HRM (Midterms Reviewer) PDF

**HRM (Midterms Reviewer)** **CHAPTER 1** HUMAN RESOURCE - set of people who make up the workforce of an organization, business sector, industry or economy. HUMAN RESOURCE MANAGEMENT - encompasses the task and processes involved in managing and retaining employees STRATEGIC HUMAN RESOURCE MANAGE...

**HRM (Midterms Reviewer)** **CHAPTER 1** HUMAN RESOURCE - set of people who make up the workforce of an organization, business sector, industry or economy. HUMAN RESOURCE MANAGEMENT - encompasses the task and processes involved in managing and retaining employees STRATEGIC HUMAN RESOURCE MANAGEMENT - process of managing people in a way that optimizes the business's goals and objectives. BENEFITS OF HRM - **Improved alignment with organizational goals** - HR efforts are directed towards achieving the strategic goals - **Enhanced recruitment and retention** - focuses on employee development and engagement - **Increased employee productivity** - places strong emphasis on training and development programs - **Strategic workforce planning** - a proactive approach that the organization has the right people with the right skills at the right time - **Adaptability in dynamic environment** - organizations must be attentive and adaptable to stay competitive - **Cost efficiency** - allocating resources more efficiently and reducing administrative overhead. - **Enhanced decision making** - data driven decision making is a key aspect of SHRM C-LEVEL SUITE - the chief leadership team or highest level management such as: - Chief executive officer - Chief human resource officer - Chief financial officer Influences of HR in terms of : - Profitability - Funding - Perception - Balance - Value **CHAPTER 2** HR'S ROLE IN CHANGE 1. Change leader/owner - full responsibility for the planning and implementation 2. Change educator - bringing specialist knowledge and expertise to help clients understand 3. Change advisor - working with clients through the process of designing and implementing change 4. Change participant - being part of change that affects personally. THE ARCHITECTURE OF CHANGE 1. Relevance - understanding the reasons behind and the business case for change 2. Readiness - understanding what in the organization's leadership thinking, its culture and its history of change 3. Robustness - designing strength into the nuts and bolts of change; involves understanding the changes making to the system 4. Responsiveness - acknowledging and dealing with the human impact of change KEY SKILL FOR HR IN CHANGE 1. Recognizing when change is happening 2. Influence 3. Diagnosis 4. Planning HR AND EFFECTIVE CHANGE MANAGEMENT 1. Overcoming resistance - Clearly and consistently communicate about the change - Help employees better understand the need for the change - Ensure change management - Provide strong support 2. Engaging employees - Developing a team approach - Assigning and clarifying roles and responsibilities - Include resistance leaders in the change - Understand and take into account the different motivational factors for each employee 3. Implementing change in phases - Prepare for change - Manage the change - Reinforce the change 4. Communicate change - Pre and post surveys - Engage resistors in one-on-one sessions - Be clear, consistent and explicit - Use both formal and informal communication - Offer opportunities - Gather employees to explore worst-case scenarios HR'S ROLE IN INNOVATION - Refers to a company coming up with a new product or service that did not exist prior and successfully implements their new idea. HR CONTRIBUTES TO INNOVATION AGENDA BY: 1. Do nothing - HR does not have a role to play in innovation 2. Minimalist - drive on simplicity to eliminate employee policies and work patterns that operates as constraint to innovations 3. Moderate - targeting and enhancing specific HR practices with high leverage modernovation 4. Proactive - repositioned to - Support - Advance leadership development and succession - Talent management - Organizational effectiveness IMPROVE WORKPLACE CREATIVITY AND INNOVATION THROUGH HR 1. Reward innovation via more engaging work and/or autonomy 2. Track innovation talent at both the undergraduate and/or graduate level 3. Put in place a formalized or structured idea/innovation review process 4. Provide internal training in creativity and innovation practices 5. Put in place discrete budgets to fund innovation projects external to the enterprise 6. Have a formal program to find and promote creative/innovative programs, products or ideas 7. The individual bonus and/por salary increases to innovation 8. Include innovation as a major competency in leadership development plans 9. Define and promote organizational values related to