HRDM-011-REVIEWER-PRELIMS.pdf

HRDM 011 - REVIEWER (PRELIMS) Acquiring and Preparing HR - Managers need to Workforce Planning & Employment predict the number and type of employees who need...

HRDM 011 - REVIEWER (PRELIMS) Acquiring and Preparing HR - Managers need to Workforce Planning & Employment predict the number and type of employees who need to meet customer demands for products and Human Resource Managers - oversee the most important services. component of a successful business – a - Managers must also identify current or potential productive, thriving workforce. employees who can successfully deliver products - views people as human assets, not costs to the and services. organization. - This area of human resources management deals with: Human Resources Management Team - suggests to the o Identifying HR requirements, i.e., HR management team how to strategically manage planning, recruiting employees, & selecting people as business resources. employees. - This includes: o Training employees to have the skills needed o recruiting and hiring employees with specific to perform their jobs effectively. skill sets to meet the company's current and Assessment and Development of HR - Company future goals, needs to create a work environment that o coordinating employee benefits supports employees’ work and nonwork o suggesting employee training and activities as follow: development strategies. o Measuring employees’ performance - In this way, HR professionals are consultants, o Preparing employees for future work roles & not workers in an isolated business function; they identifying employees’ work interests, goals, advise managers on many issues related to values, & other career issues employees and how they help the organization o Creating an employment relationship & work achieve its goals. environment that benefits both the company & the employee. Strategic Role of HRM Compensating HR - Besides interesting work, pay and benefits are the most important incentives that a Developing Skills for the Future - At all levels of the company can offer employees in exchange to organization, managers and HR professionals make them satisfy to fulfill their work work together to develop employees' skills. performance. This includes: - For example, HR professionals advise managers o Creating pay systems and supervisors how to assign employees to o Rewarding employee contributions different roles in the organization, thereby helping the organization adapt successfully to its HR Managers now are also considered as: environment. Change Leaders - In a flexible organization, employees have Human Resource Strategists shifted around to different business functions Business Strategists based on business priorities and employee Partners to the General Manager preferences. Problem Solvers Managing the HR Environment - Managers need to Consultants create a positive environment both internal and external environment for human resources involve: Recruitment - a process that provides the organization o Linking HRM practices to the company’s with a pool of qualified job candidates from which business objectives, i.e., strategic HRM. to choose. o Ensuring that HRM practices comply with the - Before companies recruit, they must implement law & ethics. proper staffing plans and forecasting to o Designing work that motivates & satisfies the determine how many people they will need. employee as well as maximizes customer - The basis of the forecast will be the annual service, quality & productivity. budget of the organization and the short- to long-  term plans of the organization. Forecasting is Job Description - is a list of tasks, duties, and based on both internal and external factors. responsibilities of a job. - Internal factors include the following: o Budget constraints Job Specifications - discuss the skills and abilities the o Expected or trend of employee separations person must have to perform the job. o Production levels o Sales increases or decreases o Global expansion plans Two Ways of Performing Job Analysis: - External factors might include the following: Task-based Analysis - focuses on the duties of the job o Changes in technology and includes the information such as: o Changes in laws o Write performance evaluations for o Unemployment rates employees. o Shifts in population o Prepare reports. o Shifts in urban, suburban, and rural areas o Answer incoming phone calls. o Competition o Assist customers with product questions. o Cold-call three customers a day. * The first step in the recruitment process is the acknowledgment of a job opening. At this point, the HR Competency-based Analysis - is less clear and more manager looks at the job description for the job opening. objective and is more appropriate for specific * Assuming the job analysis and job description are high-level positions and usually provides ready, an organization may decide to look at internal information on the following: candidates’ qualifications first. o Able to utilize data analysis tools o Able to work within teams Job Analysis - a formal system developed to determine o Adaptable what tasks people actually perform in their jobs. o Innovative - The purpose of a job analysis is to ensure the creation of the right fit between the job and the employee and to determine how employee Recruitment Methods: performance will be assessed. - Think of the analysis as “everything an employee Method: is required and expected to do”. Outside recruiters, executive search firms, and temporary employment agencies Steps in Job Analysis: Advantages: Select Jobs to study - Can be time-saving Determine information needed Disadvantages: Identify sources of data - Expensive Determine methods of data collection - Less control over final candidates to be interviewed Evaluate and verify data Use date to begin the process of writing the analysis, Method: then the job description Campus recruiting/ educational institutions Advantages: Job Design - refers to how a job can be modified or - Can hire people to grow with the organization changed to be more effective—for example, - Plentiful source of talent changing tasks as new technology becomes Disadvantages: available. - Time-consuming - Only appropriate for certain types of * The information gathered from the job analysis is experience levels used to develop both the job description and the job specifications.  