HUMAN RESOURCE MANAGEMENT

What is Human Resource Management?

HRM
Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.

HRM
Features
Its features include: Organizational management Personnel administration Manpower management Industrial management

HRM
But these traditional expressions are becoming less common for the theoretical discipline. Sometimes even employee and industrial relations are confusingly listed as synonyms, although these normally refer to the relationship between management and workers and the behavior of workers in companies. The theoretical discipline is based primarily on the assumption that employees are individuals with varying goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing cabinets. The field takes a positive view of workers, assuming that virtually all wish to contribute to the enterprise productively, and that the main obstacles to their endeavors are lack of knowledge, insufficient training, and failures of process.

HRM
HRM is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce, and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the overall enterprise. HRM is also seen by many to have a key role in risk reduction within organizations.

HRM (Definitions)
Synonyms such as personnel management are often used in a more restricted sense to describe activities that are necessary in the recruiting of a workforce, providing its members with payroll and benefits, and administrating their work-life needs. So if we move to actual definitions, Torrington and Hall (1987) define personnel management as being: a series of activities which: first enable working people and their employing organisations to agree about the objectives and nature of their working relationship and, secondly, ensures that the agreement is fulfilled. While Miller (1987) suggests that HRM relates to: ".......those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage.

HRM (Academic Theory)

Academic theory

The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organization's employees, and the overall strategic direction of the company (Miller, 1989). The basic premise of the academic theory of HRM is that humans are not machines, therefore we need to have an interdisciplinary examination of people in the workplace. Fields such as psychology, industrial engineering, industrial, Legal/Paralegal Studies and organizational psychology, industrial relations, sociology, and critical theories: postmodernism, post-structuralism play a major role. Many colleges and universities offer bachelor and master degrees in Human Resources Management.

HRM (Academic Theory)

One widely used scheme to describe the role of HRM, developed by Dave Ulrich defines 4 fields for the HRM function: Strategic business partner Change management Employee champion Administration However, many HR functions these days struggle to get beyond the roles of administration and employee champion, and are seen rather as reactive than strategically proactive partners for the top management. In addition, HR organizations also have the difficulty in proving how their activities and processes add value to the company. Only in the recent years HR scholars and HR professionals are focusing to develop models that can measure if HR adds value.

HRM (Business Practice)

Business practice Human resources management comprises several processes. Together they are supposed to achieve the above mentioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company. Workforce planning Recruitment (sometimes separated into attraction and selection) Induction, Orientation and Onboarding Skills management

Training and development Personnel administration Compensation in wage or salary Time management Travel management (sometimes assigned to accounting rather than HRM) Payroll (sometimes assigned to accounting rather than HRM) Employee benefits administration Personnel cost planning Performance appraisal

HRM-Environment Factors
EXTERNAL
POLITICAL LEGAL BUSINESS ENVIRONMENT
GLOBALISATION MERGERS & ACQUISITIONS DOWNSIZING /RIGHTSIZING

NATIONAL ECONOMY DEMOGRAPHIC

Diverse workforce Knowledge workforce / intellectual capital More Women in workforce Changing family structure Contingent workforce

 TECHNOLOGICAL

Occupational Shift (manufacturing .. services) managing a virtual workforce training & retraining employees to manage obsolescence. providing work life balance Need based technology not fads

 Internal factors
Unions Strategy, Leadership Organizational Culture Professional Bodies

The External Influences

The External Influences The HRM activities don't exist in isolation. Rather, they are highly affected by what is occurring outside the organization. It is important to recognize environmental influences because any activity undertaken in each of the HRM processes is directly, or indirectly, affected by these external elements. For example, lets say that when a company downsizes its workforce, does it layoff workers by seniority? If so, are an inordinate number of minority employees affected. Although any attempt to identify specific influences may prove insufficient, one can categorize them into four general areas - the dynamic environment, governmental legislation, labor unions and current management practice.

The Dynamic Environment of HRM It's been stated that the only thing that remains constant during our lifetimes is change (and paying taxes!). We must, therefore, prepare ourselves for events that have a significant effect on our lives. HRM is no different. Many events help shape our field. Some of the more obvious ones include globalization, work-force diversity, changing skill requirements, corporate downsizing, total quality management, reengineering work processes, decentralized work sites, and employee involvement.

The Dynamic Environment of HRM

GLOBALIZATION Globalization reflects the

worldwide operations of many businesses today. One is no longer bound by continents or societal cultures. WORK FORCE DIVERSITY includes the varied backgrounds of employees that are present in the companies today. Homogeneity of employees, and their needs, no longer exist. The work today is more complex, requiring employees with sophisticated skills. Without them, many employees will lack the basic abilities to successfully perform in tomorrow's organizations.

