Managing Human Capital

Script Group
LECTURE # 4
Date : 24- 3-2024

Name: Shahzaib Ahmed

Student ID: 19765

Topic 1 : Recruitment:

Introduction:

Recruitment in Human Resource Management (HRM) is the process of identifying,

attracting, and selecting qualified candidates for job vacancies within an
organization. It's a crucial aspect of HRM as it ensures that the organization has the
right people with the right skills and qualifications to achieve its goals. Here's a
breakdown of the recruitment process with examples:

Identifying Job Vacancies:

HR professionals work with department managers to identify the need for new
positions or replacement hires due to turnover, expansion, or restructuring. For
example, if a software company decides to develop a new mobile application, they
may need to hire additional developers

Job Analysis and Description:

HR conducts job analysis to understand the roles, responsibilities, and required

qualifications for the vacant position. This information is used to create a detailed
job description outlining the job duties, skills, experience, and qualifications
needed. For instance, a job description for a marketing manager might include
responsibilities such as developing marketing strategies, managing campaigns, and
a requirement of a bachelor's degree in marketing or related field.

Attracting Candidates:
HR employs various methods to attract potential candidates, such as posting job
openings on the company's website, job boards, social media platforms, and
utilizing recruitment agencies. For example, a retail chain might use social media
to promote job openings for sales associates.
Screening and Shortlisting:

HR reviews resumes and applications to identify candidates who meet the basic
qualifications outlined in the job description. They may also conduct preliminary
interviews or assessments to further evaluate candidates' suitability for the position.
For instance, a technology company might conduct technical assessments to
shortlist candidates for a software engineering position.

Conducting Interviews:

Qualified candidates are invited for interviews, which may include multiple rounds
with HR representatives, hiring managers, and potential team members.
Behavioral, situational, and technical questions may be asked to assess candidates'
skills, experience, and fit for the role and organization.

Making Job Offers:

After the interview process, HR extends job offers to the most suitable
candidate(s). Offers may include details such as salary, benefits, start date, and any
other relevant terms and conditions of employment. For example, a pharmaceutical
company might offer a competitive salary package with health benefits to attract a
top research scientist.

Onboarding:

Once candidates accept the job offers, HR initiates the onboarding process to
integrate new hires into the organization. This may involve completing paperwork,
orientation sessions, training, and introductions to colleagues and company
policies.
Name: Fareed Zahid

Student ID: 19766

Topic 2: Selection in HR:

Selection in human resources (HR) refers to the process of identifying, assessing,

and hiring candidates who are the best fit for a particular job within an
organization. It's a crucial stage in the recruitment process that aims to ensure that
the right person is hired for the right position. Here's a detailed description of the
selection process in HR:

Job Analysis:
Before the selection process begins, HR conducts a job analysis to understand the
requirements and responsibilities of the position. This involves identifying the
necessary skills, qualifications, experience, and attributes needed for success in the
role.

Sourcing Candidates:
Once the job requirements are clear, HR uses various methods to attract potential
candidates. This could include posting job openings on job boards, company
websites, social media platforms, attending job fairs, and networking within
professional circles.

Shortlisting: After the initial screening, HR shortlists the most qualified candidates
for further assessment. This involves reviewing resumes, conducting phone
screenings, and possibly administering pre-employment assessments to assess
skills and competencies.

Interviewing:
Shortlisted candidates are invited for interviews. Depending on the organization,
there may be multiple rounds of interviews, including phone interviews, video
interviews, and face-to-face interviews with hiring managers, HR representatives,
and other relevant stakeholders. The interviews assess the candidate's
qualifications, skills, experience, cultural fit, and overall suitability for the role and
the organization.

Reference and Background Checks:

HR conducts reference checks to verify the candidate's employment history,
qualifications, and character. Background checks may also be conducted to ensure
that the candidate has no criminal record or other disqualifying factors.

Decision Making:
Based on the interviews, assessments, and reference checks, the hiring team
evaluates each candidate's strengths, weaknesses, and overall fit for the role and
the organization. A final hiring decision is made, and the selected candidate is
extended a job offer.

Job Offer and Negotiation:

Once the selected candidate accepts the job offer, HR coordinates the process of
finalizing employment terms and conditions, including salary, benefits, start date,
and any other relevant details. Negotiations may take place to reach mutually
acceptable terms.

