Chapter 3 Human Resource Management PDF

Chapter 3 Human Resource Management Introduction Organizational success is dependent upon the effective management of people. At the heart of this process is an organization’s HRM strategy. The application of theories of organizational behavior to the context of people managemen...

Chapter 3 Human Resource Management Introduction Organizational success is dependent upon the effective management of people. At the heart of this process is an organization’s HRM strategy. The application of theories of organizational behavior to the context of people management has, in the last three decades, led to the development of various schools of thought, such as ✓Personnel management ✓Industrial relations (IR) ✓Human resource management (HRM) and, ✓More recently, strategic human resource management (SHRM) Introduction Cont’d… The broad function of personnel management has been in existence since the industrial revolution. It fulfills the welfare-officer role, supporting under-privileged factory workers through the provision of various benefits. The personnel-management model focused on: ✓Procedures and control ✓Administration of employment contracts and job grades, and ✓Collective bargaining. Introduction Cont’d… However, despite a growing recognition that employee welfare was important to organizational effectiveness, the function had little strategic involvement until the late 1980s. During the 1980s organizations came to realize that people were a resource that needed proper management at a strategic level And it was out of this realization that the term ‘human resource management’, or HRM, emerged. Defining HRM Precise definition of HRM is difficult since the issue has been subject to considerable debate within management literature. In essence, personnel management is a workforce centered, and therefore directed at ‘employees’ needs. HRM is resource centered, and therefore aimed at meeting management’s human resource needs. HRM is a process which aligns the needs of the ✓ organization and those of ✓ the employee. Defining HRM Cont’d… Thus, an appropriate definition of HRM could be: A managerial perspective, with theoretical and prescriptive dimensions, which argues for the need to establish an integrated series of personnel policies consistent with organization strategy, thus ensuring: ✓Quality of working life, ✓High commitment and performance from employees, and ✓Organizational effectiveness and competitive advantage. (Huczynski and Buchanan 2001: 673) Strategic HRM One of the aspects that defines the transition from ‘personnel’ management to HRM is the ✓HR planning within ✓The strategy of the organization. Considering HRM as a strategic function rest on the belief that an organization’s human assets offer it a sustainable source of competitive advantages.  Strategic HRM Cont’d…. So what precisely do we mean by SHRM? It is concerned with the development and implementation of which are integrated with and ensure that: ✓The culture, values and structure of the organization, and ✓The quality, motivation and commitment of its members contribute fully to the achievement of its goals. (Armstrong 1991: 81) Strategic HRM Cont’d…. It differs from traditional HRM in its emphasis on relationships between: People Structures Strategy and The environment external to the organization Models of SHRM In recent years many competing models of SHRM have been developed, which have all tried to capture the ways in which organizations can align HRM practices with their wider strategic objectives. The three models: The Michigan Harvard and Warwick models of SHRM: which have become known by the locations of the researchers who developed them. The Michigan Model This model approaches the SHRM function in a rather dispassionate manner. It treats people like any other resource that should be managed in such a way as to maximize utility whilst minimizing cost. The Michigan Model emphasizes the interaction of functional aspects of the SHRM role, such as: ✓Selection ✓Appraisal ✓Rewards and ✓Development The Michigan Model Recently, the applicability and utility of this model have been criticized as being limited in the context of modern organizations because it treats the SHRM function as a closed system. The Harvard Model The Harvard School has made a major contribution to the development of SHRM. It applied a useful open-systems model of how SHRM policy influences other organizational functions and is constrained by: ✓Stakeholder interests and ✓Situational factors. Stakeholders are people who are influenced by or can influence the operations or outputs of an organization. The Harvard Model The ability to take account of situational and stakeholder interests is particularly important in construction projects, which employ a wide range of interest groups and often have a major impact upon the general public The Warwick Model The model comprises five interrelated elements, which allow an analysis to be made of how external factors impact upon the internal operations of an organization. The model recognizes the wider context in which SHRM operates, and emphasizes the full range of tasks and skills that define HRM as a strategic function. The main contribution of the Warwick Model is that it incorporates ✓Culture and ✓Business outputs into the SHRM framework. Core components of SHRM The first step in developing a SHRM plan should be to clarify an organization’s: ✓ Short-term, ✓Medium-term and ✓Long-term direction. According to Anthony et al. (1996), SHRM has six key characteristics: It recognizes the outside environment: this comprises a set of opportunities and threats to the organization that must be recognized and taken account of by the strategic decision- making process. Core components of SHRM They can include: ✓Social ✓Demographic and labor-market changes ✓Legislation ✓Economic conditions ✓Technology ✓Political forces, etc.  