You are on page 1of 14

HRM 1.

an art and science of acquiring, motivating, maintaining and developing people in their jobs in light of their professional & technical knowledge, skills, potentialities, needs and values. 2. It is a methood of determining future human resource. 3. It is a strategy for requisition, utilization, improvement & retention.

Scope of HRM *Personnel Aspect - concerned w/ manpower, planning, recruitment, selection and placement *welfare aspect - working conditions & amenities *Industrial Relation union - mgt relation, joint consultation, collective bargaining, grievance

Roles of the HR Mgr. *information disseminator *spokesperson *role model *problem solver *decision maker *motivator *change agent *strategic planner *resource allocator *career counselor

HRM process - refers to activities necessar for staffing the org.

HRM Process (PlaReSeOrTraPerComCareer) *HR planning *Recruitment / Decruitment *selection / placement *orientation *training *performance mgt *compensation & benefits *career develpment

High performing work practices *self-directed work teams *job rotation *high levels of skills training *TQM procedures *encouragement of innovative & creative behavior *extensive employee involvement & training *contingent pa based on performances *comprehensive employee recruitment & selection procedures *cross-functional integration *significant amount of info sharing

Comparisons of PM and HRM Factors PM HRM

1. People

Mostly rank and file

All people working for and w/n the org Full-time, flextime, part-time Formal & informal setting Varied & complex: job org & info, acquisition

2. hours of work of work 4. types of service

Full-time Formal setting Few & simple: personnel information, recruitment & screening social activities Admin officer / ceo Lawyer, records clerk

5. Dept./ OIC 6. dept. staff

Separate hrd Behavioral scientist, social science researcher Higher level to gen. mgr / ceo Accomplishment of org. & individual goals Developmental Objective & scientific, total systems approach Human w/ emphasis on respect for individual & societys wellbeing People: an investment & a resource

7. Level of Reporting 8. goals

Lower level to line mgrs Accomplishments of org. goals being emphasized Mechanistic Personally subjective, compartmentalized approach Traditional work orientation People: an expense & factor of production

9. Technology 10. Strategies

11. Philosophy

Importance of HRM 1) Necessary part of the organizing function of management > selecting, training, and evaluating the work force 2.) as an important strategic tool > HRM helps establish an organization's sustainable competitive advantage 3.) Adds value to the firm > high performance work practices lead to both high individual and high organizational performance Impact of HRM HUMAN Type of Human Capital

>Training >Expertise >Judgment >Intelligence >Relationships >Insights Organization >Quality >Profitability >consumer satisfaction Behavior of human capital >motivation >effort

PLANNING The process of anticipating the manpower needs of the organization in light of its goals and putting them in formal written form for implementation. it is looking beyond the actual organization situation by translating its plans and objectives into human resources terms Getting the right number of qualified people into the right job at the right time How organizations assess the future supply of and demand for human resources, it provides mechanisms to eliminate any gaps that may exist between supply and demand, it determines the numbers and types of employees to be recruited into the organization or phased out of it. IMPORTANCE A void should never occur in any position at any level at any time to avoid interruption of work activities as this will hamper operations and will result to poor, inefficient service. There is a significant lead time that normally exists between the recognition of the need to fill a job and securing a qualified person to fill that need. It is usually not possible to go out and find an appropriate person overnight. STEPS in HR Planning 1. Strategic Planning -forecasting demand for human resources 2. Analysis of the Supply of Human Resources 3. Development of Action Plans RECRUITING -process of developing a pool of qualified applicants who are interested in working for the organization and from which the organization might reasonably select the best individual to hire for employment Organization and Individual Goals in Recruiting Organizational Goals * attract a pool of qualified applicants

*keep pool at a manageable size * provide realistic job previews Individual Goals *meet work-related goals *meet personal goals *address personal needs SOURCES FOR RECRUITING 1. Internal Recruiting is the process of looking inside the organization for existing qualified employees who might be promoted to higher-level positions 2. External Recruiting is the process of looking to sources outside the organization for prospective employees ADVANTAGES and DISADVANTAGES of Internal and External Recruiting Advantages Disadvantages Internal Recruiting Increase motivation May foster stagnation Sustain knowledge and culture May cause a ripple effect External Recruiting Brings in new ideas May hurt motivation Avoids the ripple effect Costs more METHODS OF RECRUTING Methods for Internal Recruiting 1. Job Posting 2. Supervisory Recommendations 3. Union Halls Methods for External Recruiting Sources for External Applicants 1. General Labor Pool 2. Referral 3. Direct Applicants Techniques for External Recruiting 1. Word-of-mouth recruiting 2. Advertisements 3. Public Employment Agencies 4. Private Employment Agencies 5. Executive Search Firms 6. College Placement Offices 7. Electronic Recruiting ALTERNATIVES TO RECRUITING 1. Overtime is an alternative to recruiting in which current employees are asked to work extra hours 2. Temporary Workers are used as an alternative to recruitment; they join the organization to work for a specific period of time, rather than with the expectation of permanent of continued employment 3. Employee Leasing - the organization plays a fee to a leasing company that provides a pool of employees to the leasing firm

