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1Suresh Muchipalli
Principles of
Human
Resource
Management
2Suresh Muchipalli
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Suresh Muchipalli
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3Suresh Muchipalli
Training AgendaTraining Agenda
1.1. HR Management : An OverviewHR Management : An Overview
2.2. HR Planning and RecruitmentHR Planning and Recruitment
3.3. Employee SelectionEmployee Selection
4.4. Training and DevelopmentTraining and Development
5.5. Performance ManagementPerformance Management
6.6. Career ManagementCareer Management
4Suresh Muchipalli
Human ResourceHuman Resource
Management : An OverviewManagement : An Overview
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HR Management CycleHR Management Cycle
Recruitment &
Selection
Training &
Development
Performance
Management
Reward
Management
Career
Management
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HR Strategy and Business ResultHR Strategy and Business Result
Recruitment &
Selection
Training &
Development
Performance
Management
Reward
Management
Career
Management
HR
STRATEGY
BusinessBusiness
StrategyStrategy
BusinessBusiness
ResultResult
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Manpower Planning &
Employee Recruitment
8Suresh Muchipalli
Manpower PlanningManpower Planning
Company StrategyCompany Strategy
What staff do we
need to do the
job?
What staff is
available within
our
organization?
Is there a
match?
If not, what type of people
do we need, and how
should we recruit them?
Job Analysis
• Performance
appraisal
• Company data
banks
• Training
• Employee
management and
developmentWhat is impact
on wage and
salary program?
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Manpower PlanningManpower Planning
The financialThe financial
resourcesresources
available toavailable to
youryour
organizationorganization
Factors in Forecasting PersonnelFactors in Forecasting Personnel
RequirementsRequirements
ProjectedProjected
turnover (as aturnover (as a
result ofresult of
resignation andresignation and
terminations)terminations)
Quality and nature ofQuality and nature of
your employees (inyour employees (in
relation to what yourelation to what you
see as the changingsee as the changing
need of yourneed of your
organization)organization)
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Technique to Determine Number of RecruitsTechnique to Determine Number of Recruits
• Study of a firm’s past employment needs
over a period of years to predict future
needs
Trend
Analysis
Ratio
Analysis
• A forecasting technique for
determining future staff needs by using
ratios between sales volume and
number of employees needed
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Recruitment from External ResourcesRecruitment from External Resources
• Recruiting new staff from external sources will be influenced
by several factors, namely :
When the economic conditions are
relatively difficult, there will usually be
an oversupply, or the number of
applicants will much higher than the
demand. In such a case, the company
will find it relatively easier to select new
employees from the large number of
applicants.
Macro-
Economic
Conditions
of a Nation
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When the sector is one that is
considered a ‘rare’ sector, the company
will have more difficulty in recruiting
staff for this sector. For example,
computer technology, or cellular
engineering.
Availability
of Manpower
in Desired
Sectors
Recruitment from External ResourcesRecruitment from External Resources
13Suresh Muchipalli
It will tend to be easier for a company
to find and recruit the best people if
the company has a good reputation,
therefore the best fresh graduates will
flock to apply to the company.
Example : Google, McKinsey or
Microsoft.
Company
Reputation
Recruitment from External ResourcesRecruitment from External Resources
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• Some employers use a recruiting yield pyramid to
determine the number of applicants they must generate
to hire the required number of new employees.
• Example of Recruitment Curve:
• 1200 - Leads generated
• 200 - Candidates invited
• 150 - Candidates interviewed
• 100 - Offers made
• 50 - New hires
Recruitment Yield PyramidRecruitment Yield Pyramid
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Recruitment SourcesRecruitment Sources
Advertising (newspaper,
magazine, internet)
College
Recruitment
Recruitment Agent
(headhunter)
RecruitmentRecruitment
SourcesSources
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Employee Selection
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Basic Concept of Selection TestsBasic Concept of Selection Tests
The quality of an employee selection test is determined by
three main factors, namely :
1.1. Criterion Validity :Criterion Validity : A type of validity based on showing
that scores on the test (“predictors”) are related to job
performance (“criterion”).
2.2. Content Validity :Content Validity : A test that is “content valid” is one in
which the test contains a fair sample of the tasks and
skills actually needed for the job in question.
3.3. ReliabilityReliability : The consistency of scores obtained by the
same person when retested with identical or equivalent
test.
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Some Types of Selection TestSome Types of Selection Test
1. Cognitive Ability Test
2. Personality Test
3. Interview
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Cognitive Ability TestCognitive Ability Test
• Cognitive Abilities Tests: Paper and pencil or
individualized assessment measures of an
individual's general mental ability or intelligence.
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Advantages of Cognitive Ability TestAdvantages of Cognitive Ability Test
• highly reliable
• verbal reasoning and numerical tests have shown high
validity for a wide range of jobs
• the validity rises with increasing complexity of the job
• may be administered in group settings where many
applicants can be tested at the same time
• scoring of the tests may be completed by computer
scanning equipment
• lower cost than personality tests
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Disadvantages of Cognitive Ability TestDisadvantages of Cognitive Ability Test
• non-minorities typically score one standard deviation
above minorities which may result in adverse impact
depending on how the scores are used in the selection
process
• differences between males and females in abilities (e.g.,
knowledge of mathematics) may negatively impact the
scores of female applicants
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Personality TestPersonality Test
• Personality Tests: A selection procedure measure
the personality characteristics of applicants that are
related to future job performance.
• Personality tests typically measure one or more of
five personality dimensions: extroversion,extroversion,
emotional stability, agreeableness,emotional stability, agreeableness,
conscientiousness, and openness to experience.conscientiousness, and openness to experience.
