Unit 3 Human Resources

Management
Dr Naga Sai Kumar Tirthala MSc MBA
UGCNET APSET PhD ( NIT warangal)
 Introduction
• Strategic human resource management creates a clear
connection between the goals of the organization and
the activities of the people who work there. All
employees should see the link between their daily
tasks and achievement of the goals.
• The HR functions (staffing, training, and development)
are important to achieve organization strategy through
human resources by maintaining a productive and
talented workforce.
• Companies that link strategy with human resources
show increased profitability
 Definition of HRM
• HRM is the part of the organization concerned
with the “people” dimension.
• HRM can be viewed in one of two ways.
• First, HRM is a staff or support function in the
organization. Its role is to provide assistance in
HRM matters to line employees, or those directly
involved in producing the organization’s goods
and services.
• Second, HRM is a function of every manager’s
job.
 Importance of HRM
• Every organization is comprised of people.
• Acquiring their services, developing their
skills, motivating them to high levels of
performance, and ensuring that they maintain
their commitment to the organization are
essential to achieving organizational
objectives
• It consists of four basic functions:
• (1) staffing,
• (2) training and development,
• (3) motivation, and
• (4) maintenance.
• HRM is made up of four activities: (1) hiring
people, (2) preparing them, (3) stimulating
them, and (4) keeping them.
 HRM Goals
• Staffing: Strategic human resource planning • Recruiting •
Selection
• Training and Development • Orientation • Employee
training • Employee development • Career development •
• Motivation theories and job design • Performance
appraisals • Rewards and compensation • Employee
benefits
• Maintenance • Safety and health • Communications •
Employee relations
• External Factors: Government legislation Management
practices Globalization External influences Labor unions
(labor relations) Motivation
 Human Resource planning
• Human resource planning Process of
determining an organization’s human
resource needs.
• An organization ensures that it has the right
number and kinds of people at the right place,
at the right time, capable of effectively and
efficiently completing those tasks that will
help the organization achieve its overall
strategic objectives.
 Mission of Company and Defining
Objectives
• Mission statement: A brief statement of the reason an
organization is in business. It’s the foundation on
which every decision in the organization should be
made.
• Google’s mission is to organize the world’s information
and make it universally accessible and useful.
• After reaching agreement on what business the
company is in and who its consumers are, senior
management then begins to set strategic goals.
• During this phase, these managers define objectives
for the company for the next five to twenty years.
These objectives are broad statements that establish
targets the organization will achieve.
 From Goals to Assessment
• After these goals are set, the next step in the strategic
planning process begins—the corporate assessment.
• During this phase, a company begins to analyze its
goals in terms of whether they can be achieved with
the current organizational resources.
• Many factors are considered in the company’s analysis:
its current strategies, its external environment, its
strengths and weaknesses, and its opportunities and
threats. This is commonly referred to as a gap or SWOT
(strengths, weaknesses, opportunities, and threats)
analysis. {Internal ( SW) and External ( OP)}
 SWOT Analysis
• It serves as the link between the organization’s
goals and ensuring that the company can meet
its objectives—that is, establishes the direction of
the company through strategic planning.
• Strengths: An organization’s best attributes and
abilities.
• Core competency: Organizational strengths that
represent unique skills or resources.
• Weaknesses: Resources an organization lacks or
activities it does poorly.
Purpose (Mission) to People Linkage
 Job analysis
• Job analysis Provides information about jobs currently being done and the
knowledge, skills, and abilities that individuals need to perform the jobs
adequately.

• A job analysis is a systematic exploration of the activities within a job. It is

a technical procedure used to define a job’s duties, responsibilities, and
accountabilities.
• This analysis “involves the identification and description of what is
happening on the job accurately and precisely identifying the required
tasks, the knowledge, and the skills necessary for performing them, and

the conditions under which they must be performed .”

 Job Analysis Methods
• Observation method: A job analysis technique in which
data are gathered by watching employees work.
• Individual interview method: Meeting with an employee to
determine what his or her job entails.
• Group interview method Meeting with a number of
employees to collectively determine what their jobs entail.