The Dynamic Environment of HRM

Corporate downsizing, total management, and reengineering all quality
relate to one another. As the world changed, U.S. companies had to compete harder to maintain their leading industrial status. This meant doing things differently. In an effort to become more productive, organizations downsized to create greater efficiency by eliminating certain jobs. Of the jobs and work processes remaining, total quality management (TQM) looks at ways of improving job effectiveness. By continuously improving on methods, techniques, processes, and the like, companies made constant efforts to better what they produce. But what if what they produce, even if it's better, still doesn't satisfy the customer? In those cases, reengineering is necessary. Whereas TQM looks at new and improved ways of producing goods and services, reengineering looks at starting the processes over again from scratch. That is, instead of improving on an existing product, the organization would analyze what should be done and how they should do it. Searching for answers would not be constrained by current business practices.

The Dynamic Environment of HRM

Decentralized work sites are quickly becoming part of
many organizations. With the technologies that are available (personal computers, fax machines, modems, etc.), work that was once done on the company premises may now be more cost-effectively handled at the employee's home. Lastly, Employee involvement looks at how employees' work lives are changing. Involved employees now have more control over their jobs. Certain activities, like goal setting, were once the sole responsibility of managers. With employee involvement, such an action today permits participation.

Governmental Legislation Many employees today wishing to take several weeks of unpaid leave to be with their newborn children, and return to their previous job without any loss of seniority, have an easier time making the request. Although some employers may see such an application as negatively affecting the workflow, government legislation has given employees the right to take this leave. Laws supporting this and other employer actions are important to the HRM process.

Legal Compliances
Shops & Establishments Registration & Compliance Registration &Compliance under the Factories Act Registration & Compliance under Provident Fund Act Registration and Compliance under the ESI Act Compliance under Minimum Wages Act Compliance under the Gratuity Act Compliance under the Payment of Bonus Act
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HRM in a Changing Environment

I. Objectives A. Competitive advantage. B. Changing trends. C. Importance of measurement.

II. Overview A. Functions of HRM B. HRM is about the people who perform its activities.

II. Overview cont... C. Most effective HRM programs 1. Not typical. 2. HR is a major contributor.

II. Overview cont... D. Status of HRM is improving. 1. More Professional 2. Bigger budgets 3. Senior management

III. HRM Trends A. Trend 1: productivity B. Trend 2: flexibility C. Trend 3: international D. Trend 4: litigation E. Trend 5: workforce.

IV.

HRM Measurement

A. The value of HRM functions. B. measurement can reduce cost. C. which HRM practices work.

Management by Measurement System

Management by measurement system ensuring all functional business units subscribe to guidelines for sound, strategic measurement
criteria to measure performance (e.g., individual, team, unit) quantity, quality, timeliness, cost-effectiveness, effects on others productivity customer satisfaction absenteeism turnover/retention/tenure/intentions to stay/leave employee theft

Management by Measurement System

criteria to measure (continued)
violence in the workplace job stress (e.g., role conflict, ambiguity) job satisfaction/motivation/attitudes/commitment creativity perceived fairness (procedural, interactional) error rates accidents, health-related variables (worker stress, injuries) organizational citizenship behavior

HRM Functions

The Human Resource System

Handlin g problem s

Retaini Recruitment Process ng good staff

Termination of employement

The Changing Face of HR

HR Transaction and Administration functions are being enabled through leading edge e-HR solutions

Today
% Time, Effort, Cost 5% Strategy

Future
Align HR activities and programmes with the strategic direction and business needs of the organisation Develop and deliver programmes that enhance the organisations ability to attract, develop and retain superior performers Handle employees transactions and enquiries
20%

Strategy
40%

Performance 25% Enhancement

Performance Enhancement

30%

Transactions Transactions Administration

20%

40%

Administration

Manage vendors, suppliers, budgets, and HR systems

20%

Source: Hay/McBer & Company, presented by Lyle M. Spencer,Jr.,PhD

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HRIS, INTERNET, INTRANETS & EXTRANETS

Better internal communication On-line training & development

Enhanced distribution of HR policy, news, information Internet recruitment Multi-site collaborative work teams, electronically linked Performance appraisal, including 360O feedback
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Widespread electronic systems

Maintenance of HR records

Human Resource Management in Tourism

Considered to be the most important aspect of management Attitudes and abilities of staff have a crucial impact on the visitors experience Labour costs are likely to be the largest single items on the attractions budget

Problems of HRM at visitor attractions

Tourism industry suffers from bad reputation in HRM High turnover of staff Seasonality of demand Poor status of jobs Lack of career structures Unusually demanding jobs lack of management expertise Lack of widely recognized qualification and training schemes

Problems of HRM at visitor attractions cont.

Problems of public sector attractions are often in direct contrast to the problems mentioned before Low turnover of staff Inflexible working practices Fixed-wage rages Standardized recruitment and disciplinary procedures

Benefits for organisation of good HRM

Improves performance of staff Provides a competitive advantage to the organization Contented staff provide better service to customers, encouraging repeat visitation Reputation for good staff will lead to increased firsttime visitation HRM plays a part in determining the success or failure of any organisation.

