Introduction To Human Resource Management: Reference Books

Lecture 1
Introduction to Human
Resource Management
Reference Books:
Human Resource Management ( Gary Dessler)
Human Resource Management (Mondy)
Human Resources and Personnel Management ( Keith Davis)
 Internet
Resource Person: Badar Zaman Qureshi

 Organization consists of people with formally
assigned roles who work together to achieve the
organization’s goals.
 manager is the person responsible for accomplishing
the organizations goals, who does so by managing the
efforts of the organizations people
2
Management
A universal process of getting activities

completed with and through other people to
achieve organizational goals.
3
The Management
Planning
PHYSICAL
HUMAN
RESOURCES RESOURCE
S
ORGANIZATIONAL
GOALS
FINANCIA
Leading L
INFORMATION
RESOURCE
RESOURCES
S
aim of Management is to achieve organizational goals in an

efficient and effective manner. 4
Organizational Performance
Efficiency:
 A measure of how well resources are used to
achieve a goal
“Doing Things Right”
 Effectiveness:
 A measure of the appropriateness of the goals
chosen (are these the right goals?), and the
degree to which they are achieved
“Doing the Right Things Right” 5
Management in Organizations
Planning
and decision Organizing
making
Inputs from the environment
• Human resources Goals attained

• Financial resources • Efficiently
• Physical resources • Effectively
• Information resources
Controlling Leading
6
Efficiency versus Effectiveness
Efficiency: Effectiveness:
Operating in Doing the right
such a way Successful things in the
that resources Management right way at
are not wasted the right times
7
Human Resource Management
The design of formal systems in an

organization to ensure that human talent is
used effectively and efficiently to
accomplish organizational goals.
Human Resource Management helps in

maximizing productivity & reducing cost
by Putting Right Person At Right Place.
C on c e r n of a l l m a n a ge r s a t e ve r y l e ve l 8
Human Resource Management
Managerial function that
tries to match an
organization’s needs to the
skills and abilities of its
employees.
9
Aim of Human Resource Management
In simple sense, HRM means employing people,
developing their resources, utilizing, maintaining
and compensating their services in tune with the job
and organizational requirements to achieve its goals
effectively & efficiently.
10
Activities of HRM
 Determining the nature, functions of each employee’s job
 Planning HR needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries (compensating employees)
 Providing incentives and benefits
 Appraising performance
 Communicating (interviewing, counseling, disciplining)
 Training and developing managers
 Building employee commitment
11
Why Is HRM Important to All Managers?
Some Common Consequences Caused by Poor
HRM Practices
 Hire the wrong person for the job
 Experience high turnover/dissatisfaction
 Have your people not doing their best
 Employees will not know that what to do & how to do
 Have your company in court because of
discriminatory/unlawful actions
 Have some employees think their salaries are unfair and
inequitable internally & externally
 Allow a lack of training to undermine your department’s
effectiveness
12
 Commit any unfair labor practices
Successful HRM
Good for…
Organization
Employee
Society
13
Managing HR In Organizations
HR Cooperation with Operating & Line Managers
Typical Division of HR Responsibilities: Recruiting
14
Human Resource Management Functions
Staffing
 Process through which an organization ensures that it
always has the proper number of employees with the
appropriate skills in the right jobs at the right time to
achieve the organization’s objectives.
It includes
 Constant Job Analysis
 Human Resource Planning
 Recruitment
 Selection
16
Performance Management
 Continuous Process of
 Identifying performance of individuals
and teams
 Measuring performance of individuals
and teams
 Developing performance of individuals
and teams
&
 Aligning performance with the
strategic goals of the organization
Goa l - ori e n t e d p roc e s s t o e n s u re orga n i z a t i ona l p roc e s s e s

a re i n p l a c e to maximize productivity
Human Resource Development
 Major Personnel function that consist not only of T&D
but also individual career planning, developing
activities and performance appraisal.
 HRD is composed of
• Orientation
• Training
• Development
• Career planning
• Career Development
• Performance Appraisal
18
Compensation & Benefits
 Consist of all direct, indirect, financial & non financial
rewards given to employees in return of their services.
 Pay - Money that a person receives for performing a job
 Benefits –Additional Financial rewards in addition to
base pay including paid vocations, sick leave, insurance
etc.
• Non financial Rewards
 The Job
 The Environment
19
Safety & Health
 Safety involves protecting employees from injuries

caused by work related accidents.
 Health refers to employee’s freedom from physical or
emotional illness.
20
Employee & Labor Relation
 Deals with employee employer relationship &

dealing with labor unions
 Businesses are required by law to recognize a union
and bargain with it in good faith if the firm's
employees want union representation
21
Interrelationships of HR Functions
 All HR M functions are interrelated so that each

function affects the others
 For example, a pay-for-performance compensation
plan depends upon reliable and valid performance
appraisal practices
22
Lecture 2
Equal Employment Opportunity,

Affirmative Action, and Workforce
Diversity
Reference Books:
Human Resource Management (Robert L. Mathis & John H. Jackson)
Internet
Functions (Scope) of HRM
2
Staffing
 Process through which an organization ensures that it
always has the proper number of employees with the
appropriate skills in the right jobs at the right time to
achieve the organization’s objectives.
 The aim of staffing is to provide a sufficient supply of
qualified individuals to fill jobs in an organization.
 It includes
 Workers  HR planning
 Job design  Recruitment
 Job Analysis  Selection
Equal Employment opportunity (EEO)
 Theset of laws and policies that requires all individuals’
rights to equal opportunity in the workplace, regardless of
race, color, sex, religion, national origin, age, or disability.
 Affirmative Action Plans- programs developed by
employers to undo the results of past employment injustices
by actively seeking, hiring & promoting minority group
members and women.
 creates the expectation and program requirements that companies
make a positive effort to recruit, hire, train, and promote
employees from groups who are underrepresented in the labor
force
USA Context - EEO Legislation, Supreme Court decisions, and

executive orders requires both public and private organizations to tap
the abilities of a workforce that was largely underused/under-
represented before the mid-1960s.
 The concept has undergone much modification and fine-tuning

since the passage of the
 Equal Pay Act of 1963,
 the Civil Rights Act of 1964, and
 the Age Discrimination in Employment Act of 1967.
Federal Laws affecting equal employment Opportunity
 Numerous federal laws have been passed that have had an
impact on EEO. Some of them are listed below
 Title VII of the Civil Rights Act of 1964, Amended in 1972
 Equal Pay Act of 1963, Amended in 1972
 Lilly Ledbetter Fair Pay Act of 2009
 Pregnancy Discrimination Act of 1978
 Civil Rights Act of 1991
 Age Discrimination in Employment Act of 1967, Amended in 1978
and 1986
 Rehabilitation Act of 1973
 Americans with Disabilities Act of 1990 further amended in 2008
EEO Practices in Pakistan
EEO prohibits discrimination against anyone on any pretext
 Article 27 of the Constitution of Pakistan, prohibit
discrimination based on sex in “Services of Pakistan”
 further “make it obligatory to take steps to ensure full
participation of women in all spheres of national life“
EEO Practices in Pakistan
Pakistan is signatory of international agreements and conventions
 ILO Discrimination (Employment and Occupation) Convention,

1958 (No. 111) (ratified on 24/1/1961)
 ILO Equal Remuneration Convention, 1951 (No. 100) (ratified on
11/10/2001)
 UN Convention on the Elimination of All Forms of Discrimination
Against Women, 1979 (ratified on 12/3/1996)
 ILO Vocational Rehabilitation and Employment (Disabled Persons)
Convention, 1983 (No. 159) (ratified on 25/10/1994)
 ILO Underground Work (Women) Convention, 1935 (No. 45)
Workforce Composition
The existing workforce around the world is changing,

 Some types of workers are scarce but in high demand, while
others are available in excessive numbers
 The culprit is economic shifts and their effects in different
industries
Types of workers
 Full-time employees
 Part-time employees
 Independent contractors
 Temporary workers
 Contingent workers: Not a full time employee, but a temporary
or part-time worker for a specific period of time and type of work
Diversity
Any perceived difference among
people: age, race, religion,
profession, geographic origin,
lifestyle, tenure with the
organization or position, and any
other perceived difference.
Workforce Diversity
 The differences in human characteristics and composition
in an organization.
 The tangible indicators of diversity
 Gender  Age/generational differences
 Marital and family status  Matures (born before 1946)

