HRM Combined PDF

Lecture 01 站长素材 SC.CHINAZ.COM Human Resource Management Class Rules Be on time. Attend all lecture sessions. No talking during lectures and do not shout in the corridor during the interval. Mobile phones must remain switched off during class. Aim to submit your assignments...

Lecture 01 站长素材 SC.CHINAZ.COM Human Resource Management Class Rules Be on time. Attend all lecture sessions. No talking during lectures and do not shout in the corridor during the interval. Mobile phones must remain switched off during class. Aim to submit your assignments before the deadline. Any type of plagiarism is not allowed. Ask questions. Make use of office hours. Do your homework. Study regularly.  Course Outline An overview of HRM Resourcing Performance Appraisal Training and Development Reward Management Grievance Handling Discipline Management Labour Management Relations Assessment Criteria Class Tests (spot tests) - 30% Group Assignment - 20% Final Examination - 50% TOTAL 100% Recommended textbooks: Armstrong M, 2020, A Handbook of Human Resource Practice, 15th edition, Kogan Page, London. Dessler G, 2018, Human Resource Management, 16th edition, Prentice- Hall Inc., New Jersey. Opatha, H.D.N.P. (2012). “Human Resource Management”, 3rd Edition, ISBN: 978-955-95885-9-7. LEARNING OUTCOMES At the end of the lecture, students should be able to; ❑ Describe the evolvement of HRM. ❑ Understand the basic concepts of Human Resource Management (HRM). ❑ Define HRM. ❑ Provide an overview of functions of HRM. ❑ Understand the significance of human resource. ❑ Understand the disadvantages of poor management of human resource. ❑ Identify the global HR challenges. WHAT IS HRM? ❑ What is Management? ❑ What are the resources available in an enterprise? ❑ What is Human Resource? Employees as a Resource Is being developed over the time and experience Not depreciated, but, being a continuously developing asset Has the ability of creativity and innovation Makes decisions in respect of all other resources Something valuable, really hard to quantify the exact value Something to be developed Something to be compensated Something to be carefully managed Something to be carefully maintained and retained Something, really needed to sustain the competitiveness Other resources make things possible but only human resources make things happen.  EVOLUTION OF HRM Personnel Management Vs Human Resource Management Human Capital Management ▪ Effectively managing the human factor, ▪ It is a prime assets which requires those who are capable of learning, investment and necessary for changing, innovating, and being creative. organizational growth and survival WHY DOES HRM IMPORTANT TO ALL MANAGERS ❑ Managing people is not something occurs in a back room called HR Department. ❑ Managing people is every manager’s business. ❑ Successful organizations combine the experience of line managers with the expertise of HR specialists to develop and utilize the talents of employees. ❑ Addressing HR issues is not exclusive responsibility of HR department. ❑ HR manager work side by side with line managers to address people related issues of the organization. WHY DOES HRM IMPORTANT TO ALL MANAGERS ❑ The losses due to hire the wrong person for the job ❑ Experience high turn over ❑ People not doing their best ❑ Waste time with useless interviews ❑ Legal responsibility Effective management of people is possible, but difficult. Why? ❖ Every person is unique ❖ Complex ❖ Unpredictable ❖ Difficult to motivate ❖ Unending needs Definitions of HRM ❑ The human resource is defined as the total knowledge, skills, creative abilities, talents and aptitudes of an organization’s workforce, as well as the values, attitudes and beliefs of the individual involved (Professor Magginson). ❑ Policies and practices needed to carryout the people, or personnel, aspects of a management position, including recruiting, training, rewarding and appraising (Dessler, Griffith, Lloyed Walker, Williams). ❑ Personnel management is the part of management concerned with the people at work and their relations within the enterprise. It applies not only to industry commerce but to all fields of employment (CIPD – UK). Efficient and effective HRM examines what utilization of human resource can or should be to achieve goals of an done to make people organization HRM is the more productive and effective Simple satisfied. Definition management of people at work If the human resource is mismanaged or neglected, organizations would not be able to achieve their goals as expected. An organization? Efficiency? A collection of people works A productivity metric together for achievement of Describes how fast a person/ common goals. product can do something Optimum use of HR by minimizing wastage Comparison of number of Effectiveness? employees and cost A quality metric Utilize the right people in the Describes how good a person/ product right number with the right cost considering what he or the product is expected at the right job to be. Employees who demonstrate effectiveness in the workplace help produce high-quality results. HRM -hard or soft? Hard: Human RESOURCE Management Treats employees simply as a resource of the business (like machinery & buildings). Little empowerment or delegation. Soft: HUMAN Resource Management Treats employees as the most important resource in the business and a source of competitive advantage. Employees are treated as individuals and their needs are planned accordingly.  SCOPE OF HRM; Three major subfields Micro HRM Strategic HRM International (MHRM) (SHRM) HRM (IHRM) Covers the sub Concerns with HRM functions of HR in companies policy and practices The overall HR operating across strategies adopted by national boundaries. business units and How HR sub companies and tries functions as selection to measure their and remuneration Smaller group impact on might be adopted to of sub functions performances concerns with Largest group international managing of sub functions assignments. individual and concerns with small groups work ✓Recruitment organization ✓Selection and employee ✓Induction voice systems ✓T&D ✓Management ✓Performance union relations management ✓Remuneration  Performance A Model of Evaluation Human Resource Management Pay Management Objectives Training & 1. Procurement Strategic Generic Goal Development of right people Goals Job Job in the fight way. To generate 2. Retention of 1. Improvement and retain in Analysis Design the most of Employee appropriate Employee appropriate Productivity. and contented movements employees. 2. Employee employee 3. Employee Development force which Human Hiring & Commitment 3. Enhancement gives the Management of of Quality of Resources 4. Employee maximum Planning Recruitment Selection Induction Incentives Work Life. Motivation individual 4. Ensuring contribution to 5. Control of Legal organizational Employment Welfare Compliance. success. Costs Administration Health & Safety Administration Discipline Management Grievance Handling Labour Relations Source: Opatha, 2002, performance Evaluation of Human Resource, Management Key Objectives of HR Department: What do they do?? ❖ Primary Objective ❖ Process Related Objectives Primary Objectives of Process Relating Objectives HRM Department: of HRM Department: The key concerns of HR Department ❑ Motivational Objective ❑ Staffing Objectives ❑ Change Management Objective ❑ Performance Objective ❑ Culture Building Objective ❑ Development Objective ❑ Administrative Objective ❑ Maintenance Objective Objectives of HRM Recognize the role of HRM in Ensure that the organization becomes bringing about organizational socially responsible to the needs and effectiveness. challenges of the society. Make sure that HRM is not a Minimizing the negative impact of such standalone department, but rather a demands upon the organization. means to assist the organization with its primary objectives Maintain the department’s contribution at a level appropriate to the organization’s needs. Human resources are to be