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Human Resources Management

Amali Wijekoon
Dept. of MOT
Learning outcomes
At the end of the session you should be able to:
Understand what is human resource
management and its evolution
Identify major areas / functions in HRM.

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Organizational resources
Physical resources
Financial resources
Marketing capability
Human resources
Managing these resources are vital

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Defining HRM
The process of acquiring, training, appraising,
and compensating employees and of
attending to their labor relations, health and
safety, and fairness concerns
Gary Dessler

Enjoy the video

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Evolution of HRM
Personnel management 1950
Human resources management 1960
Strategic human resource management
HR influenced by Japanese management
HR influenced by IT 1990
HR linked to artificial intelligence and expert
systems 2000 Amali Wijekoon 5
Major areas
Planning for organizations, jobs and people
Acquiring human resources
Building individual and organizational
Rewarding employees
Maintaining human resources
International human resources management

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Companys Strategic Plan

Develop HR Manage HR
Recruit Select Train Appraise Reward
plans & Job in global
candidates employees employees employees employees
descriptions firms

Conform to ethical standards, safety and other HR related law

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Trends shaping HRM
So companies must
Trends HRM needs to
Globalization More competitive Focus more on big
Increased Faster and more picture
competition responsive Create high
Technological More cost-effective performance work
innovations Human capital systems
High-tech jobs oriented Help employer
More service jobs Quality conscious better manage
challenging times
Knowledge work Empowered teams
Manage ethically
An aging workforce Scientific decision
making Formulate actions
based on evidence

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1. HR planning
Concerned with the flow of people
Into the organization
Through the organization
Out of the organization
Ensure that the organization has the right mix
of people
Number of people (quantity)
Competencies of people (quality)

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HR planning process
Gathering pertinent information
Internal factors
External factors
Forecasting the demand for HR
How many people
What type of people
Forecasting the supply of HR
Internal supply
External supply
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HR planning process contd
Planning & conducting HR programs
Reflective learning
PDCA cycle

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Shortage of HR
Hire new people
Enhance the job role of existing employees
Re-employment of retired staff

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Surplus of HR
Freezing of hiring
Voluntary retirement/retrenchment scheme
Absorb excess HR to booming areas in the

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Job analysis
The procedure for determining the duties and
skill requirements of a job and the kind of a
person who should be hired for it
Job description: a list of what the job entails
Job specification: what kind of a person to hire

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Job description
Job profile
Job title
Department or section
Duties and responsibilities
Reporting relationships
Working conditions
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Job specification
Competency profile & Personality profile
Formal education
Work experience
Traits / characteristics

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2. Employee resourcing
Also known as staffing / hiring
Key aspects

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Recruitment & selection process
HR planning
Recruiting build a pool of candidates
Applicants complete application forms
Use selection tools to screen out applicants
Decide who to make an offer to

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Process by which organizations locate/find
and attract individuals to fill job vacancies
Develop a pool of applicants
Internal recruiting vs. external recruiting

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Select the best candidate for the job from the
pool of applicants
Selection methods
Review applications
Selection tests
Assessment centers
Background and reference checks
Physical examinations
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All activities involving offering the job in the
Appointment letters
Some may refuse the employment
Come into the agreement

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The process of receiving and welcoming new
Aims of induction
Familiar to workplace
Favourable attitudes towards organization
Obtain effective output
Reduce employees leaving quickly

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3. Human Resources Development
The process of teaching new or current employees
the basic skills they need to perform their jobs
Focus on acquiring knowledge, skills and attitudes
Focus on enabling an individual to take up a future
role within the organization

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Training process
Training needs analysis
Identify specific knowledge and skills the job
requires and compare these with the employees
knowledge and skills

Design the training program

Formulate training objectives, program contents
and budgets

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Training process contd
Implement the program
Conduct the training program

Assess the programs success

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On the job training
Learn the job by actually doing it
On the job process
Prepare the learner
Present the operation
Do a tryout
Follow up

