Human Resource Management PDF

# Session No: 01 ## Introduction to Human Resource Management - Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of and providing direction for the people who work in the organization. ## The policies and practices involved in carryi...

# Session No: 01 ## Introduction to Human Resource Management - Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of and providing direction for the people who work in the organization. ## The policies and practices involved in carrying out the "people" or human resource aspect of a management position ## Historical Background of HRM ### Administrative Phase - The administrative phase of HRM emerged in the early 1900s. - During this period, the primary focus of HRM was on record-keeping, payroll, and personnel administration. ### Operational Phase - The operational phase of HRM started to develop in the 1940s and 1950s. - This phase emphasized the human relations aspect of HRM. - Organizations recognized the importance of employee morale and motivation in achieving productivity and success. ### Strategic Phase - The strategic phase of HRM emerged in the 1980s and gained prominence in the 1990s. - This phase recognized the strategic value of human capital and its contribution to organizational success. ## HRM Responsibilities | Role | Responsibilities | |---|---| | Line Manager | Line Manager's Responsibilities | | HR Manager | HR Manager's Responsibilities | ## HRM Goals - To link human resource goals/strategies/policies to the business goals. - To find ways for human resources to add value to a business. ## Objectives of HRM - Effective utilization of human resources. - Desirable working relationships among all members of the organization. - Maximum individual development. ## Functions of HRM - Planning - Staffing - Employee Development - Employee Maintenance - Employee Motivation - Evaluation ## Human Resource Planning - "HR Planning is the process of examining an organizations' current and future human resource needs to achieve its goals" - It involves: - Identifying and acquiring the right number of people with the proper skills. - Motivating them to achieve high performance. - Creating interactive links between business objectives and resource planning activities. - It should be linked with the organizational purpose and strategy. ## Forecasting Workforce Demand - Putting a good Human Resources plan together requires a business to make a reasonably accurate forecast of workforce size. - Key factors to consider in this forecast are: - Demand for existing and new products. - Business disposals and product closures. - Introduction of new technology (e.g. new production equipment). - Cost reduction program. - Changes to the business organizational structure. - Business acquisitions, joint ventures, strategic partnerships. ## Workforce Gap - By comparing the forecast workforce demand and supply - it is possible to compile a forecast of net workforce size. - This then compared with the strategic requirements for the business. - The result is the "workforce gap" (which is a forecast of too few or too many workers). - The role of HRM is to close the gap. ## HRM Policies to Close the Workforce Gap - The key HRM activities to manage the workforce gap comprises: - Recruitment plans (how many people, where, what type, how). - Training plans. - Redundancy plans and Staff Retention Plans (how the business intends to keep the staff it wants to retain). ## Recruitment and Selection - Recruitment is the process of establishing a suitable pool of candidates from which final selection is made. - Recruitment is a continuous process. - What are the ways that organization could recruit people? - Internal: Filling the vacancies within the organization. - External: Filling the vacancies from outside the organization. ## Internal Recruitment - This refers to the filling of job vacancies from within the business- where existing employees are selected rather than employing someone from outside. - A business might decide that it already has the right people with the right skills to do the job, particularly if its training and development program has been effective. ## External Recruitment - This refers to the filling of job vacancies from outside the organization. - Most businesses engage in external recruitment fairly frequently, particularly those that are growing strongly, or that operate in industries with high staff turnover. ## Internal vs External recruitment | Recruitment | Advantages | Disadvantages | |---|---|---| | Internal | Cheaper and quicker to recruit. People already familiar with the business and how it operates. Provides opportunities for promotion with in the business can be motivating. Business already knows the strengths and weaknesses of candidates | Limits the number of potential applicants. No new ideas can be introduced from outside the business. May cause resentment amongst candidates not appointed. Creates another vacancy which needs to be filled | | External | Outside people bring in new ideas. Larger pool of workers from which to find the best candidate. People have a wider range of experience | Longer process. More expensive process due to advertisements and interviews required. Selection process may not be effective enough to reveal the best candidate | ## Recruitment Advertising - Objectives - Attract suitable candidates. - Deter unsuitable candidates - Good job advertisement is, - Accurate - Short - Honest - Positive - Relevant ## Selection Process - Selection is the means by which the most suitable applicant is chosen from application pool. - Tools used in selection - Background Information: includes education, prior employment, college major, etc. - Interview: almost all firms use one of two types: Usually structured interviews preferred; bias is possible. - Structured interview: managers ask each person the same job-related questions. - Unstructured interview: held like a normal conversation. - Physical Ability Test: measure strength & endurance. Good for physically demanding jobs. - Paper & Pencil Tests: Either an ability and personality test. Be sure the test is a good predictor of job performance. - Ability test: assess if the applicant has the right skills for the job. - Personality test: seek traits relevant to job performance. - Performance Tests: measure job performance. The typing speed test is one example. Assessment Center: candidates assessed on job-related activities over a few days. - References: outside people provide candid information about candidates. Can be hard to get accurate information. ## Job Analysis - It is the process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job. - The general purpose of job analysis is to document the requirements of a job and the work performed. ## Methods of Collecting Job Analysis Information - Discussions (Individual / group of employees, supervisors with knowledge of the job). - Questionnaires. - Observation (Observing and noting the physical activities go about their jobs). ## How is a job analysis carried out? - Several techniques should be used to complete an effective job analysis: - Research business documents. - Ask relevant managers about the requirements and purpose of the job; what are the key activities; what relationships does the job have with other posts. - Develop a comprehensive profile through these discussions. - Interview the existing job holder (if the job already exists). - Observe the job holders to see what they really do. ## Key information need to be collected - Job title - Main duties and tasks - Targets and performance standards that the job holder is required to achieve - Amount of supervision that is normally given/ freedom of decision-making in the job - Skills and/or qualifications needed for the job (including personal skills) ## Uses of Job Analysis Information | Information | Use | |---|---| | Job Description and Job Specification | Recruiting and Selection Performance Appraisal Decisions | | Job Analysis | Job Exaluation-Wage and Salary Decisions (Compersation) | | Job Description | Training Requirements | ## What is contained in a job analysis? | Job | Description | |---|---| | Job purpose | What is the job meant to do - and how does this relate to other parts of the business? | | Job content | Duties and responsibilities | | Accountabilities | What results/outputs are the job holder responsible for? | | Performance criteria | How will the job holder's performance be measured? | | Resource requirements | E.g. equipment, location | ## Job Description (JD) - A job description sets out the purpose of a job, where the job fits into the organization structure, the main accountabilities and responsibilities of the job and the key tasks to be performed. - A job description has four main uses: - Organisation structure - Recruitment - Legal (Ex: Contact of employment) - Appraisal of performance ## Contents of a Job Description - The main contents of a job description are: - Job Title: this indicates the role/function that the job plays within an organization, and the level of job within that function (e.g. Finance Director would be a more senior position than Financial Accountant although both jobs are in the "finance department"). - Reporting responsibilities: who is the immediate boss of the job holder? - Subordinates; who reports directly TO the job holder? - Main purpose - who is involved in the job overall. - Main tasks and accountabilities: description of the main activities to be undertaken and what the job holder is expected to achieve (e.g. in the case of the Management Accountant, this might include "Complete monthly management accounts by 10th working day of each month and prepare a report on all key performance variances"). ## Job Description Cont'd - [Image of a Job Description Table. 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