PA6 HRM Q2-Q3 Rev PDF

PA6 | HRM Q2 HUMAN- refers to the skilled workforce in an organization. Succession planning...

PA6 | HRM Q2 HUMAN- refers to the skilled workforce in an organization. Succession planning Compensation and benefits RESOURCE: refers to limited availability or scarce. Human Resources Information Systems MANAGEMENT- Heart of getting things done through HR data and analytics people. OBJECTIVES AND FUNCTIONS IF HRM refers how to optimize and make best use of such HRM OBJECTIVES SUPPORTING limited or scarce resource so as to meet the FUNCTIONS organization goals and objectives. Legal compliance Societal Objectives Benefits HRM Union-management relation Organizational Human Resource Planning is a management function concerned with hiring, Employee relations Objectives motivating and maintaining people in an Selection organization. Training and development Appraisal It focuses on people. Placement is designing management systems to ensure that Assessment human talent is used effectively and efficiently to Functional Appraisal Placement accomplish organizational goals. Objectives Assessment Personal Objectives Training and development FUNCTIONS OD MANAGEMENT: POSDCORB Appraisal Placement GOALS OF HRM Compensation Assessment Ensures effective utilization and maximum SCOPE OF HRM development of human resources. Identifies and satisfies the needs of individuals. Union/ Labour Relation Achieves and maintains high morale among Compensation and Benefits employees. Employee Assistance Provides the organization with well-trained and Organizational Development well-motivated employees. Training And Development Selection And Staffing HOW CAN PEOPLE STAY IN AN ORGANIZATION Design of the Organization and Job Incentives, competitive compensation benefits Human Resource Planning Good environment Personnel Research and Information System Motivation HUMAN RESOURCE DEVELOPMENT Comfortability deals with training and development of the WHY DO PEOPLE LEAVE IN AN ORGANIZATION? employees in the organization. Toxic environment Human resource development is a series of Crab mentality organized activities, conducted within a specialized Marites (avoid gossip) time and designed to produce behavioral changes." - Leonard Nadler. FUNCTIONS OF HRM "Human resource development is the across of Recruitment and selection increasing knowledge, capabilities and positive work Performance management attitudes of all people working at all levels in a Learning & development business undertaking - M.M. Khan.  "HRD is a process by which the employees of an HUMAN RESOURCE MANAGEMENT- Personnel, people at organization are helped in a continuous and planned work, manpower, staff, employees. way” - Prof. T.V. Rao. ACCORDING TO ADI GODREJ “ all corporate strengths are Human Resource Development (HRD) is the dependent on people” framework for helping employees develop their personal and organizational skills, knowledge, and HUMAN RESOURCE MANAGEMEN “employing people, abilities. developing their resource, utilizing maintaining and compensating their services I tune with the job and THE NEED OF HRD organizational requirement.” Even an organization that has reached its limit of HISTORY OF HRM growth, needs to adapt to the changing environment. SCIENTIFIC MANAGAEMENT APPROACH (mid 1900s) HRD FUNCTIONS Study of motion and fatigue One best way to accomplish. The core of the concept of HRS is that of Piece-rate system development of human beings. Welfare programmes The concept of development should cover not only Failed to bring behavioral changes and increased in the individual but also other units in the productivity. organization. HUMAN RELATIONS APPROACH (1930-40) HRD SYSTEM MUST DEVELOPED Effects of social and psychological factors. The concept of development should cover not only Relations and respect-→ High productivity the individual but also other units in the organization. HUMAN RESOURCE APPROACH (1970s) The team spirit and functioning in every organizational unit. PRINCIPLES: - Employees are assets. The organization's overall developmental health. - Policies, programmes amd practices—help in BENEFITS OF HRD work and personal development. - Conducive environment. HRD provides unlimited benefits to the concerned organization. CHALLENGES OF HRM HRD makes people more competent. Individuals differ from one another. HRD can make people become more committed to their jobs. Customization of stimulation and motivation. Demanding personnel. It improves the all-round growth of the employees. It also helps to create the efficiency culture in the organization. WHAT IS THE STATUS OF HRD IN THE PHILIPPINES RELEVANT LAWS AND STATUES INVOLVING HRD: PD 442 or the “LABOR CODE OF THE PHILIPPINES” RA 7796 or the “TESDA ACT OF 1994” R.A. 7877 or the “ANTISEXUAL HARASSMENT ACT”; and E.O. 292 or the “ADMINISTRATIVE CODE OF 1987”  effective utilization of human resource remains the same. 9. CONTINOUS FUNCTION- HRM is not a one shot deal. It requires constant awareness and alertness of human relations in every operation. 