4. Part-time workers are those individuals who routinely expect to work less than forty hours a week DECRUITMENT Decruitment Options Firing - permanently involuntary termination Layoffs - temporary involuntary termination Attrition - not filling openings Transfers - moving employees to job openings Reduced work hours - working for fewer hours Early Retirement - providing incentives for people to retire before normal retirement Job Sharing - having employees share one full-time job The Selection Process ERRORS Two basic Types: False positives are applicants who are predicted to be successful and are hired but who ultimately fail. False negatives are applicants who are predicted to fail and are not hired, but if they had been hired, they would have been successful. Responsibilities for Selection Selecting new employees are jointly shared by human resources managers and operating managers Human Resources Managers -design selection systems -gather basic preliminary selection data Operating Managers -conduct most of the interviews with applicants -make decisions about the relative likelihood of a given applicant fits in the company In small organizations, responsibilities for selection may fall on a single individual, usually those who are the owner / manager of the organization. Basic Selection Criteria 1. Education and Experience 2. Skills and Abilities 3. Personal Characteristics 4. Hiring for "FIT" Employee Health Problems *Alcoholism and Substance Abuse *The Problem of Job Stress and Burnout *Asbestos Exposure at work Match People to jobs Use goals. Ensure goals are perceived as attainable - managers must be sure that employees feel confident that increased efforts can lead to achieving performance goals. Individualize rewards - employees have different needs, what acts as a reinforcer for one may not for another

Link rewards to performance- managers need to make rewards contingent on performance. Rewarding factors other than performance will only reinforce those other factors. Important rewards such as pay increases and promotions should be given for the attainment of specific goals. Managers should look for ways to increase the visibility of rewards, making them potentially more motivating. Check the system for equity - employees should perceive that rewards or outcomes are equal to the the inputs. On a simple level, experience, ability, effort and other inputs should explain differences in pay, responsiblity and other outcomes. Don't ignore money - it is a major reason why people work. Allocation of performance - bse wage increases, piecework bonuses and other pay incentives are important in determining employee motivation. Get to know employees well and identify their need patterns. This should not be time consuming because every manager and supervisor usually has direct responsibility for only a limited number of people. Set goals for employees and follow the principles of goal setting. Develop a reliable performance appraisal system and give feedback to employees on their strengths and weaknesses periodically. Match the individuals to the jobs in terms of abilities and traits. Let them know what is expected of them in terms of performance and final output. Get support to get the job done - training, help, understanding and inculcating a sense of competence in employees. Be fair, objective and act as a role model for the employees so that they have an idea of what their behaviors should be like. Three Types of Discipline A. Preventive Discipline - based on criticims and reminder B. Positive C. Progressive - a process that provides successively more severe punishment for each occurrence of negative behavior. Steps for Progressive Discipline 1. Verbal Warning 2. Written Warning 3. Suspension 4. Dismissal Responsibility for Discipline 1. The Supervisor - most understand the principles, rules and regulations necessary to good conduct - must know his people as individuals and treat them fairly and impartially 2. The Human Resource / Personnel Department - traints supervisors and managers in manners related to disciplinary action 3. Labor Union - potent arm in implementing discipline; advisable to give union officers advance motive of the corrective action contemplated for an employee who is covered by a labor agreement 4. Top Management - must give due support to the human resource disciplinary system 5. The Workers - can discipline one another by reminding them of the rules to be followed in order to achieve the organizational objectives