adjusted to suit the organization’s demands. Assist employees in achieving their personal goals, at least as far as these goals enhance the individual’s contribution to the organization. Otherwise employee performance and satisfaction may decline giving rise to employee turnover. HRM Objectives and Functions Consequences of poor Human Resource Management Employees will frequently struggle with the organization Develop interests away from the job Allow skilled employees to deteriorate Poor motivation Hire the wrong person for the job Experience high turnover People not doing their best Waste of time with useless interviews Legal actions Competitive Challenges and HRM Challenge 01: Going global Challenge 02: Embracing new technology Challenge 03: Managing change Challenge 04: Managing talent, or human capital Challenge 05: Responding to the market Challenge 06: Containing costs CAN YOU ❑ Describe the evolvement of HRM. ❑ Understand the basic concepts of Human Resource Management (HRM). ❑ Define HRM. ❑ Provide an overview of functions of HRM. ❑ Understand the significance of human resource. ❑ Understand the disadvantages of poor management of human resource. ❑ Identify the global HR challenges. Thank you 站长站素材 SC.chinaz.COM Job Design & Job Analysis Lecture 02 Learning Outcomes Define job design. Explain the job design and its direct impact. Describe the techniques of job design. Define job analysis. Explain the importance of job analysis. Explain the job analysis process. 2 Concept of Job Design Job design can be defined as the function of arranging tasks, duties and responsibilities into an organizational unit of work for the purpose of accomplishing the primary goals and objectives of the organization. Jobs are basic building blocks of the organization. A job composes of three main components; tasks, duties and responsibilities. A task is composed of motions. It is a distinct identifiable work activity A duty is composed of a number of tasks. It is a larger work segment. Job Tasks Duty University lecturer Asking questions from the students Delivering lectures Giving answers for the questions raised by the students Preparing lecture slides Concept of Job Design Job design specifies the contents, methods and relationships of jobs in order to satisfy work requirements for productivity, efficiency and quality, meet the personal needs of the job holder and thus increase levels of employee engagement. The process of job design is based on an analysis of the way in which work needs to be organized and what work therefore needs to be done – the tasks that have to be carried out if the purpose of the organization or an organizational unit is to be achieved. They concentrate on the work to be done, not the worker. Job Design and its direct impact Employee efficiency Employee effectiveness Job Design Contents tools and techniques Employee productivity surroundings of the work relationship Employee satisfaction of one job to other jobs. Employee T&D Employee health Techniques of Job Design Scientific technique Job enlargement Job enrichment Job rotation Professional technique Group technique Ergonomics Perceptual-motor technique 6 Elements of Job Design Efficiency elements Behavioural elements Elements which lead to minimize Elements which lead to employee time, effort and cost which are satisfaction. needed to perform a particular They focus on employee job motivation and development Division of labour Skill variety Standardization Task identity Specialization Task significance Autonomy Feedback 7 Alternative work schedules Flex time (General flex time/ Flex tour/ Gliding time) - Time recording is important; Manual system Time clock Time meter Computer log Compressed workweeks Part time employment Telecommuting Shift work 8 Concept of Job Analysis It is a systematic investigation of jobs and job holder characteristics in order to create a collection of information that can be used to perform various HRM functions. It involves collecting, organizing and recording information with regard to job available within the organization. It deals with studying and understanding the each job and the ideal person needed to perform that job successfully. Job analysis focuses on the job as well the ideal job holder. 9 Concept of Job Analysis Job Analysis is the process of determining and recording all the pertinent information about a specific job, including the tasks involved, the knowledge and skill set required to perform the job, the responsibilities attached to the job and the abilities required to perform the job successfully. Job Analysis differentiates one job from another. It is also referred as JOB REVIEW or JOB CLASSIFICATION. Two end products of Job Analysis are JOB DESCRIPTION and JOB SPECIFICATION 10 Importance and the uses of Job Analysis ❑ Recruitment and ❑ Rates of pay selection ❑ Eliminating risks ❑ Appraisal ❑ Re-organization of the ❑ Training programmes organizational structure Process of Job Analysis 1. Acquire a general familiarity with the organization 2. Identify and select job/s to be analyzed 3. Develop JA checklist 4. Collect data 5. Apply JA data 6. Evaluate JA effort Methods of data collected Observation Interview Jury of experts Questionnaire Employee log Participation Combination Type of Information Collected Activities and behaviors Machines, tools, equipment and work aids Performance standards Job context Human requirements Job Descriptions A written statement of what the job holder does, how it is done, under what conditions, and why. It should accurately portray job content, environment and conditions of employment. Job Descriptions ❑Sections of a typical job description Job identification Job summary Responsibilities and duties Authority of incumbent Standards of performance Working conditions Job Specifications Statement indicating the minimum acceptable qualifications incumbents must possess to successfully perform the essential elements of a job. What human traits and experience are required to do the job well? Job Specifications ❑Sections of a typical job specification Qualifications Prior experience Special training Personality factors Physical characteristics Other attributes/qualities Possible behavioural problems at Job Analysis Employee fear Resistance to change Overemphasis on current incumbent So now CAN YOU, Define job design. Explain the job design and its direct impact. Describe the techniques of job design. Define job analysis. Explain the importance of job analysis. Explain the job analysis process. Human Resource Planning Lecture 03  Describe HR planning Explain the importance of HR planning Identify and describe the main objectives of HR planning Identify and describe HR planning issues Identify and describe types of planning Describe the HR planning process Explain demand and supply for human resources Explain shortage and excess of HR  Performance Human Resource Management Evaluation Pay Management Objectives Training & 1. Procurement Strategic Generic Goal Development of right people Goals Job Job in the fight way. To generate 2. Retention of 1. Improvement and retain in Analysis Design the most of Employee appropriate Employee appropriate Productivity. and contented movements employees. 