Introduction

for Human Resource Management

HSN
HRM_2023 1
 Module 1: Human Resource Management

Module 2: HR Management Strategy and Analysis

Module 3: Job Analysis and the Talent Management Process

Module 4: Recruitment, Interviewing and Selection

Module 5: Employee Training and Development

Outline Module 6: Performance Management

Module 7: Employee Engagement and Retention

Module 8: Total Rewards

Module 9: Ethics and Employee Relations

Module 10: Managing Global Human Resources

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Objective

Explain and Define What is Human Resource Management (HRM)

Explain Strategic Planning, Human Resource Planning, and Job Analysis

Explain how the functions of human resource management contribute to business success

Describe Performance Management and Training

Explain Role of Training and Development in Performance Management

Explain the Compensation

Learn about Labor Relations, Employee Relations, Safety and Health

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 Modul 1
Human Resource Management

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Human Resource Management

Its objective is the

maintenance of better
human relations in the
Human Resource
organization by the
Management has come to be
development, application
recognized as an inherent
and evaluation of policies,
part of management, which
procedures and programs
is concerned with the people
relating to human resources
side of an organization.
to optimize their contribution
towards the realization of
organizational objectives.

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Human Resource Management

HR Management is a
process of bringing
HR Management is people and
concerned with organizations
getting better results together so that the
with the goals of each are met
collaboration of
people.

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HR Management – Core Activities

JOB ANALYSIS HR PLANNING RECRUITMENT EMPLOYEE PERFORMANCE

& SELECTION DEVELOPMENT MANAGEMENT

COMPENSATION EMPLOYEE SAFETY &

& BENEFITS RELATIONS HEALTH

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HR Categories of Work

Strategic:

Work that supports one or

Tactical:
more courses of action Transactional
developed by the organization’s Solutions focused. Benefits
leaders. Examples: workgroups Examples
• Restructuring departments
Administrative, benefits
• Long term (2+ years)
• Linked to one or more business goals • Training programs individuals. Examples
• Requires multiple solutions or tactics • Recruitment initiatives • Updating HR records
• Benefits business units and perhaps the • Succession Planning • Filling a vacant position
entire enterprise. • Locating training program for employee

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Partnering with Human Resources

Since managers represent front-line supervision, they have the day-to-day

responsibilities to implement HR initiatives

The primary reason human resources and line managers should work
together is because both parties have a vested interest in ensuring the
organization achieves success

Through working together, line management becomes more proficient in

tactical human resources functions. This frees up time for human resources
professionals to devote more time to strategic HR management

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Four Roles of HR (Ulrich)
Future/Strategic Focus
Defining & Executing Creating a renewed
Strategy organization

P
R Strategic
Change Agent
Partner P
O
C E
E O
S P
S L
Administrative Employee E
E Expert Champion
S

Building an effective and Increasing employee

efficient infrastructure commitment & capability
Day-to-Day/Operational Focus
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Evolving Roles of HR

Domestic and Tactical Global and Strategic

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Current Trends in Human Resource

Globalization Generational Increasing

Increase of
of Business Differences in Diversity and
Contingent
and the the Cultural
Workers
Labor Market Workplace Issues

More High- Changing Evolving Role

Tech Jobs and Societal of Virtual
Skill Needs Norms Employees

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HR as a Profit Center
Link HR Practices to
Human Resources can Bottom Line
no longer afford to be
considered “an Measure HR Performance
overhead
department” and
must find ways of Get Close to Finance
creating value for
their organizations
Work with a Budget

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The Nine HR Competencies

Organizational
Global & Cultural
Critical Evaluation Ethical Practice Leadership &
Effectiveness
Navigation

HR Technical
Relationship
Expertise & Consultation Communication
Management
Practice

Business Acumen
• Most critical strategic
competency

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The Main Cycles in Human Resources (HR)
Management

Recruitment and Training and

HR Strategy Cycle
Selection Cycle Development Cycle

Performance Compensation and

Management Cycle Benefits Cycle

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 Modul 2
HR Management Strategy and
Analysis

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 Strategic human resource management is the
proactive management of people. It requires
proactive thinking, and planning ways for a
company to better meet the needs of its
Strategic employees, and for the employees to better meet
Human the needs of the company.

Resource
This can affect the way things are done at a
Management business site, improving everything from hiring
practices and employee training programs to
assessment techniques and discipline.

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Strategy and Workforce Planning

What are the organization’s strategic aims and goals?

What employee behaviors and skills do we need to

achieve our strategic aims?

What employee behaviors and skills do we need to

achieve our strategic aims?
HRM_2023 18
Strategy and Workforce Planning
Management formulates a strategic plan and measurable strategic goals or aims. These plans and
aims imply certain workforce requirements, in terms of the employee skills and behaviors required
to achieve the firm’s strategic goals.

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Strategic Workforce Planning

Supply
Analysis
• Where are we now?
• What do we have?
• What KSA’s are lacking?
• How do we meet supply needs?
Gap Analysis
• What KSA gaps do we have?
• What competencies exist now?
Demand
Analysis
• Where we need to be?
• What do we need?
• How many employees are needed?
• Are we growing or retrenching?
• Do we have KSA’s to meet needs?