Onboarding:
After the candidate accepts the job offer, HR facilitates the onboarding process,
which includes orientation, paperwork, training, and integration into the
organization. This sets the stage for the new hire to become productive and
successful in their new role.

Overall, the selection process in HR is a systematic and thorough approach to

identifying and hiring the best candidates to meet the organization's staffing needs
while ensuring a good fit with the job requirements and organizational culture.
Name :Arsalan ul haq

Student ID : 19867

Topic 3 : Career Management:

Career management in Human Resource Management (HRM) involves several key
components aimed at helping employees navigate their professional development
within an organization. These components typically include:

1. Career Planning:
This involves assessing employees' skills, interests, and aspirations, and aligning
them with organizational goals to create career paths.

2. Training and Development:

Providing employees with opportunities for learning and skill development to
enhance their capabilities and prepare them for advancement.

3. Performance Management:
Regularly evaluating employees' performance, providing feedback, and setting
goals to help them progress in their careers.

4. Succession Planning:
Identifying and developing high-potential employees to fill key leadership
positions in the future.

5. Mentoring and Coaching:

Pairing employees with experienced mentors or coaches who can provide
guidance, support, and advice on career development.

6. Career Counseling:
Offering personalized guidance to employees on career options, job opportunities,
and skill development based on their individual goals and aspirations.
Name: Muhammad Faisal

Student ID: 19887

Topics 4 : Compensation in HR:

Compensation in HRM involves a comprehensive approach to rewarding
employees for their contributions to the organization. Let's delve into the details
with examples:
1. Base Salary:

Base salary is the fixed amount of money paid to an employee for their work on a
regular basis, typically expressed as an annual or monthly amount.

Example: An employee is hired as a software engineer with a base salary of

$80,000 per year.

2. Bonuses and Incentives:

Bonuses are additional payments made to employees as a reward for achieving

specific goals or performance targets.

Incentives are rewards provided to motivate employees to achieve certain

outcomes or behaviors.

Example: A sales team member receives a quarterly bonus of $1,000 for

exceeding their sales targets.

3. Benefits:

Benefits are non-monetary rewards provided to employees to enhance their overall

compensation package and well-being.

Examples include health insurance, dental and vision coverage, life insurance,
disability insurance, and retirement plans such as 401(k) contributions and
employer matching.
Example: An employee receives comprehensive health insurance coverage,
including medical, dental, and vision benefits, paid for in part or entirely by the
employer.

4. Paid Time Off (PTO):

Paid time off includes vacation days, sick leave, and holidays for which employees
receive their regular pay while not working.

Example: An employee is entitled to 15 days of paid vacation leave per year, in

addition to 10 paid holidays and 5 sick days.

5. Perks and Amenities:

Perks are additional benefits or amenities provided to employees beyond their

regular compensation.

Examples include flexible work arrangements, remote work options, company-

provided meals or snacks, gym memberships, and employee discounts.

Example: A company offers employees the option to work remotely twice a week
and provides free snacks and beverages in the office.

6. Recognition and Rewards Programs:

Recognition programs acknowledge and reward employees for their achievements,

contributions, and years of service.

Examples include Employee of the Month awards, spot bonuses, and milestone
rewards for years of service.

Example: An employee who consistently demonstrates outstanding performance

receives recognition in the form of a certificate, a personalized letter from
management, and a gift card.
Name : Abdul Mateen

Student ID : 19930

Topic 5: Headcount Budget:

In Human Resource Management (HRM), a headcount budget refers to the planned

allocation of resources for hiring and maintaining staff within an organization.

Here are some key details about headcount budgets:

1. Purpose:

The primary purpose of a headcount budget is to forecast and allocate resources for
the number of employees needed to support the organization's operations and
strategic goals.

2. Components:

A headcount budget typically includes several components:

Forecasted number of employees by department, team, or job role.

Salary and benefits expenses associated with each employee.

Hiring and onboarding costs, including recruitment expenses and training.

Attrition rates and costs associated with employee turnover.

Contingency allowances for unexpected changes or growth.

3. Data Sources:

Creating a headcount budget requires collecting and analyzing data from various
sources, including historical staffing levels, turnover rates, business forecasts, and
strategic plans.
4. Alignment with Strategic Goals:

A well-developed headcount budget aligns with the organization's strategic

objectives. It considers factors such as anticipated growth, changes in market
conditions, technological advancements, and shifts in customer demands.