Core components of SHRM Cont’d… It recognizes competition and labor-market dynamics: these affect ✓Wage/benefits levels, ✓Unemployment rates and ✓Working conditions, And define the necessary conditions that an organisation must provide to remain competitive in the labor market. Core components of SHRM Cont’d… It has a long-range focus: a strategic focus implies that consideration is given to the long-range direction and objectives of the organisation. It has a decision-making focus: this means that the organisation consciously chooses to direct and commit its human resources in a particular direction. It considers all stakeholders: a strategic approach demands that the organisation take account of the views and interests of all stakeholders, internal and external. Core components of SHRM Cont’d… It is integrated with corporate strategy: perhaps the most important characteristic is that HR strategy should be integrated with the firm’s overall corporate strategy. For example, if a company sets out to grow rapidly and a particular market, then the strategy should be rapidly to acquire new human resources with the necessary skills in order to achieve that goal. Where to make changes in an organisation? The first step in developing a SHRM plan should be to clarify an organistation’s short-term, medium-term and long-term direction. Developing policies to achieve these goals then involves analysing an organisation’s human resource: Strengths, weaknesses, opportunities and threats (a SWOT analysis) and identifying where changes need to be made. Where to make changes in an organisation? Cont’d… Culture change: developing an appropriate organisational culture. Organisation design: developing the organisational roles and relationships to take account of new developments. Organisational effectiveness: developing organisational capabilities in terms of ✓Teamwork ✓Communication ✓Productivity, and ✓ Customer service, and improving the ability to manage Where to make changes in an organisation? Cont’d… Resourcing: recruiting, training and developing the people required to achieve the organisation’s strategic objectives. Performance management: using performance appraisal to monitor the performance of employees. Reward management: developing compensation mechanisms which convey to employees the organisation’s values and performance expectations. Where to make changes in an organisation? Cont’d… Motivation: developing an intrinsically and extrinsically motivated workforce through financial and non-financial rewards. Commitment: developing a feeling of ‘mutuality’ within the organisation where the needs of individuals are integrated with those of the organisation.  Where to make changes in an organisation? Cont’d… Employee relations: developing strategies for reducing conflict between employees and management, And increasing cooperation between different groups within the organisation Flexibility: developing a structure, systems and techniques which allow the organisation to respond flexibly to change.  The operation and implementation of effective SHRM practices in construction The operation and implementation of effective SHRM practices in construction Few construction companies take a truly long-term view and adopt SHRM policies (Drukeret al. 1996). Rather, they adopt fairly reactive approaches to staffing and managing people. The achievement of SHRM priorities is dependent on an organisation creating: ✓The right structural and ✓Cultural conditions for them to take place. The operation and implementation of effective SHRM practices in construction This involves: Designing an effective organisation structure Staffing the structure with suitable people Managing the employment relationship effectively Designing an effective organisation structure An effective SHRM policy can only take place within an effectively designed organisational structure. This can be viewed at two levels: ✓The overall operation of the organisation in terms of how it manages and distributes work amongst various employee groups and functions in pursuance of the strategic goals ✓The design of the organisation in terms of the hierarchies, roles and relationships. Staffing the structure with suitable people This staffing function is also known as ‘employee resourcing’ and forms one of the most challenging aspects of the SHRM function. Employee resourcing activities aim to ensure that ✓The right numbers of employees ✓With the right skills and competencies ✓Are in the right place at the right time. The major components of employee resourcing are recruitment and selection, deployment and team formation, performance management, retention and training, career development, dismissal and redundancy. Managing the employment relationship There is a need for the organisation to take great care in balancing organisational and individual employee needs if it is to successfully fulfil its strategic objectives. Psychological contracts: Formal employment contracts can define many aspects of the employee–employer relationship. However, they cannot delineate every aspect, but socially constructed expectations and obligations fill the gaps that are left. Managing the employment relationship These less formal expectations are known as psychological contracts, which describe the beliefs of each party as to their mutual obligations within the employment relationship. The implication of psychological contracts is that, in addition to the ‘hard’ areas of the employment contract that has to be met, a ‘soft’ set of expectations held by the individual also have to be organised and managed. Managing the employment relationship Issues covered in a psychological contract include: ✓Individual differences ✓Interpersonal interaction ✓Motivation ✓Leadership and management style ✓ Group/team dynamics ✓Change and empowerment. Managing the employment relationship From a functional perspective, psychological contracts accomplish two tasks: ✓They help to predict the kinds of outputs which employers will get from employees, and ✓What kind of rewards the employee will get from investing time and effort in the organisation Psychological contracts are extremely powerful if used effectively but extremely dangerous if abused.  