2. Employee employee 3. Employee Development force which Human Hiring & Commitment 3. Enhancement gives the Management of of Quality of Resources 4. Employee maximum Planning Recruitment Selection Induction Incentives Work Life. Motivation individual 4. Ensuring contribution to 5. Control of Legal organizational Employment Welfare Compliance. success. Costs Administration Health & Safety Administration Discipline Management Grievance Handling Labour Relations Source: Opatha, 2002, performance Evaluation of Human Resource, Management Human Resources Planning HRP is the “process of determining future employee needs and deciding steps or strategies to achieve those needs for the purpose of accomplishing organization goals and objectives”. HRP is the “process of assessing the organization’s human resource needs in the light of organizational goals and making plans to ensure that a competent, stable workforce is employed”. Human Resources Planning HRP is a strategy for the acquisition, utilization, improvement and retention of the human resources required by the enterprise in pursuit of its objectives. It is generally concerned with matching resources to business needs in the longer term, although it will sometimes address shorter term requirements. Human Resources Planning It addresses human resource needs both in quantitative and qualitative terms, which means answering two basic questions: First, how many people, and Second what sort of people? Human resource planning also looks at broader issues relating to the ways in which people are employed and developed in order to improve organizational effectiveness. It can therefore play an important part in strategic human resource management. Human Resource Planning It is arguable that forecasting staff and skill requirements has become more difficult in recent times because of the increasing uncertainty and rate of change in the business environment. However, it has also become more necessary, because the risks of ‘getting it wrong’ are correspondingly greater. HRP is a form of risk management. It involves realistically appraising the present and anticipating the future in order to get the right people into the right jobs at the right time and managing employee behaviour, organization culture and systems in order to maximize the human resource in response to anticipated opportunities and threats. The significance of HRP To determine future employee needs (employee demand) To utilize human resources more efficiently and effectively To control employee cost (possible to know in advance employee surplus or shortage) To develop highly competent managerial and professional employees To formulate and implement strategic plans Types of Planning Aggregate Planning Anticipating the needs for groups of employees in specific, usually lower level jobs and the general skills employees will need to ensure sustained high performance. Succession Planning Focuses on ensuring that key individual management positions in the organization remain filled with individuals who provide the best fit for these critical positions. HRP Process 1. Forecast future demand for HR 2. Estimate HR supply 3. Compare forecast demand with estimated supply 4. Develop strategies to be taken 5. Assess HRP effort Feedback Demand Forecasting Demand forecasting is the process of estimating the future numbers of people required and the likely skills and competences they will need.  Causes of demand for human resources 1.Demand for the product 2.Strategic Plan of the Organization 3.Production method 4.Retirements 5.Resignations 6.Deaths 7.Leaves of absence 8.Termination 9.External factors such as economic, social and political forces Forecasting Demand for Employees Quantitative Methods Forecasting Demand Qualitative Methods Quantitative Approach: Trend Analysis This involves studying of a firm’s past employment needs over a period of years to predict future needs. The purpose of this method is to identify trends that might continue into the future. E.g. Years No. of workers 2006 100 2007 97 2008 100 2009 105 2010 103 2011 101 Quantitative Approach: Ratio Analysis Making forecasts based on the ratio between some causal factors (e.g. sales volume) and the number of employees required (e.g. number of sales people). E.g. If 1 sales person traditionally generates Rs.500,000 in sales, then for the company to produce an estimated sales of Rs.3 million next year, it should require six sales persons next year. Qualitative Approaches to Demand Forecasting Management Forecasts The opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organization’s future employment needs. Delphi Technique An attempt to decrease the subjectivity of forecasts by soliciting and summarizing the judgments of a preselected group of individuals. The final forecast represents a composite group judgment. The Delphi Technique Leader identifies judgment issues and develops questionnaire. Prospective participants are identified and asked to cooperate. Leaders send questionnaire to willing participants, who record their judgments and recommendations and return the questionnaire. Leaders compiles summaries and reproduces participants’ responses. Leader sends the compiled list of judgment to all participants. Participants comment on each other’s ideas and propose a final judgment. Leader looks for consensus Leader accepts consensus judgment as group’s choice. The Sri Lankan Government wanted to forecast personnel needs for class II ( Grade II) of the Sri Lankan Administration Service for the next three years. Round Expert A Expert B Expert C Expert D Expert E First 33 45 50 40 60 Second 38 42 40 50 55 Third 40 41 42 42 45 Final Estimation 210/5= 42 Forecasting supply of human resources Supply forecasting measures the number of people likely to be available from within and outside the organization, having allowed for attrition (labour wastage and retirements), absenteeism, internal movements and promotions, and changes in hours and other conditions of work. Supply of inside candidates (internal supply) Supply of external candidates (external supply) Internal Labor Supply Qualifications Inventories Personnel Replacement Charts Position Replacement Charts Computerized Information Systems Internal Labour Supply Qualifications Inventories Manual or computerized records listing employee’s education, career and development interests, languages, special skills, etc, to be used in selecting inside candidates for promotion. Personnel Replacement Charts Are company records showing present performance and promotability of inside candidates for the most important positions.  Position Replacement Charts A chart prepared for each position in a company to show possible replacement candidates and their qualifications. Computerized Information Systems This involves computerizing employee information using various software packages. Generally these information are linked with the firm’s other HR systems such as automated applicant tracking systems. An Executive Replacement Chart External Labor Supply Factors Influencing the External Labor Supply: Demographic changes in the population National and regional economics Education level of the workforce Demand for specific employee skills Population mobility Governmental policies Sources of Information About External Labor Markets Department of Labor publications State and local planning and development agencies Chambers of Commerce Industry and trade group publications State and local employment agencies Strategies in surplus conditions of HR Freeze hiring Attrition (voluntary departure) Early retirement on voluntary basis Reduction of reward expenditure Lay off Termination Strategies in shortage conditions of HR ▪ Have current employees work overtime ▪ Subcontract work to other firms ▪ Provide opportunities for learners for a period of time ▪ Hire part-time employees ▪ Hire casual employees ▪ Hire temporary employees ▪ Hire permanent full-time employees HRP Considerations Balancing supply and demand Elements of The HR Plan Acquisition of personnel Effective Utilization redeployment methods improvement training to prevent obsolescence Development and Improvement broad-based training and development performance management systems Retention proper remuneration long-term career planning healthy employee relations good working environment Requisites for Successful HRP HRP must be seen as equally vital as business planning. Top-management support. Periodic review and revision of the forecasting techniques and the forecasts. Without long range planning concentration becomes focussed on short-term needs resulting in “crisis management” reactions. An excellent and up-to-date HRIS. Active involvement of line managers and co-ordination between line managers and HR function. Labour Turnover The analysis of the numbers