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TABLE OF CONTENTS 1. 1.1 Introduction What is Management? Page No. 7 7
2 1.2 1.3 1.4 1.5 1.5.1 1.5.2 1.5.3 126.96.36.199 188.8.131.52 1.5.4 1.5.5 1.5.6 1.7 2. 2.1 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 2.2.7 2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.4 2.5 2.6 2.7 2.8 2.9 2.9.1 2.9.2 2.9.3 2.9.4 2.9.5 2.9.6 2.9.7 2.10 2.10.1 2.10.2 2.10.3 3. Managerial Process Management Unit as a System Transformation Process and Elements of Managerial Process Main Items of Management Planning Function Organization Directing Motivation Managerial Leadership Managerial Communication Controlling Performance Appraisal Decision-Making The Role of Human Resource Item in Management Human Resources Management Defined Human Resources Management Goals Achieving high performance through people Enhancing motivation, commitment and job engagement Maximizing human capital advantage Utilizing knowledge management Resourcing of human resources Evaluating employees Managing and improving employees' relations Human Resources Management Activities Organization Design The employment relationship Resourcing Performance management Human resource development Reward management Industrial relations Health and safety Welfare services Provision of HR services including managing Human Resources Management Process Strategic Human Resources Management HRM policy Change management Competency based HRM Knowledge management Job and role analysis How HR Impacts on Organizational Performance Human Resources Management in Context Contingency theory Contextual factors Responses affecting people Orientation to Human Resource Polices and their Application in The Pharmaceutical Sector 8 9 10 11 11 14 16 16 18 19 20 21 22 27 27 27 28 28 29 29 29 30 30 30 30 30 30 31 31 31 31 31 31 32 32 32 32 32 32 32 32 32 35 35 35 36 38
3 3.1 3.2 4. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.7.1 4.7.2 4.7.3 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 5. 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.8.1 5.8.2 5.8.3 5.8.4 5.8.5 184.108.40.206 220.127.116.11 18.104.22.168 22.214.171.124 126.96.36.199 188.8.131.52 184.108.40.206 220.127.116.11 18.104.22.168 22.214.171.124 126.96.36.199 Barriers to the implementation of HR strategies, Policies and Programs Example for Setting out the HR strategy and Policies On-the-job training Being prepared for the Employee’s First Day Orienting the New Employee Taking the Time to Get Acquainted Asking About a New Employees Experience Painting the Big Picture Identifying Your Initial Focus Knowledge, Skills, and Attitudes for Success Knowledge Skills Attitudes Training for Skills While Retaining Good Attitudes Developing New Employees Gradually Coaching, Counseling, and Mentoring Helping Others Determine the Source of the Problem Demonstrate Positive Regard Provide Meaningful Feedback for Learning Mentor for Long-Term Development Behavioral Checklist Definition and Nature of Human Resources Planning Human resource planning and business planning Hard and soft human resource planning Human Resource Planning and Manpower Planning Human Resource Planning Objectives The Human Resource Planning Process Limitations of Human Resource Planning The Organizational Context of Human Resource Planning Resourcing Strategy Objective Checklist Components of Resourcing Strategy Scenario Planning Estimating Future Human Resource Requirements Demand Forecasting Managerial of expert judgment Ratio Trend Analysis Work Study Techniques Forecasting Skill and Competence Requirements Supply Forecasting Analyzing Demand and Supply Forecasts Labor Turnover The Significance of Labor Turnover Survival Rate Half-Life Index 38 39 41 41 41 42 42 42 43 43 43 43 43 44 44 44 44 45 46 46 47 47 49 49 49 50 50 50 52 53 54 54 54 55 55 55 56 56 56 56 56 56 57 57 57 58 59
1 188.8.131.52 Stability Index Choice of Measurement Reasons for Turnover The Cost of Labor Turnover Benchmarking Labor Turnover Action Planning The Resourcing Plan The Recruitment Plan Employer of Choice Plans Job descriptions as a basis for effective performance appraisal and individual motivation Job Analysis Nature of Job Analysis Work Analysis Task-Based Job Analysis Competency Approach to Job Analysis Uses of Job Analysis Job Descriptions and Job Specifications Job Families and Organization Charts Job Analysis and HR Activities Job Analysis and Legal Assues Behavioral Aspects of Job Analysis Job Analysis Methods Observation Interviews Questionnaires Computerized Job Analysis The Job Analysis Process Planning Preparation and Introduction Conducting the Job Analysis Job Description and Job Specifications Job Description Components Job Specifications Writing Job Descriptions Writing Job Specifications The Recruitment and Selection Process Attracting Candidates Analysis of recruitment strengths and weaknesses Sources of candidates Decide who does what Write the copy Choose type of advertisement Plan the media Evaluate the response Outsourcing Recruitment Types of Interviews ( Individual interviews) Interviewing panels 59 59 60 60 60 61 61 61 61 66 66 66 66 67 67 67 68 68 69 70 70 71 71 71 71 71 71 72 73 73 74 74 74 75 75 77 80 80 80 81 81 81 82 82 82 82 82 .2 6.6.5 184.108.40.206 220.127.116.11 6.6.2 18.104.22.168 7.2 22.214.171.124.5.2 6.4 5.12 5.5.5 7.1 126.96.36.199 188.8.131.52 6.7 6.1 6.10.9 7.3 184.108.40.206 7.8.6 6.6.10 7.2 5.4 6. 7.5 6.6.5. 6.3 7.4 7.14 5.13 5.3 6.8 220.127.116.11 6.6 18.104.22.168.6.9.16 22.214.171.124 5.8 7.3 6.4 6.4 6.1 5.1 126.96.36.199 7.5 188.8.131.52 7.8.1 6.9.
2 8.13 Selection boards Improving the Effectiveness of Recruitment and Selection References and Offers Confirming the offer Benefits of a Computerized Human Resource Information System HR Information Strategy Strategic decision taking Range of applications The Functions of a Computerized HR System Rating of "System Features" Main problems of computerized HR system and how to deal with them Involving line managers Developing an Information System Overall approach Preferred characteristics of an information system Choice of hardware Database management Software The development program Examples of Applications Recruitment Reward management Performance management Training administration (computer-managed learning ( Career management Absence control Equal opportunity monitoring Expert systems Auditing the System 83 83 83 84 86 86 86 86 87 87 87 88 89 89 89 89 90 90 90 90 92 92 92 93 93 93 94 94 94 PART ONE OVERVIEW OF THE MANAGEMENT PROCESS AND IT'S HUMAN NATURE .1.5.5 184.108.40.206 8.10.2 8.5 220.127.116.11 8.5.3 18.104.22.168.5.7 8.2 8.4 8.2 7.1 22.214.171.124 8.12 8.9 8.11 8. 8.2.1 8.1.10 8.2 8.5.6 126.96.36.199 8.1.8 8.2.12 7.5 8.1 8.11 7.13 8.1 8.5.
1. as it is an on-going process in the sense that there are people requiring certain needs to be fulfilled products and services. * Management is a Social Process. The social implication of management also refers to the fact that all of its activities are directed toward serving people and fulfilling their needs. These resources can be grouped into three categories. utilizing human resources and physical resources. This means that: * Management is a dynamic process. it is not physical but rather it is a mental process.1. accordingly. material and non-material resources: Figure 1. Management. It is a human process. * Management is a Continuous Process.1 Introduction What is Management? It is a continuous social process to realize a specific objective through optimally utilizing available resources.1 Resources Human Managers Specialists Technicians Personnel Material Capital Machines Equipment Raw Material Non-Material Ideas Information Techniques Methods * Management utilizes available resources at most to achieve its objectives − − − This means that management has to make the optimum use of these resources. as managers are human. This implies that management is a type of sophisticated thinking. where it includes a number of people taking part in realization of the set objective. human. * Management requires a set of resources in order to perform its activities.6 1. exists as long as the society lasts. . to have the best return. The term "process" denotes the mutual inter-relationship and inter-dependency of these practices. Composed of a set of practices. Management is a process.
1 Planning Controlling Organizing Directing . This requires managers to know how to deal with human resources. directing and controlling. principles and policies that help utilize this resource for the sake of both organizational success and human resources' satisfaction. how to utilize such resources and how to provide satisfaction to individuals making up this human resources. These phases are sequential as referred above. this programme aims to help managers to understand the realities of the human resource factor and relevant concepts.2 Managerial Process Management as a mental process includes four phases that is. organizing. however but they are overlapping and iterative as shown below: Figure 1. 1.2.7 − The basic problem of management is related to the human resources and the manager's ability to utilize them. planning. Because of that.
These requirements represent the inputs of the system within which an interaction process occurs to process (transform) these inputs into products and or services. Figure 1. This is applicable to a pharmacy. The survival of the system is contingent upon realization of the objective for which the system was created in addition to its ability to operate an open system. that is. and its components: * Inputs and Outputs of the System: To achieve its objectives the system acquires its basic requirements (resources) from its environment.1 Educational System Social Objectiv e Economic Legal Political ENVIRONMENT The following is an elaboration on management unit as an open system.3 Management Unit as a System A system is an entity operating to achieve certain objectives it may be closed or open. a laboratory. It has to operate as an open system if it gives high consideration to its environment. The closed system has no relationship with its environment. it affects the environment within which it operates and is affected by this is illustrated below: Figure 1. whereas the open system is in a case of interaction with its environment. pharmaceutical department in the MOHP.3.2 Transformation process Inputs Human Resources Capital Technology Outputs System Technological Products and/or Service . or other.8 1.3. A management unit could be looked at as a system.
This type of comparison is called feedback since it feeds the system with crucial information to be able to survive and remains viable through achieving its objective. ORGANIZING. Figure 1.9 * Relationship of Inputs with Outputs (Feedback): Comparison of the System’s outputs with the objective for which the system is created is an important process to ascertain the degree of objective realization. inputs or transformation process within the boundary of the system itself.3. CONTROLLING . There are many types of managerial practices all of which follow specific phases. that is: PLANNING. DIRECTING.3 Inputs Transformation process System Operation Outputs Ressource s Services Feedback 1.4 Transformation Process and Elements of Managerial Process Transformation process does not take place within the system in an automatic manner but in a purposeful fashion through managerial practice. The comparison might result in modification of the objective.
10 Figure showing the management process in an open system organization Figure 1. all of which are to be set within a specific time framework.5. policymaking. .1 Transformation Process Modification in Inputs Outputs Service and/or product Comparison The system Managerial Practices Elements of Managerial Process Objectives Results Objective Identification Planning Forecasting Relationship Determination Responsibilities Authority Organizing Delegation Motivating Directing Leading Criteria Setting Controlling Performance Measurement 1.5 1.4. program-designing as well as the elaboration of steps. procedures and rules.1 Main Items of Management Planning Function The concept of planning includes the identification of objectives and strategies.
Figure 1.1 Planning as a Basis for Managerial Process What are the proper objectives? What is the proper organization structure? Planning Objectives How to realize objectives What are the required physical resources? Decisions Ought to be made What are the required human resources? What is the required style of leadership? What are the elements of controlling criteria? .11 Objective identification is considered to be the most important phase of the managerial process in general.1.5.
1. It also includes distribution of work in each department and section to personnel allocated to them. There are a set of rules that may to be observed when identifying objectives. understood and specific.5. on the basis of which clusters of similar and related jurisdictions emanate to form departments and sections (departmentalization).2 Organizing Organizing phase includes division of labor and tasks. This may require certain modifications in the organizational objectives. along with determination of their duties.5. • Flexibility: Objectives ought to be adaptable relative to changing internal and external circumstance of the organization. • Clarity: Objectives ought to be conceived. such rules include: • Objectives ought to be congruent with the value system and orientation of the society. • Employees Objective: Achieving employees’ personal objectives is to be instrumental in achieving objectives. coordinating their efforts and specifying their working relationships i. determining responsibilities. the most important of which are social values. competencies and span of supervision as well as clarifying communication lines and channels between and among various departments and sections. This is done with a view to facilitating work flow in an efficient manner and properly sequencing its steps. • Measurability: Objectives ought to be stated in measurable terms as much as possible. coordinating its parts to be performed according to the stated level of proficiency.1. social or economic) might reflect on the managerial unit and its performance.12 Figure 1.2 Objective Achievement and Its Relationship with Organization Viability Organization Educational Organization Legal Social Objective Political Competitor ENVIRONMENT Most important to assess environmental changes (technological. as shown in the following illustration: Technological .e. • Realism: Objectives ought to be tied up to availability of facilities and volume of disposable organization resources.
1 Main Objective Sub objective Relationships Determination Relationship Determination: Responsibility.2 Duties Environment Organization Working Tools and Methods Organization’s Objectives Manpower .2.5. Figure 1.2. Authority.13 Figure 1. Communication lines * Contents of Organization Process Duties (Tasks) Identification. Manpower (Number and Caliber) Determination. Specifying Working Tools Required to Manpower.5.
and needs? − How can organization impact employees and vise versa? How employees could deal and interact with each other in a positive way? − How tasks could be performed in an economic and rational way? . compatible with employees desires abilities.14 * Objectives and Tasks of the Organization? − How rationally could tasks be ordered? − W ً hat are the existing organizational parts that should be made use of for the purpose of performing various tasks? − W ً hat should be done to assign tasks to different persons? − How could work be designed in a way.
Controlling 2.Personnel 4Homogenize Groups in relation to facilities 8.3 Organization items in relation to the Managerial Process Feedback 7. . Motivation means: Stimulating people to act using incentives or inducements.15 Figure 1.Leadership 6Communica tion lines & Information flow 5.2.5. Nevertheless. This process may depend on internal or external forces.Supporting objectives & policies Directing & Controlling Organizing Planning 1.1 Motivation This is the process of managing people in the work situation. the following illustration shows different human needs that work as inducing factors to motivate people in general.5. It involves decision making to direct people and coordinate between individuals.3.5.Authority Delegation 3Identifying and classifying Activities 1Organization’s Objectives 9. External forces include money and other rewards whereas internal forces include self-commitment and self-esteem. It requires managers to motivate individuals to communicate effectively and behave as a real leaders.3 Directing 1.
2 Personal Authority (Acceptability)y) Personal Authority (Acceptabilit (Acceptability)y) y)y) Personal Authority (Acceptabili ty)y) Personal Authority (Acceptabilit y)y) Personal Authority (Acceptabil ity)y) Personal Authority (Acceptabilit y)y) Personal Authority (Acceptab ility)y) Personal Authority (Acceptability )y) Personal Authority (Acceptability) y) Personal Authority (Acceptability)y ) Personal Authority (Acceptability)y ) .188.8.131.52.1.16 Figure 1.1 Maslow's Hierarchy of Needs Self actualizing Needs Esteem Need Belonging Need Security Need Physiological Need Figure 1.3.
5. It may utilize different personal attributes including expertise authority.3. as shown in the following illustration: .17 1.1 Personal Authority (Acceptability) y) Job Authority Expertise Authority This leadership behavior has its reflection on the dynamics of the decision making process. It relies on authority. as shown in the following illustration: Figure 184.108.40.206 Managerial Leadership Leadership may be seen as a behavior that influences others in a way that satisfies their needs and helps achieve the organizational objectives.3. which differs because of differences in leadership styles.
5.18 Figure 1.2. because the managerial performance and organizational success is dependent.3. on the effectiveness of managerial communication.4 Managerial Communication Managerial communication is a very crucial dimension of management process. in part. is shown is in the following illustration: .2 Leadership and its Impact on Decision Making Democratic Style Autocratic Style Degree of Use of Authority by the Leader Democracy Degree Degree of freedom and participation in responsibility and authority of a leader by subordinates Autocracy Degree Leader allows subordinat e to act as their jobs require Leader sets limits and asks subordinat es to make decisions Leader poses the problem and receives suggestions from subordinat es and he makes the decisions Leader presents the decision and encourages subordinat es in relation to that decision Leader explains the decision to subordinat es Leader makes the decision and announces it Leader makes the decision and announces it 1.5. The role of communication in this respect however.
corrective action in the Updating Job Descriptions1. specifying reasons of diversion and taking theV.4.5.5. and taking the right corrective action. Maintaining and right time. Relation freedom and participation Relationshi ships how to participation in in ps utilize such Determi responsibility responsibility and authority of Determina nation resources and authority a leader by tion and how to of a leader by subordinates subordinates provide Relations satisfaction hips to Determin individuals ation making up Relationships this human Determination resources.19 Figure 1.1 Model for Effective Communication Process Feedback Sender Thought Encoding Receiver Transmitti ng message through channel Reception Decoding Understand Behavior Situation: Communication Objective 1. It includes measurement of performance. Update job descriptions and This specifications as requires organization changes.5.5. Periodically know how to review all jobs.5 Controlling This is another managerial item and its function aims at showing such diversion from the performance standards. deal with human Degree of Degree of freedom and resources.1 Figure and Specification A. identification of differences between standards and actual results. managers to B. .
