Chapter -1 Human Resource Management

Human Resource Management is the process of acquiring, training, appraising and compensating employees, and attending to their labor relations, health and safety, and fairness concerns.

Global Village: A concept in which telecommunication and transportation technologies have essentially reduced time and distance effects to produce a single worldwide community.

Multinational Corporations (MNCs): Corporations with significant operations in more than one country (i.e. Coca-Cola, Pepsi, Sony)

Global Leadership and Organizational Behavior Effectiveness (GLOBE) Research: An ongoing cross-cultural investigation of leadership and national culture. NINE (9) Dimensions of GLOBE: 1. Assertiveness: Society encourages people to be tough, assertive Vs. modest Greece 2. Future Orientation: Society encourages and rewards future oriented behavior such as planning and investing Canada 3. Gender Differentiation: maximize gender role differences South Korea 4. Uncertainty Avoidance: Societys reliance on social norms and procedures to alleviate unpredictable of future event Denmark 5. Power Distance: power to be unequally shared Russia 6. Individualism: encourage individuals Germany Hitler 7. In-Group Collectivism: Society take pride in membership in small groups family, close friends China 8. Performance Orientation: Group performance U.S. 9. Human Orientation: Fair, Generous, Caring Malaysia

Knowledge Workers: Individuals whose jobs are designed around the acquisition and application of information.- Professional worker, floor to clerical and technical Technology: Any equipment tools or operating methods designed to make work more efficient.

How Technology affects HRM Practices Recruiting: Website Vs. newspaper advertising Employee Selection: Web-based questions

 Training & Development: Online Materials/Online Video Conference Vs. to go any training Center Ethics and Employee Rights: Online survey Motivating Knowledge Workers: Web checking stock prices Paying Employees Market Values: Company Stock Market situation Communication: mobile and internet Decentralization Work Sites: can work at home (technology) Skill Levels: software or hardware manuals A Legal Concern: sending emails to Authority for harassment/sexual or bias

Workforce Diversity: The varied personal characteristics that make workforce heterogeneous Indian, Black , Disabilities, White people/ Asian-American-Hispanics Work/Life Balance: Saturday to Thursday (8 to 9 Hours chunk ) . Friday or after Office hour ?? Baby Boomers : Individuals born between 1946 and 1965 (U.S. Labor shortage ) Gen-Xers : Individuals born after 1965

Downsizing: An activity in an organization aimed at creating greater efficiency by eliminating certain jobs. Outsourcing: Sending work outside the organization to be done by individuals not employed full-time in the organization. (Garments A to Garments B)

Contingent Workforce: The part time, temporary and contract workers used by organization to fill peak staffing needs or perform work not done by core employees Wedding program in winter period-Hotel staffs

Core employees: Full time employee

Quality Management / Continuous Improvement: constantly improving the quality of products and services Kaizen: The Japanese terms for an organizations commitment to continuous improvement.

Components of Continuous Improvement

Intense focus on the customer: internal and external customers

Concern for Continuous Improvement - commitment to improve Improvements (Broad way) rapid response to complaints Accurate Measurement- measure every critical variable Empowerment finding and solving problems

Work Process Engineering: Radical, quantum change in an organization

Ethics: A set of rules of principles that defines right and wrong conduct

Three Views of Ethics: 1. Utilitarian View of Ethics: Practical view 2. Right View of Ethics: Freedom, privacy 3. Theory of Justice View of Ethics: General country law

Code of Ethics: A formal document that states an organizations primary values and the ethical rules it expects organizational members to follow.

Chapter 2: Fundamental of HRM

Management Essentials Management is the process of efficiently achieving organization objectives with and through people. The Primary Functions of Management are: 1. Planning (establish goals and objectives) 2. Organizing (determining what jobs are to be done, by whom, where decisions are to be made and how to group employees) 3. Leading (ensuring that the right people are on the job with appropriate skills and motivating them to high productivity 4. Controlling (monitoring activities to ensure goals are met

Importance of HRM in Organization

1. Focus on the Strategic Nature of HR - Two primary responsibilities: a) assisting the organization for strategic decisions b) Representing & advocating for the organizations employees