HUMAN RESOURCE PLANNING

EFFECTIVE U T I L I Z A T I O N OF HUMAN CAPABILITY

PRODUCTIVITY

GROWTH

ECONOMIC DEVELOPMENT

Human Resource Planning

Effective planning of HR is essential to match the requirements of the job with the individual Right resources at the right time to meet the future organizational needs is critical A comprehensive and meticulous HRP process can ensure sustained growth of an organization

Human Resource Planning

Diversification or expansion, employee promotion or changes in human resource necessitates effective HRP Organizational plans, goals, and strategies also needs effective HRP Success in business is dependent on being able to react quickly to opportunities Organizations must have accurate, rapid access to information about both supply of and demand for HR

Organizational Life-Cycle Stages HR Activities AND LABOR / LIFE-CYCLE TRAINING

STAGE STAFFING COMPENSATION DEVELOPMENT Introduction

EMPLOYEE RELATIONS

Attract best technical and professional talent

Meet or exceed labor market rates to attract needed talent

Define future skill requirements and begin establishing career ladders

Set basic employeerelations philosophy of organization

Growth

Recruit adequate numbers and mix of qualified workers. Plan management succession. Manage rapid internal labour market movements

Meet external market but consider internal equity effects. Establish formal compensation structures

Mold effective management team through management development and organizational development

Maintain labour peace, employee motivation & morale

Organizational Life-Cycle Stages and HR Activities AND LIFE-CYCLE TRAINING LABOR /

STAGE STAFFING Encourage sufficient turnover to minimize layoffs and provide new openings. Encourage mobility as reorganizations shift jobs around
COMPENSATION

DEVELOPMENT

EMPLOYEE RELATIONS

Maturity

Control labour Control Maintain compensatio flexibility and costs & maintain labour n costs skills of an peace. Improve aging productivity workforce

Decline

Plan and implement Implement workforce tighter cost reductions and control reallocations, downsizing and outplacement may occur during this stage

Improve Implement productivity and retraining and achieve flexibility career in work rules. Negotiate job consulting security and services employmentadjustment policies

Human Resource Planning

HRP is both a process and a set of plans
a process by which management of an organization determines its future HR requirements a plan to fill the future HR requirements from internal and external sources

Assessment of human resource requirements in advance vis a vis organizational objectives, production schedules, and demand fluctuations

Human Resource Planning

The process of determining human resource requirements and the means of meeting those requirements in order to carry out the integrated plan of the organization Coleman Relates to establishing job specifications determining the number of personnel required developing the sources of human resource

Internal vs. External

System of matching the available resources, either externally or internally, with the expected organizational demand over a period of time Internal Resources
employees who are already in the organization

External Resources personnel who have to be recruited from outside

Objectives of HRP: Forecasting HR Requirements

maintain the required quantity & quality of HR turnover/attrition rates

Effective Management of Change

coping with changes in market conditions, technology, govt. regulations et al

Realizing Organizational Goals

expansion, diversification

Promoting Employees
database on skill repertoire

Effective Utilization of HR surplus/unutilized employees vis a vis downsizing

Emergence of HRP
Early HRP was top down, short range 1970s: manpower planning 1990s: aligning HR strategy with corporate strategy attention to individual career planning

Effective HRP
An effective HRP
closes the gap between the current situation and a desired situation in the context of an organizations strategy helps cope with change and achieve organizational goals

HR Planning Levels
HRP is carried out at different organizational levels to meet HR requirements at those levels Flow of communication in HRP is both ways
Top to bottom Bottom to top

The levels are

Corporate level planning Intermediate level planning Operational level planning

HR Planning Levels
Corporate-level Planning
Culture and mission of the organization Macro-level: changes in market conditions, technology, strategic plan, etc Identification of broad policy issues; employment, welfare, development policies

Intermediate-level Planning
SBU level, based on corporate-level HR Plan Determining recruitment, retaining, laying off

Operational-level Planning
Operations level plan Training & development, recruitment etc

Planning Short-term Activities

Management of day-to-day activities Ensure success or failure of corporate plans Grievance handling, etc

Environmental Scanning
impact of strategy/goals on diff. units

Involving Line Managers

determining HR needs of departments

H R P P R O C E S S

Forecasting
quantity & quality of personnel needed

Analysis of Supply
matching current HR supply & reqmnt

Plan of Action
recruitment, selection, training, et al

Human Resource Planning

Assess trends in External labour markets Current employees Future organizational plans General economic trends

Predict demand

Forecast internal supply

Forecast external supply

Compare future demand and internal supply

Plan for dealing with predicted shortfalls or overstaffing

Situation Analysis
Interaction of HRM and strategic planning The strategic plan must adapt to environmental circumstances HRM is one of the mechanisms of adaptation process Example: rapid technological changes can force an organization to quickly identify and hire employees with new skills Without HR plan to support the recruitment & selection functions it would be impossible to move fast to stay competitive