20 1. Perception and commitment to work systems and methods Observance of soundness and efficacy in using tools and machines . Discipline and commitment to working hours Initiative and positive attitude toward performance and action Style of dealing with superiors and subordinates Skill in performing tasks Number of produced units. problem solving and decision making.5.1 Elements of performance Appraisal Elements pertaining to Expectations for degree of performance efficiency in future Elements pertaining to work behaviors Elements pertaining to Nature and Degree of performance Skills of communication. level of quality and time used.6 Performance Appraisal Figure 1.6.5. leadership.
as shown in the following illustration: .6 Decision-Making This is the essence of management. however.solving.6. This process. to superiors and subordinates Training superiors on appraisal methods Evaluating and modifying (if required) the appraisal method in use 1.2 Components and Stages of Performance Appraisal System Setting organization objective Identifying objectives and areas of appraisal Developing performance criteria Identifying the most appropriate appraisal methods Explaining appraisal methods.making. It cuts across different management functions. It is mainly concerned with problem.5. is affected by many factors such as post experience and limits of following the scientific methods of decision.21 Figure 1.
1 Experiment Selection How to select from among alternatives? Relying on the past experience Researching analyzing Decisions. Usually.6. may be related to problems occurring for the first time.22 Figure 1. Rely on relatively certain data Repetition of making the concerned decision Usually. the decision-making process takes place within a certain environment and is affected by many variables. that the manager can programme as shown in the following Figure: Figure 1.2 Types of Decisions Non Programmed Decisions Programmed Decisions Depend on relatively uncertain data Usually. changeable or dynamic circumstances Usually. made in unstable conditions. as shown in the following illustration: . and technological factors. made for once or relatively infrequent Usually. economic. stable circumstances. or it may be related to routine problems. Meanwhile.6. made in stable conditions. prevailing values. such as the cultural context. however.
23 Figure 1. as shown in the following illustration: .3 Culture Contexts Prevailing values in organization Present Economic and Social conditions Values of a Decision maker Balancing Decision objective Decision Available Resources At the same time the decision-making process goes through different stages.6.
24 Figure 1.6. methods…) Decision Negative Positive .4 Problem for which a Decision is to be made Formulation (1) Stage Laying down a framework Analyzing (2) Stage Information Collection Speculation (3) Stage Alternatives Identification Changing (4) Stage Alternatives Evaluation Ascertaining degree of correctness or faultiness (5) Stage Experimentation (Testing various ideas.
25 PART TWO THE ROLE OF HUMAN RESOURCE ITEM IN MANAGEMENT .
26 2. The Role of Human Resource Item in Management
This is the most critical factor in management, as it refers to the human side of management. It looks like "flash" in the individual body. It is the "soft item" as known in the Japanese management. The very simple feature of this item makes it a changeable factor, as every individual holds a very individual personality, and managers are expected to deal with each individual as a unique "entity", because of the individual differences. This makes it crucial for managers to handle this factor of the organization in a "scientific" way, starting with manpower planning to identify real needs of personnel, selecting the best individual for different jobs, and dealing with them, while on the job, according to effective policies, that maintain a balanced relationship between the individual and the organization (i.e. help achieving the organizational goals and provide individual job satisfaction). This part, however, concentrates on different aspects showing meaning, concepts and principles related to effective human resources management in order to furnish substantial "grounds" for successful human resources management of the pharmaceutical sector in Egypt. 2.1 Human Resources Management Defined
Human resource management (HRM) is a strategic and coherent approach to the management of an organization's most valued asset, the people working there, who individually and collectively contribute to the achievement of its objectives. Main features of HRM: • It emphasizes the strategic management of people (the human capital of the organization) which achieves the best 'fit' or integration between the organization’s activities and the HR strategies. • It is a comprehensive and coherent approach to the provision of mutually supportive employment policies and practices, i.e. the development of integrated HR policies and practices; • Its importance arises from the interest in gaining the commitment of individuals to the organization's mission and values - it is 'commitment-orientated; • It emphasizes the treatment of people as assets rather than costs - they are regarded as a source of a competitive advantage and as a human capital, invested in through learning and development opportunities; • Its approach to employee relations is "unitary" rather than "pluralist" - it is based on the belief that employees share the same interests with employers. • The performance and delivery of HRM as a line management responsibility. 2.2 Human Resources Management Goals
HRM aims at helping the organization to achieve success through people. HRM systems can be the source of organizational capabilities that allow organizations to learn and capitalize on new opportunities. It is concerned with meeting human capital requirements on the one hand and development of work capabilities: on the other hand. The specific goals of HRM are stated below:
27 2.2.1 Achieving high performance through people
The main objective of HRM is to contribute to the achievement of high performance levels through integration of HR and organizations strategies. Performance goals in the organization can be achieved through systems which take into account factors affecting individual performance and promote flexibility. They also include 'rigorous’ recruitment, effective selection procedures, performance-contingent incentives, compensation systems, management development policies, and training activities linked to the organizational goals. The individual performance level is a function of the individual ability, motivation and opportunity. This is based on the fact that people perform better when: • they are able to do so (they can do the job because they have the necessary abilities and skills; • they are motivated to do so (they do the job because they want to satisfy certain needs); • Their work environment provides the necessary support and avenues for expression (for example, functioning technology and the opportunity to be heard when problems arise). 2.2.2 Enhancing motivation, commitment and job engagement
An important goal of the HRM is to help the enhancement of motivation, commitment and job engagement as means of improving performance and retaining talented people. Motivation is the process of encouraging people to apply their efforts and abilities in ways that further the attainment of the organization's goals, as well as, the satisfaction of their own needs. Commitment is based on identification with the goals and organizational values. It is also based on the desire to belong to the organization and the willingness to display effort on behalf of it. Job engagement takes place when people are interested in and enthused to do their work. Additionally, HR is concerned with 'psychological contracting': that is, developing an employment relationship based on a positive psychological relationship that fulfills mutual expectations of employers and their employees and is supported by establishing a highinvolvement climate. The enhancement of motivation and commitment means that HRM has to be concerned with what can be described as ‘discretionary behavior’. This refers to choices that people at work often have about the way they do the job and the amount of effort, care, innovation and productive behavior they display in the work situation. Discretionary behavior is at the heart of the employment relationship, because it is hard for the employer to define high monitor and performance control the amount required for maintaining. Research results show that: • Performance is improved if employees can positively induct' discretionary behavior once in the work situation when their needs are met. • Discretionary behavior is more likely to occur when a lot of individuals have commitment to their organization and/or when they feel motivated to do so, and/or when they gain high levels of job satisfaction. • Commitment, motivation and job satisfaction, (either together or separately), are higher when people realize that policies can create a capable workforce, motivating valued behaviors and providing opportunities for participate.
28 • This positive experience will be higher if different HR policies are able to develop individual capabilities and motivation, in a reinforcing way. • The implementation methods and practices of HR policies by supervisory managers, and top managers enhance or weaken these policies’ effects to trigger discretionary behavior and develop positive attitudes. • The experience of success in high performance outcomes helps reinforce the establishment of positive attitudes in the organization. 2.2.3 Maximizing human capital advantage The main goal of HRM is to achieve human capital advantage, resulting from employing people with valuable knowledge and skills to create a competitive advantage for the organization. It means developing the organization's intellectual capital, that is, 'the accumulated stock of knowledge, skills and abilities that individuals possess” which the firm has built up over time, and can use as identifiable expertise. This, however, can be achieved when the organization succeeds in establishing the concept of "Knowledge management". 2.2.4 Utilizing knowledge management
Knowledge management aims at influencing the ways in which people store and share the wisdom and intellectual understanding accumulated in an organization regarding its processes, techniques and operations. This concept, however, is particularly applicable to the pharmaceutical organizations. 2.2.5 Resourcing of human resources
One of the fundamental HRM goals is to attract and retain the skilled, competent, committed and motivated workforce in the organization. This helps in creating intelligent organizations by hiring more talented staff. Organizational success depends on the talents of employees, including superior performance, productivity, flexibility, innovation, and the ability to deliver high levels of customer service. The most important thing that an organization can do to improve individual performance is to recruit and retain more. This means that the organization has to assess future people requirements and develop recruitment strategies, selection methods and talent management processes, ensuring the high quality of people joining the organization. Human resource development aims at increasing capabilities and potential of people through provision of learning and continuous development opportunities. This is achieved by ensuring that everyone in the organization has the knowledge and skills and reaches the level of competence required to carry out their work effectively, because performance of individuals and teams is subject to continuous improvement, and people are developed in a way that maximizes their potential for growth and promotion.
1 Organization Design Organization design: is mainly concerned with catering for all activities required.2.7 Managing and improving employees' relations It is important for management to maintain good relationships through partnerships with employees and the creation of teamwork. stimulating intrinsic motivation and job satisfaction.3. 2.3 Human Resources Management Activities To achieve its objectives the HRM has to carry out the following activities: 2. however provides a basis for selection. Job design. • Talent management: providing for the attraction. .2. and for the levels of skill and competence reached. performance appraisal rewarding. retention. work styles and aspirations. • Ensure equal opportunities to all people and enhance an ethical approach to be adopted. valued and rewarded for what they do and achieve. grouping them in a way that encourages integration and cooperation. • Managing a diverse workforce by recognizing individual differences in employment needs. • Provide for a reasonable balance between the time people spend at work and time they spend outside the work situation. providing for effective communication and decision making in addition to flexibility to change. 2.3. This is the role of employees' relations using the following techniques: • High commitment management practices which recognize employees as valued members and help develop a climate of cooperation and mutual trust. 2. development and reward of high quality people. Organizational development. based on fairness and transparency.2 The employment relationship HRM also apply many policies to improve the quality of work relationships based on sticking to mutual trust and main items of the psychological contract. is directed to improve organizational effectiveness so that management can adapt to change: and promote motivation and employees’ commitment to organization. • Enable employees to have a say in policy-making and influence decisions.6 Evaluating employees One of the major HRM goals is to enhance motivation and commitment by introducing policies and processes that ensure that people are recognized. 2. and competence.29 2.3 Resourcing This HRM function is achieved through: • Human resource planning: to forecast future requirements of human resources in terms of numbers skill.3.
relating financial rewards to achieved results. • Communicating: Transmitting information that may be of interest or concern to employees. • Career management: This includes planning and developing the careers of people who are promising and have potential. Performance management This function aims at getting better results from individuals. •Effective pay. . 2.4 Recruitment and selection: obtaining the number and type of people needed for the organization.30 • 2. 2. skill and effort. It requires measuring and managing performance within agreed frameworks of objectives assessing performance. fair and transparent.3.5 Industrial relations This is one of the major HRM activities. 2. •Non-financial rewards: providing employees with non-financial rewards such as recognition. restaurants and social activities).5 2.6 2. 2. competency level. 2. • Giving employees the opportunity to have a say in management and decisions.5 Human resource development This function aims at: • Organizational and individual learning: systematic development of learning processes. increased responsibility and the opportunity for growth and progress. to protect employees from preventable health hazards and accidents. • Management development: providing development opportunities that will increase the capacity of managers to make significant contributions to fulfill organizational goals. providing employees with learning opportunities to develop their capabilities realize their potential and enhance employability. satisfying learning needs.3.3. to individuals (protection against illness) and to groups (cafeteria. It requires the following functions: • Managing and maintaining formal and informal relationships with employees and their organizations. and take necessary steps to improve performance.4 Reward management •This function requires the following: Developing pay structures and systems that are equitable.7 Welfare services Providing employees with different public services.6 Health and safety Ensuring that a healthy and safe working environment is provided.
training and rewarding. and operating HR information systems.9 Human Resources Management Process The HRM processes in modern organizations concentrates on the following aspects: 2.9. including job redesign.9.3 Change management This includes different policies. 2. mechanisms and systems that help management to deal with environmental changes including the introduction of new schemes and reorganization as well as restructuring services to fit with the new situation. applying HR procedures. such as payment policies. organization development. and organizational performance largely depends on them.4 Competency based HRM This includes the introduction of new competency frameworks that inform and support activities. Therefore. etc.9. an appropriate range of HR policies and processes need to be developed and implemented effectively in order to improve the organization’s performance.7 How HR Impacts on Organizational Performance The basic assumption underpinning the practice of HRM is that people represent the key resource. 2. administering HR policies. employment policies. 2.. 2. to help job descriptions or setting role profiles and provide data that help in organization design. 2.9. performance management. recruitment.31 2.8 Provision of HR services including managing Employment relationship.9. 2.2 HRM policy Such policies provide guidelines on how people are managed in the organization.9.1 Strategic Human Resources Management Such strategies state intentions and formulate plans for HRM practices.. employee development and rewarding schemes. . it is important to ensure that HR strategies are integrated with business strategies in the same organization. recruitment.6 Job and role analysis Analyzing the content and competency requirements of jobs or/and roles. 2. performance appraisal policies.5 Knowledge management This aims at capturing intellectuals to work in the organization and assure knowledge sharing to enhance organizational learning and performance.9.
M Sheehan and M Metochi (2000a) Effective People Initial findings of the future of Work Survey.1 Model showing the link between HRM and performance HR effectiveness Business strategy HR practices HR strategy HR outcomes Employee: competence commitment flexibility Quality of goods and services Productiv ity Financial performa nce (Source: D E Guest.32 This implies a clear relationship between HRM practices and organizational performance as shown in the next illustration: Figure 2.7.9. J Michael. London) Based on this simple model HR experts developed a much more detailed model which is shown the following illustration: . CIPD.
selection and talent management). • Effective management of change and conflict resolution. and giving employees a voice in management.9. flexible working. CIPD. employee development (increasing skills and extending the skills base). • Formulation and implementation of policies which meet individual needs and create "a great work place" • Provision of support and advice to line-managers regarding implementation of HR policies and practices. B Kayton and J Swart (2003) Understanding the People-and Performance Link. London) Accordingly HR can make an impact on performance by leading or contributing to: • Successful implementation of high performance work practices. • Development of a positive "psychological-contract" and introducing effective means to increase motivation and employees commitment.7. • Formulation and embedding of a clear vision and set of values (the big idea). resourcing (recruitment. reward.2 The performance model Training & development Performance appraisal Career opportunity Job security Recruitment/ selection Ability and skill Pay satisfaction Motivation and incentive Work-life balance Opportunity to participate Organization commitment Motivation Job satisfaction Front line management implementing enacting leading controlling Discretionary behavior Performance outcomes Job challenge/ autonomy Team working Involvement Communication (Source: J Pnrcell. S Hutchinson. N Kinne. particularly those concerned with job and work design. .33 Figure 2.