Solutions
• What can we afford?
• How will we get what we need?
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 Levels of Strategy in the Organization

Business Unit
• Broadest strategy level Level Strategy • Resources to support other levels
• Where to compete • Includes people, skills, knowledge,
• What to develop process, etc.
• How to compete in a specific
market
• Competitive advantage over rivals
in chosen market

Corporate Functional
Level Strategy Level Strategy

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Strategic Alignment
- Identifies business
- Provides guidance

- Identifies competitive advantage

- Provides a plan

- Functional units’ strategies should align with business strategy

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 HR Scorecard
• A process for managing employee performance and
for aligning all employees with key objectives, by
assigning financial and nonfinancial goals,
Management Tools
monitoring and assessing performance, and quickly
taking corrective action.
Digital Dashboard
• Presents the manager with desktop graphs and
Strategic HR

charts, so he or she gets a picture of where the

company has been and where it s going, in terms of
each activity in the strategy map.

Strategy Map
• Graphical tool that summarizes the chain of
activities that contribute to a company’s success,
and so shows employees the big picture of how
their performance contributes to achieving the
company s overall strategic goals.
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HR Computerized Dashboards

A user interface that organizes and presents information in a way that is easy
to read and interpret

A dashboard arranges information in a visual fashion that allows the viewer to

view and compare data.

Also referred to as “HR Scorecards”

Information is presented using a variety of charts and graphics such as bar

charts, pie charts, line chart and area charts.

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 HR Dashboard HUMAN RESOURCES

N u m b e r of E m ploy e e s b y Year H e adcount

120 S a le s
R&D
100
M a rk e t in g
80 IT
H u m a n R e s o u rc e s
60
F in a n ce
40 Customer Support
A d m in i s tr a t io n
20
A cc o u n t in g
0
2 0 00 2 0 01 2 0 02 2 0 03 2 0 04 2 0 05 2 0 06 2 0 07 2 0 08 0 5 10 15

N u m b e r of Employees by Salary Payroll B r e ak d o w n

S a le s
> $1 0 0 ,0 0 0
R&D
$90,000-$100,000
M a rk e t in g
$80,000-$90,000
IT
$70,000-$80,000
H u m a n R e s o u rc e s Salary
$60,000-$70,000
F in a n ce Bonus
$50,000-$60,000
Customer Support O v e r t im e
$40,000-$50,000
A d m in i s tr a t io n
$30,000-$40,000
A cc o u n t in g
< $3 0 ,0 0 0

0 5 10 15 20 $0 $ 5 00 ,0 0 0 $ 1 ,0 00 ,0 0 0 $ 1 ,5 00 ,0 0 0

Salary Distribution
$160,000

$140,000

$120,000

$100,000
Employee Ryan Kennedy
$80,000 Department Customer Support
Hire Date 12/24/01
$60,000
Salary $81,000
$40,000 Bonus $4,860
Overtime $0
$20,000
HRM_2023 Sick Days 4 25
$0
Performance Score 2
Human Resource Metrics
Absence rate (Lost Cost per hire (External Costs) Health costs per employee Time to fill (Total days
workdays/Avg Employees x + (Internal Costs) / Total (Total Health costs/Total elapsed to fill jobs / Number
days of work available) Number of Hires) Employees) hired)

Vacancy costs (costs of

temporary workers +
Turnover costs (Costs of
independent contractors +
separation + vacancy +
other outsourcing + overtime
replacement + training)
- wages and benefits not paid
to vacant position)
Annual training costs per
Benefit costs vs. total payroll
employee (Total Training
(Benefit Costs/ Total Payroll)
Costs/Employees)

Annual training hours per

employee (Total
hours/Employees)

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HRM_2023 27
 Strategic HR Management tools

PEST Analysis
(political, HR Visions and
Situation Analysis SWOT
economic, social Missions
and technological)

Key Result Areas

Core
Critical Success and Key
HR Strategic Goals Competencies and
Factors in HR Performance
Core Values
Indicators

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 Modul 3
Job Analysis and the Talent
Management Process

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What is Talent?
Talent consists of those individuals who can make a
difference to organizational performance, either
through their immediate contribution or, in the
longer-term, by demonstrating the highest levels of
potential.

Individuals who have the capability to

make a significant difference to the current
and future performance of the company

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What is Talent Management?

“the implementation of integrated

strategies or systems designed to
increase workplace productivity by
developing improved processes for
attracting, developing, retaining and
utilizing people with the required skills “the systematic attraction, identification,
and aptitude to meet current and development, engagement/retention and
future business needs” deployment of those individuals who are of
particular value to an organization”

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Talent Management Strategic Focus Areas

Attracting

Selecting
Engaging
Developing

Retaining

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 HR’s Role in Talent Management

Balance talent Know what factors

Know the company’s
Develop an integrated, attraction & retention contribute to difficulties
business environment
proactive TM strategy with management in attracting and
and plans
accountability retaining employees

Market the company

Balance retention
Identify employee and brand to employees
factors between pay
turnover patterns and potential
and benefits
candidates

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Manager’s Role in Talent Management

Recognize the diversity of Understand that employees Realize that employees

talent within their have individual needs and have different motivational
department expectations levers

Demonstrate the ability to

Accept the fact that not all
utilize employee talent in
employees are looking for Organize departments into
ways that best benefits the
promotional opportunities A, B, and C players
employee, the department
or additional responsibility
and the organization

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Job Analysis
The systematic process of gathering and examining and
interpreting data regarding the specific tasks comprising a job.

