CHAPTER ONE

HRM
• What is Human Resource Management?
• Before giving answer to this question, it would be
better to define "management" itself, because
HRM belongs to the broader field of study and
practice known as management.
• Management can be defined as the process of
reaching goals through efficient utilization of
human, financial, material and informational
resources.
 What is Human Resource Management?
• Definition: Human Resource Management is the
process of achieving organizational goal by
attracting, developing, and retaining and properly
using talented human resource.
• HRM refers to the practices and policies one
needs to carry out to deal with the
• personnel aspects of the management job.
• HRM creates valueby engaging in
activities that produce the employee
• behaviors the company needs to achieve its
strategic goals.
 What is Human Resource Management?
• HRM) is the effective management of people at
work
• The goal is to make workers more satisfied and
productive
• When an organization is concerned about people,
its total philosophy, culture, orientation reflect it
• Every manager must be concerned with people
(Whether or not there is a
• human resources department)
 Importance of HRM
 Attract and retain talent human resource
 Train people for challenging roles
 Develop skills and competencies
 Promote team spirit
 Develop loyalty and commitment
 Increase productivity and profits
 Improve job satisfaction
 Enhance standard of living
 Generate employment opportunities
 HRM Activities

Job analysis defines a job in terms of specific tasks

and responsibilities and identifies the abilities, skills
and qualifications needed to perform it successfully.
Human resource planning or employment planning is
the process by which an organization attempts to
ensure that it has the right number of qualified people
in the right jobs at the right time.
Employee recruitment is the process of seeking and
attracting a pool of applicants from which qualified
candidates for job vacancies within an organization
can be selected.
 HRM Activities
 Employee selection involves choosing from the
available candidates the individual predicted to be
most likely to perform successfully in the job.
 Orientation and Placement is the formal process of
familiarizing new employees with the organization,
their jobs, their work units and employees.
Placement, on the other hand, is the assignment of
an employee to a new or different job.
 Performance appraisal is concerned with
determining how well employees are doing their
jobs, communicating that information to the
employees and establishing a plan for performance
improvement.
 HRM Activities
• Training and development activities help employees learn how
to perform their jobs, improve their performance and prepare
themselves for more senior positions.
• Compensation refers to all types of rewards that employees
receive in return for their services.
• Safety and Health involves protecting employees from injuries
caused by work-related accidents. Health refers to the
employees' freedom from illness and general physical and
mental well being.
• Career planning and development activities benefit both
employees (by identifying employee career goals, possible
future job opportunities and personal improvement
requirements) and the organization (by ensuring that qualified
employees are available when needed).
 Objectives of the HRM Function

 Employing workforce skills and abilities

efficiently
 Communicating HRM policies to all employees
 Managing change to the mutual
 advantage of individuals, groups, the enterprise,
and the public
 Helping the organization reach its goals
 Increasing job satisfaction and quality of work
life
 Maintaining ethical policies and socially
responsible behavior
Elements of Human Resource Cycle
• Selection: matching available human
resources to jobs
• Appraisal: performance management
• Rewards: focus on organizational
performance (most under- utilized and
mishandled tool)
– short-term and long-term
• Development – developing high quality
employees
 CHAPTER -2
HRM ENVIRONMENT

Environment
 comprises all those forces which have their
bearing on the functioning of various activities
including human resource activities
 Environment scanning helps HR manager
become proactive to the environment which is
characterized by change and intense
competition.
1.External Environmental Factors:
 Are forces external to HR Activities
 Include political, economic, technological,
demographic, educational policies
 A. Political and legal environment:
covers the impact of political institutions on
HRM practices
e.g.: democratic political system increases the
expectations of workers for their well-being.
Government legislation/Regulations:
 These regulations influence every process
of the HR department, including
• hiring
• training
• compensation
• termination, and etc.
 Not adhering to such regulations could
cause the company/organization to shut
down.
 Some legislation and regulation includes:
 Equal employment opportunity: it affects
recruiting, selection, evaluation, and promotion
 Compensation regulation: specifying the
minimum pay for any job, for employees with a
certain educational level, etc.
 Benefit Regulations: it requires employs to have
basic medical insurance plans for its employees.
 Worker’s safety laws: affects health and safety
programs in organizations.
 Privacy laws protecting employees’ personal
information.
 B. Economic environment
 Economic environment includes:
 growth rate
 industrial production, money
 national and per capita incomes, etc.
 All these forces have significant influence
on wage and salary levels, recruitment and
selection of employees in organizations.
 Unstable state of economy
 negative growth for economies & would
result in
 Employment rates would decrease
 Unemployment would rise up
 The social status of workers weakens.
 reduction of employees
 Changing the type and number of personnel
demanded.
 Any downgrade in the stocks and market
values would easily damage the relations
between owners and employees ….
 Stabilization of the economy
 Shows positive growth of the economy and
results in:
 The unemployment rates will decrease
 The general wage and salary levels will increase,
 Employees will be stronger
 Top managements of firms would also behave in
the favor of their personnel because of the
increased revenues.
 It would increase exportation rates that will
enlarge manufacturing, which needs an
increased employment proportion.
 C. Technological environment
 Technology is a systematic application of
organized knowledge to practical tasks.
 It has positive and negative impact on HRM
Positive impact of technology development
 It makes the job more intellectual/ upgraded.
 Improved human resource functions such
as:
 selection
 recruitment
 educating, training, performance appraisal
 C. Technological environment
 Developments in HRM can be learned faster & be
implemented.
Negative impacts of technological changes on
human resource policies.
 Decrease the need for labor, which can result in a
lower employment level.
 demand for qualified workers would be higher
 Educating and training costs will increase.
 Make some employees functionless
E. General Education Policies in a country
 Universities and other schools of a country
develop human resources
 General education policies determine the
 qualities of people/candidates
 which affects the efficiency, productivity,
and profitability of firms.
 Furthermore, if every new employee do not
carry out activities due to low skill…
General Education Policies in a country