- HRM must be forward thinking - HRM is a function of every managers job, not just those who work in human resources (HR) 2. Four HRM Internal Functions 1. Staffing: Recruitment, Selection, HR Planning 2. Maintenance: Safety & Health, communication, employee relations 3. Training and Development: Orientation, employee training, employee development, career development 4. Motivation: Performance appraisals, rewards and compensation and employee benefits 3. Four External Functions 1. HRM Strategic Environment: globalization, technology, workforce diversity, changing skills requirements, decentralize work-sites 2. Government Legislation: Employee retirement act, Equal pay act, Disabilities act, Health & Safety Act, Immigration Act, Medical leave act 3. Labor Union: Third-Party Representative-work for its members to secure wages, hours and other terms & conditions of employment. Grievance Procedure or a specified process for resolving conflicts between workers and management 4. Management Thought: Current Management Thought and Practice Management Thought Theories: 1. Frederick Taylor (Scientific Management)-to enhance worker productivity 2. Hugo Munsterberg: training, performance evaluations and job efficiency 3. Mark Parker Follet: teamwork concept and group cohesiveness 4. Elton Mayo (Hawthorne Studies) a series of studies that provided new insights into group behavior

1) Staffing Function
Activities in HRM concerned seeking and hiring qualified employees The goal of recruiting is to give enough information about the job to attract a large number of qualified applicants and simultaneously discourage the unqualified from applying. Job Analyzes on specific skills, knowledge and abilities Many companies use a variety of steps to assess the applicants 2) Training & Development Function 1. Employee Training: Acquiring better skills for their current-job 2. Employee Development: Necessary talent internally available for future 3. Career Development: To provide necessary information and assessment

4. Organization Developments: Change the attitude and values of employees according to new strategic directions 3) The Motivation Function Activities in HRM concerned with helping employees exert at high energy level A level of respect between management and workers Two factors: Ability & Willingness to do job Understand the implications of motivational theories (Exhibit 2-4, Page - 44)

Motivation Theory (Exhibit 2-4)

1. 2. 3. 4. 5. 6. Adam Maslow Douglas McGregor Fredrick Herzberg David McClelland Stacey Adams Victor Vroom

1) Abraham Maslow's Hierarchy of Needs Motivational Model (1943): 1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc. 2. Safety needs - protection from elements, security, order, law, limits, stability, etc. 3. Belongingness and Love needs - work group, family, affection, relationships, etc. 4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc. 5. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and peak experiences.

Extended 8 Level Hierarchy of Needs (Abraham Maslow)-2000 : 1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc. 2. Safety needs - protection from elements, security, order, law, limits, stability, etc. 3. Belongingness and Love needs - work group, family, affection, relationships, etc. 4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc. 5. Cognitive needs - knowledge, meaning, etc. 6. Aesthetic needs - appreciation and search for beauty, balance, form, etc. 7. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and peak experiences. 8. Transcendence needs - helping others to achieve self actualization.

Douglas McGregor - Theory x y

Theory x ('authoritarian management' style) The average person dislikes work and will avoid it he/she can. Therefore most people must be forced with the threat of punishment to work towards organizational objectives. The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else.

Theory y ('participative management' style) Effort in work is as natural as work and play. People will apply self-control and self-direction in the pursuit of organizational objectives, without external control or the threat of punishment. Commitment to objectives is a function of rewards associated with their achievement. People usually accept and often seek responsibility. The capacity to use a high degree of imagination, ingenuity and creativity in solving organizational problems is widely, not narrowly, distributed in the population. In industry the intellectual potential of the average person is only partly utilized.

Fredrick Herzberg's Motivation-Hygiene Theory (Two Factor Theory)

Leading to Dissatisfaction

Leading to Satisfaction

Company policy Supervision Relationship w/Boss Work conditions Salary Relationship w/Peers

Achievement Recognition Work itself Responsibility Advancement Growth

David McClelland's needs-based Motivational Model

The need for achievement (n-ach) The n-ach person is 'achievement motivated' and therefore seeks achievement, attainment of realistic but challenging goals, and advancement in the job. There is a strong need for feedback as to achievement and progress, and a need for a sense of accomplishment. The need for authority and power (n-pow) The n-pow person is 'authority motivated'. This driver produces a need to be influential, effective and to make an impact. There is a strong need to lead and for their ideas to prevail. There is also motivation and need towards increasing personal status and prestige. The need for affiliation (n-affil) The n-affil person is 'affiliation motivated', and has a need for friendly relationships and is motivated towards interaction with other people. The affiliation driver produces motivation and need to be liked and held in popular regard. These people are team players.

Adams Equity Theory Diagram

Victor Vroom Expectancy Theory

The Expectancy Theory of Motivation explains the behavioral process of why individuals choose one behavioral option over another. It also explains how they make decisions to achieve the end they value. Vroom introduces three variables within the expectancy theory which are valence (V), expectancy (E) and instrumentality (I).