Chapter 4 The Mechanics of Human Resource Management In Construction Resourcing, Development and Reward  Introduction The greatest challenges for construction organisations are: ✓Finding good people and ✓Utilizing them to their full potential in a way which contributes to the accomplishment of organisational objectives In other words: the organisation In order to achieve this, they must train and develop, promote, retain and release their staff as appropriate. Introduction Cont’d…. The processes involved can be linked within a continuous loop known as the SHRM cycle, which is influenced at every stage by: ✓ An organisation’s objectives and ✓By external environmental forces. The SHRM cycle Organizational objectives and employees expectation Reward Employee Management Resourcing Human Resource Development Introduction Cont’d…. Employee resourcing is concerned with: i. Planning for the needs of the organisation ii. Defining the roles and responsibilities iii. Recruiting and selecting the people to fill these roles. Introduction Cont’d…. Human resource development (HRD) is concerned with managing the performance of employees in such a way that they contribute to organisational objectives. This includes: i. Training ii. Management development, and the iii. Management of structures and career paths to ensure clear succession routes through the organisational hierarchy. Introduction Cont’d…. Reward management is about defining the ✓Wage and ✓Benefit structures in a way which responds to the needs and expectations of employees and ensures their commitment to the organisation. Together these interrelated activities ensure the ✓Supply (Employee resourcing ) ✓Development and (Human resource development) ✓Motivation of employees (Reward management). Introduction Cont’d…. And their careful management is a prerequisite to achieving the human resource stability necessary for organisational growth and development  Expectations of the employment relationship It is important to realize that people, unlike other resources, have their own needs and requirements Which may or may not be aligned with their employer’s needs and requirements. Should they feel that their expectations are not being met, they can exercise their right to leave. Failing to meet employees’ psychological expectations will lead to: ✓A deterioration in commitment and trust ✓A decline in performance and, ultimately ✓High levels of staff turnover. The formal employment contract Whilst fulfilling formal employment contract obligations is relatively straightforward, meeting psychological contract expectations is far more complex. The formal contract of employment forms the cornerstone of the employment relationship. Such contracts define the terms and conditions of employment (i.e., what is expected from the employee and what the employer will provide in return). The formal employment contract Cont’d… The formal employment contract usually comprises ✓A job description (a summary of the employees’ roles and responsibilities) ✓The hours that they are contracted to work, and ✓Procedural aspects such as sickness procedures ✓Required notice periods and employers’ rights to change or amend their working conditions. The formal employment contract Cont’d… The rewards offered to the employee in return for their commitment and outputs are stated in terms of: ✓Salary levels ✓Details of other benefits such as bonuses, company cars and pensions and holiday entitlements. The psychological contract It is increasingly being recognized that while formal employment contracts can define many formal aspects of the employee- employer relationship. They cannot accommodate the expectations and obligations which each party has towards the other. This acknowledgement has led to the relatively recent development of the psychological contract, which attempts to define the expectations of the employee and employer. The psychological contract Cont’d… Psychological contracts define the informal beliefs of each of the parties as to their mutual obligations within the employment relationship. Psychological contracts are important for construction organisation's because: in addition to the ‘hard’ areas of the employment contract that have to be met, they acknowledge that a ‘soft’ set of expectations held by the individual also have to be organised and managed. Employee Resourcing  Employee resourcing Employee resourcing is the process of ensuring that an organisation has a ready supply of appropriately skilled people. The aim of a resourcing strategy is to ensure that the organisation identifies its personnel needs both now and, in the future And then meets them through its ✓Internal and ✓External recruitment, and ✓Staff-development activities. Employee resourcing Cont’d… It encompasses: The human resource planning function: deciding on the resources required by the organisation and arranging for their employment Deployment decisions: deciding on where to utilise people within the organisation – for example which project to allocate them to Recruitment and selection processes, and succession planning (i.e., Ensuring that the organisation has a ready supply of managers to displace others as they leave the organisation) Human resource planning Any organisation must analyse current and future markets And ensure that it has the right number of people with the required skills to exploit them successfully. The competitive tendering process, which creates uncertain workloads, coupled with the cyclical nature of the construction market makes the HR planning process difficult. Human resource planning Needs analysis: The first step in human resource planning is need analysis. Which is the assessment of current and future business needs. This is achieved through the careful analysis of an organisation’s future goals and the market for its products or services. In particular, organisations which are growing rapidly or operating within a very turbulent environment need to conduct frequent reviews of their human resource planning policies to avoid the possibility of labour or skills shortages restraining growth. Human resource planning Cont’d… In detail, the stages of needs analysis involve: 1. Identifying what jobs need to be done, now and in the future. 2. Identifying the technology people will need to do these jobs effectively, and therefore, the skills they will need. 3. Identifying the knowledge and qualifications required 4. Identifying personal requirements – types of personality that fit with the organisation’s culture and ethos. 