Method: Disadvantages: Professional organizations and associations - time consuming Advantages: - Industry specific Method: - Networking Employee leasing Disadvantages: Advantages: - May require a fee to place an ad - the leasing company handles compensation and - Time consuming to network benefits - good alternative to temporary employment Disadvantages: Method: - possible costs Websites/Internet recruiting - less control who interviews for the position Advantages: - diversity friendly - Low cost - quick Selection Process - refers to the steps involved in choosing people who have the right qualifications Disadvantages: - could be too broad to fill a current or future job opening. - be prepared to deal with hundreds of resumes - Usually, managers and supervisors will be ultimately responsible for the hiring of individuals, but the role of human resource Method: Social media management (HRM) is to define and guide managers in this process. Advantages: - inexpensive The Selection Process Consists of Five Distinct Aspects: Disadvantages: - time consuming Criteria Development - All individuals involved in the - overwhelming response hiring process should be properly trained on the steps for interviewing, including developing Method: criteria, reviewing resumés, developing interview Events questions, and weighing the candidates. Advantages: Application and Resumé Review - Once the criteria - access to specific target candidates have been developed (step one), applications can Disadvantages: be reviewed. - can be expensive - People have different methods of going through this process, but there are also computer Method: programs that can search for keywords in Referrals resumés and narrow down the number of resumés Advantages: that must be looked at and reviewed. - higher quality applicants Interviewing - After the HR manager and/or manager - retention have determined which applications meet the Disadvantages: minimum criteria, he or she must select those - lack of diversity people to be interviewed. - nepotism - Most people do not have time to review twenty or thirty candidates, so the field is sometimes Method: narrowed even further with a phone interview. Unsolicited resumes and applications Test Administration - Any number of tests may be Advantages: administered before a hiring decision is made. - inexpensive especially with time saving keyword resume search software - These include drug tests, physical tests, personality tests, and cognitive tests. Some  organizations also perform reference checks, organization, expected compensable factors for credit report checks, and background checks. each job are listed, along with corresponding points to determine which jobs have the most Making the Offer - The last step in the selection relative importance within the organization. process is to offer a position to the chosen candidate. Hay Profile Method - This proprietary job evaluation - The development of an offer via e-mail or letter method focuses on three factors called know- is sometimes a more formal part of this process. how, problem-solving, and accountability. - Compensation and benefits will be defined in - Within these factors are specific statements an offer. such as “procedural proficiency.” Each of these statements is given a point value in each category of know-how, problem-solving, and Compensation Package - can include pay, healthcare accountability. Then job descriptions are reviewed benefits, and other benefits. and assigned a set of statements that most accurately reflect the job. * The value of the job is a major factor when - The point values for each of the statements are determining pay. There are several ways to determine the added for each job description, providing a value of a job through job evaluation. quantitative basis for job evaluation and eventually, compensation. Job Evaluation - the process of determining the relative - An advantage of this method is its quantitative worth of jobs to determine pay structure. nature, but a disadvantage is the expense of - Job evaluation can help us determine if the pay performing an elaborate job evaluation. is equitable and fair among our employees. Pay Systems: Job Evaluation Systems: Management Fit Model - In this model, each manager Job Ranking System - One of the simplest methods, makes a decision about who should be paid what used by smaller companies or within individual when that person is hired. departments. - The downside to this model may be potential - In this type of evaluation, job titles are listed and discrimination, halo effects, and resentment ranked in order of importance to the organization. within the organization. Of course, these factors can create morale issues, the exact thing we want Paired Comparison - individual jobs are compared to avoid when compensating employees. with every other job, based on a ranking system, and an overall score is given for each job, Skill-based Pay - salary levels are based on an determining the highest-valued job to the employee’s skills, as opposed to the job title. lowest-valued job. Competency-based Pay - Rather than looking at Job Classification System - every job is classified and specific skills, the competency-based approach grouped based on the knowledge and skills looks at the employee’s traits or characteristics as required for the job, years of experience, and the opposed to a specific skill set. amount of authority for that job. - This model focuses more on what the employee can become as opposed to the skills he or she