Job analysis is the process of studying jobs to gather, analyze,

synthesize and report information about job responsibilities and
requirements and the conditions under which work is performed.

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Components of Job Analysis
Job
Job Content Job Context
Requirements

Duties & Fit in

Qualifications
responsibilities organization

Degree of
Tasks &
Knowledge supervision
procedures
needed

Work & culture

Skills
setting

Physical
Abilities demands
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Gathering Data for Job Analysis

Job Incumbent

Manager

Former Job Holders

Job Analyst

Subject Matter Experts

Professional Organizations
HRM_2023 37
Methods of Gathering Data for Job Analysis

Observation Interview

Questionnaires Work diary or log

Employee
Recordings
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Job Analysis Outputs
Job Analysis

Job Description Job Specification

• Job Title • Qualifications
• Job Location • Experience
• Job Summary • Training
• Essential Functions • Skills
• Reporting Responsibilities • Responsibilities
• Working Conditions • Emotional Characteristics
• Machines to be Used • Sensory Demands
• Hazards

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 Job Description and Job Specification
A job description is a written
description of a job which includes
information regarding the general
nature of the work to be performed,
specific responsibilities and duties,
essential functions, and the
employee characteristics required to
perform the job
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A job specification is a written
statement of educational
qualifications, specific qualities,
level of experience, physical,
emotional, and technical skills
required to perform a job.
40
Elements of a Job Description
Job Element
Job identification
Summary
Essential functions
Nonessential functions
KSAs
Supervisory responsibilities
Working conditions
Description
Job title, department or location, date description was completed, approvals,
who the person reports to.
Primary responsibilities, expected results, degree of autonomy (independent
work)
Tasks, duties and responsibilities
Desirable but not essential aspects of job
Minimum knowledge, skills and abilities required to perform the job
satisfactorily
Extent of authority, including a list of who
reports to this position
Environment in which the job is performed, especially hazardous or difficult
physical conditions
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Importance of Job Descriptions for HRM
HR Planning

Legal Recruitment
Compliance & Selection

Employee JOB Training

Relations
ANALYSIS

Pay and Performance

Rewards Management
Safety
&
Health
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Updating Job Descriptions
Why?

• Critical to successful talent management integration, ensuring accuracy of job tasks, skills, knowledge, and
specifications

When?

• Job descriptions should be reviewed and revised at least every two years, more frequently in some industries

What?

• Verification of changes or needs in current positions, recognizing that many positions will experience “job drift”
over time.

Who?

• Updates should be facilitated by HR in collaboration with line managers, however, others sources may also be
utilized such as incumbent employees, former job holders, etc.

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 Module 4
Recruitment, Interviewing and
Selection

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 A core process of human resource management that is
shaped by organizational strategy and ensures the
right number of people with the right skills are in the
Workforce Planning
right place at the right time.

Workforce planning is the systematic process for

identifying and addressing the gaps between the
workforce of today and the human capital needs of
tomorrow. Effective workforce planning enables the
organization to:
• Align workforce requirements to the organization’s strategic &
annual business plans
• Develop a comprehensive picture of where competency gaps exist
• Identify and implement gap reduction strategies
• Make decisions how best to structure the organization & deploy the
workforce
• Address internal & external barriers affecting strategic workforce
execution
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Stages of Workforce Planning

Analyze Available Agree on

• Operations plan, Data • Review labor supply Objectives
people strategy, data, both internal
organizational • Input resourcing and external, review • Agree on assessment
strategy information from HR workforce capability and evaluation
business partners to deliver the plan. criteria, regularly
and business review & evaluate
managers outcomes.
Determine Determine Actions
Business Strategy & Implement

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Six B’s of Workforce Planning (Ulrich)
Buy Build
• Hiring talent from outside the • Developing talent within the
organization organization
Bind Bounce
• Retention of critical employees • Removing your bottom
performers, eliminating
unproductive roles, or re-
skilling employees with “old”
skill sets
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Borrow
• Obtaining outside talent
through consulting,
outsourcing or contingent
labor to access skills and ideas
needed
Balance
• Developing an appropriate
combination and balance of all
other previous approaches
47
 Recruitment
and Selection

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Internal Recruitment Methods

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External Recruiting Methods

Community Educational Government Media

Awareness Recruiting Agencies Advertising

Online Social Personal

Open House Outplacement
Networks Networking

Trade &
3rd Party
Referrals Internet Professional
Recruiters
Organizations

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Selection Process

Selection of the The winning The right fit can

most qualified candidate should The final decision energize the
candidate is based be the one who should also include environment and
on the results of scores highest in which candidate lead to a more
interviews, the most offers the best engaged
evaluations and consequential personality fit. employee,
tests categories manager and team