5. Identifying performance standards expected to assess individual suitability on the basis of past performance. Human resource planning Cont’d… The evaluation of current resources: The next step in human resource planning It is to evaluate current human resources, in terms of people’s skills, interests, abilities and experiences. When compared to the SHRM plans, this will identify skills ‘gaps’ that need filling and resource deficiencies that need addressing. However, the existence of deficiencies does not necessarily indicate the need for an external recruitment policy since the necessary skills may be obtainable from existing human resources through retraining programmes or structural changes to the business. Human resource planning Cont’d… Job analysis and design: The task of ✓Collecting information about existing human resources and ✓The jobs they do And then analysing how an organisation can restructure itself to meet current and future business needs is called a job analysis. Organization must have a systematic way to determine which employees are expected to perform a particular function or task that must be accomplished. Human resource planning Cont’d… Job analysis should be seen as a process involving the following series of steps: 1. Examine the complete organisation and the fit of each person and job to future needs. 2. Identify deficiencies/misfits. 3. Redesign misfit jobs and people to better suit an organisation’s future needs. This may involve modifying elements, duties and tasks associated with a particular position and retraining those who perform these tasks Human resource planning Cont’d… Job analysis provides answers to questions such as these: How much time is taken to complete important tasks? Which tasks are grouped together and considered a job? How can a job be designed or structured so that the employees’ performance can be enhanced? What kinds of behaviors are needed to perform the job? What kind of person (in terms of traits and experience) is best suited for the job? How can the information acquired by a job analysis be used in the development of HRM programs? Human resource planning Cont’d… The analysis of internal availability: The above stages will lead to the identification of skills ‘gaps’ which need to be filled, internally or externally. Before committing to external recruitment, an organisation should check the current and future availability of internal staff. This involves analysing the future movements of people in terms of : ✓Promotions ✓Transfers, retirements, ✓ Terminations and resignations.  Human resource planning Cont’d… Analysing employee turnover and throughput: Employee turnover should be analyzed for two reasons: ✓To assess the numbers of employees likely to be replaced in the future and ✓To ascertain why people are leaving the organisation so that action can be taken to retain them An appropriate level of annual staff turnover is deemed by many organisations to be around 8 per cent. This allows a sufficient influx of new people, who bring with them new ideas, innovative practices and energy, which in turn promote organisational development. Human resource planning Cont’d… Most organisations calculate an annual turnover index by dividing the number of people leaving over the year by the number employed over the same period and multiplying by 100. Analysis of staff turnover should not just measure after-the- event departures, but also seek to identify predictors of turnover, such as diminished organisational commitment or employee burnout. Only if predictors are identified and monitored can proactive steps be taken to stem the turnover problem. Human resource planning Cont’d… Preparing job descriptions and specifications: Whether an organisation decides to fill skills gaps internally from existing employees or externally, job descriptions and specifications will need to be created and used as a basis for recruitment. A job description is an outline of the specific responsibilities and duties associated with a job, and A job specification is an outline of the educational experience and skills necessary to perform well on a job. Recruitment and selection Once shortfalls in the skills available after ✓Restructuring ✓Retraining, and ✓Redeployment have been identified The and process must then be used to attract the people who will meet these shortfalls. Before an organization can fill a job vacancy, it must find people who not only are qualified for the position but also want the job. Recruitment Recruitment is the process by which managers attempt to locate people to fill positions identified. Recruitment refers to organizational activities that influence the: ✓Number, and ✓Types of applicants who apply for a job. Thus, recruitment is directly related to both human resource planning and selection. Recruitment In addition, recruiting often represents the first contact between organizations and prospective employees. As such, care should be taken to create a positive first impression with these job applicants. The recruiting process begins with an attempt to find employees with the desired ✓Abilities and ✓Attitudes by the organization and to match them with the tasks to be performed. Recruitment Cont’d… Whether potential employees will respond to the recruiting effort depends on the attitudes they have developed toward those tasks and the organization on the basis of their past social and working experiences. How difficult the recruiting job depends on a number of factors: external influences such as: ✓Government and union restrictions ✓The labor market ✓The employer’s requirements and ✓Candidates’ preferences External Influences : Government regulations prohibiting discrimination in hiring and employment have a direct impact on recruiting practices. : If there is a surplus of labor at recruiting time, even informal attempts at recruiting will probably attract more than enough applicant: : it is important for an organization to analyze the composition of its workforce. Such an analysis is done to determine whether the firm’s employment practices are discriminatory. Interactions of the Recruit and the Organization Several aspects affect recruiting from the organization’s viewpoint: ✓The recruiting requirements set, ✓Organizational policies and procedures, and ✓The organization’s image The applicant has abilities, attitudes, and preferences based on past work experiences and influences of parents, teachers, and others. These factors affect recruits in two ways: how they set their job preferences, and how they go about seeking a job. Methods of Recruiting Once an organization has decided it needs additional or replacement employees, it is faced with the decision of how to generate the necessary applications. The organization can look to sources internal to the company and, if necessary, to sources external to the company. Methods of Recruiting Cont’d… : : Organizations can make effective use of skills inventories for identifying internal