
It includes the following aspects:
• Deciding the contents of training
• Designing the support materials for training like
study notes, case studies, pamphlets, charts etc.
• Preparation of budgets for alternative training
package.

2- Design and delivery of training
Delivery of Training Course:
These rules should be observed
while imparting training.
Time table:
the trainers
must prepare
a time table
of the
training.
Personal
attention:
every trainee
should be
personally
cared.
Work: ‘Work’
should be
clearly
defined.
Timing: work
should be
clearly and
slowly
taught.
Employment:
workers are
to be allowed
to work. He
should be
helped to do
work by
removing
mistakes and
doubts.

3- Developing and evaluating relevant training objective
Once training needs are assessed, training and development goals or objectives must be established.
The main objectives of developing the training are:
• To provide basic knowledge and skills required to perform a specific task.
• To provide latest concepts, information and techniques to employees for
performing efficiently in the present position.
• To build a second line officers by giving training to occupy responsible position in
future.
• Efficiency
• Improves Quality
• Versatility in Operations
• Employees Stability

3- Developing and evaluating relevant training objective
Evaluation and Follow up:
• After deciding the training objectives the next step is designing an appropriate
training policy.
• Matching the goals/objective with and policy will ensure the effectiveness of any
training.
• Effectiveness of training programs is to be verified. The feedback generated
through follow up will help to reveal the errors or mistakes done. It will also help in
designing future training programs.

4- Training matrixes
A training matrix is a useful tool that will
support managers to: Identify mandatory,
role specific and individual training needs.
Create new entrant training plans. Plan
team training needs. Ensure all
mandatory training is completed
Use excel demos

5- Effectiveness of delivery methods: the international benchmarks
Before considering specific training techniques, ask yourself these questions:
What are your training goals for this session?
• New skills
• New techniques for old skills
• Better workplace behavior
• A safer workplace
• A fair and equal workplace free of discrimination and harassment
Who is being trained? What is your training budget?
• New employees
• Seasoned employees
• Upper management

How much time has been allocated for training within your organization?
What training resources and materials do you have at your disposal?
Your answers to these questions begin the narrowing process for your training choices. Now let’s
examine those training methods, their pros and cons, and where they best fit in a training program.
1.Classroom or Instructor-Led Training
2.Interactive Methods
3.Hands-On Training
4.Computer-Based Training (CBT)
5.On-line or E-Learning

MIT TRAINING DELIVERY
METHODS SURVEY REPORT
December, 2006

6- Evaluation of training effectiveness
Evaluation of training
compares the post training
results to the objectives
achieved by managers,
trainers, and trainees.
Evaluation should provide
useful information about
the effectiveness of
training as well as the
design of future training
program.
Reaction interviews questionnaires
Learning Learned ideas skills
Behavior observation attitude
Results Improvement
in productivity
Quality, time,
sales,
turnover…
LevelsofEvaluation

6- Evaluation of training effectiveness
It is very important to assess the result of any training program. The participant must be made aware of
the goals and objectives of the training program and on completion of the training program, they should
be asked about the impact of the concerned training program.
Methods of training effectiveness/evaluation:
• Self assessment answer sheets
• Questions confronted by the trainee
• Assessing the collected information and observation
• Final result based on earlier information plus the new data

Staff and Organization
Performance and
Development Reviewing
Action
Performance Planning
Performance Management
1- The performance management cycle
Enabling staff to deliver
Taking stock of achievements,
diagnostics
Setting Objectives,
defining what is needed
Reset objectives
Makechanges

» Major Areas of
Responsibility
» Individual Priorities
» Knowledge, Skills and
Behaviors
» Development plan
» Reaching agreement» End-of-cycle
review
» Continuous
progress and
development » Ongoing Feedback
» Coaching
» Interim reviews
2- The main components of performance management

3- Performance management versus performance appraisal
Performance Appraisal continues to be one
of the most criticized HR functions in
organizations
• We all measure our subordinates’ performance
whether we do it formally or informally
• Very important to document what we evaluate
• Also necessary to show a clear link between what we
evaluate and job requirements

4- Management by objectives
Peter Drucker introduced the
concept of MBO.
Management By Objective:
• Objectives of the enterprise as a whole
• SWOT analysis of an enterprise
Establishing
Objectives
• Objectives of each manager
• Subordinates overall objectives
• Action plans to achieve the goals/targets
Establishing
Targets
• Periodically
• Progress, weakness and constraints are assessed
• Improvements are decided in the review meetings.
Review of
Performance
• Performance review (manager with subordinates)
• New goals can be set upFeedback
MBO is a system in which
specific performance
objectives are jointly
determined by
subordinates and their
superiors, progress toward
objectives is periodically
reviewed, and rewards are
allocated on the basis of
this progress.

