HRDM Chapter 1-5_merged (1) PDF

THE OPPORTUNITIES AND CHALLENGES OF HUMAN RESOURCES MANAGEMENT INTRODUCTION TO HRM HRM HISTORICAL BREAKTHROUGHS 1890-1910 Frederick W. Taylor introduced a management approach known as scientific management that focuses on the idea of scientific selection of employees based on their capabilit...

THE OPPORTUNITIES AND CHALLENGES OF HUMAN RESOURCES MANAGEMENT INTRODUCTION TO HRM HRM HISTORICAL BREAKTHROUGHS 1890-1910 Frederick W. Taylor introduced a management approach known as scientific management that focuses on the idea of scientific selection of employees based on their capabilities. This system provides that workers will be paid additional compensation when they exceed the standard level of output for a given job, with the aim of motivating them. 1910-1930 Most companies started to develop departmental units focused on maintaining the well-being of employees. The field of industrial psychology, together with the beginning of World War I, led to the development of employment tests and selection techniques. 1930-1945 During this period, the Hawthorne Studies started to have a tremendous effect on management studies and principles such that much attention was given to personal and social interactions in the work-place that affect and influence worker productivity and level of performance. 1945-1965 This period marked the birth of union membership that gave considerable importance to employee-employer relationships. It was also during this period that pay and benefits programs slid in a very notable value as organized unions bargained for paid work leaves, health and welfare coverage. Personnel Management Association of the Philippines (PMAP) - is an association founded in 1956 to professionalize human resources management. It pioneered also in promoting the profession of HR management in Asia with the holding of the first Asian Association of Personnel Management Conference in 1973. (Pena, 2015) 1965-1985 The Civil Rights Act of 1964 reached its highest point when it prohibited discriminatory practices based on an individual’s age, sex, color, religious affiliation, race, and physical or mental disabilities. Employers were advised to adhere to Equal Employment Opportunity provisions and take affirmative steps to avoid workplace discrimination. Equal Employment Opportunity 1985-Present Diverse labor force, globalization, and strategic HRM functions were three pressing concerns during this period. Employers, primary aim is to effectively cope with the intense demands and effects of change, competition and job efficiency. HUMAN RESOURCE MANAGEMENT The policies, practices, and systems that influence employees’: Behavior Attitudes Performance  Human resources management (HRM) – The Why Should process of managing human talent to achieve an organization’s objectives You Study IMPORTANCE: Human Having a good understanding of human resources management is important for managers and entrepreneurs of all types Resources All managers are responsible for some activities that fall into the category of human resources management. Management? Managers select employees, train and motivate them, appraise them, and promote Will It Pay Off? them. It’s a job that can be incredibly rewarding. HUMAN CAPITAL AND ORGANIZATIONAL CULTURE HUMAN CAPITAL The knowledge, skills, and capabilities of individuals that add economic value. Organizations “compete through people” because success depends on managing human capital. To build human capital, managers develop superior knowledge, skills, and experience and retain and promote top performers. ORGANIZATIONAL The shared values, beliefs, and assumptions people in an organization CULTURE have. Organizational culture affects how people work and treat others. Figure 1.1: Overall Framework for Human Resources Management RESPONDING STRATEGICALLY TO CHANGES AND DISRUPTIONS IN THE MARKETPLACE AGILITY A firm’s ability to make quick changes to gain a competitive advantage. HR managers cope with ever-changing business conditions by helping redesign their firms to achieve agility. HUMAN RESOURCE MANAGERS AND BUSINESS STRATEGIES HR professionals can improve the top line by redesigning work to foster innovation, by forecasting labor trends, by recruiting and motivating employees, and by measuring their effectiveness. HR managers can also help their firms with business strategies, as well as mergers, acquisitions, and ways to enter new and global markets.  COMPETING, RECRUITING, AND STAFFING GLOBALLY  It means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is What is that it promotes and increases interactions between different regions and populations around the globe. Globalization? Importing and exporting goods and services is the easiest way to “go global.” Free-trade agreements forged between nations have helped quicken the pace of globalization.  Firms balance the following issues: different geographies, different cultures, employment laws, business practices, and safety Human resource issues underlie these How concerns. Relocating managers and training foreign managers occur through Globalization Downsizing – The planned elimination Affects HRM? of jobs Outsourcing – Contracting outside the organization to have work done that formerly was done by internal employees Offshoring – The business practice of sending jobs to other countries SETTING AND ACHIEVING CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY GOALS CORPORATE SOCIAL RESPONSIBILITY The responsibility to act in the best interests of people and communities Many firms have ethics codes, and “chief ethics officers.” Being responsible helps avoid lawsuits and improve earnings. SUSTAINABILITY Doing business in a way that does little harm to the environment Achieving complete sustainability is nearly impossible HR should spearhead the development and implementation of corporate citizenship. TECHNOLOGY CHALLENGES  ADVANCEMENTS IN INFORMATION TECHNOLOGY HAVE ENABLED ORGANIZATIONS TO TAKE ADVANTAGE OF THE INFORMATION EXPLOSION. Computer networks “Cloud computing” Document-sharing platforms Videoconferencing Social media networking The Covid-19 