applicants for job vacancies. : If there is a short-term shortage, or if no great amount of additional work is necessary, the organization can use internal moonlighting. Methods of Recruiting Cont’d… : When an organization has exhausted its internal supply of applicants, it must turn to external sources to supplement its workforce. A number of methods are available for external recruiting. ✓Media advertising ✓E-recruiting ✓Social media ✓Employment agencies ✓Executive search firms ✓Special-events recruiting Selection Having identified a list of suitable candidates for a position, the critical task becomes the selection process. Selection is the task of deciding which people best suit the current and future needs of the organisation and offering them a position. Selection is the process by which an organization chooses, from a list of applicants, the person or persons who best meet the selection criteria for the position available, considering current environmental conditions. Selection There is no way to know for certain how a person will perform in a position, and in many companies, including those in construction, the process is no more than a lottery. However, psychologists have developed a variety of methods for attempting to measure a candidate’s suitability, and these include ✓Interviews ✓Graphology (analysis ✓Peer assessment of handwriting) ✓Astronomy ✓Personality tests ✓Bio-data analysis ✓Trials, etc.  Selection Criteria At the core of any effective selection system is an understanding of what characteristics are essential for high performance. From a performance perspective, the goal of any selection system is to accurately determine which applicants possess: ✓The knowledge, skills, abilities, and other characteristics (KSAOs) dictated by the job. Selection Criteria Additionally, the selection system must be capable of distinguishing between characteristics that are needed: ✓ At the time of hiring ✓ Those that are systematically acquired during training ✓ And those that are routinely developed after a person has been placed on the job. Categories of Criteria : A large number of ✓Cognitive (thinking, reasoning, remembering, imagining, learning words, and using language) ✓Psychomotor ✓Physical, and ✓Interpersonal attributes Are present because of genetic predispositions and because they were learned at home, at school, on the job, and so on. Categories of Criteria One of the more common cost-effective ways to screen for many of these abilities is by using educational accomplishment as a surrogate for or summary of the measures of those abilities. Although this is unfortunately not always true, it usually is safe to assume that anyone who has successfully completed high school or its equivalent has basic reading, writing, arithmetic, and interpersonal skills  Categories of Criteria Cont’d… For certain jobs, the employer may stipulate that the education (especially for college-level requirements) is in a particular area of expertise, such as Civil Engineering or Construction management. The employer might also prefer that the degree be from certain institutions, that the grade point average be higher than some minimum, and that certain honors have been achieved.  Categories of Criteria Cont’d… : Many selection specialists believe that past performance on a similar job might be one of the best indicators of future performance. Employers often consider experience to be a good indicator of ability and work-related attitudes. Their reasoning is that a prospective employee who has performed the job before and is applying for a similar job must like the work and must be able to do the job well. ✓But the organization must have a rational basis for defining what it means by “relevant experience.” Not all previous experiences are equally good predictors of performance on a given job.  Categories of Criteria Cont’d… : In the past, many employers consciously or unconsciously used physical characteristics (including how an applicant looked) as a criterion. Many times, such practices discriminated against ethnic groups, older people, and people with disabilities. For this reason, they are now illegal unless it can be shown that a physical characteristic is directly related to effectiveness at work.  Categories of Criteria Cont’d… : The final criterion category is a catchall that includes personal characteristics and personality types. Personal characteristics include marital status, sex, age, and so on. Some employers have, for example, preferred “stable” married employee’s over single people because they have assumed that married people have a lower turnover rate. On the other hand, other employers might seek out single people for some jobs, since a single person might be more likely to accept a transfer or a lengthy overseas assignment. Categories of Criteria Cont’d… Specific aptitudes and skills can also be considered part of this category of criteria. Although education and past experience are often used as measures of ability, many organizations also try to assess whether applicants possess certain aptitudes. The Big Five personality factors, known as emotional stability, extroversion, openness to experience, agreeableness, and conscientiousness, describe behavioral traits that may explain up to 75 % of an individual’s personality.  Categories of Criteria Cont’d… Of the five dimensions, conscientiousness and emotional stability have been shown to predict performance across most occupational groupings. As with other personal characteristics, selection using any aspect of personality should always be based on whether it is really necessary for high performance. It is probably unwise to use personality as a general criterion for screening out “undesirable” applicants, since the same personality characteristic that leads to failure in one job might lead to success in another. Reliability and Validity of Selection Criteria Once an organization has decided upon a set of selection criteria, a technique for assessing each of these must be chosen. The alternatives are numerous: ✓Application blanks and bio-data forms ✓Interviews ✓Psychological tests of aptitude and personality ✓Work sample tests of present skills ✓Physical and medical testing, and ✓Checks of previous experience through references. Reliability and Validity of Selection Criteria Regardless of the method chosen for collecting information about applicants, the organization