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Applicant Testing
Employment Test
• Match between applicant & job requirements
• Accurate & objective predictors of skills

Interest Test

• Measure applicant interest with interest patterns of successful job incumbents

• Not always accurate predictors

Aptitude Test

• Measure special abilities required in specific jobs

• Can be used to predict trainability

Intelligence Test

• Measure applicant’s IQ
• Good predictors of managerial job success

Personality Test

• Measure specific aspects of personality (introversion/extroversion, emotional stability & motivation, honesty, etc.
• Not always accurate predictors of job performance
HRM_2023 52
Realistic Job Previews (RJP)
A realistic job preview that informs candidates about all aspects of the job and work environment.
May include the following:
• Tours of the workplace
• Interviews with incumbents
• Job simulations
• Video presentation

Effective RJPs

• Dispel unrealistic expectations of the job

• Promotes informative exchange between candidate and the organization
• Helps increase job satisfaction
• Helps prevent disappointments
• Reduce post-entry stress
• Reduces employee turnover

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Interviewing

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Types of Interviews
Structured
• Pre-determined questions,
• Same for all applicants
Situational
• Applicants respond to
questions with hypothetical
experiences
Non-Structured
• Flexible, no pre-planned
questions, or follow-up
questions.
Stress
• Measures applicant’s reaction
to stressful situation
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Behavioral
• Applicants respond to
questions that relate to specific
experiences
• Also referred to as
“competency-based”
Group
• Panel or multi-rater interview
55
 Module 5
Employee Training and
Development

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Orientation / Induction
Orientation, aka induction, is the first step in the formal process of training
employees.

Employees become familiar with the organization, their department, their

coworkers and their job

Orientation programs usually span one to two days and include three types
of information:
• Organizational information
• Policies, procedures and benefits
• Work context (including job procedures)

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Conducting Orientation
• Explain hours, benefits, vacations, etc.
• Complete necessary paperwork
• Explain organizational structure
General Conducted by
• Begin discussion of organization’s goals
Orientation HR
and values
• Introduce employee to line manager

• Introduce employee to coworkers

• Explain how the employee’s job fits into
the organizational structure
Department Conducted by • Reinforce how the department contributes
Orientation Line Manager to the goals/values of the organization
• Explain how the employee’s role
contributes to the success of the
department

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Onboarding: Evolved Orientation

• A stronger employee welcome

Onboarding • Affirmation that the employee made the right choice
Focuses on: •
•
Affirmation that the employee fits into the organization
Enhancing the long-term relationship building

Onboarding • Organizational culture and norms.

promotes • Specific departments and functions.
• Support systems (e.g., mentoring, work/life balance)
assimilation into:
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On-Boarding Process
First 6 Months
• Recognize employee
First 90 Days contributions
• Provide formal and
• Provide essential informal feedback
First Week training on performance
• Monitor • Create employee
• Ensure managerial performance &
First Day involvement development plan
provide feedback
• Set performance • Obtain feedback
• Focus on mission expectations
Prior to First Day and values from employees
• Assign meaningful through new hire
• Meet senior work
• Extend personal leadership surveys or other
welcome • Communicate processes
• Orient to office and resources or
• Communicate organizational
logistics networks required
norms for work
• Send information • Introduce mentor
via online or
company portal • Discuss immediate
job requirements
• Prepare office &
equipment for
employee

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Training and Development
Training activities focus on
knowledge, skills and abilities that
enable employees to meet or
exceed current job requirements
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Development activities focus on the
acquisition of the knowledge, skills,
and abilities required for employees
to perform future job requirements
based on promotional
opportunities, career advancement,
and changing strategic needs of the
organization.
61
ADDIE Model of Training
Assessment
A cyclical model used to create
employee learning that aligns
with strategic goals
Evaluation Design

Implementation Development

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Assessment Phase

Purpose of
Assessment

Find Identify
Form basis for
Needs Analysis Performance Programs and
evaluation
Gaps Target Audience

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Design Phase
The design phase, HR needs to decide on:

• Course content and structure

• Course goals and objectives
• Delivery methods and implementation

Design of training includes the following tasks:

• Composing goals (who is the training for, what is it about, why is it being conducted)
• Objectives (intended result of instruction)
• Defining the target audience (KSAs, talents, prior knowledge, motivation, perceptions and
resources)
• Deciding how to develop the training program (in-house, off-the-shelf, customized)
• Utilizing the SMART process

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Development Phase - Delivery Methods
• Presentations & lectures
• Case studies
Combination of:
• Classroom
Classroom •
•
Demonstrations
Group discussions
• E-learning training • Simulations
• Self-paced study
• Job aids
• Coaching
• OJT
Self-
Blended
directed • Workbooks
learning • Web-based materials
study • Job aids