pandemic made web and videoconferencing applications like Zoom, Skype, and Microsoft Teams everyday necessities. FROM TOUCH LABOR TO KNOWLEDGE WORKERS Technology has reduced jobs that require little skill and increased jobs that require considerable skill. KNOWLEDGE WORKERS Workers whose responsibilities extend beyond the physical execution of work to include planning, decision-making, and problem-solving There is an increase in knowledge-based training and virtual learning Technology’s Human Resources Information System (HRIS) Effect on HRM A computerized system that provides current and accurate HR-related data for purposes of control and decision-making Used to: Automate payroll processing and administer benefits program Access employee records Recruit, screen, and pretest applicants online Train, track, and promote employees  Big data – A buzzword that describes the massive amounts of data available online and offline today Workforce (HR) analytics – The Technology’s process of gathering and analyzing data to improve a firm’s human Effect on HRM resources management An HRIS should provide HR personnel with analytical information that analyzes, refines, and better implements a firm’s strategic direction PRODUCTIVITY AND COST CHALLENGES Labor costs are often the largest expenditures companies make, particularly in service and knowledge-intensive firms. How can companies actually spend more money on employees and still drive overall costs lower? THE ANSWER: VIA HIGHER EMPLOYEE PRODUCTIVITY Employee productivity is the result of a combination of employees’ abilities, motivation, and work environment, and the technology they use to work. MAXIMIZING PRODUCTIVITY PRODUCTIVITY “The output gained from a fixed amount of inputs” Organizations can increase their productivity either by reducing their inputs or by increasing the amount that employees produce by adding more human and/or physical capital to the process. Growth in output per worker is now climbing fast in countries such as China that in the past lacked the technology available to U.S. workers. Additional productivity will have to come from the enhanced ability of employees, their motivation, and their work environment. MANAGING THE SIZE OF THE WORKFORCE TO MANAGE THE SIZE OF THE WORKFORCE, COMPANIES USE: Offshoring -Also referred to as “global sourcing,” involves shifting work to locations abroad Outsourcing -Hiring someone outside the company to perform business processes that were previously done within the firm. Nearshoring – Occurs when a firm relocates jobs abroad to nations closer to its domestic market Homesharing – The practice of outsourcing work to domestic workers who work out of their homes Downsizing - The planned elimination of jobs Furloughing – A situation in which an organization asks or requires employees to take time off for either no pay or reduced pay Part-time or contract employees MANAGING PAY AND BENEFITS COMPANIES ARE TRYING NUMEROUS APPROACHES TO MANAGE PAY AND BENEFITS. Charging employees higher premiums to cover spouses Giving employees a set amount of money to purchase health insurance on their own Employee leasing – The process of eliminating the jobs of employees who are then hired by a leasing company and contracting with that company to lease back the employees Hiring freelancers, part-time employees, independent contractors, and consultants. In the gig economy, people earn income from various nonpermanent “gigs,” or jobs, and work independently, rather than full time for an employer. EMPLOYEE CHALLENGES In addition to strategic challenges, companies must attend to important employee concerns. JOB SECURITY DIVERSITY HEALTH CARE EMPLOYEE RIGHTS  RESPONDING TO THE DEMOGRAPHIC AND DIVERSITY CHALLENGES OF THE WORKFORCE AGE DISTRIBUTION OF THE WORKFORCE  GENERATION Z Born in the mid-1990s and early 2000s.  MILLENIALS (Generation Y), have 75-80 million people and a big impact on the labor market.  GENERATION X Born between 1964 and 1979 are independent, like challenging work, and value job security.  BABY BOOMERS Born between 1946 and 1964. are of retirement age but not all retire.  OLDER WORKERS Dependable and remain on the job longer ADAPTING TO CULTURAL AND SOCIETAL CHANGES AFFECTING THE WORKFORCE Changing Attitudes Toward Work and How They Relate to Employee Engagement Many employees believe satisfaction results from balancing work challenges and rewards with their personal lives. Employees focus on finding interesting work and pursue multiple careers. Employee engagement – The extent to which employees are enthused about their work and committed to it Firms focus on achieving employee engagement. Balancing Work and Family Employees are working more hours than they have at any time since 1973. Competitive organizations are finding it advantageous to provide employees with more family-friendly options, such as: Telecommuting Flexible work hours Day care Elder care, Job sharing Assistance with family problems Companies with programs such as these have a powerful way to attract and retain top-caliber people. RESPONSIBILITIES OF HUMAN RESOURCE MANAGERS The major activities for which HR managers are typically responsible include: STRATEGIC ADVICE POLICY FORMULATION AND COUNSEL AND IMPLEMENTATION SERVICE EMPLOYEE ADVOCACY Figure 1.8: Human Resource Competency Model Thank You! STRATEGY AND HUMAN RESOURCE PLANNING  STRATEGIC PLANNING AND HUMAN RESOURCES PLANNING DEFINITION OF TERMS: Strategic planning – Procedures for making decisions about the organization’s long-term goals and strategies Human resources planning (HRP) – The process of anticipating and providing for the movement of people into, within, and out of an organization Strategic human resources management – The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals FIGURE 2.1: LINKING STRATEGIC P L ANNIN G AND H UM AN RES O U RC ES  Mission – The basic purpose of the STEP ONE: organization a well as its scope of operations MISSION, VISION, Strategic vision – A statement about where the company is going and what it AND VALUES can become in the future Core values – The strong and enduring beliefs and principles