must be certain that the information is both reliable and valid. Reliability: refers to how stable or repeatable a measurement is over a variety of testing conditions. When a measuring tool relies on the judgments of people (such as in an employment interview), reliability is often determined by using interrater reliability. Interrater reliability refers to the extent to which two or more interviewers’ assessments are consistent with each other. Reliability and Validity of Selection Criteria Validity addresses the questions of what a test measures and how well it has measured it. For a selection tool to be useful, it is not sufficient for it to be repeatable or stable. Both legally and organizationally, the measures that it yields must also be valid. In selection, the primary concern is whether the assessment technique results in accurate predictions about the future success or failure of an applicant. Reliability and Validity of Selection Criteria : The degree to which a test, interview, or performance evaluation measures the skill, knowledge, or ability to perform the job. E.g. a typing test for an administrative assistant position A construct is a trait that is not typically observable. For example, we cannot see leadership; we can only assume that it exists from the behavior someone displays. Construct validity actually measures the unobservable trait that it claims to measure. Reliability and Validity of Selection Criteria : The extent to which a selection technique can accurately predict one or more important elements of job behavior. Example, scores on a test or performance in some simulated exercises are correlated with measures of actual on-the-job performance. The test is called a predictor; the performance score is referred to as a criterion Reliability and Validity of Selection Criteria Two popularly used types of criterion-related validity are predictive and concurrent. Predictive validity is determined by using the scores obtained from a sample of applicants for a job. Concurrent validation, the first step is to administer the tests to present employees performing the job. At approximately the same time, performance measures for these employees are also collected. The test scores are then correlated with the performance measures The Selection Process Step 1: Preliminary Screening Step 2: Employment Interview Step 3: Employment Tests Step 4: Reference Checks and Recommendations Step 5: Selection Decision Step 6: Physical Examinations  Preliminary screening: Step 1 The Selection Process application blank and interview Step 2 Employment interview Step 3 Step 4 Reference checks and Employment tests Step 5 Recommendations Selection decision Physical examination Step 6 The Selection Process Cont’d…. : The most common first step in any selection process usually involves asking an applicant to complete an online or paper application form. Nearly all application blanks ask for enough information to determine whether the individual is minimally qualified for the position (e.g. Certification requirements). Although application blanks can be very useful selection tools, organizations must never forget that they are subject to the same legal standards as any other selection method. The Selection Process Cont’d…. Used in 90 per cent of selection decisions and the most common selection method in companies. Research indicates that interviews can be misleading, since the most polished performers, rather than the most able candidates, often get the job. The interview environment is critical, in that it must be relaxed and undisturbed. The Selection Process Cont’d…. When these conditions exist, research has found that interviews can be a useful way of assessing levels of motivation, intelligence and interpersonal skills. However, they are not very effective in assessing practical skills. There are a number of types of interviews, which include Structured: The interviewer uses a structured approach based on a series of preconceived questions which facilitate direct and easy comparison between different candidates.  The Selection Process Cont’d…. Unstructured: has no predetermined script or protocol. Questions are not prepared in advance. The interviewer acts as a facilitator, allowing discussion to take its natural course; the interview occurs in a relaxed setting and requires a considerable amount of expertise from the interviewer Panel: using a group of interviewers, which minimizes bias in selection and facilitates greater discussion, but can be intimidating for candidates. Individual: a one-to-one situation, which is useful when two people have to work closely together.  The Selection Process Cont’d…. : the candidate is given a problem to solve in a work context. Useful for testing people’s performance in a workplace setting. Job Sample Performance Tests: the applicant is required to actually do a sample of the work that the job involves in a controlled situation. Aptitude: measures special practical abilities such as typing, bricklaying, drafting, etc. Cognitive ability: tests of intelligence, intellect, numerical and verbal ability. The Selection Process Cont’d…. Personality: measures dispositions to behave in certain ways in certain situations. Considers attributes such as emotional stability, honesty, motivation, leadership abilities, adaptability, curiosity, open- mindedness, extroversion etc. Widely accepted as reliable and, when used carefully, can play a useful part in selection processes. The Selection Process Cont’d…. Integrity: used for jobs in which honesty is essential, such as banking, insurance, government security/defense positions, etc. One method is the polygraph (lie detector, the polygraph is an instrument that records changes in breathing, blood pressure, pulse, and skin response associated with sweating of palms, and then plots these reactions on paper). Self-assessment: when candidates are asked to make a personal assessment of their own abilities, skills, knowledge, etc. Peer assessment: internally peers have been found to provide very rigorous and reliable assessments, even though they often feel uncomfortable doing so. The Selection Process Cont’d…. Graphology: the study of handwriting. Based on the assumption that handwriting style and content reflect personality attributes such as Honesty, motivation, emotional stability, social skills, disposition and loyalty. For example, it is contested that ✓Right-hand slant indicates a more emotional person ✓Pressure on paper indicates energy levels and ✓The size of script indicates the ability to concentrate, etc. The Selection Process Cont’d…. Bio data: based upon the assumption that a person’s life history (education, age, marital status, number of children, employment history, etc.) shapes their attitudes and behaviour (work performance, reliability, stability, etc.) Astrology: in the UK less than 1 per cent of applicants are selected in this way. Some people believe that the position of the stars and planets when we were born and subsequent movements determine our personality and behaviour.  