Combined PPTs

SOLUTIONS
1. As a small startup bakery manager, if one of my bakers

unexpectedly quits, I would first assess the current workload
and demand for our products. I would then determine the
number of bakers required to meet the demand and ensure we
have enough staff to cover any unexpected absences or
emergencies. To ensure we have enough bakers, I could
implement a succession planning strategy by identifying
potential replacements for key roles and providing them with
training and development opportunities. I could also consider
hiring temporary staff during peak periods or outsourcing some
baking tasks to a third-party supplier.
2. As the owner of a growing startup, I would first analyse our

business strategy and growth projections to plan for the
number of new hires required in the coming months or years. I
would then identify the skills and roles required to support
this growth and create a staffing plan that aligns with our
overall business objectives. This plan could include a mix of
full-time, part-time, and contract staff and internships and
apprenticeships to develop talent from within.
3. To avoid long wait times at popular restaurants or stores,

businesses should use demand forecasting techniques to
predict customer traffic and staff accordingly. This could
involve analysing historical data, seasonal trends, and external
factors such as weather and events in the area. By staffing
appropriately for peak periods, businesses can provide a better
customer experience while avoiding overstaffing during slower
times.
4. As a coach for a sports team, to ensure enough players

during the season, I would first identify the key positions
required for our team's success and create a player
development plan that focuses on building depth in these
areas. This could involve investing in youth development
programs, recruiting top talent from other teams, and
providing ongoing training and coaching to our existing
players. By building a strong bench, we can minimize the
impact of injuries or player departures on our team's
performance.
5. When starting your own business, you should first

determine your staffing needs based on your business model
and growth projections. This could involve hiring employees
with specific skills or experience in areas such as finance,
marketing, operations, and customer service. You should also
consider factors such as cost, availability, and cultural fit when
making hiring decisions. By creating a staffing plan that aligns
with your overall business strategy, you can build a team that
supports your growth objectives while minimizing costs and
risks.
6. To avoid long wait times for customer service, companies

should use demand forecasting techniques to predict call
volumes and staff accordingly. This could involve analysing
historical data, seasonal trends, and external factors such as
promotions or product launches that may increase call
volumes. By staffing appropriately for peak periods, companies
can provide a better customer experience while avoiding
overstaffing during slower times.
7. To ensure enough staff during peak periods like weekends or

holidays while avoiding overstaffing during slower times in
hospitality businesses like hotels or restaurants, you should
first analyze historical data to identify patterns in customer
traffic. You should then create a staffing plan that adjusts staff
levels based on these patterns, taking into account factors such
as shift lengths, break times, and overtime costs. By
implementing this plan consistently across all locations or
departments within your organization, you can optimize
staffing levels while minimizing costs and improving customer
satisfaction.
8. To ensure enough salespeople to meet sales targets and grow

your business when managing a team of salespeople, you
should first identify the key roles required for success in your
sales organization and create a talent management plan that
focuses on developing internal talent as well as recruiting
external talent when necessary. This could involve providing
ongoing training and coaching to your existing salespeople as
well as investing in programs such as mentoring or coaching to
develop high-potential salespeople into future leaders within
your organization. By building a strong sales team with depth
at all levels of the organization, you can minimize the impact
of unexpected departures on your sales performance while
maximizing your return on investment in talent development.
9. To avoid long wait times for experts in fields like medicine

or law, professionals should use demand forecasting
techniques to predict patient or client volumes and staff
accordingly. This could involve analyzing historical data,
seasonal trends, and external factors such as changes in
legislation or medical breakthroughs that may increase
demand for their services. By staffing appropriately for peak
periods, professionals can provide better service to their
patients or clients while avoiding overstaffing during slower
times.
10. To ensure enough people with the right skills and

experience to meet product development goals in fast-paced
industries like technology or fashion when managing a team of
engineers or designers, you should first identify the key roles
required for success in your product development process and
create a talent management plan that focuses on developing
internal talent as well as recruiting external talent when
necessary. This could involve providing ongoing training and
coaching to your existing engineers or designers and investing
in programs such as mentoring or coaching to develop high-
potential engineers or designers into future leaders within
your organisation. By building a strong engineering or design
team with depth at all levels of the organisation, you can
minimize the impact of unexpected departures on your product
development process while maximising your return on
investment in talent development.
HRM AN
INTRODUCTION
Two Perspectives of Human Resource Management?
 Two concurrent but varying perspectives of

employees
There are two different ways to view employees in an organization.