that guide a firm’s decisions and are the foundation of its corporate culture DEVELOPING A MIS S IO N S T AT E M ENT To begin crafting a business’s mission statement, one should answer the following questions: What is my organization’s reason for being? What need does the organization need to fulfill that isn’t already being met by another firm or could be better met? For whom will the firm fulfill the need? Who are its customers? Where is the firm’s market and customers? Will the firm operate locally, geographically, or globally? What core values do the people in the firm share as part of the organization’s mission? How do these values differentiate the organization from other companies? HR’S ROLE IN ESTABLISHING AND REINFORCING A FIRM’S MISSION, VISION, AND VALUES HR MANAGERS EM BODY THE FIRM’S MISSION, VISION, AND VALUES BY: 1.Communicating them informally and formally, via verbal and written communications HR’S ROLE IN ESTABLISHING AND REINFORCING A FIRM’S MISSION, VISION, AND VALUES HR MANAGER S EM BODY THE FIRM’S MISSION, VISION, AND VALUES BY: 2. Recruiting and hiring employees whose values are consistent with the organization HR’S ROLE IN ESTABLISHING AND REINFORCING A FIRM’S MISSION, VISION, AND VALUES HR MANAGER S EM BODY THE FIRM’S MISSION, VISION, AND VALUES BY: 3.Translating the mission, vision, and values into job descriptions and behaviors  STEP TWO: EXTERNAL SWOT ANALYSIS ANALYSIS -A comparison of strengths, weaknesses, opportunities, and threats for strategy formulation Summarizes the major facts and forecasts from external and internal analyses ENVIRONMENTAL SCANNING -Systematic monitoring of the major external forces influencing the organization Includes forces in the business and competitive environments BUSINESS ENVIRONMENT – Factors in the external environment that a firm cannot directly control but affect strategy and performance  FIGURE 2.2: THE FIVE FORCES FRAMEWORK  MICHAEL PORTER’S BUSINESS STRATEGY MODEL FIVE FORCES BY MICHAEL PORTER IS A TIME-TESTED STRATEGY FRAMEWORK THAT TAKES INTO CONSIDERATION THE FIVE COMPETITIVE FORCES AS DEFINED BY MICHAEL PORTER. HE IS AN AMERICAN ACADEMIC WHO HAS WRITTEN EXTENSIVELY ON ECONOMIC THEORIES AND BUSINESS STRATEGIES. EDUCATED AT HARVARD AND PRINCETON, AND CURRENTLY A PROFESSOR AT HARVARD BUSINESS SCHOOL, HE HAS AUTHORED MANY BOOKS ON STRATEGY. FORCE #1: COMPETITORS IN THE INDUSTRY Competitors are the core of this specific strategy framework by Michael Porter. So important, that when Porter’s 5 Forces model is represented using a diagram, competitors are placed in the center and the rest of the four forces are placed around it (as shown in the infographic). EXPLANATION TO FORCE #1 When a Company Operates in an Industry in which there are many competitors selling similar products, it’ll have lesser power. Why? -The reason is that there are Many Rivals trying to get a more Significant share of the pie. This is a Scenario in which a customer has many options to choose from. So, they will go for the Best, the Cheapest, the Trendiest, and so on. EXPLAN ATION TO FORCE # 1 CONTINUATION On the other hand, If a Company offers Products in an industry that doesn’t have much competition, it can easily charge a premium price and dominate the market. This is because, in the absence of another alternative, the customers will have no choice but to depend on one company for a particular product. PRACTICAL EXAM PLE TO FORCE # 1 Let’s consider the Hospitality industry as an example. In every Country, every City, and every neighborhood, there are many hotels for customers to select from. Customers make their decision by evaluating the Price, Ratings, Reviews, and Location of a Hotel. With the Advent of online bookings, the competition has become tougher. So, if there are two hotels in the same location with 4-star ratings, and one offers a room for a measly $30 less, then it’s very likely that customers will go for the cheaper one. From a Strategy Perspective, if one is thinking about getting into the hotel business, one must know that rivalry in this industry is intense. FORCE #2: THE THREAT OF NEW ENTRANTS New entrants to the industry bring new capacity, the desire to gain market share. The threat of new entrants can be divided into three categories: high, medium, and low. If an Industry enables new competitors to enter quickly and without investing a lot of money, then the barrier to entry is low and the threat of new entrants is high. On the other hand. , for Industries like petroleum and pharmaceuticals, the barriers to entry are way too high for an average businessman or investor to cross. Thus, the threat of new entrants is low. PRACTICA L EXAMPLE TO FORCE # 2 What’s the first brand name that comes to your mind when you hear the term ‘electric vehicle’? Tesla This company is a great example of an industry in which the threat of new entrants is really, really low. WHY? HUGE INVESTMENT TO Manufacture these cars on a mass scale and bring it to the customers. It’s hard to compete with Tesla, even for established car manufacturers. Thus, a new entrant is highly unlikely to be a threat. FORCE #3: BARGA INING POWER OF SUPPLIERS Suppliers affect business’s strategy,. Michael Porter mentions how suppliers of raw materials, equipment, etc. can drive the cost of a product and make businesses rethink their strategy. The lower the number of suppliers in an industry, the more power they’ll have, and vice versa. Suppliers Bargaining power is high when its product is an important input to the industry. PRACTICA L EXAMPLE TO FORCE # 3 The Restaurant Industry is an example of a supplier-dependent sector. Everything from cooking oil to flour comes from an external supplier. Restaurant owners are not farmers, so they can’t have any raw material for their business without external help. Thus, in a Location where there is a Lack of Suppliers (for example, if there’s only one supplier for cooking oil), the restaurant may have to pay whatever price the supplier asks for to run their restaurant. Thus the bargaining power of supplier is very high. On the other hand, in a place where there is an abundance of