Forecasting
Estimating not only how many but also what kinds of employees will be needed Yields advance estimates or calculations of the organizations staffing requirements Apart from quantitative tools, a great deal of human judgement is involved Incredibly difficult tasks, especially in rapidly changing environment

Forecasting Techniques
Qualitative Techniques
Expert estimate Nominal Group Technique (NGT) Delphi Technique

Quantitative Techniques
Regression Analysis Productivity Ratios Personnel Ratios Time Series Analysis

The Nominal Group Technique A small group of 4-5 people gathers around a table. Leader
identifies judgment issue and gives participants procedural instructions Participants write down all ideas that occur to them, keeping their lists private at this point. Creativity is encouraged during this phase Leader asks each participant to present ideas and writes them on a blackboard or flipchart, continuing until all ideas have been recorded Participants discuss each others ideas, clarifying, expanding, and evaluating them as a group Participants rank ideas privately in their own personal order and preference The idea that ranks highest among the participants is adopted as the groups judgment

The Delphi Technique

Leader identifies judgment issues and develops questionnaire Prospective participants are identified and asked to cooperate Leaders send questionnaire to willing participants, who record their judgments and recommendations and return the questionnaire Leaders compiles summaries and reproduces participants responses Leader sends the compiled list of judgment to all participants Participants comment on each others ideas and propose a final judgment Leader looks for consensus Leader accepts consensus judgment as groups choice

Statistical Techniques
Name
Regression analysis Description Past levels of various work load indicators, such as sales, production levels, are examined for statistical relationships with staffing levels. Where sufficiently strong relationships are found, a regression (or multiple regression) model is derived. Forecasted levels of the retained indicator(s) are entered into the resulting model and used to calculate the associated level of human resource requirements.

Productivity ratios

Historical data are used to examine past levels of a productivity index (P): P = Work load / Number of People Where constant, or systematic, relationships are found, human resource requirements can be computed by diving predicted work loads by P.

Statistical Techniques
Name Personnel ratios Description Past personnel data are examined to determine historical relationships among the employees in various jobs or job categories. Regression analysis or productivity ratios are then used to project either total or key-group human resource requirements, and personnel ratios are used to allocated total requirements to various job categories or to estimate for non-key groups.

Time series analysis Past staffing levels (instead of work load indicators) are used to project future human resource requirements. Past staffing levels are examined to isolate and cyclical variation, long-tem terms, and random movement. Longterm trends are then extrapolated or projected using a moving average, exponential smoothing, or regression technique.

Analysing Current Supply

How many and what kinds of employees do I currently have in terms of the skills and training necessary for the future? Are resources available internally or externally to fill those needs? Internal skills inventory succession planning promotability External availability of qualified labor; surplus? shortage?

Analysing Current Supply

The Skills Inventory: tool to assess current supply of employees in terms of
skills abilities experiences training

If the current inventory exceeds the future requirements and natural attrition cannot bring down the resources to match the future requirements?

Employee Replacement Chart for Succession Planning

Managing Employee Surpluses

Source: Compliments of Dan Ward, GTE Corporation

Managing Employee Shortages

Source: Compliments of Dan Ward, GTE Corporation

HRIS
Human Resource Information System is more than just a computerized skills inventory An HRIS is an integrated approach to
analysing acquiring storing controlling the flow of information throughout an organization

HRIS
Highly developed HRIS systems can increase efficiency and response time of HRM activities The system might contain a programme for tracking applicants, a skills inventory, a career planning programme, employee service programmes One of the most common uses of an HRIS is in recruitment and tracking of applicants

Job analysis

Job analysis
An assessment of the kinds of skills, knowledge, and abilities needed to successfully perform each job in an organization

Job Analysis
Job analysis is the systematic collection and recording of information concerning:
the purpose of a job, its major duties, the conditions under which it is performed, the contact with others that performance of the job requires, and the knowledge, skills, and abilities needed for performing the job effectively.
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JOB ANALYSIS OUTCOMES

Job description

Job specification

Job evaluation

Job Analysis Components

Job description
A written statement of what a job holder does, how it is done, and why it is done
Tasks, duties and responsibilities that the job entails

Job specification
A statement of the minimum acceptable qualifications that an incumbent must possess to perform a given job successfully
Knowledge, skills, and abilities required of the job holder

JOB DESCRIPTION
Focus on the job Written statement
What is done How Why

Includes
Job content Environment Conditions of employment

TYPICAL JOB DESCRIPTION FORMATS

Job title Duties Distinguishing characteristics Authority Responsibilities

JOB DESCRIPTIONS ARE USEFUL FOR

Recruiters New hires Performance appraisals Identifying essential job functions

JOB SPECIFICATION
Focus on the person who does the job Identifies minimum incumbent qualifications Knowledge, skills, education, experience, certification, abilities Personality

JOB EVALUATION
Establish job comparability
Compensation Relative value

Competitive analysis

IT TAKES GOOD JOB ANALYSIS TO PERFORM

THESE HR FUNCTIONS WELL: Recruiting Selection Strategic human resource planning Employee training AND.