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On the job training methods
Apprenticeship training
Informal learning
Audiovisual based learning
Job instruction training
Electronic performance
support systems (EPSS)
Job rotation
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Off the job training methods
The case study method
Management games
Outside seminars
University related programs
Role plays
Outbound training

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4. Performance Evaluation
Performance appraisal
Evaluating an employees current and or past
performance relative to his or her performance
Setting work standards / performance criteria
Assessing the employees actual performance
relative to those standards
Providing feedback
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Why appraise performance?
Salary advancements and promotions are
linked with performance appraisals
Develop a plan to correct deficiencies or to
reinforce the things the employee does right
Useful for career planning process

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Appraisal types/objectives
Performance is satisfactory
Make development plans

Performance is satisfactory
Maintain performance
Not promotable

Performance is unsatisfactory
Take corrective actions

Performance is unsatisfactory Tolerate or dismiss the

Uncorrectable person
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SMART objectives
Specific clear, unambiguous, understandable
Measurable in terms of quantity, quality,
time or money
Achievable challenging but within the reach
of a competent and committed person
Relevant aligned to organizational objectives
Time frame to be completed within an
agreed time frame
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Who should do the appraising?
The immediate supervisor
Peer appraisals
Rating committees
Self rating
Appraisals by subordinates
360-degree feedback
Supervisors, peers, subordinates and customers

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5. Reward Management
All forms of paying going to employees and arising
from their employment
Components of a reward scheme
Financial rewards
Non financial rewards
Employee benefits

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Motivation & incentives

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Financial rewards

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Non financial rewards
Employee recognition
Gifts, cash rewards
Merchandise incentives
Training programs
Work/life balance
Group / individual travel

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Employee benefits
Supplemental pay benefits
E.g. sick leave, sabbatical leave, maternity leave,
casual leave, vacations/holidays
Insurance benefits
Retirement benefits
Employee services
E.g. day-care facilities

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6. Grievance Handling
Any genuine or imaginary feeling of
dissatisfaction or injustice which an employee
experiences about his job and its nature,
about the management policies and
can result in
frustration, dissatisfaction, low productivity, lack
of interest in work, absenteeism

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Improper working conditions such as strict
production standards, unsafe workplace, bad
relation with managers, etc.
Irrational management policies such as
overtime, transfers, demotions, inappropriate
salary structure, etc.
Violation of organizational rules and practices

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Quick action
Acknowledge grievance
Gathering facts
Examine the causes of grievance
Execution and review

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Key HR challenges in Sri Lanka
Inability to find competent and talented
people at entry level and very senior level
Managing expectations of school levers and
fresh graduates
Skill mismatch of GCE A/L passed people and
graduates with the requirements of the
private sector
Brain drain
Shortage of supply of labor for some selected
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Business ethics
The principles of conduct governing an
individual or a group; specially, the standards
you use decide what your conduct should be
Ethical decisions have two aspects
Normative judgment
Morality / community standards
Profession bodies have their Code of ethics
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Ethical decision making approaches
Utilitarian approach
The ethical action is the one that produces the
greatest good and does the least harm for all
stakeholders e.g. clients, colleagues, the
Rights approach
The ethical action is the one that best protects
and respects the moral rights of those affected

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Ethical decision making approaches
Fairness/justice approach
Ethical actions should treat all human beings
equally, or if unequally, then fairly based on some
standard that is defensible
Common good approach
This approach suggests that the interactions with
your community are the basis of ethical reasoning
Respect and compassion for all others, especially
the vulnerable, are requirements of such
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Ethical decision making approaches
Virtue approach
Virtues are dispositions and habits that enable us
to act according to the highest potential of our
Honesty, courage, compassion, generosity,
tolerance, love, fidelity, integrity, fairness, self-
control, and prudence are all examples of virtues
Virtue ethics asks of any action, "What kind of
person will I become if I do this?"

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