of people leaving the organization (labour turnover or wastage). It provides data for use in supply forecasting, so that calculations can be made on the number of people lost who may have to be replaced. The analysis of the numbers of leavers and the reasons why they leave provides information that will indicate whether any action is required to improve retention rates. It can prompt further investigations to establish underlying causes and identify remedies. Reasons for Labour Turnover An analysis of the reasons for leaving derived from exit interviews will provide useful information on which to base retention plans. Exit interviews aim to establish why people are leaving, not to persuade them to stay. ❑ More pay; ❑ Better prospects (career move); ❑ More security; ❑ More opportunity to develop skills; ❑ Better working conditions; ❑ Poor relationships with manager/team leader; ❑ Poor relationship with colleagues; ❑ Bullying or harassment; ❑ Personal – pregnancy, illness, moving away from area etc. The cost of labour turnover Leaving costs – payroll costs and personnel administration of leaver; Direct cost of recruiting replacements (advertising, interviewing, testing etc); Opportunity cost of time spent by HR and line managers in recruitment; Direct cost of introducing replacements (induction course, cost of induction manuals etc); Opportunity cost of time spent by HR and managers in introducing new starters; Direct cost of training replacements in the necessary skills; Opportunity cost of time spent by line managers and other staff in providing training; Loss of the input from those leaving before they are replaced in terms of contribution, output, sales, customer satisfaction and support etc; Loss arising from reduced input from new starters until they are fully trained So now CAN YOU, Describe HR planning Explain the importance of HR planning Identify and describe the main objectives of HR planning Identify and describe HR planning issues Identify and describe types of planning Describe the HR planning process Explain demand and supply for human resources Explain shortage and excess of HR Additional Reading Chapter 29 - Human Resource Planning ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE Chapter 06 - Human resource planning , Essentials of Human Resource Management Recruitment, Selection, Induction and Placement Lecture 04 Learning Outcomes Define recruitment Describe the recruitment process Describe internal and external recruitment Define selection Identify and describing objectives of selection Describe significance of selection Describe selection process, types of interviews, types of selection tests and methods of selection Define induction Identify and describe aims of induction Describe the importance of induction, methods of induction and how to improve the effectiveness of induction programs Define of placement and describe methods of placement  Recruitment Recruitment is the process of finding and attracting suitably qualified people to apply for employment. It is about searching for and obtaining, potential job candidates in sufficient numbers and quality and at the right cost, for the organization to select the most appropriate people to fill its jobs. (Kramar et al 1996) The process of seeking and attracting a pool of people from which qualified candidates for job vacancies can be chosen. The process of searching for prospective candidates and entices them to apply for the jobs in the organization.  Recruitment Recruitment is the process whereby an organization communicates opportunities and information to the labour market in order to attract the quantity and quality of potential employees in requires to fulfil its human resource plan. Recruitment is the part of the human resourcing process concerned with finding the applicants: it is a positive action by management, going into the labour market, communicating opportunities and information and encouraging applications from suitable candidates. Recruitment  Purposes What are the purposes of Recruitment; Increase the size of the applicant pool at minimum cost Identify & prepare potential job applicants Increase success rate of selection process by reducing over/ under qualified applicants Decrease early turnover of new hires Increase individual/ organizational effectiveness Recruitment Recruitment and related HRM functions HR Planning Determining needed type and number of employees Selection Determining the most Job Analysis Recruitment appropriate person to fill the Providing JD and JS vacancy Reward Management Deciding competitive salaries/ wages, incentives and benefits used to attract job applicants A Simple Model of the Recruitment Process 1. Identify job vacancy 2. Ascertain job requirements 3. Consider factors affecting 4. Prepare job application form recruitment 5. Select the method(s) of 6. Implementation recruitment 7. Evaluation of recruitment effort How to Recruit Internal Recruitment External Recruitment Simple word of mouth Advertising Job Postings and bidding Employment Agencies Newsletters - Govt. Employment exchange Succession Planning - Private agencies Eg: Promotion - Head hunters Skills inventories Campus Intranet Referrals Internet / e- recruitment Past employees Recruitment Recruitment Evaluation Measuring past recruitment can help to predict: Timeliness of recruitment Budget needed Methods that yield greatest number of best quality candidates Assess performance of recruiters Recruitment Selection  Selection Selection is the process of making the choice of the most appropriate person from the pool of applicants recruited to fill the relevant job vacancy. Determining applicants who have the highest capability to produce the desired job performance occurs in selection. It involves the use of one or more methods to assess candidates in order to make a decision as to their suitability to perform duties and responsibilities of the job successfully. There is a difference between “the most appropriate person” and “the most qualified person”. The most appropriate perform from a pool of job may be the most qualified person or not. The selection systematically attempts to choose the person who suits best with the job/ person specification relevant to the job vacancy. Steps in Selection Process Screening of applications Tests Interviews Reference Checks Medical Examination Selection Tests Intelligence of cognitive ability tests Aptitude tests Personality tests Situational tests Tests of Motor and Physical Abilities Selection Tests Achievement tests Interest tests Polygraph tests Graphology Selection Types of Interviews Unstructured/ Non-directive Structures/ Patterned Panel Stress Interview Situational Interview In depth Interview Selection  Importance of selection To get the right person for the job vacancy. To establish or maintain an image as a good employer. To perform the selection process as cost-effective as possible. Consequences of poor selection Expected job performance does not occur Loss of appropriate expected contribution Cost of grievance handling Additional cost in procuring a new right employee Recruitment Cost of Poor Selection Direct Costs Re-advertising costs Panel time and effort HR staff time and effort Hidden Costs Reduced productivity Lost productivity whilst position vacant Time taken for new hire to become productive Selection Hiring  Hiring Hiring is the process of appointing the candidates selected to the post/ job which is vacant. Appointment of a certain person to a particular post involves formally asking that person to do the post or assigning him/her officially to it. It involves placing the selected employees on the right positions of the jobs. Employee hiring process is perceived as consisting of five steps;  Preparation of appointment letter  Notification  Follow up  Appointment from the waiting list  Entering in the contract of employment Recruitment Induction  Induction A planned introduction of employees to their jobs, co-workers and the organization. Familiarization process is concerned with introducing an employee/worker to the new work place as soon as possible so that s/he needs not to discomfort about it. Proper induction training has to be professionally organized and delivered to new employees. Thus, it is the HR Manager’s responsibility to ensure that the induction training is properly planned and carried out in systematic manner to cover all the ground areas in the shortest effective time.  