HUMAN RESOURCE

MANAGEMENT
What is Human Resource
Management?
 HRM
Human resource management (HRM) is the strategic and
coherent approach to the management of an organization's
most valued assets - the people working there who
individually and collectively contribute to the achievement of
the objectives of the business. The terms "human resource
management" and "human resources" (HR) have largely
replaced the term "personnel management" as a description
of the processes involved in managing people in
organizations. In simple sense, HRM means employing
people, developing their resources, utilizing, maintaining
and compensating their services in tune with the job and
organizational requirement.
 HRM
Features
Its features include:
• Organizational management
• Personnel administration
• Manpower management
• Industrial management
 HRM
• But these traditional expressions are becoming less
common for the theoretical discipline. Sometimes even
employee and industrial relations are confusingly listed
as synonyms, although these normally refer to the
relationship between management and workers and the
behavior of workers in companies.
• The theoretical discipline is based primarily on the
assumption that employees are individuals with varying
goals and needs, and as such should not be thought of
as basic business resources, such as trucks and filing
cabinets. The field takes a positive view of workers,
assuming that virtually all wish to contribute to the
enterprise productively, and that the main obstacles to
their endeavors are lack of knowledge, insufficient
training, and failures of process.
 HRM
• HRM is seen by practitioners in the field as a more
innovative view of workplace management than the
traditional approach. Its techniques force the
managers of an enterprise to express their goals with
specificity so that they can be understood and
undertaken by the workforce, and to provide the
resources needed for them to successfully
accomplish their assignments. As such, HRM
techniques, when properly practiced, are expressive
of the goals and operating practices of the overall
enterprise. HRM is also seen by many to have a key
role in risk reduction within organizations.
 HRM (Definitions)
• Synonyms such as personnel management are often used in a
more restricted sense to describe activities that are necessary in
the recruiting of a workforce, providing its members with payroll
and benefits, and administrating their work-life needs. So if we
move to actual definitions,
• Torrington and Hall (1987) define personnel management as
being:
“a series of activities which: first enable working people and their
employing organisations to agree about the objectives and nature
of their working relationship and, secondly, ensures that the
agreement is fulfilled“.
• While Miller (1987) suggests that HRM relates to:
".......those decisions and actions which concern the management
of employees at all levels in the business and which are related
to the implementation of strategies directed towards creating and
sustaining competitive advantage“.
 HRM (Academic Theory)
Academic theory
• The goal of human resource management is to help an
organization to meet strategic goals by attracting, and
maintaining employees and also to manage them
effectively. The key word is "fit", i.e. a HRM approach
seeks to ensure a fit between the management of an
organization's employees, and the overall strategic
direction of the company (Miller, 1989).
• The basic premise of the academic theory of HRM is that
humans are not machines, therefore we need to have an
interdisciplinary examination of people in the workplace.
Fields such as psychology, industrial engineering,
industrial, Legal/Paralegal Studies and organizational
psychology, industrial relations, sociology, and critical
theories: postmodernism, post-structuralism play a major
role. Many colleges and universities offer bachelor and
master degrees in Human Resources Management.
 HRM (Academic Theory)
One widely used scheme to describe the role of HRM,
developed by Dave Ulrich defines 4 fields for the HRM
function:
• Strategic business partner
• Change management
• Employee champion
• Administration
However, many HR functions these days struggle to get
beyond the roles of administration and employee
champion, and are seen rather as reactive than
strategically proactive partners for the top management.
In addition, HR organizations also have the difficulty in
proving how their activities and processes add value to
the company. Only in the recent years HR scholars and
HR professionals are focusing to develop models that
can measure if HR adds value.
 HRM (Business Practice)
Business practice
Human resources management comprises several
processes. Together they are supposed to achieve the
above mentioned goal. These processes can be
performed in an HR department, but some tasks can
also be outsourced or performed by line-managers or
other departments. When effectively integrated they
provide significant economic benefit to the company.
• Workforce planning
• Recruitment (sometimes separated into attraction and
selection)
• Induction, Orientation and Onboarding
• Skills management
• Training and development
• Personnel administration
• Compensation in wage or salary
• Time management
• Travel management (sometimes assigned to accounting rather
than HRM)
• Payroll (sometimes assigned to accounting rather than HRM)
• Employee benefits administration
• Personnel cost planning
• Performance appraisal
 HRM-Environment
Factors
EXTERNAL
– POLITICAL
– LEGAL
– BUSINESS ENVIRONMENT –
• GLOBALISATION
• MERGERS & ACQUISITIONS
• DOWNSIZING /RIGHTSIZING
– NATIONAL ECONOMY
– DEMOGRAPHIC
• Diverse workforce
• Knowledge workforce / intellectual capital
• More Women in workforce
• Changing family structure
• Contingent workforce
• TECHNOLOGICAL
– Occupational Shift (manufacturing
….. services)
– managing a virtual workforce
– training & retraining employees to
manage obsolescence.
– providing work life balance
– Need based technology – not fads
• Internal factors
– Unions
– Strategy, Leadership
– Organizational Culture
– Professional Bodies
 The External Influences
The External Influences
• The HRM activities don't exist in isolation. Rather, they
are highly affected by what is occurring outside the
organization. It is important to recognize environmental
influences because any activity undertaken in each of
the HRM processes is directly, or indirectly, affected by
these external elements. For example, lets say that
when a company downsizes its workforce, does it layoff
workers by seniority? If so, are an inordinate number of
minority employees affected. Although any attempt to
identify specific influences may prove insufficient, one
can categorize them into four general areas - the
dynamic environment, governmental legislation, labor
unions and current management practice.
 The Dynamic Environment of HRM
It's been stated that the only thing that remains constant
during our lifetimes is change (and paying taxes!). We
must, therefore, prepare ourselves for events that have a
significant effect on our lives. HRM is no different. Many
events help shape our field. Some of the more obvious
ones include-
• globalization,
• work-force diversity,
• changing skill requirements,
• corporate downsizing,
• total quality management,
• reengineering work processes,
• decentralized work sites, and
• employee involvement.
 The Dynamic Environment of HRM
• GLOBALIZATION Globalization reflects the
worldwide operations of many businesses today.
One is no longer bound by continents or societal
cultures.
• WORK FORCE DIVERSITY includes the varied
backgrounds of employees that are present in
the companies today. Homogeneity of
employees, and their needs, no longer exist. The
work today is more complex, requiring
employees with sophisticated skills. Without
them, many employees will lack the basic
abilities to successfully perform in tomorrow's
organizations.
 The Dynamic Environment of HRM
• Corporate downsizing, total quality
management, and reengineering all relate to one
another. As the world changed, U.S. companies had to
compete harder to maintain their leading industrial status.
This meant doing things differently. In an effort to become
more productive, organizations downsized to create greater
efficiency by eliminating certain jobs. Of the jobs and work
processes remaining, total quality management (TQM) looks
at ways of improving job effectiveness. By continuously
improving on methods, techniques, processes, and the like,
companies made constant efforts to better what they produce.
But what if what they produce, even if it's better, still doesn't
satisfy the customer? In those cases, reengineering is
necessary. Whereas TQM looks at new and improved ways of
producing goods and services, reengineering looks at starting
the processes over again from scratch. That is, instead of
improving on an existing product, the organization would
analyze what should be done and how they should do it.
Searching for answers would not be constrained by current
business practices.
 The Dynamic Environment of HRM