10. BASIC ON HUMAN RELATIONS- Every person has different need, perception and expectations. The manager should give due attention to these factors. SCOPE (CAPACITY OF HRM) 1. HUMAN RESOURCE PLANNING- fill various position. 2. RECRUITMENT & SELECTION- develop a pool (team) of candidates. 3. JOB DESIGN- define task, assign authority and responsibility. CHALLENGES TO HR PROFESSIONALS 4. TRAINING AND DEVELOPMENT- helps in developing key competencies. Worker productivity 5. APPRAISAL OF PERFORMANCE- systematic Quality improvement assessment and evaluation of workforce. The changing attitudes of workforce 6. MOTIVATION OF WORKFORCE- developing The impact of the government enthusiastic workforce. Quality of work-life 7. REMUNERATION OF EMPLOYEES- focuses on Technology and training fair, consistent and equitable compensation. NATURE OF HRM 8. SOCIAL SECURITY & WELFARE OF EMPLOYEES- working conditions, transport, 1. INHERENT OF MANAGEMENT- selecting people, medical assistance etc. training, motivating, appraising their performance 9. REVIEW & AUDIT OF PERSONNEL POLICIES- for improving their quality. ensures reliable HR policies. 2. PERVASIVE FUNCTION- present in all levels of 10. INDUSTRIAL LABOUR RELATION- ensures management in an organization. healthy union management relationship e.g., 3. ACTION-ORIENTED- solve problem through settlement of dispute. rational (balanced) policies rather than record keeping. DIFFERENCES BETWEEN PERSONNEL MANAGEMENT 4. PEOPLE-ORIENTED- HRM is all about people at AND HRM work. Assign jobs, produce results, reward, motivate PERSONNEL HUMAN RESOURCE them towards improvements in productivity. MANAGEMENT MANAGEMENT 5. FUTURE ORIENTED- effective HRM helps Management of people Management of employees organization meet its goals. employes skills, knowledge, abilities. 6. DEVELOPMENT-ORIENTED- HRM develops full Employees are treated as Employes are treated as potential of employees through reward, training, job economic man as his economic, social and rotation. service are exchange with psychological man. 7. INTEGRATING MECHANISM- HRM maintains salary. cordial relationship between people working at Employees are viewed as Employees are treated as a various levels in organization. tool equipment. resource. 8. COMPREHENSIVE FUNCTION- workforce Employee are treated as Employees as treated as signifies people working at all levels. HRM differs cost center. Therefore profit center. Therefore, with form and shape but the basic objective of management controls cost invest in human resource. of labour.  Employees used as Employees used for multi- 3. MORAL- firmness, responsible, initiative, loyal, organization benefit. mutual benefit for dignity, (self respect) organization employees 4. EDUCATIONAL- subject knowledge about function and family. performed. Personnel function is only HRM is strategic (planned) 5. TECHNICAL- peculiar knowledge on function. auxiliary (secondary) management functions. 6. EXPERIENCE- arising from work proper. Short term perspective. Long term perspective. OBJECTIVES OF HRM OTHERS: 1. To help the organization reach its goals. Alert mentally, competent to take quick decision, honesty and 2. To employ the skills and abilities of the workforce integrity, patience, good leader, socially responsible, good efficiently. communicator, courteous (well mannered) 3. To provide the organization with well-trained and well-motivated employees. 4. To increase employees job satisfaction and self- actualization (stimulate employees to realize their potential) 5. To develop and maintain a quality of work of life. 6. To communicate with HR policies to all employees. 7. To be ethically and socially responsive to the need of the society (ensuring compliance with legal and ethical standards.) 8. To provide an opportunity for expression and voice in management. 9. To provide fair, acceptable, and efficient leadership. 10. To establish sound organizational structure and desirable working relationships. IMPORTANCE OF HRM Good HR practices helps: EMERGING ISSUES IN HRM 1. Attract and retain talent. FUTURE OF HRM: INFLUENCING FACTORS 2. Train people for challenging roles. 1. INCREASE IN SIZE OF WORFORCE- additional 3. Develop skills and competencies. demands for better pay, benefits and working 4. Promote team spirit. conditions. 5. Develop loyalty and commitment. 2. COMPOSITION OF WORKFORCE- the raising 6. Increase productivity and profits. percentage of women in workforce, demand for 7. Improve job satisfaction. equal pay, gender inequality. 8. Enhance standard of living. 3. EMPLOYEES EXPECTATIONS- as workers are 9. Generate employment opportunity. better educated, more demanding, voice strong- 10. Greater trust and respect. financial and non-financial demands is ever growing QUALITIES OF HR MANAGER and expanding. 4. CHANGES IN TECHNOLOGY- increase in HENRI FAYOLS CATEGORIZED AS: automation, modernization and computerization. 