Induction benefits Low tardiness, Low waste and Building confidence absenteeism, accidents turnover Creating feeling of Reducing the start- belonging up costs Familiarization with Speeding up the job quickly Induction socialization Increasing loyalty Reducing real shock Starting to Reducing culture Favourable attitude contribute soon shock Choices in Designing Induction Programs Formal or Informal Individual or Collective Orientation and Induction Placement  Placement The assignment or allocation of people to jobs in the organization The overall purpose of placement is to fit in the new employees to the job demands. Placement Two ways Placement can happen Match 01 Looking for an individual for a specific job Match 02 Looking for a job to match an individual Placement Now Can you?? Define recruitment Describe the recruitment process Describe internal and external recruitment Define selection Identify and describing objectives of selection Describe significance of selection Describe selection process, types of interviews, types of selection tests and methods of selection Define induction Identify and describe aims of induction Describe the importance of induction, methods of induction and how to improve the effectiveness of induction programs Define of placement and describe methods of placement Performance Management and Performance Appraisal Lecture 05   Find what performance is and the levels of performance  Explain Performance Appraisal  Identify and describe objectives of performance appraisal and methods of Performance Appraisal Performance Management and Appraisal   Level of achievement or accomplishment.  Organizations have to keep improving the performances  P = ƒ (A * M * E)  P = Performance  A = Ability (Skills, Knowledge & Attitudes)  M = Motivation  E = Environment (working) Performance Management and Appraisal Levels of Performance Performance Management Management Process Organizational 1. Performance Performance Planning (Set targets) 2. Performance Departmental Execution (Progress Performance Review) 3. Performance Individual Appraisal Performance (Assessment between SP and AP) 4. Performance Review (Give a Feedback)  Having talented people is not enough. Successful organizations are adept at engaging their workforce to achieve goals.  Performance management is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims.  According to Flippo,, "performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job." A systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. Performance appraisal programs are most helpful tools an organization can use to maintain and enhance productivity and facilitate progress towards strategic goals. A systematic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competency requirements.  Help employees and supervisors do their jobs better  Improve communications and trust  Provide people with clear direction  Identify performance problems early  Reinforce good performance  Make process fairer; people are more likely to accept Performance Appraisal  Establish objectives of PE  Formulate Policies  Establish criteria and standards of PE  Select method(s) of PE  Design evaluation form and procedure  Train evaluators  Appraise & discuss PE results  Make decisions and store  Review and renewal  Objectives are integral part of any PE program Objectives are favorable targets to be achieved in the future. Some objectives are;  To ascertain the current level of job performance of each employee  To ascertain strengths and weaknesses  To ascertain potential performance and development needs  To provide a fair and objective rationale in order to reward employees A well defined policies have to be decided.  Whose performance should be evaluated?  When should PE be done?  How often should PE be done?  Who should do PE? Specific criteria and standards to be used in judging employee performance have to be identified and selected and established. Criteria – factors that are used to evaluate job performance of employees for a certain period of time. (Objective criteria, subjective criteria). Standards – Rating scales used for evaluations. A method of evaluating employee job performance has to be selected When selecting a method of PE nature of job, purpose of evaluation and cost involved need to be considered.  Behavior Appraisals  Assesses how workers perform their jobs—the actual actions and behaviors that exhibit on the job.  Focuses on what a worker does right and wrong and provides good feedback for employees to change their behaviors  Results appraisals  Managers appraise performance by the results or the actual outcomes of work behaviors  Trait Appraisals  Assessing subordinates on personal characteristics that are relevant to job performance. Attitude, initiative, work ethic, leadership ability, a sense of ethics, loyalty, adaptability  Advantages Disadvantages Trait 1. Inexpensive to develop 1. Have high potential for rating errors Methods 2. Use meaningful dimensions 2. Are not useful for employee counselling 3. Are easy to use 3. Are not useful allocating rewards 4. Are not useful for promoting decisions Behavioral 1. Use specific performance dimensions 1. Can be time consuming to develop/ use Methods 2. Are acceptable to employees and 2. Can be costly to develop superiors 3. Have some potential for rating error 3. Are useful for providing feedback 4. Are fair for rewards and promotion decisions Results 1. Have less subjectivity bias 1. Are time consuming to develop/ use Methods 2. Are acceptable to employees and 2. May encourage a short-term superiors perspective 3. Link individual performance to 3. May use contaminated criteria organizational performance 4. May use deficient criteria 4. Encourage mutual goal setting 5. Are good for reward and promotion decisions Trait Methods Behavioural Methods Result Methods Graphical Rating Scale Critical Incident Method Productivity Measures (logbook indicating positive and negative behavior) Mixed Standard Scales Behavioral Checklist Management by (9 statements) Method (list of statements) Objectives Forced Choice Method Behaviorally Anchored Balance Scorecard (forcefully ask to choose Rating Scale (combination between given statements) of narrative technique and quantitative techniques) Essay Method Behavior Observation Scale ( identify key tasks & evaluate how frequently they exhibit the required behavior) SUPERIOR CUSTOMERS TEAM PEERS SELF SUBORDINATES PE form is a vital tool for PE. Two approaches are available  General approach A common form and procedure for all employees  Specific approach Design a separate form and a procedure for different types of employees Training of evaluators refers to systematic endeavor to improve efficiency and effectiveness of evaluators in PE by increasing their competencies regarding evaluation of human performance on the job. Evaluator Training Methods  Lectures  Case study methods  Role playing  Programmed instructions  Special courses of PE Performance Errors  Central tendency (the central tendency error is the failure to recognize either very good or very poor performers)  Leniency or strictness error (some supervisors see most subordinates as not measuring up to their high standards, whereas other supervisors see most subordinates as deserving of a high rating)  Recency error (evaluators focus on an employee’s most recent behavior in the evaluation process)  Contrast error (error in which the evaluation of a target person in a group is affected by the level of performance of others in the group)  Similar to me error (employees seen as similar to the raters themselves)  