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Advantages of Personality TestAdvantages of Personality Test
• can result in lower turnover due if applicants are selected
for traits that are highly correlated with employees who
have high longevity within the organization
• can reveal more information about applicant's abilities
and interests
• can identify interpersonal traits that may be needed for
certain jobs
24Suresh Muchipalli
Disadvantages of Personality TestDisadvantages of Personality Test
• difficult to measure personality traits that may not be well
defined
• responses by applicant may be altered by applicant's
desire to respond in a way they feel would result in their
selection
• lack of diversity if all selected applicants have same
personality traits
• lack of evidence to support validity of use of personality
tests
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InterviewInterview
• Interviews: A selection procedure designed to predict
future job performance on the basis of applicants'
oral responses to oral inquiries.
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Advantages of InterviewAdvantages of Interview
• useful for determining if the applicant has requisite
communicative or social skills which may be necessary for
the job
• can assess the applicant's job knowledge
• can be used for selection among equally qualified
applicants
• enables the supervisor and/or co-workers to determine if
there is compatibility between the applicant and the
employees
• allows the applicant to ask questions that may reveal
additional information useful for making a selection
decision
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Disadvantages of InterviewDisadvantages of Interview
• subjective evaluations are made
• decisions tend to be made within the first few minutes of
the interview with the remainder of the interview used to
validate or justify the original decision
• interviewers form stereotypes concerning the
characteristics required for success on the job
• research has shown disproportionate rates of selection
between minority and non-minority members using
interviews
• negative information seems to be given more weight
• not as reliable as tests
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Training & Development
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Training
Need
Analysis
Training
Objectives
Training
Delivery
Training
Evaluation
Training ProcessTraining Process
What are
the training
needs for
this person
and/or job?
Objective
should be
measurable
and
observable
Techniques
include on-
the-job-
training,
action
learning, etc.
Measure
reaction,
learning,
behavior,
and results
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Assessing Training NeedsAssessing Training Needs
Task Analysis A detailed analysis of a job to
identify the skills required, so
that an appropriate training
program can be instituted
Competency
Analysis
Careful study of competency level
to identify a deficiency and then
correct it with a training program, or
some other development
intervention.
31Suresh Muchipalli
Competency AnalysisCompetency Analysis
Required
competency
level for certain
position
Competency
Gap
Competency
Assessment
Current
competency
level of the
employee
Training andTraining and
DevelopmentDevelopment
ProgramProgram
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Competency Profile Per PositionCompetency Profile Per Position
1 2 3 4 5
Communication Skills
Public Speaking
Leadership
Training Need Analysis
Material Development
Training Evaluation
Communication Skills
Interview Skills
Analytical Thinking
Understand Selection Tools
Teamwork
Customer Orientation
Recruitment
Supervisor
Required Level
Required CompetencyPosition
Training &
Development
Manager
Score Required
Competency Type
33Suresh Muchipalli
Position
Competency
Requirements
Relevant Training Modules
Leadership • Leadership I
• Communication Skills I
• The Art of Motivating Employees
• Providing Effective Feedback
SUPERVISOR
Achievement
Orientation
• Goal Setting Technique
• Work Motivation
• Planning & Organizing
• Continuous Self Improevement
Managerial competency 1 2 3 4
Leadership Required Level
Actual Level
Achievement Orientation
Teamwork
Planning & Organizing
Functional competency 1 2 3 4
Mechanical Engineering
Mechanical Equipment Maintenance
Competency Profile Per PositionCompetency Profile Per Position
34Suresh Muchipalli
Training Matrix for Competency DevelopmentTraining Matrix for Competency Development
Communication Skills V
Leadership V
Teamwork V
Achievement Orientation V
Customer Focus V
Job Functional Skills V
Communication Skills V
Leadership V
Teamwork V
Achievement Orientation V
Customer Focus V
Strategic Thinking V
Problem Solving & Decision Making V
Job Functional Skills V
Position Managerial Competency
Supervisor
Manager
Productive
Communication
Series
OnBecoming
EffectiveLeader1
OnBecoming
EffectiveLeader2
ServiceExcellence
forCustomer
Professional
SeminarSeries
Achievement
MotivationTraining
CreativeProblem
Solving
Strategic
Management
BuildingProductive
Teamwork
V = compulsory training
Training Title
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Enhance Training EffectivenessEnhance Training Effectiveness
Make theMake the
materialmaterial
meaningfulmeaningful
Provide forProvide for
transfer totransfer to
learninglearning
MotivateMotivate
the traineethe trainee
TrainingTraining
EffectivenessEffectiveness
36Suresh Muchipalli
Enhance Training EffectivenessEnhance Training Effectiveness
Make theMake the
materialmaterial
meaningfulmeaningful
• At the start of training, provide the
trainees with a bird’s-eye view of the
material to be presented. Knowing the
overall picture facilitates learning.
• Use a variety of familiar examples when
presenting material
• Organize the material so that it is
presented in a logical manner and in
meaningful units
• Try to use terms and concepts that are
already familiar to trainees
• Use as many visual aids as possible
37Suresh Muchipalli
Enhance Training EffectivenessEnhance Training Effectiveness
Provide forProvide for
transfer totransfer to
learninglearning
• Maximize similarity between the training
situation and the work situation
• Provide adequate training practice
• Identify each feature of the step in the
process
38Suresh Muchipalli
Enhance Training EffectivenessEnhance Training Effectiveness
MotivateMotivate
the traineethe trainee
• People learn best by doing. Try to
provide as much realistic practice as
possible
• Trainees learn best when correct
response on their part are immediately
reinforced.
• Trainees learn best when they learn at
their own pace. If possible, let trainees
pace themselves.