5. Budgeting Process:

The process of creating a headcount budget typically involves collaboration

between HR professionals, department managers, finance teams, and senior
leadership. It may require multiple iterations and adjustments to reflect changing
circumstances.

Name: Ammara Abubaker

Student ID: 20325

Topic 6 : OPEX OPERATIONAL EXPENDITURE :

Operational expenditure (OPEX) in human resource management refers to the

ongoing costs associated with the day-to-day operations of managing employees
within an organization.

These expenses are necessary to keep the HR department functioning smoothly and
efficiently.

For Example:

Salaries and wages for staff, employee benefits such as health insurance and
retirement contributions, training and development programs, recruitment and
hiring expenses like advertising job postings and conducting interviews, and
administrative costs such as office supplies and software subscriptions are all
considered OPEX in HR management.

These expenses are essential for maintaining a productive workforce and ensuring
the smooth operation of HR functions within the organization.
Name : Bilal

Student ID ; 20329

TOPIC 7 : COPEX Capital Expenditure:

Copex is important for companies to grow and maintain their business by investing
in new property, plant, equipment (PP&E), products, and technology. Financial
analysts and investors pay close attention to a company’s capital expenditures, as
they do not initially appear on the income statement but can have a significant
impact on cash flow.

Key Highlights

•A capital expenditure, or Copex, is the purchase of long-term physical or fixed

assets used in a business’s operations.

•Financial analysts and investors pay close attention to a company’s capital

expenditures, as they do not initially appear on the income statement but can have
a significant impact on cash flow.

•The calculation of free cash flow deducts capital expenditures. Free cash flow is
one of the most important calculations in finance and serves as the basis for
valuing a company.

When to Capitalize vs. Expense:

The decision of whether to expense or capitalize an expenditure is based on how

long the benefit of that spending is expected to last. If the benefit is less than 1
year, it must be expensed directly on the income statement. If the benefit is greater
than 1 year, it must be capitalized as an asset on the balance sheet.

Net Copex can be calculated either directly or indirectly. In the direct approach, an
analyst must add up all of the individual items that make up the total expenditures,
using a schedule or accounting software. In the indirect approach, the value can be
inferred by looking at the value of assets on the balance sheet in conjunction with
depreciation expense.

Direct Method:

• Amount spent on asset #1

• Plus: Amount spent on asset #2

• Plus: Amount spent on asset #3

• Less: Value received for assets that were sold

• = Net Copex

Indirect Method:

• PP&E Balance in the current period

• Less: PP&E balance in the previous period

• Plus: Depreciation in the current period

• = Net Copex

Copex in Valuation:

In financial modeling and valuation, an analyst will build a DCF model to

determine the net present value (NPV) of the business. The most common
approach is to calculate a company’s unlevered free cash flow (free cash flow to
the firm) and discount it back to the present using the weighted average cost of
capital (WACC).

Below is a screenshot of a financial model calculating unlevered free cash flow,

which is impacted by capital expenditures.

Name: Danish
Student ID: 19771

Topic 8: Equal Employment Opportunity (EEO)

Equal Employment Opportunity (EEO) is a fundamental principle that ensures

individuals are treated fairly and without discrimination in the workplace. Here's
an overview of the topic:

EEO refers to the principle of providing equal opportunities for all individuals,
regardless of their race, color, religion, sex, national origin, age, disability, or other
protected characteristics. It prohibits discrimination in all aspects of employment,
including recruitment, hiring, promotion, compensation, training, and termination.
Legal Framework:
EEO laws and regulations are enforced by government agencies such as the Equal
Employment Opportunity Commission (EEOC) in the United States. These laws
include Title VII of the Civil Rights Act of 1964, the Age Discrimination in

Key Principles:

Non-Discrimination:

Employers must not discriminate against individuals based on protected

characteristics.

Equal Opportunities:

All employees and job applicants should have an equal chance to succeed based on
their qualifications and merit.
Reasonable Accommodation: Employers must provide reasonable
accommodations to individuals with disabilities to enable them to perform their job
duties.
Affirmative Action: In some cases, employers may implement affirmative action
programs to address past discrimination and promote diversity in the workforce.

Employer Responsibilities:
Employers have a responsibility to create a workplace environment that is free
from discrimination and harassment. This includes developing EEO policies,
providing training to employees and managers, conducting regular reviews to
ensure compliance, and addressing complaints of discrimination or harassment
promptly and effectively.