MORE HR FUNCTIONS NEED JOB ANALYSIS

Employee development Career development Performance appraisal Compensation Safety and health Labor relations

The Multifaceted Nature of the Job Analysis

 A job analysis may be based on information obtained through direct observation, interviews, diaries or questionnaires. A job description is a statement of the duties, working conditions, and other significant requirements associated with a particular job. A job specification is a statement of the skills, abilities, education and previous work experience that are required to perform a particular job.
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Methods of Job Analysis

For existing jobs, interviews with employees Interviews with supervisors Observation Combination, interviews & observation Structured questionnaires Employee journals/logbooks
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Job Analysis
Unorganized data has little use. Only concerned with facts. Concerned only with the job, not the worker. Not job classification. Required to determine job qualifications? No, but planning is the key to success.

Tools used
Books and Literature
Valid information on current job analysis and studies. Job analysis that are being implemented by other successful companies. Past and present failures and successes.

Tools cont..
Flow and Organizational Charts
Very helpful for showing past and current information. Show trends and similarities.

Recruitment and Selection

Recruitment And Selection

Recruitment
The process of locating, identifying, and attracting capable applicants

Selection process
The process of screening job applicants to ensure that the most appropriate candidates are hired

Recruitment and Selection

We have specific objectives in recruiting and selecting:

Identifying the right people. Reducing the range of differences in performance from least effective to most effective workforce. Keeping turnover to a minimum.

Recruitment and Selection

How to achieve objectives: There is no magic answer. Start with a good solid job description. Do customer analysis. Analyze competitors workforce. Analyze our workforce. Take info from these steps and compile a profile on type of person we want.

Recruitment and Selection

Developing a pool of applicants: Job must be sufficiently attractive. Then we go to many sources to recruit such as: College placement services. Trade media advertising. Newspaper advertising. Employment services.

Recruitment and Selection

Screening and final selection: Comparison with our preferred employee profile. Interviews to assess. Impressions candidate makes. Interest in job. Personal characteristics.

Strategic Recruiting Stages

Typical Division of HR Responsibilities

Traditional Recruiting Sources

Internal searches Advertisements Employee referrals Public employment agencies Private employment agencies Campus placement Temporary help services Employee leasing and independent contractors

Organizational Recruiting Activities

Recruiting Image Recruiting Presence Training of Recruiters Effective Recruiting

Strategic Recruiting Decisions

OrganizationalOrganizationalBased vs. Based vs. Outsourcing Outsourcing

Recruiting Recruiting Source Choices: Source Choices: Internal vs. Internal vs. External External

Strategic Strategic Recruiting Recruiting

Regular vs. Regular vs. Flexible Staffing Flexible Staffing

Recruiting and Recruiting and EEO/Diversity EEO/Diversity Considerations Considerations

EEO and Diversity Considerations

Advantages and Disadvantages of Internal and External Recruiting Sources

Internal Recruiting Methods

Internet Recruiting Methods

Job Boards Internet Recruiting Methods

Professional/ Career Web Sites

Employer Web Sites

Internet Recruiting
Advantages
Recruiting cost savings Recruiting time savings Expanded pool of applicants Morale building for current employees

Disadvantages
More unqualified applicants Additional work for HR staff members Many applicants are not seriously seeking employment Access limited or unavailable to some applicants

External Recruiting
College and University Recruiting High Schools and Technical Schools

Media Sources and Job Fairs

External Recruiting Sources

Labor Unions

Competitive Sources

Employment Agencies and Search Firms

What to Include in an Effective Recruiting Ad

Evaluating Recruiting
Evaluating Recruiting Efforts

Evaluating Recruiting Costs and Benefits

Evaluating Time Required to Fill Openings

Evaluating Recruiting Quality and Quantity

Recruiting Evaluation
General Areas for Evaluating Recruiting
Quantity of applicants EEO goals met Quality of applicants

Yield ratios
A comparison of the number of applicants at one stage of the recruiting process to the number at the next stage.

Selection rate
The percentage hired from a given group of candidates

Recruiting Evaluation Pyramid

Selection and Placement

Selection
The process of choosing individuals who have needed qualities to fill jobs in an organization. Organizations need qualified employees to succeed
Good training will not make up for bad selection. Hire hard, manage easy.

HRs Role in Selection and Placement

Reasons for centralizing selection
Easier to have applicants in one place. Contact with outside applicants is easier. Managers can concentrate on operating responsibilities rather than the selection process. Selection costs are lower with no duplicated efforts.