 Baby boomers (born 1946–1964)
 Disabilities
 Generation X (born 1965–1980)
 Religion
 Generation Y (millenials) (born 1981–2000)
 National origin  Gen Z. (born between late 1990s and 2009)
 Race/ethnicity  Generation Z or Digital Natives
In addition, individuals can be multicultural and be included

in several groups
Diversity Management
 Ensuring that factors are in place to:
 Provide for and encourage the continued development of a
diverse workforce
 Meld actual and perceived differences among workers
Benefits of Workforce Diversity

 new talent and ideas from employees of different
backgrounds, which can enhance organizational performance
 helps recruiting and retention because protected-class
individuals often prefer to work in organizations with
coworkers of various demographics.
 an increase of market share due to customers can be attracted
with varied demographic marketing activities.
 Leads to lower costs because there may be fewer
discrimination lawsuits
Approaches to Diversity and Their Results
Lecture 3
Human Resources Planning
Reference Books:
Human Resource Management (Mathis)

Internet

Strategic Planning
The process by which top
management determines overall
organizational purposes and
objectives and how they are to
be achieved
Vision - is sometimes called a picture of your company in

the future but it’s so much more than that. Your vision
statement is your inspiration, the framework for all
your strategic planning
2
Strategic Planning/Implementation Process
3
Strategic Human Resource Management
 The linking of HRM with strategic goals and objectives in

order to improve business performance and develop
organizational cultures that foster innovation and
flexibility.
 Involves formulating and executing HR systems—HR

policies and activities—that produce the employee
competencies and behaviors that the company needs to
achieve its strategic aims.
4
HR Planning
 Matching the internal and external supply of candidates with
job openings anticipated in the organization over a specific
period of time
 Process of deciding what positions the firm will have to fill, and
how to fill them.
 it embraces all future positions, from maintenance clerk to
CEO.
However, most firms call the process of deciding how to fill executive
jobs as succession planning.
three forecasts/estimates
 personnel needs,
 the supply of inside candidates, and
 supply of outside candidates. 5
Human Resource Planning Process
6
HR Planning
Requirements Forecast
Determining:
 Number
 Skills
 Location of employees that the organization will need at future
dates in order to meet goals
 Demand for firm’s goods or services must be forecasted
 Forecast is then converted into people requirements
7
HR Planning
HR Forecasting Techniques
 Zero-based forecasting – uses current level as starting
point for determining future staffing needs
 Bottom-up approach – each level of organization,
starting with lowest, forecasts its requirements to provide
aggregate of employment needs
Estimates either top-down or bottom-up, but essentially

people who are in a position to know are asked,
“How many people will you need next year?”
relies on general guidelines applied to a specific

Rule of thumb
situation within the organization.
 e.g. a guideline of “one operations manager
8 per five reporting supervisors”
HR Planning
HR Forecasting Techniques
Continue
Assist in forecasting. Relationship between volume of
sales and number of workers needed is positive one.
Regression scatter plot

analysis
Trend Ratio
analysis analysis
9
HR Planning
Forecasting the Demand for
Human Resources
Regression analysis- The Relationship of Sales Volume to

Number of Employees or any other variables
10
HR Planning
Human Resources
Trend analysis- study of a firms past employment needs

over a period of years to predict future needs.
Trend analysis involves collecting and evaluating data to
identify patterns of information that might impact the future.
11
HR Planning
Human Resources
Scatter plot- A graphical method used to help
identify the relationship between two variables
Scatter plot
Determining the
Relationship
Between Hospital
Size and Number of
Nurses
12
HR Planning
Human Resources
Ratio analysis- A forecasting technique for determining
future staff needs by using ratios between, for example,
sales volume and number of employees needed
Patients: Doctors = 4:1

Number of Patients = 100
Number of Doctors = 25
If there are 400 patients, how many Doctors
are needed?
13
HR Planning
Human Resources
Judgmental or Statistical
 Whichever forecasting tool you use, managerial judgment

should play a big role.
 It’s rare that any historical trend, ratio, or relationship will
simply continue.
 You will therefore have to modify any forecast based on
subjective factors such as the feeling that more employees will be
quitting you believe will be important.
14
HR Planning
Forecasting the Supply of Human Resources
HR Availability
 Determining
 whether the firm will be able to secure employees with the
necessary skills
 Sources from which these individuals may be obtained
 Show whether the needed employees may be obtained
from within the company, from outside the organization,
or from a combination of the two sources
15
HR Planning
Estimating Internal Labor Supply for a Given Unit
16
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. (Taken from Book HRM Mathis-Jackson_13e page# 154)
HR Planning
Internal Supply
Qualification Inventories
Manual systems and replacement charts Computerized skills inventories
17
HR Planning
External Supply
Factors in Supply of Outside Candidates
 General economic conditions
 Expected unemployment rate
 Net migration into and out of the area
 Circumstances affecting persons entering and leaving the workforce
 Individuals graduating from schools and colleges
 Changing workforce composition and patterns
 Economic forecasts for the next few years
 Technological developments and shifts
 Actions of competing employers
 Government regulations and pressures 18
HR Planning
External Supply
Sources of Information
 Extensive use of government estimates of labor force
populations,
 State or regional economic development offices
 e.g. Central Bureau Statistics
 State Bank of Pakistan
 U.S Bureau of Labor Statistics (BLS)
 Trends in the industry,
 Periodic forecasts in business publications
 Online economic projections
 Other Government and private sources 19
Determining Workforce Surplus or Shortage
 Based on the forecasts for labor demand & supply, the

HR manager
 can compare the figures to determine whether there will be a
shortage or surplus of labor for each job category.
 Determining expected shortages & surpluses allows the

organization to plan how to address these challenges.
20
Options for Reducing a Surplus
21
Pay
Downsizing reductions Demotions
Work Hiring
Transfers sharing freeze
Natural Early
attrition retirement Retraining
Options for Avoiding a Shortage
22
Temporary
Overtime Outsourcing
employees
Retrained Turnover New external

transfers reductions hires
Technological
innovation
Implementing & Evaluating the HR Plan
 When implementing HR strategy, the organization must hold

some individual(s) accountable for achieving the goals.
 That person must also have the authority & resources needed
to accomplish those goals.
 Regular progress reports should be issued.
 The evaluation of results should not only look at the actual

numbers, but should also identify which parts of the planning
process contributed to success or failure.
23
The Matter of Privacy
Keeping Data Safe
Since intruders can strike from outside an organization or from
within, HR departments can help screen out potential identity
thieves by following four basic rules:
1. Perform background checks on anyone who is going to have
access to personal information.
2. If someone with access to personal information is out sick or on
leave, don’t hire a temporary employee to replace him or her.
Instead, bring in a trusted worker from another department.
3. Perform random background checks such as random drug tests.
Just because someone passed five years ago doesn’t mean their
current situation is the same.
4. Limit access to information such as SSNs, health information,
and other sensitive data to HR managers who require it to do
their jobs. 5–24
1996 Croatia USAF CT-43 crash
On April 3, 1996, a United

States Air Force CT-43 crashed
in Croatia while on an official
trade mission. The aircraft was
carrying United States
Secretary of Commerce Ron
Brown and 35 other people
(including 16 corporate
executives).
25
The September 11 attacks
 Often referred to as September 11th or
9/11were a series of coordinated
suicide attacks on the United States on
September 11, 2001. On that morning,
19 terrorists hijacked four commercial
passenger jet airliners.
 The death toll of the attacks was 2,996,
including the 19 hijackers with more then
6000 injuries.
 The hijackers intentionally crashed two
of the airliners into the Twin Towers of
the World Trade Center in New York
City, killing everyone on board and
many others working in the buildings.
26
Succession Planning
 Identifying and developing people with the potential to fill key
positions in the company once the position is vacant.
 It increases the availability of experienced and capable
employees to assume these roles as they become available.
 Goal is to help ensure a smooth transition and operational
efficiency
27
HR Planning
Succession Planning
Management Replacement Chart Showing Development Needs of
Potential Future Divisional Vice Presidents
Internal Supply
28
HR Planning
Succession Planning
Management Replacement Chart
Internal Supply
29
Lecture 4
Job design, & Job Analysis
Reference Books:
Internet

1
Workflow Analysis
Inputs
Job design
Job Design- organizing tasks, duties, responsibilities, and other

elements into a productive unit of work in order to increase
productivity & employees satisfaction.
Or else
 Lower productivity  Sabotage