Employee Rights:
Employees have the right to work in an environment free from discrimination and
harassment.

Benefits of EEO:
Promoting EEO in the workplace has numerous benefits, including:

 Attracting and retaining top talent from diverse backgrounds.

 Improving employee morale, engagement, and productivity.
 Reducing the risk of legal liabilities and costly litigation.

Challenges and Future Trends:

Despite progress in promoting EEO, challenges such as unconscious bias, systemic
discrimination, and pay inequity still exist in many workplaces. Future trends
include increased focus on diversity, equity, and inclusion (DEI) initiatives, as well
as leveraging technology to address EEO issues and improve workplace fairness.

Overall, EEO is essential for creating a fair, inclusive, and respectful workplace
where individuals can thrive based on their abilities and contributions, regardless
of their background or characteristics. Employers, employees, and policymakers all
play a critical role in promoting and upholding the principles of EEO.

Name: Syed Jehanzaib Ali

Student ID: 20224

Topic 9: DEIB (Diversity, Equity, Inclusion, and

Belonging) :

DEIB, which stands for Diversity, Equity, Inclusion, and Belonging, is a

framework aimed at fostering a more inclusive and equitable environment within
organizations and communities.

Diversity:
Refers to the variety of identities and perspectives present within a group. This
includes differences in race, ethnicity, gender, sexual orientation, religion, age,
ability, socioeconomic background, and more. Embracing diversity means
recognizing, valuing, and celebrating these differences.

Example:
In a workplace, diversity might be seen in having employees from different
cultural backgrounds, genders, ages, and abilities contributing to a team project.
Each person brings unique experiences and viewpoints to the table, enriching the
discussion and enhancing creativity.

Equity:
Focuses on ensuring fairness and impartiality in the treatment of all individuals,
acknowledging that people come from different starting points and may require
different resources or support to thrive. Equity seeks to address systemic barriers
that may prevent certain groups from fully participating or accessing opportunities.

Example:
An educational institution implementing equity might provide additional tutoring
or resources for students from underprivileged backgrounds to ensure they have the
same opportunities for success as their peers from more advantaged backgrounds.

Inclusion:
Involves creating an environment where all individuals feel respected, valued, and
empowered to fully participate and contribute. It goes beyond just having diversity
but actively involves fostering a culture of belonging where everyone's
perspectives are heard and respected.

Example: A company promoting inclusion might establish employee resource

groups where individuals from marginalized communities can come together to
share experiences, support one another, and advocate for change within the
organization.

Belonging:
Focuses on creating a sense of connection and community where individuals feel
accepted and valued for who they are. It emphasizes the importance of creating
spaces where everyone feels they can bring their authentic selves without fear of
judgment or discrimination.

Example:
A community organization hosting events that celebrate various cultural holidays
and traditions, inviting all members to participate regardless of their background,
helps foster a sense of belonging and unity among its diverse membership.

DEIB is about creating environments where diversity is embraced, equity is

ensured, inclusion is practiced, and everyone feels a sense of belonging, ultimately
leading to stronger, more vibrant communities and organizations.

Name: M. Shahzaib

Student ID: 19769

Topic 10 : Potential Violence in HRM :

Addressing potential violence in Human Resource Management (HRM) is crucial

to ensuring a safe and healthy work environment for employees. HR professionals
play a significant role in preventing and managing workplace violence through
various strategies:

1. Policies and Procedures:

HRM involves developing and implementing clear policies and procedures that
outline zero-tolerance for workplace violence. These policies should define what
constitutes violence, including physical, verbal, or psychological aggression, and
establish protocols for reporting incidents and seeking assistance.

2.Training and Education:

HR departments organize training sessions to educate employees and managers

about recognizing early warning signs of potential violence, conflict resolution
techniques, and de-escalation strategies. By providing employees with the
necessary skills and knowledge, HR helps empower them to respond effectively to
volatile situations.

3. Conflict Resolution Mechanisms:

HR professionals act as mediators in resolving conflicts between employees,

managers, or other stakeholders before they escalate into violence. They facilitate
open communication channels, encourage dialogue, and offer impartial guidance to
find mutually acceptable solutions.

