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Chapter (10) - HR

Brief HR Explanation

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25 views

Chapter (10) - HR

Brief HR Explanation

Uploaded by

ahmedgelix
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Human Resource Management

Human Resources (HR):


– It refers to the people comprising a organization’s workforce.

Human Resource Management (HRM):


– It refers to the set of organizational activities directed at attracting, developing, and maintaining an effective workforce.

Human Capital:
– It reflects the organization’s investment in attracting, retaining, and motivating an effective workforce.

Talent Management:
– It refers to the view that the people in an organization represent a portfolio of valuable talents that can be effectively
managed in ways best targeted to organizational success.

The Strategic Importance of HRM:


– Human resources has a substantial impact on a firm’s bottom-line performance.
– Many firms are developing strategic HR plans.
– Chief officer reports to CEO.
1) HR Planning
- It involves planning for the current and future workforce.

- It involves handling a Job Analysis, which refers to the systematic analysis of jobs within an organization. It
includes preparing 2 main documents::
A) Job Description
- It refers to the description of the duties and responsibilities of a job, its working conditions, and the tools,
materials, equipment, and information used to perform it.

B) Job Specification
- It refers to the description of the skills, abilities, and other credentials and qualifications required in the person
needed to perform this job effectively.

- It also involves forecasting the HR Demand and Supply, which involves:


1) Forecasting Internal Supply, which refers to the number / type of people who will be in the firm at a future
date through:
A)Replacement Chart, which is a list of each management position, who occupies it, how long that person will
likely stay in the job, and who is qualified as a replacement.
B)Employee Information System (Skills Inventory), which is a computerized system containing information
on each employee’s education, skills, work experiences, and career aspirations.

2) Forecasting external supply, which refers to the number / type of people who will be available for hiring
from the labor market at large through: State employment commissions / Government reports / College
information.
• It also involves Matching HR Supply and Demand to:
Alleviate Shortfalls through:
• Seeking new hires.
• Retraining and transferring present employees.
• Retaining retirees.
• Installing more productive systems.

Manage Overstaffing through:


• Transferring extra employees.
• Not replacing employees who quit (attrition).
• Encouraging early retirement.
• Laying off personnel.
2) Staffing the Organization
-It involves Recruiting, Selecting and Hiring new workforce.
-1) Recruiting, which refers to the process of attracting qualified persons to apply for the jobs that an organization is
seeking to fill. It includes 2 main types:
1) Internal Recruiting, which involves considering present employees as candidates for openings through Promotion
from within, Union Contracts and Job Bidding.
2) External Recruiting, which involves attracting persons outside the organization to apply for jobs through State
Employment Agencies, Private Employment Agencies and Advertisements.

N.B.: Recruiting involves Realistic Job Preview (RJP), which involves providing the applicant with a real picture of
what it would be like performing the job the organization is trying to fill.

2) Selecting HR, which refers to choosing the best candidate through several techniques, from which are:
– Application Forms (no illegal questions).
– Tests (Ability, Skills, Aptitude, Knowledge, Attitude).
– Interviews.
– Others such as Polygraph Tests - Physical Examinations - Drug Tests - Credit Checks - Reference checks.

N.B.: Interviews Validity is increased by:


a) Training interviewers to reduce individual bias.
b) Using a structured interview format with job-related questions to improve consistency, reduce bias, and eliminate
illegal questioning of applicants.

© 2009 Pearson Education, Inc.


3) Developing Workforce
• Training refers to teaching operational or technical employees how to do the job for which they were hired.
• Development refers to teaching managers and professionals the skills needed for both present and future jobs.

•Training involves several means, from which are


a) On-the-Job Training, which is a training, sometimes informal, conducted while an employee is at work
b) Off-the-Job Training, which is a training conducted in a controlled environment away from the work site
c) Vestibule Training, which is an off-the-job training conducted in a simulated environment

• Performance Appraisal refers to the evaluation of an employee’s job performance in order to determine the degree to which the employee
is performing effectively. It involves:
a) Defining performance standards.
b) Observing performance.
c) Writing up the assessment.
d) Discussing the appraisal.