Contingency theory is essentially about the need to achieve (fit) between what the organization is and what it wants to become (its strategy. lists of activities. goals. Knowledge workers are employed in largely computerized offices and laboratories. new methods of working are developed. But it could result in deskilling and a reduction in the number of jobs (downsizing). and teleworking (working from home with a networked computer) is increasing.10. As far as competitive pressures are concerned. The service industries have become predominant and manufacturing is in decline.10. the people it employs and its external environment) and what the organization does (how it is structured. including multi-skilling (ensuring that people have a range of skills that enables them to work flexibly on a variety of tasks. Descriptions in this programme can only be generalizations.2 Contextual factors The main contextual factors that influence HR policies and practices are technology and competitive pressures. 2. operating more flexibly and "losing cost". The introduction of new technology may result in considerable changes to systems and processes. and technicians work in computer integrated manufacturing systems. Different skills are required. processes. procedures. New work environments such as call centers have become common. The world of work has changed in many ways. policies and strategies.1 Contingency theory Contingency theory tells us that definitions of aims. 2.34 2. speeding up response times. They will be largely contingent on the environmental factors that affect them.how work is organized. accelerating the introduction of new technology. downsizing and cutting out layers of management and supervision. managed and carried out.10 Human Resources Management in Context HRM processes take place within the context of the internal and external organizational type of environment. They may have to be managed differently from the clerks or machine operators they displace. and analyses of the HR department role are valid only if they are related to circumstances of the organization. This is assisted by easily transferable technology and reductions in international trade barriers. The pressure has been for businesses to become 'lean and mean'. Customers are demanding more as new standards are reached through international competition. The result may be an extension of the skill base of the organization and its employees. culture. suggesting approaches and provide guidelines for action. and practices it puts into effect). They are reducing permanent staff to a core of . global competition in the drug and pharmaceutical sectors is increasing. Organizations are reacting to this competition by becoming "customer focused". often within a team working environment). emphasizing quality and continuous improvement. The technology of the business exerts a major influence on the internal environment . technology. New technology can therefore present a considerable threat to employees.
The ultimate development of this process is the Virtual' firm or corporation. and spending more time with their customers or clients. total quality and lean production initiatives. These include slimmer and flatter organization structures in which cross-functional operations and team working have become more important. It also emphasizes the importance of an integrated . only coming into the office on special occasions to occupy their 'hot desks'. giving insufficient attention to the management of change and retraining staff. It looks at processes in organizations horizontally to establish how they can be integrated more effectively as well as streamlined. where through the extensive use of information technology A high proportion of marketing and professional staff mainly work from home.10. From an HR point of view. which examines the process that contains and links those functions together from initiation to completion. and the decentralization and devolution of decision making. It can therefore form the basis for an organizational redesign exercise. Another response to competitive pressures is business process re-engineering (BPR).35 essential workers. .a coherent . How is this reflected in the dug and pharmaceutical sector? This is a major question to be discussed. 2. the outcome of a BPR exercise may well be the need to attract or develop people with new skills.approach to the development and implementation of HR policies and employment practices.3 Responses affecting people The responses to the increased use of technology and to economic and competitive pressures have changed the nature of people management in a number of ways. not least because it often neglected the human aspects. The aim is to reduce employment costs and enable the enterprise easily to increase or reduce the numbers available for work in response to fluctuations in the level of business activity. more flexible working patterns. temporary staff) and 'outsourcing' work to external service providers. and is not regarded as highly as it once was. They become the so-called 'flexible firms'. Re-engineering often promises more than it achieves. as well as pressure for the improvement of team working. increasing the use of peripheral workers (subcontractors.
36 PART THREE ORIENTATION TO HUMAN RESOURCE POLICIES AND THEIR APPLICATION IN THE PHARMACEUTICAL SECTOR .
legal and environmental contexts within which the organization operates). social. of the organization on the one side and both opportunities and threats facing the organizations. − The extent to which senior management is trusted. Orientation to Human Resource Polices and their Application in The Pharmaceutical Sector Orientation to human resources policies and their applicability in the drug sector is necessary because strategies tend to be expressed as abstracts. The framework could be a SWOT analysis concentrating on strengths. − The extent to which existing processes could help to embed the initiative. Implementation is also difficult if one initiative is implemented in isolation from other areas of HR practices. they must be translated into policies and programmes with clearly stated objectives and deliverables. (2) Formulate strategy The formulation should set out the rationale for the strategy and spell out its aims. especially in large organizations. employees generally and Syndicate. To overcome these barriers it is necessary to: (1) Conduct a rigorous initial analysis The initial analysis should cover business needs. The factors contributing to creating this gap include: − Employees in diverse organizations tend to accept initiatives perceived to be relevant to their own areas. cost and benefits. or a PESTLE analysis (the political. technological. 3. − Complex or ambiguous initiatives may be perceived differently by employees. . and are counter-productive. − The perceived fairness of the initiative. Policies and Programs Barriers obstructing HR strategists and policies when implemented often result from a failure to understand vital changes in the Egyptian Drug sector. − It is more difficult to gain acceptance of non-routine initiatives. as in the case of downsizing in a ‘life employment’ culture. line managers. organization culture of the Drug sector. (3) Gain support Particular care needs to be taken to obtain the support of top managers.37 3. to the extent that HR strategic initiatives are seen as irrelevant. and weaknesses. − There is a tendency for long-serving employees to cling to the status quo. − Employees will be hostile to initiatives if they are seen to be in conflict with the organization’s identity. and both internal and external environmental factors. − A bureaucratic culture that leads to inertia. economic. It will be very hard to implement anything however if the practical problems are not dealt with. − There are inconsistencies between organization strategies and values. − The initiative is seen as a threat.1 Barriers to the implementation of HR strategies. on the other side.
(6) Prepare action plans These should spell out what to be done. training and change management. (7) Project manage implementation This should be conducted by reference to the action or project plan. Cultural factors . • Basis : Business needs in terms of the key elements of the business strategy. attitude surveys. It is essential to follow up and evaluate the results of the initiative. involvement. • Implementation plan: − Action program. Follow-up can take place through interviews. hostility and lack of supporting processes or resources. − Project management arrangements. − Resources required. policy and/or plans. • Content . consultation. (8) Follow up and evaluate Nothing can be taken for granted. and desirably. − Responsibility for each stage.38 (4) Assess barriers An assessment is required of potential barriers to implementation. focus groups.the business case for the strategy against the background of business needs and environmental / cultural factors. for line managers and for individual employees.details of the proposed HR strategy. could be set out. for the organization as a whole. • Rationale . .possible helps or hindrances to implementation. (5) Manage change Change management processes should be used to gain acceptance for any new initiatives contained in the strategy. especially those relating the indifference. and when it should be completed. Environmental factors and analysis (SWOT/PESTLE). and would involve monitoring progress and dealing with problems as they arise.2 Example for Setting out the HR strategy and Policies − − − The following is an example showing headings under which a strategy. 3. who does it.an assessment of the resource implications of the plan and the benefits that will accrue. − Proposed arrangements for communication. • Costs and benefits analysis .
39 PART FOUR HUMAN RESOURCE DEVELOPMENT AND THEIR APPLICATION IN THE PHARMACEUTICAL SECTOR .
Let other employees know when the new employee is coming in and ask them to welcome the person on board. On-the-job training This is a development stage that concentrates on shifting experience in the work situation from one generation to another. co-workers. some leave and never come back. the manager and the organization must be well prepared. The first day on a new job should be just as important to the employer. Especially when an organization is short staffed. set aside time to meet.2 Orienting the New Employee When should you begin orienting and training new people? The answer is. Because a new employee's first day is so important. greet. The kind of employees that people will become has a lot to do with the first few days on the job. Whenever people leave. Make the first few minutes a friendly opportunity to teach about comfort issues: Where do I hang my coat? Where are the restrooms? How do 1 clock in? Where is my workstation? Who are my co-workers? . and responsibilities. policies. and safety issues. can go a long way toward making a new employee feel welcome. This is the time for managers and team members to put their best foot forward and welcome the person who could become the organization's best employee. Many lack one or more of these ingredients. Common courtesies. It is one of the best opportunities the organization has to affect the quality of the work team.40 4. and the right skills. Some new employees also see videos or hear talks about the company philosophy. Some make it. Often hiring is done to "fill a hole" in the staff. and hiring is lost when somebody walks away. supervisor. new employees also need a taste of the job and an opportunity to feel as though they have had a successful start. and internal red tape than the job itself. Toss the new employees into the current and see if they can keep their heads above water. especially with how they are introduced to the workplace and trained to do their job. and orient each new employee. or your designate. as soon as they walk in the door! Make sure that you.1 Being prepared for the Employee’s First Day On their first day on a new job. new employees are expected to be nervous and curious about their new employer. the job. Yet there is no guarantee that the replacement will be any better than the one that just left! All the time spent reviewing applications. 4. Although this process may be necessary. interviewing. especially knowing how to pronounce the person's name. training can become nothing more than the old "sink or swim" method. relevant experience. Many companies have employees spending the first day filling out forms and going through an "orientation" that is often more about benefits. they must be replaced—by another new person. Some come in the door with great attitudes. 4.
What is our organization's ultimate goal? Why do customers choose us instead of the competition? Where does this job fit in with the larger operation? . If you are in the food service business. Connect them with people who have a good attitude. After all. such as their closest new co-workers. It is never too early to start thinking about employee retention. It is easy to fall quickly into "talking at" a new person. Make sure to take the time to introduce new employees immediately to a few people. We all know how important first impressions are. is worried about hiring people with experience at other airlines because it has worked so hard to build a unique culture. Introduce them especially to people who are willing and able to answer questions if they get in a jam. who are friendly. you may know little more about the new person than her name. have them report well before the rush. and attitudes about work. experiences. So an important question to ask a new employee is "Have you ever done this kind of work before?" Questions such as "What did you like about that job?" and "What bothered you in that job?" can be great ways to begin learning about attitudes and values. or the "context" that the person will be working in.3 Taking the Time to Get Acquainted Each new employee comes with a unique set of strengths and weaknesses. and supportive in that first meeting. when you and their co-workers will have the time to prepare them to perform some part of the job when the rush comes. For these reasons. If your selection process is working well. 4. you may want new employees to report a little early or a little late. You want all new hires to feel that they have made a good decision to join your team. however. the supervisor or trainer needs to learn a few things about the new employee before determining the best approach for training that individual.4 Asking About a New Employees Experience It is discouraging for anyone to be talked down to. so be friendly. efficient. It is essential. One of the airlines companies.41 That last question is an important one. perhaps for a competitor. But unless you were the interviewer. there is so much to explain and so little time. This is an opportunity to communicate that you want to help the new employee to be successful. for example. Sometimes you will find that having related experience means that the new employee will need to "unlearn" some habits that do not fit your culture. 4. that you learn something about the individual before jumping right in to job-related training. If the start of a shift is really busy.5 Painting the Big Picture A critical part of that first interaction with a new employee is communicating the big picture. you can use that information to help explain how your operation is like or different from the other. Why did she apply for this particular job? Is she from nearby? Docs she knows anyone else in the organization? What are her interests outside of work? 4. and who are willing to help them. If you find that the employee has worked in your industry before. especially the new employee who brings related experience to the job. the person who walks in the door should have the right values and attitudes to be successful in your operation.
Job knowledge might include passwords. Then ask yourself. identify the essential ingredients for a successful Week One. and Attitudes for Success Success at work is a combination of having the right knowledge. In a warehouse they could include using the computer to check the inventory. and attitudes to perform a given job. skills could include cooking. 4. or of one being moved to a new job. and taking money. on-the-job training.2 Skills Skills are what you expect the employee to actually do as part of the job. If employees understand the history and importance of the company's renowned customer service. . for example. In a retail operation. That is why it is important to identify in advance what the new person must master to be successful in the first week. Even the best employees might not be able to remember everything that relates to the job.42 Having this understanding helps employees see the point of quality standards. taking orders. they are less likely to treat customers in a hurried or indifferent manner. the skills required depend on the job in question. skills. 4. cleaning.7. 4.1 Knowledge Knowledge is the essential information that an employee either must have committed to memory or can locate quickly. You may want to create job aids for essential information that is too much to commit to memory or is used infrequently. but they should know where to find that information.7. it is easier to identify what to focus on first. By thinking about a job in these three categories. location of supplies. picture that the new person's first week has just ended and you are both pleased with how things went. or nonexistent.7 Knowledge.6 Identifying Your Initial Focus When you are planning the initial training of a new employee. steps in a procedure. and attitudes. It is usually not reasonable to expect new employees to immediately possess all the right knowledge. Initial on-thejob training can then focus on a manageable list of knowledge.7. and basic company policies. In a restaurant. wanting to satisfy the customer. Naturally. being able to read and understand paperwork and locating and moving stock. Skills. Sometimes what looks like an attitude problem is really confusion or frustration resulting from poor. 4. and being willing to learn. "What must a new person learn to make that successful first week a reality?" 4. developing appropriate skills.3 Attitudes Attitudes are the behaviors or actions that demonstrate a person's beliefs or feelings about a situation. and demonstrating the desired attitudes for the job. important attitudes might include being punctual. taking pride in personal appearance. Attitudes are tricky because they depend in part on other people's interpretation. skills.
When people need help mastering skills and . Before discussing specific procedures and skills. (If that is not true. it should be pointed out that not all helping is done or should be done by managers.9 Developing New Employees Gradually This positive movement should take place process by process.) But many new employees probably do not yet have the good skills needed for their new job. they may move from bottom right (good attitude. It may seem easier just to slick the new guy on the job nobody else wants and leave him there. 4. Counseling. they wanted the job and. Coaching is similar to but not synonymous with counseling. If too much is thrown at new employees at one time. In most work groups. and skills to help the organization in a wide variety of ways. 4. good skills) because they are bored. 4. and Mentoring Helping people become more competent is an important part of any manager's job. It is usually not possible for an individual to make the move from quadrant 1 to quadrant 2 on the whole job at once. And if they arc not challenged enough.10 Coaching. Your goal is to develop an employee who has the attitude. yourself. by helping others resolve their personal problems and develop their skill competencies. Set the expectation early for each employee to become increasingly competent and valuable to the company. however. the general goal of training is for employees to develop job skills while retaining the good attitudes they brought to the organization. First of all. counsel them about personal problems. they can end up in quadrant 3 (poor attitude. It results in a three-way win for the organization. It is better to teach new employees how to be successful at one part of the job first and then broaden their skills gradually. knowledge. and mentor them for long-term career development. This can be seen on the performance variable diagram below. Coaching. They both have the same objective: to improve the people's performance. you will motivate them to better results. counseling deals with personal problems.11 Helping Others This part is designed to help you develop others by helping them to resolve personal problems and enhance job competencies.8 Training for Skills While Retaining Good Attitudes Most new employees start with a good attitude. Thus. The key to employee development is building employee capacity at a pace that is both reasonable and challenging. more skilled and competent people make your job as a manager a lot easier because you can delegate more responsibilities without worrying so much. Secondly. deals with ability issues. It covers how you can coach others about performance problems. they want to keep it. and the employees. presumably.43 4. poor skills) because they feel overwhelmed. After all. poor skills) to bottom left (poor attitude. but that is a recipe for low morale and high turnover. buddy systems develop in which more experienced people informally help new members develop necessary skills and offer them guidance when they have problems. there may be a problem in the selection process.
. − Consider how the person might react and feel about the discussion. common steps should be followed before. emotional. For example. (3) Is performance hampered by obstacles beyond the person's control? If this is the case. and after these helping sessions. however—attitude. clarifying alternatives. counseling. some that are within the control of the person experiencing difficulties and some that are not. determine how to remove the obstacles. solving problems jointly. − Try to make the person comfortable.12 Determine the Source of the Problem What is the correct helping approach to take when others are not performing well? It depends upon what causes the problem. (6) Is poor performance being rewarded by positive consequences? If it is. you can start by providing feedback. coaching is required. (2) Does poor performance occur because others are not really sure what is expected of them? If so. 4. determine how to eliminate the positive reinforcement. being nonjudgmental and understanding. If all of these steps have been taken to ensure good performance. during. − Decide what type of coaching the situation requires. Both also require the same behavioral skills: establishing a supportive climate. determine how to eliminate the negative consequences. (5) Is good performance followed by negative consequences? If yes. (4) Does the person know how to do a task? If not. provide coaching or training. and educating employees to solve their own problems rather than assisting by doing it yourself. − Think about the best way to present what you want to say to the person seeking help. Both coaching and counseling apply essentially the same problem solving process: listening and understanding. you can teach them how to do it and give them practice and feedback. These are summarized as: Guidance for Conducting Effective Helping Sessions * Prior to the helping session: − Acquire all the facts about the situation. Unsatisfactory performance often has multiple causes. drinking. and employees are still not able or willing to perform well enough. For more on this see Chapter 7 on goal setting. Here are some questions you can ask to determine what type of help would be most appropriate. or family-counseling is called for.44 figuring out how to apply instructions. and implementing the action plan.1 (1) Is the person aware that performance is unsatisfactory? If the answer is no. it is time to try counseling to see if it is a personal problem. The following actions will help you apply these skills more effectively. * During the helping session: − Discuss the purpose of the session. you can provide clear expectations. active listening. identifying the problem. deciding on an action plan. When someone has a problem. and mentoring. Although there are differences in coaching. when someone doesn't know how to run team meetings.