Career Management -An organized approach to match employee goals with the business needs of the agency in support of workforce development initiatives. -It involves being aware of one's personal goals and values, applying new knowledge, taking advantage of opportunities and taking risks. Purposes: *To enhance each employee's current job performance *To enable individuals to take advantage of future job opportunities *To fulfill agency's goals for a dynamic and effective workforce Who are responsible for it? A. Managers are responsible for linking the organizational needs to employee career goals. They can assist employees in the career planning process. B. HR is responsible for designing career paths and programs. C. Each employee is responsible for planning and managing his/her professional career. TIPS on HR PLANNING 1. Strategically plan your career goals. 2. Create your future work success by designing and making action plans to help you achieve your goals. 3. Explore your interests and abilities. Steps to Career Planning 1. Conduct self-assessment 2. Explore career opportunities that interest you 3. Make decisions and set goals. 4. Create an action plan. 5. Manage your career. Training and Development *They represent a fundamental investment in the employees who work for the organization and the overall goal is to improve their ability to make contributions to the firm's effectiveness. Employee Training *Is a planned attempt by an organization to facilitate employee learning job-related knowledge, skills and behaviors. It usually involves teaching operational or technical employees how to do their jobs more effectively and more efficiently. Development *Refers to teaching managers and professionals the skill needed for both present and future jobs. It is generally aimed at helping managers better understand and solve problems, make decisions and capitialize on opportunities. Other management development programs may help managers better understand how to motivate employees. Stages of Training Design *An effective training program actually teaches what it is designed to develop. It enhances skills and and behaviors that will help the organization in achieving its goals. A. Assess Needs for Training

Needs Assessment is the process of evaluating the organization, the empoyees and the tasks to determine what kinds of training are necessary. It answers the 3 broad areas: 1. Organizational Analysis - a process for determining the appropriateness of training by evaluating the characteristics of the organization. 2. Person Analysis - a process for determining individual's needs and readiness for training 3. Task Analysis - the process of identifying and analyzing task to be trained for B. Ensure Readiness for Training Employee Readiness Characterisitcs *Ability to learn the subject matter *Favorable attitudes toward the training *Motivation to learn C. Planning the Training Program 1. Establish Objectives 2. Decision Making *Who will provide the training? *What topics will be covered? *What training methods to use? *How to evaluate the training? Implementing the Training Program Training sessions should present material using familiar concepts, terms and examples. Along with phhysical elements, the context should include emotional elements. Role-play interaction between the trainees adds emotional realism and further enhances learning. Trainers should provide ways to: *Actively involve the trainees *Have them practice repeatedly *Complete tasks within the appropriate time in light of the learning objectives Training sessions should offer feedback. Effective feedback focuses on specific behaviors and delivered as soon as possible after the trainees praoctice demonstration of their learning. E. Evaluate results of training Evaluation of trianing should look for transfer of trianing- on-the-job use of knowledge, skills and behaviors learned in training. Economic measures are an important way to evaluate success. Business that invest in training want to achieve a high return on investment - the monetary benefits of the investment compared to the amount invested. Measures of Training Success Depending on the objectives of training program, the evaluation can use on or more of the measure given below: *Trainee Satisfaction *Transfer of Learning *New Skills / Knowledge *Performance Improvements *Return on Investment Training Methods Trainees receive information provided by instructors or via computers or other media. a. Presentation Methods b. Hands-on Methods

Actively involve the trainees in learning by tring out the behaviors beign taught. Is appropriate for teaching specific skills and helping trainees understand how skills and behaviors apply to their jobs. c. Group Building Methods Help trainees share ideas and experiences, buidl group and team identity, understand how interpersonal relationship work and get to know strenghts and weaknesses and those of their co-workers. 1, Classroom Instruction 2. Audio visual training 3. Computer-based training 4. Electronic performance support system 5. E-learning 6. On the Job Training - Apprenticeship / Internship 7. Business Games and Case Studies 8. Behavior Modeling 9. Experiential programs 10. Team training Separation or Termination *It is the act of parting or detaching from the organization or company *to terminate the employee is usually the last resort of the employers 4 reasons why separation takes place: *Lack of qualification or very poor performance of the employee *Physical or mental inability of the employee *Breach of discipline by the employee *Business necessity of the employer (ex. redundancy) Notice Periods * The employer must give the employee a few days advance notice or payment in lieu of notice. * Payment in lieu of notice (monetary payment which would be the same amount of pay for that period of time, rather than giving that period of time in notice) Restrictions on the ability to terminate employment *during a period of leave for medical treatment *by reason of the employee's nationality, creed, social status or sex *female employee because of marriage, pregnancy, childbirth or requesting maternity leave *requesting or taking childcare leave Kinds of separation: 1. Voluntary *Resignation (employee intends to resign voluntarily from his / her position) *Retirement (an employee decides to stop employment completely) 2. Involuntary *Retrenchment (reduction of employees to cut down costs because of losses in operation of a business) *Firing (termination of employment by an employer against the will of the worker) A resignation is the voluntary act of employees who are compelled by personal reasons to disassociate themselves from their employment.