•360-Degree Feedback is a performance appraisal technique in which managers are evaluated by everyone around them (boss, peers, and
subordinates).

© 2009 Pearson Education, Inc.


4) Compensation and Benefits
- The Compensation System refers to the total package of rewards that a company offers employees in return for their labor. It includes
2 main categories:
a) Wages, which is the money paid for the time worked.
b) Salary, which is periodical money paid to perform and handle the responsibility of a job.

N.B.: Factors affecting compensation include:


a) Competitors’ wage offerings.
b) Internal wage and salary structure including job value, performance, and longevity.

- The Incentive Program refers to the special compensation program designed to motivate high performance. It includes 2 main types
Individual Incentives and Company-Wide Incentives::
a) Bonuses, which are individual performance incentive in the form of a special payment made over and above the employee’s salary.
b) Merit Salary Systems, which are individual incentive linking compensation to performance in non-sales jobs.
c) Pay for Performance (variable pay), which are individual incentive that rewards a manager for especially productive output.
d) Profit-Sharing Plans, which are incentive plan for distributing bonuses to employees when company profits rise above a certain level.
e) Gain Sharing Plans, which are incentive plan that rewards groups for productivity improvements.
f) Pay-for-Knowledge Plans, which are incentive plan to encourage employees to learn new skills or become proficient at different jobs.

© 2009 Pearson Education, Inc.


• Benefits Programs are compensation other than wages and salaries. It is either:
1) Mandatory (required by law)
• Social Security retirement benefits.
• Workers’ compensation insurance, which are legally required insurance for compensating workers injured on the job
to protect both the company and the worker.

2) Discretionary (optional)
• Health, life, and disability insurance.
• Vacations and holidays.
• Employee assistance programs.
• Retirement (pension) plans.

N.B.: Cafeteria Benefits Plans, which are benefit plan that involves setting aside a certain amount of money (limit) for
benefits per employee, where each employee chooses how they wish to spend those funds from a variety of alternative
benefits.

© 2009 Pearson Education, Inc.


HRM Legal Context
•Equal Employment Opportunity Laws, which protect workers from unfair or inappropriate (non-job-related)
discrimination in the workplace.

•Protected Classes in the Workplace, which protects certain individuals sharing common characteristics (Race,
color, religion, gender, age, disability status, … etc.).

•Equal Employment Opportunity Commission (EEOC), which is Federal agency that enforces discrimination-
related laws

•Affirmative Action, which is a written plan for actively recruiting, hiring, and developing members of protected
classes.

© 2009 Pearson Education, Inc.


New Challenges in the Changing Workplace
• Managing Workforce Diversity, which is the range of workers’ attitudes, values, beliefs, and behaviors that differ by
gender, race, age, ethnicity, physical ability, and other relevant characteristics, which can be a competitive advantage.

• Managing Knowledge Workers, where knowledge workers (Engineers and Scientists) add value because of what they
know.

• Contingent Workers, where a contingent worker is a person who works for an organization on something other than a
permanent or full-time basis including independent contractors, on-call workers, temporary employees, contract and leased
employees and part-time workers.
N.B.: Managing Contingent and Temporary Workers include:
– Careful planning for coordinated use of temporary workers.
– Understanding the advantages and disadvantages of contingent workers.
– Assessing the true cost of using contingent workers.
– Developing a strategy for integrating contingent workers into the organization.

© 2009 Pearson Education, Inc.


Dealing with Organized Labor
• Labor Union, which is a group of individuals working together to achieve shared job-related goals, such as higher
pay, shorter working hours, more job security, greater benefits, or better working conditions.

• Labor Relations, which is the process of dealing with employees who are represented by a union.

• Collective Bargaining, which is the on-going process by which union leaders and managers negotiate. Draft, and
administer common terms and conditions (compensation, benefits, job security and management rights) of
employment for the workers represented by unions.

N.B.: Union Tactics when bargaining fails include Strike, Picketing, Boycott and Work slowdown, whereas the
Management Tactics when bargaining fails including Lockouts and Strikebreakers.

Resolving Disputes
Mediation
Voluntary Arbitration
Compulsory Arbitration

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