The Selection Process Cont’d…. : if you have ever applied for a job, you were probably asked to provide a list of people whom the organization could contact to get information about you. These references might have been work-related (such as a former supervisor or co-worker), or they might have been personal (such as friends, clergy, or family members). : upon completing Steps 1–4 of the selection process, typically two or three job candidates emerge as finalists for the position. At this point, the hiring manager needs to decide which of these finalists should receive the offer of employment Human Resource Development (HRD) HRD HRD represents the developmental side of the SHRM cycle, in improving career management and the performance of the individual. The rationale behind investing in HRD is that investing in people in the right ways will ensure that they continue to contribute to the direction in which the business wants to go.  HRD To promote loyalty and motivation among construction employees, it is important to implement: ✓Extended training schemes ✓Career-review systems and ✓Performance-management systems. Together these mechanisms can ensure that the organisation meets its succession needs And that it has people moving through the organisation with the requisite skills and abilities to fill vacancies and drive the business forward.  Staff training and development Training and development are processes that attempt to provide an employee with: ✓ Information ✓Skills, and ✓An understanding of the organization and its goals. Systematic as well as ad-hoc development programmes help to ensure that staff have the skills required for their current roles and can develop those required for future posts. It can also work as a motivating factor: significant training indicates commitment to people and the recipients are more likely to feel valued. Staff training and development Cont’d… Orientation introduces new employees to the organization and to his or her new tasks, managers, and work groups. Organisations have distinct cultures and that new employees must go through a process of orientation/socialization to avoid the inefficient effects of culture shock when they join a new organisation. Within construction firms, the process of orienting and inducting new employees is also important for health and safety reasons. Staff training and development Cont’d… Orientation: orients, directs, and guides employees to understand the work, firm, colleagues, and mission. Training: helps employees do their current work better. Development: prepares individuals for the future. It focuses on learning and personal development Training and development programmes The continuous development and training of staff is essential to maintaining a healthy, motivated and adaptable workforce. It is critical to ensure that people have the skills that they need to perform their job and advance along the career path. Essentially, the object of training is to alter permanently the behaviour of employees in a way which will bring improvements in the achievement of organisational goals. Training and development programmes Cont’d… The first step in managing training is to determine training needs and set objectives for these needs. By observing, asking, and listening, a manager or HR specialist is actually conducting a performance analysis.. Training and development programmes Cont’d… There are a number of specific steps in using a performance analysis to determine training needs. Step 1: Behavioral Discrepancy Step 2: Cost–Value Analysis Step 3: Is It a “Can’t Do” or “Won’t Do” Situation? Step 4: Set Standards Step 5: Remove Obstacles Step 6: Practice Step 7: Training Step 8: Change the Job Step 9: Transfer or Terminate Step 10: Create a Motivational Climate Training and Development Instructional Methods On-the-Job Training: The employee is placed into the real work situation and shown the job and the tricks of the trade by an experienced employee or the supervisor. Is the most widely used method of training. Mentoring or coaching: Where a supervisor is given formal responsibility to train an employee. If managed well, this is an effective means of learning, although it depends upon the quality of the mentor and their ability to impart knowledge and form personal relationship with individual members of staff.  Training and Development Instructional Methods Off-the-job training: is lectures/discussion groups run by: Training companies, Distance-learning programmes, Programmed learning or external mentoring/coaching.  Performance management Performance management aims to generate better results from ✓Individuals ✓Teams and the ✓Organisation as a whole Essentially, it is about planning goals, targets and standards, continually monitoring progress towards achieving them and providing support where necessary. Performance management can be dealt with through simple motivational techniques such as coaching and/or counselling. is reinforced with praise, recognition and increased responsibility. Management development and career management is the organisation’s primary tool for ensuring that it has the managers available to meet the organisation’s present and future needs. The goal is to ensure that the organisation provides management succession, that managers move through the organisation continually replacing others, filling vacancies as they arise. Management development is not a single technique or programme, but a series of interrelated activities which occur together. Career management The concept of career has many meanings. The popular meaning is probably reflected in the idea of moving upward in one’s chosen line of work—making more money; having more responsibility; and acquiring more status, prestige, and power. A