45 − Establish a non-defensive climate characterized by open communication and trust. − Praise positive aspects of performance. − Mutually define the problem (performance or attitude). − Mutually determine the causes. Do not interpret or psychoanalyze behavior; instead, ask questions, such as, "What's causing the lack of motivation you describe?" − Help the other person establish an action plan that includes specific goals and dates. − Make sure expectations are clearly understood, − Summarize what has been agreed upon. − Affirm your confidence in the person's ability to make needed changes based upon his or her strengths or past history. * After the session: Follow up to see how the employee is progressing. Modify the action plan if necessary. 4.13 Demonstrate Positive Regard
When you coach, counsel, and mentor others you are engaging in a helping relationship. For a helping relationship to be successful it is important to hold the person being helped in "unconditional positive regard." This means that you accept and exhibit warm regard for the person needing help as a person of unconditional self-worth—a person of value no matter what the conditions, problems, or feelings. If you can communicate this regard, it provides a climate of warmth and safety because the person feels liked and prized as a person. This is a necessary condition for developing the trust that is crucial in a helping relationship. 4.14 Provide Meaningful Feedback for Learning
Feedback about the consequences of their actions is necessary for people to learn what is working or not working and then change those actions to become more effective. Effective feedback alone can increase performance and positive personal development. There are a number of reasons: First, feedback can induce a person who previously had no goals to set some, and goals act as motivators to higher performance. Second, where goals exist, feedback tells people how well they're progressing toward those goals. Third, favorable feedback is a positive reinforcement. Fourth, if feedback indicates inadequate performance, this knowledge may result in increased effort or suggest ways to improve performance. Fifth, feedback often induces people to raise their goal sights after attaining a previous goal. Finally, providing feedback conveys that you care how they're doing. The application of feedback in the coaching, counseling, and mentoring processes involves four actions in the following sequence. Describing observed behaviors and the results. Assessing the impact of the observed behaviors in terms of organizational vision and goals. Predicting the personal consequences for the person involved if no changes take place. Recommending changes for improving behavior. The characteristics of effective feedback are summarized as: * Characteristics of Effective Feedback
46 − Descriptive rather than evaluative. − Specific and data-based rather than general. − Directed toward controllable behaviors rather than personality traits or characteristics. − Solicited rather than imposed. − Close lo the event under discussion rather than delayed for several months. − Occurs when (he receiver is most ready lo accept it. − Suggests rather than prescribes avenues for improvements. − Is intended lo help, not to punish. 4.15 Mentor for Long-Term Development
The role of a mentor is to help another person achieve his or her career goals. More experienced people formally pair up with less experienced ones to help show them the ropes and provide emotional support and encouragement on an ongoing basis. In essence, being a mentor means serving as someone's permanent coach and counselor. Some companies, such as IBM, have formal mentoring programs in which pair assignments are made. Others, such as AT&T, rely on informal mentoring because they think it is more flexible and effective. Mentors help others reduce the stress caused by uncertainty about how to do things and deal with challenging assignments. They are also a source of comfort when newer, lessexperienced people just need to let off steam or discuss career dilemmas. For new organization members, mentoring sessions can help them gain a better understanding of the organization, its goals, and advancement criteria. They may also become more politically savvy and avoid potential career traps and dead ends. In general, mentors strive to help others live up to their full potential and encourage them to be more proactive in managing their careers. 4.16 Behavioral Checklist The following skills are important for helping others. Use them when evaluating your own helping skills and those of others. To Help Others Improve: − Ask questions to help discover sources of problems. − Actively listen to employees and slum genuine interest. − Demonstrate unconditional positive regard by suspending judgment and evaluation. − Seek to educate rather than to assist. − Accept mistakes and use them as learning opportunities. − Provide meaningful feedback. − Encourage continual improvement. − Recognize and reward even small improvements. − Model the behaviors desired. − Help develop action plans for improvement.
48 PART FIVE MANPOWER PLANNING (MANPOWER PLAN) .
scientists in a product development division. "Soft human resource planning" is concerned with securing the right people with the right attitudes and motives. in terms of numbers and skills. and pharmacists required for the Registration Division or for NODCAR laboratories in the coming 20 years. and hence answers two basic questions: first. But there are often limits to that type of planning such as the clarity of the plans and feasibility of developing integrated human resource plans that flow from them. who are committed to the organization and their work. This type of plans is based on assessments of the future requirement for these qualities. Alternatively.49 5. It addresses human resource needs both in quantitative and qualitative terms. It should identify core competences. The former is based on quantitative analysis in order to ensure that the right numbers of certain kind of people are available whenever needed. Also it may influence the business strategy by drawing attention to ways in which people could be developed and deployed more effectively to further the achievement of business goals It also focus on any other problems to ensure that people required will be available and will be capable of making the necessary contribution.2 Hard and soft human resource planning A distinction can be made between 'hard' and 'soft' human resource planning. 5. 5. It there is no clear business strategy. as it interprets them in terms of people requirements. based on some scenarios. for example. Human resource planning however concentrates on three important activities: (1) Identify and acquire the right number of people with the proper skills. (2) Motivating employees to achieve high performance. the planning process could focus on specific areas of activity in the organization where forecast future people requirements. and skill required to achieve the organization objectives. and behave in the expected way. and (3) Create interactive links between business objectives and the manpower planning activities'. how many people are needed? And second. It can therefore play an important part in strategic human resource management. human resource planning may make broad assumptions about the future needs for people. The human resources plan is derived from the strategic business plans.1 Human resource planning and business planning Conceptually. what sort of people are needed? Human resource planning also looks at broader issues relating to the ways in which people are employed and developed in order to improve organizational performance. The strategic planning process should define projected changes in both the scale and types of activities carried out by the organization. . human resource planning should be and be an integral part of business planning system. or it is 'the process of ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements'. It is based on the belief that people are the most important strategic resource in any organization. Definition and Nature of Human Resources Planning This is the forecast of size and nature of human resource required for the organization in the future to achieve its strategic goals. and analysis of performance management outcomes.
• Reducing dependency on external recruitment. regarding key skills. hut it can also lead to the development of retention plans. expertise and competencies. 5. policies and employee development strategies. that help the organization's to adapt to an uncertain and changing environment. The analysis of labor turnover may feed into the supply forecast. Such approaches derive from a rational top-down view of planning. which form the basis for the resourcing strategy. de-emphasizing hierarchies and status differentials.4 Human Resource Planning Objectives The human resource planning system in any organization depends largely on the organization context but in general it aims at: • Attracting and maintaining the number of people required with the appropriate skills. to integrate corporate goals and employee values. flexibility and retention plans. the starting point could be demand and supply forecasts. starting with the business strategy and flowing logically through to resourcing. • Anticipating problems resulting from potential surpluses or deficits of people.5 The Human Resource Planning Process The process of human resource planning (as illustrated below) is not necessarily a linear one.financial 'relational’ rewards. providing opportunities to develop skills and careers and adopt a 'Total Reward' approach focusing on-financial 'Transactional' and non. . They can also lead to the creation of strategies concerned with creating high commitment and create functional flexibility. rewarding people on the basis of organizational performance. 5. emphasize team spirit. It may be circular rather than linear. This means a shift from an approach reconciling numbers of available employees with existing jobs. Alternatively. to another approach concerned with skills. beliefs and behaviors'. increasing employment security.50 This can result in plans for improving the work environment. Soft human resource planning 'more explicitly focus on creating the right organizational culture. where reliable quantitative techniques are used to forecast supply and demand. • Developing a well trained and flexible workforce. human resource development and manpower deployment. and enacting organization-specific values and a culture that bind the organization pants together. with a process starting anywhere in the planning cycle. 5. design jobs in a way that provide intrinsic motivation. • Improving people utilization strategies by introducing more flexible systems of work.3 Human Resource Planning and Manpower Planning Human resource planning is more concerned with broader issues regarding employment of people. This requires formulating retention. than the traditional quantitative approaches of manpower planning.
51 Figure 5.1 The Human Resource Planning Process Business strategic plans Resourcing strategy Scenario planning Demand/ supply forecasting Labor turnover analysis Work environment analysis Human resource plans Operational effectiveness analysis Resourcing Retention Flexibility Productivity Work environment .5.
policy-making activities and certain techniques that are not fully accurate and their reliability is limited. 5. the approach to human resource planning might have to rely on broad scenarios rather than precise forecasts. • Resourcing Strategy: Planning to achieve competitive advantage by developing intellectual capital . • Demand Supply Forecasting: Estimating the future demand of for people (numbers and skills).6 Limitations of Human Resource Planning Human resource planning includes the following Steps: • Forecasting future demand on people. rather than deliberate. or based on unproven beliefs about the future. If it is not. scenario planning. It may contain statements. there will often be reservations about the extent to which this process can be formalized. Resourcing decisions may be based on scenarios riddled with assumptions that may or may not be correct and cannot be tested. • Setting plans to match human supply to human demand. • Operational Effectiveness Analysis: Analyzing productivity. about (for example) building the skill base. What may emerge is simply a broad statement of intent. • Forecasting future availability of people or future supply of people. that are little more than rhetoric. and taking steps to become An 'employer of choice'. • Scenario Planning: Assessing in broad terms where the organization is going in its environment and the implications for human resource requirements. although this could be sufficient to guide resourcing practice generally and would be better than nothing at all. But these steps must take into account the following shortenings: (1) Human resource planning is based on forecast. . These processes are summarized below: • Business Strategic Plan: Defining future activity levels and initiatives demanding new skills. Resourcing strategy may be equally vague. The degree to which human resource planning can be carried out systematically will depend on the nature of the organization. But because of the factors mentioned above. and assessing the number of people likely to be available from within and outside the organization. in terms of the scope it provides for them to use and develop their skills and achieve job satisfaction. it may be fragmented. ensuring that they develop organization specific knowledge and skills. There is much to be said for a systematic approach to developing resourcing strategy.employing more capable people than rivals. This means that business strategy may be evolutionary. then formal planning might be appropriate. the utilization of people and the scope for increasing flexibility to respond to new and changing demands. intuitive and incremental. • Work Environment Analysis: Analyzing the environment in which people work. If the future is fairly predictable. • Labor Turnover Analysis: Analyzing actual labor turnover figures and trends as an input to supply forecasts.52 It is difficult to assume that there is a well articulated business plan as a basis for the HR plans. demand and supply forecasting and labor turnover analysis.
(9) Its predictions are often based on broad scenarios. the stocks and flows of people from within the organization who may be promoted.e. (10) It does not seem to be commonly practiced as a key HR activity. trained. (B) The external labor market. business and the external environment. through which human resource stocks and flows and their relationship to business needs can be better understood.e. . (8) It involves making short term forecasts and predict activity levels and skill requirements with a limited degree of accuracy. regional. and the approach adopted. or redeployed to meet future needs of manpower. rather than on specific supply and demand forecasts. because the ability to make these estimates must be severely limited by the difficulty of predicting the influence of external events. even these organizations may benefit from these aspects of human resource planning that are concerned with policies concentrating on attracting and retaining key staff. − The 'Shift' of policy priorities and strategies within organizations. The extent to which it is used. (E) A part of the human resource planning process may be set on the assumption of 'make or buy' manpower policy. by developing more attractive 'employment propositions'. the external local. will be contingent on the extent to which management recognizes that success. The main source for obtaining people required according to HR plan is the labor markets in which the organization is operating which is distinguished includes: (A) The internal labor market. (5) It has little value when reconciled with the complex and frequently changing nature of manpower. − Distrust displayed by many managers of theory planning concepts. (3) It highlights problems and provides a base that help rasping to unforeseen events. and there is a gap between theory and practice in HR planning arising from: − The impact of change and the difficulty of predicting the future.53 It is better regarded as a regular monitoring activity. so that steps can be taken to deal with them. It is also affected by the degree to which forecasts are accurate. (D) Manpower shortage need to be identified. i. (2) 5.7 The Organizational Context of Human Resource Planning Human resource planning takes place within the context of the organization. and the labor supply in these markets may vary considerably. (6) The typical concept of human resource planning (as a matter of forecasting the long term demand and supply of people) fails. It depends on forecasting future people requirements and implementing plans to satisfy these requirements. (C) There are usually a number of markets. i. However. Organizations operating (in turbulent environments in which future activity levels are difficult to predict) may rely on ad hoc and short term measures to recruit and maintain people. national and international markets from which different types of people can be recruited. assessed and controlled. (7) Human resource planning is more likely concentrate on what skills will be needed in the future rather than concentrating on providing solutions for present problems. as they often prefer pragmatic adaptation than conceptualization. (4) It is seem as investigatory activity by which the human resource implications of particular problems and change situations can be explored and the effects of alternative policies and actions are investigated.
The organization attracts such people by being 'the employer of choice'. (G) A highly entrepreneurial organization operating in turbulent conditions will rely entirely on external recruitment.8. where will the organization be able to find them? • What is needed for developing a skill base in the organization? • What is needed to identify people with potential. what does the organization need to do about it? • Is there any scope to make better use of people and to increase employment flexibility? • Is there any danger of downsizing? If so. upon which most other HRM policies geared towards development and motivation is built. Furthermore. The concept that the strategic capability of an organization depends on its resource capability in the shape of people provides the rationale for resourcing strategy. how the organization is going to deal with it? . When dealing with knowledge workers. The selection and recruitment of workers best suited to meeting the needs of the organization ought to form a core activity. or as trainees. the resourcing strategy should attempt to provide answers to the following questions: • In the light of the business plan. skills. (H) Management consultancies and specialists typically fall into this category. and developing their abilities? • Does the organization have a problem in attracting or retaining key staff? If so. 5. In practice. Firms that can predict people requirements fairly accurately may rely more on developing their own staff once they have been recruited. and behave in ways that maximize their contribution.they tend to be much more mobile. It retains them by providing better opportunities and rewards than others. 5. These people will have a wider and deeper range of skills. and rely mainly on promotion from within and training programs to meet future manpower needs. organizations tend to mix the two policies together.54 (F) A 'make' policy means that the organization prefers to recruit people at a juniors. in both short and long term? • What type of skills are need in the future? • Will the organization be able to meet its needs from the existing resources? • If not.8 5. and resourcing strategy recognizes that external recruitment.2 Checklist Nevertheless. depending on the situation and the type of people involved. the organization deploys its people in ways that maximize the added value they supply. knowledge and potential for future training’. there may be little choice . how many people are needed in key operational or functional areas. and by developing a positive psychological contract which increases commitment and creates mutual trust.8. A 'buy' policy means that more reliance is placed on recruiting from outside 'bringing fresh blood into the organization'. The aim of this strategy is ensuring that the organization can achieve competitive advantage by employing more capable people than its rivals.1 Resourcing Strategy Objective The objective of HRM resourcing strategies is 'to obtain the right basic workforce endowed with the appropriate qualities.
but it can also be regarded as an informal approach to thinking about the future in broad terms. 5.8. and for identifying any external environmental changes that are likely to affect it. Scenario planning is simply a more or less formalized process for establishing a view about any changes that can be foreseen to the scale and type of activities in the organization and to its structure.5 Estimating Future Human Resource Requirements Scenario planning is in some situations.' The creation of a scenario involves making broad assessments of likely internal developments. the management has to prepare longer term plans for meeting them by attracting high quality candidates as the 'employer of choice'. however. concerned with estimating future people requirements. .4 Scenario Planning Scenario planning is sometimes described as a formal strategic planning technique. Attempts can usefully be made to produce demand and supply forecasts. • Setting relation plans: Preparing plans for retaining people needed for the organization. whenever it is feasible and appropriate. It can be described as follows: 'scenario planning tries to open minds to a range of possibilities that organizations may have to confront. The aim is to obtain a better understanding of the possible situations that may have to be dealt with in the future. and thus involve questioning top management and key managers on how they see the future. A scenario can be defined as 'an imagined sequence of future events'. These possibilities are then ordered to produce a series of internally consistent pictures of alternative futures. Assessments also have to be made on likely changes in the external environment as it may affect the labor market. Resourcing strategy provides the basis for these plans. within the framework of business needs. It will.3 Components of Resourcing Strategy Such resourcing Strategy is made up of: • Resourcing Plans: Preparing plans for finding people from within the organization and/or setting training programs to help people learn new skills. The assessments may have to be made in the absence of any articulated business plan.55 5. 5. based upon an analysis of likely changes in the internal and external environment.8. be more strongly based if it is underpinned by a process of scenario planning. If needs cannot be satisfied from within the organization. and asking them to interpret what this means in terms of their human resource needs. It is an intellectual process that seeks to identify issues and examine the possible consequences of events.8. • Setting flexibility Plans: Planning for increased flexibility in the use of human resources to enable the organization to make the best use of people and adapt swiftly to changing circumstances. and to determine what action to be taken in cases of human resource deficit or surplus. the direction in which the organization is going and the likely implications this has on people requirements.
