2. Human Resource Management
The integration of all
processes, programs, and systems in an
organization that ensure staff are acquired and
used in an effective way
2
3. Human Resource Management (Contd.)
HR is multidisciplinary: It applies the disciplines of
Economics (wages, markets, resources),
Psychology (motivation, satisfaction),
Sociology (organization structure, culture) and
Law (min. wage, labor contracts)
What HR Professionals Do?
HR planning
Recruitment & Selection
Training and development
Compensation & Performance review
Labor relations
3
5. Human Resource Planning
The process of systematically
reviewing HR requirements to ensure
that the required number of
employees, with the required skills, are
available when they are needed
5
6. HR Planning
We have found the gap, how do we fill this void?
Internal Labour Supply
Skill Inventory
Succession Planning
Replacement Planning
– Inventory Chart
• Present & Future staffing situations
• Helps in retention & expulsion strategy
External Labour Supply
6
7. Job Analysis
(Functional Job Analysis, Position analysis questionnaire)
A Basic Human Resource Management Tool
Tasks
Responsibilities
Duties
Human Resource
Planning
Recruitment
Selection
Training and
Development
Job
Descriptions
Job
Analysis
Performance Appraisal
Compensation and
Benefits
Job
Specifications
Safety and Health
Employee and Labor
Relations
Knowledge
Skills
Abilities
Legal Considerations
7
Job Analysis for Teams
8. Definitions
Job - Consists of a group of tasks that must be
performed for an organization to achieve its goals
Position - Collection of tasks and responsibilities
performed by one person; there is a position for every
individual in an organization
Job analysis - Systematic process of determining the
skills, duties, and knowledge required for performing jobs
in an organization (functional job analysis , position
analysis questionnaire)
Job description – document providing information
regarding tasks, duties, and responsibilities of job
Job specification – minimum qualifications to perform a
particular job
8
9. Recruitment
Process of
locating, identifying, and
attracting capable
candidates
Can be for current or future
needs
Critical activity for some
corporations.
What sources do we use for
recruitment
9
12. SELECTION
A series of steps from initial applicant
screening to final hiring of the new
employee.
Selection process.
Step 1 Completing application materials.
Step 2 Conducting an interview.
Step 3 Completing any necessary tests.
Step 4 Doing a background investigation.
Step 5 Deciding to hire or not to hire.
12
13. Selection process
Step 1 Completing application materials.
Gathering information regarding an applicant’s background and
experiences.
Typical application materials.
Traditional application forms.
Résumés.
Sometimes tests may be included with application materials.
Step 2 Conducting an interview.
Typically used though they are subject to perceptual distortions.
Interviews can provide rough ideas concerning the person’s fit with
the job and the organization.
13
14. Selection process
Step 3 Completing any necessary tests.
Administered before or after the interview.
Common examples of employment tests.
Cognitive, clerical, or mechanical aptitudes or
abilities.
Personality.
Step 4 Doing a background investigation.
Can be used early or late in selection process.
Background investigations include:
Basic level checks.
Reference checks.
14
15. Selection process
Step 5 Deciding to hire or not to hire.
Draws on information produced in preceding selection steps.
A job offer is made.
A physical examination may be required if it is relevant to job
performance.
Negotiation of salary and/or benefits for some jobs.
Step 6 Socialization.
The final step in the staffing process.
Involves orienting new employees to:
The firm.
The work units in which they will be working.
The firm’s policies and procedures.
The firm’s organizational culture.
15
18. Why Conduct Performance Appraisals?
Make decisions about that person's future
with the organization
Identify training requirements
Employee improvement
Pay, promotion, and other personnel
decisions
Research
Validation of selection techniques and criteria
18
19. A Model of Performance Appraisal
Skills/Activities/Output
Performance Appraisal System
Reward/Training/Punishment
19
20. Techniques for Evaluating Managers
Evaluation by superiors
Evaluation by colleagues
Peer ratings tend to be more favorable for
career development than for promotion
decisions
Self-evaluation
Self-ratings suffer from leniency
Subordinate evaluation
Effective in developing leadership
Leads to improved performance
360 degree feedback (multi-source)
20
22. Key Steps in Implementing 360° Appraisal
Top management communicates the goals
Employees and managers are involved in the
development of the appraisal criteria and process.