39Suresh Muchipalli
Type of Training ProgramType of Training Program
Formal courseFormal course
OFF THE JOBOFF THE JOB
SimulationSimulation
Wilderness TripWilderness Trip
• Does not interfere with job
• Provides for fact learning
• Helps transfer of learning
• Creates lifelike situations
• Builds teams
• Builds self-esteem
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Type of Training ProgramType of Training Program
Job instructionJob instruction
trainingtraining
ON THE JOBON THE JOB
ApprenticeshipApprenticeship
trainingtraining
Job rotationJob rotation
MentoringMentoring
• Facilitates transfer of learning
• Does not require separate facilities
• Does not interfere with real job performance
• Provides extensive training
• Gives exposure to many jobs
• Allows real learning
• Is informal
• Is integrated into job
41Suresh Muchipalli
Evaluation of Training EffectivenessEvaluation of Training Effectiveness
Level 1 - Reaction
Level 2 - Learning
Level 3 – Behavior
Application
Level 4 – Business
Impact
Four LevelsFour Levels
of Trainingof Training
EffectivenessEffectiveness
42Suresh Muchipalli
Evaluation of Training EffectivenessEvaluation of Training Effectiveness
Test the trainees to determine if
they learned the principles,
skills, and facts they were to
learn.
Evaluate trainees’ reactions to
the program. Did they like the
program? Did they think it
worthwhile?
Level 1 -Level 1 -
ReactionReaction
Level 2 -Level 2 -
LearningLearning
43Suresh Muchipalli
Evaluation of Training EffectivenessEvaluation of Training Effectiveness
What final results were achieved in terms of the
training objectives previously set? Did the number
of customer complaints about employee drop? Did
the reject rate improve? Was turnover reduced,
and so forth.
Ask whether the trainees’ behavior on the job
changed because of the training program. For
example, are employees in the store’s complaint
department more courteous toward disgruntled
customers than previously?
Level 3 –Level 3 –
BehaviorBehavior
ApplicationApplication
Level 4 –Level 4 –
BusinessBusiness
ImpactImpact
44Suresh Muchipalli
Employee
Performance Management
45Suresh Muchipalli
Why Performance Appraisal?Why Performance Appraisal?
• Appraisal provide information upon which promotion and
salary decision can be made.
• Appraisal provide an opportunity for a manager and
his/her subordinates to sit down and review the
subordinate’s work-related behavior, and then develop a
plan for corrective action.
• Appraisal provide a good opportunity to review the
person’s career plans in light of his/her exhibited
strengths and weaknesses.
46Suresh Muchipalli
Performance Management CyclePerformance Management Cycle
Performance
Planning
(Setting
Performance
Targets)
Regular
Review and
Monitoring
Feed backFeed back
CorrectiveCorrective
ActionAction
Performance
Appraisal and
Evaluation
• Training &
Development
Plan
• Salary/Bonus
Adjustment
• Career
Development
47Suresh Muchipalli
Performance Management CyclePerformance Management Cycle
DefiningDefining
PerformancePerformance
Standard/Standard/
TargetsTargets
AppraisingAppraising
PerformancePerformance
ProvidingProviding
Feedback forFeedback for
DevelopmentDevelopment
1.1. Defining the performanceDefining the performance standards
means making sure that you and your
subordinate agree on his/her duties and
targets that you expect
2.2. Appraising performanceAppraising performance means
comparing your subordinate’s actual
performance to the standard/targets set
in step one.
3.3. Providing feedbackProviding feedback means discussing
plans for any development that is
required.
48Suresh Muchipalli
Problems in Performance AppraisalProblems in Performance Appraisal
Lack ofLack of
standardsstandards
Irrelevant orIrrelevant or
subjectivesubjective
standardsstandards
PoorPoor
measures ofmeasures of
performanceperformance
PoorPoor
feedback tofeedback to
employeeemployee
NegativeNegative
communicationcommunication
Failure toFailure to
applyapply
evaluationevaluation
datadata
Common Performance Evaluation ProblemsCommon Performance Evaluation Problems
49Suresh Muchipalli
Bias in the Appraisal ProcessBias in the Appraisal Process
HaloHalo
EffectEffect
The "halo" effect occurs when a supervisor’s
rating of a subordinates on one trait biases the
rating of that person on other traits
CentralCentral
TendencyTendency
A tendency to rate all employees the same
way, such as rating them all average
50Suresh Muchipalli
LeniencyLeniency
The problem that occurs when a supervisory
has a tendency to rate all subordinates either
high or low
BiasBias
The tendency to allow individual differences
such as age, race, and sec affect the appraisal
rates these employees receives.
Bias in the Appraisal ProcessBias in the Appraisal Process
51Suresh Muchipalli
Performance
appraisal
elements
has two main
categories: 2. Performance Result:
Hard or quantitative aspects
of performance (result)
1. Competencies: It
represents soft or qualitative
aspects of performance
(process)
Performance Appraisal ElementPerformance Appraisal Element
52Suresh Muchipalli
1.1. Competencies ScoreCompetencies Score
2. Performance Result2. Performance Result
ScoreScore
Overall ScoreOverall Score
Will determine the employee’s
career movement, and also
the reward to be earned
Performance Appraisal ElementPerformance Appraisal Element
53Suresh Muchipalli
Element # 1 : CompetenciesElement # 1 : Competencies
Basic Intermediate Advanced Expert
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies understanding
where required, in order to learn from others.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and formulates
messages accordingly.
Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information.
Responds promptly to other team
members’ needs.
Balances complementary strengths
in teams and seeks diverse
contributions and perspectives.
Actively builds internal and external
networks.
Builds internal and external networks and uses
them to efficiently to create value.
Involves teams in decisions that
effect them.
Uses cross functional teams to draw
upon skills and knowledge
throughout the organization.
Uses cross functional teams to draw upon
skills and knowledge throughout the
organization.
Encourages co-operation rather than
competition within the team and with
key stakeholders.
Builds and maintains relationships
across The company.
Drives and leads key relationship groups
across The company.
Manages alliance relationships through
complex issues such as points of competing
interest.
Ensures events and systems, eg IT, for
collaboration are in place and used.