 Employees Turnover  Unionization
 Absenteeism  Resignations
 Employees dissatisfaction  Complaint
3
Book HRM Mathis-Jackson_13e pae#116
Job design
Three major reasons for Job design
 Job design can influence performance in certain jobs
 Job design can affect job satisfaction.
 Job design can impact both physical and mental health.
4
Book HRM Mathis-Jackson_13e pae#116
Job design
Characteristics of Jobs
Skill variety- the extent to which the work requires several different
activities for successful completion.
Task identity- the extent to which the job includes a “whole”

identifiable unit of work that is carried out from start to finish and that
results in a visible outcome.
Task significance - the impact the job has on other people. A job is
more meaningful if it is important to other people for some reason.
Autonomy- the extent of individual freedom and discretion in the

work and its scheduling. More autonomy leads to a greater feeling of
personal responsibility for the work.
Feedback- the amount of information employees receive about how

well or how poorly they have performed. 5
By Hackman and Oldham
Job design
Job Characteristics Model
6
By Hackman and Oldham
Job Redesign
Common Approaches to Job Design
 Job enlargement “adds more things to do”

Assigning workers additional same level activities, thus
increasing the number of activities they perform and
broadening the scope of a job. (Horizontal loading)
 Job enrichment “adds more responsibility”

increasing the depth of a job by adding responsibility for
planning, organizing, controlling, or evaluating the job that
increases the opportunities for the worker to experience
feelings of responsibility, achievement, growth, and
recognition. (Vertical loading)
7
Job Redesign
Common Approaches to Job Design
 Job rotation
the process of shifting a person from job to job and/or department to
department aims at developing an employee’s capabilities for doing
several different jobs.
 Clear policies that identify for employees the nature and
expectations of job rotations are more likely to make job rotation
work.
 Job Sharing
 Two employees perform the work of one full-time job.
 Beneficial for employees who may not want or be able to
work full-time because of family, school, or other reasons.
8
Job design
 A job- a grouping of the tasks, duties, and

responsibilities that constitutes the work assignment for
an employee. (Keith Devis)
 Job families- group of jobs into or groupings of jobs that

either call for similar worker characteristics or contain
parallel work tasks
 Position - Collection of tasks and responsibilities

performed by one person;
 there is
a position for every individual in an
organization.
9
Job Analysis
a systematic process of gathering and analyzing
information about the content, context; determine
the skills, duties and human characteristics required
to perform specific job in organization.
 Job description – document providing information

regarding tasks, duties, and responsibilities of job
 Job specification – minimum qualifications to
perform a particular job
10
Job Analysis
A Basic Human Resource Management Tool
Sources of Data
Employees Supervisors Managers Job analyst
11
Job Analysis
Purposes
 What physical and mental tasks does the worker
accomplish?
 When does the job have to be completed?
 Where is the job to be accomplished?
 How does the worker do the job?
 Why is the job done?
 What qualifications are needed to perform the job?
12
Job Analysis
Occasions
 When the organization is founded
 When new jobs are created
 When jobs are changed significantly as a result of

new technologies, methods, procedures, or systems
13
Job Analysis
Types Of Job Analysis Information
 Job’s actual duties and responsibilities

 Worker-oriented activities
 Machines, tools, equipment, and work aids used
 Job performance Standard
 Working Conditions
 Work schedule
 Financial and nonfinancial compensation
 Personal requirements for the job
14
Job Analysis
Methods
 Interviews
 Questionnaires
 Observation
 Employee recording
 Analyzing jobs of rival organizations
 Combination of methods
15
Job Analysis
Methods of Collecting Job Analysis Information:
The Interview
 Information Sources
 Individual employees
 Groups of employees
 Supervisors with knowledge of the job
 Advantages
 Quick, direct way to find overlooked
information
 Interview Formats
 Disadvantages  Structured (Checklist)
 Distorted information  Unstructured
16
Job Analysis
Questionnaires
 Information Source
 Employees fill out
 Advantages
questionnaires to describe
 Quick and efficient way
their job-related duties and
responsibilities to gather information
from large numbers of
 Questionnaire Formats employees
 Structured checklists  Disadvantages
 Open-ended questions
 Expense and time
consumed in preparing
and testing the
17
questionnaire
Job Analysis
Typical Areas Covered in a Job Analysis Questionnaire
18
Job Analysis
Observation
 Observing and noting the physical activities
of employees as they go about their jobs
 Advantages
 Provides first-hand information
 Reduces distortion of information
 Disadvantages
 Time consuming
 Difficulty in capturing entire job cycle
 Of little use if job involves a high level of mental activity
19
Job Analysis
Participant Diary/Logs
 Workers keep a chronological diary/ log of
what they do and the time spent on each
activity
 Advantages
 Produces a more complete picture of the job
 Employee participation
 Disadvantages
 Distortion of information
 Depends upon employees to accurately recall their
activities 20
Job Analysis
Job Description- a written statement that explains
tasks, duties, working conditions, responsibilities &
other aspects of a specified job
Components
 Job Title  Job Grade / Pay Scale

 Location  Date
 Employment Status  Duties
 Supervision given or  Machines, Tools,
received Equipment, Materials
 Job Summary used.
 Hazard 21
Job Analysis
Sample Job
Description
22
23
Job description/Specification Sample
24
Job Analysis
Job Descriptions Contents
Job
Identification
Job Job
Specifications Summary
Sections of a
Typical Job
Working Description Responsibilities
Conditions and Duties
Standards of
Authority
Performance
25
Job Analysis
The Job Description Sections
 Job identification
 Job title: name of job
 Grade/ status
 Preparation date: when the description was written
 Prepared by: who wrote the description
 Job summary
 Describes the general nature of the job
 Lists the major functions or activities
26
Job Analysis
 Relationships (chain of command)
 Reports to: employee’s immediate supervisor
 Supervises: employees that the job incumbent directly

supervises
 Works with: others with whom the job holder will be

expected to work and come into contact with internally.
 Outside the company: others with whom the job holder

is expected to work and come into contact with
externally. 27
Job Analysis
 Responsibilities and duties
 A listing of the job’s major responsibilities and duties (essential
functions)
 Defines limits of jobholder’s decision-making authority, direct
supervision, and budgetary limitations.
 Standards of performance and working conditions

 Lists the standards the employee is expected to achieve under
each of the job description’s main duties and responsibilities.
 Job Specification
 Authority
28
Job Analysis
Job Specification- a written statement that explains
human characteristics needed to perform the job
Components
 Education
 Experience
 Training
 Physical & Mental Status
 Communication Skills
 Languages
 Physical Skills
 Personality Traits 29
Job Analysis
Sample
Job Specification-
30
Difference between Job Analysis and Job Design
 There are two basics ways in which work is organized. The first is
related to the flow of authority and is known as organization
structure. The second relates to flow of work itself from one
operation to another and is known as procedure.
 The job design is about designing or re-designing a new job profile
and setting the correct organizational structure.
 The job design is about using several theoretical approaches to bring
the balance between creative and routine part of the job.
 The job design is done as the organization needs to keep the number
of employees at the affordable costs.
 The correct job design can bring the elimination of many process steps
and it can help the organization to react quicker to the requests of the
customers.
 The job analysis is about the analysis of the current jobs and it is and
can be used as the input to the job design. 31
Lecture 5
Recruitment
Reference Books:

Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning
Human Resource Planning
Forecasting Comparing Forecasting

Human Requirements Human Resource
Resource and Availability Availability
Requirements
Demand = Surplus of Shortage of

Supply Workers Workers
No Action Restricted Hiring, Recruitment

Reduced Hours,
Early Retirement, Selection
Layoff, Downsizing
Recruitment
 The process of finding & attracting
capable individuals to apply for jobs.
 On a timely basis
 In sufficient numbers
 With appropriate qualifications & Skills
 The process of recruitment begins

with the announcement of job &
ends when applications are
submitted.
 The result is a pool of candidate from
which new employees are selected
Goals of Recruiting
 Attract qualified applicants
 Communicate the position so that they respond
 The more, the better
 Encourage unqualified applicants not to Apply

 Self select out
 Saves time, money
 The less, the better
Recruitment
Process
Alternatives to Recruitment
 Outsourcing
 Transfers responsibility to an external provider
 Provides Specialized services at lower cost
 Turnkey Solution
 Contingent Workers
 A provisional group of workers who work for an
organization on a non-permanent basis, also known as
freelancers, independent professionals, temporary
contract workers,
 Part-timers, temporaries, older retired workers, contract
employees, interns etc.
Alternatives to Recruitment
Overtime
 Most commonly used method of meeting short-term
fluctuations in work volume
 Employer avoids recruitment, selection, and training costs
 Employees gain from increased income
 Potential problems Fatigue, Work-life imbalance
Recruitment: Constraint & Challenges
 Organizational Image
 Government influence
 EEO, immigrants rules, pay policy, Quotas etc.
 Affirmative Action Plans- programs developed by employers to
undo the results of past employment injustices by actively
seeking, hiring & promoting minority group members and
women.
 Job Attractiveness
 Job Requirement
 Recruitment Costs
 Credential Barriers- imposing irrelevant prerequisites
(Qualifications, Qualities)
Recruitment: Constraint & Challenges
 Labor market Situation
 Appropriate recruitment channel selection
 Organizational Policies
 Compensation Policies
 Employment Status Policies
 Promotes from within policies
 Unemployment Rates and Labor Markets
 When the unemployment rate is high in a given market,
many people are looking for jobs. When the unemployment
rate is low, there are fewer applicants.
 Unemployment rates vary with business cycles
Labor Markets
Strategic Recruiting Decisions
Recruiting Presence
 Recruiting efforts can be:

 Continuous - offers the advantage of keeping the
employer in the recruiting market
 Intensive - Vigorous recruiting campaign aimed at

hiring a given number of employees in a short
period
Recruiting Image
 Employment brand: Image of the organization that is
held by both employees and outsiders
 includes experiences a candidate goes through during
the recruitment process, including:
 experience when they go to the company’s website
 acknowledgement thanking candidate who sends in a
résumé
 initial greeting by the receptionist
 ability of the
interviewer to articulate organization’s
values and culture
Recruiting and Diversity Considerations
Recruitment Sources and Methods
 Recruitment methods
 Means by which potential employees can be attracted to firm
 Recruitment sources
 Places where qualified individuals are found
Sources of Recruitment
Internal Sources & Methods
Promotions Job Postings
Transfers Skill
inventories
Employee referral
Promotion- vertical movement
Transfers- horizontal movement of employees
Job Posting- Internally job announcement
Employee referrals- announcements of
openings and requests for referrals are made on
the organization’s bulletin and posted on walls,
notice boards
new employees may come with a more realistic
picture of what working in the firm is really liked
Skill Inventories- Recruitment on the bases of
written record of employee maintained by
organization (employee personal file)
Advantages
 Builds morale
 Advertisement cost saving
 Reduced training cost
 Easier assessment of candidates as information
already available
 No orientation and socialization
Disadvantages
 Miss good outside talent
 Inbreeding - no new ideas
 Nepotism & Favoritism
External Recruitment Channels & Methods
 Employment Agencies  Job Fairs

- Private and Public  Professional Associations
 Unsolicited Walk-In  Universities & Colleges
Applicants
 Media advertising
 Internships
 Executive Search Firms
Employment Agencies - Public and Private
 An organization that helps firms to recruit employees and
aid individuals to locate jobs.
 Best known for recruiting white-collar employees.
However blue-collar employees need may also be
satisfied.
 One-time fee may discourage candidate
 Some private agencies deal primarily with firms that pay
fee/contract.
Executive search firms
 Special employment agencies to
seek out top-management talent
for their clients, also called
headhunters firms.
 Client pays expenses, as well as fee
Professional Organizations
 Recruitment and placement
services for members.
 Society for Human Resource
Management operates job
referral service
Competitors in the Labor Market
 Competitors in the Labor Market
 Used when relevant experience is needed
 Smaller firms look for employees trained by larger organizations
Also called as Poaching that is actively recruiting employees from
competitors
Job Fairs
 A single employer or
group of employers
attempt to attract a large
number of applicants for
interviews
 Meet a large number of
candidates in a short
time
 Job fairs offer lower cost
per hire than traditional
approaches
Internships
 Student on a temporary job to bridge gap from academia to
practice & usually to fill professional degree requirement
 No obligation to hire student permanently or for student to
accept a permanent position
 Used as a recruiting technique by offering students a
permanent job after completion of studies
Unsolicited Walk-In/Write-in Applicants

Reputation of being a good place to work attracts qualified
prospects to submit their application of job without invitation
Universities & Colleges
College and university students are a significant source of
entry-level professional and technical employees
Advertising
 A non personal paid communication method to public through
media such as news papers, internet, professional journals or
other sources.
 Types
• Classified Ads.
• Blind Ads
 Bad reputation
 Market testing
 Organization doesn’t want to disclose name
 Media
• Certain media attract more homogeneous audiences.
• Whatever medium is used, it should be tied to the relevant
labor market and should provide sufficient information on the
company and the job
• Should indicate how to respond
What to Include in an Effective Recruiting Ad
Online Job Ads
 www.ibp.org.pk
 http://www.akhbarpk.com
 http://paperpk.com
 http://www.pakpressads.co
m
 http://www.epaperpk.com
 http://www.pak.jobs-career-
employment.com/categories
/Jobs-by-Newspaper
 http://scanjobs.net/
Internet Recruiting
Internet Recruiting
Internet Recruiting
Social Networking Recruiting Advantages

•Allows job seekers to connect with employees of
potential employers
•Allows employers to engage in social collaboration by
joining and accessing social technology networks to
help applicants post resumes and complete
applications online
Methods and Sources of Recruitment for an
Information Technology Manager
Advantages and Disadvantages of External Recruiting
Lecture 5
Selection
Reference Books:
 Human Resource Management (Mondy)
 Robert L. Mathis, John H. Jackson
Why Careful Employment Function is Important
 Costly- Recruiting and hiring employees is costly. Time &

Resources Required
 Interdependent Behavior- Organizational performance always
depends in part on subordinates having the right skills and
attributes
 Legal Consideration-The legal implications of incompetent
hiring, EEO, pay limits, Quotas etc.
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible We b site, in whole or in part.
Selection
 Theprocess of choosing best suited candidate from a
group of applicants for a particular position in an
organization.
– Process used to decide which of the recruits should be hired.
Recruitment + Selection= Employment Function
Selection
“Hire hard, manage easy.” The investment of time and effort

in selecting the right people for jobs will make managing
them as employees much less difficult because many
problems are eliminated.
“Good training will not make up for bad selection.” When people
without the appropriate aptitudes are selected, employers will
have difficulty training them to do those jobs that they do not
fit.
Selection
Typical Division of HR Responsibilities
Selection
Job Performance, Selection Criteria, and Predictors
Approaches for Combining Predictors
 Multiple hurdles
– Minimum cutoff is set on each predictor
– Each minimum level must be passed
 Compensatory approach
– Scores from individual predictors are added combined into an
overall score
– Allows a higher score on one predictor to offset, or compensate
for, a lower score on another
Validity & Reliability
 Validity- the accuracy with which a test, interview, and so on
measures what it purports to measure or fulfills the function it was
designed to fill.
– Does the test actually measure what we need for it to measure?
– Methods of establishing validity
– Concurrent validity: Measured when an employer tests current
employees and correlates the scores with their performance
ratings
– Predictive validity: Measured when test results of applicants are
compared with subsequent job performance
 Reliability– refers to the extent to which a selection technique
achieves consistency in what it is measuring over repeated use.
– When a person takes two alternative form of same level tests and
scores same marks then the test would be called reliable
Selection Process Flowchart
Initial Screening Selection Process
Purpose of initial screening is to eliminate those who obviously do not
meet the position’s requirements.
Review of applications and review of résumés
 Résumé- Goal-directed summary of a person’s experience,
education, and training developed for use in the selection process
– Professional/managerial applicants often begin selection process by
submitting résumé
– Concept of relevancy is crucial in selling the applicant to the
company
 Application blanks- It collects essential information in standardized
& uniform format.
– record of the applicant’s desire to obtain a position
– Critical aspects & provides the interviewer with a profile of the
applicant that can be used during the interview
– Judge the presence or absence of certain job-related attributes
Initial Screening Selection Process
– Application Disclaimers - appropriate legal protections are clearly

stated. These recommended disclosures include:
– The applicant certifies, agrees/authorizes
 Employment-at-will
 Reference contacts
 Employment testing
 Application time limit
– Information falsification: Conveys to an applicant that falsification of
application information can be grounds for serious reprimand or
termination
– It also serve as a basic written employee record for applicants who
are hired
Application blanks
Initial Screening
Selection Process
Purpose is to eliminate those who obviously do not meet the position’s
requirements.
 Electronic assessment screening
 A Preliminary short test may be administered
– Intelligence Quotient Tests
– Aptitude Tests
– Personality and Interest Tests
– Language Proficiency Test
 Preliminary Interview
– Screening questions to understand individual KSAs
– Ask few few straightforward questions to determine if there is a
match between individual and the position.
– May qualify to work in other open positions.
Initial Screening
Selection Process
Immigration Verification
– It is illegal to knowingly hire employees who are not in the country
legally.
– The consequences for offending businesses are high
– Businesses are required to review and record identity documents,
(such as CNIC, passports, and visas,) and
– to determine if they appear to be genuine.
 Registered alien
 Illegal alien
Red flag- Warning signs that may require further investigation. Potential
problem areas concerning the applicant
– Time gaps in employment
– Vague answers
– Vague reasons for leaving previous jobs
– Inconsistencies
© 2011 Cengage Learning. All rightsin salary
reserved. May not be history
scanned, copied or duplicated, or posted to a publicly accessible We b site, in whole or in part.
Short listing
Selection Process
Applicants having no red flag entry, duly completed forms & fulfilling
job requirements are short listed for further process.
 Test Call/Advertisement/Announcement
– To inform candidates about date, venue, type of test & other general
instructions regarding test.
– By Post/E-mail
– Phone call
– News papers
– Website
– Circular/memorandum
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied15
or duplicated, or posted to a publicly accessible We b site, in whole or in part.
Employment Selection Tests Selection Process
– Reliable and accurate means of selecting qualified candidates