 The organization will be exposed to cost of

training and education
 If a candidate employee is ready to work,
 then the education,
 training and development costs of employer
firm will minimize.
 Moreover, it would affect HR outcomes such
as performance, and turnover.
 2. Internal Environmental Factors
 These are the forces internal to HRM
 It consists of
 organizational culture and conflict
 Power and politics
 organizational objectives, polices,
 Size of the organization
 Structure of the organization
 Organizational Culture and Conflict
 As individuals have personality, organizations have cultures.

 HR practices need to be implemented that best fit the

organization’s culture.
 There is often conflict between organizational culture and
employee’s attitude.
 Conflict usually surfaces because of dualities such as:
• personal goal vs. organizational goal,
• discipline vs autonomy, rights vs. duties, etc.
 Such conflicts have their bearings on HR activities in an
organization.
Issues of Power and Politics
 Top management or unit managers might
prefer HRM implementations, which let them
gain power.
 They can promote anyone who is in favor of
them, recruit personnel that could support
them.
 Educating, training and development
opportunities could be given primarily to
those who are in the same side with
management.
 Nature of the Task
 The HRM activities highly influenced by the kind of
tasks/activities performed.
 Some of the issues relevant to nature task include:
 degree of physical exertion required,
 degree of environmental unpleasantness,
 physical location of work, time dimension of work,
 degree of autonomy in the task.
 Structure of the Organization
Size of the Organization
 CHAPTER -3
• JOB ANALYSIS AND HR PLANNING
 The corner stone of any organization is the
set of jobs performed by employees.
 The set of jobs provides the input needed to
accomplish the mission and objectives of the
organization.
 Thus, studying and understanding jobs is a
vital part of any Human resource program.
 Definitions of job analysis
 Job analysis is a systematic process of
determining tasks, duties and
responsibilities that make up the job and
the qualification (skill, knowledge,
experience) required to perform the job.
 Is the process of collecting and analyzing
information about jobs and employee’ s
knowledge or skills necessary to perform
them
 Is the process of defining a job in terms of
its components, activities and requirements
 When does job analysis is conducted?

1.When the organization is established /

instituted
2. When new jobs are created; and
3.When jobs are changed significantly as a result
of new technology, methods, procedures or
systems
 Job description
• Job description is a written statement that
explains the title, duties, responsibilities,
authority, accountabilities, working conditions,
conditions of employment and other aspects of
a specified job (what the worker does ).
• Uses of job description:
 It describes the job to the recruiters
 It guides newly hired employees about what they
are expected to perform.
 It is used for appraising whether the actual
activities of the employees match with their
stated duties
 Job Specification
• Job specification is a written statement that
describes the skill, knowledge, work experiences
required to perform the job (who the worker is)
• Uses of job Specification:
• It sets minimum qualifications needed in potential
candidates
• It guides selectors to select candidates with right
qualifications
• lets applicants know what skills, level of experience,
education, and abilities are required for the role.
Job analysis helps to find inform/data/ about:
A. Work activities: Information is usually
collected on the actual work activities
performed, such as
 cleaning,
 selling,
 teaching,
 painting.
Such a list may also indicate how, what and
when the worker performs each activity
 Job analysis helps to find inform/data/ about:

B. Human behaviors: Information on human

behaviors like sensing, communicating, decision-
making, and writing may also be collected.
 Included information regarding human job
demands such as:
 lifting weights,
 walking long distances, and so on.
Job analysis helps to find inform/data/ about:

C. Machines, tools, equipment, and work

aids used:
Included information regarding
 products made
 materials processed
 knowledge dealt with or applied (such as
finance or law), and
 services rendered (such as counseling or
repairing).
 Job analysis helps to find inform/data/ about:

D. Performance standards: Information is also

collected regarding performance standards (in
terms of):
 quantity
 quality and
 speed for each job duty,
 for instance by which an employee in the job
will be evaluated.
 Sources of Information for Job analysis

Main sources of data for JA :

 Employees
 Supervisor
 Manager
 Job Analyst (HR)
 Independent Expert (Outside consultant)
 Importance Of conducting Job Analysis

 Human resource planning: The number and

the type of personnel are determined by the
jobs which need to be staffed.
 Recruitment and Selection: what the job
entails and what human characteristics are
required to carry out these activities
 Compensation: is essential for estimating the
value of and appropriate compensation for
each job
 Importance Of conducting Job Analysis

Ensures Complete Assignment of Duties:

 JA is useful for ensuring that all the duties that have
to be done are in fact assigned to particular position
Training: training and development programs can
be designed on the basis of the JA
 Performance Appraisal: PA compares each
employee's actual performance with his or her
performance standards
 JA provides standards for such performance
 Importance Of conducting Job Analysis