Once the evaluation of performance of an employee is done results of the evaluation should be discussed with the employee by the evaluators  This is generally done through a PE interview/ Performance Review Interview Questions  Find what performance is and the levels of performance  Explain Performance Appraisal  Identify and describe objectives of performance appraisal and methods of Performance Appraisal 25 Employee Training and Development Lecture 06 Learning Outcomes Compare and contrast Employee Training and Employee Development Explain the importance of Employee Training and Employee Development Identify and describe the cost and benefits of training Identify and describe the purposes of training Identify and describe training cycle Identify training methods Training and Development The formal process of changing employee behavior and motivation in the way that will enhance employee job performance and then organizational overall performance. The HRM function that formally and systematically provides new learning to increase employees’ capabilities so as to increase their current job performances and future job performance as well. Help to achieve employee goals and organizational goals. T&D is an attempt to increase job performance of the employee at present or future compared with the past by increasing the needed job-related capabilities. Will increase employees’ job-related abilities. T&D helps to; Employee Training Vs Development Training Development Focus is on the current job Focus in on future and more challenging jobs Usually, limited to developing Not limited only to job related job related, knowledge, skills, knowledge, skills, attitudes attitudes and technology and technology. Also develops the person as a whole Temporary in nature More permanent in nature Usually short term Usually long term Enable the employee to Enables the employee to perform better in the current perform better in future jobs job Responsibility for training Every manager in the organization responsible training the relevant subordinates Training Centre Training and Development Manager/HR Development Manager Costs of Training  Fees for internal trainers  Pays and incentives for trainers  Material needed for training (i.e. books, manual, articles, writing paper etc.)  Cost of training tools  Transportation cost  Opportunity cost (loss of production due to training)  Establishment cost (i.e. electricity, water, rental etc.)  Expenditure for meals and refreshments  External consultant fees Benefits of Training  Increase in production  Decrease of defects and wastage  Reduce supervision  Changing attitudes favorably  Decrease of employment turnover  Decrease of lethargy  Decrease of absenteeism  New skills that lead to increase better performance Why is T&D Necessary? Employee performance deficiency is the degree of negative gap between the standard performance of the employee and actual performance Need for T&D arises if performance deficiencies of the employees in the organization are due to lack of capabilities or abilities Why is T&D Necessary? Before After Why is T&D Necessary? After performance evaluation, all the employees can be categorized into five groups; excellent, good, average, poor and very poor. Excellent employees - developed for jobs, of greatest responsibilities Good employees - developed further so as to become excellent. Average employees - be transformed to become at least good Poor and very poor employees - be trained so that they become at least average Purposes of the T&D (point of organization)  To increase the quality of the products  To increase the quantity of the production  To increase the productivity  To reduce wastage  To reduce number of accidents and resultant cost  To lower the cost of maintenance of equipment and tools  To reduce degree of supervision  To improve employee motivation  To increase employee morale  To prevent employees from obsolescence Purposes of the T&D (point of employees)  New knowledge and skills  Higher confidence  Higher possibility of getting promoted  Higher rewards  Adjustment  More job security  Increased motivation and satisfaction Methods of Training On-the-job Training Job rotation Programmed instructions Case study method Skill building Behavior Modeling Methods of Training Critical incident method Lecture method Coaching Understudy Assignment HOME WORK; Identify the advantages and disadvantages of each of these training methods. Systematic Training Process Identify training needs Prioritize training needs Establishing training objectives Determine training evaluation criteria Make other-related training decisions Implementation Learning Proper training results in occurring of learning which is the process of acquiring knowledge, skills and attitudes so as to create a relatively permanent change in learner’s behavior. Learning is for changing. To demonstrate a change, an individual’s capabilities must change. To change capabilities, the individual must acquire new knowledge, skills and attitudes. There should be a significant difference between the learner’s previous state (before learning something) and the learner’s post state (after learning something). Learning Curves Negatively accelerated learning curve Learning occurs very quickly but as the individual masters the learning material the rate of learning goes up in a diminishing manner. Positive accelerated learning curve Learning starts slowly but goes up in a rapidly increasing manner when the learning material is absorbed. Skills acquisition learning curve The learning curve indicates a state where learning comes to stop for a time. After the learner learns some material initially, the rate of learning levels off before he/she learns the rest. Questions  Compare and contrast Employee Training and Employee Development  Explain the importance of Employee Training and Employee Development  Identify and describe the cost and benefits of training  Identify and describe the purposes of training  Identify and describe training cycle  Criticize training methods 21 Reward Management Lecture 07  Learning Outcome  Define pay and reward management  Identify and describe objectives of reward management  Explain the significance of pay management and factors affecting wages  Explain pay for performance, flexible benefit plans and other types of reward plans  Find how to design effective reward systems  Identify and describe fringe benefits  Define incentives and identify and describe objectives of incentives, types of incentives, major categories of incentives and how to develop successful incentive systems  What is Pay?  Pay is the basic reward an employee receives: usually a wage or salary.  Is a payment made to an employee in return for his/ her contribution to the organization. Differences between wage and salary Wage Salary As per payment base Wage is paid according to the number of Salary is paid according to the time spent units produced or sold. for working. As per types of jobs Wages are generally given to production Salaries are paid to clerical, supervisory employees and sales employees. and managerial employees. As per time of payment Wage is paid daily or hourly. Salary is paid weekly or monthly. As per nature of works Wages are paid to works which are Salaries are paid to works which are measurable clearly and quantitatively. difficult to measure quantitatively (they are more subjective). As per accounting base Wages are considered as expenses in Salaries are considered as expenses in order to calculate production cost (in the order to calculate net profit (as an production account) or gross profit (in administrative item in the profit and loss the sales account). account) [email protected]  Reward Management  The formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization.  It deals with the design, implementation and maintenance of reward practices that are geared to the improvement of organizational, team and individual performance. Objectives of Reward Management  To attract suitable qualified person to the organization.  