C12 Managing Human Talent

• Human Resource Management (HRM)

  The design and application of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals
• Human capital


  The economic value of the combined knowledge, experience, skills, and capabilities of employees
• Human Resource (HR)


  • Drives organizational performance
  • Human capital cited as the top factor in competitive success
  • Talent management is a top concern for all managers
• Top Three Factors for Maintaining Competitive Success

  • Hiring the right people to become more competitive on a global basis
  • Hiring the right people for improving quality, innovation, and customer service
  • Knowing the right people to retain after mergers, acquisitions, or downsizing
  • Hiring the right people to apply new information technology (IT) for mobile business
  • Shifting concepts of social contract – employability rather than lifetime employment
• Strategic Human Resource Management

  The impact of federal legislation on HRM
• Discrimination


  Hiring or promoting applicants based on criteria that are not job relevant
• Affirmative action


  Requires employers take positive steps to guarantee equal employment opportunities for people within protected groups
• Failure to comply with Equal Employment Opportunity (EEO) legislation can result in substantial fines and penalties for employers
• Sexual harassment, a violation of the Civil Rights Act, is a growing concern
• Main labour laws in Malaysia

  • Employment Act 1955
  • Industrial Relations Act 1967
  • Employees' Provident Fund Act 1991 (EPF)
  • Occupational Safety and Health Act 1994 (OSHA)
  • Employees' Social Security Act 1969 (SOCSO)
• New social contract


  Based on the concept of employability rather than lifetime employment
• Individuals


  • Develop their own skills and abilities
  • Understand employer's business needs
  • Demonstrate their value to the organization
• Employer


  Offers creative training and development opportunities
• Human resource planning


  The forecasting of HR needs and the projected matching of individuals with expected job vacancies
• Human resource planning


  1. Ask big-picture questions

  2. Answers help define the direction for the organization's HRM strategy
• Job analysis


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


  Summary of the tasks, duties, and responsibilities of a job
• Job specification


  Outline of characteristics needed to perform the job (qualification & behavior)
• Recruiting (talent acquisition)


  Activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied
• Recruitment


  • Internal recruitment
  • External recruitment
• Internal Recruitment Advantages


  • Motivator for good performance
  • Strong personnel development, training needed
  • Causes succession of promotions
  • Better assessment of abilities
  • Increased commitment, morale
  • Lower cost for some jobs
• Internal Recruitment Disadvantages


  • Morale problems of those not promoted
  • Political infighting for promotions
  • Inbreeding
  • Have to hire only at entry level
• External Recruitment Advantages


  • New ideas, insights
  • Possibly cheaper than training a professional
  • No group of political supporters in the organization
• External Recruitment Disadvantages


  • Selected person may not fit job or organization
  • Possible morale problems for internal candidates not promoted
  • Long adjustment time may be needed
• Selection Tools


  • Application Form
  • Interview (Structured, Nondirective, Panel)
  • Employment Tests (Cognitive ability, Physical ability, Personality, Brain teasers)
  • Online Checks
• Application form


  Tool used to collect information about the applicant's education, previous job experience, and other background characteristics
• Structured interview


  Set of standardized questions that are asked of every applicant so comparisons can easily be made
• Non-directive interview


  Ask broad, open-ended questions that allow the applicant to talk freely, with minimal interruption
• Panel interview


  Candidate meets with several interviewers who take turns asking questions
• Employment tests


  Tests that may include cognitive ability tests, physical ability tests, personality inventories, and other assessments
• On-the-job training


  An experienced employee shows a newcomer how to perform job duties
• Social learning


  Learning informally from others by using social media tools
• Corporate university


  In-house training and education facility that offers broad-based learning opportunities for employees
• Promotion from within


  Development is through promotion from within, which helps companies retain and develop valuable people. Promotions provide more challenging assignments, prescribe new responsibilities, help employees grow by expanding and developing their abilities.
• Performance appraisal


  Evaluating performance, recording assessment, and providing feedback
• 360-degree feedback


  Process that uses multiple raters, including self-rating, as a way to increase awareness of strengths and weaknesses and guide employee development
• Performance-review ranking system


  Method in which managers evaluate direct reports relative to one another and categorize each on a scale
• Compensation


  All monetary payments and Benefits / Indirect benefits - all goods or commodities used to reward employees
• Compensation


  • Base Pay (Wages and salaries)
  • Incentives (Bonuses, commissions, profit-sharing plans, stock options)
• Benefits


  • Required (medical/disable insurance) and voluntary (leave of absence) security
  • Retirement (pension fund, early retirement)
  • Time-off (sabbatical, holiday..)
  • Insurance and financial (loan, stock plans)
  • Social and recreational (child care, food, wellness)