Draws upon the full range of relationships
(internal, external, cross The company) at
critical points in marketing and negotiations.
Competency : CollaborationCompetency : Collaboration
54Suresh Muchipalli
No. Main Performance Target Target to be
Achieved
1 Conduct an assessment of the All employees submit their performance assessment form
employee's performance on time
2 Improve the system for Target : completed 100 %
performance assessment in November 2008
3 Conduct training activities Target : to conduct 6 training modules
in one year
4 Carry out on the job training Target : 90 % of the total employees
activities who attend the training
experience an increase
in skill and knowledge
Element # 2 : Performance ResultsElement # 2 : Performance Results
Target should be measurable andTarget should be measurable and
specificspecific
55Suresh Muchipalli
Employee Career
Management
56Suresh Muchipalli
Career Planning and DevelopmentCareer Planning and Development
Providing employeesProviding employees
the assistance to formthe assistance to form
realistic career goalsrealistic career goals
and the opportunitiesand the opportunities
to realize themto realize them
CareerCareer
Planning &Planning &
DevelopmentDevelopment
57Suresh Muchipalli
Entry LevelEntry Level
First LineFirst Line
MiddleMiddle
ManagementManagement
SeniorSenior
ManagementManagement
TopTop
ManagementManagement
Join Company 22 years old
Supervisor/Ass. Manager 26 - 29 years old
Managers 29 - 35 years old
GM/Senior Managers 35 - 45 years old
CEO/BOD 45 - 55 years old
Typical Career movementTypical Career movement
58Suresh Muchipalli
Career StageCareer Stage
Trial Stage The period from about age 25 to 30 during
which the person determines whether or
not the chosen field is suitable and if it is
not, attempts to change it.
Stabilization
Stage
The period, roughly from age 30 to 40,
during which occupational goals are set
and more explicit career planning is made
to determine the sequence for
accomplishing goals
59Suresh Muchipalli
Mid career
Crisis Stage
The period occurring between the mid-
thirties and mid-forties during which people
often make a major reassessment of their
progress relative to their original career
ambitions and goals
Maintenance
Stage
The period form about ages 45 to 65 during
which the person secures his or her place
in the world of work
Career StageCareer Stage
60Suresh Muchipalli
Decline Stage The period during which many people are
faced with the prospect of having to accept
reduced levels of power and responsibility.
Career StageCareer Stage
61Suresh Muchipalli
Career AnchorsCareer Anchors
Career Anchor :
A concern or value that someone will not give up if
choice has to be made
Career anchors, as their name implies, are the
pivots around which a person’s career swings; a
person becomes conscious of them as a result of
learning about his or her talents and abilities.
62Suresh Muchipalli
Five Career AnchorsFive Career Anchors
Technical/Technical/
FunctionalFunctional
Career AnchorCareer Anchor
ManagerialManagerial
Competence as aCompetence as a
Career AnchorCareer Anchor
Creativity as aCreativity as a
Career AnchorCareer Anchor
Autonomy andAutonomy and
Independence asIndependence as
Career AnchorCareer Anchor
Security as aSecurity as a
Career AnchorCareer Anchor
63Suresh Muchipalli
Five Career AnchorsFive Career Anchors
Technical/Technical/
FunctionalFunctional
Career AnchorCareer Anchor
• People who have a strong
technical/functional career anchor
tend to avoid decisions that would
drive them toward general
management.
• Instead, they make decisions that will
enable them to remain and grow in
their chosen technical or functional
field
64Suresh Muchipalli
Five Career AnchorsFive Career Anchors
ManagerialManagerial
CompetenceCompetence
• People who show strong motivation
to become managers
• Their career experience enables
them to believe that they have the
skills and values necessary to rise to
such general management position
65Suresh Muchipalli
Five Career AnchorsFive Career Anchors
CreativityCreativity
• People who go on to become
successful entrepreneurs
• These people seem to have a need to
build or create something that is
entirely their own product – a product
or process that bears their name, a
company of their own, or a personal
fortune that reflects their
accomplishments.
66Suresh Muchipalli
Five Career AnchorsFive Career Anchors
Autonomy andAutonomy and
IndependenceIndependence
• People who are driven by the need to
be on their own, free from the
dependence that can arise when a
person elects to work in a large
organization.
• Some of these people decide to
become consultants, working either
alone or as part of relatively small
firm. Others choose to become
professors, free-lance writers, or
proprietors of a small retail business.
67Suresh Muchipalli
Five Career AnchorsFive Career Anchors
SecuritySecurity
• People who are mostly concern with
long-run career stability and job
security.
• They seem willing to do what is
required to maintain job security, a
decent income, and a stable future in
the form of a good retirement
program and benefits.
68Suresh Muchipalli
Career Management and the FirstCareer Management and the First
AssignmentAssignment
• Factors to keep in mind about the important first
assignment, include :
1. Avoid reality shock (reality shock refers to the result
of a period that may occur at the initial career entry
when the new employee’s high job expectations
confront the reality of boring, unchallenging jobs.