4. Security Measures:

Collaborating with security personnel, HR implements security measures such as

access control, surveillance systems, and emergency response plans to mitigate the
risk of violence in the workplace. HR also conducts risk assessments to identify
potential hazards and develop strategies for prevention and preparedness.

5. Employee Assistance Programs (EAP):

HR oversees the implementation of Employee Assistance Programs that provide

confidential counseling and support services to employees experiencing personal
or work-related stressors. EAPs offer a safe space for employees to seek help and
address underlying issues that may contribute to violent behavior.

6. Promoting a Positive Work Culture:

HR fosters a culture of respect, inclusivity, and collaboration within the

organization, where employees feel valued, heard, and supported. By promoting
positive relationships and teamwork, HR helps create a conducive environment
that discourages violence and promotes mutual respect.

By proactively addressing potential violence in HRM through policies, training,

conflict resolution mechanisms, security measures, employee assistance programs,
and promoting a positive work culture, organizations can effectively safeguard the
well-being of their employees and maintain a safe workplace environment.

Name : Maryam Noor

Student ID: 20185

Topic 11: Hire Purchase Agreement:

A Hire Purchase (HP) agreement is a method of buying goods through installment
payments. It's like renting with the option to buy. Here's how it works:

Imagine you want to buy a car, but you can't afford to pay the full price upfront.
With an HP agreement, you can make a down payment and then pay the remaining
amount in monthly installments. While you're making payments, you can use the
car as if it's yours, but you don't actually own it until you've made all the payments.

For example: let's say you find a car worth $20,000. You make a down payment
of $5,000 and agree to pay the remaining $15,000 in monthly installments over
three years. Each month, you pay a fixed amount, which includes a portion of the
purchase price plus interest. Once you've made all the payments, the car becomes
yours outright.

HP agreements offer flexibility and convenience, making big purchases more

manageable for individuals who might not have the funds to buy outright. It's a
practical option for acquiring assets like cars, furniture, or equipment without
needing a large upfront payment.

Name: Sualiha Anwar

Student ID: 20267

Topic 12: BUDGET VARIANCE:

In HRM, budget variance analysis involves comparing the planned or budgeted
expenses for HR-related activities with the actual expenses incurred during a
specific period, such as a month, quarter, or year.

1. Budgeted Amount:

This is the amount of money allocated or planned for HR-related activities within
an organization. It includes expenses such as salaries, benefits, recruitment costs,
training programs, employee development initiatives, HR technology investments,
and other HR functions.
2. Actual Amount Spent:

This is the actual expenditure incurred by the HR department during the same
period. It reflects the real costs associated with carrying out HR activities,
including any unexpected expenses or changes in spending patterns.
3. Calculating Variance:

The budget variance is calculated by subtracting the actual amount spent from the
budgeted amount. The formula is:

Budget Variance = Actual Amount Spent - Budgeted Amount

4. Interpreting Variance:

Analyzing budget variances allows HR managers to understand where they have

overspent or underspent relative to their budgeted amounts. A favorable variance
indicates that expenses were lower than expected, which could result from cost-
saving measures or efficiencies in operations.

5. Root Cause Analysis:

Once variances are identified, HR managers conduct a root cause analysis to

determine why the discrepancies occurred. This analysis may involve reviewing
spending patterns, assessing the impact of external factors (such as market trends
or regulatory changes), evaluating the effectiveness of HR programs or initiatives,
and identifying areas for improvement.

6. Adjusting Budgets and Strategies:

Based on the variance analysis and root cause findings, HR managers may need to
adjust their budgets, reallocate resources, or revise their HR strategies and
initiatives to better align with organizational goals and financial constraints.

Name: Abdul Rehman

Student ID: 19860

Topic 13: Orientation and Onboarding in HRM:

Orientation:

Orientation is the process of getting a new hire situated in their new workplace. It
involves introducing them to their coworkers, their managers, and the organization
in general. They are given a rundown of their new position and they also take the
time to fill out any paperwork they’re required to file.

Orientation usually takes the first few days — and possibly even the first full week
— of a new hire’s employment.
Onboarding:

Onboarding is the process of ensuring that a new hire becomes fully integrated into
the organization. While orientation includes a walking tour and a meet-and-greet,
onboarding is a more rigorous process in which a new employee is able to dive into
what makes their new company tick.

During onboarding, the new employee learns about organizational values,

company culture, and the goals they will be working with their colleagues to
achieve.