- It is imposed as a penalty for an offense. The key is that resignation must be a "voluntary act," and that the employee must have knowingly and voluntarily separated himself from his employment for his own personal reasons. But it does not cover cases where the employee is forced to resign with the use of threats, intimidation, coercion or manipulation, or where resignation Reasons for Resigning from a Job: 1. Dissatisfaction from a position or company or the whole 2. Personal Reasons 3. Salary / benefits 4. Location 5. Better Prospects * Better Prospects -Now professionals are constantly on the look out of a better job, a better profile and better lifestyle, and therefore a better pay package. -Dissatisfaction from a position or company or the whole -This is the situation where in the person hired for the job does not see the scope or does not get the kind of work that he/ she is expecting. Personal Reasons -This is more common in the cases of women as they sometimes take a break from their professional life to either lead a family life or bring up their children. It is also possible in case of men who need to take a break from their professional or change jobs for any particular reason such as - workplace distance or a health situation. Salary / Benefits -Some employees are expecting good salaries and benefits from the company they are working for that causes them to be disappointed and resign from their job. Location -Other employees will prefer the workplace that is near their homes which will ensure less transportation cost for them. Job Resignation Etiquette *Take your time. *Backup plan *Timing and manner *Write a Resignation Letter *Exit Policy

RETIREMENT * is the point where a person stops employment completely * Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when physical conditions don't allow the person to work anymore (by illness or accident) or as a result of legislation concerning their position. *Previously, low life expectancy and the absence of pension arrangements meant that most worker continued to work until death.

Reasons for Retirement: *Laid Off or Fired *Personal Health *Health of a Loved One *More Personal Time *More Time to Spend with Loved Ones The Effects of Retirement: *Mental Anguish *Defiance *Restlessness *Stress *Health The Advantages of Retirement *Stress Reduction *Health Benefits *Philanthropy *Family Involvement *A new lifestyle *Boredom *Lack of Personal Interaction *Economic Insecurity Different kinds and sources of retirement plans / benefits *Disablility benefits *Social security benefits *Private savings *Veterans benefits Early Retirement -is also a euphemistic term for accepting termination of employment before retirement age as part of the employer's labor force rationalization. Reasons Why Organizations Offer Early Retirement Plans *Avoid Layoffs *Boost Employee Morale *Trim Costs Advantages of Early Retirement *A longer period with lower medical risks *Early retirement incentive plans *Full benefits in some jobs *Part-time options Disadvantages of early retirement *lower or inaccessible state pension benefits

*your benefits from defined contribution plans like annuities would be lower *increased longevity risk *discontent Retrenchment *It is an economic ground to reduce the number of employees. *It is the reduction of personnel for the purpose of cutting down on costs of operations in terms of salaries and wages resorted to by an employer because of losses in operation of a business occasioned by lack of work and considerable reduction in the volume of business. *It is sometimes also referred to as downsizing. It is aimed at saving a financially ailing business establishment from eventually collapsing. Basic Conditions of Retrenchment: 1. The retrenchment must be necessary to prevent business losses. 2. The business losses sought to be prevented are serious, actual and real. Advantages: *Organizational performance and innovation increase *restructuring of jobs and departments *reducing of over-staffing *redundancy and overcrowding Disadvantages: *Decrease of human resource that results from cost cutting measures *Organizational costs increase *Discourage the organizations' members E-HRM Introduction *Advances in computer-related technology have a major impact on the use of information for managing HR> *The development of e-business has included ways to move HRM activities into the internet. Types of E-HRM 1. Operation E-HRM -Concerned in the basic HRM activities in the administrative area like payroll, employee personal data, etc. 2. Relational E-HRM -is concerned on more advanced HRM activities. The emphasis here is not on administering, but on HR tools that support basic business processes such as recruiting and the selection of new personnel, training, performance management and rewards. 3. Transformational E-HRM -is concerned to HRM activities with strategic character. Here we are tlaling about activities regarding organizational change processes, strategic re-orientation, strateric competence management, and strategic knowledge management Issues regarding the shift HRM to E-HRM

a. Substantial reduction in cost and time for many HRM activities. b. Transition of administrative activities from the HRM department to the employees themselves. c. Increase in the information readily available to employees. e. Increase emphais on the human resource as strategic business partner