The ideal basis of the forecast is an annual budget and longer term business plan. translated into activity levels for each function and department. In a manufacturing company the sales budget would be translated into a manufacturing plan giving the numbers and types of products to be made in each period. creating a new sales department. a business process re-engineering exercise.8. plans should also be reviewed that could result in rationalization. think about future workloads.5. So far as possible. or decisions on 'downsizing'. 5. 220.127.116.11 Ratio Trend Analysis This is carried out by studying past ratios between. 5.8. From this information the number of hours to be worked by each skill category to make the quota for each period would be computed.2 Managerial of expert judgment This is the most typical method of forecasting that may be linked to some form of scenario planning. or a merger or acquisition.5.5 Forecasting Skill and Competence Requirements Forecasting skill requirements is largely a matter of managerial judgment. either information technology of computerized manufacturing.5.5. the number of direct (Production) workers and Indirect (Support) workers in a manufacturing plant. or developing new products or services. This judgment should. and decide how many people are needed.8.5. and forecasting future ratios. as a result of a cost reduction drive. Activity level forecasts are then used to determine (in this example) direct labor requirements and the forecast ratio of in directs to directs would be used to calculate the number of indirect workers needed. and possibly downsizing. 5.6 Supply Forecasting . 5. however. Details are required of any plans or projects that would result in demands for additional employees or different skills: for example setting up a new regional organizational. This can be no more than guesswork unless there is reliable evidence available of Forecast increases in activity levels or new demands for skills. having made some allowance for changes in organization or methods.1 Demand Forecasting Demand forecasting is the process of estimating the future numbers of people required and the likely skills and competences they will need.8.56 5. be exercised on the basis of a careful analysis of the impact of projected product market developments and the introduction of new technology. new technology leading to increased productivity. Work study techniques for direct workers can be combined with ratio trend analysis to calculate the number of indirect workers needed.4 Work Study Techniques Work study techniques apply work measurement to calculate how long operations should take and the number of people required. It simply requires managers or specialists to Sit down.5.
It can prompt further investigations to establish underlying causes and identify remedies. The forecast will be based on: • An analysis of existing human resources in terms of numbers in each occupation. As this is rarely the case.5. they are seldom used. • Forecast losses to existing resources through attrition (the analysis of labor wastage as described in the next main section of this chapter is an important aspect of human resource planning because it provides the basis for plans to improve retention rates). consideration is given to the following aspects of labor turnover: − significance.57 Supply forecasting measures the number of people likely to be available from within and outside the organization. − How to benchmark rates of turnover. − What it costs. Its − Methods of measurement. internal movements and promotions. − The reasons for turnover. however. 5. More importantly. retention.7 Analyzing Demand and Supply Forecasts The demand and supply forecasts can then be analyzed to determine whether there are any deficits or surpluses. effect of changing conditions of work and absenteeism. This provides the basis for recruitment.5.8. • Forecast changes to existing resources through internal promotions. Computerized planning models can be used for this purpose. however. the analysis of the numbers of leavers and the reasons why they leave provides information that will indicate whether any action is required to improve retention rates. • Sources of supply from within the organization. Mathematical modeling techniques aided by computers can help in the preparation of supply forecasts in situations where comprehensive and reliable data on stocks and flows can be provided. absenteeism. not essential to rely on a software planning package. It is.8. so that calculations can be made on the number of people lost who may have to be replaced. . skills and potential.based on past records Expected losses during the year Balance at end year Number required at end year Number to be obtained during year (1-5 ) Labour Turnover 70 10 Per Cent 7 63 75 8 The analysis of the numbers of people leaving the organization (labor turnover or wastage) provides data for use in supply forecasting.8 Number currently employed Annual wastage rate. and if unavoidable downsizing. In this regard. having allowed for attrition (labor wastage and retirements). The basic forecasting calculations can be carried out with a spreadsheet that sets out and calculates the number required for each occupation where plans need to be made. and changes in hours and other conditions of work. • Sources of supply from outside the organization in the national and local labor markets. plans. as in the following example: 1 2 3 4 5 6 5.
and unless they are understood. although each of these had to be filled 10 times during the year. plus 40 to replace the 20 per cent wastage of the average 200 employees employed). as described below.5. meaning that 30 jobs had become vacant during the year. When assembling and analyzing labor turnover figures. the company would have to recruit 90 employees during the following year in order to increase and to hold the workforce at 200 in that year (50 extra employees. such as knowledge or highly skilled workers.58 5. High rates of attrition can destabilize a business and demotivate those who attempt to maintain levels of service and output against a background of vacant posts. especially in times of heavy recruitment. combined with an ability to secure employment elsewhere. The turnover index is also suspect if the average number of employees upon which the percentage is based is unrepresentative of recent trends because of considerable increases or decreases during the period in the numbers employed.9 The Significance of Labor Turnover The rates of labor turnover provide a graphic illustration of the turbulence within an organization.5. The labor turnover index (sometimes referred to as the employee of labor wastage index) is the traditional formula for measuring wastage. On the other hand. This wastage formula may be simple to use but it can be misleading. 5. it is a simple matter to work out that if a company wants to increase its workforce by 50 people from 150 to 200.' Obviously recruitment.10 Survival Rate A method of analyzing turnover that is particularly useful for human resource planners is the survival rate: the proportion of employees engaged within a certain period who remain with the organization after 50 many months or years of service.8. but this could have been spread throughout the company. especially those who are most difficult to attract and retain. low job satisfaction. These are totally different situations. Turnover may be a function of negative job attitudes. induction and training costs all rise with an increase in labor turnover. There are a number of ways of measuring labor turnover. It can also be used to make comparisons with other organizations which typically adopt this method. The main objection to the measurement of turnover in terms of the proportion of those who leave in a given period is that the figure may be inflated by the high turnover of a relatively small proportion of the workforce. a company employing 150 people might have had an annual wastage rate of 20 per cent. an analysis of trainees who . Thus. inaccurate forecasts would be made of future requirements and inappropriate Actions would be taken to deal with the problem. covering all occupations and long as well any-short service employees. it is important to obtain information on the incidence for different categories of employee. it could have been restricted to a small sector of the workforce .only 20 jobs might have been affected. and while excessively high turnover may be dysfunctional. and the labor turnover rate is 20 per cent (leading to t loss of 30 people). Thus.8. Alternatively. then if this trend continues. turnover is a normal part of organizational functioning. It is calculated as follows: Number of Leavers in a Specified Period (Usually 1 Year) X100 Average Number of Employees during the Same Period This method is commonly used because it is easy to calculate and to understand. a certain level of turnover is to be expected and can be beneficial to an organization. For human resource planning purposes.
which is defined as the time taken for a group or cohort of starters to reduce to half its original size through wastage (five years in the above example).10. 10 of the original cohort of 20 trainees are still with the company. in order to show where action may have to be taken to counter undesirable wastage trends. The distribution of losses for each entry group.8. can be plotted in the form of a 'survival curve' as shown below basic shape of this curve has been found to be similar in many situations. 5. and therefore shows the degree to which there is continuity of employment.8. But this too can be misleading because the index will not reveal the vastly different situations that exist in a company or department with a high proportion of long serving employees.59 have completed their training might show that after two years. 18.104.22.168. or cohort. a survival rate of 50 per cent. although it has been observed that the peak of the curve may occur further along the time scale and/or may be lower when it relates to more highly skilled or trained entry cohorts.13 Choice of Measurement .12 Stability Index The stability index is considered by many to be an improvement on the turnover index the formula is: Number with 1 year's service or more X100 Number employed 1 year ago This index provides an indication of the tendency for longer service employees to remain with the company. in comparison with one where the majority of employees are short service.8.11 Half-Life Index A simpler concept derived from survival rate analysis is the half-life index.5. Figure 5.1 Leavers as a percentage of total entrants Time 5. Comparisons can then be made for successive entry years or between different groups of employees.5.
but it needs to be supplemented with some measure of stability. . A human resource planning exercise requires detailed information on the length of service of leavers.60 It is difficult to avoid using the conventional employee (Labor) turnover index as the easiest and most familiar of all methods of measurement. to identify problem areas and to provide a foundation for supply forecasts.
14 Reasons for Turnover An analysis of the reasons for leaving derived from exit interviews will provide useful information on which to base retention plans. − Direct cost of introducing replacements (induction course. customer satisfaction and support etc. Exit interviews aim to establish why people are leaving. but if turnover is significantly higher than in comparable organizations. Some leavers will be forth. − Direct cost of training replacements in the necessary skills. General issues can be addressed by reviewing employment and reward policies and practices. − Opportunity cost of time spent by HR and line managers in recruitment. Exit interviews should aim to elicit opinions on any specific reasons for dissatisfaction under any of the above non-personal headings.16 Benchmarking Labor Turnover Labor turnover rates provide a valuable means of benchmarking the effectiveness of HR policies and practices in organizations. others will not.5. exit interviews are not completely reliable. − Poor relationship with colleagues. Judgment is required to sort out genuine complaints from unjustified or exaggerated ones.pregnancy. − Poor relationships with manager/team leader. − Better prospects (career move). 5. − Loss arising from reduced input from new starters until they are fully trained. illness. − Personal . However. 5.15 The Cost of Labor Turnover Labor turnover can be costly.5. but if there is a build-up of information that suggests this may be the case. The reasons for leaving can be classified under the following headings: − More pay. interviewing. testing etc). not to persuade them to stay. this should stimulate action to .8.61 5. − More security. − Direct cost of recruiting replacements (advertising.coming. the problem cannot be ignored. An analysis of reasons should take place and trends be noted. − Opportunity cost of time spent by HR and managers in introducing new starters.8. and it is desirable to gain a more comprehensive picture of the views of existing employees through attitude surveys. − More opportunity to develop skills.5. such as bullying. moving away from area etc. − Bullying or harassment. so that where those feelings are justified. cost of induction manuals etc).8. issues affecting particular managers should also be tackled. It is up to the Interviewer to probe skillfully and sensitively to establish reasons for dissatisfaction or unhappiness. sales. − Opportunity cost of time spent by line managers and other staff in providing training. − Loss of the input from those leaving before they are replaced in terms of contribution. This may be difficult if it is a behavioral matter. output.payroll costs and personnel administration of leaver. something can be done about them. They do not tell the whole story. − Better working conditions. The following factors should be considered: − Leaving costs .
as described below. or widening the recruitment net to include. the plans often have to be short term and flexible because of the difficulty of making firm predictions about human resource requirements in times of rapid change. for example. colleges of further education. to recruiting them externally. when they are needed.62 investigate why this is the case and to do something about it. − Plans for tapping alternative sources. universities. flexibility and downsizing. eligible staff. 5. training and careers. However. such as part-timers. for example. 5. the internet etc. adapting working hours and arrangements and leave policies. − The likely sources of candidates such as schools.9.9. more women re-entering the labor market. 5. redeploy. * Internal Resourcing The first step is to analyze the availability of suitable people from within the organization. This could be achieved by such means as generally improving the image of the company as an employer and by offering: − Better remuneration packages. Plans need to be prepared in the areas of resourcing. − Enhanced future employability because of the reputation of the organization as one that employs and develops high quality people. possibly forming a 'Club' to exchange information regularly. which may include flexibility arrangements as discussed later or home working. and to attracting high quality candidates (becoming 'the employer of choice'). 5. Plans can also be made to make better use of Existing employees. and providing child care facilities or vouchers To meet the needs of those with domestic responsibilities. The latter should contain a regularly updated list of employees with the sort of skills needed by the organizationdecisions are then made on what steps should be taken to the top. and provide additional experience and training to. − How the recruitment program will be conducted. − Employment conditions which address work-life balance issues by. by reference to assessments of potential and a skills database. well as the learning opportunities it provides.3 Employer of Choice Plans The recruitment plan should include plans for attracting good candidates by ensuring that the organization will become an 'employer of choice'. − More opportunities for development. . Benchmarking can be carried out by networking with other organizations.1 The Resourcing Plan This needs to consider approaches to obtaining people from within the organization.9 Action Planning Action plans are derived from broad resourcing strategies and more detailed analysis of demand and supply factors.2 The Recruitment Plan This will incorporate: − The numbers and types of employees required to make up any deficits. advertising.9.
job sharing. − Higher productivity on repetitive work because part-time workers can give more attention to their work during their shorter working day. such as research and development scientists or engineers or it specialists. for example. and to the introduction of more flexible working arrangements. or less frequently working alternate weeks.4 Better facilities and scope for knowledge workers. Job sharing also means that a wider employment pool can be tapped. − Lower unit labor costs because overtime levels for full-time workers are reduced. to develop a 'two-tier' workforce in order to provide greater job security for the core workers. may find it more difficult to vary their hours of work. The flexibility plan can be based on a radical look at traditional employment patterns. − Better utilization of plant and equipment by. which could include increasing the number of part-timers. − Improving the utilization of employees' skills and capacities. Greater continuity results because if one-half of the job sharing team is ill or leaves. − Rates of labor turnover may be higher among part-timers. and second. − Helping to achieve downsizing smoothly and in a way which avoids the need for compulsory redundancies.63 − − − 5. Generous relocation payments. the introduction of a 'twilight shift'. − Part-timers may be less committed than full-time employees. Golden hellos' (sums of money paid upfront to recruits). − Increasing Productivity. the expansion of home working or teleworking. dividing pay and benefits between them according to the time each works. by employing a certain percentage of temporary staff at the periphery. * Flexibility Plan The flexibility plan aims at: − Providing for greater operational flexibility. because it suits the needs of individuals. Consideration can also be given to making more use of subcontractors or outsourcing work. * Job Sharing Job sharing is an arrangement whereby two employees share the work of one full-time position. and may be less mobile. the sharer will continue working for at least half the time. The disadvantages of using part-time workers are: − Part-timers are generally less willing to undertake afternoon or evening work. or employing more temporary workers.9. to establish permanent staffing levels to meet minimum or normal levels of demand and rely on temporary staff to cover peaks. − Reducing employment costs. The advantages of job sharing include reduced employee turnover and absenteeism. This means identifying the scope for using alternatives to full-time permanent staff. of those who cannot work full-time . Job sharing can involve splitting days or weeks. The two main new trends in temporary working are first. * Use of Part-Time Workers The advantages of using part-time workers are as follows: − More scope for flexible working hours.