Selection Methods
Yield ratios
A comparison of the number of applicants at one stage of the recruiting process to the number at the next stage

Selection rate
Percentage hired from a given group of candidates

Acceptance Rate
Percentage of rejected job offers

Success Base Rate

Comparing percentage rate of past applicants who were good employees to that of current employees.

Selection Terms
Reliability
The degree to which a selection device measures the same thing consistently (stability)
Example: an individual consistently achieves nearly identical scores on the same exam.

Validity
The proven relationship between a selection device and some relevant criterion (a measure of job success)
Example: superior job performance and high employment test scores

Selection Devices
Written tests
Intelligence, aptitude, ability, and interest test batteries

Performance-simulation tests
Selection devices that are based on actual job behaviors; work sampling and assessment centers

Interviews
Effective if conducted correctly

Realistic job preview (RJP)

Providing positive and negative information about the job and the company during the job interview

The case of Protection Royale

The focus is on the Financial Consultancy Division of this insurance company There had been very low turnover among the sales consultants whose job had been to market the companys insurance products to insurance brokers. Recruitment was by replacement:
advertise in the trade press use specialist recruitment agencies recommendations from existing staff shortlist from applications interviews, roles plays, psychometric testing references

But the job became harder as products diversified and become more complex
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Protection Royale...

Customers lost confidence, the company lost its position in the marketplace There was a big shake-up The company recognised the need to have a more focused product range and high-performing staff who could persuade brokers that these were worth selling on to clients. A new person specification emerged: excellent product knowledge influential and persuasive negotiation skill
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Protection Royale ...

Furthermore, legislation introduced in 1994 required financial sales practitioners to hold various qualifications Therefore there was a big reduction in eligible people within the external labour market. Existing staff were deemed either suitable, unsuitable or possible; many left Line managers tried to head-hunt replacements, but failed. A crisis became apparent
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Protection Royale ...

Recruitment champions were appointed Line managers and HR specialists were given performance indicators relating to recruitment objectives A new search for direct recruits and for trainees. A matrix of selection methods (e.g. Application form, testing of job knowledge/ skills/attitudes, psychometric testing, interviews, simulations, presentations, references) and competencies. 116

Protection Royale...

National advertising 7 day phone-in interviews, followed by screening interviews Assessment centre based selection Appointment of an induction manager Thorough procedural knowledge training for all those involved in the recruitment and selection process.

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 Here the objective of recruitment & section would be to recruit people who will enhance the org.s capacity to deliver its corporate strategy. E.g. for an INNOVATION corp. strategy, the company would seek to recruit people with:
highly innovative behaviour preference/ability for co-operative behaviour relatively high risk taking tolerant of uncertainty moderate concern for quality of output balanced orientation toward process and results longer-term focus

Recruitment & Selection flowing down from Corporate Strategy

For a QUALITY ENHANCEMENT or COST REDUCTION corp. strategies, the patterns would be different

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Recruitment & Selection driving Corporate Strategy

There is a business case for building more DIVERSITY into organisations
enhances creative capability greater flexibility in global markets more widely equipped to face unpredictable challenges

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Recruitment & Selection Flowing down from Organisation Structure

Behaviours required in managers in Organic Organisations: networking team building information retrieval innovative problem solving
Mgt competencies required in Organic organisations info search concept formation conceptual flexibility interpersonal search managing interaction developmental orientation self confidence Proactiveness achievement orientation (These may be needed by nonmanagers too)

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Recruitment & Selection driving Org. Structure

e.g. Recruiting people in order to help reconfigure the organisation as delayered and TEAM-BASED rather than tall. Therefore look for people:
who are dependable Make recruitment a have interpersonal skills two-way process are self-motivated Involve existing team have integrity members in the final have leadership potential selection are assertive tolerate ambiguity are able to cope with stress

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Training and Development

The Workplace Skills Strategy

Human capital is increasingly regarded as one of the major drivers of productivity, economic growth and competitive advantage. Recognizing the importance of human capital, the training manpower sets out to generate:
A skilled, adaptable, motivated and resilient workforce A flexible, efficient labour market A responsive strategy to meet employers needs for skilled workers A learned employee can retain customers and increase business & market share thro proper behavior and good public relations

As a demand-driven approach to human resource and skills development, the Training will build and strengthen relationships with and among workplace partners and better engage employers, unions to respond to the challenges of workplace skills development.

An organization is only as good as its employees.

In order for an organization to produce professional career minded employees an investment has to be made.

What type of investment must an employer offer employees to gain this?

An investment in training and education is a sure payoff.

Importance of Training
Managers: Importance to overall business strategy Labour leaders: Importance to collective bargaining issues
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% not/slightly important important very important crucial 9% 5% 22% 29% 44% 37% 30% 25% managers labour

Examples of Training Investments Industry and government in the United States spend approximately $90 billion each year on employee training and education. Average Japanese companies spends about 6% of budget on training. Study of major automobile manufactures found U. S automakers spend about 40 hours training new employees compared to 300 hours for Japanese automakers. Motorolas CEO required all divisions to spend at least 2% of budget on training. Over next 7 years, profits increased 47% and it was estimated that each $1.00 in training yielded $30.00 in return.