 Safety and Health: In JA, it is possible to

identify:
 hazardous conditions and unhealthy
environmental factors such as:
 heat
 noise
 Fumes and
 dust
 Steps in Job Analysis

Step 1 :(Identify how information will be used)

• determine the types of data we collect and how we
collect them
Step 2:(Review background information)
• Review relevant background information such as:
organization charts, process charts, and job
descriptions
 Organizational chart
o show how the job in question relates to other jobs
o where it fits in the overall organization
 Steps in Job Analysis

o should identify the title of each position

o show who reports to whom/communication
channel
o A process chart: provides a more detailed
understanding of the flow of work than we can
obtain from the organization chart alone.
 It shows the flow of input to and outputs from
the job/position.
 Job description, if there is one, can provide a
good starting point from which to build our
revised job description.
 Cont…
Step 3: (Select representative positions to be
analyzed
o Taking sample jobs when jobs are similar and
many
Step 4: (Collect data to analyze job
 collect data on the characteristics of the job,
 required behaviors,
 working conditions, and the employee
characteristics needed to perform the job.
 Cont…
Step 5: (Review information with participants)
 Review the information with job incumbents
 verifying with the worker performing the job
and with his or her immediate supervisor
 this helpful to determine: correct, complete,
and easily understood by all concerned.
Step6:(Develop Job Description and Job
Specification)
 Method of collecting Job Analysis information

1) Job performance:
 job analyst actually performs the job in question
 The analyst receives firsthand experience of contextual
factors on the job
 is useful for jobs that can be easily learned
2)Personal observation
 by observing the job holder at work
 how he /she does and how much time is needed for
completion of a given task
 observe without getting directly involved in the job
 Method of collecting Job Analysis
information
3.Critical incidents:
 is a qualitative approach to job analysis used to
obtain specific, behaviorally focused descriptions of
work or other activities
 job holders are asked to describe excellent and poor
performance of the job based on their past
experience.
 The job requirements behavior will become clear.
 analyst draws the line between effective and
ineffective behaviors of workers on the job.
 Method of collecting Job Analysis information

4. Technical conference method:

 gather information from supervisors that are
experts on the job.
 the emphasis is on the supervisors, not on the
jobholders
5. Diary method:
 This is when the jobholder records his activities
in detail throughout a day, week, a month and a
year
 CONT….
 This technique requires the job incumbent to
keep a diary/log on a daily basis
 diary method is difficult as most individuals
are not disciplined enough to keep such a
diary/log.
 it is time consuming for both the jobholder
and the job analyst
 Cont…
6. Questionnaire method:
 is a widely used method of collecting jobs
information
 jobholders are given a properly designed
questionnaire aimed at eliciting relevant job-
related information
 it is difficult to motivate the participants to
complete the questionnaires truthfully and to
return back.
 Cont…
7.Checklists:
 It contains a number of activities and job
holders tick only those duties that are included
in their jobs
 Which Method to Follow?
There is no one best way to conduct a job
analysis. Wherever possible, multiple methods
of job analysis must be followed
 Potential Problems with Job analysis.

A. Resistance to change/Employee fear

 Employees resist changes because when jobs
are redefined, they may have to handle
difficulty tasks and shoulder painful
responsibilities.
B. Overemphasis on current employees
JA efforts should not place heavy emphasis on
what the employees are currently doing.
 CONT…
C. Top management support is missing
 Message of JA is often not communicated to
employees to make it clear and honesty by
TM
D. Only a single means and source are used for
gathering data
 people use single method in collecting the data
while combination of methods might provide better
job data
 CONT…
E. No training or motivations for jobholders:
 Unfortunately, job incumbents are seldom trained or
prepared to generate quality data for a job analysis.
F. Employees are not given sufficient time to complete
the analysis
 Usually JA is conducted as if it were a crash program
 employees are not given sufficient time to do a
through job analysis.
Human Resource Planning (HRP)
 It is ‘the process for ensuring that the
human resource requirements of an
organization are identified and plans are
made for satisfying those requirements’
 concerned with matching human resources
to business needs in the longer term,
although it will sometimes address shorter
term requirements
Importance of Human Resource Planning
 attract and retain the number of people
required with the appropriate skills,
expertise and competencies;
 anticipate the problems of potential
surpluses or deficits of people
 To develop a well-trained and flexible
workforce
 reduces dependence on external recruitment
 Process of Human Resource planning
Step1. Define organization mission:
o defines what the business organization is
o why it exists and who its customers are
o It is the foundation or direction of every
organization decisions
• All jobs in the organization must tide with the
organization mission
Step 2. Establishing corporate goal and
objectives
At this stage senior management set Strategic
goals to establish targets for the organization to
achieve
 CONT…
o Organizational objectives help determine
what organization action is required to
align HR demand with HR supply
Step 3. Corporate assessment
Is a stage company to analyze its goal, its
currents strategy, its external environment, its
strength and weakness and its opportunity and
threat
‘Commonly referred to as SWOT (Strengths-
Weaknesses-Opportunities-Threats) analysis
 CONT…
 We determine what jobs need to be done and

how many and what type of workers will be

require.