innovation 10. Use technology **CHAPTER 3** HR PLANNING - consist of analyzing and identifying the need for and availability of human resources required by an organization to meet its objectives. HR PLANNING PROCESS STEP 1: SCANNING THE EXTERNAL ENVIRONMENT 1. Government Influences - major element affecting the labor supply is the government via legislation (labor law, social security legislation, tax law, equal employment opportunity law) 2. Economic conditions - factors such as interest rates, inflation and economic growth help determine the availability of employee 3. Geographic and competitive concerns - Other employees in the area - Employee resistance to geographic relocation - Direct competitors and international competition STEP 2: INTERNAL ANALYSIS OF JOBS AND PEOPLE 1. Auditing Jobs - a comprehensive analysis of all current jobs that will need to be done in the future 2. Auditing skills - making a detailed audit of current employees and their skills 3. Creating an employee skills inventory - a compilation of data on the skills and characteristics of employees including: a. Education and training b. Mobility and geographic preferences c. Specific aptitudes, abilities and interests d. Areas of interest and internal promotion ladders e. Anticipated retirement 4\. Drawing aggregate workforce profiles STEP 3: FORECASTING - Uses information from the past and present to identify expected future conditions FORECASTING DEMAND - the main emphasis to date has been on forecasting organizational for human resources JUDGEMENTAL APPROACH 1. Estimates - can be either top down or bottom up 2. Rules of thumb - relies on general guidelines applied to a specific situation 3. The delphi technique - input from a group of experts is sought by administering them separate questionnaires to be filled out anonymously 4. The nominal (group technique )- requires people to meet face to face. MATHEMATICAL AND STATISTICAL TECHNIQUES 1. Trend analysis - a study of firm's past employment needs over a period of years to predict future needs 2. The Scatter plot - a graphical method used to help identify the relationship between two variables. 3. Statistical regression analysis - makes a statistical comparison of past relationships among various factors 4. Simulation models - representatives of real situations in abstract form; may include available economic models 5. Productivity ratio - calculate the average of units produced per employee; can then be applied to sales forecasts to determine the number of employees needed. 6. Staffing ratio - used to estimate indirect labor FORECASTING SUPPLY 1. EXTERNAL SUPPLY a. Net migration in and out of area b. Individuals entering/leaving the workforce c. individuals graduating from schools and universities d. Changing workforce composition and patterns e. Economic forecast for the next few years f. Technological development and shifts g. Actions of competitors h. Government regulations and pressures 2\. INTERNAL SUPPLY - influenced by training and development programmes, transfer and promotion policies, and retirement policies-among other factors STEP 4: ESTABLISHING OBJECTIVES STEP 5: DESIGNING AND IMPLEMENTING ACTION PLANS: MAKING WORKING ADJUSTMENTS - Downsizing - reducing the size of an organizational workforce; need to meet foreign competition and cut offs - Attrition and hiring freeze - through attrition, individuals who quit,die or retire are not replaced - Early retirement/ buyouts - means of encouraging more senior workers to leave the organization early - Layoffs - employees are put on unpaid leaves of absence - Outplacements - a group of services to displace employees to give them support and assistance STEP 6: CONTROLLING AND EVALUATING HR PROGRAMS EVALUATION - is an important process for determining the effectiveness of HR plans Criteria for evaluating HR planning a. Actual staffing levels against established staffing requirements b. Productivity levels against established goals c. Actua personnel flow rates against desired rates d. Programs implemented against actions plans e. Program results against expected outcomes f. Labor and program costs against budgets HR PLANNING AND STRATEGIC ORGANIZATIONAL PLANNING 1. Assuring adequate staff levels 2. Matching current needs 3. Building an ethical business culture 4. Finding team players 5. Identifying employees ready for advancement **CHAPTER 4** HRIMS - also known as human resource information management system; a centralized hub for HR information streamlining operations and enabling data-driven decision making NEEDS OF HRIMS 1. Identify manpower requirements 2. Identifying resources 3. Compliance 4. Meeting training needs TYPES OF HRIMS STATISTICAL HRIMS 1. Information systems supporting workforce planning 2. Information systems supporting labor negotiations 3. Specialized human resource information systems TACTICAL HRIS Tactical IMS provide managers with support for decisions that emphasize the allocation of resources 1. Job analysis and design information system 2. Recruiting information systems 3. Compensation and benefits information system 4. Employee training and development system OPERATIONAL HRIS Operational HRMS provide the manager with the data to support routine and repetitive human resource decisions. 