To motivate employees.  To retain most appropriate employee with in the organization.  To comply with legal requirements.  To ensure equity.  To control employee cost. Significance of PM  Employer considers it as an expenditure.  Employee views as an income.  PM reduces the conflicts. (being fair and reasonable- Reduces grievances, stress, absenteeism and turnover) Factors affecting wages/salaries  Government legal legislations  Trade unions  Cost of living  Demand and supply  Productivity  Financial ability to pay  Competitive pay Management of Rewards Financial Rewards Non-Financial Rewards also called as monitory rewards are also called non monitory rewards are considered are the most traditional relate to social and psychological needs and the most common form of rewards. of the employee Any reward which is in the form of cash Ex: or wealth are based on the assumption Recognition that money is the most important Promotions motivating factor Enhanced responsibilities and challenges Ex: Status and ranking Target incentives Training Commission on sales Appreciation and praise Bonus Freedom for decision making Overtime payments Differentiated piece rate Management of Incentives  An incentive is a special reward that drives an employee to perform beyond the normal level of performances.  It is an inducement that encourages the employee to perform in better way. Incentives are rewards designed to encourage and reimburse employees for efforts beyond normal performance expectations.  Incentives are paid in addition to wages and salaries and they depend on productivity, sales, profit or cost reduction efforts.  Incentives are given to encourage employees to improve job performances.  Incentives are paid for performances.  Incentives link reward cost and organizational performance.  Employees are rewarded according to their job performance through incentives.  Thus, incentives are linked to individual, group or team and/ or overall organizational performances.  Ultimate purpose of incentives is to improve performance.  Incentives are alternatively called as variable pay and contingent pay. VARIABLE PAY Tying pay to some measure of individual, group, or organizational performance.  Types of Incentive Plans INDIVIDUAL GROUP ENTERPRISE Piecework Team Plan Profit sharing Standard hour Gain sharing Stock options Bonuses Merit pay Sales incentives Conditions Under Which Individual-Based Plans Are Most Likely to Succeed  When the contributions of individual employees can be accurately isolated.  When the job demands autonomy.  When cooperation is less critical to successful performance or when competition is to be encouraged. Conditions Under Which Team-Based Plans Are Most Likely to Succeed  When work tasks are so intertwined that it is difficult to single out who did what.  When the firm’s structure and systems facilitate the implementation of team-based incentives.  When the objective is to promote entrepreneurship in self-managed work groups. Conditions Favoring Gain sharing Plans  Gain sharing is most appropriate in situations where the demand for the firm’s product or service is relatively stable.  If a firm has multiple plants with varying levels of efficiency, the plan must take this variance into account so that efficient plants are not penalized and inefficient plants rewarded. Conditions Favoring Profit sharing Plans  Most attractive to firms facing highly cyclical ups and downs in the demand for their product.  When used in combination with other incentives, corporate wide programs can promote greater commitment to the organization by creating common goals and a sense of partnership among managers and workers. Pay for Performance: The Challenges  The “Do Only What You Get Paid For” Syndrome  Negative Effects on the Spirit of Cooperation  Difficulties in Measuring Performance  The Credibility Gap  Job Dissatisfaction and Stress  Potential Reduction of Intrinsic Drives Meeting the Challenges of Pay for Performance Systems  Link Pay and Performance Appropriately  Build Employee Trust  Increase Employee Involvement  Use Motivation and Nonfinancial Incentives Designing Effective Reward Systems  Reward system must meet an individual’s needs.  Rewards should compare favorably with other organizations.  Distribution of rewards must be perceived to be equitable.  Reward system must recognize different needs. Employee Welfare Management  Employee welfare can be defined as providing facilities and comforts to employees of an organization so that they will be able to lead a better level of living.  Level of living means degree of well-being being enjoyed by employees by fulfilling various needs including basic needs.  The term welfare refers to the totality of certain facilities and comforts given by the employer to the employees in addition to wages and incentives.  Welfare management refers to all the activities involved in the development, implementation and ongoing maintenances of a sound welfare system. Employee Welfare Management FRINGE BENEFITS  FEATURES OF FRINGE BENEFITS  An employee enjoys them in addition to the salary he/she receives.  They are not given for specific jobs performed but to make jobs more attractive.  They are not linked to productivity so do not reward performance in any way, criteria used is other than performance.  They have an indirect impact on workers’ efficiency. If impact is direct, it is not a fringe benefit. Types of Fringe Benefits  Pay for time not worked  Employee security  Safety and health  Welfare and recreation  Old age and retirement Flexible Benefits Plans (Cafeteria Plans) Benefit plans that enable individual employees to choose the benefits that are best suited to their particular needs  Advantages  more appreciation of benefits offered  better match between benefits and employee preference  Disadvantages  increased design and administrative costs Now Can You;  Define pay and reward management  Identify and describe objectives of reward management  Explain the significance of pay management and factors affecting wages  Explain pay for performance, flexible benefit plans and other types of reward plans  Find how to design effective reward systems  Identify and describe fringe benefits  Define incentives and identify and describe objectives of incentives, types of incentives, major categories of incentives and how to develop successful incentive systems Grievance Handling Lecture 8 Learning Outcome Describe employee grievance handling Explain the importance of employee handling grievances and what should organizations do about a grievance? Identify and describing types of grievances and causes of grievances Identify and describe objectives of grievance handling, grievance handling procedure and grievance handling interviews Find methods of preventing grievances Grievance Handling Grievance Handling A grievance that is informal or formal, real or imaginary may be a severe source of conflict. Hidden dissatisfaction grows and soon arouses an emotional state that may be completely out of proportion to the original complaint. Frustration among employees can lead to a variety of counterproductive behaviors Grievance Handling Grievance Handling Causes for Grievances Causes relating to the job Causes relating to the working conditions Causes relating to the Personal Management Decisions such as Policies, Procedures and Practices Causes relating to Alleged Violations Causes relating to Inappropriate Personal Behaviour Grievance Handling Methods of Handling Grievances Open-door Policy Quasi Method Committee Approach Counseling Ombudsman Grievance Handling Grievance Settlement Procedure GSP should specify how and to whom employees can raise a grievance; spell out the stages through which a grievance should go and spell out the rights of representations on behalf of the grievant employee. This is the method mostly recommended for an organization that intends to settle grievances genuinely. Grievance Handling Principles for efficient and effective grievance handling Treat all grievances as important Obtain all relevant information Discuss Proper listening Build Trust Accept Mistakes Principles for efficient and effective grievance handling Utilize the authority Give the decision promptly Do a Follow-Up Seek Expert Advice of Necessary Maintain Records for Future Reference. Get a Proper Training on Grievance Handling Grievance Handling The end. Disciplinary Management Lecture 9  Learning Outcomes At the end of the session, students should be able to understand; What is discipline? Types of discipline. Why discipline is necessary What is misconduct? Disciplinary procedure.  