HRM

• Human Resource Management (HRM)


  The management of an organization's workforce, including attracting, selecting, training, assessing and rewarding employees, and ensuring compliance with employment and labor laws

  
• Uniqueness of HRM


  • It is multidisciplinary, applying disciplines like Economics, Psychology, Sociology and Law
  • It is embedded within the work of all managers and most individual contributors due to the need of managing people and teams
• Strategic Human Resource Management (SHRM)


  A distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques

  
• The mission of the organization guides all strategy and structure, and the link between the mission and the work people should be clear on all levels
• Linking organizational strategy to HR planning


  1. Assess current human resources

  2. Determine the demand for labor

  3. Predict the future labor supply

  4. Match labor demand and supply

  
• Job analysis


  Provides information about jobs currently being done and the knowledge, skills, and abilities that individuals need to perform their jobs adequately
• Tangible outcomes of job analysis


  • Job description
  • Job specification
  • Job evaluation

  
• Job description


  Indicates the content, environment, and conditions of the job, including job status & title, department, objective, job summary, essential tasks, responsibilities, and supervisor
• Job specification/profile


  Indicates the minimum acceptable qualification of the job, including knowledge, skills, education, experience, certification, and abilities
• Recruiting


  The process of discovering potential candidates for actual or anticipated organizational vacancies
• Constraints on recruiting efforts


  • Organization image
  • Job attractiveness
  • Internal organizational policies
  • Legal influence
  • Recruiting costs
• Recruiting sources


  • Internal sources (identification of candidates through HR management system, active application of candidates, referral of fellow employees)
  • External sources (advertisements, employment agencies, educational institutions, job fairs, professional organizations, unsolicited applicants)
• Pros and cons of internal vs external recruiting

  • Internal recruiting pros: increasing commitment through promotion opportunities, lower costs, lower risks, applicants with firm-specific skills, maintenance of the pay-level, vacancies for juniors
  • Internal recruiting cons: demotivation though the lack of promotion opportunities, higher costs, higher risks: trial period, introduction of newcomers, job-hoppers expect higher pay, blocking of juniors, time-consuming
  • External recruiting pros: larger sample, new impetus through new people, filling the vacancy without creating another in the company
  • External recruiting cons: smaller sample, blind to the shortcomings of the company, frustration of colleagues, training needs
• Recruiting alternatives


  • Temporary help services
  • Employee leasing
  • Independent contractors
• The selection process


  1. Application

  2. Screening

  3. Testing

  4. Interview

  5. Reference check

  6. Job offer
• Methods of HR selection


  • Curriculum vitae
  • Educational certificates
  • Job references
  • Other references
  • Work sampling
  • Biographical questionnaire
  • Psychological tests (general intelligence, aptitude, personality)
  • Job interview
  • Graphologic test
  • Medical test
• Pre-employment testing


  • Aptitude tests
  • Performance simulation test
  • Work sampling
  • Assessment center
• Prognotic validity of selection methods


  • Low predictive power: application forms, unstructured interviews, school grades, personality tests, graphological tests, job reference certificates and references
  • High predictive power: biographical questionnaire, intelligence tests, trial period, assessment center, performance tests, structured interviews
• Selection biases


  • Intrapersonal factors: selective perception, stereotypes, personal value system, assessor type, egoism
  • Situational factors: internal influences, external influences
  • Interpersonal factors: sympathy and antipathy, recency effect, first/last impression, hierarchy effect, impression management
  • Appraisal method: inadequate exercises, no exact criteria
• Performance management


  The development of individuals with competence and commitment, working towards the achievement of shared meaningful objectives within an organization that supports and encourages their achievement
• The essence of performance management is the development of individuals with competence and commitment, working towards the achievement of shared meaningful objectives within an organization that supports and encourages their achievement
• Why manage performance?


  • To link career development to firm's objectives
  • To link performance, promotion, and reward
  • To motivate/develop and retain people
  • To demonstrate a commitment to corporate values
• The appraisal process


  1. Establish and communicate performance standards with employees

  2. Measure actual performance

  3. Compare actual performance with standards

  4. Discuss the appraisal with the employee

  5. If necessary, initiate corrective actions
• Appraisal methods


  • Evaluation absolute standard (critical incident appraisal, checklist appraisal, graphic rating scale appraisal, forced-choice appraisal, behaviorally anchored rating scales)
  • Relative standard methods (group order ranking, individual ranking, paired comparison)
  • Management by objectives (SMART objectives, participative decision making/objective setting, specific time period, continuous feedback on performance and goals)
• Performance appraisal distortion


  • Leniency error
  • Halo error
  • Similarity error
  • Low appraiser motivation
  • Central tendency
  • Inflationary pressures
  • Attribution theory
• Human Resource Development (HRD)


  The part of HRM that specifically deals with training and development of employees, based upon the business strategy, including the on-boarding process and providing opportunities to improve existing and learn new skills
• Objectives of HRD


  • Maintenance and advancement of qualifications and skills
  • Transfer of knowledge and experience
  • Improvement of leadership behaviour
  • Development of successors
  • Increase of motivation
  • Reduction of fluctuation
  • Improvement of corporate image

  
• On-boarding


  The process of helping employees adapt to a new job and new organizational culture
• Failing to allow new employees a smooth entry into the organization can result in costly turnover
• Why on-boarding & socialization?


  • Socialization strongly influences employee performance and organizational stability
  • Organizational stability also increases through socialization
  • New members suffer from anxiety
  • Corporate culture becomes manifest by socialization
  • Individuals adjust to new situations in remarkably similar ways
• The socialization process


  1. Pre-arrival stage: use of selection process for comprehensive information

  2. Encounter stage: confrontation of expectations and reality

  3. Metamorphosis stage: employee becomes fully trained, perform successfully and fit in with their values
• What should new joiners learn about?


  • Basics of the company: history, vision, structure, strategy, culture
  • Job duties and responsibilities
  • HRM policies: work hours, pay procedures, overtime requirements, benefits
  • Administrative issues: procedures, rules
• Employee training


  Present-oriented, focus on current job, enhances skills and abilities needed to immediately perform, operational
• Employee development


  Future oriented, focus on future jobs, foster personal growth, prepare the employee for a future challenge, strategic
• Determining training needs


  1. Organizational analysis

  2. Task analysis

  3. Person analysis
• Training methods


  • On-the-job training (on-the-job training, job rotation, apprenticeship, internship)
  • Off-the-job training (classroom lectures, multimedia learning, simulations, vestibule training)
• Development methods


  • On-the-job training (job rotation, assistant-to positions, committee assignments)
  • Off-the-job training (lectures and seminars, simulations, adventure or outdoor training)
• Strategic Human Resource Management (SHRM) aligns human resources with strategic business goals and objectives of the organization, fosters innovation and improves motivation, satisfaction, productivity, and eventually overall performance

  
• Strategy


  A critical factor that affects company performance, contributes to competitive advantage, has a long-term focus, relies on plans that involve the top executives and/or board of directors, a general framework that provides a perspective for selecting specific policies and procedures
• HR strategies


  Set out what the organization intends to do about its human resource management policies and practices and how they should be integrated with the business strategy and each other