2. Provide challenging initial jobs
3. Provide realistic job preview in recruiting
4. Be demanding
69Suresh Muchipalli
Career Management and the FirstCareer Management and the First
AssignmentAssignment
5. Provide periodic job rotation
6. Provide career-oriented performance appraisals
7. Encourage career-planning activities
70Suresh Muchipalli
References/Recommended Further ReadingsReferences/Recommended Further Readings
1. Gary Dessler, Human Resource Management, Prentice Hall. You can
obtain this excellent book at this link :
http://www.amazon.com/Framework-Human-Resource-Management-5th/dp/0136041531/ref=sr_1_6?ie=UTF8&s=
2. Susan Jackson and Randall Schuler, Managing Human Resource : A
Partnership Perspective, South-Western College Publishing
71Suresh Muchipalli
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principlesofhrm by muchipalli

  • 2. 2Suresh Muchipalli You can understand this brilliant presentation made by: Suresh Muchipalli Write to Suresh Muchipalli for more presentations on HR management and management skills
  • 3. 3Suresh Muchipalli Training AgendaTraining Agenda 1.1. HR Management : An OverviewHR Management : An Overview 2.2. HR Planning and RecruitmentHR Planning and Recruitment 3.3. Employee SelectionEmployee Selection 4.4. Training and DevelopmentTraining and Development 5.5. Performance ManagementPerformance Management 6.6. Career ManagementCareer Management
  • 4. 4Suresh Muchipalli Human ResourceHuman Resource Management : An OverviewManagement : An Overview
  • 5. 5Suresh Muchipalli HR Management CycleHR Management Cycle Recruitment & Selection Training & Development Performance Management Reward Management Career Management
  • 6. 6Suresh Muchipalli HR Strategy and Business ResultHR Strategy and Business Result Recruitment & Selection Training & Development Performance Management Reward Management Career Management HR STRATEGY BusinessBusiness StrategyStrategy BusinessBusiness ResultResult
  • 7. 7Suresh Muchipalli Manpower Planning & Employee Recruitment
  • 8. 8Suresh Muchipalli Manpower PlanningManpower Planning Company StrategyCompany Strategy What staff do we need to do the job? What staff is available within our organization? Is there a match? If not, what type of people do we need, and how should we recruit them? Job Analysis • Performance appraisal • Company data banks • Training • Employee management and developmentWhat is impact on wage and salary program?
  • 9. 9Suresh Muchipalli Manpower PlanningManpower Planning The financialThe financial resourcesresources available toavailable to youryour organizationorganization Factors in Forecasting PersonnelFactors in Forecasting Personnel RequirementsRequirements ProjectedProjected turnover (as aturnover (as a result ofresult of resignation andresignation and terminations)terminations) Quality and nature ofQuality and nature of your employees (inyour employees (in relation to what yourelation to what you see as the changingsee as the changing need of yourneed of your organization)organization)
  • 10. 10Suresh Muchipalli Technique to Determine Number of RecruitsTechnique to Determine Number of Recruits • Study of a firm’s past employment needs over a period of years to predict future needs Trend Analysis Ratio Analysis • A forecasting technique for determining future staff needs by using ratios between sales volume and number of employees needed
  • 11. 11Suresh Muchipalli Recruitment from External ResourcesRecruitment from External Resources • Recruiting new staff from external sources will be influenced by several factors, namely : When the economic conditions are relatively difficult, there will usually be an oversupply, or the number of applicants will much higher than the demand. In such a case, the company will find it relatively easier to select new employees from the large number of applicants. Macro- Economic Conditions of a Nation
  • 12. 12Suresh Muchipalli When the sector is one that is considered a ‘rare’ sector, the company will have more difficulty in recruiting staff for this sector. For example, computer technology, or cellular engineering. Availability of Manpower in Desired Sectors Recruitment from External ResourcesRecruitment from External Resources
  • 13. 13Suresh Muchipalli It will tend to be easier for a company to find and recruit the best people if the company has a good reputation, therefore the best fresh graduates will flock to apply to the company. Example : Google, McKinsey or Microsoft. Company Reputation Recruitment from External ResourcesRecruitment from External Resources
  • 14. 14Suresh Muchipalli • Some employers use a recruiting yield pyramid to determine the number of applicants they must generate to hire the required number of new employees. • Example of Recruitment Curve: • 1200 - Leads generated • 200 - Candidates invited • 150 - Candidates interviewed • 100 - Offers made • 50 - New hires Recruitment Yield PyramidRecruitment Yield Pyramid
  • 15. 15Suresh Muchipalli Recruitment SourcesRecruitment Sources Advertising (newspaper, magazine, internet) College Recruitment Recruitment Agent (headhunter) RecruitmentRecruitment SourcesSources
  • 17. 17Suresh Muchipalli Basic Concept of Selection TestsBasic Concept of Selection Tests The quality of an employee selection test is determined by three main factors, namely : 1.1. Criterion Validity :Criterion Validity : A type of validity based on showing that scores on the test (“predictors”) are related to job performance (“criterion”). 2.2. Content Validity :Content Validity : A test that is “content valid” is one in which the test contains a fair sample of the tasks and skills actually needed for the job in question. 3.3. ReliabilityReliability : The consistency of scores obtained by the same person when retested with identical or equivalent test.
  • 18. 18Suresh Muchipalli Some Types of Selection TestSome Types of Selection Test 1. Cognitive Ability Test 2. Personality Test 3. Interview
  • 19. 19Suresh Muchipalli Cognitive Ability TestCognitive Ability Test • Cognitive Abilities Tests: Paper and pencil or individualized assessment measures of an individual's general mental ability or intelligence.
  • 20. 20Suresh Muchipalli Advantages of Cognitive Ability TestAdvantages of Cognitive Ability Test • highly reliable • verbal reasoning and numerical tests have shown high validity for a wide range of jobs • the validity rises with increasing complexity of the job • may be administered in group settings where many applicants can be tested at the same time • scoring of the tests may be completed by computer scanning equipment • lower cost than personality tests
  • 21. 21Suresh Muchipalli Disadvantages of Cognitive Ability TestDisadvantages of Cognitive Ability Test • non-minorities typically score one standard deviation above minorities which may result in adverse impact depending on how the scores are used in the selection process • differences between males and females in abilities (e.g., knowledge of mathematics) may negatively impact the scores of female applicants
  • 22. 22Suresh Muchipalli Personality TestPersonality Test • Personality Tests: A selection procedure measure the personality characteristics of applicants that are related to future job performance. • Personality tests typically measure one or more of five personality dimensions: extroversion,extroversion, emotional stability, agreeableness,emotional stability, agreeableness, conscientiousness, and openness to experience.conscientiousness, and openness to experience.