• Structured questionnaire method: A specifically designed
questionnaire on which employees rate tasks they perform
in their jobs.
• Technical conference method: A job analysis technique that
involves extensive input from the employee’s supervisor.
 Steps in a Job Analysis
• Job analysis begins with a clear understanding
of the job and its link to organizational
strategy.
• HR next determines the tasks necessary to
successfully complete the job, then
determines the skills necessary to complete
those tasks.
• Workers and supervisors need to be involved
in the process.
 Job Description
• A job description is a written statement of what the jobholder does,
how it is done, under what conditions, and why. (A statement
indicating what a job entails.)
• It should accurately portray job content, environment, and
conditions of employment.
• A common format for a job description includes:
■ Job title usually describes the job and hints at the nature and
duties of the job. (Position in hierarchy)
■ Job identification section includes the department location of
the job, who the person reports to, a job identification code.
■ Job duties or essential functions lists the job duties in order of
importance.
■ Job specifications that explain the personal qualifications
necessary to perform the duties listed above including specific
skills, education, certification, and physical abilities.
• Job Title: Benefits Manager
• Supervises: Staff of three
• Job Code: 11-3041.00
• Department: Human Resources
• Effective Date: July 30, 2009
• Reports to: Director, Human Resources
• Job Summary: Manages employee benefits
program for organization
• Duties and Responsibilities: • Plans and directs
implementation
 Job specification
• Statements indicating the minimal acceptable
qualifications incumbents must possess to
successfully perform the essential elements of
their jobs.
Job Specifications:
•Specialized Knowledge/Skills: Excellent written
and verbal communications skills as well as
deductive and inductive reasoning skills are
critical.
•Education/Experience: 2–4 years’ experience. A
bachelor’s degree is preferred.
•Training/Equipment: Strong MS Office skills.
•Work Environment/Physical Requirements:
General office environment. Regular travel is not
expected in this position.
 Qs &As
• 1. Describe the importance of human resource planning.
• Employment planning is the process by which an
organization ensures that it has the right number and kinds
of people capable of effectively and efficiently completing
tasks that directly support the company’s mission and
strategic goals.
• 2. Define the steps involved in the human resource
planning process.
• The steps in the employment planning process include
formulating a mission statement, establishing corporate
goals and objectives, assessing current human resources,
estimating supplies and demand for labor, and matching
demand with current supplies of labor.
 Recruiting
• It is the process of seeking sources for job
candidates.
• Recruiter Represents employer to prospective
applicants at colleges and job fairs.
• Recruiting Sources:
• The Internal Search
• The External Search
 The Internal Recruitment
• A promotion-from-within concept.
• promotes good public relations
• builds morale
• encourages individuals who are qualified and
ambitious
• improves the probability of a good selection, because
information on the individual’s performance is readily
available
• is less costly than going outside to recruit
• helps with recruiting entry level workers ■ reduces
orientation and training costs
 Employee referral
• A recommendation from a current employee
regarding a job applicant
• Employee referrals are an excellent means of
locating potential employees for hard to-fill
positions.
 External Searches
• Blind-box ad An advertisement that does not
identify the advertising organization.
• Employment agencies Assists in matching
employees seeking work with employers seeking
workers.
• Schools, Colleges, and Universities Educational
institutions at all levels offer opportunities for
recruiting recent graduates. Most educational
institutions operate placement services where
prospective employers can review credentials
and interview graduates.
• Employers see a prospective employee’s
performance through cooperative arrangements
and internships
• job fairs: Events attended by employer
representatives or recruiters with the goal of
reaching qualified candidates.
• Unsolicited Applicants Unsolicited applications,
whether they reach the employer by letter, e-
mail, online application, telephone, or in person,
constitute a source of prospective applicants
• Online resumes: Résumés created and formatted
to be posted on online résumé or job sites.
• Leased employees: Individuals hired by one firm
and sent to work in another for a specific time.