TRAINING ACTIVITIES SHOULD BE

ALIGNED WITH OVERALL OBJECTIVE OF THE ORGANISATION,

WITH A MEANINGFUL EMPHASIS ON

VALUE ADDITION TO OUR HUMAN RESOURCES.

Factors to consider
Training to benefit organisation Training to benefit employees Training to benefit the industry Provide a good return on investment?

Investment
To invest properly, the employer must provide training as one of the needed tools for employees to get the job done.

Why Training?
The sharing of information through training is our most valuable tool to develop our most valuable assetour employees.

Once employees have proper tools in their toolbox

They will come to work on a daily basis, with enthusiasm and the positive attitude to give a full days work for a full days pay.

TRAININGS SHOULD AIM AT

EMPOWERING THE EMPLOYEES INCREASING PRODUCTIVITY MAKING THE PROCESSES MORE EFFICENT AND EFFECTIVE so as to ENSURE ULTIMATE CUSTOMER SATISFACTION IMPROVE THE OVERALL PERFORMANCE OF THE ORGANISATION.

Importance of Training contd

1. Respond to technology changes affecting job requirements. 2. Respond to organizational restructuring. 3. Adapt to increased diversity of the workforce. 4. Support career development. 5. Fulfill employee need for growth.

Importance of Training and Development Maintain skill levels Advance skill and knowledge to improve
Performance (efficiency) Service delivery (error rate) Profitability (productivity, manpower)

Integrate new technologies into work Establish standards for work practices

Benefits of Training - Individuals

Do job more efficiently learn new methods Professional approach to work, engaged in best practice routines Personal satisfaction felt valued Recognised qualification to add to CV

The Benefits of Training

Gives the supervisor more time to manage, standardized performance, less absenteeism, less turnover, reduced tension, consistency, lower costs, more customers, better service Gives the workers confidence to do their jobs, reduces tension, boost morale and job satisfaction, reduces injuries and accidents, gives them a chance to advance. Gives the business a good image and more profit.

Benefits of Training-a summary

Improved customer service and public relations Fewer complaints Better morale and attitudes Less turnover and absenteeism More involved and caring employees Proactive vs. reactive employees

 MANAGEMENTs ONE OF THE MOST IMPORTANT FUNCTIONS IS TO TRAIN PEOPLE FOR THEIR JOBS.

Then why is training often neglected?

Urgency of need Training time Costs Employee turnover Short-term worker Diversity of worker Kinds of jobs (simple-complex) Not knowing exactly what you want your people to do and how

Attitudes to training
Individual: How is that related to what I do? Im good at my job and anyway, I have no time I suppose thats my weekends shot for months! Are they trying to get rid of me? Employer: How can I be sure the organisation will benefit? Training is so expensive how will I know if it has been effective? Will this effect the goal of developing and implementing standards and protocols for the organisation? If I train them, theyll leave

Our front-line employees are often good will ambassadors.

Yet they are the ones who hold the most thankless job. Their role and their understanding of their role is the vital key towards their development and their ability to provide excellent customer service.

Importance of Training Teaching people How to do Their Jobs:

There are three kinds of training: Job Instruction, Retraining, and Orientation. The big sister/ big brother system is when a old hand dominates a newcomer. When good training is absent there is likely to be an atmosphere of tension, crisis, and conflict because nobody knows what to do.

Training Process Model

II. Developing & Conducting Training

I. Needs Assessment

III. Evaluating Training

Developing a Unit Training Program

This is taught in several sessions. It should provide check points to measure progress. Should include two elements: 1. Showing and telling the employee what to do. 2. Having the employee do it (right). Location should be ambient. Training materials should be the same as used on the job.

Who will do the Training?

The magic apron method: people train themselves the easiest ways to get the job done. The person that is leaving trains: teaches shortcuts and ways of breaking the rules. Big sister, big brother method: passes on bad habits and may resent new person as a competitor. The logical person to train new workers is The employer!

How employees learn the best:

When they are actively involved in the learning process-(to do this choose a appropriate teaching method). Training is relevant and practical. Training material is organized and presented in chunks. Training is in an informal, quiet, and comfortable setting. When they have a good trainer. When they receive feedback on performance. When they are rewarded.

How do Employees Learn the Best?

Learning is the acquisition of skills, knowledge, or attitudes. The adult learning theory is a field of research that examines how adults learn. A number of the following tips come from the adult leaning theory.

How do Employees Learn the Best?