Employees are trained in giving & receiving feedback.
Employees are informed of the nature of the 360
appraisal instrument and process.
The 360 system undergoes pilot testing
Management continuously reinforces the goals of the
360 appraisal and is ready to change the process
when necessary.
22
24. Relative and Absolute Judgment
Relative Judgment
An appraisal format that asks supervisors to
compare an employee's performance to the
performance of other employees doing the same
job.
Absolute Judgment
An appraisal format that asks supervisors to make
judgments about an employee’s performance
based solely on performance standards.
24
25. Rating Methods
Performance rating scales
Supervisors indicate how or to what degree a worker possesses a
relevant job characteristic
Ranking technique
Supervisors list the workers in order from highest to lowest
Paired-comparison technique
Compares the performance of each worker with that of every other
person in the group
Forced choice technique
Raters are presented with groups of descriptive statements and are
asked to select the phrase in each group that is most descriptive
of the worker being evaluated
25
26. Rating Methods
Behaviorally anchored rating scales (BARS)
Appraisers rate critical employee behavior
Critical-incident behaviors are established
These behaviors are used as standards for appraising effectiveness
The BARS items can be scored objectively by indicating whether the
employee displays that behavior
Behavioral observation scales (BOS)
Appraisers rate the frequency of critical employee behaviors
The ratings are assigned on a five point scale
The evaluation yields a total score
Management by objectives (MBO)
26
29. Concept of Organizational Change
Defined as adoption of a new idea or behavior
by an organization.
Organizations need to continuously adapt to
new situations if they are to survive and
prosper
29
30. Planned and Unplanned Organizational
Changes
Organizational
Change
Planned Changes
• Changes in products and
services
• Changes in administrative
systems
• Changes in organizational
size or structure
• Introduction of new
technologies
• Advances in information
processing and
communication
Unplanned Changes
• Changing employee
demographics
• Performance gaps
• Governmental regulations
• Economic competition in the
global arena
30
32. Resistance to Change - Forms
Overt and immediate
Voicing complaints, engaging in job
actions
Implicit and deferred
Loss of employee loyalty and
motivation, increased errors or
mistakes, increased absenteeism
32
34. Resistance to Change
Structural &
Group Inertia
Threat to establish
resource allocation
Organization
Limited Focus
Threat to Expertise
Threat to establish
power relationship
34
37. Unfreezing the Status Quo
Desired
State
Restraining
Forces
Status
Quo
Driving
Forces
Time
37
38. Definition of OD
OD is a planned process of change in an
organization’s culture through the utilization
of behavioral science
technology, research, and theory.
38
39. Organization Development is...
a systemwide application and transfer of
behavioral science knowledge to the
planned development, improvement, and
reinforcement of the
strategies, structures, and processes that
lead to organization effectiveness.
39
40. Organizational Development - The
Premises
Respect for people
Trust and support
Power equalization
Confrontation
Participation
40
43. Manager Development
On the Job Training
Planned Progression
Job Rotation
Creation of “assistant-to”
Temporary promotion
Committees
Off the Job
Training
Conference
MDPs
Business Simulations
43
45. Sources of Conflict
Competition for scarce resources
Time pressure
Unreasonable standards, policies, rules or
procedures
Communication breakdowns
Personality clashes
Ambiguous or overlapping jurisdictions
Unrealized expectations
45
48. Training and Development (T&D)
Training - Designed to provide learners with the knowledge and
skills needed for their present jobs – formal and informal
Development - Involves learning that goes beyond today's job –
more long-term focus
Learning Organization – firms that recognize critical importance
of continuous performance-related training and development an
take appropriate action
48
49. Factors Influencing T&D
Top management support
Commitment from specialists and generalists
Technological advances
Organizational complexity
Learning style
49
50. The Training and Development
(T&D) Process
Determine T&D Needs
Establish Specific
Objectives
Select T&D Method(s)
Implement T&D Programs
Evaluate T&D Programs
50
51. Determining Training and Development
Needs
In order to compete
effectively, firms must keep
employees well trained.