– Identify attitudes and job-related skills that interviews cannot
recognize
 Characteristics of Properly Designed Employment Tests
– Standardization: Uniform procedures and conditions when
administering test
– Objectivity: Everyone scoring a test obtains same results
 Types of Employment Selection Tests

– Cognitive aptitude
– Psychological Tests
– Physical Ability Tests
– Psychomotor abilities
– Job Knowledge
– Performance Simulation Tests.
– Personality
– Attitude & honesty Tests
 Graphoanalysis
 Polygraphs
Employment Selection Tests
 Cognitive Aptitude Test- measures individual’s thinking, general

reasoning, memory, vocabulary, verbal fluency, and mathematical
abilities.
– Scores are reflective of a candidate's ability to acquire, retain,
organize and apply information.
– Perform effectively
– Learn new tasks and apply knowledge faster
– Solve complex and unusual issues
– Respond well to training.
A compelling and long-standing body of research proves that cognitive

ability tests are the most powerful predictor of future work
performance.
candidates with higher levels of cognitive ability are more likely to
perform
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be scanned, levelor posted
copied or duplicated, ontothe job.
a publicly accessible We b site, in whole or in part. 18
Free Cognitive Ability Test
https://www.jobtestprep.co.uk/free-cognitive-test
 Psychological Tests- measure
personality traits, temperament &life
style etc.
 Physical Ability Tests- measure an
individual’s abilities such as
strength, endurance, and muscular
movement
 Psychomotor abilities Tests-
measure dexterity, hand–eye
coordination, arm–hand steadiness,
and other factors
 Job-Knowledge Tests- Tests
designed to measure a candidate's
knowledge of the duties of the job for
22
which he Learning.
© 2011 Cengage or she isreserved.
All rights applying.
May not be scanned, copied or duplicated, or posted to a publicly accessible We b site, in whole or in part.
 Performance Simulation Tests- measure the ability of
applicants to perform the actual work for which they are hired.
performance simulation tests are administrated to assess candidates in
number of dimensions
Produces high validity, reduces adverse impact & more acceptable
– Work Sampling- require an applicant to perform a simulated task or
set of tasks representative of the job
– Assessment Centers- is a selection approach that requires individuals
to perform activities similar to those they might encounter in an
actual job.
The assessment center is one of the most
powerful tools for assessing managerial
talent because it is designed to determine
if they will be effective in performing a
© 2011 Cengage Learning. Allspecific 23
job.
rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible We b site, in whole or in part.
Personality Tests
Big Five Personality Characteristics
The Big Five Personality Test (TRUITY)

https://www.truity.com/test/big-five-personality-test
 Graphoanalysis- Graphology (handwriting analysis)
– In US many view handwriting analysis as similar to psychic
readings or astrology
– However Europe it is assumed that handwriting reflects basic
personality traits
– In Europe, however many employers use it to screen and place job
applicants
Handwriting Exhibit Used by Graphologist

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible We b site, in whole or in part. 25
Honesty/Integrity Tests
Reduces the frequency of lying and theft on the job
– Communicates to applicants the intolerance toward dishonesty
– Polygraphs- A mechanical device that measures a person’s galvanic
skin response, heart rate, and breathing rate
– Employee Polygraph Protection Act - Prohibits the use of polygraphs
for pre-employment screening
Employment Interview Selection Process
– Formal in-depth goal-oriented conversation in which an

interviewer and an applicant exchange information.
– Probe areas, not accessed by application forms or employment
tests
– Clarify information gathered throughout the selection process.
– Traditionally not considered as valid predictors of success on
the job due to their inherently subjective nature.
The potential of interviewers must be maximized for identifying

qualified persons and minimize errors.
Commonly conducted at two levels:
Assessing the
Initial screening In-depth selection
qualifications
interview interview
of applicants
Interview Planning
– Physical location of the interview should be both pleasant and

private
– Develop a job profile based on job description/specification
– Questions should be prepared that relate to the qualities
needed
Content of the Interview
– Occupational experience
– Academic achievement
– Interpersonal skills
– Personal qualities
 Provide information about:
 Company
 Job
 Expectations
 Realistic job preview- Process through which a job applicant

receives an accurate picture of a job
Conveying both positive & negative in-depth job information to the
applicants in order to remove unrealistic expectation.
Format of Interviews
 Unstructured Interview-A meeting with a job applicant in

which questions are made-up during interview. Unplanned
 Structured Interview- A process in which an interviewer

consistently presents the same series of job-related questions to
each applicant for a particular job.
 Mixed Interview- Combination of different type of interview.
Type of Interviews
 Stress interview-A form of
interview that intentionally
creates anxiety to determine how
a job applicant will react in
certain types of situations.
– The stress interviewing – The interviewer may try to

technique is typically used for stress you in one of several
positions in which the job- ways, such as asking four or
seeker will be facing stress on five questions in a row, acting
the job, and the interviewer rude or sarcastic, disagreeing
wants to see how well you can with you, personal, religious
handle the pressure. and indecent queries or
simply keeping you waiting
for a long period.
Type of Interviews Give me a specific
example of a time Describe a time when
when you had to you were faced with a
conform to a policy stressful situation that
with which you did demonstrated your
not agree coping skills.
 Behavioral interview
A interview where applicants
are asked to recall actual
incidents from their past that
are relevant to the targeted
job to probe the candidate’s
approach
Past behavior is best predictor of future behavior

Type of Interviews
A deadline for a project is near
A customer comes in and it looks like you won’t meet
angry and upset mood. the deadline. How would you
How would you handle handle this?
this situation?
 Situational interviews
Job-seekers are asked to respond to
a specific situation they may face
on the job. These types of
questions are designed to draw out
more of your analytical and
problem-solving skills, as well as
how you handle problems with
short notice and minimal
preparation.
Methods of Interviews
 One-on-One Interview-The applicant meets one-on-one
with an interviewer.
 Group Interview- Several applicant interact in the
presence of one or more company representatives
 Board/Panel Interview-A meeting in which one
candidates is interviewed by several representatives of a
company.
Guidelines for Conducting an Interview
 Selection of interviewer
– Interviewer should be unbiased, rational, trained,
– must posses analytical skills & knowledge of job for which
interview is conducted,
– empathy and good communication skills.
 Plan the Interview
– Develop the out line of interview
– Assure greater reliability & consistency to make sure that you are
asking questions that provide real insight into how the person
will perform on the job
– Use rating scales to rate answers
– Take brief notes during the interview
– Do listen to the candidate to encourage him or her to express
thoughts fully
Problems/Errors in the Interview
 Interviewer domination
 Premature judgments/ Snap Judgment
 Lack of training
 Similar to me effect
 Central Tendency
 Stereotyping- Judgment of someone on the bases of one’s
perception of the group to which that person belongs
Problems in the Interview
 Contrast Effects- Interviewer doesn’t evaluate person in
isolation, His reaction is usually influenced by others persons
who are recently encountered,
– for example, an interviewer meets with several poorly qualified
applicants and then confronts a mediocre candidate. By
comparison, the last applicant may appear to be better qualified
than he or she actually is
 Halo Error- Drawing a general impression about an individual
on the bases of single or very few positive characteristics.
Reverse of Halo is Horn error or devil’s horn
Selection Process
References and Background Investigations
 Previous employer
 Current employer
 Education verification
 Personal reference check
 Criminal history
 Driving record
 Civil litigation
 Workers’ compensation history
 Credit history
Selection Process
Medical Examination
 Examination to determine an applicants physical fitness
for essential job performance.
– To verify that the applicant meets the physical requirements of
the position
– To discover any medical limitations you should take into
account in placing the applicant
– To establish a record and baseline of the applicant’s health for
future insurance or compensation claims
– To reduce absenteeism and accidents
– To detect communicable diseases that may be unknown to the
applicant
Selection Process
References and Background Investigations
 Negligent hiring- Occurs when an employer fails to check an
employee’s background and the employee injures someone on
the job
 Negligent retention- Occurs when an employer becomes
aware that an employee may be unfit for work but continues to
employ the person, and the person injures someone
 Supervisory Interview- Specific job related questions are

asked generally before taking hiring decision
Hiring Decision- Person whose qualification, experience &

performance are most closely conform with requirements of the
open position is selected
Making the Job Offer
 Given over the telephone
 Formalized letter is then sent to the applicant
 Offer document should be reviewed by legal counsel
 Terms and conditions of employment should be clearly
identified
 Selected candidate should:
– Sign an acceptance of the offer
– Return the signed acceptance to the employer
– Employer should place it in the candidate’s personnel
files
Questions Frequently Asked During The Employment Interview
– Introduce your self?