• Web-based learning
• Computer-based
On-the-job learning
Demonstration and actual
E-learning • MOOCS
performance of job tasks
used to train employees
training • Virtual classrooms
• Synchronous
• Asynchronous
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Implementation Phase - Steps
• Present in a controlled • Align with methods used &
environment target audience
Pilot • Sample target audience Select
Program Trainer

• Location
• Make adjustments prior to • Equipment & environment
final delivery • Space requirements
Revise Logistics • Seating arrangements
Content

• Ensure program is • Promote & advertise

challenging • Give preview of topics
Schedule • Time aligns with maximum Announce & • Analyze culture and potential
attention/ learning ability Implement resistance
Program

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 Participant
reactions

Changes in
Evaluation Retention of new
organizational
Phase - information
performance
Effectiveness
Indicators

Changes in
Application of new
behavior on the
procedures
job

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 Modul 6
Performance Management

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Performance Management

Exceptional

Above
Expectations
Meets
Expectations

Below
Expectations

Needs
Improvement

HRM_2023 69
What is Performance Management?
Performance Management means
systematically managing all the
people in an organization, for
innovation, goal focus, productivity
and satisfaction
HRM_2023
Hence, Performance Management is
the approach to the management of
people using performance, planned
goals and objectives, measurement,
feedback and recognition to
motivate people to realize their
maximum potential
70
Why Performance Management?

Performance management enables organizations to increase

workforce productivity, improve employee performance and
reduce costs by providing an integrated approach to developing
and managing critical talent. This process results in:
• Improved workforce productivity increasing employee development and goal
achievement
• Improved employee performance with clearly defined goals and targeted learning
activities
• Reduced costs by improving organizational readiness and alignment

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 What is the performance management cycle

The performance management cycle is a model that allows management and employees to better
achieve organizational goals through a structured process of employee development.

The performance management cycle is a part of the performance management process or

strategy, it is shorter and utilizes a continuous four-step procedure of planning, monitoring,
reviewing and rewarding.

Benefits of utilizing this method include increased competitiveness, more structural flexibility, and
higher employee motivation

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Performance
Management
Cycle

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SMART Goals

Specific Measurable Achievable Relevant Time-bound

The goal is clearly The goal must While the goal The goal is in line There should be
outlined, with have a definite should stretch with both the a definite
detailed and measurable the employee, it employee’s job timeline as to
information such indicator to tell if should not be so and the overall when this goal
as what is to be it has been lofty as to not be goals of the should be
achieved, how achieved. realistically organization. completed.
well it must be achievable at all.
done, and why it
is important.

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Evaluation should include questions such as:
Was the original goal realistic?

Was the goal in line with the organization’s objectives?

Did the employee gain useful experience or skills?

How well did the employee complete their tasks?

Did the organization offer the proper support to achieve the goal?

In what ways could future goals be set differently to ensure success?

What aspects of this process could be streamlined or improved?

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Some rewards that might be offered are:

An increase in A one-time Increased

Special projects
compensation bonus vacation time

A positive Company-wide
A promotion
written review acknowledgment

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Management By Objectives (MBO)

A performance method where the manager and the employee

mutually identify common goals (objectives) and the skills
necessary to accomplish them during the performance period.

Objectives align with department goals and organizational

strategy

Most common and effective assessment methods of

performance management programs

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Employee Ownership of Objectives
Employees need to
participate in the design
of their yearly objectives.
This process ensures
ownership and buy-in.
Employees now have full
accountability for their
performance and
deliverables. The steps:
HRM_2023
Manager meets with employees to discuss
department goals for the year
Employees create their own objectives, tying them to
job responsibilities and department goals
Employees than meet and collaborate with their
manager to review objectives for adjustment,
agreement and final approval
Employees now have agreement on key objectives
that need to be accomplished for the year.
78
Employee Performance Appraisal
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Frequency of Performance Appraisal
Considered most effective
Bi-Annual

Annual Quarterly

Uncommon in
Most common Varies by most sectors
Company
& Industry

HRM_2023 80
 Assess completion of job objectives

Measure competencies

Provide backward & forward look of employee performance

Identify performance gaps and training needs

Why Appraise Validate reward systems
Performance? Determine development opportunities

Identify high performing employees (Succession Planning)

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 All performance reviews should have a face-to-face component between
employee and manager

Uninterrupted time should be reserved for discussion

Performance Employee should be given sufficient notice of meeting

Review Both parties should prepare for the meeting to document performance and
defend positions

Discussion Manager should use both praise and criticism

Discuss & document both past & future performance

Development activities should be planned

An appeal system for employees should be provided

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Common Errors in Assessing Performance
• Higher than deserved ratings based on general • Consistently rating all employees higher than
Halo feelings of admiration deserved
Leniency
Effect

• Lower than deserved ratings based on general • Consistently rating all employees lower than
Horn feelings of dislike Strictness deserved
Effect

• Rating all employees as “satisfactory” to avoid

disputes • Overemphasizing most recent behavior (good or
Central bad) in the rating
Recency
Tendency

• Higher or lower ratings based on personal prejudice • Rating employees higher because they reflect
Personal Similar similar characteristics to the rater
Bias to me

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 Module 7
Employee Engagement and
Retention

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Retention
Involves strategic
actions to keep high
performers motivated,
focused and engaged.