• Decentralized work sites are quickly becoming part

of many organizations. With the technologies that are
available (personal computers, fax machines, modems,
etc.), work that was once done on the company
premises may now be more cost-effectively handled at
the employee's home. Lastly,
• Employee involvement looks at how employees' work
lives are changing. Involved employees now have more
control over their jobs. Certain activities, like goal setting,
were once the sole responsibility of managers. With
employee involvement, such an action today permits
participation.
Governmental Legislation
• Many employees today wishing to take several
weeks of unpaid leave to be with their newborn
children, and return to their previous job without
any loss of seniority, have an easier time making
the request. Although some employers may see
such an application as negatively affecting the
workflow, government legislation has given
employees the right to take this leave. Laws
supporting this and other employer actions are
important to the HRM process.
 Legal Compliances
• Shops & Establishments Registration & Compliance
• Registration &Compliance under the Factories Act
• Registration & Compliance under Provident Fund Act
• Registration and Compliance under the ESI Act
• Compliance under Minimum Wages Act
• Compliance under the Gratuity Act
• Compliance under the Payment of Bonus Act

21
HRM in a Changing Environment

I. Objectives
A. Competitive
advantage.
B. Changing trends.
C. Importance of
measurement.
II. Overview
A. Functions of HRM

B. HRM is about the people

who perform its activities.
 II. Overview cont...
C. Most effective HRM
programs
1. Not typical.
2. HR is a major
contributor.
 II. Overview cont...

D. Status of HRM is
improving.
1. More Professional
2. Bigger budgets
3. Senior
management
 III. HRM Trends
A. Trend 1: productivity
B. Trend 2: flexibility
C. Trend 3: international
D. Trend 4: litigation
E. Trend 5: workforce.
IV. HRM Measurement

A. The value of HRM

functions.
B. measurement can
reduce cost.
C. which HRM practices
work.
 “Management by Measurement”
System
• “Management by measurement” system—
ensuring all functional business units subscribe
to guidelines for sound, strategic measurement
– criteria to measure
• performance (e.g., individual, team, unit)
• quantity, quality, timeliness, cost-effectiveness, effects on
others
• productivity
• customer satisfaction
• absenteeism
• turnover/retention/tenure/intentions to stay/leave
• employee theft
 “Management by
Measurement” System
• criteria to measure (continued)
• violence in the workplace
• job stress (e.g., role conflict, ambiguity)
• job satisfaction/motivation/attitudes/commitment
• creativity
• perceived fairness (procedural, interactional)
• error rates
• accidents, health-related variables (worker stress,
injuries)
• organizational citizenship behavior
HRM Functions
 Handlin Retaini Recruitment Process
g ng
proble good
ms staff

Termination of employement
The Human Resource System
 The Changing Face of HR
HR Transaction and Administration functions are being enabled
through leading edge e-HR solutions
Today Future
% Time, Effort,
Cost
Align HR activities and programmes
5% with the strategic direction and 20%
Strategy business needs of the organisation
Strategy
Develop and deliver
Performance 40%
25% programmes that enhance the
Enhancement organisation’s ability to
Performance
attract, develop and retain
superior performers Enhancement

30% Transactions
Handle employees
transactions and Transactions 20%
enquiries
Administration
40% Administration Manage vendors, suppliers, 20%
budgets, and HR systems

Source: Hay/McBer & Company, presented by Lyle M. Spencer,Jr.,PhD

32
HRIS, INTERNET, Enhanced distribution
INTRANETS & of HR policy,
EXTRANETS news, information

Better internal Internet

communication Widespread recruitment
electronic
On-line training systems Multi-site
& development collaborative work
teams, electronically
linked

Maintenance
of HR records Performance appraisal,
including 360O feedback
33
Human Resource Management in
Tourism
• Considered to be the most important aspect of
management

• Attitudes and abilities of staff have a crucial

impact on the visitors experience

• Labour costs are likely to be the largest single

items on the attractions budget
Problems of HRM at visitor attractions
Tourism industry suffers from bad reputation in HRM

• High turnover of staff

• Seasonality of demand
• Poor status of jobs
• Lack of career structures
• Unusually demanding jobs
• lack of management expertise
• Lack of widely recognized qualification
and training schemes
Problems of HRM at visitor attractions cont.