– Why do you want to work for
our company?
– Do you have any geographic – Do you like to travel?
preferences? – How long do you expect to work?
– Why did you select your college – What would you do if you are failed to
major? get this job
– What is your major weakness? – What do you know about our
Strength? company?
– What are your career goals? – What are your ideas about salary?
– Why should we hire you for our – How interested are you in sports?
company? – General knowledge/Current affairs
– What job skills do you have? – What's your father income/profession ?
– How do you spend your spare – Your internship
time? What are your hobbies? – Tell me a story/joke, sing a song
– Your last job? – Your favorite book/ writer/ movie/
sport/actor etc.
– What's your favorite subject & why?43
Preparation Before the Job Interview for Candidate
 Thorough preparation is essential. Go through the following
steps to ensure success at the interview:
– Understand yourself (a rational self-assessment of your strengths
weaknesses is a must)
– Know details about the available position (review how your skills
relate to the open position)
– Do home work on company (visit company website & analyze the
firm)
– Speak with insiders (learn from alumni, from other familiar with
the company
– Rehearse possible questions (brainstorm issues, questions)
– Plan to look good
Orientation,
Socialization and
Career Related Issues
References:
Fundamentals of Human Resource Management 8 th Ed. (DeCenzo and Robbins)
Internet
Resource person: Badar Zaman Qureshi

Orientation
Programs/Activities that familiarize new
employees with their roles, organization, its
policies and employees.
 History  Employer-provided
 Visits of Departments Services
 Hierarchy  Retirement programs
 Probationary period  Supervisors, Coworkers
 Disciplinary regulations  Location
 Policies & Rules  Job Safety requirements
 Pay scales  Overview of job
 Vacations
2
A successful orientation should accomplish four
things for new employees:
Make them feel welcome and at ease.

Help them understand the organization in a
broader sense.
Make clear to them what is expected in terms of
work and behavior.
Help them begin the process of becoming
socialized into the firm’s ways of acting and
doing things.
3
Socialization
The process by which an employee adapts to an
organization by understanding and accepting its
values, norms and beliefs held by others.
Outcomes
Socialization Process
Productivity
Pre-arrival Encounter Metamorphosis Commitment
Turnover
“Loneliness and a feeling of isolation are not

unusual for new employees. Special attention
is needed to put them at ease”.
4
Stages of Socialization
1. Pre-arrival Stage-
Explicitly recognizes that
each individuals arrives in
an organization with a set
of values, attitudes and
perception about
organization
2. Encounter Stage –
Individuals confront with
difference between their
organizational expectations
& reality.
3. Metamorphosis Stage-
New employee copes with
problems discovered
during encounter stage
5
Employee Placement
 Placement is assignment or reassignment of an

employee to a new job/new work settings.
 Three major classes of placement decision are
1. Promotion
Promotion
2. Transfers
3. Demotions Separation Transfer
Demotion 6
Career Planning and Development
 Career- A career is all the jobs/work related experiences that are
held during one’s working life. The sequence of positions that a
person has held over his/her life.
 Career path - Flexible line of movement through which an
employee may move during employment with a company
 Career Goals- Future objectives/positions one strives to reach
as part of a career.
 Career planning- Career planning is the process by which one
selects career goals and the path of these goals.
 Organizational Career Planning- Firm identifies paths and
activities for individual employees as they develop.
7
 Career Development -. the study of career development
looks at:
i. how individuals manage their careers within and between
organizations and,
ii. how organizations structure the career progress of their
members, it can also be tied into succession planning
within some organizations.
 Job security - Protection against job loss within company
 Career security - Development of marketable skills and
expertise that helps ensure employment within a range of
careers.
 Career Counseling It assists students/ employees in finding
appropriate career goals & paths by taking into
consideration of their interests, personality, psyche & KSA
etc. 8
 Traditional Career
Sequence of positions held within an occupation

Context of mobility is within an organization
 Protean Career
It consists of all of the person's varied experiences

in education, training work in several
organizations, changes in occupational field, etc.
11 - 9
Traditional Career Stages
Stage
Exploration
Establishment
Mid-Career
Late Career
Decline
10
Traditional Career Stages
1. Exploration Stage- A career stage that usually
ends in mid-twenties as one makes the transition
from school to work.
 Involves:
 trying out different fields
 discovering likes and dislikes
 forming attitudes toward work and social relationship
patterns
 Includes school and early work experiences, such as
internships
11
2. Establishment Stage- Stage in which one begins to
search for work and finds a first job.
 Includes:
 search for work
 getting first job
 getting evidence of “success” or “failure”
 Takes time and energy to find a “niche” and to

“make your mark”.
3. Mid Career Stage- A career stage marked by continuous
improvement in performance, leveling off in performance
or beginning decline of performance. Person may face
threats to his/her position from younger, better-trained and
more aggressive employees. 12
 Plateaued mid-career- Plateaued but may not failed
in mid career. Even can be more productive,
committed, loyal but not ambitious as climbers.
4. Late Career- Stage in which individuals are no
longer learning about their jobs nor expected to
outdo levels of performance from previous years.
 Successful “elder states persons” can enjoy
being respected for their judgment. Good
resource for teaching others.
 Those who have declined may experience job
insecurity.
 Off the job life increases in importance. 13
5. Decline Stage- The final stage in one’s career, usually
marked by retirement/death.
 May be most difficult for those who were most successful
at earlier stages.
 Today’s longer life spans and legal protections for older
workers open the possibility for continued work
contributions, either paid or volunteer.
14
Successful Career Tips ?
 Know Yourself
 Manage your reputation
 Job Performance
 Build & Maintain Network
 “If you don’t have a plan
Contacts
 Keep Current
for yourself you’ll be a
 Balance your specialist &
generalist competencies
part of someone else’s”
American Proverb
 Document your Achievements
 Keep your options open  Having a plan does not mean auto
 Resignations success
 T&D  Need to have good performance,
 Exposure experience, education, faith,
planning and preparation 15
Lecture # 8
Training &
Development
Reference Books:
Internet

Functions of HRM
1.Staffing
2.Human Resource
5.Employee Development
•Socialization/orientation
& Labor •Career P&D
Relations Functions •T&D
of Personnel •Performance
Policy/HRM Appraisal
4.Safety & 3.Compensation

Health & Benefits
2
Training and Development
 Training and Development (T&D) - Efforts
designed to improve employee’s competency and
organizational performance.
 Training - Designed to provide employees with the
knowledge and skills needed for their present jobs.
 Job oriented and vocational in nature. Short term activity

designed especially for operatives.
 It is mainly the initiatives of the management
 It aims to meet the current requirements of the job and the

individuals and is a reactive process. 3
 Development –
Activities that prepare employees for future
responsibilities. Future-Oriented activities that
focuses on employee personal growth.
 Development is concerned with a broader subject
matter. It comprises all learning experiences, both
on and off the job, including formal, classroom
training.
 Its growth oriented & enables employees to attain
higher positions.
4
Education-
 According to Reid and Barrington education aims at
developing KSA in all aspects of life rather than a
knowledge or skill relating to only a limited field of
the activity.
 Education is the process by which society deliberately
transmits its accumulated knowledge, skills and
values from one generation to another.
5
Learning
 is a behavioral process which is continuous from birth to

death. It is composed of informal as well as formal phases.
Learning from talking, walking, running, learning to operate
a computer, fly a plane to socialize, to lead a group, to move
an idea....the list is infinite and touches upon all that we
acquire from birth to death.
Training, development and education is essentially about

'making learning happen'.
6
However, many organizations and
managers use the term education and
development interchangeably. What is
important to note is that training is
aimed at meeting present requirements
of the organization and education and
development can be construed as relating
to future requirements.
7
Balance for New Employee
Orientations
Socialization
T&D Productivity
Career P&D
New Employee
Job Demands
Capabilities
8
Factors Influencing T & D
 Changes in organizational structure caused by mergers,
acquisitions, rapid growth, restructuring
 Change in procedures, new products etc.
 Changes in technology
 Need for more highly skilled workers
 Increased emphasis on learning organizations
 Globalization
 Leadership Needs
 Quality emphasis
 Changing Demographics & Diversity of workforce
9
The Training and Development Process
1. Need Assessment
2. Establish specific objectives
3. Selecting T&D Contents & methods
4. Implement T&D programs
5. Evaluate T&D programs
10
1. Need Assessment
 Need assessment diagnoses current problems and
future challenges to be met through T&D.
 Organizational Analysis
 Task Analysis
 Person Analysis
 Number of employees experiencing skill deficiency