Preserves and
develops an
Significantly
organization’s
reduces turnover
human capital and
costs.
intellectual
knowledge.

HRM_2023 85
RETENTION
• The ability to keep talented
employees in the organization.

HRM_2023 86
Employee Replacement Costs

Costs to replace employees can easily reach 150% of the employee's annual
compensation figure.
• The cost will be significantly higher (200% to 250% of annual compensation) for managerial and
sales positions.

To put this into perspective, let's assume the average salary of employees in a
given company is $50,000 per year.
• Taking the cost of turnover at 150% of salary, the cost of turnover is then $75,000 per employee
who leaves the company.
• For a mid-sized company of 1,000 employees who has a 10% annual rate of turnover, the annual
cost of turnover is $7.5 million!

HRM_2023 87
Costs of Employee Turnover

Onboarding Lost Temporary Lost

Hiring Costs Error Costs Training costs
Costs productivity labor costs engagement
• Advertising • Training • a new person • a temporary • other • new • over 2-3
• Interviewing • Management may take 1-2 worker to fill employees employees years you
• Screening time years to in during who see high take longer likely invest
reach the recruitment turnover and are often 10-20% of an
• Hiring
productivity period disengage less adept at employee's
level of an and lose solving salary or
incumbent productivity problems more in
person training, that
is now gone

HRM_2023 88
Top 8 Reasons Why People Leave Jobs
No opportunity to learn new skills (on-the-job-training)

Lack of coaching and feedback from manager

Nature of work

Inability of top management to lead the company successfully in the future

Lack of recognition for a job well done

Disrespectful treatment by supervisors or managers

Lack of training and development opportunities

Non-competitive compensation and benefit plans

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HRM_2023 90
What Makes Employees Want to Leave?
Five Retention Factors Identified by the Hay Group

Confidence Employees like certainty. They need

assurance that their firm has solid
Engaged employees want to
in Leadership leadership and is headed in a
be empowered and positive direction
contribute positively to the
success of the company

Authority & Room for

Influence Growth

Employees need to know

there are opportunities
Employees need to work to learn, grow and
smarter, not harder, in a progress
collaborative environment
Environment A Fair
for Success Exchange
Employees need to feel
valued, especially when
needed to deliver more
with less
HRM_2023 91
Employee Engagement

• Engagement refers to the degree

to which employees are
committed to their jobs and the
organization, their willingness to
remain with the organization,
their hard work to make it
succeed, and their enthusiasm in
completing their own work and
helping their co-workers.

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Engaged and Disengaged
Workers

Engaged
• employees are those who work with passion, dedication, and
absorption

Non-engaged
• employees are those putting in their time and doing their work
with little energy or passion, but not interfering with others

Actively disengaged
• employees are those who are unhappy about their work, actively
complain about their job and the company, and undermine what
their engaged colleagues are trying to achieve.

HRM_2023 93
Communication Strategies for Engagement
• Select trusted • Build manager
peers to build trust communication
among employees competencies
through training &
Employee Two-Way development
Action Communication
Committees Training

Communication
Cross-
• Help managers to Competencies
Generational
• Utilize
bridge generation gap in Performance communication skills
Strategies
with employees Management in competency
profiles

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 Providing opportunities for people to
develop their abilities and careers to satisfy
Career Development
their aspirations as well as ensure the
organization has the flow of talent it needs.
and Retention

Career Development links Career Planning

with Career Management

The integration of organization needs with

the needs of the individual

HRM_2023 95
Why Career Development?

In times of rapid change and obsolescence in occupation fields, employees must

remain flexible to meet organizational needs and changing technologies

Employee individual needs, interests and goals change over time

The "one-job, one-career work-life" phenomenon of a generation ago has been

replaced by expanded learning models and advancement opportunities that are
offered through multiple job experiences
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Career Development

Career Career
Management Planning

Organization Focus Employee Focus

Career development occurs

when the needs of the
organization and the employee
are HRM_2023
integrated 97
Key Players in Career Development
• Primary responsibility
for own career
• Need to be proactive
• Utilize organization
support
• Link development
to mission & vision Professionals
• Communicate goals
• Reward managers
who participate
• Define metrics
• Coaching employees
• Appraise performance
• Provide feedback
• Act as adviser
Employees Managers • Referral agent for
organizational resources
HR Organizational
Leaders • Design career paths
• Enrichment and
enlargement programs
• Provide training &
development programs
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Module 8
Total Rewards

HRM_2023 99
Types of Compensation
Pay in the form of wages,
salary, bonus, and
commission

Direct Indirect Total

Compensat Compensat
ion ion Rewards

All financial rewards that

are not considered part of
direct compensation but
have value
HRM_2023 100
Strategic Elements of Total Rewards

Equitable Legal

Secure Motivating

Cost-
Strategic
benefit Adequate
effective Elements

HRM_2023 101
 Internal Equity (Hierarchy)

Pay Strategies (Competition

Equity Issues for Labor)

External Equity (Market)

HRM_2023 102
 The systematic approach of determining the
relative worth or value of each job in an
organization

The purpose of job evaluation is to

Job Evaluation

eliminate pay inequities and create a wage

structure that identifies appropriate pay
ranges for different jobs.