51
52. Establishing Training and Development
Objectives
Desired end results
Clear and concise objectives must be formulated
52
53. T&D Methods
Classroom Programs Distance Learning
Mentoring
Coaching
Role Playing
Simulations
and
Videoconferencing
E-learning
On-the-Job Training
Job Rotation
Internships
53
54. Classroom Programs
Continue to be
effective for many
types of employee
training
May incorporate some
of other methods
54
55. Mentoring
Approach to advising, coaching, and
nurturing, for creating practical relationship to
enhance individual career, personal, and
professional growth and development
Mentor may be located elsewhere in
organization or in another firm
Relationship may be formal or informal
55
57. Role Playing
Respond to specific problems they may
actually encounter in jobs
Used to teach such skills as:
interviewing
grievance handling
performance appraisal reviews
conference leadership
team problem solving
communication
57
59. Distance Learning and Videoconferencing
Interactive training
Used to:
increase access to training
ensure consistency of instruction
reduce cost of delivering T&D
programs
59
61. On-the-Job Training
Informal approach that permits employee to learn job
tasks by actually performing them
Most commonly used T&D method
No problem transferring what has been learned to the
task
61
62. Job Rotation
Employees move from one
job to another to broaden
experience
Helps new employees
understand variety of jobs
62
63. Internships
Training approach where university students divide their
time between attending classes and working for an
organization
Excellent means of viewing potential permanent employee
at work
Students are enabled to integrate theory with practice
63
64. Management Development
All learning experiences resulting in upgrading of
skills and knowledge needed in current and future
managerial positions
Imperative managers keep up with latest
developments in their fields while managing everchanging workforce in a dynamic environment
Requires personal commitment of individual
manager
64
65. Reasons to Conduct Management
Training Outside of the Company
An outside perspective
New viewpoints
Possibility of taking
executives out of work
environment
Exposure to faculty
experts and research
Broader vision
65
66. Reasons to Conduct Management
Training Inside of the Company
Training more specific to
needs
Lower costs
Less time
Consistent, relevant material
More control of content and
faculty
66
67. Orientation
Initial T&D effort designed
for employees
Strives to inform them
about company, job and
workgroup
On-boarding
67
69. Survey Feedback Description
Process of collecting data from organizational
unit through use of questionnaires, interviews
and other objective data
Can create working environments that lead to
better working relationships, greater
productivity and increased profitability
69
70. Quality Circles
Groups of employees who
voluntarily meet regularly
with their supervisors to
discuss problems
Investigate causes
Recommend solutions
70
71. Team Building
Conscious effort to develop
effective workgroups
Uses self-directed teams
Small group of employees
responsible for an entire work
process
Members work together to
improve their operation
71
72. Laboratory/ Sensitivity / T-Group Training
Participants learn about themselves and
how others perceive them
No agenda, leaders, authority, power
positions
People learn through dialogue
Participants encouraged to learn about
themselves and others in group
Also called T-group training
72
73. Evaluating Human Resource
Development
Ask participant’s opinions
Determine extent of learning
Will training change behavior?
Have T&D objectives been accomplished?
Benchmarking
Evaluation difficult, but necessary
73
75. Introduction
Directing/Direction is a function of management performed by
top level management in order to achieve organizational
goals. It is very important and necessary function of
management.
Management has to undertake various activities like, guide
people, inspired and lead them as well as supervision of their
activity is required in order to achieve desired results.
75
76. Meaning and Definition
Direction consists of the process and techniques
utilized in issuing instructions and making certain
that operations are carried as originally planned.
“Directing involves determining the
course, giving order and instruction and
providing dynamic leadership” – Marshall
“Activating means and moving into actionsupplying simulative power to the group”- G.R
Terry
76
77. Directing involves…..
Telling people what is to be done and explaining how to
do it.