 Severity of skill deficiency
 Importance of skill
 Extent to which skill can be improved with training
 Cost and Benefit Analysis
11
Sources of Information for Needs Assessment
 Need assessment is directed to find out gap
between actual and desired Results.
 Gap analysis: Indicates the distance
between current and desired employee
capabilities
13
2. Establishing T & D Objectives
 Desired end results
 Clear and concise objectives
must be formulated
 Benchmarks
 SMART
14
3. T & D Methods
Two Broader categories
1. On Job Training (OJT)
takes place in a normal working situation, using
the actual tools, equipment, documents or
materials that trainees will use when fully trained.
2. Off-the-job training takes place away from
normal work situations — implying that the
employee does not count as a directly productive
worker while such training takes place. Off-the-job
training has the advantage that it allows people to
get away from work and concentrate more
thoroughly on the training itself 15
T & D Methods
 Apprenticeships- learning
from more experienced
employee/supervisor.
• Supplemented with off-the-job
classroom training.
• Assistantships & committee
assignments.
• HRD Directed and Formal
16
 Coaching- Similar to apprenticeships
but less formal.
• Provided when needed without planned
programs
• Handled by Supervisor/manager not by
HR Deptt.
• Coach provide a model for trainee to
copy.
 Mentor: a trusted friend, counselor or teacher,
usually a more experienced person. Mentorship
refers to a developmental relationship in which
a more experienced person helps a less
experienced person, referred to as a protégé,
apprentice, mentee, or (person) being
mentored, develop in a specified capacity.
Mentor can be anywhere in organization or
17
even in another firm
 Informal Learning-
• A research finding shows that as much as 80% of
what employee learn through informal training
means by performing their job on routine bases.
 Job Redesign
• Job enlargement “adds more things to do”
• Job enrichment “adds more responsibility”
• Job rotation “ employee is moved from one
department to another”
 Internship 18
 Lectures- learning through
communication rather then modeling.
• Depends upon lecturer ability
• Television, Films, Multimedia,
Audiovisuals etc.
 Work shop- A period of discussions and
practical work on a particular subject in
which people share their knowledge and
experience.
• Workshops are practical approach to discuss,
discover or handle a given situation.
• Practical approach dominates rather then
theoretical work.
19
 Seminars
• Meeting to discuss or study a particular topic with a
presenter
• Seminar are learning from others/shared experience.
• Seminars are means of exploring specific topic by
different aspects through, discussions, speeches &
reports.
• Increasingly, the term "seminar" is used to describe a commercial event (though
sometimes free to attend) where delegates are given information and instruction in a
subject such as property investing, other types of investing, Internet marketing, self-
improvement or a wide range of topics, by experts in that field
 A seminar may be a large lecture course, especially
when conducted by a renowned thinker (regardless
of the size of the audience or the scope of student
participation in discussion). 20
Seminar vs. Workshop
21
 Role Playing- Methods that forces trainees to
assume different identities.
• Performing a role as some one wants to perform
it ideally or want to see others performing same.
• It refers to the changing of one's behavior to
assume a role. .
 Behavior Modeling- Learning takes place
mainly through observation of others
experience.
• Watching some one perform a behavior,
learning through copying, matching it &
rehearsing
22
 Case Study
• Trainees solve business problems
• Individuals study information in case and make
decisions
• Used in classroom with instructor who serves as
facilitator
 Simulators
• Training devices that model the real world
• Range from simple paper mock-ups of mechanical
devices to computerized simulations of total
environments
• May simulate automobiles and airplanes 23
24
 Business Games-
• Computer or non computer (board) games that attempt to
duplicate selected factors in a particular business situations.
The players receive different roles like salesman, CEO,
customer etc.
 Action Learning (OJT)
• A training whereby the participants study their own actions
and experience in order to improve performance. This
concept is close to learning-by-doing. .
 Conference
An academic/professional conference is a conference for
researchers/experts to present and discuss their work.
Together with academic/professional or journals,
conferences provide an important channel for exchange of
25
information between researchers/experts.
26
4. Implement T & D Program
Climate for
transfer
Opportunity to use Technological

learned capability Support
Implementation
of
Training
Self-management Manager support
skills
Peer Support
27
5. Evaluating T & D Program
 Participant’s opinions
 Extent of learning
 Behavioral change
 Tests
 Accomplishment of T&D objectives
 Benchmarking
28
Performance Based Evaluation Methods
1. Post Training Performance Method:
Evaluating training programs based on how well
employees can perform their jobs after training.
2. Pre-post Training Performance Method:
Evaluating training programs based on the
difference in performance before & after training.
3. Pre-post Training Performance With Control
Group Method:
Evaluating training by comparing pre-post training
results with other individuals.
29
Training Evaluation Metrics
 Cost-benefit analysis: A comparison of
costs and benefits associated with
organizational training efforts
 Return on Investment (ROI) Analysis
 Benchmarking
Calculating Training Costs and Benefits
1. Determine overall
training costs
2. Identify potential
sav ings results
3. Compute potential
sav ings
4. Conduct costs and sav ings

benefits comparison
Possible Costs and Benefits in Training
Chapter # 9
Compensation
Reference Books:
Human Resource Management (Dessler)

Why Work?
To get Compensated
Compensation
Is that money only…..?
Total of all rewards given to employees in return for their

services.
Compensation
Direct financial compensation-Pay received in the form of
wages, salaries, bonuses, and commissions
Base Pay
 Salary- A form of periodic payment from an employer to an
employee, which may be specified in an employment contract
or Fixed income of white collar or executives over a period of
time.
 Wage- A payment for labor or services usually according to
contract and on an hourly, daily, or piecework basis. Wage
earners often have to give up pay for leaving early, coming in
late, missing a day, or taking a vacation or Fixed wages of blue
collar or manual worker over a period of time
 Increment- Performance or seniority based additions in base bay. Also
included Cost-of-Living Adjustments
Salary Slip
Direct financial compensation Compensation
Commission- Variable pay on sales.
Bonuses- reward for performance (one-time), not added in base
pay. Either seniority based or Merit Bonus*
 enable companies to control the cost of direct compensation by not
adding pay increases to base pay on a permanent basis
 Spot bonuses- relatively small monetary gifts to employees for
outstanding work or effort during a reasonably short period of
time.
Incentive Pay- rewards employees for partially or completely

attaining a predetermined work objective.
 Often fluctuates according to a pre-established formula, individual
or group goals, or company earnings.
 Employees usually receive a combination of recurring base pay and
incentive pay
* Most organizations use currently
Direct financial compensation Compensation
Individual Incentive Plans Group Incentive Plans

 Piecework  Gain sharing
 Management Incentive Plans
 Behavioral Encouragement Plans
 Referral Plans
Indirect financial compensation- All financial rewards not

included in direct compensation (Fringe Benefits e.g. paid
vacation and medical care.).
Nonfinancial compensation- Satisfaction a person receives
from job itself or from work environment
Components of a Total Compensation
Compensation
Another approach of classifying Compensation
Intrinsic rewards- satisfaction derived from the job itself,

such as pride in one’s work, feeling of accomplishment or
being part of a team.
Extrinsic reward- Benefits provided by the employer
usually money, promotion or benefits.
Equity and Its Impact on Pay Rates
 Description- Pay should be based upon contributions made
by the Employees.
 Higher effort should be rewarded with higher pay.
 Application to Compensation
 Pay should be tied to the performance level of individual
Employee
The Equity Theory of Motivation

If a person perceives an inequity, the person will be motivated to
reduce or eliminate the tension and perceived inequity.
Equality-Compensation of employees on a unified way, regardless of

their performance
Equity in Financial Compensation
Equity- Fair pay treatment for employees
 External equity - Firm's employees are paid comparably to
workers who perform similar jobs in other firms.
 Internal equity - Exists when employees are paid according to
relative value of their jobs within same organization.
 Individual Equity - How fair an individual’s pay as compared

with what his/her co-workers are earning for the same/very
similar jobs within the company.
 Procedural equity- The perceived fairness of the procedures to
make decisions regarding the allocation of pay.
Equity Perceptions
Outcomes Outcomes

Inputs Inputs
Person A Person B
Outputs Outputs Under-reward

Inputs
< Inputs
Outputs Outputs
Inputs
= Inputs
Equity
Outputs Outputs Over-reward

Inputs > Inputs
Pay Compression- A salary
inequity problem, generally
caused by inflation, resulting
in longer-term employees in a
position earning less than
workers entering the firm
today.
Methods to Address Equity Issues
 Salary surveys- to monitor and maintain external equity.