Point-factor System - determines the value of a job by already has. calculating the total points assigned to it. - The points given to a specific job are called Broadbanding - Broadbanding is similar to a pay grade compensable factors. These can range from system, except all jobs in a particular category are leadership ability to specific responsibilities and assigned a specific pay category. skills required for the job. Variable Pay System - This type of system provides - Once the compensable factors are determined, employees with a pay basis but then links the each is given weight compared to the importance attainment of certain goals or achievements of this skill or ability to the organization. When directly to their pay. this system is applied to every job in the  Types of Pay: Turnover - Losing an employee is called turnover. - The cost of losing an employee can range from Salary - Fixed compensation calculated on a weekly, 25 percent to 200 percent of that employee’s biweekly, or monthly basis. No extra pay for salary. overtime work. - Some of the costs cited revolve around customer service disruption and loss of morale among other Hourly Wage - Employees are paid on the basis of number employees, burnout of other employees, and the of hours worked. costs of hiring someone new. - There are two types of turnover, voluntary Piecework System - Employees are paid based on the turnover and involuntary turnover: number of items that are produced. o Voluntary Turnover - the type of turnover that is initiated by the employee for many different Types of Incentive Plans: reasons. Commission Plans - An employee may or may not - Voluntary turnover can be somewhat receive a salary but will be paid extra (e.g., a predicted and addressed by the HR percentage for every sale made). Department. o Involuntary Turnover - is where the employee Bonus Plans - Extra pay for meeting or beating some has no choice in their termination. goal previously determined. - Bonus plans can consist of monetary Turnover Rate Formula: compensation, but also other forms such as time off or gift certificates. separations during the time period (month)/total number of employees midmonth × 100 Profit-Sharing Plans - Annual bonuses paid to employees based on the amount of profit the For example, let’s assume there were three separations organization earned. during the month of August and 115 employees midmonth. We can calculate turnover in this scenario by: Stock Options - When an employee is given the right to purchase company stock at a particular rate in 3/115 × 100 = 2.6% turnover rate time. - Please note that a stock “option” is different from the actual giving of stock, since the option infers Direct Turnover Costs - include the cost of leaving, the employee will buy the stock at a set rate, replacement costs, and transition costs. obviously, usually cheaper than the going rate. - Examples: o Recruitment Costs Other Types of Compensation: o Advertising costs for new position o Orientation and training of new employee Fringe Benefits - This can include a variety of options. o Severance costs Sick leave, paid vacation time, health club o Testing costs memberships, daycare services. o Time to interview new replacements o Time to recruit and train new hires Health Benefits - Most organizations provide health and dental care benefits for employees. In Indirect Turnover Costs - include the loss of production addition, disability and life insurance benefits are and reduced performance. offered. - Examples: Retirement Plans - Some organizations provide a o Lost knowledge retirement plan for employees. The company o Loss of productivity while new employee is would work with a financial organization to set up brought up to speed the plan so employees can save money, and often, o Cost associated with lack of motivation prior companies will “match” a percentage of what the to leaving employee contributes to the plan. o Cost associated with lack of motivation prior to leaving Common Reasons Employees Leave Organizations: Key Recruitment Statistics: A poor match between the job and the skills of the Time to Fill - The average number of days it takes to employee fill a vacant position from the time it is posted to Lack of growth when an offer is accepted. Internal pay equity Management Cost per Hire - The total cost incurred in hiring a new Workload employee, including advertising, recruiter fees, and onboarding expenses. Common Reasons for Employee Turnover: Applicant-to-Hire Ratio - The number of applicants Low job satisfaction Internal pay equity issues compared to the number of hires, indicating the Non-competitive benefits selectivity and effectiveness of the recruitment Poor and ineffective process. and/or compensation leadership/management compared to industry Quality of Hire - A measure of how well new hires Conflicts with perform and contribute to the organization, often Personal issues supervisors/managers evaluated through performance reviews or Conflicts with company retention rates. Workload mission and values Job mismatch Feeling unappreciated Source of Hire - Identifies the most effective channels (e.g., job boards, referrals, social media) for Perceptions of unfair Relocation of partner or treatment spouse attracting successful candidates. Looking for more career advancement Four Steps of Effective Employee Training: 14 Strategies to Retain Employees: 1. Onboarding and orientation Employee Orientation - is the process used for 2. Mentorship programs welcoming a new employee into the organization. 3. Employee compensation - The goals of orientation are to reduce startup 4. Perks costs, to reduce anxiety, to reduce employee 5. Wellness offerings turnover, to save time for the supervisor and 6. Communication coworkers, and to set expectations and attitudes. 