1. Employee information systems 2. Position control systems 3. Applicant selection and placement information system 4. Performance management information system 5. Government reporting and compliance information system STRATEGIC HR PLANNING AND HRIS 1. Total rewards - all components of the overall compensation model including salary and benefits 2. Workforce planning - keep tracks of critical employee such as demographic information and job titles 3. Training and development 4. Risk management - minimize risks and potential liabilities. A HRIMS can positively impact the company's bottom line through: 1. Increased productivity 2. Standardized processes 3. Better compliance 4. Direct cost savings EMPLOYEE PERFORMANCE AND HRIMS 1. Optimal and goal setting 2. Performance tracking 3. Foster feedback 4. Ties actions to consequences 5. Collect feedback from peers 6. Performance reviews **CHAPTER 5** Human Capital - the skill, talent, productivity that employees bring to a company. According to THEODORE SCHULTZ, it refers to capital produced by investing in knowledge TWO KINDS OF HUMAN CAPITAL 1. SPECIFIC HUMAN CAPITAL - refers to knowledge and skills that few find useful and are willing to pay for. 2. GENERAL HUMAN CAPITAL - refers to knowledge and skills that many employees find useful such as knowing accounting EMPLOYMENT - essentially the purchase and sale of human capital. INTELLECTUAL HUMAN CAPITAL - refers to all resources that determine the value of an organization, and the competitiveness of an enterprise; - It is the combination of cognitive knowledge and intuitive/experience related knowledge. TALENT MANAGEMENT - an organization\'s commitment to recruit, retain and develop the most talented and superior employees available in the job market ACTIVITIES AND WORK PROCESSES OF TALENT MANAGEMENT 1. Develop clear job descriptions 2. Select appropriate employees 3. Negotiate requirements 4. Provide effective employee onboarding 5. Provide on going coaching 6. Conduct quarterly performance development planning 7. Design effective compensation and recognition systems 8. Provide promotional and career development opportunities 9. Hold exit interviews EMPLOYER OF CHOICE - Ability to attract and retain top talent through a desirable company culture, leadership style and employee engagement. - WORKPLACE CULTURE - plays a crucial role in creating environment where employees feel valued, appreciated and motivated to do their best work 8 VALUES OF AN EMPLOYER OF CHOICE 1. Flexible deployment 2. Customer focus 3. Performance focus 4. Project based work 5. Human spirit and work 6. Commitment 7. Learning and development 8. Open information ATTRACTION AND RETENTION STRATEGIES - Are formulated based on the wants and needs of valued and high performing employees. REMUNERATION AND/OR FINANCIAL REWARD - is the most important factor influencing a prospective employee's decision to accept an offer of employment WHAT ATTRACTS EMPLOYEES TO WORK AT CERTAIN PLACES? 1. Great pay 2. The job itself 3. Creative benefits and rewards 4. Fun and safe environment 5. Cooperative and helpful colleagues 6. The organizations excellent reputation 7. Understanding managers EMPLOYEE RETENTION - the organizations take action to retain good employees using strategies and approaches. THE STRATEGIES AND APPROACHES TO COMPILE AN EFFECTIVE RETENTION PLAN 1. Innovative compensation and benefits package 2. Effective rewards and recognition 3. Career development and opportunities 4. An employee needs 5. Flexible but strict requirements 6. Defined role of corporate culture REWARD STRATEGIES - Determines the direction in which reward management innovations and developments should go to support the business strategy THE EFFECTIVE REWARD STRATEGY - Align employee reward strategies with business strategies - Focus on rewards that matter to employees - Prioritize effective program delivery SUCCESSION PLANNING - A process for identifying and developing internal people with the potential to fill key business leadership positions in the company. FIVE STRATEGIES FOR EFFECTIVE SUCCESSION PLANNING 1. Measure for the three cs of fitness 2. Implement tools for development 3. Involve talent in the planning 4. Cast a wider net in a