What is discipline Discipline is defined as conditioning of future conducted by the application of either rewards or penalties. i.e. behaving in accordance with accepted norms, rules and regulations. Positive motivational activities as praise, appreciation, participation, rewards, incentives and promotions This approach include Negative motivational techniques as punishments and penalties Both activities seek to condition employee conduct in order to achieve good discipline in the organization.  Thus, discipline is the action taken by the management;  to maintain a reasonable standard of conduct among employees  Handle material economically without loss or waste  Maintain harmonious relations between employees  Ensure prosperity for the enterprise and its employees  Create a good name for its products and services Disciplinary action is a process that invokes a penalty against an employee who fails to meet established standards. Effective disciplinary action focuses on the employee’s wrongful behavior rather than on the employee as a person.  Types of discipline 1. Preventive/ Positive/ Constructive Discipline (Pro-Active measure) Employees are encouraged to maintain ‘Self-Discipline’. Management is responsible to create the atmosphere for the employees to maintain self discipline by  Informing/ education employees on rules, regulations and standards  Educating the employees on objectives expected from those rules  Regulations in instructions rather than in orders. 2. Corrective/ Punitive Discipline (Reactive measure) Employees who have violated discipline and others are prevented from doing future violation through punishment to the employees.  Warning  Instant reactions  Punishment relevant to the gravity of the offence  The corrective discipline is in two forms 1. Positive approach Punishment is focused on the violation and is not personal. The employee will not be rejected and only the violation will be rejected.  Sandwich model Understandable behavior is explained/ criticized to the employee in between two good behavior.  Progressive discipline – Reformation approach Offender will not be given a harsh punishment at first but attempt will be made to reform the offender by a warning or small punishment. If the offence is repeated, the employee will be given harsher punishments. 2. Negative approach The punishment is forced on the employee and is personal. It is presumed that no employee should make mistakes The punishment is based on revenge  Principles of discipline Principles of Natural Justice - Listen to the both parties Fairness to all parties – employer, employee, complainant, accused employee Parity - Punishment should be equal to the offence Bona-fide - Disciplinary action should be initiated in good faith Mala-fide - Disciplinary action should not be initiated with ulterior (hidden) motives Requirement to avoid delays - Delay in justice in denial of justice Equity - The law is applied over all persons without discrimination  What is misconduct Misconduct is an act in disciplinary Going against the accepted norms, behavior rules are violation of discipline. Misconduct is an act which is inconsistent with the fulfillment of expressed or implied conditions of contract of employment.  Expressed terms: terms that are clearly expressed and stated  Implied terms: terms that are not clearly stated but what employees are supposed to know  Minor and Major Misconduct Minor misconduct: Acts of indiscipline which are not serious nature but which cumulatively or particular situations could in fact be grievance or major offences. Eg: absence from place of work without permission Major misconduct: Acts of indiscipline which are of such a serious nature the punishment for which should there be severe even for an only offence. Ex: abuse of power or authority for personal gain or other end Insubordination (refusal to obey orders) Disciplinary Procedure So now CAN YOU, Understand; What is discipline? Types of discipline. Why discipline is necessary What is misconduct? Disciplinary procedure. Labour Management Relations Lesson 10 Learning Outcomes Understanding basics of LMR Identify the objectives of significance LMR Understand the basics of labour law  Labour Management Relations Perceived degree of how well labour unions and managers in an organization feel and behave towards each other Trade Unions: A trade union is a continuous association of wage earners for the purpose of maintaining or improving the conditions of their working lives. Managers: involves all top, middle and first line managers in the organization. Labour Management Relations  LMR includes; Building & maintaining sound relations with trade union/s Bargaining collectively between trade union & management with regard to wages, salaries, incentives, welfare facilities, working facilities, working times, leave and other working conditions of employment so that a collective agreement is reached. Interpretation & administration of collective agreements during the relevant periods. Prevention of industrial conflicts and their settlement Encouraging worker’s participation in management Labour Management Relations Basic Labour Law Labour Law The employment relationship in Sri Lanka is based on the Employer-Employee relationship which over the years has gained protection under the law. The Common Law concept of the contract based on a master and servant relationship under the Roman Dutch Law, which was later influenced by English Law concepts. Basic labour Law Shop and Office Employee’s Act (No. 19 of 1954) The regulations set out in these statues are the minimum conditions that employers should provide for their employees and the employers are free to grant better conditions at their discretion. Shop: any premises in-which any retail or wholesale business is carried on including residential hotels, restaurants, hairdressing saloons, photo studios and laundries. Office: any office maintained for business, clerical department of a factory, hotel, cinema and an office maintained in any other place including trade unions Basic labour Law Maternity Benefits Ordinance (No. 32 of 1939) Maternity is regarded as a social obligation. Maternity benefits are provided under the Shop and Office Act and the Maternity Benefit Ordinance. An ordinance to make provision for the payment of maternity benefits to women workers and for other matters incidental to the employment of such women before and after their confinement. Basic labour Law Employees Provided Fund Act (No. 15 of 1958) An act to establish a provident fund for the benefit of certain classes of employees and provide for matters connected therewith or incidental thereto. It ensures the retiring benefits to employed persons by means of contributory provident fund. Employee – 8% Employer -12% Basic labour Law Employees Trust Fund Act (No. 46 of 1980) An act to provide for the establishment of a fund called the employees’ trust fund and to provide for matters connected therewith or incidental thereto. No contribution from the employee. Employer Contribution- The current rate is 3% Basic labour Law Some other related Acts; Wages Board Ordinance (No. 27 of 1941) Payment of Gratuity (No. 12 of 1983) Budgetary Relief Allowances of workers Act (No. 36 of 2005) Medical Wants (Amendment) Act (No. 53 of 1993 ) Trade Union Ordinance, Chapter 174 (No. 14 of 1935) Basic labour Law The end.