Three components of Expectancy theory: Expectancy, Instrumentality, and Valence 1. Expectancy: Effort Performance (EP) 2. Instrumentality: Performance Outcome (PO) 3. Valence- V(R)

Expectancy: Effort Performance (EP) Expectancy is the belief that one's effort (E) will result in attainment of desired performance (P) goals. Usually based on an individual's past experience, self confidence (self efficacy), and the perceived difficulty of the performance standard or goal. Factors associated with the individual's Expectancy perception are self efficacy, goal difficulty, and control. Self efficacy is the persons belief about their ability to successfully perform a particular behavior.

Instrumentality: Performance Outcome (PO) Instrumentality is the belief that a person will receive a reward if the performance expectation is met. This reward may come in the form of a pay increase, promotion, recognition or sense of accomplishment. Instrumentality is low when the reward is given for all performances given.

Valence- V(R) Valence: the value the individual places on the rewards based on their needs, goals, values and Sources of Motivation. Factors associated with the individual's valence for outcomes are values, needs, goals, preferences and Sources of Motivation Strength of an individuals preference for a particular outcome.

4) Maintenance Function
Activities in HRM concerned with maintaining employees commitment and loyalty to the organization. Communication Program: HRM programs designed to provide information to employees. Some programs help employees know what is occurring around them and vent frustrations- through teleconferencing, intranet, bulletin boards and hall meetings

How are HRM Functions Translated into Practice?

Employment: activities surroundings the staffing and selection function Training and Development helps employees and the organization to achieve greater productivity Compensation & Benefits: paying employees and administering benefits packages Employee Relations: ensuring open communication exists for all employees

Effective Communication Program Involve:

Top Management Commitment Effective upward communication

Determining what to communicate Allowing for feedback Accurate information source

Chapter: 5 - Human Resource Planning and Job Analysis

Human Resource Planning: Process of determining an organizations human resource needs. An Organization Framework

SWOT Analysis

PESTEL Analysis

Human Resource Information System (HRIS): A computerized system that assists in the processing of HRM information. Exhibit 5-2: Information Categories of Human Resource Information System (HRIS): Group 1: Basic Non-confidential Information Employee Nam Organization Name Work Location & Phone Number Group 2: General Non-confidential Information Info previous record Social Security Number (Bangladesh TIN Number) Other organization information (code, effective date) Position info (code, title, effective date)

Group 3: General Information with Salary Info previous wages record Current Salary, effective date, amount of last change, type of last change and reason for last change Group 4: General Information with Salary Info previous wages record + Education Data Group 5: Extended Confidential Information with Salary Bonus info Projected Salary increase info + performance record Replacement Chart: HRM organization charts indicating position that may become vacant in the near future and individuals who may fill the vacancies. See the chart Exhibit 5-3

Job Analysis: Provides information about jobs currently being done and the knowledge, skills and abilities that individuals need to perform the job adequately.

Job Analysis Methods 1) Observation Method: A job analysis techniques in which data are gathered by watching employers work. 2) Individual Interview Method: Meeting with an employee to determine what his or her job entails 3) Group Interview Method: Meeting with a number of employees to collectivity determines what their job entails. 4) Structured Questionnaire Method: A specifically designed questionnaire on which employees rate tasks they perform in their jobs. 5) Technical Conference Method: A job analysis technique that involves extensive input from the employees supervisor.

6) Diary Method: A job analysis method requiring job incumbents to record their daily activities. Purpose of Job Analysis
1) Job Description: A statement indicating what a job entails. 2) Job Specification: States minimum acceptable qualifications to

perform successfully 3) Job Evaluation: Specifies the relative value of each job in the organization Job Morphing: Readjusting skills to match job requirements

The Multifaceted Nature Job Analysis

Recruitment Labour Relation Safety & Health Compensation Performance Job Analysis Job Description Job Specifications Selection HR Planning Employee Training Employee Development Career Development

Chapter 6: Recruiting
Recruiting
The Process of seeking sources for job candidates. The more applications received, the better the recruiters chances of finding an individual best suited to the job requirements A good recruiting program should attract the qualified and discourage the unqualified HRM must develop new strategies to locate and hire individual possessing the skills the company needs

Constraints of Recruiting Efforts

Factors that can limit recruiting outcomes.