 Job analysis and job evaluation- to maintain internal equity,
 Performance appraisal and incentive pay- to maintain
individual equity.
 Communications, grievance mechanisms, and employees’
participation- to help ensure that employees view the pay
process as transparent and fair.
Determinants of Individual Financial Compensation
Contextual influences on Direct
Financial Compensation
 Labor Market- consists of potential employees located within
the geographic area from which employees are recruited.
 Labor unions- mandatory collective bargaining between
management and unions on “wages, hours, and other terms and
conditions of employment”.
 Spillover effect- nonunion firms generally offered similar or higher
compensation to reduce the chance that employees would seek
union representation
 Economy- in depressed economy labor supply>labor demand
resulting lower rates & vice versa
 Inter-industry Wage Differentials- pattern of pay and benefits
associated with characteristics of industries.
 Legislation- Federal and state laws can also affect the amount of
compensation a person receives and how that amount is determined.
Build Job Structures Using Job Evaluation
 Job structure- an ordered set of jobs that represents the job

structure or hierarchy.
 higher the requirement “qualifications, responsibilities, and
complex job duties the greater the compensation is.
 HR Processionals use Job evaluation process to determines the
relative worth of one job in relation to another to eliminate pay
inequities.
 Among the four traditional job evaluation methods the Ranking &
Classification are Non-quantitative and Factor comparison, and
Point are Quantitative
 Ranking/Ordering Method- Ranking job worth according to its

value to the company from lower to higher by examining the
description of each job.
 simplest of the four job evaluation methods.
 Classification/grading Method- involves defining a number of
classes or grades to describe a group of jobs.
 the raters compare the Job descriptions with the Class descriptions
that reflect the differences between groups of jobs at various
difficulty levels.
 The class description that most closely agrees with the job
description determines the classification for that job.
 Point System- looks at compensable factors in a group of similar jobs
derived from job analysis and reflect the nature of different types of
work performed in the organization and places weights, or points, on
them.
 Assigning numerical value to specific job components and sum of these
values provides a quantitative assessment of job worth.
Examples of Compensable Factors for Different Job Families in a Hotel
Point System
 Factor Comparison method- assumes that there are five

Universal Job Factors consisting of mental requirements, skills,
physical requirements, responsibilities, and working
conditions;
 Mental requirements
 Skills
 Physical requirements
 Responsibilities
 Working conditions
 Raters creates a monetary scale, containing each of the five
universal factors, and ranks jobs according to their value for
each factor.
Factor Comparison method
May be called combination of ranking and point system.

Competitive Compensation Policies
 Policies that provide general guide-line for making

compensation decision.
 Pay level compensation policies- determine whether the company
will be a pay leader, be a pay follower, or strive for an average
position in the labor market.
 Pay leaders– pay higher wages and salaries then competing
firms.
 Attracts better employees
 Minimizes voluntary turnover
 Fosters strong culture and competitive superiority
 Additional compensation costs
Pay level compensation policies
 Market Match– pay what most employers pay for same job
 Quality of human resources at midrange of market-driven
compensation costs
 Does not attract higher performers
 Turnover will vary with labor demands of competing firms
 Pay followers– pay below market rate because of poor financial
condition or believe they do not require highly capable
employees
 Lower compensation costs
 Useful in labor markets where unemployment is high
 Lower-quality employees
 Low morale/job satisfaction
 Higher turnover; especially among high performers
Pay level compensation policies
 Pay Mix compensation policies- the combination of direct and

indirect financial compensation and employee benefits
components that make up an employee’s compensation
package.
 The combination depends the relative value of the jobs
Ability to Pay
Organization’s assessment of
its ability to pay is also an
important factor in
determining pay levels.
Pay Structures
 Pay Structures- represent pay rate differences for jobs of

unequal worth and the framework for recognizing differences
in employee contributions.
 Based on compensation survey work that involves the collection and
subsequent analysis of competitors’ compensation data.
 These surveys traditionally focused on competitors’ wage and salary
practices but employee benefits have more recently also become a target
 Job Pricing- In pricing jobs, job evaluation worth is matched with
labor market worth using Compensation Surveys
 Pay grades- Grouping of similar jobs to simplify pricing jobs
 Wage curve- Fitting of plotted points to create a smooth
progression between pay grades
 Pay ranges- Minimum and maximum pay rate with enough
variance between the two to allow for a significant pay difference
Scatter Diagram of Evaluated Jobs Illustrating Pay Structures
the Wage Curve, Pay Grades, and Pay Ranges
Average Pay per Hour (Current Rates or Market Rates)
$19.80
5
18.50 4
17.20 3
15.90 Pay Ranges for

2
Pay Grades
14.60
14.00 1
13.30
12.90
12.00
100 200 300 400 500
Evaluated Points
1 2 3 4 5
Pay Grades
Evaluated Points Pay Grade Minimum Midpoint Maximum
0- 99 1 $12.00 $13.30 $14.60
100-199 2 13.30 14.60 15.90
200-299 3 14.60 15.90 17.20
300-399 4 15.90 17.20 18.50
400-500 5 17.20 18.50 19.80
Pay Structures
 Broadbanding– Consolidating salary grades and ranges into just a

few wide levels or “bands,” each of which contains a relatively wide
range of jobs and salary levels to improve effectiveness.
Broadbanding and Its Relationship to Traditional Pay Grades and Ranges

How Employers Establish Pay Rates
 Conduct a salary survey of what other employers are

paying for comparable jobs.
 Benchmark job: A job that is used to anchor the
employer’s pay scale and around which other jobs are
arranged in order of relative worth.
 Employee committee determines the worth of each job in
your organization through job evaluation
 Group similar jobs into pay grades
 Price each pay grade by using wage curves
 Fine-tune pay rates

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Lecture 1

Resource Person: Badar Zaman Qureshi

A universal process of getting activities

aim of Management is to achieve organizational goals in an

and decision Organizing

• Human resources Goals attained

The design of formal systems in an

Human Resource Management helps in

Goa l - ori e n t e d p roc e s s t o e n s u re orga n i z a t i ona l p roc e s s e s

 Safety involves protecting employees from injuries

 Deals with employee employer relationship &

 All HR M functions are interrelated so that each

Equal Employment Opportunity,

USA Context - EEO Legislation, Supreme Court decisions, and

 The concept has undergone much modification and fine-tuning

Pakistan is signatory of international agreements and conventions

 ILO Discrimination (Employment and Occupation) Convention,

The existing workforce around the world is changing,

 Marital and family status  Matures (born before 1946)

In addition, individuals can be multicultural and be included

Benefits of Workforce Diversity

Human Resource Management (Mathis)

Human Resource Management (Mondy)

Resource Person: Badar Zaman Qureshi

Vision - is sometimes called a picture of your company in

 The linking of HRM with strategic goals and objectives in

 Involves formulating and executing HR systems—HR

Estimates either top-down or bottom-up, but essentially

relies on general guidelines applied to a specific

Regression scatter plot

Regression analysis- The Relationship of Sales Volume to

Trend analysis- study of a firms past employment needs

Patients: Doctors = 4:1

 Whichever forecasting tool you use, managerial judgment

Manual systems and replacement charts Computerized skills inventories

 Based on the forecasts for labor demand & supply, the

 Determining expected shortages & surpluses allows the

Retrained Turnover New external

 When implementing HR strategy, the organization must hold

 Regular progress reports should be issued.

 The evaluation of results should not only look at the actual

On April 3, 1996, a United

Job design, & Job Analysis

Resource Person: Badar Zaman Qureshi

Job Design- organizing tasks, duties, responsibilities, and other

 Lower productivity  Sabotage

Three major reasons for Job design

 Job design can influence performance in certain jobs

 Job design can affect job satisfaction.

 Job design can impact both physical and mental health.

Task identity- the extent to which the job includes a “whole”

Autonomy- the extent of individual freedom and discretion in the

Feedback- the amount of information employees receive about how

 Job enlargement “adds more things to do”

 Job enrichment “adds more responsibility”

 A job- a grouping of the tasks, duties, and

 Job families- group of jobs into or groupings of jobs that

 Position - Collection of tasks and responsibilities

 Job description – document providing information

 When the organization is founded

 When new jobs are created

 When jobs are changed significantly as a result of

 Job’s actual duties and responsibilities