bigger ocean 5. Focus on the future BASIC STEPS THAT CAN BE ADAPTED TO MEET THE NEEDS OF GIVEN BUSINESS OR OWNER 1. Consider the various constituents 2. Identify the main characteristics a successor should process 3. Determine how to find those most likely to fit the established criteria 4. Ensure a rigorous and inclusive selection process 5. Make a decision 6. Communicate the decision companywide 7. Ensure periodics review of the plan's components and ultimate succession decision 8. Address ownership succession 9. Provide for emergencies TALENT AUDITS - a systematic management and/or leadership review, which aims to measure, align and develop talent against current and future business needs. **CHAPTER 6** Competency Based Management - approach to HRM that examines all human resource management activities against competencies DIFFERENT TYPES OF COMPETENCIES 1. BEHAVIORAL COMPETENCIES - behavioral expectations; type of behavior required to deliver results; (soft skills) 2. TECHNICAL COMPETENCIES - functional competencies; job-specific competencies that drive proven high-performance, quality results for a given position. COMPETENCIES DEALING WITH PEOPLE 1. Establishing focus 2. Providing motivational support 3. Fostering teamwork 4. Empowering others 5. Managing change \\ 6. Developing others 7. Managing performance 8. Attention to communication 9. Oral communication 10. Written communication 11. Persuasive communication 12. Interpersonal awareness 13. Influencing others 14. Building collaborative relationships 15. Customer orientation COMPETENCIES DEALING WITH BUSINESS 1. Diagnostic information gathering 2. Analytical thinking 3. Forward thinking 4. Conceptual thinking 5. Strategic thinking 6. Technical expertise 7. Initiative 8. entrepreneurial orientation 9. Fostering innovation 10. Results orientation 11. Thoroughness 12. Decisiveness\\ SELF MANAGEMENT COMPETENCIES 1. Self confidence 2. Stress management 3. Personal credibility 4. Flexibility DEVELOPING A COMPETENCY FRAMEWORK 1. Involve the people doing the wor \\k 2. Communicate 3. Use relevant competencies 4. Create a competency framework team 5. Collect information BUILDING THE FRAMEWORK \\ 1. Group the statements 2. Create subgroups 3. Refine subgroups 4. Identify and name the competencies IMPLEMENTING THE FRAMEWORK 1. Link to business objective s 2. Reward the competencies 3. Provide coaching and training 4. Keep it simple 5. Communicate APPLICATIONS OF COMPETENCY FRAMEWORK 1. In job descriptions 2. In recruitment, assessment and selection 3. In employee performance management 4. In training and development 5. In career and workforce planning - Organizational structure - Recruitment strategies - Training budgets and development plans - Job assignments and individual performance plans 6. In compensation **CHAPTER 7** - JOB - is an activity, often regular and often performed in exchanged for payment - ROLE - set of connected behaviors,rights, obligations, beliefs and norms as conceptualized by people in a social situation. - JOB ANALYSIS - process used to collect information about the duties, responsibilities, necessary skills, outcomes and work environment of a particular job. 3 TYPES OF ROLES 1. Expected role - is what other people expect from a person 2. Perceived role - is how individual thinks he should behave to fulfill the expected role 3. Enacted role - or the actual role is the way the person actually behaves in an organization - ROLE ANALYSIS - designed to determine what behaviors are needed to carry out a particular role successfully. - SKILLS ANALYSIS - often represented as a two-dimensional chart. The chart identifies the major responsibilities of a job and breaks down each major responsibility into its job skills or tasks TWO TYPES OF SKILLS WHICH EMPLOYERS SEEK: 1. PROFESSIONAL OR TECHNICAL SKILLS - specific skills required by a person's career field, acquired through study and career-related work experience 2. EMPLOYABILITY SKILLS - transferable skills which are common to all work roles and workplaces, acquired through study, and career-related work experience, but also through a range of work and other life experiences such as extra-curricular activities and travel SEVERAL WAYS OF IMPROVING ONES SKILLS SUCH AS : - Study program - make the most of opportunities within one\'s studies to develop employability skills - Work experience - internships and other activities such as volunteering and part time work - Targeted skills training - either formally through concurrent accredited certificates and diplomas or through short courses and professional development activities - COMPETENCY ANALYSIS - analysis of competencies of a given company; a powerful tool used to gauge the knowledge, skills and process capabilities