suppliers, restaurant owners can choose the best one from a pool of many suppliers. Thus the bargaining power of supplier is low FOR CE #4: BARGAINING POWER OF BUYERS In any Industry, If a Company only serves a small number of customers, then customers have more power to negotiate lower prices. On the other hand, if a Company has a very high number of customers, it can dictate the terms of engagement. For instance, it could charge a higher price for a product that is cheap to produce. PRACTICA L EXAMPLE TO FORCE # 4 Apple. According to many sources, an iPhone only costs around $500-$600 to produce. Still, the cost of iPhones can be around $1000 almost double the production cost. -The Reason is that Apple’s Operating System and Product are one of a kind. This means that currently there is only one competitor to Apple’s smartphones—Android phones (source). Hence, when it comes to Apple, the number of customers and loyal fans is high. Therefore, the bargaining power of customers is low, and the company can charge a premium price. FORCE # 5: THE THREAT OF SUBSTITUTES A Company can sell a very popular product that generates high profits. Still, If a substitute of that product seems more appealing, then customers may ditch the company’s products and go for the substitute. what a substitute product really means?. For Instance, a Substitute for a calculator is not necessarily a faster calculator. Rather, it could be a smartphone that has an in-built calculator. A Substitute could be a completely different product type from the original one or a better, improved version of the same product. PRACTICA L EXAMPLE TO FORCE # 5 Let’s start with the statistics. In 2016, the revenue of dairy-free frozen desserts in Europe was $123.02 million. In 2021, it was over $184 million, and in 2024, it’s expected to cross $230 million (source). Due to the prevalence of animal rights activism and a preference for vegan food, milk-based ice creams are being substituted with dairy-free versions that taste almost the same as milk-based ice creams. Two decades ago, no one would’ve imagined this. But now, it’s the reality. STEP THREE: INTERNAL ANALYSIS STEP THREE: INTERNAL ANALYSIS …. IN ADDITION TO AN EXTERNAL ANALYSIS, ORGANIZATIONS MUST ALSO ANALYZE THEIR OWN STRENGTHS AND WEAKNESSES.  CORE CAPABILITIES Core capabilities – Integrated knowledge that distinguishes a firm from Competitors and Delivers value Value creation –The Benefits added to a product or service when making it, after subtracting costs: A combination of three resources: Processes –Routines for how work is done and how to accomplish results Systems information systems, databases, proprietary technologies People: the knowledge, skills, and abilities of employees who execute the plan to create the most customer value and whose skills are difficult to replicate  SUSTAINING A COMPETITIVE ADVANTAGE THROUGH PEOPLE VE A S U S T A INE D C O M P ET IT IVE ORGANIZATIONS CAN ACHIE A RL Y P E O P LE. C ES — P A R T IC U L ADVANTAGE THROUGH RESOUR RESOURCES MUST BE: VALUABLE RARE DIFFICULT TO IMITATE ORGANIZED  TYPES OF TALENT AND THEIR COMPOSITION IN THE WORKFORCE STRATEGIC KNOWLEDGE WORKERS: UNIQUE SKILLS DIRECTLY LINKED TO THE COMPANY’S STRATEGY AND ARE DIFFICULT TO REPLACE CORE EMPLOYEES: VALUABLE TO A COMPANY BUT NOT PARTICULARLY UNIQUE OR DIFFICULT TO REPLACE SUPPORTING WORKERS: SKILLS LESS CENTRAL TO CREATING CUSTOMER VALUE AND GENERALLY AVAILABLE IN THE LABOR MARKET COMPLEMENTARY (EXTERNAL) PARTNERS: UNIQUE AND SPECIALIZED SKILLS THAT ARE NOT DIRECTLY RELATED TO A COMPANY’S CORE STRATEGY  CORPORATE CULTURE CULTURAL AUDITS – Audits of the culture and quality of work life in an organization To examine: Values Attitudes Beliefs Expectations CONDUCTING A CULTURAL AUDIT Survey employees about issues such as: How is business conducted? How do people communicate with one another? How are conflicts and crises resolved?  FORECASTING -FORECASTING A FIRM’S DEMAND FOR EMPLOYEES QUANTITATIVE APPROACHES TREND ANALYSIS: FORECASTS LABOR DEMAND BASED ON A FACTOR LIKE SALES SOPHISTICATED PLANNING METHODS: MODELING OR MULTIPLE PREDICTIVE TECHNIQUES. QUALITATIVE APPROACHES MANAGEMENT FORECASTS – THE OPINIONS OF SUPERVISORS, MANAGERS, AND EXPERTS ABOUT FUTURE EMPLOYMENT NEEDS DELPHI TECHNIQUE: SOLICITING AND SUMMARIZING THE JUDGMENTS OF A PRESELECTED GROUP  FORECASTING FORECASTING THE SUPPLY OF EMPLOYEES STAFFING TABLES AND MARKOV ANALYSES STAFFING TABLE: SHOWS A FIRM’S JOBS, NUMBERS OF EMPLOYEES, AND FUTURE NEEDS MARKOV ANALYSIS: TRACKS THE PATTERN OF EMPLOYEE MOVEMENTS THROUGH A FIRM QUALITY OF FILL: MEASURES HOW WELL NEW HIRES PERFORM SKILL INVENTORIES AND MANAGEMENT INVENTORIES SKILL INVENTORIES: PERSONNEL EDUCATION, EXPERIENCE, INTERESTS, AND SKILLS FILES TO MATCH JOB OPENINGS WITH EMPLOYEE BACKGROUNDS. MANAGEMENT INVENTORIES – DATA GATHERED ON MANAGERS  FORECASTING FORECASTING THE SUPPLY OF EMPLOYEES (CONT’D) REPLACEMENT CHARTS AND SUCCESSION PLANNING REPLACEMENT CHARTS –CURRENT JOBHOLDERS AND PEOPLE WHO ARE POTENTIAL REPLACEMENTS IF AN OPENING OCCURS SUCCESSION PLANNING – THE PROCESS OF IDENTIFYING, DEVELOPING, AND TRACKING KEY INDIVIDUALS FOR EXECUTIVE POSITIONS SUCCESSION PLANNING AND REPLACEMENT CHARTS DEVELOPED WITH TALENT REVIEWS TALENT REVIEWS: STRATEGIC MEETINGS TO SEE IF A FIRM HAS THE NECESSARY HUMAN RESOURCES  STEP FOUR: FORMULATING A STRATEGY STRATEGY FORMULATION BUILDS ON A SWOT ANALYSIS. A SWOT ANALYSIS CAN HELP A COMPANY MOVE FROM FORMULATING A STRATEGY, TO DEVISING A PLAN, TO CAPITALIZING ON OPPORTUNITIES, TO COUNTERACTING ON THREATS, TO ALLEVIATING INTERNAL WEAKNESSES. AN EXAMPLE OF A SWOT ANALYSIS FOR LIZ CLAIBORNE  CORPORATE STRATEGY A FIRM’S CORPORATE STRATEGY INCLUDES THE MARKETS IN WHICH IT WILL COMPETE, AGAINST WHOM, AND HOW. GROWTH AND DIVERSIFICATION  CORPORATE STRATEGY A FIRM’S CORPORATE STRATEGY INCLUDES THE MARKETS IN WHICH IT WILL COMPETE, AGAINST WHOM, AND HOW. MERGERS AND ACQUISITIONS  CORPORATE STRATEGY A FIRM’S CORPORATE STRATEGY INCLUDES THE MARKETS IN WHICH IT WILL COMPETE, AGAINST WHOM, AND HOW. STRATEGIC ALLIANCES  CORPORATE STRATEGY A FIRM’S CORPORATE STRATEGY INCLUDES THE MARKETS IN WHICH IT WILL COMPETE, AGAINST WHOM, AND HOW. JOINT VENTURES  S S STRA T E GY BUS IN E BUSINESS STRATEGY IS FOCUSED ON HOW THE COMPANY WILL COMPETE AGAINST RIVAL FIRMS TO CREATE VALUE FOR CUSTOMERS. COMPANIES CAN INCREASE CUSTOMER VALUE BY: DECREASING THE COSTS OF THEIR GOODS AND SERVICES (LOW-COST STRATEGY) INCREASING THE BENEFITS THEIR PRODUCTS PROVIDE (DIFFERENTIATION STRATEGY).  