Problems of public sector attractions are often in direct

contrast to the problems mentioned before

• Low turnover of staff

• Inflexible working practices
• Fixed-wage rages
• Standardized recruitment and disciplinary procedures
Benefits for organisation of good HRM
• Improves performance of staff
• Provides a competitive advantage to the organization
• Contented staff provide better service to customers,
encouraging repeat visitation
• Reputation for good staff will lead to increased first-
time visitation
• HRM plays a part in determining the success or
failure of any organisation.
HUMAN RESOURCE
PLANNING
EFFECTIVE

U PRODUCTIVITY
T
I
L
I
Z
A
T GROWTH
I
O
N

OF
ECONOMIC
HUMAN DEVELOPMENT
CAPABILITY
 Human Resource Planning

• Effective planning of HR is essential to

match the requirements of the job with the
individual
• Right resources at the right time to meet
the future organizational needs is critical
• A comprehensive and meticulous HRP
process can ensure sustained growth of an
organization
 Human Resource Planning
• Diversification or expansion, employee promotion
or changes in human resource necessitates
effective HRP
• Organizational plans, goals, and strategies also
needs effective HRP
• Success in business is dependent on being able
to react quickly to opportunities
• Organizations must have accurate, rapid access
to information about both supply of and demand
for HR
 Organizational Life-Cycle Stages
LIFE-CYCLE
HR Activities
TRAINING AND LABOR /
STAGE STAFFING COMPENSATION DEVELOPMENT EMPLOYEE
RELATIONS

Introduction Attract best Meet or exceed Define future skill Set basic
technical and labor market rates requirements and employee-
begin establishing relations
professional to attract needed philosophy of
talent talent career ladders
organization

Growth Recruit adequate Meet external Mold effective Maintain

numbers and mix market but management labour peace,
of qualified team through employee
workers. Plan
consider internal
management equity effects. management motivation &
succession. Establish formal development and morale
Manage rapid compensation organizational
internal labour structures development
market
movements
 Organizational Life-Cycle Stages and
LIFE-CYCLE
HR Activities
TRAINING AND LABOR /
STAGE STAFFING COMPENSATION DEVELOPMENT EMPLOYEE
RELATIONS

Maturity Encourage sufficient

turnover to minimize
Control Maintain Control labour
layoffs and provide compensatio flexibility and costs &
new openings. maintain labour
Encourage mobility as n costs skills of an peace. Improve
reorganizations shift
jobs around
aging productivity
workforce

Decline Plan and Implement Implement Improve

implement productivity and
workforce
tighter cost retraining and achieve flexibility
reductions and control career in work rules.
reallocations, consulting Negotiate job
downsizing and security and
outplacement may services employment-
occur during this adjustment
stage policies
 Human Resource Planning
• HRP is both a process and a set of plans
– a process by which management of an
organization determines its future HR
requirements
– a plan to fill the future HR requirements from
internal and external sources
• Assessment of human resource
requirements in advance vis a vis
organizational objectives, production
schedules, and demand fluctuations
 Human Resource Planning
• ‘The process of determining human resource
requirements and the means of meeting those
requirements in order to carry out the integrated
plan of the organization’ – Coleman
• Relates to
– establishing job specifications
– determining the number of personnel
required
– developing the sources of human resource
 Internal vs. External
• System of matching the available
resources, either externally or internally,
with the expected organizational demand
over a period of time
• Internal Resources
– employees who are already in the
organization
• External Resources
– personnel who have to be recruited
from outside
 Objectives of HRP:-
• Forecasting HR Requirements
– maintain the required quantity & quality of HR
– turnover/attrition rates
• Effective Management of Change
– coping with changes in market conditions, technology,
govt. regulations et al
• Realizing Organizational Goals
– expansion, diversification
• Promoting Employees
– database on skill repertoire
• Effective Utilization of HR
– surplus/unutilized employees vis a vis downsizing
 Emergence of HRP
• Early HRP was top down, short range
• 1970s: “manpower planning”
• 1990s: aligning HR strategy with
– corporate strategy
– attention to individual career
planning
 Effective HRP
• An effective HRP
– closes the gap between the current
situation and a desired situation in
the context of an organization’s
strategy
– helps cope with change and achieve
organizational goals
 HR Planning Levels
• HRP is carried out at different
organizational levels to meet HR
requirements at those levels
• Flow of communication in HRP is both
ways
– Top to bottom
– Bottom to top
• The levels are
– Corporate level planning
– Intermediate level planning
– Operational level planning
 HR Planning Levels
• Corporate-level Planning
– Culture and mission of the organization
– Macro-level: changes in market conditions, technology, strategic
plan, etc
– Identification of broad policy issues; employment, welfare,
development policies
• Intermediate-level Planning
– SBU level, based on corporate-level HR Plan
– Determining recruitment, retaining, laying off
• Operational-level Planning
– Operations level plan
– Training & development, recruitment etc
• Planning Short-term Activities
– Management of day-to-day activities
– Ensure success or failure of corporate plans
– Grievance handling, etc
 Environmental Scanning
impact of strategy/goals on diff. units H
R
Involving Line Managers P
determining HR needs of departments

P
Forecasting R
quantity & quality of personnel needed
O
C
Analysis of Supply
matching current HR supply & reqmnt E
S
Plan of Action S
recruitment, selection, training, et al
 Human Assess trends in
• External labour markets
Resource • Current employees
• Future organizational plans
Planning • General economic trends