4- Management by objectives
SMART Management by Objectives introduced the
SMART method for checking the validity of
Objectives,
'SMART':
• Specific
• Measurable
• Achievable
• Realistic, and
• Time-related.

5- Setting up a competency based performance management system
• Feedback and coaching – informal
• Monitoring and tracking performance
against standards and progress toward
goals.
• Quarterly performance planning and
performance discussions
• Development through coaching, training,
challenging or visible assignments,
improving work processes

What performance will be measured?
• Behaviors – how the work is done
• Performance factors / competencies
• Required behaviors
• Behaviors supporting desired organizational culture
• Results – what is achieved
• Performance outcomes
• Performance compared to job standards
• Performance goals and/or objectives

Performance Review
• Summary of performance over a
period of time
• Evaluate performance results and
behaviors
• Conducted face-to-face with a
written record.
• While rating and ranking has both
pros and cons, a summary rating of
each employee may be useful.

6- Talent management and succession planning
DEFINING TALENT
‘ Talent consists of those individuals who can make a
difference to organisational performance, either through
their immediate contribution or in the longer term by
demonstrating the highest levels of potential’
According to McKinsey, talent is the sum of
• a person’s abilities,
• his or her intrinsic gifts,
• skills, knowledge, experience ,
• intelligence,
• judgment, attitude, character, drive,
• his or her ability to learn and grow

TALENT MANAGEMENT
A conscious, deliberate approach undertaken to attract, develop and retain people
with the aptitude and abilities to meet current and future organisational needs.
TALENT=COMPETENCE+COMMITMENT+CONTRIBUTION

1. Workforce Planning: Integrated
with the business plan, this process
establishes workforce plans, hiring
plans, compensation budgets, and
hiring targets for the year.
2. Recruiting: Through an integrated
process of recruiting, assessment,
evaluation, and hiring the business
brings people into the organization.
3. Onboarding: The organization must
train and enable employees to
become productive and integrated
into the company more quickly.
4. Performance Management: by
using the business plan, the
organization establishes processes to
measure and manage employees.
PROCESS

5. Training and Performance Support: This is a critically important
function. Learning and development programs is provided to all levels of
the organisation. This function itself is evolving into a continuous support
function.
6. Succession Planning: as the organization evolves and changes, there is a
continuous need to move people into new positions. Succession
planning, a very important function, enables managers and individuals to
identify the right candidates for a position. This function also must be
aligned with the business plan to understand and meet requirements for
key positions 3-5 years out. While this is often a process reserved for
managers and executives, it is more commonly applied across the
organization.

7. Compensation and Benefits: This is an integral part of people management. Here
organizations try to tie the compensation plan directly to performance management
so that compensation, incentives, and benefits align with business goals and business
execution.
8. Critical Skills Gap Analysis: This is a process we identify as an important, often
overlooked function in many industries and organizations. While often done on a
project basis, it can be "business-critical." For example, today industries like the
Federal Government, Utilities, Telecommunications, and Energy are facing large
populations which are retiring. How do you identify the roles, individuals, and
competencies which are leaving? What should you do to fill these gaps? We call this
"critical talent management" and many organizations are going through this now.

RETAINING
• Performance Driven Culture
- Recognize high performers & high potential employees
• Meet Employee Aspirations
- Challenging Roles
• Enhance Employee Connect
- Empowered organization units

MODULE
Compensation and Benefits

Definitions
Compensation:
A money value is presented in return of an employee
efforts doing certain tasks or jobs for definite or
indefinite time frame . It varies in terms of formation and
type presenting based on the nature of job. It is an
obligatory right forced by law.
1- Components of compensation and benefits

Definitions
Benefits:
A certain type of financial or non financial rewards are
presented for the purpose of rewarding & recognition,
to the employee in returns of his efforts doing a job.
Some benefits are obligatory and some are not forced
by Law.