Issuing instructions and orders to subordinates.
Inspiring them to contribute towards the achievement of
objectives,
Supervising their activities;
Providing leadership and motivation
77
82. Supervision implies expert overseeing of
subor-dinates -at work in order to guide and regulate their
efforts. Every manager has to supervise the work of his
subordinates to see that they do their work as desired. But
supervision is particularly important at the operat-ing level
of management or at the low-level management.
The supervisor is in direct personal contact with the
workers and he acts as the link between workers and
manage-ment. He communicates the policies, plans and
orders of management to the workers. He also brings
workers' grievances, suggestions and appeals to the notice
of management. Effective supervision is essential for the
accomplishment of desired goals.
82
83. The direction of people at work is the most
difficult of all production related tasks. Supervision
means constantly functioning in a state of flux and
ambiguity and few people feel satisfaction from
being a supervisor. The reason this is worth
mentioning is because many new supervisors feel
that something is "wrong" when they are
constantly faced with problems relating to their
workforce. This state of flux and ambiguity is
normal to supervision and success is measured in
percentages rather than absolutes.
83
84. All work requires the coordination of effort. We accomplish
this by giving workers assigned tasks and assigned time in which
they are to accomplish these tasks. But just giving instructions is
not enough. You must give clear, specific instructions on what is to
be done, monitor the worker in the course of their efforts and hold
them accountable for specific results. These three elements;
specific instructions on what is to be done, monitoring them
periodically to make sure it is being done, and making the
employee accountable for the results are the core of the
supervisory process. It is the responsibility of the supervisor to do
this. Workers who do not receive good instruction and direction;
who are allowed to do work incorrectly without correction and who
do not have a review of their performance have not had proper
supervision and hence have not been allowed to perform properly.
The purpose of supervision is to ensure that subordinates
perform their tasks according to prescribed procedures and as
efficiently as possible.
84
85. In Supervising
1. Set realistic expectations. The expectations that are often
left unstated need to be openly discussed.
2. Establish clear goals. Goal setting gives purpose and
direction to the work of the individual subordinates as well as
to the manager. It ensures alignment to corporate strategy.
3. Communicate. Successful communication is a learned
process that must accommodate individual needs. As the
boss, you establish the norms. Solicit feedback, encourage
discussion (especially alternate points of view), and be
accessible.
85
86. 4. Support. A manager is not made by title alone. Anyone
new to a supervisory position needs to develop certain
professional skills. Your mentoring will be the key to success.
5. Be the Model Manager . Lead the way! Have others do as
you say and do.
86
88. What's Coordination?
Co-ordination is the
unification, integration, synchronization of the efforts of
group members so as to provide unity of action in the
pursuit of common goals. It is a hidden force which binds
all the other functions of management.
According to Mooney and Reelay, “Co-ordination is orderly
arrangement of group efforts to provide unity of action in
the pursuit of common goals”.
According to Charles Worth, “Coordination is the
integration of several parts into an orderly hole to achieve
the purpose of understanding”.
88
89. Management seeks to achieve co-ordination through its
basic functions of planning, organizing, staffing, directing
and controlling. That is why, co-ordination is not a separate
function of management because achieving of harmony
between individuals efforts towards achievement of group
goals is a key to success of management. Co-ordination is
the essence of management and is implicit and inherent in
all functions of management.
A manager can be compared to an orchestra conductor
since both of them have to create rhythm and unity in the
activities of group members.
89
92. Organizational Control
Managers must monitor and evaluate:
Is the firm efficiently converting inputs into
outputs?
Are units of inputs and outputs measured
accurately?
Is product quality improving?
Is the firm’s quality competitive with other
firms?
Are employees responsive to customers?
Are customers satisfied with the services
offered?
Are our managers innovative in outlook?
Does the control system encourage risktaking?
92
93. Control Systems
Control Systems
Formal, target-setting, monitoring, evaluation
and feedback systems that provide managers
with information about whether the
organization’s strategy and structure are
working efficiently and effectively.