STEP FIVE: EXECUTING A FIRM’S STRATEGY EXECUTION IS THE PROCESS OF COMBINING THE ELEMENTS OF HUMAN CAPITAL (ALIGNMENT AND ABILITY) AND ORGANIZATIONAL CAPITAL (AGILITY AND ARCHITECTURE). THE 4AS FRAMEWORK OF EXECUTION CAPABILITY  HR’S ROLE IN STRATEGY EXECUTION REMAINING AGILE HR AGILITY CAN BE ACHIEVED IN TWO WAYS: COORDINATION AGILITY: THE ABILITY TO REALLOCATE RESOURCES TO NEW NEEDS RESOURCE AGILITY –USING RESOURCES IN DIFFERENT WAYS-- PEOPLE PERFORMING DIFFERENT FUNCTIONS RECONCILING SUPPLY AND DEMAND: DEMAND FOR PRODUCTS WITH SUPPLY OF EMPLOYEES DEMAND: BASED ON FORECASTED TRENDS IN BUSINESS ACTIVITY SUPPLY: DETERMINED BY FINDING CANDIDATES WITH THE QUALIFICATIONS TO FILL VACANCIES  STEP SIX: EVALUATION TO EVALUATE PERFORMANCE, FIRMS NEED “DESIRED” OBJECTIVES AND METRICS TO MONITOR HOW WELL THEY DELIVERED ON THOSE OBJECTIVES. THE OBJECTIVES CAN INCLUDE ACHIEVING A CERTAIN LEVEL OF: PRODUCTION REVENUE, PROFIT MARKET SHARE MARKET PENETRATION CUSTOMER SATISFACTION  EVALUATING A FIRM’S STRATEGIC ALIGNMENT HR POLICIES AND PRACTICES NEED TWO TYPES OF FIT: VERTICAL FIT/ALIGNMENT:FOCUS ON THE CONNECTION BETWEEN THE BUSINESS’S OBJECTIVES AND THE MAJOR INITIATIVES UNDERTAKEN BY HR HORIZONTAL FIT/ALIGNMENT: HR PRACTICES ALIGNED WITH ONE ANOTHER IN A CONFIGURATION THAT IS MUTUALLY REINFORCING BALANCED SCORECARD (BSC) – A MEASUREMENT FRAMEWORK THAT HELPS MANAGERS TRANSLATE STRATEGIC GOALS INTO OPERATIONAL OBJECTIVES THANK YOU  HRDM RECRUITMENT CHAPTER 3 OBJECTIVES: Define the Recruitment; Have an idea on how different methods of human resource recruitment are done; Name the two major source of recruitment Choose the effective, appropriate, applicable and less expensive to use in recruiting manpower Get the proper human resources in the organization. WHAT IS RECRUITMENT? Is the process of attracting the best individuals to join the company on a timely basis in sufficient numbers and meeting the qualification requirements. RECRUITMENT PROCESS  TWO MAJOR SOURCES OF RECRUITMENT Internal Source External Source refers to hiring from the refers to the qualified outside the company if it candidates from the thinks that no one from within company and within among the next ranks of ranks of its present employees can successfully employees. perform or deliver the required output. INTERNAL RECRUITMENT  BLIND ADVERTISEMENT These are ads do not reveal the identity of the company, instead they give a landline number, email, where the resume or pertinent papers will be forwarded.  BLIND ADVERTISEMENT The firm - typically the head of the job advertisement The job title - The job location Tasks and responsibilities - essentials - desirable Rewards (if any) How to apply Who to apply to Where to apply to When to apply to THE JOB TITLE The job title must be absolutely clear and easy to understand. Unclear and potential suitable applicants will not read on whilst unsuitable ones may do and could subsequently apply.  DUTIES AND RESPONSIBILITIES Try to provide as much detail as possible so that targets know what they would be expected to do. Be totally realistic , covering both attractive and unattractive aspects of the job- this way some people who do not want to do the less pleasant tasks will simply not apply, rather than withdraw at a later stage when you have wasted time and money on their application  SALARY AND BENEFITS These are the key ingredients of successful advertisements, as they are probably two of the main reasons why people decide to apply, or not. It is wise to be specific in this matter.  TIPS Eye-catching- LARGE TITLE, unusual shape, thick border or a bold heading, different shades and styles of typeface or even color. Be Brief Straightforward Non-humorous Non-Discriminatory  HRDM Thank You  HRDM CHAPTER 4 SELECTION OF HUMAN RESOURCES  WHAT IS SELECTION? Selection is the process of choosing the most appropriate candidate from a pool of applicants for a particular job. The process of selection starts as soon as the recruitment process ends. During the process, prospective candidates are evaluated and systems are developed to ensure sound selection. For an organization to function smoothly, it requires quality employees. Selection is one of the most important and tough processes for any organization which aims at appointing the right person at the right job. THE DIFFERENT DEPARTMENTS OF THE ORGANIZATION MAKE PERSONAL REQUISITIONS TO THE HRD ON THEIR MANPOWER REQUIREMENT THROUGH A PERSONNEL REQUIREMENT FOR (PRF) DULY APPROVED BY THE MANAGEMENT CONCERNED. THIS PRF SPECIFIES THE FOLLOWING: The positions and the number required. The job specifications, what is required to do the job. The personal qualities needed for a worker to do the job successfully. SELECTION: procedure on how to get the most qualified applicants Establishing selection procedure. Successful employee selection is dependent on a clear understanding of a job’s components. Identify and choose selection criteria, predictors and instruments to be used. Gather and evaluate information about applicants. Make communication decisions whether to select or reject. Who makes the selection decisions? The HRD is a staff department and as a functional authority to assist line managers in all related personnel functions. It is the functional authority of the HRD to screen the applicants and to submit the names of those who passed the initial screening to the operating department for its final decision on whom to select and finally hire for the job. Figure 6.2 Steps in the Selection Process Hiring Decision Medical exam/drug test Preemployment tests Reference and background checks Completion of application Interviews Submission of resume Resume Writing Tip: Using bullets will make your resume reader- friendly. Make it a point, however, to use bullets