Predict demand

Forecast internal supply Forecast external supply

Compare future demand

and internal supply

Plan for dealing with predict-

ed shortfalls or overstaffing
 Situation Analysis
• Interaction of HRM and strategic planning
• The strategic plan must adapt to environmental
circumstances
• HRM is one of the mechanisms of adaptation
process
• Example: rapid technological changes can force
an organization to quickly identify and hire
employees with new skills
• Without HR plan to support the recruitment &
selection functions it would be impossible to
move fast to stay competitive
 Forecasting
• Estimating not only ‘how many’ but also
‘what kinds’ of employees will be needed
• Yields advance estimates or calculations
of the organization’s staffing
requirements
• Apart from quantitative tools, a great
deal of human judgement is involved
• Incredibly difficult tasks, especially in
rapidly changing environment
 Forecasting Techniques
• Qualitative Techniques
– Expert estimate
– Nominal Group Technique (NGT)
– Delphi Technique
• Quantitative Techniques
– Regression Analysis
– Productivity Ratios
– Personnel Ratios
– Time Series Analysis
 The Nominal Group
A small group of 4-5 peopleTechnique
gathers around a table. Leader
identifies judgment issue and gives participants procedural
instructions

Participants write down all ideas that occur to them, keeping

their lists private at this point. Creativity is encouraged during
this phase

Leader asks each participant to present ideas and writes them

on a blackboard or flipchart, continuing until all ideas have been
recorded

Participants discuss each other’s ideas, clarifying, expanding,

and evaluating them as a group

Participants rank ideas privately in their own personal order and

preference

The idea that ranks highest among the participants is adopted

as the group’s judgment
 The Delphi Technique
Leader identifies judgment issues and develops questionnaire

Prospective participants are identified and asked to cooperate

Leaders send questionnaire to willing participants, who record

their judgments and recommendations and return the
questionnaire

Leaders compiles summaries and reproduces participants’

responses

Leader sends the compiled list of judgment to all participants

Participants comment on each other’s ideas and propose a final

judgment

Leader looks
for consensus

Leader accepts consensus judgment as group’s choice

 Statistical Techniques
Name Description
Regression analysis Past levels of various work load indicators, such as sales,
production levels, are examined for statistical relationships
with staffing levels. Where sufficiently strong relationships
are found, a regression (or multiple regression) model is
derived. Forecasted levels of the retained indicator(s) are
entered into the resulting model and used to calculate the
associated level of human resource requirements.

Historical data are used to examine past levels of a

productivity index (P):
Productivity ratios
P = Work load / Number of People

Where constant, or systematic, relationships are found,

human resource requirements can be computed by diving
predicted work loads by P.
 Statistical Techniques
Name Description
Personnel ratios Past personnel data are examined to determine historical
relationships among the employees in various jobs or job
categories. Regression analysis or productivity ratios are
then used to project either total or key-group human
resource requirements, and personnel ratios are used to
allocated total requirements to various job categories or to
estimate for non-key groups.

Time series analysis Past staffing levels (instead of work load indicators) are
used to project future human resource requirements. Past
staffing levels are examined to isolate and cyclical
variation, long-tem terms, and random movement. Long-
term trends are then extrapolated or projected using a
moving average, exponential smoothing, or regression
technique.
 Analysing Current Supply
• “How many and what kinds of employees do I currently have in terms of the skills and training
necessary for the future?”
• Are resources available – internally or externally – to fill those needs?
• Internal
– skills inventory
– succession planning
– promotability
• External
– availability of qualified labor; surplus? shortage?
Analysing Current Supply
• The Skills Inventory: tool to assess current
supply of employees in terms of
– skills
– abilities
– experiences
– training
• If the current inventory exceeds the future
requirements and natural attrition cannot
bring down the resources to match the future
requirements?
Employee Replacement Chart
for Succession Planning
 Managing Employee
Surpluses

Source: Compliments of Dan Ward, GTE Corporation

 Managing Employee
Shortages

Source: Compliments of Dan Ward, GTE Corporation

 HRIS
• Human Resource Information System is
more than just a computerized skills
inventory
• An HRIS is an integrated approach to
– analysing
– acquiring
– storing
– controlling the flow of information
throughout an organization
 HRIS
• Highly developed HRIS systems can
increase efficiency and response time of
HRM activities
• The system might contain a programme
for tracking applicants, a skills inventory, a
career planning programme, employee
service programmes
• One of the most common uses of an
HRIS is in recruitment and tracking of
applicants
Job analysis
 Job analysis
An assessment of the kinds of skills,
knowledge, and abilities needed to
successfully perform each job in an
organization
 Job Analysis
• Job analysis is the systematic collection
and recording of information concerning:
– the purpose of a job,
– its major duties,
– the conditions under which it is performed,
– the contact with others that performance of
the job requires, and
– the knowledge, skills, and abilities needed for
performing the job effectively.