career is the pattern of work-related experiences (e.g., job positions, job duties, decisions, and subjective interpretations about work-related events) and activities over the span of the person’s work life. Career management The basis of career management begins with developing an understanding of the nature of career-progression dynamics within an organisation. The organisation can then tailor career plans for each of its managers, identifying training and development needs and opportunities which should help them to achieve their goals whilst contributing to the organisation’s objectives. Performance appraisal systems Performance appraisal is a sensitive process which involves measuring the contribution of every employee towards the accomplishment of an organisation’s objectives, now and in the future, for the purpose of identifying rewards and penalties. The underlying objective of performance appraisal, as with so many of the SHRM functions, is to improve the performance of individuals in such a way as to contribute to the performance of the organisation as a whole. Performance appraisal systems Accordingly, in construction projects appraisal systems should operate at both individual and organisational levels, appraising the performance of subcontractors and consultants as well as individual employees. However, performance appraisal is not a one-way process and it should also serve as an important input of information to human resource planning and development. For example, it should help to identify skills gaps and whether employees need training, and it encourages supervisors to monitor their workforce in a systematic way.  Performance appraisal systems Performance appraisal still remains as an integral aspect of performance management and an important tool for managing reward within many constructions organisation’s. However, performance appraisal systems are usually controversial. For example, the quality expert Deming (1994) believed that performance appraisals were subjective, open to bias, unreliable, unmeaningful, short term in focus, divisive, destructive, and that they introduced fear and politics into the workplace. Performance appraisal systems Indeed, in a survey of a range of industries Vinson (1996) found that only 10 per cent of employees are happy with their appraisal system and that, ironically, more often than not these systems are counterproductive to performance. The three most important steps in establishing an appraisal system are: To establish the performance criteria To establish who evaluates, when and how often, and To establish evaluation techniques. Performance appraisal systems : there are three dimensions of performance that should be measured by an appraisal system, namely: Behaviour Activities, and Outputs. Behaviour measures reflect the characteristics a person brings to the job, such as reliability, positive attitudes, enthusiasm, initiative, knowledge and expertise. Performance appraisal systems Activity measures reflect the efficiency with which people go about their work and interact with others. Finally, output measures focus on the results actually achieved by an employee, in terms of quality of work and productivity. Performance appraisal systems : in construction projects, most appraisals are based on processes and outputs and take place at an organisational level in relation to issues such as payments, work quality and progress. The problem with performance appraisal systems is its susceptibility to bias due to personal differences between managers and employees, intimidation, stereotyping and discrimination.  Performance appraisal systems Consequently, problems are often experienced in the acceptance of such appraisals and there is a danger that the process becomes more harmful than useful. For this reason, it might be worth considering other methods of appraisal than those traditionally used within construction projects. The first alternative is to use a committee of several supervisors (with some external independent representatives) to make assessments. Performance appraisal systems Another option is to use specialist outsiders who are not stakeholders in an organisation or project. Finally, there is self-evaluation, which is often met with skepticism (the attitude of doubting knowledge) because of the self-interest of the employee. Reward management Reward management All managers have to decide upon rates of pay, pay structures and how performance will be rewarded. Reward management is about the ✓Design, ✓Implementation and ✓Maintenance of these systems, which support the improvement of organisational performance. Reward is the reason why the majority of individuals seek employment, and those who perform well expect to be rewarded in some way, particularly, in the case of the highly commercialized construction industry. Reward management In essence, a manager can either provide monetary or non- monetary rewards. Monetary rewards include pay, bonuses, stock options, profit shares, etc. and Non-monetary rewards can include prizes, awards and promotions to jobs with greater status, responsibility and authority.  Reward management We can classify these inducements under two headings: Extrinsic rewards: tangible rewards such as salary, bonuses, commission payments, working conditions, company cars and pensions. These rewards are effectively the ‘hygiene’ factors identified by Herzberg. Intrinsic rewards: the opportunity to satisfy other goals such as lifestyle, comfort, a sense of achievement, responsibility, recognition, words of praise, status, acclaim, challenge, etc.. They are mostly psychological rewards. These are the factors that lead to job satisfaction and motivation Reward management The balance between the monetary and non-monetary rewards offered by an organisation is likely to depend on a range of internal and external factors such as: The financial state of a company Competition within the labour market and The policies of its rivals.  Developing effective reward systems in construction To be effective, compensation systems must be: : provide basic security for employees/organisations : provide rewards which are in line with efforts and contribution : between monetary and non-monetary rewards : affordable to the employer : employees should see the benefits of diligence and of seeking opportunities to improve performance A : the employee should be happy with them.