• Independent Contractors: Often referred to as
consultants, independent contractors are taking
on a new meaning. Companies may hire
independent contractors to do specific work at a
location on or off the company (WorkFromHome)
• Suppose an employee wants to work but also
be available to his or her school age children,
take care of elderly parents, or just wants a
more flexible situation. Allowing the individual
to work at home, on his or her time, can be a
win-win solution to the problem
 Qs &As
1. Define the term recruiting .
• Recruiting is discovering potential applicants for
actual or anticipated organizational vacancies. It
involves seeking viable job candidates.
2. Identify the dual goals of recruiting.
• The two goals of recruiting are to generate a
large pool of qualified applicants and to provide
enough information for individuals to self-select
out of the process.
3. Identify the principal sources for recruiting employees.
• The principal sources for recruiting employees include
internal search, advertisements, employee referrals/
recommendations, employment agencies, temporary
leasing services, schools, colleges, universities,
professional organizations, the Internet (or online
recruiting), and casual or unsolicited applicants.
Employee leasing, temporary employees, and
independent contractors continue to be good sources
of employees.
4. Describe the benefits of online recruiting.
Internet recruiting provides businesses with low-cost and
unprecedented access to potential employees worldwide.
Online recruiting also helps increase diversity and finds
people with unique talents.
5.Explain the concept of employee leasing and the
organizational benefits of such an arrangement.
Employee leasing refers to when individuals employed in
an organization actually work for the leasing firm. One
reason for the popularity of leasing is cost. The acquiring
organization pays a flat fee for the employees and is not
responsible for benefits or other costs it would incur for a
full-time employee, such as Social Security payments.
 Selection
• The selection process typically consists of
eight steps:
• (1) initial screening interview,
• (2) completion of the application form,
• (3) pre-employment tests,
• (4) comprehensive interview,
• (5) conditional job offer,
• (6) background investigation,
• (7) medical or physical examination, and
• (8) permanent job offer.
 Initial Screening
• The first step in the selection process involves
initial screening of potential candidates. This
initial screening is, in effect, a two-step
procedure:
• (1) screening inquiries and
• (2) screening interviews.
• If the company’s recruiting effort has been
successful, they will have a pool of potential
applicants.
• The organization can eliminate some of these
respondents based on the job description and
job specification. Perhaps candidates lack
adequate or appropriate experience, or
adequate or appropriate education.
• The screening interview is also an excellent
opportunity for HRM to describe the job in
enough detail so the candidates can consider
if they are really serious about applying.
• Sharing job description information frequently
encourages the unqualified initial screening The
first step in the selection process whereby job
inquiries are sorted. or marginally qualified to
voluntarily withdraw from candidacy with a
minimum cost to the applicant or the
organization. Phone interviews are efficient ways
to hold screening interviews. HRM needs to
remember to keep the phone screening interview
short.
• Discuss the candidate’s relevant experience as
submitted on the application form and
résumé.
• Listen for energy and enthusiasm in their
voice, and remember to project the company
culture or employment “brand.”
• The candidate is evaluating you and the
organization too. Be sure to tell them when
the next step will occur and what to expect.
• Do not offer an official job interview during
the phone screening interview.
• Another important point during the initial
screening phase is to identify a salary range.
Most workers are concerned about their
salaries, and even if a job opening sounds
exciting, a low salary may drive away excellent
talent.
• Do not need to mask salary data
• Application form: Company-specific
employment form used to generate specific
information the company wants.
• Comprehensive Interviews Applicants who
pass the initial screening, application form,
and required tests typically receive a
comprehensive interview. The applicant may
be interviewed by HRM interviewers, senior
managers within the organization.
• Conditional job offer: A tentative job offer that
becomes permanent after certain conditions
are met.
• Background investigation: The process of
verifying information job candidates provide.
• medical/physical examination: An
examination to determine an applicant’s
physical fitness for essential job performance
• Job Offers Individuals who perform
successfully in the preceding steps are now
considered eligible to receive the employment
offer.
• 1. Describe the selection process. The
selection process includes the following: initial
screening interview, completion of the
application form, employment tests,
comprehensive interview, background
investigation, conditional job offer, physical or
medical examination, and the permanent job
offer.
• In the discrete selection process, each step
acts as a stand-alone predictor—failing to pass
any of these discrete steps means
disqualification from the job. In the
comprehensive approach, candidates go
through most of the steps before a final
decision about them is rendered.