The relative worth of each job is established

by identifying factors that define “worth”
and by comparing the requirements of each
job with these factors.
HRM_2023 103
 • Simplest method of job
evaluation
Job Ranking • Places jobs in order, ranging
Non- from highest to lowest in value
to the organization
Quantitative
Evaluation
• Writes descriptions for each
Methods Job
class of jobs
• Jobs are put into grades that
Classification best match its class description
• Process is subjective

Non-quantitative methods evaluate the whole job and try to

place jobs in order of value to the organization
HRM_2023 104
 Point Factor

• Most common method of job evaluation

• Also called “Hay” Plan using 3 primary factors for evaluation to
determine job worth:
• Know-How

Quantitative • Problem Solving

• Accountability

Evaluation Factor Comparison

Methods • A set of 4 or 5 compensable factors are identified as

determinants of job worth:
• Skill
• Responsibility
• Effort
• Working Conditions
• Supervision of Others

HRM_2023 105
Incentive Pay

Pay for performance – incentives are tied specifically to

individual, group or organization performance goals or
standards

• Encourages employees to perform above expectations

• Motivates employees to perform at higher levels
• Rewards employees for exceeding targets or goals
• Provides a balance between base pay and incentive pay
• Enhances linkage of strategic alignment and performance

HRM_2023 106
Incentives
 Improve individual performance.
 Kept separate from base pay.

Noncash
Cash
award
awards Merit awards used
programs
Provide extra cash to recognize
compensation performance,
based on special
performance contributions,
length of service

Examples: lump- Examples: gifts,

sum awards, piece awards, trips, prizes
rates, commissions
HRM_2023 107
 Gainsharing
• Organization shares portion of
profits (gains) realized from the
Group efforts of work group or team
Incentive Team Bonuses
Programs
• Work group is rewarded for
meeting or exceeding
performance standards i.e. Safety
or Quality Team

HRM_2023 108
 Profit-sharing plans

• Allow employees to share in profits.

• Include cash and deferred profit sharing.
Organization-
Performance-sharing plans
Wide Incentive
Plans • Use predetermined criteria and
standards to measure results.
• Create a fund for incentive awards.
• Can be based on factors such as
customer satisfaction and quality.

HRM_2023 109
 Deciding What Benefits to Offer

Which benefits Which benefits

Which benefits
Which benefits enable an are cost- Which benefits
provide
are required by employer to effective to do employees
creative
law? compete for purchase and prefer?
choices?
employees? to administer?

HRM_2023 110
Government Mandated Benefits

• Retirement • Universal (single payer)

• Disability • Private or self-insured
• Death Retirement or
• Survivor benefits Disability
Health

Work-Related
Unemployment
Accidents/Injuries

• Workers’ compensation • Unemployment insurance

• Employers’ liability • Employment insurance
insurance • Job seekers allowance
• Redundancy funds

HRM_2023 111
 Module 9
Ethics and Employee Relations

HRM_2023 112
Definition of Ethics

Ethics includes study of

The basic concepts and
fundamental principles
of decent human
conduct.
universal values such as
the essential equality of
all men and women,
human or natural
rights, obedience to the
law of land, concern for
health and safety and,
increasingly, also for the
natural environment.

HRM_2023 113
What is Business Ethics?

The study of proper

business policies and
Business ethics are often
practices regarding
The system of laws and guided by law, while other
potentially controversial
guidelines by which times provide a basic
issues, such as corporate
business professionals and framework that businesses
governance, insider trading,
corporations operate in a may choose to follow in
bribery, discrimination,
fair, legal and moral fashion order to gain public
corporate social
acceptance.
responsibility and fiduciary
responsibilities.

HRM_2023 114
 Business Ethics Considerations
Globalization Political Contributions

Fiduciary Responsibilities Bribery

Corporate Social Responsibility Tax Avoidance

Intellectual Property Insider Trading

Unionization Corruption

Health and Safety Discrimination

Human Resource Management Product Safety

Executive Pay Consumer Protection

HRM_2023 115
Managing Employee
Behaviors

Discipline process

Processes for complaint review

Performance problems

Methods for managing employee conflicts

Handling employee terminations

HRM_2023 116
Progressive Discipline
Discipline is not punishment. Discipline refers to the
methodology used to enforce appropriate workplace
behavior.

A progressive discipline procedure consists of a series of

disciplinary steps that increase in severity from a verbal
warning to a verbal reprimand to a written reprimand to
suspension to discharge.

