INTRODUCTION TO HUMAN

RESOURCES

Tomislav Bandic, Psychologist and HR Consultant,

Serbia
 A Quick Quiz on HR
1. Can you legally fire someone for their astrological symbol?
2. When hiring employees, is it better to hire people who you judge to be hard working,
organized, and dedicated during a traditional interview, or is an IQ test a better way
to pick people?
3. Is it better to hire people based on the fit of their values with the companys values, or
is an IQ test better?
4. True or false--Asking applicants about stealing or other negative behavior at work
during an interview doesnt help you find better employees, because most people who
are going to do bad things at work just lie.
5. True or false--If employees participate in decision making they will be more motivated
than if top management sets performance goals?
6. True or falseManagers may think their employees are really concerned about
compensation, but when it comes down to it, money doesnt really matter that much to
most people.
What Can We Learn?

Dont feel bad if you didnt get them all

right

A majority of HR managers get most of them
wrong!

Major problemmost HR managers learn
through following other peoples leads
without a system
 A Basic Mental Map for HR
What HR Do You Need to Make a Company Work?

Tell me a few things that are typically the responsibility

of the HR department

Consider how HR would be involved in the following
corporate actions:

Plans to change strategic focus from being a cost leader to a
quality leader

Plans to expand into a new market

Preparing to implement a new software or hardware
computer system
 A Basic Mental Map for HR
What HR Do You Need to Make a Company Work?

Develop an Overarching Strategy

What does the company do, with whom are they competing, what makes this company unique?

Train and Develop Compensation Performance

Acquire Staff and Benefits management
Can we help new
Who makes a good How can we match What are the things
hires feel like part of
employee? our pay offers to the that motivate
the company?
How do we get market? employees at work?
How do we teach
these people to How do we pay What prevents
employees the skills
apply? people who are employees from
they need?
How are people working in different performing
How do we job levels? effectively?
screened?
encourage civility?
How are people What types of non- Are there incentives
How do we measure cash benefits can we that we should be
selected?
performance? offer to employees? offering?
 How Does HR Work?

Old viewcost center
New viewstrategic partner

Keep track of forms
Employee development

Integration with the core

Policy and procedure operations of the organization
enforcement
Change management

Results oriented

Payroll and insurance

Example: developing a

Cost reduction oriented program to select employees
for a dynamic work

Example: new employees go environment
through orientation with a
videotape and a package of
forms
 Mental Maps and HRM

Where am I?

What resources do I have?

What are the things that might hurt me?

Who am I competing with?

Where do I want to be?

What can I do that will give me the ability to be happy and
healthy?

What can I do that will minimize the degree to which I am
vulnerable to threats?
 Mental Maps and HRM

How am I going to get to my goals?

Describe a testable theory of what you think will solve the
problem

Describe the specific things you will do

How can I tell if Im on the right track?

Develop objective measures to demonstrate whether your
planned method is actually working
 HR Metrics

There has been a growing push to quantify HR

If HR cannot answer questions about the costs and benefits of their
programs, they lack credibility

If companies cannot assess returns on investments on HR programs, they will
not choose optimal solutions

HRIS makes quantifying HR much easier

Major types of HR metrics

Costs

Services

Performance

Attitudes
 HR Outcomes: Service

What services are provided by HR

Employee screening and selection

Training classes offered

Compensation levels

Healthcare benefits

The speed and utility of these services

Time to hire new employees

Time to deliver training to employees

Time-to-performance for new hires

Response to information requests

Employee satisfaction with HR
 HR Outcomes: Costs

Human resources staff per FTE

Program administration costs

Advertising for recruiting

Travel time for interviews

Test costs

Training materials

Compensation and benefits outlays

Managerial time performing HR administration

Litigation and settlement expenses
 HR Outcomes: Attitudes

Job satisfaction

A pleasant feeling from doing work that fulfills ones goals

Organizational commitment

A desire to work towards your organizations goals and objectives

Stress

A feeling of psychological arousal that comes from pressure, deadlines,
expectations, etc.

Absenteeism

Failing to report for work as scheduled

Turnover

Voluntary and permanent departure from an organization
 HR Outcomes: Performance

Productivity/task performance

Effectiveness
 Achieving assigned goals consistently

Efficiency
 Minimizing resource use

Creativity
 Finding new ways to do work, or defining new goals for work

Organizational citizenship behavior (OCB)

Behavior that enhances the social and psychological environment

Firm performance

Increased productivity

Decreased costs

Increased agility
 A Structural Model of HR and Firm Performance

Staffing methods
Recruiting the right people
Selecting the right people

Employee development
Learning new skills
Improving performance
Compensation & benefits
Matching the market
Meeting employee needs
Organization outcomes
Work outcomes Stock prices
Improved coordination Lower admin. costs
Reduced turnover Revenues
Higher productivity Customer service

Performance management
Improving well-being
Rewarding performance

All links in this model have been validated

 HR is Associated with Real Results

Human capital focused HR is associated with product quality and

employee productivity

Selection sophistication and profit

Use of cognitive ability tests, structured interviews, and validation
studies is significantly correlated with organizational profit and
profit growth
 HR is Associated with Real Results

Companies that initiate commitment-oriented

human resources systems have lower turnover rates

Companies that engage in information sharing,
internal staffing, and other participation methods
have lower turnover rates

Where is the company?

Where do they want to be?

How are they going to get there?

How do they know if theyre getting there?

What are some of the metrics you would propose for
assessing the efficacy of this organizations HR system?
*If you require any further information please do not hesitate to contact me at tomislav.bandic@gmail.com