consistently and only when it is necessary. On the sample resume format above, technical skills, personal skills, and achievement and responsibilities are bulleted while the other sections such as career objective and professional experience aren’t you need to recognize which sections ned to be bulleted and which sections should come in paragraph or sentence form. Resume Writing Tip: Keep the format of your one-page resume as simple and as clean as possible. Stay away from distracting elements (e.g loud colors and fancy font styles) as they can take away from what is really important. If you decide to showcase your creativity with resume, be wary of your use of color and other visual elements. Refer to sample resume format 3, 4 and 5 to get some pointers on how to create your resume interesting and more visually appealing. Resume Writing Tip: Use bold and italicized text to highlight some of the more important details on your resume like your degree and your pre- professional experience. For the sample resume format provided above, important information such as names and titles are in bold while the description provided for the role “Technical Support Intern” (under pro- professional experience) is italicized.  Before I hereby certify that all given information above are true and correct to the best of my knowledge. Now Point 1 “ I hereby certify that all givenPoint information 2 above is true and correct to the best of my knowledge and any fraudulent act, misrepresentation herein made shall be enough ground for the company to act unfavorably on my application and to use as a basis of my sanction on the event that I am hired” SELECTION AND JOB MATCHING Selection tries to match the personal qualities of the applicants with the job requirements. In the selection process we cannot separate the person from his personal characteristics. Test and interviews commonly focus on the applicant’s social abilities as well as his task abilities.  SELECTION PROCESS The selection process can be defined as the process of selection and shortlisting of the right candidates with the necessary qualification and skill set to fill the vacancies in an organization. The selection process varies from industry to industry, company to company and even among departments of the same company. Every organization creates a selection process because they have their own requirements. Although, the main steps remain the same. So let’s understand in brief how the selection process works. IMPORTANCE OF SELECTION PROCESS 1. Proper selection and placement of employees lead to growth and development of the company. The company can similarly, only be as good as the capabilities of its employees. 2. The hiring talented and skilled employees results in the swift achievement of company goals. 3. Industrial accidents will drastically reduce in numbers when the right technical staff is employed for the right jobs. 4. When people get jobs they are good at, it creates a sense of satisfaction with them and thus their efficiency and quality improves. 5. People who are satisfied with their jobs often to have high morale and motivation to perform better. SELECTION PROCESS: APPLICATION FORM Potential employees apply for a job by sending applications to the organization. The application gives the interviewers information about the candidates like their bio-data, work experience, hobbies and interests. SELECTION PROCESS: PRELIMINARY INTERVIEW This is very general and basic interview conducted so as to eliminate the candidates who are completely unfit to work in the organization. This leaves the organization with a pool of potentially fit employees to fill their vacancies. The following personal traits and qualities are the important things to consider in the preliminary screening process: 1. Aptitude and interest5s indicator natural abilities, capacity for learning, and desires to do certain jobs. 2. Attitudes and needs indicate an applicant’s frame of mind, emotional and mental maturity, sense of responsibility and authority, and future motivation. 3. Analytical and manipulative abilities indicate our thinking process, intelligence level, and ability to use knowledge effectively in any assigned tasks. 4. Skills and technical abilities indicate ability to perform specific operations aspects of the job. 5. Health, energy and stamina indicate physical ability to perform the assigned task satisfactorily, especially those involving manual and managerial duties. 6. The person’s value system provides a clue to motivation, goals, objectives and work values and perseverance. SELECTION PROCESS: IN-DEPTH INTERVIEW The in-depth interviews is the most important part of the selection process. After passing all tests required, the applicant is now ready to formally enter into the selection process. All the relevant information about the applicant is bought into focus at this point as the final decision to hire the individual is made during the interview. STYLES OF INTERVIEW Structured Interview - where the interviewer has a pre-prepared set of questions which he/she reads out to the interviewee. Unstructured Interview - it provides no specific reference and the applicant is given a free hand in talking about himself and the interviewer makes and assessment. Panel Interview - it is usually done for managerial and supervisory employees. It seeks to facilitate the polling of judgments with prominent members of the working organizations.  SELECTION PROCESS: TESTING AND EVALUATION OF RESULT Before an organization decides a suitable job for any individual, they have to gauge their talents and skills. This is done through various employment tests like intelligence test. aptitude tests, proficiency tests, personality tests, etc. A. Intelligence Test - It is wisely used to measure mental or general learning ability. B. Aptitude Test - It measures the person’s capacity to learn a given job, provide there is adequate training.  