  • 23. 23Suresh Muchipalli Advantages of Personality TestAdvantages of Personality Test • can result in lower turnover due if applicants are selected for traits that are highly correlated with employees who have high longevity within the organization • can reveal more information about applicant's abilities and interests • can identify interpersonal traits that may be needed for certain jobs
  • 24. 24Suresh Muchipalli Disadvantages of Personality TestDisadvantages of Personality Test • difficult to measure personality traits that may not be well defined • responses by applicant may be altered by applicant's desire to respond in a way they feel would result in their selection • lack of diversity if all selected applicants have same personality traits • lack of evidence to support validity of use of personality tests
  • 25. 25Suresh Muchipalli InterviewInterview • Interviews: A selection procedure designed to predict future job performance on the basis of applicants' oral responses to oral inquiries.
  • 26. 26Suresh Muchipalli Advantages of InterviewAdvantages of Interview • useful for determining if the applicant has requisite communicative or social skills which may be necessary for the job • can assess the applicant's job knowledge • can be used for selection among equally qualified applicants • enables the supervisor and/or co-workers to determine if there is compatibility between the applicant and the employees • allows the applicant to ask questions that may reveal additional information useful for making a selection decision
  • 27. 27Suresh Muchipalli Disadvantages of InterviewDisadvantages of Interview • subjective evaluations are made • decisions tend to be made within the first few minutes of the interview with the remainder of the interview used to validate or justify the original decision • interviewers form stereotypes concerning the characteristics required for success on the job • research has shown disproportionate rates of selection between minority and non-minority members using interviews • negative information seems to be given more weight • not as reliable as tests
  • 29. 29Suresh Muchipalli Training Need Analysis Training Objectives Training Delivery Training Evaluation Training ProcessTraining Process What are the training needs for this person and/or job? Objective should be measurable and observable Techniques include on- the-job- training, action learning, etc. Measure reaction, learning, behavior, and results
  • 30. 30Suresh Muchipalli Assessing Training NeedsAssessing Training Needs Task Analysis A detailed analysis of a job to identify the skills required, so that an appropriate training program can be instituted Competency Analysis Careful study of competency level to identify a deficiency and then correct it with a training program, or some other development intervention.
  • 31. 31Suresh Muchipalli Competency AnalysisCompetency Analysis Required competency level for certain position Competency Gap Competency Assessment Current competency level of the employee Training andTraining and DevelopmentDevelopment ProgramProgram
  • 32. 32Suresh Muchipalli Competency Profile Per PositionCompetency Profile Per Position 1 2 3 4 5 Communication Skills Public Speaking Leadership Training Need Analysis Material Development Training Evaluation Communication Skills Interview Skills Analytical Thinking Understand Selection Tools Teamwork Customer Orientation Recruitment Supervisor Required Level Required CompetencyPosition Training & Development Manager Score Required Competency Type
  • 33. 33Suresh Muchipalli Position Competency Requirements Relevant Training Modules Leadership • Leadership I • Communication Skills I • The Art of Motivating Employees • Providing Effective Feedback SUPERVISOR Achievement Orientation • Goal Setting Technique • Work Motivation • Planning & Organizing • Continuous Self Improevement Managerial competency 1 2 3 4 Leadership Required Level Actual Level Achievement Orientation Teamwork Planning & Organizing Functional competency 1 2 3 4 Mechanical Engineering Mechanical Equipment Maintenance Competency Profile Per PositionCompetency Profile Per Position
  • 34. 34Suresh Muchipalli Training Matrix for Competency DevelopmentTraining Matrix for Competency Development Communication Skills V Leadership V Teamwork V Achievement Orientation V Customer Focus V Job Functional Skills V Communication Skills V Leadership V Teamwork V Achievement Orientation V Customer Focus V Strategic Thinking V Problem Solving & Decision Making V Job Functional Skills V Position Managerial Competency Supervisor Manager Productive Communication Series OnBecoming EffectiveLeader1 OnBecoming EffectiveLeader2 ServiceExcellence forCustomer Professional SeminarSeries Achievement MotivationTraining CreativeProblem Solving Strategic Management BuildingProductive Teamwork V = compulsory training Training Title
  • 35. 35Suresh Muchipalli Enhance Training EffectivenessEnhance Training Effectiveness Make theMake the materialmaterial meaningfulmeaningful Provide forProvide for transfer totransfer to learninglearning MotivateMotivate the traineethe trainee TrainingTraining EffectivenessEffectiveness
  • 36. 36Suresh Muchipalli Enhance Training EffectivenessEnhance Training Effectiveness Make theMake the materialmaterial meaningfulmeaningful • At the start of training, provide the trainees with a bird’s-eye view of the material to be presented. Knowing the overall picture facilitates learning. • Use a variety of familiar examples when presenting material • Organize the material so that it is presented in a logical manner and in meaningful units • Try to use terms and concepts that are already familiar to trainees • Use as many visual aids as possible
  • 37. 37Suresh Muchipalli Enhance Training EffectivenessEnhance Training Effectiveness Provide forProvide for transfer totransfer to learninglearning • Maximize similarity between the training situation and the work situation • Provide adequate training practice • Identify each feature of the step in the process
  • 38. 38Suresh Muchipalli Enhance Training EffectivenessEnhance Training Effectiveness MotivateMotivate the traineethe trainee • People learn best by doing. Try to provide as much realistic practice as possible • Trainees learn best when correct response on their part are immediately reinforced. • Trainees learn best when they learn at their own pace. If possible, let trainees pace themselves.
