Human Resource Management Process

1. University of Wah Chapter 10 Managing Human Resources
BS-CS-4th
‘B’
What is Human Resource Management?
HRM is the management of people working in an organization, it is a subject related to human. is the
management of an organization's workforce, or human resources. It is responsible for the attraction,
selection, training, assessment, and rewarding of employees.
The management function that deals with recruitment, placement, training, development of
organization members.
HRM can be defined as all the practices, systems and procedures implemented to attract,
acquire, develop and manage human resources to achieve the goals of an organization. Simply it
is managing the employment relationship.
Human Resource Management consists of all the actions that an organization takes to attract,
develop, and retain quality employees.
Example of Organization: Starbucks is one of the best known and fastest growing companies in the
world. Starbucks Coffee Company has one of the most experienced and well skilled HR departments.
Importance of “Human Resource Management”:
Human Resource Management is The Heart of All Organizations 15 % success is due to technical skills
and 85 % due to the skills in human engineering.
Staff is the most important resource of an organization.
Human resource is the key ingredient to success.
“Human resource” creates organizational accomplishments and innovations.
As a necessary part of the organizing function of management
o Selecting , training , and evaluating the work force
As an important strategic tool
o HRM helps establish an organization’s sustainable competitive advantage.
Adds value to the firm
o High performance work practices lead to both high individual and high organizational
performance.
Self-managed teams
Decentralized decision making
Training programs to develop knowledge, skills, and abilities
Flexible job assignments
Open communication
Performance-based compensation
Staffing based on person–job and person–organization fit
It helps in selection and recruitment of individuals that are right for a given position in the company
Corporate Level:
For an enterprise effective HRM leads to attainment of its goal efficiently and effectively. HRM helps

2. University of Wah Chapter 10 Managing Human Resources
BS-CS-4th
‘B’
enterprise in the following ways.
a. Hiring required skill set and retaining them through effective human resource planning,
recruitment, selection, placement, orientation and promotion policies.
b. Development of employees by enhancing necessary skills and right attitude among employees
through training, development, performance appraisals etc.
c. HRM also takes care of optimum utilization of available human resource.
d. HRM also ensures that organization has a competent team and dedicated employees in future.
Significance at Professional Level
a. HRM also leads to improved quality of work life, it enables effective team work among employees
by providing healthy working environment. It also contributes to professional growth in various
ways such as
b. By providing opportunities for personal development of an employee, Enabling healthy
relationships among teams and allocating work properly to employees as well as teams.
Significance at Social Level:
a. HRM plays important role in the society, it helps labor to live with pride and dignity by providing
employment which in turn gives them social and psychological satisfaction.
b. HRM also maintains balance between open jobs and job seekers.
Significance at National Level:
HRM plays a very significant role in the development of nation. Efficient and committed human
resource leads to effective exploitation and utilization of nation’s natural, physical and financial
resources. Skilled and developed human resource ensures the development of that country. If
people are underdeveloped then that country will be underdeveloped. Effective HRM enhances
economic growth which in turn leads to higher standard of living and maximum employment.
High performance work practices:
Work practices that maximize the fit between the company's social system and technology. High
performance is key to organizational success.
• Self-managed teams
• decentralization of decision making
• Employment security
• Training programs to develop knowledge, skills, and abilities
• Flexible job assignments
• Open communication
• Performance based compensation
• Staffing based on person job and person organization fit
External Factors Affect Human Resource Management?
There are many factors that would affect human resource management.
However some are considered to be:

3. University of Wah Chapter 10 Managing Human Resources
BS-CS-4th
‘B’
Political Climate: The political climate can have a great affect on any business and subsequent business
departments such as human resource management. If the government decides on spending cuts or
increasing taxes on businesses then this will dramatically affect the running of the business. Department
budgets may have to be trimmed or the department may even have to be completely scrapped.
Economic climate: If there is high inflation employees will demand more and if there is rapid economic
growth then more employment opportunities will be available and in good economical conditions skilled
labor is also easily available.
Environmental Factors Affecting HRM:
Employee Labor Unions
 Organizations that represent workers and seek to protect their interests through collective
bargaining.
 Collective bargaining agreement
– A contractual agreement between a firm and a union elected to represent a bargaining
unit of employees of the firm in bargaining for wage, hours, and working conditions.
Governmental Laws and Regulations
 Limit managerial discretion in hiring, promoting, and discharging employees.
 Affirmative Action: The requirement that organizations take proactive steps to ensure the
full participation of protected groups in its workforce.
HRM Process:
Human Resource (HR) Planning: The process by which managers ensure that they have the right
number and kinds of people in the right places, and at the right times, who are capable of effectively
and efficiently performing their tasks.
Human Resource planning is designed to ensure the future personnel needs will be constantly and
appropriately met.