SELECTION PROCESS: TESTING AND EVALUATION OF RESULT Interest Test - It is derived from hereditary and environmental factors. It tries to predict the success in the job if the person’s interest and the job are properly matched. Personality Test - It is considered as an important instrument to rest the personality of the applicant especially for supervisory and managerial positions, are they have to relative with their co-workers in the industry.  SELECTION PROCESS: TESTING AND EVALUATION OF RESULT Achievement or Proficiency Test - It tries to measure the applicant’s knowledge of a given job. It tries to eliminate “trade bluffers” who profess to know a particular type of work.  SELECTION PROCESS: EVALUATING REFERENCES The person who gives the references of a potential employee is also a very important source of information. The reference can provide info about person’s capabilities, experience in the previous companies and leadership and managerial skills. The information provided by the referee is meant to keep confidential with the HR department. There are three kinds of references: Academic Reference - This may be requested who are the new graduates. Character Reference - This reference may come from some person in the community that are familiar with the individual in their place of residence. Work or Experience Reference - To get the most valid information about the applicant, the work reference check must be mailed to the previous employer stating the confidentiality of the information.  SELECTION PROCESS: PHYSICAL EXAMINATION Medical exams help the employers know if any of the potential candidates are physically and mentally fit to perform their duties in their jobs. A good system of medical checkups ensures that the employee standards of health are higher and there are fewer cases of absenteeism, accidents and employee turnover. Medical Examinations are important for the following reasons: To screen those physically incapable of doing the job. To prevent employment of those with high incidence of absenteeism due to illness, or accidents. To prevent hiring of people with communicable diseases or who are influenced by drugs. Ward off unwarranted claims with worker’s compensation laws, SSS, medical care and suits for damages.  SELECTION PROCESS: PLACEMENT This is the final step in the selection process. After the candidate has successfully passed all written tests, interviews and medical examination, the employee is sent or emailed an appointment letter, confirming his selection to the job. The appointment letter contains all the details of the job like working hours, salary, leave allowance etc. Often employees are hired on a conditional basic where they are hired permanently after the employees are satisfied with their performance. TYPES OF EMPLOYEES Probationary - A probationary employee can be terminated if he does not pass required reasonable standards in the performance of the job or there exists a just cause for his termination. Permanent Employee - An employee who passed the probationary period and is performing a regular activity in the business of the company, covered in the regular company staffing system. Contract Employees - The employee is hired for a fixed period. Casual or Seasonal Employees - An employee is hired for a particular work or service that is seasonal in nature. Employment is temporary according to the volume of work. Apprenticeships - Apprenticeships is the development of the required skills for a particular type of work. OBTAINING RELIABLE AND VALID INFORMATION Reliability - The degree to which an interview, test, or other selection procedures result in consistent information about a candidate. Validity - The degree to which a test or selection procedure actually measures or predicts a person’s ability to do a job. INITIAL SCREENING RESUME COVER LETTER PHONE SCREENING ZOOM INTERVIEW INTERNET CHECKS APPLICATION FORMS  VIDEO RESUMES Short video clips that highlight applicant’s qualifications beyond what they can communicate on their resumes.  EMPLOYMENT INTERVIEWS Be Prepared - too many interviews just skim resumes prior to the interview. If you prepare for the interview, though, you’ll have more substance to talk about. Also, make sure you’ve done your homework on the job requirements. Be Respectful - Everyone is busy these days, so be punctual and begin and end on time. Be an active listener. Put the candidate at ease. The interview questions should flow like a conversation, not an interrogation. Build Rapport - Begin the relationship building before the person is hired. Express enthusiasm. If you haven’t built a good vibe with the candidate, it will be difficult to convey the positive message of the organization. Communicate well and often - Don’t just interview and forget about the candidate. Follow up with them and keep them in the loop. Review your work - With so many interviews and so little time, we often neglect the very important step of summarizing our notes and thinking through what just happened. This step not only helps you identify one or two key points to remember, but helps you consider how you can continuously improve the process. TYPES OF INTERVIEW None-directive - An interview in which the applicant is allowed the maximum amount of freedom in determining the course of the discussion, while the interviewer carefully refrains from influencing the applicant’s remarks. Structured Interview -An interview which a set of standardized questions having an established set if answers is used. Situational Interview - An interview in which applicant is given a hypothetical incident and asked how they would respond to it. Behavioral Description Interview (BDI) - An interview in which applicant is asked questions about what they actually did in a given situation. Sequential Interview - A format in which candidate is interviewed by multiple people, one right after another.  REMOTE OR VIRTUAL INTERVIEWS Interviews conducted via video conferencing or over the WEB POST-INTERVIEW SCREENING After candidate has been interviewed and appears to be a good potential new hire, information about the person’s previous employment as well as other information provided by the applicant in investigated. REFERENCE CHECKS Organizations check the references of employees in a number of ways. PHONE CHECKS Phone checks are fast and make it easy for references to elaborate on a candidate.  