required for a company to be able to offer its products or services. - JOB DESIGN - a work arrangement aimed at reducing or overcoming job dissatisfaction and employee alienation from repetitive and mechanical tasks. - Organizations try to raise productivity labels by offering non-monetary rewards such as greater satisfaction from a sense of personal achievement - It is the next step after job analysis 5 FACTORS OF JOB DESIGN (HACKMAN AND OLDHAM) 1. Skill variety - increasing the number of skills that individuals use while performing work 2. Task identity - enabling people to perform a job from start to finish 3. Task significance - providing work that has a direct impact on the organization 4. Autonomy - increasing the degree of decision making, and the freedom to choose how and when work is done 5. Feedback - increasing the amount of recognition for doing a job well and communicate the results of people's work JOB ENRICHMENT - addresses these factors by enhancing job's core dimensions and increasing people's sense of fulfillment. BENEFITS OF JOB DESIGN 1. Employee input - 2. Employee training 3. work/rest schedule 4. Adjustments FACTORS AFFECTING JOB DESIGN 1. Proper scope of job - if the scope is narrow (less), then the job will not be challenging. 2. Full time challenge of the job - the job should be challenging that it takes up the full time and effort of the manager 3. Managerial skill - a manager having a high level of skill should be given challenging jobs. 4. Organization requirements - jobs must be designed according to the requirements of the organization. 5. Individual likes and dislikes 6. Organizational structure - individual job must fit into the organizational structure 7. Technology - an organization having a high level of technology will have different job designs compared to an organization having a low level of technology. JOB DESIGN STRATEGIES 1. JOB SIMPLIFICATION - a design method where jobs are divided into smaller components and subsequently assigned to workers as a whole jobs. 2. JOB ROTATION - implies the moving of employees from job to job without any change in the job 3. JOB ENLARGEMENT - expands job horizontally; increases job scope, that is, increases the number of different operations required in a job - Reduces boredom and monotony by providing employee more variety of tasks in the job 4. JOB ENRICHMENT - involves adding motivating factors to a job; a vertical expansion of a job by adding more responsibility and freedom to do it. - JOB DEPTH - refers to the degree of control employees have over their work JOB DESCRIPTION - an important document, basically descriptive in nature and contains a statement of job analysis. - It gives information about the scope of job activities, major responsibilities and positioning of the job in the organization. USES OF JOB DESCRIPTION - Preliminary drafts - Development of job specification - Tool during the orientation of new employees, to learn duties and responsibilities. MAIN CONTENT OF A JOB DESCRIPTION - Job identification or organizational position - Job summary - Jog duties and responsibilities - Relation to other jobs - Supervision - Machine - Working conditions - Hazards JOB SPECIFICATION - a written statement of qualifications, traits, physical and mental characteristics that an individual must possess to perform the job duties and discharge responsibilities effectively. - PHYSICAL SPECIFICATIONS - include the physical qualifications or physical capacities that vary from job to job. - MENTAL SPECIFICATIONS - ability to perform, arithmetical calculations, to interpret data, information blueprints etc. - EMOTIONAL AND SOCIAL SPECIFICATIONS - more important for the post of managers, supervisors, foreman etc. include emotional stability, flexibility, social adaptability inhuman relationships etc. - BEHAVIORAL SPECIFICATIONS -- play an important role in selecting the candidates for higher level jobs in the organizational hierarchy. It seeks to describe the acts of managers rather than the traits that cause the acts. USES OF JOB SPECIFICATION 1. Physical characteristics - include health,strength, age range, body size etc. 2. Psychological characteristics or special aptitudes - qualities as manual dexterity, mechanical aptitude, ingenuity judgment etc. 3. Personal characteristics or fruits of temperament - personal appearance, good and pleasing manners, emotional stability, aggressiveness or submissiveness 4. Responsibilities - include supervision of others, responsibility for production, process and equipment, responsibility for the safety of others and responsibility for preventing monetary loss. 5. Other features of a demographic nature - which are age,sex, education, experience and language ability.