Tell me and I forget, teach me and I remember, involve me and I learn - Benjamin Franklin

Kinds of training
Informal on the job, phone a friend Formal attendance or completion Formal certified, vindicated
Evidence of Return on Investment Must be planned Allows for customisation, relates to workplace standards

Job Instruction Training (JIT)

Also called on the job training. Consists of 4 steps: 1. Prepare the learner 2. Demonstrate the task 3. Have the worker do the task 4. Follow through: put the worker on the job, correcting and supporting as nessicary.

Classroom Training Skills

Be aware of appropriate body language and speech. Watch how you talk to employees. Covey respect and appreciation. Handle problem behaviors in an effective manner. Avoid time wasters. Facilitate employee participation and discussion. Use visual aids to avoid constantly referring to notes.

DELIVERING CUSTOMISED TRAINING DELIVERING CUSTOMISED TRAINING SUCCESSFULLY SUCCESSFULLY

MAKE IT FUN RULES FOR LEARNING: 1. ASK QUESTIONS The only dumb questions are the ones you dont ask! 2. MAKE MISTAKES Training is a great place to make mistakes. The you wont make as many at work in the live environment!

DELIVERING CUSTOMISED TRAINING DELIVERING CUSTOMISED TRAINING SUCCESSFULLY SUCCESSFULLY

MAKE IT FUN RULES FOR LEARNING Continued 3. HAVE FUN This rule is very important 4. CHEAT Watch how other people do things or yell for help

Types of Training
1. Skills Training. 2. Retraining. 3. CrossFunctional. 4. Team Training. 5. Creativity Training. 6. Literacy Training. 7. Diversity Training. 8. Customer Service.

3. Types of Training

1. SKILLS TRAINING Focus on job knowledge and skill for: Instructing new hires. Overcoming performance deficits of the workforce.

2. Retraining Maintaining worker knowledge and skill as job requirements change due to: Technological innovation Organizational restructuring

3. Cross-Functional Training

Training employees to perform a wider variety of tasks in order to gain: Flexibility in work scheduling. Improved coordination.

4. Team Training Training self-directed teams with regard to: Management skills. Coordination skills. Cross-functional skills.

5. Creativity Training Using innovative learning techniques to enhance employee ability to spawn new ideas and new approaches.

6. Literacy Training
Improving basic skills of the workforce such as mathematics, reading, writing, and effective employee behaviors such as punctuality, responsibility, cooperation,etc.

7. Diversity Training
Instituting a variety of programs to instill awareness, tolerance, respect, and acceptance of persons of different race, gender, etc. and different backgrounds.

8. Customer Service Training Training to improve communication, better response to customer needs, and ways to enhance customer

1. Classroom Instruction
PROS

Efficient dissemination of large volume of information. Effective in explaining concepts, theories, and principles.

Learner does not control pace or content Does not consider individual differences. Limited practice. Limited feedback. Limited transfer to job.

CONS

2. Video and Film

PROS Provides realism. Adds interest. Allows scheduling flexibility. Allows exposure to hazardous events. Allows distribution to multiple sites. CONS Does not consider individual differences. Limited practice. Limited feedback. Adds additional cost. due to: * Script writers * Production specialists

3. Computer Assisted Instruction

Efficient Limited in instruction. presenting theories and Considers principles. individual Limited differences. Allows scheduling discussion. Transfer depends flexibility. on particular job. Allows active practice for some (Good for computer work.) tasks. High Allows learner
PROS CONS

5. Simulation
PROS Provides realism. Allows active practice. Provides immediate feedback. Allows exposure to hazardous events. High transfer to job. CONS Cannot cover all job aspects. Limited number of trainees. Can be very expensive (for example, aircraft simulators and virtual reality simulators).

6. On-The-Job Training
PROS

Provides realism. Allows active practice. Provides immediate feedback. High motivation. High transfer to job. Lowers training cost.

CONS Disruptions to operations. May damage equipment. Inconsistent across departments. Inadequate focus on underlying principles. Lack of systematic feedback. Transfer of improper procedures. Trainee stress.

Overcoming Obstacles to Learning

Reduce fear with a positive approach (convey confidence in the worker). Increase motivation: emphasize whatever is of value to the learner, make the program form a series of small successes, build in incentives and rewards. Limited abilities: adjust teaching to learners level. Laziness, indifference, resistance: May mean a problem worker.

Overcoming Obstacles to Learning

Teaching not adapted to learners: Deal with people as they are (teach people not tasks), keep it simple, involve all the senses. Poor training program: revise to include objectives. Poor instructor: The trainer needs to know the job, be a good communicator + leader, sensitive, patient, helpful, etc.

Types of Evaluation Designs

Train Measure

Post Test Only. Cannot tell if there is a change in knowledge or skill. Measure Train Measure Pre-test with Post-test. Detects a change, but cannot tell if training was responsible.

Types of Evaluation Designs

Measure Measure Train No Train Measure Measure

Scientific Method: Training Group and Control Group. Compare performance of Training Group and Control Group after training. If Training Group has higher