93
11-93
94. Control Systems
A good control system should:
be flexible so managers can respond as
needed.
provide accurate information about the
organization.
provide information in a timely manner.
94
96. Types of Control
Feedforward Controls
Used to anticipate problems before they arise
so that problems do not occur later during the
conversion process
Giving stringent product specifications to
suppliers in advance
IT can be used to keep in contact with suppliers
and to monitor their progress
96
97. Types of Control
Concurrent Controls
Give managers immediate feedback on how
efficiently inputs are being transformed into
outputs
Allows managers to correct problems as
they arise
97
11-97
98. Types of Control
Feedback Controls
Used to provide information at the output stage
about customers’ reactions to goods and
services so that corrective action can be taken
if necessary
98
11-98
100. The Control Process
1.
Establish standards of performance, goals, or
targets against which performance is to be
evaluated.
Managers at each organizational level need to
set their own standards.
100
101. The Control Process
2.
Measure actual performance
Managers can measure outputs resulting
from worker behavior or they can measure
the behavior themselves.
The more non-routine the task, the harder
it is to measure behavior or outputs
101
102. The Control Process
3.
Compare actual performance against chosen
standards of performance
Managers evaluate whether – and to what
extent – performance deviates from the
standards of
performance
chosen in step 1
102
103. The Control Process
4.
Evaluate result and initiate corrective action if
the standard is not being achieved
If managers decide that the level of
performance is unacceptable, they must try
to change the way work activities are
performed to solve the problem
103
105. Financial Measures of Performance
Profit Ratios –
measure how efficiently managers are using the
organization’s resources to generate profits
Return on Investment (ROI) –
most commonly used financial performance measure
organization’s net income before taxes divided by its total
assets
105
11-105
106. Financial Measures of Performance
Operating margin
calculated by dividing a companies operating
profit by sales revenue
Provides managers with information about
how efficiently an organization is utilizing its
resources
106
107. Financial Measures of Performance
Liquidity ratios
measure how well managers have protected
organizational resources to be able to meet
short-term obligations
Leverage ratios
measure the degree to which managers use
debt or equity to finance ongoing operations
107
108. Financial Measures of Performance
Activity ratios
provide measures
of how well
managers are
creating value from
organizational
assets
108
109. Output Control
Organizational Goals
Each division within the firm is given specific
goals that must be met in order to attain overall
organizational goals.
Goals should be set appropriately so that
managers are motivated to accomplish them
109
113. Problems with Output Control
Managers must create output standards that motivate at all
levels
Should not cause managers to behave in inappropriate ways
to achieve organizational goals
113
114. Behavior Control
Direct supervision
managers who actively monitor and observe the behavior
of their subordinates
Teach subordinates appropriate behaviors
Intervene to take corrective action
Most immediate and potent form of behavioral control
Can be an effective way of motivating employees
114
115. Problems with Direct Supervision
Very expensive because a manager can personally manage
only a relatively small number of subordinates effectively
Can demotivate subordinates if they feel that they are under
such close scrutiny that they are not free to make their own
decisions
115
117. Management by Objectives
Management by Objectives (MBO)
formal system of evaluating subordinates for
their ability to achieve specific organizational
goals or performance standards and to
meet operating
budgets
117
118. Management by Objectives
1.
2.
3.
Specific goals and objectives are established at
each level of the organization
Managers and their subordinates together
determine the subordinates’ goals
Managers and their subordinates periodically
review the subordinates’ progress toward
meeting goals
118
119. Bureaucratic Control
Bureaucratic Control
Control through a system of rules and standard
operating procedures (SOPs) that shapes and
regulates the behavior of
divisions, functions, and individuals.
119
11-119
120. Bureaucratic Control
Problems with Bureaucratic Control
Rules easier to make than than discarding
them, leading to bureaucratic “red tape” and
slowing organizational reaction times to
problems.
Firms become too standardized and lose
flexibility to learn, to create new ideas, and
solve to new problems.
120
121. Clan Control
Clan Control
The control exerted on individuals and groups
in an organization by shared
values, norms, standards of behavior, and
expectations.
121