71
JOB ANALYSIS OUTCOMES

– Job description

– Job specification

– Job evaluation
 Job Analysis Components
• Job description
– A written statement of what a job holder does, how it
is done, and why it is done
• Tasks, duties and responsibilities that the job entails
• Job specification
– A statement of the minimum acceptable qualifications
that an incumbent must possess to perform a given
job successfully
• Knowledge, skills, and abilities required of the job holder
 JOB DESCRIPTION
• Focus on the job
• Written statement
– What is done
– How
– Why
• Includes
– Job content
– Environment
– Conditions of
employment
TYPICAL JOB DESCRIPTION FORMATS

• Job title
• Duties
• Distinguishing
characteristics
• Authority
• Responsibilities
 JOB DESCRIPTIONS ARE USEFUL FOR

• Recruiters
• New hires
• Performance
appraisals
• Identifying essential
job functions
 JOB SPECIFICATION
• Focus on the person
who does the job
• Identifies minimum
incumbent
qualifications
• Knowledge, skills,
education,
experience,
certification, abilities
• Personality
 JOB EVALUATION

• Establish job
comparability
– Compensation
– Relative value
• Competitive analysis
 IT TAKES GOOD JOB ANALYSIS TO
PERFORM
• THESE HR
FUNCTIONS WELL:
• Recruiting
• Selection
• Strategic human
resource planning
• Employee training
• AND….
MORE HR FUNCTIONS NEED JOB
ANALYSIS
• Employee
development
• Career development
• Performance
appraisal
• Compensation
• Safety and health
• Labor relations
The Multifaceted Nature of the Job Analysis
• A job analysis may be based on information
obtained through direct observation, interviews,
diaries or questionnaires.
• A job description is a statement of the duties,
working conditions, and other significant
requirements associated with a particular job.
• A job specification is a statement of the skills,
abilities, education and previous work
experience that are required to perform a
particular job.

82
 Methods of Job Analysis
• For existing jobs, interviews with
employees
• Interviews with supervisors
• Observation
• Combination, interviews & observation
• Structured questionnaires
• Employee journals/logbooks

83
 Job Analysis
• Unorganized data has little use.
• Only concerned with facts.
• Concerned only with the job, not the
worker.
• Not “job classification”.
• Required to determine job qualifications?
• No, but planning is the key to success.
 Tools used
• Books and Literature
– Valid information on current job analysis and
studies.
– Job analysis that are being implemented by
other successful companies.
– Past and present failures and successes.
 Tools cont..
• Flow and Organizational Charts
– Very helpful for showing past and current
information.
– Show trends and similarities.
Recruitment and Selection
 Recruitment And Selection
• Recruitment
– The process of locating, identifying, and
attracting capable applicants
• Selection process
– The process of screening job applicants to
ensure that the most appropriate candidates
are hired
 Recruitment and Selection
We have specific objectives in recruiting and
selecting:
–Identifying the right people.
–Reducing the range of differences in
performance from least effective to
most effective workforce.
–Keeping turnover to a minimum.
 Recruitment and Selection
How to achieve objectives:
• There is no magic answer.
• Start with a good solid job description.
• Do customer analysis.
• Analyze competitors’ workforce.
• Analyze our workforce.
• Take info from these steps and compile a
profile on type of person we want.
Recruitment and Selection
Developing a pool of applicants:
❶Job must be sufficiently attractive.
❷Then we go to many sources to recruit
such as:
– College placement services.
– Trade media advertising.
– Newspaper advertising.
– Employment services.
Recruitment and Selection
• Screening and final selection:
– Comparison with our preferred
employee profile.
– Interviews to assess.
– Impressions candidate makes.
– Interest in job.
– Personal characteristics.
Strategic
Recruiting
Stages
Typical Division of HR
Responsibilities
Traditional Recruiting Sources
• Internal searches
• Advertisements
• Employee referrals
• Public employment agencies
• Private employment agencies
• Campus placement
• Temporary help services
• Employee leasing and
independent contractors
Organizational Recruiting
Activities
Recruiting
Image

Recruiting Effective
Presence Recruiting

Training of
Recruiters
 Strategic Recruiting Decisions
Organizational-
Organizational-
Based
Basedvs.
vs.
Outsourcing
Outsourcing

Recruiting
Recruiting
Source
SourceChoices:
Choices:
Strategic
Strategic Regular
Regularvs.
vs.
Internal
Internalvs.
vs. Recruiting
Recruiting Flexible
FlexibleStaffing
Staffing
External
External

Recruiting
Recruitingand
and
EEO/Diversity
EEO/Diversity
Considerations
Considerations
EEO and Diversity Considerations
 Advantages and Disadvantages of
Internal and External Recruiting Sources
Internal Recruiting Methods
 Internet Recruiting Methods

Job Boards

Internet
Professional/
Recruiting
Career Web Sites
Methods

Employer Web Sites

 Internet Recruiting
• Advantages • Disadvantages
– Recruiting cost – More unqualified
savings applicants
– Recruiting time – Additional work for HR
savings staff members
– Expanded pool of – Many applicants are
applicants not seriously seeking
– Morale building for employment
current employees – Access limited or
unavailable to some
applicants
 External Recruiting
College and High Schools and
University Technical Schools
Recruiting

Media Sources External

Labor
and Job Fairs Recruiting Unions
Sources

Competitive Employment Agencies

Sources and Search Firms
What to Include in an Effective
Recruiting Ad
 Evaluating Recruiting
Evaluating Recruiting
Efforts