Focus Five (5) Specific Constraints: 1. Organization Image: The image of the organization , can be a potential constraint 2. Job Attractiveness: wide range of facilities 3. Internal Organization Policies: Promote from within wherever possible (internal hiring) 4. Government Influence: Bangladesh 5. Recruiting Costs: Recruiting efforts are expensive

Recruiting: A Global Prospective

Host-Country National (HCN): A citizen of the host country hired by an organization based in another country. Expatriate: An individual who lives and works in a country of which he or she is not a citizen BMW Car German parts plant, China assembly operations, U.S. Marketing Team

Recruiting Sources
1. 2. 3. 4. Internal Search Employee Referrals/Recommendations External Search Alternatives

1) Internal Search
A promotion-from-within concept Advantages: It is good public relations It builds morale It encourages good individuals who are ambitious It is less costly than outside recruitment Training Devices for developing middle top level A good selection : individual performance is available

2) Employee Referrals & Recommendation

A recommendation from a current employee regarding of a job applicant Employee referrals are an excellent means of locating potential employees for hard to fill positions (i.e. IT professionals, Computer Programmer, Engineers)

3) External Search
1. Advertisements : Newspaper Blind box ad: An advertisement that does not identify the advertising organization (i.e. pls send your CV to P.O. Box 1234) 2. Employment Agencies 3. School, College and Universities 4. Professional Organization: Labour Union, Professional Clubs/Association 5. Unsolicited Applicants: Letter/e-mail/phone 6. Cyberspace Recruiting Websumes: Web Pages that are used as resume

4) Alternatives
1. Temporary Help Services : 6 month 2. Employee Leasing: Individuals hired by one firm and sent to work in another for a specific time 3. Independent Contractors: Consultant

Getting into the Organization

Getting a job Full-Time Start Early Prepare Your Resume Hard Copy Soft Copy Mini-Compact Disk Website Blog Research Copy

Chapter 7: Foundation of Selection

The Selection Process:
The Selection Process consists 8 -Steps: 1. Initial Screening Interview 2. Completing the Application Form 3. Employment Tests 4. Comprehensive Interview 5. Back-ground Investigation 6. Conditional Job Offer 7. Medical or Physical Examination 8. Permanent Job-Offer

The Selection Process

1. Initial Screening Interview: The first steps in the selection Process whereby job inquiries are sorted. Two Steps Procedure: Screening Inquiries Screening Interview 2. Completing the Application Form: Company specific employment form used to generate specific information the company wants; name, address, telephone number Weighted Application Form: A special type of application form that uses relevant applicant information to determine the likelihood of Job success 3. Employment Tests: intelligence, aptitude, ability and interest tests Performance Simulation Tests: Work sampling and assessment centers evaluation abilities in actual job activities Work Sampling: A selection device requiring the job applicant to actually perform a small segment of the job Assessment Center: A facility where performance simulation tests are administered. Testing in a Global Arena: U.K. Honesty Tests 4) Comprehensive Interview: A selection device used to obtain in-depth information about a candidate. a. Impression Management: Influencing performance evaluations by portraying an image desired by the appraiser. b. Behavioral Interviews: Observing job candidates not only for what they say but for how they behave. c. Realistic Job Previews (RJP): A selection device that allows job candidates to learn negative as well as positive information about the job & org. 5) Background Investigation: The process of verifying information job candidates provide, USA-Employment Eligibility Verification a. Qualified Privilege: The ability for organizations to speak candidly to one another about employees. Good-Faith Reference 6) Conditional Job Offer: A tentative job offer that becomes permanent after certain conditions are met. 7) Medical/Physical Examination: An examination to determine an applicants physical fitness for essential job performance 8) Job Offers: completing 7 steps offer job. a. Comprehensive Selection: Applying all steps in the selection process before rendering a decision about a job candidate

Key Elements for Successful Predictors

Reliability: A selection devices consistency of measurement. i.e. IQ Test Validity: The proven relationship of a selection device to relevant criterion.

Content Validity: The degree to which test content, as a sample, represents all situations that could have been included, i.e. Computer Test Construct Validity: The degree to which a particular trait relates to successful job performance. Criterion-related validity: The degree to which a particular selection device accurately predicts the important elements of work behavior, as in the relationship between a test score and job performance Predictive Validity: Validating tests by using prospective applicants as the study group Concurrent Validity: Validating tests by using current employees as the study group Cut score: A scoring point below which applicants are rejected. Validity Coefficients: The statistical relationships existing between an individuals test score and his/her performance. The range 1 to + 1 in magnitude Validity Generalization: A test valid for screening applicants for a variety of jobs and performance factor many occupations Meta-Analysis: What distinguishes validity generalization is its use of a statistical technique. i.e. numerous variables and correct or adjust any variances

Effectiveness of Interviews
Most appropriate for high-turnover jobs Most effective when they are structured and measure job-related factors Most valuable when they are used to assess level of motivation and interpersonal skills