 determine what skills are needed:

 to ensure that appropriate personals are

available to meet the requirement set by the

strategic planning process

Step 4 Assessing current human resources
 is the stage of HRP that
 develop a profile of organization current
employees
 Used to determine what skills are currently
available in the organization
 A skills inventory is designed to take stock of
information about current employees’:
 experience
 education
 compensation history, and
 unique abilities.
 Step 5. Determining the Demand for Labor

 identifies the future workforce requirements

needed to maintain the organization’s mission
and goals
 In HR planning, labor demand is determined
separately from supply estimates because it
facilitates a re-examination of embedded
assumptions about the labor force
 Techniques of HR demand forecasting

 Generally managers can use the following techniques to

forecast HR demand:
1. Judgmental Approach
2. Job analysis
3. Work study
4. Statistical Techniques
5. Productivity Measurement Method
1.Judgemental Approach
This approach in turn categorized as: -
A. Management estimation and
B. Expert forecasting
 Management estimation
 top-down approach: TM guesses about what future human
resource needs will be and dictate down to those at the lower
level
 bottom-up approach: lower level managers like supervisors
make initial estimates for their units
 send the proposed manpower needs to the top officials
 participative approach:
 Is combination of above two approaches
It depends on :
 experiences of supervisors and
 the plans formulated by the top management.
 B. Expert forecasts

 In this case the planner gathers information from experts

through different techniques like:
 Brainstorming
 Nominal group technique (NGT)
 Delphi technique
Brainstorming
the experts are given certain problem statements
like
“What will cause organizations staffing needs to
change over the next year?"
 Cont…
In this technique
 group members are allowed to generate different
creative solutions
 No need of limiting members’ ideas &evaluating
merits.
 After each group member proposed any ideas that
come to his /her mind, the group considers the positive
and negative aspects of each proposal.
 Through a process of continual refinement, the best
possible solution (idea) for the problem emerges.
 Nominal group technique
 Contains 5-15 managers /experts with a
problem statement about HR needs.
 Each participant writes down answers
/solutions he/she can imagine
 After all members present their ideas,
 the entire group discusses the ideas to clarify,
evaluate and rank them.
 A secret ballot is used to allow members to
vote independently and
 Finally the idea receiving the most votes is
adopted and implemented as a solution to
the problem.
 Delphi technique

 is used when NGT is impossible because:

 experts cannot meet due to geographic
separation or lack of time
 questionnaires on specific problems are
prepared and send to experts,
 the questionnaires results (responses) are
compiled and shared among group members,
 continue re-circulating the questionnaire
results so that individuals refine their
responses until consensus regarding the
problem is reached.
 B. Job Analysis
 is one method of forecasting the demand of manpower
 The ultimate result of job analysis is both job description
and job specification
 Accurate job description and specifications are intimately
related to the preparation of inventories of executive
talent, which form a basis of manpower planning strategy.
C. Work Study Techniques
 Work-study is as old as industry itself
 Work-study is one of the principal aids by which an
organization can improve its productivity
 Chapter 4: Recruitment, selection and
induction
Definition of recruitment: is the process of
attracting individuals:
 on a timely basis,
 in sufficient numbers &
 with appropriate qualifications and encouraging
them to apply for jobs with an organization
 Involves generating a ‘pool’ of candidates by
reaching the ‘right’ audience suitable to fill the
vacancy.
 CONT…
 Its result is a pool of applicants from which
new employees are selected.
 It ends when the applicants submitted
application
Features/goal of Recruitment
To attract qualified applicants
 To discourage non-qualified applicants
 Factors governing recruitment:

Image of the Organization/Attractiveness

It relates with:
 performance
 Scale of salary
 Presence of fringe benefits
 About career development of the job
holder
Government Influence
• is influenced by the laws provided by the
government
 CONT…
Recruiting Costs:
o high cost ,especially when recruitment is
external.
• function this if they have sufficient resource
Philosophy of the Recruitment:
o Internal Recruitment and External Recruitment.
Diversity through Recruiting Efforts:
o the right of minority and non-discriminatory
action.
 Sources of recruitment:

The two main sources of recruitment are:

– Internal: with in the organization
– External: out side the organization
I. INTERNAL RECRUITING SOURCES

When job vacancies exist:

A. looking for placement within organization
itself
Promoting employees to higher position within
organization or
Promoting low level employees to more
responsible positions
Is also said to be good in fitting human
resource planning system within organization
 B. Job posting
 Announcing present internal vacancies
We can use :
o bulletin boards,
o company publications
o personal letters.
Should follow guidelines:
 should be prominent
 Clear job specification / eligible to apply or
not.
 applicants should be informed about the
decision
C. Contacts and referrals /employee recommendation

 Involves asking present employees to

encourage friends or relatives to apply for
the job openings
 relatively inexpensive and produce quick
responses
 provide the more accurate information
 reduce unrealistic applicant expectation
 results in hiring friends of employees instead
of focusing on job performance
 Advantages of Internal Recruitment
 less expensive to recruit
 Internal candidates are more familiar
 Provides better opportunity to assess abilities
 Improves morale and organizational loyalty
Disadvantages of Internal Recruitment
 Talented candidates from out side groups are not
appointed
 Creates a narrowing thinking and stale ideas
 Creates homogeneous workforce
 Cont…
 infighting b/n rival candidates for promotion
 decrease moral level of those not selected.
 ii. External Sources Of Recruitment:
 External recruitment Sources:
 High Schools and Vocational Schools,
 Colleges and Universities,
 Competitors and other Firms,
 Unemployed, Older Individuals, Self-Employed
workers
 External recruitment methods