Evaluating Evaluating Evaluating

Recruiting Time Recruiting
Costs and Required to Quality and
Benefits Fill Openings Quantity
 Recruiting Evaluation
• General Areas for Evaluating Recruiting
– Quantity of applicants
– EEO goals met
– Quality of applicants
• Yield ratios
– A comparison of the number of applicants at one
stage of the recruiting process to the number at the
next stage.
• Selection rate
– The percentage hired from a given group of
candidates
Recruiting Evaluation Pyramid
 Selection and Placement
• Selection
– The process of choosing individuals who have
needed qualities to fill jobs in an organization.
– Organizations need qualified employees to
succeed
• “Good training will not make up for bad selection.”
• “Hire hard, manage easy.”
 HR’s Role in Selection and
Placement
• Reasons for centralizing selection
– Easier to have applicants in one place.
– Contact with outside applicants is easier.
– Managers can concentrate on operating
responsibilities rather than the selection
process.
– Selection costs are lower with no duplicated
efforts.
 Selection Methods
• Yield ratios
– A comparison of the number of applicants at one
stage of the recruiting process to the number at the
next stage
• Selection rate
– Percentage hired from a given group of candidates
• Acceptance Rate
– Percentage of rejected job offers
• Success Base Rate
– Comparing percentage rate of past applicants who
were good employees to that of current employees.
 Selection Terms
• Reliability
– The degree to which a selection device measures the
same thing consistently (stability)
• Example: an individual consistently achieves nearly identical
scores on the same exam.
• Validity
– The proven relationship between a selection device
and some relevant criterion (a measure of job
success)
• Example: superior job performance and high employment test
scores
 Selection Devices
• Written tests
– Intelligence, aptitude, ability, and interest test batteries
• Performance-simulation tests
– Selection devices that are based on actual job behaviors;
work sampling and assessment centers
• Interviews
– Effective if conducted correctly
• Realistic job preview (RJP)
– Providing positive and negative information about the job and
the company during the job interview
 The case of Protection Royale 1
• The focus is on the Financial Consultancy Division of this insurance company
• There had been very low turnover among the sales consultants whose job had been to
market the company’s insurance products to insurance brokers.
• Recruitment was by replacement:
– advertise in the trade press
– use specialist recruitment agencies
– recommendations from existing staff
– shortlist from applications
– interviews, roles plays, psychometric testing
– references
• But the job became harder as products diversified and become more complex

113
 Protection Royale…... 2

• Customers lost confidence, the company lost its

position in the marketplace
• There was a big shake-up
• The company recognised the need to have a more
focused product range and high-performing staff
who could persuade brokers that these were worth
selling on to clients.
• A new person specification emerged:
– excellent product knowledge
– influential and persuasive
– negotiation skill
114
 Protection Royale ... 3

• Furthermore, legislation introduced in 1994

required financial sales practitioners to hold
various qualifications
• Therefore there was a big reduction in
eligible people within the external labour
market.
• Existing staff were deemed either ‘suitable’,
‘unsuitable’ or ‘possible’; many left
• Line managers tried to head-hunt
replacements, but failed.
• A crisis became apparent
115
 Protection Royale ... 4

• ‘Recruitment champions’ were appointed

• Line managers and HR specialists were given
performance indicators relating to recruitment
objectives
• A new search for direct recruits and for
trainees.
• A matrix of selection methods (e.g.
Application form, testing of job knowledge/
skills/attitudes, psychometric testing,
interviews, simulations, presentations,
references) and competencies. 116
 Protection Royale... 5

• National advertising
• 7 day ‘phone-in’ interviews, followed by screening
interviews
• Assessment centre based selection
• Appointment of an induction manager
• Thorough procedural knowledge training for all those
involved in the recruitment and selection process.

117
 Recruitment & Selection flowing down
from Corporate Strategy
• Here the objective of recruitment & section would be
to recruit people who will enhance the org.’s capacity
to deliver its corporate strategy.
• E.g. for an INNOVATION corp. strategy, the company
would seek to recruit people with:
– highly innovative behaviour
– preference/ability for co-operative behaviour
– relatively high risk taking
– tolerant of uncertainty
– moderate concern for quality of output
– balanced orientation toward process and results
– longer-term focus
• For a QUALITY ENHANCEMENT or COST
REDUCTION corp. strategies, the patterns would be
different 118
 Recruitment & Selection driving
Corporate Strategy
• There is a business case for building more
DIVERSITY into organisations
– enhances creative capability
– greater flexibility in global markets
– more widely equipped to face unpredictable
challenges

119
Recruitment & Selection Flowing down
from Organisation Structure
Behaviours • Mgt competencies required in
Organic organisations
required in
• info search
managers in
• concept formation
Organic • conceptual flexibility
Organisations: • interpersonal search
• networking • managing interaction
• team building • developmental orientation
• self confidence
• information retrieval
• Proactiveness
• innovative problem • achievement orientation
solving (These may be needed by non-
managers too) 120
 Recruitment & Selection driving
Org. Structure
e.g. Recruiting people in order to help
reconfigure the organisation as delayered and
TEAM-BASED rather than tall.
• Therefore look for people:
• who are dependable
• Make recruitment a
• have interpersonal skills two-way process
• are self-motivated • Involve existing team
• have integrity members in the final
• have leadership potential selection
• are assertive
• tolerate ambiguity
• are able to cope with stress 121
Training and Development
 The Workplace Skills Strategy
 Human capital is increasingly regarded
as one of the major drivers of
productivity, economic growth and
competitive advantage. As a demand-driven
 Recognizing the importance of human approach to human resource
capital, the training manpower sets and skills development, the
out to generate: Training will build and
strengthen relationships with
• A skilled, adaptable, motivated and
resilient workforce and among workplace
partners and better engage
• A flexible, efficient labour market employers, unions to
respond to the challenges of
• A responsive strategy to meet employers workplace skills
needs for skilled workers development.
• A learned employee can retain customers
and increase business & market share
thro’ proper behavior and good public
relations
 An organization is only as good as it’s
employees.
• In order for an organization to produce professional
career minded employees an investment has to be
made.
 What type of investment must an employer
offer employees to gain this?
• An investment in training and education is a sure payoff.
 Importance of Training
Managers: Importance to overall business strategy
Labour leaders: Importance to collective bargaining
issues
50%
45% 44%

