Human Resource Management

• The process of planning, organizing, directing

(motivating), and controlling the operative
functions of development, compensation,
integration, maintenance, and separation of
organizational human resources to the end that
organizational, individual, and societal
objectives are achieved.
• Human Resource Management includes all
activities used to attract & retain employees and
to ensure they perform at a high level in
meeting organizational goals.
• HRM- A method of planning to ensure that the
organization has the right number of capable
people in the right places and at the right time.

• Job analysis- An assessment that defines jobs

and the behaviors necessary to perform them.

• Job description- A written statement that

describes a job.

• Job specification- A written statement of the

minimum qualifications that a person must
possess to perform a given job successfully.
Human Resource Management
Functions
Labor
relations

Health & Recruitment &

Safety selection

HRM
Pay and Training and
development
benefits

Performance
Management
 HRM Functions
• Recruitment: Develop a pool of qualified applicants.
Locating, identifying, and attracting capable
applicants.
• Selection: determine relative qualifications &
potential for a job. Screening job applicants to
ensure that the most appropriate candidates are
hired.
• Training & Development: Ongoing process to develop
worker’s abilities and skills.
• Performance appraisal & feedback: provides
information about how to train, motivate, and
reward workers.
 HRM Functions
Pay and Benefits: high performing employees
should be rewarded with raises, bonuses.
–Increased pay provides additional incentive.
–Benefits, such as health insurance, reward
membership in firm.
Labor relations: Managers need an effective
relationship with labor unions that represent
workers.
–Unions help establish pay, and working
conditions.
 Selection Tools
Background
Information

Interviews References

Selection

Performance tests
Paper tests

Physical
Ability tests
 Selection Process
Background Information: includes education,
prior employment, college major, etc.
Interview: almost all firms use one of two types:
– Structured interview: managers ask each
person the same job-related questions.
– Unstructured interview: held like a normal
conversation.
Physical Ability Test: measure strength &
endurance.
– Good for physically demanding jobs.
 Selection Process
 Paper & Pencil Tests: Either an ability and personality
test.
– Ability test: assess if applicant has right skills for the job.
– Personality test: seek traits relevant to job performance.
– Be sure test is a good predictor of job performance.
 Performance Tests: measure job performance.
– Typing speed test is one example.
– Assessment Center: candidates assessed on job-related
activities over a period of a few days.
 References: outside people provide candid information
about candidate.
– Can be hard to get accurate information.
 Do Organizations Need Training
• The answer is “YES”
• However, we must
know the purpose and
functions of training
before we can use it.

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 The Gap Concept

Expected Curve

1,000 Cars Gap

Performance/ 200 Cars
Actual Curve
Results
800 Cars

Time
In training terms this means we need to
develop programs to fill the Gap
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 Training Needs
As training experts we must
The reasons for not
analyze the situation to
making the 1,000
determine if:
cars:
• Expected result too high
• Not enough
resources • Target achievable
• Poor machines • Is training the only way to
make it happen
• Poor staff skills
• Are there other factors.

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 Concept of Training and
Development
• Training
Training is a systematic process through which an
organization’s human resources gain knowledge
and develop skills by instruction and practical
activities that result in improved corporate
performance.
• Development
It refers broadly to the nature and direction of change
induced in employees, through the process of
training and educative process.
 Training & Development : A
Comparison
• Training
 short term
 for a definite purpose.
• Development
long term educational
for general purpose.
 Performance Appraisal

1. Continuous Process of
 Identifying
 Measuring
 Developing

The performance of individuals and teams

 Performance Appraisal
• A performance appraisal is a systematic and
objective method of judging the quality of an
employee in performing his job and a part of
guiding and managing career development.
• Performance appraisal is an analysis of an
employee’s recent successes and failures,
personal strengths and weaknesses, and
his/her suitability for promotion or further
training.
Who Appraises Performance?

Supervisors

Peers Customers &

Clients
Sources of
performance
appraisals

Self Manager
Appraisal Process
Establish Performance
standard

Communicate
expectations

Measure actual
performance

Compare actual
performance with
standards

Discuss the appraisal

report
 Objectives of Performance
Appraisal:
a. To provide employees feedback on their
performance.
b. Identify employee training needs.
c. Document criteria used to allocate
organisational rewards.
d. A basis for decisions relating to salary
increases, promotions, disciplinary actions,
bonuses, etc.
e. To motivate employees through recognition
and support.
f. Facilitate communication between employee
and employer.
g. To improve performance through counseling,
coaching and development.
 Methods of Performance Appraisal
• Written Essays
• Critical Incident Method
• Ranking Methods
• Graphic Rating Scale Method
• Checklist Methods
• Self Appraisal
• Peer Appraisal
• 360 Degree appraisal