Advertising: A way of communicating the

employment needs within the firm to the public
through media such as:
radio
newspaper
television
industry publications
Internet & notice board
 is the most popular method when an organization
wishes to tell the public it has a vacancy
 Cont…
 Employment Agencies: An organization that
helps firms recruits employees and, aids
individuals in their attempt to locate jobs
 two types of the employment agencies i.e.
Public Employment Agencies and Private
Employment Agencies
 Both of these sources provide coordination
between the organizations and applicants
 Executive Search Firms
 sometimes called HEAD HUNTERS
 specialized form of private employment agencies
 place top level executives and experienced
professionals
 organizations use when they seek the most-
qualified executive for a specific position
Internships:
 A special form of recruiting that involves placing
a student in a temporary job.
 Cont…
 There is no obligation on the part of the company
to permanently hire the student
 no obligation on the part of the student to accept
a permanent position with the firm
Professional Associations:
Most professional organizations have:
o newsletters,
o annual meetings and
o trade publications that advertise job openings
 Advantages of External Recruitment
Provides new ideas and new insights
Provides greater diversity
opportunities to get people with up-to-date
knowledge, education and training
Disadvantages of External Recruitment
It is more expensive and time consuming
Decreases present employees to strive for promotion
More chances to commit hiring mistakes
Reduces loyalty of the retained employees
 SELECTION
 is the process of choosing from a group of
applicants
 Is about individuals best suited for position
 process involves making a judgment
 about the fit between the applicant and the job
(by considering knowledge, skills and abilities
& etc. required to perform the job)
 Environmental factors affecting the
selection process
 Legal Considerations:
 Legislation, executive orders, and court decisions have a
major impact on selection process.
 Speed of Decision Making: The time available to make
the selection decision can have a major effect on the
selection process.
 Applicant Pool:
 The number of applicants for a particular job can also
affect the selection process.
 The process can be truly selective only if there are several
qualified applicants for a particular position.
 Type of Organization
 The sector of the economy:—private,
governmental, or not-for profit— can also affect
the selection process.
 Selection Criteria:
Selection of applicant depends upon the following criterions
o Education
o Competencies
o Experience
o Skills and abilities
o Personnel characteristics
 Steps in the selection process
Selection process consists of the ff steps:
1. Initial Screening
2. Application Blank
3. Pre-employment Testing
4. Interview
5. Background Checks
6. Conditional job offer
7. Medical Exam/Drug Tests
8. Final Selection Decision
 Step 1. Initial screening

 is an initial stage of selection process

 is to remove individuals who do not meet the position
requirements.
If initial screening is successful, cost of selection will
be less
Step 2. Application form /review of applications
 specific employment form used to generate specific
information that the company went
 formal record of an individual’s application for
employment
 Cont…
 used to collect verifiable and fairly accurate historical data
from the candidate.
Step 3. Administration of selection tests/pre emplo.test
 Is used measure individual characteristics of tests
 to measure various dimensions of behavior like:
mental abilities
knowledge
physical abilities
personality
interest
temperament
 Step 4. Job Interviews

 goal-oriented conversation (interviewer and

applicant exchange information)
A. Interview Planning:
 The physical location
 Must be pleasant and private
 The interviewer should:
o possess a pleasant personality, empathy
o ability to listen and communicate effectively.
o be familiar with the applicant’s qualifications
 B. Content of The Interview
Occupational experience: is about experience requires
determining the applicant’s skills, abilities, and willingness to
handle responsibility
Academic achievement: In the absence of significant
work experience, a person’s academic background takes on
greater importance
Interpersonal skills
 Ability to work well with other employees
 shows human labor relation skills
Personal qualities: include physical appearance,
speaking ability, vocabulary, poise, adaptability, & etc.
 Organizational fit
 is the degree to job applicant will fit firm’s
culture or value system.
Types of Interviews:
A. The Unstructured (Non directive)
 interviewer encourages the applicant to do
much of the talking
B. The Structured (Directive or Patterned)
Interview
• Consisting of a series of job-related questions
contains four types of questions:
 Situational questions :Pose a hypothetical job
situation to determine what the applicant would do in
that situation
 Job knowledge questions: Probe the applicant’s job-
related knowledge.
 Job-sample simulation questions: applicant may be
actually required to perform a sample task from the
job.
 Worker requirements questions
Seek to know willingness to conform to the requirements of
the job.
C. Behavior Description Interviewing:
 A structured interview that uses questions
 designed to probe the candidate’s past behavior in specific
situations
D. Methods of Interviewing
 One-On-One Interview
o the applicant meets one-on-one with an interviewer
 Group Interview: Several applicants interact in the presence
of one or more company representatives.
 Board Interview
o One candidate is interviewed by several
representatives of the firm.
 Stress Interview: Intentionally creates anxiety to
determine how an applicant will react to stress
on the job.
How to Avoid Common Interviewing Mistakes
• Snap Judgments: where the interviewer jumps
to a conclusion about the candidate during the
first few minutes of the interview
 Negative emphasis
 Receiving negative information about
candidate/Viewing the candidate negatively/
o The best way to avoid this is to keep
references or from other sources
o If possible, have different people do the
reference checks and the interviews
 Not share the information until afterwards
 Poor Knowledge of Job
 When interviewers
o do not have a good understanding of the job
requirements,
o do not know what is needed for success in those
jobs.
 Pressure to Hire: when an interviewer is told
that he or she must hire a certain number of
people within a short time frame
o poor selection decisions may be made.
Step 5. Background Investigations
Check accuracy of application form through:
 former employers and references
 Verification of educn & legal status to work
 Credit history Criminal records
 Knowledge about attendance problems,
 insubordination issues, theft, or others
 can help one avoid hiring someone who is
likely to repeat those behaviors.
 Step 6 Conditional Job Offer

