MGT 101 Topic 09

• Human Resource Management (HRM)


  
  

  ● Design and applications of formal systems in an organization to ensure the effective and

  efficient use of human talents to accomplish objectives (Daft)

  ● The management of various activities designed to enhance the effectiveness of

  organization’s workforce in achieving organizational goals

  ● Formal systems for the management of people within the organization
• Three Major Concerns in HRM

  • Attracting an Effective Workforce
  • Developing an Effective Workforce
  • Maintaining an Effective Workforce
• Factors Affecting the HRM Process

  • Employee Labor Union
  • Government laws and regulations
  • Demographic trends
• Employee Labor Union


  A representation of workers that protects workers interests through collective bargaining agreement (CBA)
• Government laws and regulations

  Labor Code of the Philippines
• Demographic trends


  Characteristics of the labor market
• HRM Process


  An on-going procedure that tries to keep the organization supplied with the right positions when they are needed
• Basic Activities in the HRM Process

  • Human Resource Planning
  • Recruitment
  • Selection
  • Socialization/orientation
  • Training and Development
  • Performance Appraisal
  • Promotion, Transfer, Demotion, Separation
• Job analysis


  Systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities required for a particular job
• Job description


  Statement of duties, working conditions, work requirements, etc.
• Job specification


  Statement of skill, abilities, education and previous work experience required for the job
• Job enlargement


  Broadening the scope of a job by expanding the number of different tasks to be performed
• Job enrichment


  Increasing the depth of a job by adding the responsibility for planning, organizing, controlling and evaluating the job
• Job rotation


  The process of shifting a person from job to job
• Human resource planning activities

  • Planning for future needs
  • Planning for future balance
  • Planning for recruiting and laying off of members
  • Planning for training and development of employees
  • be guided in the next step of the HRM process, particularly recruitment/derecruitment
• Sources of Recruits

  • Internal Recruits (existing employees in the organization)
  • Outside Recruits (internet, employee referrals, company websites, college recruitment, professional recruiting organizations)
• Selection


  Screening job applicants to ensure that the most appropriate candidates are hired

  > Managers make use of selection devices which are valid and reliable

  o Valid-with proven relationship between the device and relevant criteria

  o Reliable-measures the same thing consistently over time
• Selection

  Mutual process – organization makes decision in offering the job; candidate decides whether to accept the job or not
• Steps in the selection process

  • Job application
  • Initial interview
  • Testing
  • Background investigation
  • In-depth selection interview
  • Physical Examination
  • Job offer
• Types of information given during orientation

  • General information about work routine
  • Organization information – history, purpose, products and services, etc.
  • Detailed presentation of organizational policies, work rules and employee benefits
• Ways to determine training needs

  • Performance appraisal
  • Analysis of job requirements
  • Organizational Analysis
  • Employee Survey
• Major Purpose of Performance Appraisal

  • Lets the employees know formally how their current performance is being rated
  • Identifies employees who deserve merit raises
  • Locates employees who need additional training
  • Identifies candidates for promotion or demotion
• Approaches to Performance Rating

  • The manager rating an employee
  • A group of managers rating an employee
  • Peer evaluation
  • The employees rating the manager
  • The employee rating himself
  • Outside sources
  • Multisource (360° feedback) appraisal
• Compensation


  Reward systems attract, motivate and retain people
• Three decisions related to designing a pay plan

  • Pay level – low, average, or high pay?
  • Pay structure – how to price different jobs within the organization
  • Individual pay – different pay rates for jobs of similar worth within the same family
• Employee Incentives and Benefits

  • Individual Incentive Plans
  • Group Incentive Plans
  • Employee Benefits
• Individual Incentive Plans


  Consist of an objective standard against which a worker's performance is compared

  > Most common type of incentive plans
• Group Incentive Plans


  • Gainsharing – based on group performance (function of the ratio between labor costs and sales)
  • Profit sharing plans – employees share based on the unit or company profitability
• Cafeteria benefit program


  An employee benefit program in which employees choose from a menu of options to create a benefit package tailored to their needs
• Flexible benefit program


  Benefit program in which employees are given credits to spend on benefits that fit their unique needs
• Reasons for unionization


  • Economic reasons especially for workers in low-paying jobs
  • Job dissatisfaction encourages workers to form unions
  • The belief that the union can obtain desired benefits
  • Image of union can determine whether a satisfied worker will seek out the union
• Collective Bargaining


  A periodic ritual of negotiating an agreement between over wages, hours and working conditions
• Maintaining an Effective Workforce


  • Labor relations
  • Unionization
  • Collective Bargaining
  • Labor Management Relations
  • Effective Compensation and benefit system
  • Valuing and managing diversity
  • Terminating poor performers
• Four Cs model of Evaluating Human Resources

  • Competence
  • Commitment
  • Congruence
  • Cost Effectiveness
• Current Issues in HRM

  • Downsizing
  • Workplace romances
  • Sexual Harassment
  • Drug and Alcohol Abuse
  • Employees Rights to Privacy
  • Family Issues
  • Glass Ceiling
• Attracting an Effective Workforce through recruitment and selection


  competent employees are identified and selected

  • Human resource planning
  • Recruitment
  • Selection
• Developing an Effective Workforce


  provide employees with up-to-date knowledge and skills

  
  

  o Orientation

  o Training
• Maintaining an Effective Workforce


  ensures that competent and high performing employees are retained

  • Performance Appraisal
  • Pay and other Compensation Systems
  • Career Development
  • Workforce Reductions
• Employee Benefits


  • Those required by law
  • Those voluntarily given by an entrepreneur
• Derecruitment

  • Firing - permanent involuntary termination
  • Layoffs - temporary involuntary termination; may last for a few days or extend to years
  • Attrition -not filling of openings created by voluntary resignations or retirement
  • Transfers -lateral or downward movement of employees
  • Reduced workweeks -having employees work fewer hours per week, or perform jobs on a part-time basis, or share jobs
  • Early retirement -provision of incentives to older or more senior employees for retiring before their compulsory retirement age
  • Job sharing -employees sharing one full-time position