7. Continuous feedback on performance 8. Training and development In-house Training - In-house training programs are 9. Recognition and rewards systems learning opportunities developed by the 10. Work-life balance organization in which they are used. 11. Flexible work arrangements - This is usually the second step in the training 12. Effective change management process and often is ongoing. 13. An emphasis on teamwork Mentoring - companies see the value in offering 14. Acknowledgment of milestones, big and small mentoring opportunities as the next step in training. Sometimes a mentor may be assigned during in-house training. Recruitment Statistics - are essential metrics that HR - A mentor is a trusted, experienced advisor who professionals use to assess and optimize the has direct investment in the development of an hiring process. employee. A mentor may be a supervisor, but - These statistics provide insights into various often a mentor is a colleague who has the aspects of recruitment, helping organizations experience and personality to help guide someone understand how effectively they attract, select, through processes. and onboard new employees. - While mentoring may occur informally, a mentorship program can help ensure the new employee not only feels welcomed but is paired up with someone who already knows the ropes  and can help guide the new employee through any Mentoring - A mentor is a trusted, experienced on-the-job challenges. advisor who has direct investment in the development of an employee. External Training - includes any type of training that is - Mentoring is a process by which an employee not performed in-house. can be trained and developed by an experienced - This is usually the last step in training, and it can person. be ongoing. - It can include sending an employee to a seminar Brown Bag Lunches - meant to create an informal to help further develop leadership skills or helping atmosphere. pay tuition for an employee who wants to take a - As the name suggests, brown bag lunch training marketing class. is one in which the training occurs during lunchtime, employees bring their food, and someone presents training information to them. Types of Training: Web-Based Training - has a number of names. It could Technical Training - a type of training meant to teach be called e-learning or Internet-based, computer- the new employee the technological aspects of based, or technology-based learning. the job. - No matter what it is called, any web-based training involves the use of technology to Quality Training - refers to familiarizing employees facilitate training. with the means of preventing, detecting, and - There are two types of web-based learning: eliminating non-quality items, usually in an o Synchronous Learning - uses instructor-led organization that produces a product. facilitation. Skills Training - includes proficiencies needed to o Asynchronous Learning - self-directed, and actually perform the job. there is no instructor facilitating the course. Team Training - a process that empowers teams to Job Shadowing - places an employee who already has improve decision-making, problem-solving, and the skills with another employee who wants to team-development skills to achieve business develop those skills. results. - Apprenticeships use job shadowing as one type of training method. Managerial Training - topics might include those from our soft skills section, such as how to motivate Job Swapping - a method for training in which two and delegate, while others may be technical in employees agree to change jobs for a period of nature. time. - Of course, with this training delivery method, Safety Training - a type of training that occurs to other training would be necessary to ensure the ensure employees are protected from injuries employee learns the skills needed to perform the caused by work-related accidents. skills of the new job. - Safety training is especially important for organizations that use chemicals or other types of Vestibule Training - training is performed near the hazardous materials in their production. worksite in conference rooms, lecture rooms, and classrooms. - This might be an appropriate method to deliver Training Delivery Methods: orientations and some skills-based training. Coaching - refers to an approved person training an employee on the skills necessary to complete * One of the most difficult parts of managing others tasks. isn’t when they are doing a great job—it is when they aren’t - A manager or someone with experience shows doing a good job. the employee how to perform the actual job. Some Examples of Performance Issues: Constantly late or leaves early  Too much time spent doing personal things at work Mandated Issues - are serious and must be addressed Inability to handle proprietary information immediately. Family issues - Usually, the mandated issue is one that goes Drug and alcohol abuse beyond the company and could be a law. Nonperforming Single Incident - These types of incidents are usually Conflicts with management best solved with a casual conversation to let the employee know what he or she did wasn’t appropriate. Discipline - defined as the process that corrects - When single incidents are not immediately undesirable behavior. corrected, they can evolve into a behavior pattern. - The goal of discipline as a process shouldn’t necessarily be to punish but to help the employee Behavior Pattern - This can occur when the employee meet performance expectations. doesn’t think the incident is a big deal because he hasn’t been correct before or may not even In order to have an effective discipline process: realize he is doing something wrong. Policies must be clearly specified and communicated so all employees will be aware of expectations. Persistent Behavior - If the employee has been It would help if all rules or procedures are in a written corrected for a behavior pattern but continues to document. exhibit the same behavior, we call this a Rules are related to safety and productivity of the persistent pattern. company. - In this phase of handling performance