 After obtaining and evaluating information

about the finalists in a job selection process
 the manager must take the most critical step of
all: making the actual hiring decision
 Initially the conditional job letter is offered
that is followed by the physical exam/test
 Step 7. Physical Exam

After decision has been made to extend a job offer

 Checking completion of a physical examination
 permanent job offer is contingent on successfully
passing this examination.
Step 8. Permanent Job Offer
 If physical test/exam proves eligibility of the
candidate as per requirement of the job
 final job offer is made to applicant by the
concerned department or supervisor
 Orientation:
 Is the introduction of new employees to the
organization, work unit, & job
 It can be oral or written communications
 When should it be given?
 During or after the selection process followed by a
formal orientation period once an individual is hired.
 Who does the orientation?
1. Human Resource Department
 initiating & coordinating both the general and job/
department specific orientations
 Cont…
2. New employee’s Immediate Supervisor
 Two basic levels of orientations are there:
A. General Company orientation: issues like :
 Overview of organization: including
 founding, growth, goals, priorities problems
 Traditions(customs), organizational structure
 r/ships of various parts of the organization
 Cont…
Key Policies and Procedures :
 Compensation (pay rates, how pay is received,
advance on payment, loan from credit unions)
 Fringe Benefits:(Insurance, holidays and
vacations, sick leave, maternity, training
opportunities, recreation & etc.)
 Safety and Accident prevention:(health and
first aid clinic, safety precaution, fire
prevention and how to control, etc.)
 Cont…
 Department Functions: Goals and current priorities,
department structure, department’s relationship with
other departments. etc.
 Job Duties and Responsibilities: is about job
description, common problems and ways to
overcome them, where and how to get materials,
overtime needs and requirements etc
 Policies, Procedures, Rules and Regulations: Rules
unique to the department, safety precaution, tour of
the department & facilities
 Chapter FIVE
Training and Development
• Human Resource Development (HRD) is planned,
continuous effort by management to improve
employee competency levels and organizational
performance through training, education, and
development program
• Training is a program designed to improve skills and
knowledge that help employees to effectively
perform their current job. The
• purpose is helping employees to do their present job.
 Training and Development

• Development is a program designed to improve the over all effectiveness of managers for
their present as well as future positions.
• The purpose is to mainly help managers handle future responsibilities.
Difference between Training and Development
Training Development

• Focus on - - present job (task oriented) - future job (growth oriented)

• Targets operational workers - managerial workers

• Period -short term (periodic process) - long term ongoing process

• Result -develop skills and knowledge -develop conceptual, interpersonal,
technical and decision making skills