4. University of Wah Chapter 10 Managing Human Resources
BS-CS-4th
‘B’
 Helps avoid sudden talent shortages and surpluses.
 Steps in HR planning:
– Assessing current human resources
– Assessing future needs for human resources
– Developing a program to meet those future needs
It is accomplished through analysis of
• Internal factors: Current and expected skill needs, vacancies and departmental expansions and
reductions.
• Environmental factors: Labor markets, use of computers to build and maintain information
about employees.
• Human resource planning must be integrated within the organizations strategic plans
• Senior management must emphasize the importance of human resource planning
• Human resource planning must be based on the most accurate information available.
• A clear plan must be developed with associated time-spans and scope of activity.
• Current Assessment:
• Job analysis: Defines jobs and the behaviors to perform them i.e. Knowledge, skills, and abilities
• Job description: A written statement of what a job holder does, how it’s done and why it is done.
• Hiring specification: A statement of the minimum qualifications that a person must possess to
perform a given job successfully.
Recruitment & Decruitment:
Recruitment: The development of a pool of job candidates in accordance with a human resource plan.
It is the process of locating, identifying, and attracting capable applicants.
 Steps in the Recruitment process:
• Internal Search
• Advertisement of a job vacancy.
• Web based advertising.

5. University of Wah Chapter 10 Managing Human Resources
BS-CS-4th
‘B’
• Preliminary contact with potential job candidates.
• Initial screening to create a pool of qualified applicants.
 Methods of Recruitment process:
• External Recruitment
• Internal Recruitment
Decruitment: Techniques for reducing the labor supply within an organization. E.g. firing, layoffs,
transfers, retirements.
Decruitment Options
Selection: The process of screening job applicants to ensure that the most appropriate candidates are
hired.
What is Selection? An exercise in predicting which applicants, if hired, will be (or will not be) successful
in performing well on the criteria the organization uses to evaluate performance.
 Selection errors:
 Reject errors for potentially successful applicants
 Accept errors for ultimately poor performers
Selection Decision Outcomes

6. University of Wah Chapter 10 Managing Human Resources
BS-CS-4th
‘B’
Validity and Reliability:
Validity Reliability
The proven relationship that exists
between a selection device and some
relevant job criterion
 High tests scores equate to high job
performance; low scores to poor
performance.
The ability of a selection device to
measure the same thing consistently
 Individual test scores obtained with a
selection device are consistent over
multiple testing instances.
Selection Criteria:
• Testing: To measure the job and learning skills of the candidate.
• Interviews: Although used almost universally, managers need to approach interviews carefully.
• Initial Screening: A type of interview in which questions are asked about experience of the
candidate and his salary expectations.
• Panel and Serial interviews: To evaluate a candidate for the job.
• In Depth Selection Interviews: These interviews are conducted by the manager to whom the
applicant will report. The objective of this step is to find out more about applicant as an individual.
• Background Checks: Selection committee confirms the truthfulness of application Résumé or of the
application form. The previous supervisor of the applicant is called to confirm this information and
to get his career highlights.
• Physical Examination: It is conducted to ensure the physical fitness of applicant. Useful for physical
requirements and for insurance purposes related to pre-existing conditions.
Type of test tools:
• Application Forms
• Written Tests
• Performance Simulations
• Interviews
• Background Investigations
• Physical examinations
Realistic Job Preview (RJP): A preview of the job that provides both positive and negative information
about the job and the company.
 Encourages mismatched applicants to withdraw.
 Aligns successful applicants’ expectations with actual job conditions; reducing turnover.