The advantages of these arrangements are: − Flexibility to respond rapidly to fluctuations in demand. This has to be clarified for income tax. * Home Working and Tele-working Home-based employees can be employed in such jobs as Consultants. − Flexible weekly hours. * Flexible Hour Arrangements Flexible hour arrangements can be included in the flexibility plan in one or more of the following ways: − Flexible daily hours. however. The disadvantages are the administrative costs involved and the risk of responsibility being divided. the careful selection and training of Teleworkers. . * Subcontracting Subcontracting enables: − Resources to be concentrated on core business activities. The arrangement does.64 but want permanent employment. Its aim is to achieve greater flexibility. − Flexibility and productivity to be increased. depend for its success on the involvement and education of all employees (full-time and Tele-workers). allocating adequate resources to them and monitoring the operation of the system. − Employment costs to be reduced. − Lower employment costs if the home workers are self-employed (care. Tele-working involves people working at home with a terminal which is linked to the main company or networked with other outworkers. − Flexible daily and weekly hours: varying daily or weekly hours or a combination of both to match the input of hours to achieve the required output. analysts. The decision on how much work can be subcontracted is mainly an operational one. − The degree to which subcontractors will be able to meet delivery and quality requirements . Designers. but the flexibility plan should cover the implications of subcontracting on employment levels and employee relations. * The potential drawbacks include: − The legal status of subcontractors. These may follow an agreed pattern day by day according to typical or expected work loads.it may be more difficult to control their work. programmers or various kinds of administrative work. − Job security for core employees to be enhanced. finance and IT. rapid access to skills and the retention of skilled employees who would otherwise be lost to the company. Tele-workers can be used in a number of functions such as marketing. Such working times. − Reduced overheads. providing for longer weekly hours to be worked at certain peak periods during the year. has to be taken to ensure that they are regarded as self-employed for income tax and national insurance purposes). − Negative reactions from employees and trade unions who prefer work to be kept within the company. national insurance and employment legislation purposes. however.
may fluctuate between a minimum and a maximum. with provisions for the or reduction of hours in any given period. − − . Compressed working weeks in which employees work fewer than the five standard days. according to the demand for goods or services. Annual hours: scheduling employee hours on the basis of the number of hours to be worked.65 unlike daily or weekly arrangements.
66 PART SIX JOB DESCRIPTION AND PERFORMANCE APPRAISAL IN THE PHARMACEUTICAL SECTOR .
Job analysis and design must be based on facts and data. − Supervision given and received. − Financial and budgeting impact. At another level.1 Nature of Job Analysis This is the basic building block of HR management. and employees. − Interactions with others.2 Work Analysis Work analysis studies the workflow. the industrial engineering approach of lime and motion studies is useful in work analysis. not just on personal perceptions of managers. are examined. It has become evident in many organizations that analyzing what employees do in their jobs is vital to maintaining organizational competitiveness. Analyzing work activities and processes may require looking at what capabilities individuals need as well as what they do. and output of a job. duties. skills. . business process. − Knowledge. development of job descriptions and job specifications. 6. A position is a job performed by one person.67 6. and abilities needed. Although the terms job and position are often used interchangeably. Job analysis usually involves the process collecting information about job characteristics that differentiate it from other jobs. supervisors. if there are two people operating word processing equipment. 6. − Performance standards. or individual level. That certainly would be true as office support jobs. activities. A job is a grouping of common tasks. such as the secretarial job. managers and found that design and analysis require greater attention than in the past. Because organizations are changing and jobs vary in different organizations. Thus. and the context in which jobs are performed. context.1. and responsibilities. An understanding of changes in the nature of jobs in organizations is developed through the job analysis.1.1 Job descriptions as a basis for effective performance appraisal and individual motivation Job Analysis Both workers and jobs in organizations change over time. Information that can be helpful in making the distinction includes the following: − Work activities and behaviors. − Machines and equipment used. At one level. This analysis can be conducted on a department. what is done in one department can be looked at in relation to work activities performed elsewhere in the organization. there is a slight difference in emphasis. − Working conditions. It is a systematic way to gather and analyze information about job content and human requirement of that job. Increasingly. there are two positions (one for each person) but just one job (word processing operator). it is being recognized that jobs can be analyzed on the basis of both tasks and competencies. 6.
Job responsibilities are obligations to perform certain tasks and duties.3 Task-Based Job Analysis Analyzing jobs based upon what is done on the job focuses on the tasks. Competencies are basic characteristics that can be linked to enhanced performance by individuals or teams of individuals. rather than preparing them for moving to specific jobs. but they have difficulty identifying what they mean by attitude. This shift emphasizes that it is the capabilities that people have that truly influence organizational performance. duties. but they often include the following: Team orientation.5 Uses of Job Analysis Effective HR management demands that job analysis be the foundation for a number of other HR activities. Examples of the competencies used in organizations vary widely. 6. As the following figure indicates. Ultimately. and responsibilities composing a job. some of the considerations are how it is to be done. one task associated with that duty would be asking questions. For instance. and who conducts the analysis and uses the data. skills.68 6. while continuing to be relevant in areas where jobs remain taskbased. The competency approach uses some methodologies to help supervisors identify examples of what they mean by attitude and how those factors affect performance. job analysis may change in order to address the changing nature of broader and looser jobs in some areas. Adaptability. The groupings of competencies may include knowledge. Instead of thinking of individuals having jobs that are relatively stable and can be written up into typical job descriptions. so that job descriptions . Development of employees focuses on enhancing their competencies. 6.1.1. The process of analyzing jobs in organizations requires planning of several factors. who provides data. The competency approach also attempts to identify the hidden factors that are often critical to superior performance. The competency approach considers how the knowledge and skills are used. if one of the employment supervisor's duties is to interview applicants. Leadership. duties. For example. the remainder of this chapter concentrates on this traditional job analysis process. Technical expertise. It also encourages employees to develop competencies that may be used in diverse work situations. and responsibilities performed in a job. rather than being boxed into a job. it may be more relevant to focus on the competencies used. many supervisors talk about employees' attitudes. and abilities. The competency approach focuses on linking business strategies to individual performance efforts. Because both tasks and duties describe activities. rather than on the tasks. Because the task-based approach is much more common. A task is a distinct. whereas a duty is a larger work segment composed of several tasks that are performed by an individual.1. identifiable work activity composed of motions. In this way they can develop capabilities useful throughout the organization as it changes and evolves.4 Competency Approach to Job Analysis There is a growing interest in focusing on the competencies that individuals need in order to perform jobs. it is not always easy or necessary to distinguish between the two.
The most fundamental use of job analysis is to provide the information necessary to develop job descriptions and specifications. skills. A brief overview of each section follows next. Once those decisions are made. KSAs include education. A job description indicates the tasks. Performance standards should flow directly from a job description. duties. experience. work skill requirements. why it is done. and abilities (KSAs) an individual needs to perform a job satisfactorily. . not necessarily what qualifications the current employee possesses.2. then several results are linked to a wide range of HR activities. showing what the job accomplishes and how performance is measured in key areas of the job description. and responsibilities of a job. job specifications list the knowledge.3 Job Families and Organization Charts Once all jobs in the organization have been identified. a more detailed discussion appears later.1 Figure showing Decision in the Job Analysis Process Methods Questionnaires Interview Observations Diaries/ Logs Data Resources Employees Supervisors Managers Conducted by: HR Specialists Outside Consultants Supervisors /Managers Prepared into: Job Description Job Specification Reviewed by: HR Specialists Managers / Supervisors Employees While the job description describes activities to be done. and mental and physical requirements. Organization charts have traditionally been hierarchical that show the reporting relationships for authority and responsibilities. A job family is a grouping of jobs with similar characteristics.2 Job Descriptions and Job Specifications In most cases. It identifies what is done. In identifying job families. the charts can help clarify who reports to whom. personal abilities. they have a much better chance of performing satisfactorily. and—briefly—how it is done. Figure 6. An organization chart depicts the relationships among jobs in an organization. There are various ways of identifying and grouping job families. 6.69 and job specifications can be prepared and reviewed. where it is done. In most organizations. 6. If employees know what is expected and how performance is to be measured. it is often helpful for communicating with employees to group the jobs into job families and display them on an organization chart. significant emphasis is placed on measuring the similarity of jobs. It is important to note that accurate job specifications identify what KSAs a person needs to do the job. the job description and job specifications are combined into one document that contains several different sections.
based on job analysis. effective HR management would demand it. and therefore more pay. Without a systematic investigation of a job. whether recruited internally or externally Compensation: Job analysis information is vital when determining compensation. Safety. current number of jobs and positions. . and reporting relationships of the jobs.1 Job Analysis and Other HR Activities Union Relations HR Planning Health. job analysis information is used to determine job content for internal comparisons of responsibilities and external comparisons with the compensation paid by competing employers. Current job descriptions provide the basic details necessary for this internal assessment. Organizations use job analysis to identify job specifications in order to plan how and where to obtain employees for anticipated job openings. By identifying the functions currently being performed and calculating the time being spent to perform them. is at the heart of many other HR activities. and Security Job Analysis Job Description Recruiting Performance Appraisal Job Specifications Selection Training and Development Compensatio n HR Planning: HR planning requires auditing of current jobs. an employer may be using requirements that are not specifically job related. duties. Figure 6.4 Job Analysis and HR Activities The completion of job descriptions and job specifications. as the following figure indicates. managers and HR specialists can redesign jobs to eliminate unnecessary tasks and combine responsibilities where desirable. including such items as the jobs available.3. Recruiting and Selection: Equal employment opportunity guidelines clearly require a sound and comprehensive job analysis to validate recruiting and selection criteria. Information from job analysis can be used to give more weight. and responsibilities. As part of identifying appropriate compensation. to jobs involving more difficult tasks.70 6. But even if" legal requirements did not force employers to do job analysis.
71 Training and Development: By defining what activities make up a job. Safety and Health: Job analysis information is useful. a job analysis identifies the percentage of time spent on each duty in a job. while necessary. regulations. The Americans with Disabilities Act (ADA) has increased the emphasis on job analysis. 6. job descriptions. These laws indicate that the percentage of time employees spend on routine. manual. Also. Developing clear. or clerical duties affects whether they must be paid overtime for hours over forty per week. as well as developing and maintaining current and accurate job descriptions. Typically. can be a demanding and threatening experience for both managers and employees. a supervisor can determine the employee's performance level.1 Job Analysis and Legal Issues Permeating the discussion of equal employment laws. and train workers. in identifying possible job hazards and working conditions associated with the job.3 Having identified the essential job functions through a job analysis. both managers and employees hope that "puffing up" their jobs will result in higher pay levels. Because job analysis information is used for compensation purposes. Employees and managers also tend to inflate the importance and significance of their jobs. Wage/ Hours Regulations. specify work methods. Performance Appraisal: With performance standards to compare what an employee is supposed to be doing with what the person actually has done. This information helps determine whether someone should be classified as exempt or nonexempt under the wage/hour laws. Information from job descriptions and job specifications can also help in career planning by showing employees what is expected in jobs that they may choose in the future. HR managers and their organizations must identify job activities and then document the steps taken to identify job responsibilities. Job analysis involves determining what the "core" job is. supervisors. The 1978 Uniform Selection Guidelines make it clear that 1IR requirements must be tied to specific job-related factors if employers are to defend their actions as a business necessity. The performance-appraisal process should then tie to the job description and performance standards. One-result of the ADA is increased emphasis by employers on conducting job analysis. the core job duties and KSAs must be considered.5 Behavioral Aspects of Job Analysis A detailed examination of jobs. an employer must be prepared to make reasonable accommodations. realistic performance standards can also reduce communication problems in performance appraisal feedback among managers. a job analysis helps (he supervisor explain that job to a new employee. and job specifications. 6. From the information gathered. Job specification information can point out areas in which employees might need to develop in order to further their careers. Again. some employees may fear that an analysis of their jobs . and employees. The Americans with Disabilities Act (ADA). managers and HR specialists can work together to identify the health and safety equipment needed. in part because job analysis can identify the difference between what is currently being performed in a job and what should be done. and court cases in preceding chapters is the concept that legal compliance must focus on the jobs that individuals perform.4.
Perhaps the most effective way to handle anxieties is to involve the employees in the revision process. questionnaires. job analyst. interviews. Observation may be continuous or based on inter mittent sampling. 6.4 Computerized Job Analysis As computer technology has expanded. Combinations of these approaches frequently are used.2 Interviews The interview method of gathering information requires that a manager or HR specialist visit each job site and talk with the employees performing each job. a manager.6.3 Questionnaires The questionnaire is a widely used method of gathering data on jobs. Having a well-written and well-communicated job description can assist employees by clarifying what their roles are and what is expected of them. or industrial engi neer observes the individual performing the job and takes notes to describe the tasks and duties performed. combining the interview with one of the other methods is suggested. Thus.6. and specialized methods of analysis. the questionnaire method is usually combined with interviews and observations to clarify and verify the questionnaire information. observation may be more useful for repetitive jobs and in conjunction with other methods. A standardized interview form is used most often to record the information.6 Job Analysis Methods Job analysis information can be gathered in a variety of ways.1 Observation are ation and When the observation method is used. Common methods observation. especially if the interviewer talks with two or three employees doing each job. limiting their creativity and flexibility by formalizing their duties. Each of these methods is discussed in some detail next. The interview method can be quite time-consuming. Professional and managerial jobs often are more complicated to analyze and usually require longer interviews. researchers have developed computer job analysis systems. An important feature of computerized job analysis ized sources is . However. For these reasons.viewed to obtain a complete understanding of the job. both the employee and the employee's supervisor must be inter.6. Employees may vary in their perceptions of the jobs. Use of the observation method is limited because many jobs do not have complete and easily observed job duties or complete job cycles. 6. depending on the situ the organization. Frequently. 6. and even in their literacy.6.72 will put a "straitjacket" on them. However. 6. 6. For these reasons. A survey instrument is developed and given to employees and managers to complete. the questionnaire method assumes that employees can accu rately analyze and communicate information about their jobs. The major advantage of the questionnaire method is that information on a large number of jobs can be collected inexpensively in a relatively short period of time. it does not necessarily follow that analyzing a job will limit job scope or depth.
the objective could be to change the structure in parts of the organization to align it better with busi ness strategies. A computerized job analysis system often can reduce the time and effort involved in writing job descriptions. following appropriate management and professional psychometric practices. the . 6.5 The Job Analysis Process The process of job analysis must be conducted in a logical manner. Therefore. Or. Also. The stages for a typical job analysis are outlined here.5.6. All of this specific data is compiled into a job analysis database. These systems have banks of job duty state ments that relate to each of the task and scope statements of the questionnaires. but they may vary with the methods used and the number of jobs included. Probably the most important con sideration is to identify the objectives of the job analysis.6. a multistage process usually is followed.73 the specificity of data that can be gathered. Another objective could be to redesign the jobs in a department or division of the organization. 6. it may include as an outcome revising the compen sation programs in the organization.1 Planning It is crucial that the job analysis process be planned before beginning the gath ering of data from managers and employees. The following figure illustrates basic stages of the process. Maybe it is just to update job descriptions. regardless of the job analysis methods used.
II. This step allows for comparison of details from similar jobs throughout the organization. B. The methods selected will determine the timeline for the project.1 Stages in the Job Analysis Process I.3 Conducting the Job Analysis With the preparation completed. Review existing fob documentation. C.5. Identify recommendations D. Identify jobs and methodology. and other industry-related resources all may be useful to review. B.6.5. Preparing and Communicating the Job Analysis A.74 Figure 6. Planning the job analysis A. III.1. . previous job analysis information. Sufficient time should be allotted for obtaining the information from employees and managers.6. Finalize job descriptions and recommendations. B. Developing Job Descriptions and Job Specifications A. C. B. The data also should be reviewed for completeness. 6. such as union stewards. IV. Review drafts with managers and employees. the job analysis can be conducted. Review and compile data. Update job descriptions and specifications as organization changes. Communicate process to managers and employees. affected employees. Explanations should address the natural concerns and anxieties people have when someone puts their jobs under close scrutiny and anticipate issues likely to arise. V. Once details from job analysis have been compiled. Another task in the identification phase is to review existing documentation. Conducting the Job Analyses A. 6. Existing job descriptions. Obtain top management support. Periodically review all jobs. B. and oilier concerned people. and follow-up may be needed in the form of additional interviews or questions to be answered by managers and employees. they should be sorted by job family and organizational unit.6. Draft job descriptions and specifications. Identify objectives of job analysis.5. Gather job analysis data. A crucial step is to communicate and explain the process to managers. Maintaining and Updating Job Descriptions and Specification A. organization charts.2 Preparation and Introduction Preparation consists of identifying the jobs under review.
the entire process. the job analysts will prepare draft job descriptions and job specifications. skills." * Essential Functions and Duties. describe the essence of the job. job descriptions are distributed by the HR department to managers. 6. and date of analysis may be given.4 Job Description and Job Specifications The output from analysis of a job is used to develop a job description and job specifications. and (3) physical requirements and/or working conditions. reporting relationships. One HR specialist has characterized the general summary statement as follows: "In thirty words or less. When finished.5. The second part is the general summary which is a concise statement of the general responsibilities and components that make the job different from others.6. duties. The first part of the job description is the identification section. . Together. It is important that each supervisor or manager review the completed description with individual employees so that there is understanding and agreement on the content that will be linked to performance appraisals. * General Summary. organizations have found that having managers and employees write job descriptions is not recommended. location. Once job descriptions and specifications have been completed and reviewed by all appropriate individuals. supervisors.5. and responsibilities performed. The drafts should be relatively complete and identify areas where additional clarifications are needed. it is advisable to note other information that is useful in tracking jobs and employees through a human resource information system. The job specifications typically are stated as (1) knowledge. They also serve individual employees by providing documentation by management that identifies their jobs. as well as to all other HR activities. 6.6 Job Specifications The next portion of the job description gives the qualifications needed to perform the job satisfactorily. department.75 At this stage. Otherwise. The third part of the typical job description lists the essential functions and duties. Overviews of the most common components are presented next. beginning with job analysis. It contains clear. Generally. a system must be developed for keeping them current.6. and employees. Writing this section is the most time-consuming aspect of preparing job descriptions. (2) education and experience. Usually.5 Job Description Components A typical job description contains several major parts. and abilities. precise statements on the major tasks. in which the job title. they summarize job analysis information in a readable format and provide the basis for defensible job-related actions. 6. The components of the job specifications provide information necessary to determine what accommodations might and might not be possible under Americans with Disabilities Act regulations.6. may have to be repeated in several years.5. * Identification.