• Purpose -Remedial effort -develop employees potential

 Training and Development
Major purposes of training are:
 Establish sound relation ship between the worker and his/ her
job
 Upgrade skills and prevent skills obsolescence
 Develop healthy and constructive attitude (Improves
organizational climate)
 Increase productivity and quality of work
 Improve labor-management relations
 Minimize operational error ( wastage, spoilage of materials and
unnecessary repetitions, reduce hazards and accident)
 Enhance employees moral and confidence
 Reduce employees turn over, absenteeism and job
dissatisfaction
 Training and Development
Major purposes of development are to:
 Improve managerial decision making skills
 Stimulate managers use more creative problem
solving approach
 Provide managers with latest information on
theory and practice of management
 Prevent managerial obsolescence
 Give managers the opportunity to discuss with
other people
 Training and Development
 The training process consists of the following steps:
Step 1. Determine Training Needs (Need Assessment)
• Need assessment is refers to a systematic identification of
training and development needs.
• Training need is the gap between skills needed for a job and
the present skill level of employees. It should be properly
determined as follows:
• Training and development need= job performance standard
- actual performance
• If the actual performance is below the
job standards it indicates performance deficiencies
 Training and Development
 The need assessment occur at three stages (levels):
1. Organizational level
 Organizational level need analysis refers to shortcomings
within the organization as a whole.
 Training or development needs at organizational level can
be created by:
 Projected growth and development
 Changes in environment, objectives & structure
 Changes in products and services
 High absenteeism, turnover, reject rate and accidents
 Training and Development
2. Task level (job analysis)
 The duties and responsibilities of the job, together with
the knowledge, skills and attitudes needed to perform
them, are the focus of needs analysis at the task level.
 Training or development needs at task level can be
created by:
 Job redesign
 Task relocation
 Changes in work methods and procedures, and
 Upgrading of job functions.
 Training and Development
3. Individual Level (person analysis)
• This refers to assessing present
deficiencies in specific skills, knowledge
and attitudes on the part of individual
employee.
• Training or development needs at individual
level can be created by:
• Job descriptions and job specifications, and Skill
deficiencies on the job
 Training and Development
• Step 2. Establishing training and development objectives
 Training objectives are desired outcomes that the training is
intended to achieve
 Objectives define the performance standards that the trainee
should be able to exhibit after training
• e.g. after training the secretary is expected to type 80
words per minute
• purpose of establishing objectives are to:
– Evaluate the training and development outcome
– Choose appropriate training methods
 Training and Development
• Step 3.Selecting Instructional Methods and
Medias
• Instructional methods and medias represent the
medium of instruction needed to teach specific
skills, knowledge and influence attitudes.
• Step 4. Select Trainees and Trainers
– Right kind of trainees and effective trainers should be
selected.
• Step5:Develop Budget
– Costing should be done for each training program
 Training and Development
• Step 6: Conduct Training
– The training programme should be delivered to the trainees as per schedule
• Step 6: Conduct Training
– The training programme should be delivered to the trainees as per schedule.
• Criteria for evaluation
• Reaction: how happy is the trainee?
• Learning criteria: did the participant learn what was intended?
• Job behavior: did the learning transferred to job?
• Organizational impact: has the training helped organizational
performance?
• Ultimate value: has the training affected the Ultimate wellbeing of the
organization?
 Training and Development
• Types of Human Resource Training
• Major types of Human Resource Training
programs are:
A)On the Job Training: conducted in the place
where the employee is actually working.
• In this program the employee is placed in to
real work situations and shown how the job is
performed by experienced worker or
supervisor
 Training and Development
• on the job training consists of four steps:
– Orientation (Preparation):the trainees are told about the
job, purpose and
• expected outcome of the training
– Demonstration (presentation): the trainees are given
instruction by telling, showing and explaining about new
knowledge and skills
– Practice: The trainees actually perform the job to
demonstrate their understanding. Errors are corrected.
Practice is continued
– The employee perform the job with out supervision
 Training and Development
B)Off the Job Training: takes place outside the work
situation. The trainees removed from the stresses and
demands of workplace so as to focus on learning
experience.
• The methods used for off-the-job training are:
• Lecture/ conference, Simulation exercises and
Programmed Instruction
C)Vestibule Training: Trainees learn their jobs on the
equipment they will be using on the job. The training is
conducted away from the actual work environment.
• e.g. Language laboratories, computer centers etc..
 Training and Development
Types of Development Program
• The most common type of management development programs are:
1. On-the-job Management Development
• Management development takes place on the job. It is learning by doing in
the context of real work environment.
• The most common methods are:
A. Job Rotation : it involves shifting managers from position to position. It is
• generally horizontal or lateral job transfer.
 Planned Rotation: Managers spend two or three months on a job and are
then moved on.
 Situational Rotation: Shifting is done to meet work schedules or to make
the job challenging to the manager.
 Line and staff Rotation: managers can be shifted between line and staff
positions.
 Training and Development
A)Coaching It is actively guiding managers by their
immediate supervisors. The coach gives the guidance
through direction, advice, criticism and suggestions.
C)Development positions: organizations assigns less
experienced administrators to work temporarily as an
assistant to more experienced administrator.
2)Off the Job management Development: in this program
managers move from their work situation to other
training institutions for concentrated programs. Some of
the methods used are: Seminar, work shops, conference
and other training programs conducted by training
institutions
 Training and Development
– Career is a sequence of positions, jobs or occupations that one
person engages in during his or her working life.
– Career goals: the future position that one want to reach
– Career planning; is the process by which one select career
goals , the path and the means of achieving the goals.
– Career management is the process through which
organizations select , assess and develop employees skills to
provide a pool of qualified people to meet future needs.
 Career development: is the personnel activity which helps
individuals plan their future career with the organization in order
to help the organization achieve is goals.
 Training and Development
• N.B. Career development should not relay solely
on individual effort, but
• involve the assistance of managers and human
resource department
• Values of Career Development
 Aligns strategy and internal staffing
requirements
 Develops promotable employees
 Reduce turn over
 Training and Development
 Tap employees potential
 Further personal growth
 Satisfies employee needs
• Based on staffing need, organization can facilitate the
career planning process and help answer employees
questions about career progress within the
organization.
 CHAPTER SIX
PERFORMANCE APPRAISAL
• Performance appraisal is a formal system of
periodic, review and evaluation of an
individual’s job performance as well as giving
feedback to an employee.
 Performance Appraisal
Uses of Performance Appraisal
• Performance improvement: PA provide feedback
necessary for improving performance and motivating
employees.
• Compensation adjustments: help to determine who get
what
• Placement decisions: Managers use information from PA to
make decisions on promotions, transfer and demotion
• Training and development needs: PA indicate a training
and development needs
• Guide career planning and development decisions
 Uses of Performance Appraisal
• Indicate deficiencies in staffing
process: showstrengths and weakness in
performing staffing functions
• Informational inaccuracies: indicate errors in
collecting information on job analysis and planning
• Job-design errors: Poor performance may be a
symptom of poor job designs
• Feedback to human resource: indicates how
well the human resource function is performing
 The Performance Appraisal Process