issues, it is important to let the employee know that the It must be clearly written so ambiguity does not occur problem is serious and further action will be taken between different managers. if it continues. HR staff, supervisors, and managers should clearly communicate the rules in orientation, training, and Disciplinary Intervention - often called the thru other methods. progressive discipline process. Lastly these policies should be revised periodically - It refers to a series of steps taking corrective depending on need. action on nonperformance issues and the steps are enlisted below: * If an employee breaks the rules or does not meet o First offense: Unofficial verbal warning. the expectations of the performance appraisal, the Counseling and restatement of expectations. performance issue model can be used to correct the behavior. o Second offense: Official written warning, documented in the employee file. Performance Issue Model - This is a model that can be o Third offense: Second official warning. An used to develop policies around performance, for improvement plan may be developed. fairness and consistency. Documented in the employee file. o Fourth offense: Possible suspension or other punishment, documented in the employee file. o Fifth offense: Termination and/or alternative dispute resolution. Performance Evaluation System - a systematic way to examine how well an employee is performing in his or her job. - can also be called performance appraisals, performance assessments, or employee appraisals. Four reasons why a systematic performance evaluation Checklist Scale - a series of questions is asked and the system should be implemented: manager simply responds yes or no to the the evaluation process should encourage positive questions, which can fall into either the behavioral performance and behavior. or the trait method, or both. it is a way to satisfy employee curiosity as to how well - Another variation to this scale is a checkmark in they are performing in their job. the criteria the employee meets, and a blank in it can also be used as a tool to develop employees. the areas the employee does not meet. it can provide a basis for pay raises, promotions, and Critical Incident Appraisal - the manager records legal disciplinary actions. examples of the employee’s effective and ineffective behavior during the time period between evaluations, which is in the behavioral Main Methods of Determining Performance: category. Trait Method - managers look at an employee’s - When it is time for the employee to be reviewed, specific traits in relation to the job, such as the manager will pull out this file and formally friendliness to the customer. record the incidents that occurred over the time period. Behavioral Method - looks at individual actions within a specific job. Work Standards Approach - For certain jobs in which productivity is most important, a work standards Comparative Methods - compare one employee with approach could be the more effective way of other employees. evaluating employees. Results Methods - are focused on employee - With this results-focused approach, a minimum accomplishments, such as whether or not level is set and the employee’s performance employees met a quota. evaluation is based on this level. Ranking Method System - also called stack ranking, employees in a particular department are ranked Performance Appraisal Methods: based on their value to the manager or Graphic Rating Scale - is a behavioral method of supervisor. evaluation. - This system is a comparative method for - It lists traits required for the job and asks the performance evaluations. source to rate the individual on each attribute. - The manager will have a list of all employees and - A discrete scale is one that shows a number of will first choose the most valuable employee and different points. The ratings can include a scale of put that name at the top. Then he or she will 1–10; excellent, average, or poor; or meets, choose the least valuable employee and put that exceeds, or doesn’t meet expectations, for name at the bottom of the list. example. Behaviorally Anchored Rating Scale (BARS) - first - A continuous scale shows a scale, and the determines the main performance dimensions of manager puts a mark on the continuum scale that the job, for example, interpersonal relationships. best represents the employee’s performance. Then the tool utilizes narrative information, such Essay Appraisal - the source answers a series of as from a critical incidents file, and assigns questions about the employee’s performance in quantified ranks to each expected behavior. essay form. - In this system, there is a specific narrative - This can be a trait method and/or a behavioral outlining what exemplifies a “good” and “poor” method, depending on how the manager writes behavior for each category. the essay. - These statements may include strengths and weaknesses about the employee or statements The Occupational Safety and Health Act (OSHA) - passed about past performance. in 1970, created the Occupational Safety and Health Administration, which oversees health and safety in the workplace.  - The organization’s mission is to ensure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education, and assistance. The types of safety laws (for all types of businesses) that are overseen by OSHA: Regulations on walking/working surfaces Means of egress (exiting) which includes emergency evacuation plans Occupational noise exposure Hazardous handling of materials Protective equipment, such as eye, face, and respiratory protection Sanitation Requirement of first aid supplies on-site Standards for fire equipment Standards for machine guards and other power tools Electrical requirements and standards Commercial diving operation requirements * These standards are normally part of the overall strategic HRM plan of any organization and are even more crucial to organizations involved in manufacturing.