6.76 * Disclaimer and Approvals.6. (2) to what applied. Legal compliance requires that they accurately represent the actual jobs. There is a real art to writing statements that are sufficiently descriptive without being overly detailed. the job specifications listed should reflect what is necessary for satisfactory job performance.7 Writing Job Descriptions All HRM literature focuses attention on the importance of well-written job descriptions. specific functional duties should be grouped and arranged in some logical pattern. Obviously. 6. It is ADA important average duties so that the most essential (in criticality and amount of time spent) be listed first and the supportive or marginal ones listed later within that framework. statements relating to the preparation of reports should be grouped together.6. The final section on many job descriptions contains approval signatures by appropriate managers and a legal disclaimer. . The general format for an essential function statement is as follows: (1) action verb. the job analysis process provides the primary starting point. so that the job description is not viewed as a "contract" between the employer and the employee.8 Writing Job Specifications Job specification can be developed from a verity of information sources. Furthermore. But any job specification included must be based on what is really needed to perform a job. not what the ideal candidate would have. (3) what/how/how often. The miscellaneous clause typically listed last is included to assure some managerial flexibility. Job titles should be descriptive of job functions performed.5. It is important to use precise action verbs that accurately describe the employee's tasks. If a job requires an accounting supervisor to prepare several reports. This disclaimer allows employers to change employees’ job duties or request employees to perform duties not listed. and responsibilities.5. among other functions. duties.
77 PART SEVEN RECRUITMENT AND SELECTION .
Part seven covers the main features of the recruitment and selection process in the areas of obtaining and selecting candidates under the following headings: defining requirements. using agencies and consultants. The best approach is to distinguish between essential and desirable requirements. which is derived from the human resource plan. types of interviews. improving the effectiveness of recruitment and selection. It is natural to go for the best. assessing candidates. attracting candidates. and these demands should be checked to ensure that they are justified. and assess candidates. educational and experience requirements produces the job criteria against which candidates will be assessed at the interview or by means of psychological tests. outsourcing recruitment. testing. final stages. − − − − − − − − . Defining Requirement The number and categories of people required should be specified in the recruitment program. Selecting candidates: Sifting applications. A role profile will set also out output expectations and competency requirements for interviewing purposes 'competency-based recruitment is considered in more detail below). brief agencies or recruitment consultants. But more information may be required to provide the complete picture for advertising and briefing candidates on terms and conditions and career prospects. Understating requirements can be equally dangerous. offering employment. skill. interviewing. The three stages of recruitment and selection are: Defining requirements: Preparing job descriptions and specifications. Requirements for particular positions are set out in the form of job descriptions and person specifications. but setting an unrealistically high level for candidates increases the problems of attracting them. The Recruitment and Selection Process The overall aim of the recruitment and selection process should be to obtain. obtaining references. Attracting candidates: Reviewing and evaluating alternative sources of applicants. assessment centers. but it happens much less frequently. and results in dissatisfaction when they find their talents are not being used. The biggest danger to be avoided at this stage is that of overstating the competencies and qualifications required. deciding terms and conditions of employment. It may be particularly necessary to check on the need for a replacement or the level or type of employee that is specified. the number and quality of employees required to satisfy the human resource needs of the company. preparing contracts of employment. a. there will be demands for replacements or for new jobs to be filled. These provide the basic information required to draft advertisements. qualifications and offers. inside and outside the company. A role profile listing competence. advertising. In addition. references.78 7. at minimum cost. advertising.
appearance. * Behavioral competencies: able to relate well to others and use interpersonal skills to achieve desired objectives. . The most familiar are the seven-point plan> The seven-point plan The seven-point plan covers: physical make-up . special aptitudes . able to maintain appropriately directed energy and stamina.mechanical. inputting data to computers. physically active. acquired qualifications . Additional information can be provided on specific demands.education. job analysis. selfreliance. physique. general intelligence . social. able to influence the behavior and decisions of people on matters concerning recruitment and other personnel or individual issues. (1) Work-based competences: * Essential in: all aspects of recruitment including test administration. practical.intellectual. A basic approach is to set out and define the essential or desirable requirements under the key headings of competences.domestic circumstances. interviewing techniques. vocational training. bearing and speech. steadiness. conducting training sessions. appearance. * Qualifications/experience: Alternatively. orally and on paper. focus on achieving results. of course. occupations of family. attainments .acceptability. Circumstances .education. influence over others. able to make sense of issues. counseling techniques. administering fairly complex paperwork processes. It is. speech and manner. * Desirable in: administering OPQ test. identify and solve problems and 'think on one's feet'. There are various ways of doing this. facility in the use of words or figures. disposition .health. interests . dependability. artistic. one of the traditional classification schemes can be used. necessary to spell out separately the terms and conditions of the job.physical make-up. work experience. to exercise self-control and to learn new behaviors. qualifications and training and experience. they should be analyzed under suitable headings. job evaluation. able to cope with change. qualifications.fundamental intellectual capacity.79 When the requirements have been agreed. constructional. lo be flexible and to handle uncertainty. able to communicate well. * The fivefold grading system: The fivefold grading system covers: impact on others . experience. manual dexterity.
for example. o It helps to prevent interviewers making 'snap' judgments. * Choice of system: Of these two systems. and that those characteristics will be described in terms which both can understand and agree. but increasingly. o They can be used as criteria in an assessment centre. if team management is a key competence area. The framework can be defined in terms of work-based competences. tests and assessment centers. are most likely to produce useful evidence. o They can be assessed in a targeted behavioral event interview in which. and success in achieving them. leadership. The benefit of taking a competencies approach is that people can identity and isolate the key characteristics which would be used as the basis for selection. * Using a competency-based approach: A competency-based approach means that the competencies defined for a role are used as the framework for the selection process. initiative. The advantages of a competency-based approach can be summarized as follows: o It increases the accuracy of predictions about suitability. candidates can be asked to give examples of how they have successfully built a team and got it into action. the seven-point plan has the longer pedigree.application forms.g. The competencies therefore become a fundamental part of the selection process. It can also include definitions of required behavioral competencies. interviewers are using a competency-based approach. It provides the information required to conduct a structured interview in which questions can focus on particular competency areas to establish the extent to which candidates meet the specification as set out in competency terms. The fivefold grading scheme is simpler.natural quickness of comprehension and aptitude for learning. o It can underpin the whole range of recruitment techniques . o It facilitates a closer match between the person's attributes and the demands of the job. Adjustment emotional stability. achievement motivation. ability to stand up to stress and ability to get on with people. which refer to the personal characteristics and behavior required for successful performance in such areas as interpersonal skills.80 innate abilities . The competencies used for recruitment and selection purposes should meet the following criteria: o They should focus on areas in which candidates will have demonstrated their competency in their working or academic life .g. teamwork. personal drive.e. interviews. his or her consistency and determination in following them up. and places more emphasis on the dynamic aspects of the applicant's career. such as psychological testing or assessment centers. Both can provide a good framework for interviewing. (earn membership and analytical ability. leadership. o They are likely to predict successful job performance. A competencies approach can help to identify which selection techniques. communication skills. . e. which refer to expectations of what people have to be able to do if they are going to achieve the results required in the job. motivation the kinds of goals set by the individual. in some ways.
in which the preferences of potential customers are compared with the features of the product in order that those aspects that are likely to provide the most appeal to the customers can be emphasized. in a sense. These need to be compared with the competition in order that a list of what are. 7. are advertising. . Security of employment. the intrinsic interest of the job.1 Attracting Candidates Attracting candidates is primarily a matter of identifying. the company. If there are no people available within the organization the main sources of candidates. opportunities for education and training. 7. in cases where difficulties in attracting or retaining candidates arc being met or anticipated.2 Analysis of recruitment strengths and weaknesses The analysis of strengths and weaknesses should cover such matters as the national or local reputation of the organization. the labor market is a buyer's market. Candidates are.81 A competency approach along these lines can provide the most effective means of identifying suitable candidates as part of a systematic selection process. employee benefits and working conditions. it may be necessary to carry out a preliminary study of the factors that are likely to attract or repel candidates . Consideration should be given as to whether it might be better to use an agency or a selection consultant. create and maintain interest . selling themselves. brochures or interviews. speed and the likelihood of providing good candidates. in the latter sense. the terms and conditions of employment and the qualifications required. Or it might have the more constructive aim of showing where the organization needs to improve as an employer if it is to attract more or better candidates and to retain those selected. refer to the three criteria of cost.it must compete for the interest of potential candidates against other employers. evaluating and using the most appropriate sources of applicants. in effect. preferably on the basis of experience. 7. selling points can be drawn up as in a marketing exercise. Advertising is the most obvious method of attracting candidates. The objectives of an advertisement should be to: Attract attention . However. although some organizations with powerful equal opportunity policies (often local authorities) insist that all internal candidates should apply for vacancies on the same footing as external candidates. career prospects. When making the choice. and the location of the office or plant. pay. and outsourcing to consultants or agencies. If. but they are also buying what the organization has to offer.3 Sources of candidates First consideration should be given to internal candidates.it has to communicate in an attractive and interesting way information about the job. that they will not do. the first question to ask is whether an advertisement is really justified. then the organization that is selling itself to candidates must study their needs in relation to what it can provide.the strengths and weaknesses of the organization 3s an employer. The aim of the study might be to prepare a better image of the organization for use in advertisements. This means looking at the alternative sources mentioned above and confirming. Nevertheless.
4 Decide who does what When planning a campaign or recruiting key people. They are cheap but suitable only for junior or routine jobs.the message needs to be convoyed in a manner that will not only focus people's eyes on the advertisement but also encourage them to read to the end. The name of the company should be given. 7. This will vary from candidate to candidate. determination and initiative. The headline is all-important.if you want to remain anonymous. These have no real meaning to candidates. The essential features of the job should be conveyed by giving a brief description of what the job holder will do and.82 Stimulate action . − the action to be taken. as well as prompt a sufficient number of replies from good candidates. and any other areas of interest to potential candidates. No one will admit to not having either of them. It can devise an attractive house style and prepare layouts that make the most of the text. there is much to be said for using an advertising agency. Moreover. the scope and scale of activities. as far as space permits. There is no point in overstating requirements and seldom any point in specifying exactly how much experience is wanted. Be careful about including a string of personal qualities such as drive. in which copy is run on. help in response analysis and take up the burden of placing advertisements. 7. Do not use box numbers . 7. it can advise on ways of achieving visual impact by the use of illustrations and special typographical features. use a consultant. the logo and any 'white space' round the advertisement. The qualifications and experience required should be stated as factually as possible. Finally. such as career prospects. − the pay and benefits offered.qualifications. Create interest in the job but do not oversell it. an agency can advise on media. − the person required . − the location. An agency can provide expertise in producing eye-catching headlines and writing good copy. such as growth or diversification. The simplest and most obvious approach is to set out the job title in bold type. Phrases such as 'proven track record' and 'successful experience' are equally meaningless. and the other details about the job and the rate of pay should provide them with enough information about the sort of experience required. . Add any selling points. with no white space in or around the advertisement no paragraph spacing or indentation.6 Choose type of advertisement The main types of advertisement are the following: Classified/run-on. experience etc. − the job.5 Write the copy A recruitment advertisement should start with a compelling headline and then contain information on: − the organization.
They are fairly cheap. They can be expensive but obviously make the most impact for managerial. and semi-display can be much more effective than run-on advertisements. Cost per reply is the best ratio. paragraphs can be indented and white space is allowed round the advertisement. It can be cheaper to advertise. Full display. . hut results can be erratic and it may be advisable to use them to supplement a national campaign.1 Interviewing panels Two or more people gathered together to interview one candidate may be described as an interviewing panel. The popular press can be used to reach staff such as sales representatives and technicians. which are bordered and in which any typeface and illustrations can be used.9 Outsourcing Recruitment Most private agencies in Egypt deal with high qualified staff. 7. Local papers are obviously best for recruiting office staff and manual workers. The interviewers can discuss their joint impressions of the candidate's behavior at the interview and modify or enlarge any superficial judgments. 7. It involves face-to-face discussion and provides the best opportunity for the establishment of close contact-rapportbetween the interviewer and the candidate.10 The individual interview is the most familiar method of selection. The so-called 'quality papers' are best for managerial. If only one interviewer is used. and this is one reason for using a second interviewer or an interviewing panel. This has the advantage of enabling information to be shared and reducing overlaps.8 Evaluate the response Measure response to provide guidance on the relative cost-effectiveness of different media. 7. Agencies can charge a fee of one month salary for finding someone.7 Plan the media An advertising agency can advise on the choice of media (press. They are usually quick and effective but quite expensive. technical and professional jobs. Agencies should be briefed carefully on what is wanted. 7. television) and its cost. Types of Interviews ( Individual interviews) 7. Professional and trade journals can reach your audience directly. in which the headings can be set in capitals. They produce unsuitable candidates from time to time but the risk is reduced if they are clear about your requirements.10. The most typical situation is that in which a personnel manager and line managers see the candidate at the same time. professional and technical jobs. there is more scope for a biased or superficial decision.83 Classified/semi-display.
Previous or present employers who give references tend to avoid highly detrimental remarks either out of charity or because they think anything they say or write may be construed as slanderous or libelous (references are. especially those whose only purpose in applying for the job was to carry out a test marketing operation. a provisional decision to make an offer by telephone or in writing can be made. or to obtain a lever with which to persuade their present employers to value them more highly. psychological tests should be used to extend the data obtained from the interview. It is simply necessary to confirm the nature of the previous job. convened by an official body because there are a number of parties interested in the selection decision.2 Selection boards Selection boards are more formal and. the reason for leaving (if relevant). . of course. They can also underestimate the qualities of those who happen to be less effective in front of a formidable board. Opinions about character and suitability are less reliable and should be treated with caution. usually. the period of time in employment. of course. the salary or rate of pay and. The disadvantages are that the questions tend to be unplanned and delivered at random. The factual information is straightforward and essential. the predictive quality of the traditional interview is limited.12 References and Offers After the interviewing and testing procedure has been completed. This is normally ‘subject to satisfactory references' and the candidate should. privileged as long as they are given without malice and are factually correct). be told that these will be taken up. the prejudices of a dominating member of the board can overwhelm the judgments of the other members. The reason is obvious. 7. * References. entirely useless.purpose and method: The purpose of a reference is to obtain in confidence factual information about a prospective employee and opinions about his or her character and suitability for a job. but in doing so they may miss the underlying weaknesses of a superficially impressive individual. in fact. and the candidates are unable to do justice to themselves because they are seldom allowed to expand.11 Improving the Effectiveness of Recruitment and Selection The first requirement is to take great care in specifying the competences and behavioral characteristics required of employees. Their only advantage is that they enable a number of different people in have a look at the applicants and compare notes on the spot. The second is to use a wider range of methods to identify candidates who match the specification. Applicants often withdraw. 7. If there is more than one eligible candidate for a job it may be advisable to hold one or two people in reserve. As noted earlier. All they prove is that the applicant has at least one or two friends. the attendance record.84 7. Wherever possible. although they would be fully competent in the less formal or less artificial situations that would face them in the job. larger interviewing panels. Personal referees are. structured interviewing techniques should be adopted as described . possibility. Selection boards tend to favor the confident and articulate candidate.10. At the very least.