Step 1:Establishing Performance Standards

– performance expectations and standards of performance are established
• based on the job descriptions.
• Step 2: Communicating Standards to Employees
– Communicating performance standards to employees
will enhance their
• motivation and commitment towards their jobs.
• Step 3: Measuring the Actual Performance
– The supervisor then observes and evaluate the
work performance and
• behavior of an employee
• Step 4: Comparing the Actual Performance with Standard
 The Performance Appraisal Process

• Step 5: Discussing Appraisal with Employees

• After the evaluation, the rater must describe work-related
progress in a manner that is mutually understandable
• Step 6: Initiating Corrective Action
– Alternatives for corrective action includes:
• Taking no action: if problems are insignificant
• Correcting the deviation: if problems are significant
• Revising the standards: if problems are due to inappropriate
performance standards
 Responsibility for PA

1. Immediate Supervisor
2. Peer Evaluation
3. Self Appraisal
4. Subordinate Evaluation
5. Group Appraisal
6. Combinations
 Performance Appraisal Methods

1. Rating Scales: rates employees according to pre-defined

factors
• This method requires the evaluator to record his/her
subjective assessment of the employee's on a scale.
 Performance Appraisal Methods

2. Critical Incident technique: Keeps a log

(record) of a person’s effective and
• ineffective job behavior
• At the end of the valuation period, the
evaluator used the log along with other data to
assess employee job performance
3. Essay method: requires the rater to write a
brief narrative description of
• employee's performance and characteristics.
 Performance Appraisal Methods
• Ranking: rater is asked to assess employees in a rank order of overall
• performance relative to others doing the same job.
• Work Standards: compares each employee's performance to a
predetermined standard or expected level of output
• Performance Appraisal Methods
• Checklist Appraisal
• A checklist appraisal is a record of performance, not an evaluation by the
supervisor.
• It contains a series of questions about the employee’s
• performance.
– The supervisor checks boxes to answer the questions yes or
no.
– The human resources department has a key for scoring the
items resulting in a rating of the employee’s performance.
 CHAPTER SEVEN
COMPENSATION
• Compensation-is the reward employees receive in exchange for their
performance. It is concerned with wages and salaries, pay raises, and
similar monetary and non monetary
Objectives of Compensation
 To attract qualified employees required
 To retain and motivate the existing workforce
 Control cost ( to avoid over payment or underpayment)
 Comply with legal regulations ( to consider legal challenges imposed
 by the government)
 Ensure equity :establish fair and equitable rewards to the employees
 Reward desired behavior
 Facilitate understanding: people in the orga. can easily understand the
 compensation management system.
 Further administrative efficiency
 Consequence of Pay Dissatisfaction

– If employees are dissatisfied with the type of compensation

they receive, the following results would be exhibited;
 Low job performance
 Absenteeism and turnover
 Looking for better paying jobs
 Strike and increased grievance
 Job dissatisfaction
 Factors affecting compensation

– Government
– Cost of Living
– Comparable wage rates
– Market Conditions
– Ability to Pay
 Job Evaluation

• Compensation within an organization is determined by

comparing
• one job to other job.
• This comparison is made possible with job evaluation.
• Job evaluation is that part of a compensation system
in which an organization determines the relative value
of one job in relation to another.
• The major reason for job evaluation is to maintain
internal pay equity . Moreover, job evaluation is used
to:
 Types of Compensation

1. Financial compensation: any form of financial

rewards that an employee receives out of
his /her services. It further be classified in to:
A)Direct compensation: which is paid to
employees in the form of wages, salaries,
bonuses, and commission in exchange for
their performance.
• This type of compensations are directly
related to performance of employees
 B)Indirect compensation
• Indirect compensation (benefits) includes all
financial rewards that are not included in direct
compensation.
• This type of compensation is not directly related
to performance. Major categories of benefits:
• Insurance Benefits
• Security Benefits
• Time-off Benefits
• Employee Services
 Types of Compensation

2. Non financial compensation: includes any form of

rewards employees receive from:
– The job content: such as the need for recognition,
responsibility, personal growth and the like or
– The job environment consists of comfortable working
conditions, competent supervision, pleasant work
companions and other related physical and social needs of
employees.
• Methods of Payment
• Time-based payment
• Performance-based payment method (Incentive Plans)
• Combination of time-based and output-based methods
 Chapter-8
• Promotion, Demotion, Transfer and Separation.
• Promotion
– Promotion occur when a current employee is moved from one
job to other that is higher in pay, responsibility, status and
organizational level (vertical movement). In other words:
• If the employee’s performance is high he/she will get
promotion.
• It is un Upward movement of employees
• Employees get salary increment
• Includes more responsibility
• Promote to higher position
• More power
 Demotion

• Demotion down ward movement of an employee to

a position with low responsibility, organizational
level, status and perhaps lower in pay. Demotion
may occur due to: discipline, poor performance and
inappropriate behavior. In other words:
– It is downward movement
– Decrease in pay, responsibility and power
– Punishment for less performance or inappropriate behavior
 Transfer

» Transfer reassignments of employees from one job to

other with similar status, pay and responsibility
(horizontal movement). In other words:
• It is a horizontal movement
• Same salary
• Same position
 Separation

• There are two types of separation

• Permanent separation
– Termination of contract of employment
– Retirement
– Disciplinary termination
• Temporary separation
– Annual leave
– Maternity leave
– Sick leave e.t.c