Definitions
Salary:
A money value is presented in return of an employee efforts doing
certain tasks or jobs, on monthly or annually basis. Manly are given to
white collars.
Wage:
A money value is presented in return of an employee efforts doing
certain tasks or jobs, on hourly or daily basis.
Manly are given to Blue collars.

More about Compensation & Benefits
• Compensation & Benefits are also known as Total Rewards
• An exchange of payment from an employer for the services provided by
employees
• Compensation represents both the intrinsic and extrinsic rewards
employees receive for performing their jobs.
• In many organizations, Compensation & Benefits costs are the single
largest operating component.

Extrinsic vs. Intrinsic
Compensation
Total
Compensation
Extrinsic
Compensation
Core
Compensation
Hourly Wage
Annual/Monthly
Salary
Adjustments to
Core
Compensation
Cost of Living
Seniority
Merit
Incentive
Person-Focused
Legally Required
Employee
Benefits
Social Security
Act
Workers Comp.
Law
Family &
Medical Leave
Act.
Discretionary
Emp.Benefits
Health Ins.
Disability Ins.
Life Ins.
Retirement
Plans
Paid time-off
Accommodation
& Enhancement
Intrinsic
Compensation
Job
Characteristics
Skill variety
Task Identity
Task
Significance
Autonomy
Feedback

Components of a Total Compensation
• Financial
• Direct
– wages, salaries, commissions, bonuses
• Indirect
– insurance plans
• life, health, dental, staff meals, laptops & mobiles
– social assistance benefits
• retirement plans, social security
– paid absences
• vacations, holidays, sick leave

• Non-Financial
• The Job
– interesting, challenging, responsible
– opportunity for recognition, advancement
– feeling of achievement
• Job Environment
– policies, supervision, co-workers, status symbols, working
conditions, flextime, compressed work week, job sharing,
telecommuting, flexible benefits programs

• There are two ways to make direct financial payments to
employees:
• you can base them on time or on performance.
• Time-based pay is still the foundation of most employers'
pay plans.

2- Job analysis

Job Analysis
(a process of obtaining all pertinent job facts)
Job Description
•Job Title
•Location
•Job Summary
•Duties
•Machine tools etc.
•Materials etc.
•Supervision
•Working Condition
•Hazards
Job Specification
•Education
•Experience
•Training
•Initiative
•Physical Effort
•Responsibilities
•Communication Skills
•Emotional Characteristics
•Unusual Sensory – Sights etc.
2- Job analysis

Job Analysis
Information
Job Description &
Job Specification
Recruitment
& Selection
Career
Planning
Performance
Appraisal
Health &
Safety
Salary &
Wages
Employee
Discipline
Training &
develop
2- Job analysis

Job Analysis Process
1. Collection of actual information
• Job information
• Physical environment like temperature, noise, dirt, danger or comfortable office facilities
• Jobs’ social environment: whether the work is performed in team, shifts or isolated work
• Financial condition: information relating to wages paid, bonus, incentive scheme, etc.
• Quality of Personnel
• Skill needed to perform the job
• Personality factors
• Experience
2- Job analysis

Job Analysis Process
2. Preparation of job description
a statement showing details of the activities of the job is prepared.
3. Preparation of the job specification
it is a statement showing the minimum acceptable qualities required for a person to be
placed on a job.
4. Report preparation
the job analyst make an analysis with the collected information with regard to
details of activities of the job and the qualities of the person in the job.
5. Approval of the report
Final approval is obtained from top executive after personnel manager approval
and trade union opinion.
2- Job analysis

Importance of Job Analysis
1. Job analysis provides complete knowledge about jobs
2. It is the first step in the selection technique process
3. It gives a complete picture about the job
4. Job analysis is a useful tool for job evaluation
5. It is useful to develop appropriate job design
6. It determines the levels of standard of job performance
7. Useful for job comparison
8. Minimize risks
9. Useful to fix standards
2- Job analysis

Methods used in Job Analysis
• Questionnaire
• Check list
• Interview
• Observation
• Participation
• Technical conference
• Diary
• Records
2- Job analysis

3- A total compensation management system
Compensation systems
•Should reflect the idea that employees are
valued contributors in the success of the
organization.
•Should promote fair treatment.