Employer references are necessary to check on the facts given by the prospective employee.13 Confirming the offer The final stage in the selection procedure is to confirm the offer of employment after satisfactory references have been obtained. The questions asked on this form could include: − What was the period of employment? − What was the job title? − What work was carried out? − What was the rate of pay or salary? − How many days' absence over the last 12 months? − Would you re-employ (if not. They may take the form of an invitation to write a letter confirming the employment record and commenting on the applicant's character in general. A very glowing reference may arouse suspicion. by telephone if possible. why not)? Telephone references may be used as an alternative or in addition to written references. if only because they ore so infrequent. and it is worth comparing it with a reference from another employer (two employment references are desirable in any case). The contract of employment should also be prepared at this stage.85 Written references save time. how well can existing or ex-employers judge the suitability of someone they may not know particularly well for another job in a different environment? More factual answers may be obtained if a standard form is provided for the employer to complete. and the applicant has passed the medical examination required for pension and life assurance purposes or because a certain standard of physical fitness is required for the work. Unless the job and companies are identical. 7. But allowance should be made for prejudice and a check should be made. If brief details about the job are included (these may be an extract from the advertisement – they should certainly not be an over-elaborate job description). The great advantage of a telephone conversation is that people are more likely to give an honest opinion orally than if they have to commit themselves in writing. It may also save time to use the telephone. . But this is asking a lot. especially if they are standardized. Poor or grudging references must create some alarm. Opinions have to be treated with more caution. previous employers can be asked to express their views about the suitability of the individual for the job.
86 PART EIGHT COMPUTER APPLICATION IN HUMAN RESOURCES .
(5) Assessment of the 'health' of the organization. human resources requirements. (4) Reduce the workload of the HR function. These benefits will only be achieved in full if a strategic and organization view is taken of HR information requirements. (4) Determination of the performance and personality characteristics of the people who will be successful in the organization. 8. If the system is simply used to automate certain aspects of HR administration such as record keeping it will not realize its full potential. and the utilization of human resources. (2) Provide a conduit to link HR policies and processes throughout the organization. not just cutting costs. Benefits of a Computerized Human Resource Information System A human resource information system can: (1) Enable the HR function to provide better services to line management. (7) Analysis of the scope for cutting down the number of employees. Specifically the information may focus on areas such as: (1) Organization development.it helps in the identification of the benefits of HR strategies in terms that the business can recognize as adding value. (6) Analysis of productivity levels. second: with the range of applications which should be included in the system and finally with the provision to line managers of the facility to have direct access to any personnel data they need to manage their own teams in a devolved organization. 8.1 HR Information Strategy The HR strategy of an organization in relation to HR information is concerned first: with the use of computerized information for strategic decision making. (2) Human resources plans. starting from basic employee records and extending to highly sophisticated 'expert' systems which focus on fundamental HR decision areas. . (3) Determination of future development and training needs.1. employee development and organizational health. 8.2 Range of applications There is an immense range of applications to choose from. thus facilitating the development of an integrated and coherent approach to HR management. enabling personnel people to access and analyses information quickly to put their ideas and plans to the test .1 Strategic decision taking The strategic areas involving computerized information and the knowledge gained from analyzing that information includes macro concerns about organization. (3) Provide essential data for strategic HR decision taking. eliminating low-value tasks while still enabling the function to provide efficient administrative services.1.87 8.
(2) Payroll. The features that were not so highly rated were: (1) Psychometric testing. job description or role definition.2. (6) Systems may be completely integrated with payroll. hours. (10) Appraisal records. (4) Organization charting.2. including grade. (10) Disciplinary recording. (4) Sophisticated modeling tools for such activities as human resources planning and reward management. skills and qualifications. locations. (7) Annual leave records. leave and absence records.1. The additional 'functionality' that a system can incorporate comprises: (1) The recording and analysis of absence.88 8. or more commonly they maintain a direct link.2 Rating of "System Features" The systems features rated highly by organizations are: (1) Employee records. (8) Workforce planning. (6) Absence recording and monitoring. An effectives system will have the following features: (1) Meets business needs. (11) Salary modeling. (4) Equal opportunity monitoring. (3) Job evaluation. pay and benefits. (6) ‘What-if' modeling. which enable the system to be used to support strategic decision-making.1 The Functions of a Computerized HR System The basic functions of a computerized HR system are to: (1) Hold personal details about individual employees including career history. (9) Training needs analysis. (3) Produce reports summarizing different aspects of this information. attendance and labor turnover (2) Recruitment and training administration. (2) Lip evaluation. (2) Hold details about employees' jobs. 8. (9) Attendance recording. (3) Sick pay and maternity pay calculations. (3) Shift or roster planning. (5) Linkages to the internet or to the internal intranet. .1. (5) Succession planning. (5) Production of standard letters and contracts. (7) Jobs /skills matching. (8) Enquiries.
Main problems of computerized HR system and how to deal with them: Computer system problems and solutions Problems Solutions Poor data quality Pay particular attention to getting accurate data into the system by training and monitoring. Reliability. Line managers resent having (1) Minimize form filling. (3) Links to other systems. Lack of understanding of the Provide ‘contextual training’ covering: system by users (1) Data sources (who provides the data and in what form). .this is an aspect (2) Take care in designing report layouts and contents on or system that causes mot the basis of surveys of user needs. to contribute or maintain (2) Ensure that managers can access the system easily. (3) Advise managers on how they can use the system to their benefit. Flexibility. Lack of clarity about Ensure that care is taken in specifying responsibilities and responsibilities for spelling out how information can be used supported by generating information on training and continuing guidance (a ‘help line’ to a systems how the system can be used or networks manager is a good idea) to generate useful information Inadequate reporting (1) Define report specifications carefully in advance.2 User-friendliness. dissatisfaction (3) Check views about the quality of reports and amend them as necessary. Good reporting facilities. Good supplier support. (2) Why different pieces of data are collected. Land equate coding of data Take care in setting up coding structures and train users in producing unhelpful reports how to use codes. Value for money. capability . information possibly via the intranet.89 (2) (3) (4) (5) (6) (7) 8.
• Prepare a high-level statement of requirement. • Database management. • Identify the options available to meet the HR business requirements. • The development program.4. • Systems that provide the information needed by line managers in an easily understood format.4. not simply a management information system. either because this is happening generally within organizations or because of the special advantages of having a distributed and easily accessible system for personnel application. 8.1 Database management . 8. (2) Define what outputs are required from the system in the form of information and reports. not just a dedicated expert. But if this is the policy. The detailed points to be considered when developing a system are: • The choice of hardware.4 8.2 Preferred characteristics of an information system The preferred characteristics of an information system include: • Direct input of data at source. • Systems able to deal with administrative processes.90 8. It will be vital to ensure that the hardware is appropriate to the organizational requirements in that PCs and terminals are provided where needed and are linked together in a network as required. and the implications for information systems. 8. • The choice of software. But the number of networked PC systems using either mini or microcomputers in increasing.5. • Systems that can be used by the 'occasional user'.5 Choice of hardware There may be no choice of hardware-some systems are still linked to a mainframe computer. • Prepare a recommendation on how to proceed for executive approval and buy-in. • The degree to which the system is integrated with the payroll. 8.3 Involving line managers The strategy for extending the system to line managers will clearly be entirely dependent on the organization's policies for devolving personnel decisions to them. its implementation will be much more likely to take place if the information required by line managers is made available.1 Developing an Information System Overall approach The following are the typical stages in the development of a computerized HR information system: (1) Establish the current and future needs of the business and how these impinge on HR.
8. performance appraisal. * Human resource planning An information system can be used to model the effects on groups of people within the organization of change over time in the numbers and structure of each group and movements into.5. training administration and job evaluation. there is a lot to be said for having an integrated system.4 Examples of Applications * Personal records These can include personal details. The software houses are constantly innovating and developing their products and between them provide something for everyone. on time and within the budget. The user has considerable freedom in defining the number and type of flows required whether into. Carry out a feasibility study to consider applications and their likely costs and benefits. • Flows out . Prepare a requirements specification which will set out in detail what the system is expected to do and how the company would like to use it. employment contracts. Although many organizations have separated the payroll and purely personnel applications. or out of each level of the system. pay details.a self-describing collection of integrated personnel records.2 Software There is a massive and almost bewildering choice of software packages for application programs to provide information and generate reports. job details.5. setting out the benefits and the costs.e. (7) Plan the implementation program to ensure that the objectives will be achieved within a given time scale and in line with the cost budget.5. through.91 The system should be founded on a database . transfers in. 8. (8) Involve users to ensure that everyone who will benefit from the system can contribute their ideas and thus feel that it is their system rather than one imposed upon them. contacts and addresses and employee transactional data. The base data is likely to be of much better quality if it is used in such day-to-day processes as recruitment. 8. Particular attention has to be paid to the database management system.: • Flows in -recruitment. through and out of each group. retirement. (9) Control the project against the implementation program to ensure that it delivers what is required. (10) Provide training to all users to ensure that they can operate and get the most out of the system. (6) Select the system in the form of the hardware and the software required. the program or set of programs that develops and uses the database and database application. resignation (uncontrolled losses). Prepare a business case for the system. early retirement (controlled losses) .3 (1) (2) (3) (4) (5) The development program The 10 steps required to develop and implement and information system are: Determine objectives. (11) Monitor performance to ensure that the system lives up to expectations.transfers out. i.
The provide a critical input to other areas of human resource decision making such as policies on recruitment. − Forecast future employee requirements. − Control employee budgets. The process of scheduling human resources to meet output in processing targets is becoming increasingly complex with the availability of more flexible ways of deploying people. * Employee profiling Profiling is a particular aspect of employee scheduling concerned with the matching of staff to workloads and ensuring that the right number of people are available to meet fluctuations in activity levels over time. Profiling techniques are used where there are measurable volumes of work that can be costed and forecast with reasonable accuracy. . − Test the effects of moving some activities to different times of the year and analyze their predicted impact on the employment profile. Human resources planning is an interactive process which is always using output from one part of the process to influence another part of the process. − Synchronize the recruitment of permanent and temporary employees with forecast workloads.92 * Employee turnover monitoring and control Computer models can monitor and help in the control of employee turnover. − Flex employee budgets on the basis of revised activity level forecasts. These can be compared with estimates of current and future requirements to identify areas where recruitment or training action is required. Periodical audits can be carried out by the information system of the skills and competences available in the organization. Profiling can be linked with employee budgeting control in the sense that the use of people is both constrained and influenced by the cash budget and performance and employee establishment targets. training and career planning. − Monitor movements in expenditure on pay and other employee benefits and carry out sensitivity tests on the impact of different pay assumptions. promotion. Profiling models can be used to: − Monitor and analyze employee utilization. * Skills inventories and audits Many organizations need to store detailed information about the skills. redeployment. competences and experience of the individuals they employ. * Employee scheduling An information system can be used to provide an integrated system for matching the numbers of employees to business needs.
− Letter writing acknowledgements. analysis of response by media and monitoring recruitment costs.93 * Competency modeling Competency modeling brings together organization planning and performance management data to establish the skills or competencies required to do particular jobs. − Matching CVs to person specifications for short-listing purposes. − Assist in job evaluation.7 Performance management An information system can help to operate performance management. grade.5. promotions and pay levels.5.5.8 Training administration (computer-managed learning ( A system can be used for training administration by: . Profiles can then be developed by the computer and matched to assessments of current job holders or job applicants. − Generate instructions to adjust pay as well as letters to individuals informing them of their increases.5 Recruitment A recruitment system can carry out the following tasks: − Storage of applicants' details. 8. − Calculate comp-ratios to show how average pay in a range differs from the target pay. analyzing and reporting on the result of performance reviews showing the distribution of people with different degrees of potential or performing at different levels. 8. offers and rejections. The database can be used in more advanced applications to assist in establishing selection profiles with the standards against which potential job holders can be assessed in order that the right people can be appointed to or promoted into jobs. 8. 8.5.6 Reward management The system can be used for pay modeling and to carry out a number of reward administration activities. − Administer pay reviews. analyzing proposals against the budgets and calculating the cost of performance-related pay awards in accordance with different assumptions about amounts and the distribution of awards within a budget. − Provide information to line managers which will guide them to their pay decisions. age or length of service. generating forms. producing review forms. − Link with internet recruiting process. − Forecast future payroll costs on the basis of assumptions about numbers. − Retrieval and amendment of those details. A system can also: − Analyze and report on average pay or pay distributions by job. − Calculate the effects of attrition. and highlighting individuals with particular skills or special promise. invitations to interview. − Management reports.
test procedures and progress reporting. Career management 8. Recording and monitoring training expenditure against budget. which enables trainers to select an appropriate module or mix of modules to meet a specified learning need. .5. early departure. − Get employees to explain the reason for late arrival. continuation or development training programmes. Producing reports summarizing current and projected training activities and calculating the output of training programs . first. Storing progress reports and monitoring achievements against training objectives. Analyzing the training recommendations contained in performance review reports to identify collective and individual training needs.5. − Enable employees to record the time spent on particular jobs. routings. Storing data on standard or individually tailored induction. Informing employees about the arrangements for courses. Advanced systems link information obtained from clocking-on or -out direct to a screen in team leaders' offices so that they can have instant information on how many people are at work and on the incidence of lateness. second. Identifying suitable training courses to meet training needs. responsibilities for giving training. − Can be linked to the payroll system for pay and bonus calculation purposes and to a flexible working hours system.9 A system can help in the implementation of career management policies and procedures which embrace both career planning and management development. Generating instructions and notes for guidance for all concerned with providing or undergoing on-the-job training programs. Handling correspondences about training courses.94 − − − − − − − − − − − Storing e-learning modules on the database. or any other absence. Making arrangements for off-the-job courses. including syllabi.10 Absence control Absence control can be carried out with the help of computerized time recording and attendance systems which: − Record clocking-on or. with the outputs of the performance management system.this can be linked to human resources planning models including those designed to determine the input of trainees required for training schemes.out time and the hours actually worked. − Provide team leaders with a statement showing the length and reasons for absence. with assessments of organizational requirements as generated by the human resource planning models and. 8. The system does this by analyzing the progression of individuals and comparing the results of that analysis.
This is done by: − Defining the evaluation rules.5.95 8. through linkages and rules built into the system design. regular audit of the system should be carried out to obtain answers to these questions: − Is the system being used efficiently and effectively? − Are there any barriers to the effective use of the system? − Does the technology enable managers or merely dictate to them? − Are there any aspects of the system which are causing dissatisfaction in the HR department. What can loosely be described as expert systems are also used in job evaluation applications where they make use of a database of job analyses and evaluations in order to make consistent judgments about evaluation scores. which. helpful and used for decision-making? − What is the functionality of the system? That is. the use of data in different applications? . − Applying the rules consistently and determining the factor score for the job. An expert system can produce a list of suitable candidates for promotion by using information from the database.13 Auditing the System As suggested by Robinson. 8. and how well does it do it? What additional functions might be useful? − How effective are the systems links. can help solve human resource management problems. − Programming the computer to ask appropriate questions concerning each factor in a job to enable it to apply the evaluation rules.11 Equal opportunity monitoring The system can store records of the ethnic composition of the workforce. age.5. what does the system do. This information can be analyzed to produce data on the distribution of ethnic minorities by occupation. with senior management or line managers? − Are there any problems with data inaccuracy? − Are reports accurate.12 Expert systems Knowledge-based software or expert systems are computer programs which contain knowledge about particular fields of human activity and experience. service and location. − Storing the information in the computer's memory so that it can be called to the screen or printed at any time. Expert systems are developed through a process of knowledge engineering which starts from a knowledge base containing facts and a body of expertise about the use of those facts. 8. − Grading and ranking jobs.5. job grade.