1. PHYSICAL- health, vigor (energy, strength), Employees must update their knowledge and skills address. constantly. This will necessitate constant training at 2. MENTAL- ability to understand, learn, judge and all levels. adaptable.  5. LIFE CHANGES- people are ready to change jobs, EFFECTIVE HUMAN RESOURCE PLANNING: set efficient shift locations, start up companies and even objective, top management support, employee skill inventory, experiment with untested ideas. HR information system, coordination. 6. ENVIRONMENTAL CHALLENGES- privatization efforts in Idia will gather momentum. Burden of training and retraining falls on the shoulder of HR manager. Reserved categories, minorities will lose importance during selection of employees. 7. PERSONNEL FUNCTION- job redesign, career opportunity, productivity, reward, safety and welfare, talent hunting, developing and retaining, lean and mean management (goodbye to old employee), labour relation, health care benefits. HUMAN RESOURCE PLANNING ACCORDING TO GESILER “Man power planning is the pr0cess which includes forecasting, developing implementing, and controlling by which a firm ensures that it has the right number of people and the right kind of people at the right place, at the right timed doing work for which they are economically most useful.” OBJECTIVES IF HUMAN RESOURCE PLANNING 1. Forecast personnel requirement. 2. To ensure optimum utilization of resource. 3. Use of existing manpower productively. 4. Cope with changes (training about technological changes) 5. To provide control measures (ensure resource availability when required.) 6. Promote employees in systematic manner (promotions, pay scale) 7. To provide a basis for Management Development A. OBJECTIVE OF HRP- fitting employe abilities to Programmes. enterprise requirements. 8. To assist productivity bargaining (good deal) B. ESTIMATING FUTURE ORGANIZATIONAL 9. To assess the cost of man power. STRUCTURE & MANPOWER REQUIREMENT- the management must estimate the number and IMPORTANCE OF HR PLANNING types of employees (age, experience,, qualification, A. RESERVOIR OF TALENT- retain skilled people. salary, range) required in future by analyzing B. PREPARE PEOPLE FOR FUTURE- motivate and growth, expansion, structural changes. developed to meet future needs. C. MANPOWER AUDIT- skill inventory. C. EXPAND OR CONTRACT- continuous supply of - PERSONAL FACTORS- name, age marital people to handle challenging jobs. status. D. CUT COST- HR budget. - EDUCATION AND TRAINING- school, degree, E. SUCCESSION PLANNING- stars are picked for academic excellence, training achieved. challenging projects. - EXPERIENCE AND SKILLS- job areas, job titles, special skills, Lang known, reason for leaving.  - ADDITIONAL INFORMATION- salary grade, disciplinary, record, career plans, appraisal data, test results. D. JOB ANALYSIS- training, job evaluation, performance app, career development, induction, counseling, labor relations. - JOB DESCRIPTION- job summary, duties performed, machine tools, materials, working conditions. - JOB SPECIFACTION- what kind of person and for what qualities that person should be tested. Physical character, psychological character, personal character, responsibility, demographic nature. E. DEVELOPING HUMAN RESOURCE PLAN- implementation of findings. RECRUITMENT- according to Edwin B. Flippo “the process ADVANTAGE OF INTERNAL SOURCE- employees are of searching for prospective employees and stimulating them motivated, employee morale (self-confident) is increased, to apply for jobs in the organization.” cheaper process, chain of promotion improves performance, tool for training. DISADVANATAGES OF INTERNAL SOURCE- scope for fresh talent reduced, employee become lethargic (lazy), spirit of competition is hampered, frequent transfers reduce productivity. ADVANTAGE OF EXTERNAL SOURCE- attract qualified personnel, wider choice, fresh talent, competitive spirit. DISADVATGES OF EXTERNAL SOURCE- dissatisfaction among existing staff, lengthy time-consuming process, costly process, uncertain response. SELECTION- choose. Is the process of picking inidviduals who have relevant qualifications to fill jobs in an organization. The basic purpose is to choose the individual who can most successfully perform the job, from the pool (collection) of qualified candidates. SELECTION STEPS- series of hurdles. RECEPTION- (a company create favorable impression from stage of reception.) SCREENING INTERVIEW- (preliminary interview cuts the cost, allow only eligible candidates to go through further stages.) APPLICATION BLANK- (brief history sheet of employees background)  SELECTION TESTS. 1. Intelligent test 2. Aptitude 3. 