Some Compensation Strategies promoting fair treatment
1. Relating job worth to differences in job requirements.
2. Recognizing the worth and value of skills and
knowledge.
3. Rewarding employee contributions and results
achieved.
4. Promoting continued employee acquisition and
upgrading of knowledge and skills.

5. Supporting team and work unit cooperative efforts.
6. Designing compensation plans that compete within labor markets.
7. Aligning compensation of all employees with objectives & goals of
organization.
8. Providing a compensation package that enhances current lifestyles
and provides long-term protection for employees.

Attracts
Retains
Motivates

4- Job evaluation: guaranteeing 'internal consistency'
What is Job Evaluation
A job evaluation is a systematic way of determining the
value/worth of a job in relation to other jobs in an
organization. It tries to make a systematic comparison
between jobs to assess their relative worth for the
purpose of establishing a rational pay structure.

The process of job evaluation involves the following steps:
• Gaining acceptance.
• Creating job evaluation committee.
• Finding the jobs to be evaluated.
• Analyzing and preparing job description.
• Selecting the method of evaluation.
• Classifying jobs.

• External Equity: how a job's pay rate in
one company compares to the job's
pay rate in other companies.
• Internal Equity: how fair the job's rate
is when compared to other jobs within
the same company.
Equity
The equity theory of motivation assumes that people have a need for,
values and seek fairness at work . There are four forms of equity:

• Individual Equity: the fairness of an
individual's pay compared with his/her co-
workers earnings for the same or similar
jobs within the company based on each
individual performance.
• Procedural Equity: the perceived fairness of
the processes and procedures used to make
decisions regarding the allocation of pay.

Factors affecting Equity

5- Salary surveys: guaranteeing 'external consistency'
• “External equity exists when employees in an organization perceive that they are being rewarded fairly
in relation to those who perform similar jobs in other organizations”.
• External equity exists when an organization's pay rates are at least equal to the average rates in the
organization’s market or sector.
• Employers want to ensure that they are able to pay
what is necessary to find, keep and motivate an
adequate number of qualified employees. Creating a
compensation structure that starts with competitive
base pay is critical.

• The use of salary surveys is critical in your ability to determine if your compensation
and benefits are comparable to similar roles in other organizations.
• It is important to ensure that the key responsibilities and goals of the roles being
compared are similar; as is the sector the organization is aligned with.

Salary Surveys
• Surveys collecting information about employee
compensation, including salary and benefits, are
commonly called salary surveys.
• Salary surveys are conducted with numerous
employers to determine pay levels for specific
job categories and are generally conducted
either by region, sector or job classification for
the purposes of comparability.

Salary Surveys
• In conjunction with other tools, salary surveys
can provide useful information to attract,
support and retain employees within the
context of an overall HR and organizational
plan.
• When designed and used properly, salary
surveys can provide useful benchmarking
information for comparing salaries and benefits
6- Salary surveys: guaranteeing 'external consistency'5- Salary surveys: guaranteeing 'external consistency'

5- The factor points system for evaluating jobs
The procedure involved may be explained thus:
1. Select key jobs. Identify the factors common to
all the identified jobs such as skill, effort,
responsibility, etc.
2. Divide each major factor into a number of sub
factors. Each sub factor is defined and expressed
clearly in the order of importance, preferably
along a scale.
3. Once the worth of a job in terms of total points is
expressed, the points are converted into money
values keeping in view the hourly/daily wage
rates.

7- Forces impacting compensation and benefits
Legal Consideration
 Compensation policies
 Union influences
 Cost of living & Inflation rates
 Markets Demand & Supply
 Financial positioning ( Ability to pay)
 Internal & External Equity
Basic Factors in determining pay rate in any organization:

7- Forces impacting compensation and benefits
Wage
Mix
Compensation
Policy of Org.
Worth of Job
Employee’s
Relative
Worth
Employer’s
Ability to Pay
Legal
Requirement
Collective
Bargaining
Cost of Living
Area Wage
Rates
Conditions of
Labor Market
Factors that Influence Wage Levels
Internal
Factors
External
Factors

Often times we talk about the importance of a growth mind-set for our young learners but not for the
adult learner. I suggest that having a growth mind-set is key for everyone in the human family. Seems
like a wonderful way to find happiness instead of discouragement, frustration and sadness

Human Resources Management - Afzal Khan

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