40% 37%
35%
29% 30%
30%
25% managers
25% 22%
labour
20%
15%
10% 9%
5%
5%
0%
not/slightly important important very important crucial
 Examples of Training Investments
 Industry and government in the United States
spend approximately $90 billion each year on
employee training and education.
 Average Japanese companies spends about 6%
of budget on training.
 Study of major automobile manufactures found
U. S automakers spend about 40 hours
training new employees compared to 300
hours for Japanese automakers.
 Motorola’s CEO required all divisions to spend
at least 2% of budget on training. Over next 7
years, profits increased 47% and it was
estimated that each $1.00 in training yielded
$30.00 in return.
TRAINING ACTIVITIES SHOULD BE
ALIGNED WITH OVERALL
OBJECTIVE OF THE
ORGANISATION,
WITH A MEANINGFUL EMPHASIS ON
VALUE ADDITION TO OUR
HUMAN RESOURCES.
 Factors to consider
• Training to benefit organisation
• Training to benefit employees
• Training to benefit the industry
• Provide a good return on investment?
 Investment

• To invest properly, the employer must provide training as

one of the needed tools for employees to get the job
done.
 Why Training?

• The sharing of information through training is our most

valuable tool to develop our most valuable asset…our
employees.
Once employees have proper “tools” in their
toolbox
• They will come to work on a daily basis, with enthusiasm
and the positive attitude to give a full days work for a full
days pay.
TRAININGS SHOULD AIM AT
• EMPOWERING THE EMPLOYEES
• INCREASING PRODUCTIVITY
• MAKING THE PROCESSES MORE
EFFICENT AND EFFECTIVE
so as to
ENSURE ULTIMATE
CUSTOMER SATISFACTION
IMPROVE THE OVERALL
PERFORMANCE OF THE ORGANISATION.
 Importance of Training – contd…

1. Respond to technology changes affecting

job requirements.
2. Respond to organizational restructuring.
3. Adapt to increased diversity of the
workforce.
4. Support career development.
5. Fulfill employee need for growth.
Importance of Training and Development

• Maintain skill levels

• Advance skill and knowledge to improve
– Performance (efficiency)
– Service delivery (error rate)
– Profitability (productivity, manpower)
• Integrate new technologies into work
• Establish standards for work practices
 Benefits of Training - Individuals

• Do job more efficiently – learn new

methods
• Professional approach to work, engaged
in best practice routines
• Personal satisfaction – felt valued
• Recognised qualification to add to CV
The Benefits of Training
• Gives the supervisor more time to
manage, standardized performance, less
absenteeism, less turnover, reduced
tension, consistency, lower costs, more
customers, better service
• Gives the workers confidence to do their
jobs, reduces tension, boost morale and
job satisfaction, reduces injuries and
accidents, gives them a chance to
advance.
• Gives the business a good image and
more profit.
 Benefits of Training-a summary
• Improved customer service and public relations
• Fewer complaints
• Better morale and attitudes
• Less turnover and absenteeism
• More involved and caring employees
• Proactive vs. reactive employees
• MANAGEMENT’s ONE OF THE
MOST IMPORTANT FUNCTIONS IS
TO TRAIN PEOPLE FOR THEIR
JOBS.
Then why is training often neglected?
• Urgency of need
• Training time
• Costs
• Employee turnover
• Short-term worker
• Diversity of worker
• Kinds of jobs (simple-complex)
• Not knowing exactly what you
want your people to do and how
 Attitudes to training
Individual:
• How is that related to
what I do?
• “I’m good at my job and
anyway, I have no time”
• “I suppose that’s my
weekends shot for
months!”
• “Are they trying to get rid
of me?”
Employer:
• How can I be sure the
organisation will benefit?
• Training is so expensive –
how will I know if it has been
effective?
• Will this effect the goal of
developing and implementing
standards and protocols for
the organisation?
• “If I train them, they’ll leave”
 Our front-line employees are often “good”
will ambassadors.
• Yet they are the ones who hold the most “thankless” job.
Their role and their understanding of their role is the vital
key towards their development and their ability to provide
excellent customer service.
 Importance of Training
Teaching people How to do Their
Jobs:
• There are three kinds of
training: Job Instruction,
Retraining, and Orientation.
• The big sister/ big brother
system is when a old hand
dominates a newcomer.
• When good training is absent
there is likely to be an
atmosphere of tension, crisis,
and conflict because nobody
knows what to do.
 Training Process Model

II. Developing &

I. Needs
Conducting
Assessment
Training

III. Evaluating
Training
Developing a Unit Training Program
• This is taught in several sessions.
• It should provide check points to
measure progress.
• Should include two elements:
1. Showing and telling the
employee what to do.
2. Having the employee do it (right).
• Location should be ambient.
• Training materials should be the
same as used on the job.
Who will do the Training?
• The magic apron method: people
train themselves the easiest ways to
get the job done.
• The person that is leaving trains:
teaches shortcuts and ways of
breaking the rules.
• Big sister, big brother method:
passes on bad habits and may resent
new person as a competitor.
• The logical person to train new
workers is The employer!
 How employees learn the best:
• When they are actively involved in the
learning process-(to do this choose a
appropriate teaching method).
• Training is relevant and practical.
• Training material is organized and
presented in chunks.
• Training is in an informal, quiet, and
comfortable setting.
• When they have a good trainer.
• When they receive feedback on
performance.
• When they are rewarded.
How do Employees Learn the
Best?
• Learning is the
acquisition of skills,
knowledge, or attitudes.
• The adult learning
theory is a field of
research that examines
how adults learn. A
number of the following
tips come from the adult
leaning theory.
How do Employees Learn the Best?