  • 39. 39Suresh Muchipalli Type of Training ProgramType of Training Program Formal courseFormal course OFF THE JOBOFF THE JOB SimulationSimulation Wilderness TripWilderness Trip • Does not interfere with job • Provides for fact learning • Helps transfer of learning • Creates lifelike situations • Builds teams • Builds self-esteem
  • 40. 40Suresh Muchipalli Type of Training ProgramType of Training Program Job instructionJob instruction trainingtraining ON THE JOBON THE JOB ApprenticeshipApprenticeship trainingtraining Job rotationJob rotation MentoringMentoring • Facilitates transfer of learning • Does not require separate facilities • Does not interfere with real job performance • Provides extensive training • Gives exposure to many jobs • Allows real learning • Is informal • Is integrated into job
  • 41. 41Suresh Muchipalli Evaluation of Training EffectivenessEvaluation of Training Effectiveness Level 1 - Reaction Level 2 - Learning Level 3 – Behavior Application Level 4 – Business Impact Four LevelsFour Levels of Trainingof Training EffectivenessEffectiveness
  • 42. 42Suresh Muchipalli Evaluation of Training EffectivenessEvaluation of Training Effectiveness Test the trainees to determine if they learned the principles, skills, and facts they were to learn. Evaluate trainees’ reactions to the program. Did they like the program? Did they think it worthwhile? Level 1 -Level 1 - ReactionReaction Level 2 -Level 2 - LearningLearning
  • 43. 43Suresh Muchipalli Evaluation of Training EffectivenessEvaluation of Training Effectiveness What final results were achieved in terms of the training objectives previously set? Did the number of customer complaints about employee drop? Did the reject rate improve? Was turnover reduced, and so forth. Ask whether the trainees’ behavior on the job changed because of the training program. For example, are employees in the store’s complaint department more courteous toward disgruntled customers than previously? Level 3 –Level 3 – BehaviorBehavior ApplicationApplication Level 4 –Level 4 – BusinessBusiness ImpactImpact
  • 45. 45Suresh Muchipalli Why Performance Appraisal?Why Performance Appraisal? • Appraisal provide information upon which promotion and salary decision can be made. • Appraisal provide an opportunity for a manager and his/her subordinates to sit down and review the subordinate’s work-related behavior, and then develop a plan for corrective action. • Appraisal provide a good opportunity to review the person’s career plans in light of his/her exhibited strengths and weaknesses.
  • 46. 46Suresh Muchipalli Performance Management CyclePerformance Management Cycle Performance Planning (Setting Performance Targets) Regular Review and Monitoring Feed backFeed back CorrectiveCorrective ActionAction Performance Appraisal and Evaluation • Training & Development Plan • Salary/Bonus Adjustment • Career Development
  • 47. 47Suresh Muchipalli Performance Management CyclePerformance Management Cycle DefiningDefining PerformancePerformance Standard/Standard/ TargetsTargets AppraisingAppraising PerformancePerformance ProvidingProviding Feedback forFeedback for DevelopmentDevelopment 1.1. Defining the performanceDefining the performance standards means making sure that you and your subordinate agree on his/her duties and targets that you expect 2.2. Appraising performanceAppraising performance means comparing your subordinate’s actual performance to the standard/targets set in step one. 3.3. Providing feedbackProviding feedback means discussing plans for any development that is required.
  • 48. 48Suresh Muchipalli Problems in Performance AppraisalProblems in Performance Appraisal Lack ofLack of standardsstandards Irrelevant orIrrelevant or subjectivesubjective standardsstandards PoorPoor measures ofmeasures of performanceperformance PoorPoor feedback tofeedback to employeeemployee NegativeNegative communicationcommunication Failure toFailure to applyapply evaluationevaluation datadata Common Performance Evaluation ProblemsCommon Performance Evaluation Problems
  • 49. 49Suresh Muchipalli Bias in the Appraisal ProcessBias in the Appraisal Process HaloHalo EffectEffect The "halo" effect occurs when a supervisor’s rating of a subordinates on one trait biases the rating of that person on other traits CentralCentral TendencyTendency A tendency to rate all employees the same way, such as rating them all average
  • 50. 50Suresh Muchipalli LeniencyLeniency The problem that occurs when a supervisory has a tendency to rate all subordinates either high or low BiasBias The tendency to allow individual differences such as age, race, and sec affect the appraisal rates these employees receives. Bias in the Appraisal ProcessBias in the Appraisal Process
  • 51. 51Suresh Muchipalli Performance appraisal elements has two main categories: 2. Performance Result: Hard or quantitative aspects of performance (result) 1. Competencies: It represents soft or qualitative aspects of performance (process) Performance Appraisal ElementPerformance Appraisal Element
  • 52. 52Suresh Muchipalli 1.1. Competencies ScoreCompetencies Score 2. Performance Result2. Performance Result ScoreScore Overall ScoreOverall Score Will determine the employee’s career movement, and also the reward to be earned Performance Appraisal ElementPerformance Appraisal Element
  • 53. 53Suresh Muchipalli Element # 1 : CompetenciesElement # 1 : Competencies Basic Intermediate Advanced Expert Actively listens, and clarifies understanding where required, in order to learn from others. Actively listens, and clarifies understanding where required, in order to learn from others. Actively listens, and clarifies understanding where required, in order to learn from others. Actively listens, and clarifies understanding where required, in order to learn from others. Empathise with audience and formulates messages accordingly. Empathise with audience and formulates messages accordingly. Empathise with audience and formulates messages accordingly. Empathise with audience and formulates messages accordingly. Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information. Responds promptly to other team members’ needs. Balances complementary strengths in teams and seeks diverse contributions and perspectives. Actively builds internal and external networks. Builds internal and external networks and uses them to efficiently to create value. Involves teams in decisions that effect them. Uses cross functional teams to draw upon skills and knowledge throughout the organization. Uses cross functional teams to draw upon skills and knowledge throughout the organization. Encourages co-operation rather than competition within the team and with key stakeholders. Builds and maintains relationships across The company. Drives and leads key relationship groups across The company. Manages alliance relationships through complex issues such as points of competing interest. Ensures events and systems, eg IT, for collaboration are in place and used. Draws upon the full range of relationships (internal, external, cross The company) at critical points in marketing and negotiations. Competency : CollaborationCompetency : Collaboration