• 2. Identify the primary purpose of selection
activities. Selection devices provide managers
with information that helps them predict
whether an applicant will prove a successful
job performer. Selection activities primarily
predict which job applicant will be successful
if hired.
• During the selection process, candidates also
learn about the job and organization. Proper
selection can minimize the costs of
replacement and training, reduce legal
challenges, and result in a more productive
workforce
 Training Methods
• Employee training is a learning experience: it
seeks a relatively permanent change in
employees that improves job performance.
Thus, training involves changing skills,
knowledge, attitudes, or behavior.
• This may mean changing what employees
know, how they work, or their attitudes
toward their jobs, co-workers, managers, and
the organization
• Employee development Future-oriented
training that focuses on employee personal
growth.
• Job Rotation: Job rotation is used in employee
development as well as training. Job rotation
can be either horizontal or vertical. Vertical
rotation is nothing more than promoting a
worker into a new position. In this chapter, we
will emphasize the horizontal dimension of job
rotation, also known as a short-term lateral
transfer.
• Job rotation represents an excellent method
for broadening an individual’s exposure to
company operations and for turning a
specialist into a generalist. In addition to
increasing the individual’s experience and
allowing him or her to absorb new
information, it can reduce boredom and
stimulate the development of new ideas.
• Lecture Courses and Seminars Traditional
forms of instruction revolve around formal
lecture courses and seminars. These help
individuals acquire knowledge and develop
their conceptual and analytical abilities
• Simulations While critical in training
employees on actual work experiences,
simulations are probably even more popular
for employee development.
• The more widely used simulation exercises
include case studies, decision games, and role
plays.
• Employee development through case-study
analysis was popularized at the Harvard
Graduate School of Business.
• Taken from the actual experiences of
organizations, these cases represent attempts
to describe, as accurately as possible, real
 problems that managers have faced. Trainees
study the cases to determine problems,
analyze causes, develop alternative solutions,
select what they believe to be the best
solution, and implement it.
• Case studies can provide stimulating
discussions among participants, as well as
opportunities for individuals to defend their
analytical and judgmental abilities.
1. Explain why employee training is important.
Employee training has become increasingly
important as jobs have become more
sophisticated and influenced by technological
and corporate changes.
2. Define training.
Training is a learning experience that seeks a
relatively permanent change in individuals that
will improve their ability to perform on the job.
3. Describe how training needs evolve.
An organization’s training needs will evolve
from seeking answers to these questions: (a)
What are the organization’s goals? (b) What
tasks must be completed to achieve these
goals? (c) What behaviors are necessary for
each job incumbent to complete his or her
assigned tasks? and (d) What deficiencies, if
any, do incumbents have in the skills,
• knowledge, or attitudes required to perform
the necessary.
• What is career?
Career The sequence of employment positions
that a person has held over his or her life
Performance Appraisal Method
 Methods of Appraisal
• Absolute standards: Measuring an employee’s
performance against established standards.
• critical incident appraisal A performance
evaluation that focuses on key behaviors that
differentiates between doing a job effectively
or ineffectively..
• Checklist appraisal: A performance evaluation
in which a rater checks off applicable
employee attributes.
• Graphic rating scale A performance appraisal
method that lists traits and a range of
performance for each
• Forced-choice appraisal A performance
evaluation in which the rater must choose
between two specific statements about an
employee’s work behavior
• For instance, students evaluating their college
instructor might have to choose between “
• (a) keeps up with the schedule identified in
the syllabus,
• (b) lectures with confidence,
• (c) keeps interest and attention of class,
• (d) demonstrates how concepts are practically
applied in today’s organizations
• Behaviorally anchored rating scales (BARS):
A performance appraisal technique that
generates critical incidents and develops
behavioral dimensions of performance. The
evaluator appraises behaviors rather than
traits.
• Relative standards: Evaluating an employee’s
performance by comparing the employee with
other employees.
• 360-degree appraisals: Performance
evaluations in which supervisors, peers,
employees, customers, and the like evaluate
the individual