“Tell me and I forget, teach

me and I remember, involve
me and I learn”

- Benjamin Franklin
 Kinds of training
• Informal – on the job, “phone a friend”
• Formal – “attendance” or “completion”
• Formal – certified, vindicated
– Evidence of Return on Investment
– Must be planned
– Allows for customisation, relates to workplace
standards
Job Instruction Training (JIT)
• Also called on the job training.
• Consists of 4 steps:
1. Prepare the learner
2. Demonstrate the task
3. Have the worker do the
task
4. Follow through: put the
worker on the job, correcting
and supporting as nessicary.
 Classroom Training Skills
• Be aware of appropriate body
language and speech.
• Watch how you talk to
employees. Covey respect and
appreciation.
• Handle problem behaviors in an
effective manner.
• Avoid time wasters.
• Facilitate employee participation
and discussion.
• Use visual aids to avoid
constantly referring to notes.
 DELIVERING
DELIVERING CUSTOMISED
CUSTOMISED TRAINING
TRAINING
SUCCESSFULLY
SUCCESSFULLY

MAKE IT FUN – RULES FOR LEARNING:

1. ASK QUESTIONS
 The only dumb questions are the ones you don’t
ask!

2. MAKE MISTAKES
 Training is a great place to make mistakes. The you
won’t make as many at work in the live environment!
 DELIVERING
DELIVERING CUSTOMISED
CUSTOMISED TRAINING
TRAINING
SUCCESSFULLY
SUCCESSFULLY

MAKE IT FUN – RULES FOR LEARNING Continued…

3. HAVE FUN
 This rule is very important

4. CHEAT
 Watch how other people do things or yell for help
 3. Types of Training
Types of Training

1. Skills Training.
5. Creativity
2. Retraining. Training.
3. Cross- 6. Literacy Training.
Functional.
7. Diversity
4. Team Training. Training.
8. Customer
Service.
1. SKILLS TRAINING

Focus on job knowledge

and skill for:
• Instructing new hires.
• Overcoming performance
deficits of the workforce.
 2. Retraining

Maintaining worker
knowledge and skill as job
requirements change due
to:
• Technological innovation
• Organizational
restructuring
3. Cross-Functional Training

Training employees to
perform a wider variety
of tasks in order to gain:
• Flexibility in work
scheduling.
• Improved coordination.
 4. Team Training

Training self-directed
teams with regard to:
• Management skills.
• Coordination skills.
• Cross-functional skills.
 5. Creativity Training

Using innovative
learning
techniques to
enhance employee
ability to spawn
new ideas and
new approaches.
 6. Literacy Training

Improving basic skills of

the workforce such as
mathematics, reading,
writing, and effective
employee behaviors
such as punctuality,
responsibility,
cooperation,etc.
 7. Diversity Training

Instituting a variety of
programs to instill
awareness, tolerance,
respect, and acceptance
of persons of different
race, gender, etc. and
different backgrounds.
8. Customer Service Training
Training to improve
communication, better
response to customer
needs, and ways to
enhance customer
satisfaction.
 1. Classroom Instruction
PROS CONS
• Efficient dissemination of • Learner does not
large volume of control pace or content
information.
• Does not consider
• Effective in explaining individual differences.
concepts, theories, and
principles.
• Limited practice.
• Limited feedback.
• Provides opportunity for
discussion. • Limited transfer to job.
 2. Video and Film
PROS CONS
• Provides realism.
• Does not consider
• Adds interest. individual differences.
• Allows scheduling • Limited practice.
flexibility. • Limited feedback.
• Adds additional cost.
• Allows exposure to
hazardous events. due to:
* Script writers
• Allows distribution
* Production specialists
to multiple sites. * Camera crews
 3. Computer Assisted Instruction
PROS
• Efficient instruction.
• Considers individual
differences.
• Allows scheduling flexibility.
• Allows active practice for
some tasks.
• Allows learner control.
• Provides immediate
feedback to tasks.
CONS
• Limited in presenting theories
and principles.
• Limited discussion.
• Transfer depends on
particular job. (Good for
computer work.)
• High development cost (40-60
hours per hour of instruction
at approx Rs. 10,000 per
hour.)
 5. Simulation
PROS CONS
• Provides realism. • Cannot cover all job
• Allows active practice. aspects.
• Provides immediate • Limited number of
feedback. trainees.
• Allows exposure to • Can be very expensive
hazardous events. (for example, “aircraft
• High transfer to job. simulators” and “virtual
• No job interference. reality” simulators).
• Lowers trainee stress.
 6. On-The-Job Training
PROS CONS
• Provides realism. • Disruptions to
operations.
• Allows active • May damage
practice. equipment.
• Provides • Inconsistent across
immediate departments.
feedback. • Inadequate focus on
underlying principles.
• High motivation.
• Lack of systematic
• High transfer to feedback.
job. • Transfer of improper
• Lowers training procedures.
cost. • Trainee stress.
Overcoming Obstacles to
Learning
• Reduce fear with a positive approach
(convey confidence in the worker).
• Increase motivation: emphasize
whatever is of value to the learner,
make the program form a series of
small successes, build in incentives
and rewards.
• Limited abilities: adjust teaching to
learners level.
• Laziness, indifference, resistance: May
mean a problem worker.
Overcoming Obstacles to
Learning
• Teaching not adapted to
learners: Deal with people as
they are (teach people not
tasks), keep it simple, involve all
the senses.
• Poor training program: revise to
include objectives.
• Poor instructor: The trainer
needs to know the job, be a good
communicator + leader,
sensitive, patient, helpful, etc.
 Types of Evaluation Designs

Train Measure

Post Test Only. Cannot tell if

there is a change in knowledge
or skill.
Measure Train Measure

Pre-test with Post-test. Detects a

change, but cannot tell if training
was responsible.
 Types of Evaluation Designs

Measure Train Measure

Measure No
Measure
Train

Scientific Method: Training Group

and Control Group.
Compare performance of Training
Group and Control Group after
training. If Training Group has higher