  • 54. 54Suresh Muchipalli No. Main Performance Target Target to be Achieved 1 Conduct an assessment of the All employees submit their performance assessment form employee's performance on time 2 Improve the system for Target : completed 100 % performance assessment in November 2008 3 Conduct training activities Target : to conduct 6 training modules in one year 4 Carry out on the job training Target : 90 % of the total employees activities who attend the training experience an increase in skill and knowledge Element # 2 : Performance ResultsElement # 2 : Performance Results Target should be measurable andTarget should be measurable and specificspecific
  • 56. 56Suresh Muchipalli Career Planning and DevelopmentCareer Planning and Development Providing employeesProviding employees the assistance to formthe assistance to form realistic career goalsrealistic career goals and the opportunitiesand the opportunities to realize themto realize them CareerCareer Planning &Planning & DevelopmentDevelopment
  • 57. 57Suresh Muchipalli Entry LevelEntry Level First LineFirst Line MiddleMiddle ManagementManagement SeniorSenior ManagementManagement TopTop ManagementManagement Join Company 22 years old Supervisor/Ass. Manager 26 - 29 years old Managers 29 - 35 years old GM/Senior Managers 35 - 45 years old CEO/BOD 45 - 55 years old Typical Career movementTypical Career movement
  • 58. 58Suresh Muchipalli Career StageCareer Stage Trial Stage The period from about age 25 to 30 during which the person determines whether or not the chosen field is suitable and if it is not, attempts to change it. Stabilization Stage The period, roughly from age 30 to 40, during which occupational goals are set and more explicit career planning is made to determine the sequence for accomplishing goals
  • 59. 59Suresh Muchipalli Mid career Crisis Stage The period occurring between the mid- thirties and mid-forties during which people often make a major reassessment of their progress relative to their original career ambitions and goals Maintenance Stage The period form about ages 45 to 65 during which the person secures his or her place in the world of work Career StageCareer Stage
  • 60. 60Suresh Muchipalli Decline Stage The period during which many people are faced with the prospect of having to accept reduced levels of power and responsibility. Career StageCareer Stage
  • 61. 61Suresh Muchipalli Career AnchorsCareer Anchors Career Anchor : A concern or value that someone will not give up if choice has to be made Career anchors, as their name implies, are the pivots around which a person’s career swings; a person becomes conscious of them as a result of learning about his or her talents and abilities.
  • 62. 62Suresh Muchipalli Five Career AnchorsFive Career Anchors Technical/Technical/ FunctionalFunctional Career AnchorCareer Anchor ManagerialManagerial Competence as aCompetence as a Career AnchorCareer Anchor Creativity as aCreativity as a Career AnchorCareer Anchor Autonomy andAutonomy and Independence asIndependence as Career AnchorCareer Anchor Security as aSecurity as a Career AnchorCareer Anchor
  • 63. 63Suresh Muchipalli Five Career AnchorsFive Career Anchors Technical/Technical/ FunctionalFunctional Career AnchorCareer Anchor • People who have a strong technical/functional career anchor tend to avoid decisions that would drive them toward general management. • Instead, they make decisions that will enable them to remain and grow in their chosen technical or functional field
  • 64. 64Suresh Muchipalli Five Career AnchorsFive Career Anchors ManagerialManagerial CompetenceCompetence • People who show strong motivation to become managers • Their career experience enables them to believe that they have the skills and values necessary to rise to such general management position
  • 65. 65Suresh Muchipalli Five Career AnchorsFive Career Anchors CreativityCreativity • People who go on to become successful entrepreneurs • These people seem to have a need to build or create something that is entirely their own product – a product or process that bears their name, a company of their own, or a personal fortune that reflects their accomplishments.
  • 66. 66Suresh Muchipalli Five Career AnchorsFive Career Anchors Autonomy andAutonomy and IndependenceIndependence • People who are driven by the need to be on their own, free from the dependence that can arise when a person elects to work in a large organization. • Some of these people decide to become consultants, working either alone or as part of relatively small firm. Others choose to become professors, free-lance writers, or proprietors of a small retail business.
  • 67. 67Suresh Muchipalli Five Career AnchorsFive Career Anchors SecuritySecurity • People who are mostly concern with long-run career stability and job security. • They seem willing to do what is required to maintain job security, a decent income, and a stable future in the form of a good retirement program and benefits.
  • 68. 68Suresh Muchipalli Career Management and the FirstCareer Management and the First AssignmentAssignment • Factors to keep in mind about the important first assignment, include : 1. Avoid reality shock (reality shock refers to the result of a period that may occur at the initial career entry when the new employee’s high job expectations confront the reality of boring, unchallenging jobs. 2. Provide challenging initial jobs 3. Provide realistic job preview in recruiting 4. Be demanding
  • 69. 69Suresh Muchipalli Career Management and the FirstCareer Management and the First AssignmentAssignment 5. Provide periodic job rotation 6. Provide career-oriented performance appraisals 7. Encourage career-planning activities
  • 70. 70Suresh Muchipalli References/Recommended Further ReadingsReferences/Recommended Further Readings 1. Gary Dessler, Human Resource Management, Prentice Hall. You can obtain this excellent book at this link : http://www.amazon.com/Framework-Human-Resource-Management-5th/dp/0136041531/ref=sr_1_6?ie=UTF8&s= 2. Susan Jackson and Randall Schuler, Managing Human Resource : A Partnership Perspective, South-Western College Publishing
  • 71. 71Suresh Muchipalli End of Material If you find this presentation useful, please consider telling others about Suresh MuchipalliSuresh Muchipalli