Such a system is called progressive because each successive

step is progressively severe. The most severe action is
termination or discharge; however, employees are not
terminated unless they fail to respond to earlier disciplinary
actions that have attempted to correct the problem

HRM_2023 117
Progressive Discipline Model

Verbal
Discharge
Warning

1st Written
Suspension
Warning

2nd
Written
Warning

HRM_2023 118
Performance Problems Corrective Steps
• Straightforward
• Gather facts presentation of facts
• Interview witnesses • Clarify issue and impact
• Review files & documents on organization
• Maintain confidentiality Conduct • Give employee chance to
Investigate explain their position
Performance
the Issue
Meeting

• Outline expectations • Use corrective action

•
Take
Specify changes needed Document plan or PIP
• Include employee’s position Corrective • Include provisions for
Results
• Document corrective plan Action follow-up & monitoring
• List consequences of non- • Advise employee of
compliance appeal process
• Establish a time frame
• Follow up on documentation

HRM_2023 119
Complaint Review & Investigation
Investigation of complaints should begin as soon as received

Steps of a thorough investigation are:

• Ensure confidentiality
• Provide interim protection (if necessary)
• Select the investigator (usually HR if skills exist)
• Create a plan for the investigation (witnesses, documentation, etc.)
• Develop interview questions (open-ended)
• Conduct interviews
• Make a decision
• Close the investigation
• Develop written summary of investigation results

HRM_2023 120
Employee Terminations
Involuntary Terminations

• For cause (legal cause) or legal reason for termination (misconduct,

theft, threat, fighting, repeated rule infractions)
• No fault (M&A, economic issues, close of business, relocation,
reorganization, financial difficulties, etc.)

Voluntary Terminations

• Resignation (employee leaves for their own reason)

• Job abandonment (employee fails to call in or report)

HRM_2023 121
Constructive Discharge
When working conditions become so unpleasant
that a reasonable person would find them
intolerable, the employee is compelled or
“forced” to resign.

Causing an employee to quit by creating

unpleasant working conditions may violate the
law in some countries when it is used to
discriminate based on disability, age, race,
religion, sex, and other protected classifications.

HRM_2023 122
Exit Interviews - Benefits
Identification of key areas creating turnover

Tracking of employee perception of the company across a wide

number of variables
Retention of key knowledge within the organization

Improving the quality hiring of new staff, drawing on the feedback

from departing employees
Creating a more positive view of the employer in the eyes of the
departing employee
The departing employee is made to feel valued for his/her
feedback and opinions

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 Module 10
Managing Global Human
Resources

HRM_2023 124
International HR Influencers
Culture

Labor
Political
Relations
Global HR
Differences

Legal Economic

HRM_2023 125
Global Integration
• Global integration strategy enables an
organization to pursue a global strategy
and meet the needs for coordination and
centralization
• HR’s goal is to apply policies, practices and
organizational culture so the strategy is
meaningful to all stakeholders
• This application requires integrating
company culture and local culture by
“Glocalization”

HRM_2023 126
Global Workforces (International Assignees)

Parent country Host country Third-country

Inpatriates Repatriation
nationals (PCNs) nationals (HCNs) national (TCNs)
• Used to • Employees • Employee’s • Citizen of one • Employees
describe who transfer nationality is country, who have
persons who from foreign the same as working in a returned home
move to one subsidiary to the location of second from
country and headquarter the subsidiary. country, and international
are employed country for employed by assignments.
by an assignment an
organization organization
based in headquartered
another in a third
country. country

HRM_2023 127
International Workforce Planning

Global staffing is the HR

function that identifies
staffing needs
throughout a global
enterprise and then
recruits, selects, and
deploys worldwide
talent resources to meet
those requirements

HRM_2023 128
Global Staffing Models

Ethnocentric

Geocentric Polycentric

Regiocentric

HRM_2023 129
Leveraging Resources

Offshoring
• Transferring service or manufacturing operations to a foreign country

Outsourcing
• A contract with a third-party vendor for the supply of products, services or parts.

Co-sourcing
• The outsourcing of only one part of a function (i.e. benefit data management, payroll)

Insourcing
• Contracting a function to another entity that performs the work on-site
• Transferring a previously outsourced function back in-house
• Hiring local nationals by a foreign-based company subsidiary

HRM_2023 130
Objectives of Global Compensation
Organizational Recruit & Retain
Consistency &
Performance Competent Employees
Equity

Objectives of
Simplify
Global Employee
Collective
Bargaining Compensation mobility
Management

Competitive &
Comparable Adaptability to
Rates Cost of staff/ Cultures
ability to pay
HRM_2023 131
Complexities of Global Compensation
Varying Exchange Rate
Requirements Varying Tax
Fluctuations
for Facilities Rates

Varying Cost of
Living Complexities of Varying
Compensation Inflation Rate
Management

Employee Varying Local

Expectations Conditions

Consistency & Country

Equity Perspectives
HRM_2023 132
International Assignee Support
• Intranet • Housing
• Website • Banking
• Virtual meetings • Driver’s license
• Teleconferences
Communication HR Support for • Tax requirements
• E-mail Daily Living • Visa & work permits
Abroad

Managing
Repatriation
Culture Shock
Supporting
Employees
• Maximize host country activities on Int’l • Begin 6 months prior to return
• Provide spousal/family support • Provide counseling, reverse
• Help manage change Assignment culture training & career coaching

HRM_2023 133
Thank you
hsn

HRM_2023 134