6. STRESS INTERVIEW- interviewer attempts to find Personality 4. Achievement test 5. Simulation test 6. out how applicant respond to aggressive, Assessment centre 7. Graphology test 8. Polygraph embarrassing, rude, and insulting questions. (lie detector) 9. Integrity test. 7. PANEL INTERVIEW- the applicant meets 3-5 SELECTION INTERVIEW- oral examination. interviewers who takes turns in asking questions. MEDICAL EXAMINATION- reveals physical fitness. The panel members can ask new and incisive REFERENCE CHECKS- personnel department (penetrating) question based on their expertise and check applicants previous jobs performance through experience and elicit (draw out) deeper and references given. meaningful responses from candidates. HIRING DECISIONS- final decision whether to ERRORS IN INTERVIEWING select or reject a candidate. THE HALO EFFECT- the interview should assess the whole of candidate’s personality and should not be led away by any one trait or achievement. LENIENCY (MERCY)- when a candidate is rated by 2 raters, their rating may be different. One with high score and other with low score which results in error. PROJECTION- interviewer expects hs won qualities, skills, opinions, values as he resembles his age, voice and background. STEREOTYPING- this error arises when interviewer have already forms mental association between particular community, culture, origin. This is an undesirable quality of an interviewer. PLACEMENT is an important human resource activity. is the actual posting of an employee to a specific job. KINDS OF INTERVIEW It involves assigning a specific task and responsibility to an employee. 1. PRELIMANRY INTERVIEW- screening of Decisions are taken after matching requirements of applicants this afford him freedom to decide job with qualification of candidates. whether the job will suit him. Organization put new recruits on probation period 2. THE NON-DIRECTIVE INTERVIEW- recruiter and closely monitored. asks questions that comes to minds. This allows applicants to talk freely. ORGANIZATIONAL STRCTURE AND HRM 3. THE DIRECTIVE OR STRUCTURED What structure signifies? INTERVIEW- recruiters use predetermined set of questions and comparison are made among No directions. applicants. Leads to confusion. 4. THE SITUATONAL INTERVIEW- applicants is Chaos. given a hypothetical (imaginary) incident and asked Why? to respond to it. 5. THE BEHAVIORAL INTERVIEW- focuses on actual work incidents. The applicants must reveal what he/she do in given situation. MECHANISTIC VS ORGANIC ORGANIZATION MECHANISTIC ORGANIC ORGANIZATION Rigid structure Flexible structure Employees are tied by rules Employees are not tied by and regulations. rules and regulations. High degree of decentralized style of centralization. management. Suitable for operating in Suitable for operating in static environment. dynamic environment. Decision-making is done by Decision-making is done by superiors. junior level employees also. Ex: public sector in the pre- Ex: Marico’s Saffola reforms era RESPONSIBILITY AND AUTHORITY RESPONSIBILITY- it is the obligation of a manager to carry out the duties assigned to him. AUTHORITY- it refers to the right to give orders and the power to exact obedience from others in the process of discharging responsibility. ACCOUNATBILITY- the employee’s answerability on using the authority in discharging the responsibility is termed accountability. LINE AND STAFF FUNCTIONS LINE STAFF FUNCTIONS Departments or employees Departments or employees of a firm that perform core of a firm that perform a activities. support function. Contributes directly to the Contributes indirectly to business of the firm the business of the firm. Ex: manufacturing and Ex: HR and Finance manufacturing and departments. marketing departments. LINE AND STAFF RELATONSHIP Traditional concept Service oriented firm Which are line and staff functions Both need support each other LINE STAFF CONFLICT ASSESING CURRENT HUMAN RESOURCES AND MAKING INVENTORY Different perception HR professional to bring change Job analysis - Understand market and organization. HR inventory- HRIS - Be empathetic. Generate a fairly accurate picture existing situation. - Build trust and transparency. FORECASTING - Win-win approach. Compare future needs with current availability. ROLE OF HUMAN RESOURCES DEPARTMENT Analyze companies change plan. As a specialist Forecasting methods used are Time Series Analysis, As a facilitator Regression Analysis, and Productivity Ratios. As a change of agent MATCHING THE INVENTORY WITH FUTURE As a controller REQUIREMENTS HUMAN RESOURCE PLANNING If the current inventory exceeds the future HUMAN RESOURCE PLANNING requirements. Natural attrition cannot bring down resource to Right number match Right skills What to consider then? Right time Right cost DEALING WITH SURPLUS MANPOWER HRP- process of anticipating and making provision for the Retrenchment movement of people into, within, and out of an organization. Outplacement Layofss HUMAN RESOURCE PLANNING Leave of absence without pay OBJECTIVES OF HRP Loaning Work sharing Right time- to maintain. Reduced work hours Right number- to forecast. Early/voluntary retirement Right skills- to optimize. Attrition Right cost-to utilize. GROWING IMPORTANCEOF HRP Preparing for global change Satisfying the stakeholders Monetary value to HR activities Remember the 4 Rs right number—right skills --- right time ---- right cost)