BACKGROUND CHECKS Negligent Hiring The failure of an organization to discover, via due diligence, that an employee it hired had the propensity to do harm to others. Criminal Records Checks (picture) HRDM Thank You TRAINING AND DEVELOPMENT CHAPTER 5 “LEARNING IS AN EXPERIENCE. EVERYTHING ELSE IS JUST INFORMATION.”- Albert Einstein THE BEGINNING OF TRAINING The beginning of training can be traced to the STONE AGE when people started transferring knowledge through signs and deeds to others. Vocational training started during the Industrial Revolution when apprentices were provided direct instructions in the operation of machines. Training and development are increasingly recognized. Training has to be continuously offered to keep employees updated and effective. Some believe that training has unnecessarily been given undue importance and that the experience on-the-job is good enough to develop the necessary skills and efficiency to perform the job. Training cannot entirely substitute for experience but it certain definite advantages over it. Training unlike experience can shorten the time required to reach maximum efficiency. Cost of training is much less than the cost of gaining experience, particularly if one is dealing with expensive equipment. The results of experience can sometimes be accidental particularly when experience depends solely on trial and error. The element of predictability is far less when compared to the outcome of a well-conceived and conducted training program.  TRAINING TRAINING is the process where people acquire capabilities to aid in the achievement of organizational goals. It is a planned effort of the company to facilitate learning on the job related competencies. These competencies include Knowledge, Skills, or Behavior that are critical for successful job performance. The goal of training is for employees to master the knowledge, skills, and behaviors emphasized in training programs and to apply them in day-to-day activities.  ORIENTATION: TRAINING OF NEW EMPLOYEES ORIENTATION is the planned The employees need to know the introduction of new employees to company policies, rules and regulations their jobs, co-workers, and the and the company direction in order to adapt to the new working environment. organization. Orientation to be meaningful, requires The systematic approach to cooperation among individuals in the HRD orientation requires attention to and other managers and supervisors. The attitudes, behaviors, and information HRD has to design the orientation program and incorporate the following topics. that new employees need. Company Profile – the Humble Beginnings, its products and services Company Mission, Vision and Objectives Organizational Chart Company Policies, rules and regulations Explain company pay system, benefits and other service available to employees and their families. Provide overview of job setting and work rules. Introduce the employee to co-workers and the company working environment Safety rules and health programs PURPOSE OF EMPLOYEE ORIENTATION The overall goal of orientation is to help new employees learn about the organization as soon as possible so that they can begin contributing to the company’s goals and objectives. ORIENTATION PROCESS PURPOSES Productivity enhancement Turn-over reduction Organization effectiveness Favorable employee impression Enhancement interpersonal acceptance  A SYSTEMATIC APPROACH TO TRAINING Training is moving its focus to teaching employees specific skills to a broader focus of creating knowledge. Training is used to gain a competitive advantage and viewed broadly as to create an intellectual capital. The development of intellectual capital includes the following: 1. Basic skills – skills needed to perform one’s job effectively. 2. Advanced skills – the use of technology to share with other employees. 3. Understanding of the Customer Needs – the global market is quality competitive.  STEPS IN TRAINING PROGRAM One of the key characteristics of training system that contribute to competitiveness is that they are designed according to the instructional design process. It refers to the systematic approach for the development of training programs. Conducting needs assessment a. Organizational analysis b. Person analysis c. Task analysis Ensuring employee’s readiness for training a. Attitude and motivation b. Basic skills Creating the learning environment Identification of training objectives and training outcome Meaningful materials Practice Feedbacks Observation of others Administering and coordinating programs Ensuring transfer of training Self-management strategies Peer and manager support Selecting training methods Presentational methods Group methods Evaluating training programs Identification of training outcome and evaluation designs Cost-benefit analysis The success of any training program can be gauged by the amount of learning that occurred and is transferred to the job. Training and learning will take place through the informal work groups whether an organization has a coordinated effort or not, because employees learn from other employees. While this may be true to a certain extent, a well- designed training program can give better results because what may be learned may not be the best for the organization. PHASES OF LEARNING NEEDS TRAINING ANALYSIS Organizational Analysis Task Analysis – refers to the job itself Individual Analysis- referring to the competency of the worker EMPLOYEES READINESS FOR TRAINING THE LEARNING ENVIRONMENT OF TRAINING SELECTING THE TRAINING METHODS EVALUATING THE TRAINING METHODS ( LEARNING, BEHAVIOR, AND RESULTS) DEVELOPMENT 25 It refers to formal education, job 20 experiences, relationships, and 15 assessments of personality and abilities that employees prepare for the future. 10 5 0 Item 1 Item 2 Item 3 Item 4 Item 5  APPROACHES TO HR DEVELOPMENT (IN-SITE) Management Coaching Committee Assignments Job Rotation Assistant-to-the-position Job Enlargement Mentoring OFF-SITE HR DEVELOPMENT Formal Education Team Building Case studies Role-Playing Simulation THANK YOU