7. University of Wah Chapter 10 Managing Human Resources
BS-CS-4th
‘B’
Providing Employees with Needed Skills And Knowledge:
Orientation: Introduction of a new employee to his/her job and the organization.
A program designed to help employees fit smoothly into an organization; also called socialization.
Orientation or socialization is designed to provide new employees with the information needed to
function comfortably and effectively in the organization.
Work-unit orientation:
 Familiarizes new employee with work-unit goals
 Clarifies how his or her job contributes to unit goals
 Introduces he or she to his or her coworkers
Organization orientation:
 Informs new employee about the organization’s objectives, history, philosophy, procedures, and
rules.
 Includes a tour of the entire facility.
Employee Training: A process designed to maintain or improve current job performance.
Types of Training:
Type Includes
General
Communication skills, computer systems application and programming, customer
service,
Executive development, management skills and development, personal growth,
sales,
Supervisory skills, and technological skills and knowledge
Specific
Basic life/work skills, creativity, customer education,
diversity/cultural awareness, remedial writing, managing change,
leadership, product knowledge, public speaking/presentation
skills, safety, ethics, sexual harassment, team building, wellness,
and others

8. University of Wah Chapter 10 Managing Human Resources
BS-CS-4th
‘B’
Employee Training Methods:
Employee Performance Management:
• Performance Management System: A process of establishing performance standards and
appraising employee performance in order to arrive at objective HR decisions and to
provide documentation in support of those decisions.
Performance Appraisal: A process of systematically evaluating performance and providing
feedback upon which performance adjustments can be made.
Performance appraisal should be based on job analysis, job description, and job specifications.
Advantages and Disadvantages of Performance Appraisal Methods:
Method Advantage Disadvantage
Written essays Simple to use More a measure of evaluator’s writing ability than
of employee’s actual performance

9. University of Wah Chapter 10 Managing Human Resources
BS-CS-4th
‘B’
Critical incidents Rich examples;
behaviorally based
Time-consuming; lack quantification
Graphic rating scales Provide quantitative
data; less time-
consuming than
others
Do not provide depth of job behavior assessed
BARS Focus on specific and
measurable job
behaviors
Time-consuming; difficult to develop
Multiperson comparisons Compares employees
with one another
Unwieldy with large number of employees; legal
concerns
MBO Focuses on end goals;
results oriented
Time-consuming
360-degree appraisals 360 Thorough Time-consuming
Compensation and Benefits:
• Benefits of a Fair, Effective, and Appropriate Compensation System
 Helps attract and retain high-performance employees
 Impacts on the strategic performance of the firm
• Types of Compensation
 Base wage or salary
 Wage and salary add-ons
 Incentive payments
 Skill-based pay: skill based pay systems reward employee for the job skills and competencies
they demonstrates
 Variable pay system: In which an individual’s compensation is contingent on performance.

10. University of Wah Chapter 10 Managing Human Resources
BS-CS-4th
‘B’
Factors That Influence Compensation and Benefits:
Career Development:
Career Defined: The sequence of positions held by a person during his or her lifetime.
 The Way It Was
Career Development
Provided for information, assessment, and training
Helped attract and retain highly talented people
 Now
Individuals—not the organization—are responsible for designing, guiding, and developing their own
careers.
 Boundary less Career
 A career in which individuals, not organizations, define career progression and organizational
loyalty.

11. University of Wah Chapter 10 Managing Human Resources
BS-CS-4th
‘B’
Contemporary Issues in Managing Human resources:
Managing Downsizing: The planned elimination of jobs in an organization
Provide open and honest communication.
Provide assistance to employees being downsized.
Reassure and counseling to surviving employees.
Managing Work Force Diversity:
Widen the recruitment net for diversity
Ensure selection without discrimination
Provide orientation and training that is effective
Tips for Managing Downsizing:
 Communicate openly and honestly:
Inform those being let go as soon as possible
Tell surviving employees the new goals and expectations
Explain impact of layoffs
 Follow any laws regulating severance pay or benefits
 Provide support/counseling for surviving employees
 Reassign roles according to individuals’ talents and backgrounds
 Focus on boosting morale:
Offer individualized reassurance
Continue to communicate, especially one-on-one
Remain involved and available
 Have a plan for the empty office spaces/cubicles so it isn’t so depressing for surviving employees.