1.The first way is to see employees as a cost that should be minimized,
and they are considered expendable.
2.The second way is to view employees as valuable resources with
unique skills, knowledge, and abilities that can be put to use to achieve
the organization’s overall objectives.
From point number 2; we understand that HRM is a careful understanding
of synergising the abilities of a collection of people, understanding their
characteristics at work and leveraging the cumulative and individual
idiosyncratic value they bring to the organisation to achieve a common
organisational objective.
Where does HR Emanate -
 Inter-disciplinary function: multidisciplinary activity utilizing

knowledge and inputs drawn from psychology, sociology and
economics
 Two pioneers- Peter Drucker and Max Weber-check them out.
1.Emotion
2.Egos, Personality types
3.Conflict and Politics
4.Group Dynamics
5.Interpersonal Relationship
Both the Management
6.Motivation and Behavioral
subjective understanding—-> Two mother
disciplines of management---
and Sociology and Psychology
7.Driven by monetisation of the
objective human resource as the primary
objective, higher performance
aspects output than its input-subtle
means and performance
matter. appraisal.
What does HRM aim to do?
The fundamental objective of HRM is to

create value by engaging in activities that
produce the employee behaviours the
company needs to achieve its strategic goals.
1.Manpower planning
2.Employment function:
Recruitment, Selection & Placement
3.Training & development
What is 4.Employee engagement
its 5.Performance appraisal
scope? 6.Compensation
7.Social security, welfare &
industrial relations
8.HR audit & accounting
9.Strategic HR alignment
What is HRM
The policies and practices involved in
carrying out the “people” or human resource
aspects of a management position, including
recruiting, screening, training, rewarding, and
appraising.
What are the deliverables of a good HR
policy?
 Pervasive force of change and touch every employee

Action oriented.
 Individual oriented and customized yet organizationally
aligned
 Future oriented
 Development oriented
 Integrating mechanism
 Continuous and never-ending process.
Clarifying the definition further
1. Firstly, HRM is strategic and aligned with the organisation’s overall
business strategy. HRM leaders work closely with senior management to
understand the organisation’s goals and objectives and then develop HR
policies and practices that support those goals. This strategic approach
ensures that HR activities are aligned with the organisation’s overall
direction and contribute to its success.
2. Secondly, HRM is integrated, meaning it involves a holistic approach to

managing people across the organisation. This includes all aspects of
HR, from recruitment and selection to training and development,
performance management, compensation and benefits, and employee
relations. By integrating these functions, HRM ensures that HR activities
are coordinated and consistent across the organisation, which improves
efficiency and effectiveness.
3. HR activities are designed to give the organisation a competitive edge in

the marketplace. This can be achieved by attracting and retaining top
talent, developing a high-performance culture, fostering innovation and
creativity, and ensuring that HR practices align with the organisation’s
values and mission.
Scope of HRM in any
organisation
To procure the right type of personnel
To provide right type of training
Effective utilization of human resources
To ensure development of human resources
To identify & satisfy the need of individuals (monetary & non-monetary

rewards)
To ensure respect for human beings and make them feel valued
To reconcile individual & organisational objectives
Ascertaining the requirements for attaining these organisational

objectives.
To help employees maintain high morale

What can effective management
of people do?
https://www.youtube.com/watch?v
=0SipkpDTNj0
Two at the macro level the

work context and culture-
Google
https://www.youtube.co
m/watch?v=n_Cn8eFo7u
8
The team cartoons
◎ https://www.youtube.co
m/watch?v=O9_EHU5B
KnQ
◎ And
◎ https://www.youtube.co
m/watch?v=fUXdrl9ch_
Q
Once again Recapitulating again what do we
mean by Human Resource Management?
The discipline of Human Resource Management is
concerned with conceptualising, designing and
implementing policies and practices that ensure the
optimal and best deployment of human resources for
fulfilling organisational and individual goals. Recall class.
Sound
Employee employment
Continuous commitment & relations the
Attracting &
Ensure person- enhancement loyalty basis of any HR The ready
retaining best
job fit of skills through not passive acceptance of
people welfare
through L&D aggression change
activities and quiet
quitting
Functions of HRM:
MANAGERIAL OPERATIVE ADVISORY
Planning Employment Advice to top management
Organizing Training & development Advice to departmental heads
Directing Remuneration
Controlling Working conditions
Motivation
Personnel records
Industrial relations
Separation
What does an effective HR manager’s tasks
entail ?
1. Develop and implement HR policy
2. Advise line managers on the interpretation of policy and the

legal framework
3. Develop effective job structures
4. Promote and nurture employee capability
5. Envisage the future (planning)
6. Enhance employee motivation
7. Regularly Demonstrate HR contribution to business

effectiveness
What does it take to be a good HR
manager-Do you have it in you?
 A student of Human Behavior with ideally some

background in the Sociology and Psychology of work
 Domain Knowledge
 Emotional Intelligence
 Awareness of Personal Development and Motivational
techniques-eat the frog, Swiss cheese method,
Eisenhower time management matrix.
 Intelligence, Communication Skills
 Objectivity and Fairness
 Emotional Intelligence
 Leadership and Empathy
What then is the strategic zing to
HRM
Strategic HRM is a process of

aligning HR strategies with business
strategies to accomplish employees’
competencies and commitment
Steps in Strategic Management Process:
 Determination of Vision and Mission

 Analyzing the Environment
 Strategy Formulation
 Strategy Implementation
 Performance Evaluation
 Feedback of the above measures.
Strategic growth through optimising cost
 Cost to the company

 Interdependencies among HR Strategies, Business
Strategies and Organizational Changes
 Continuous process of balancing the demand and supply of
labour and its cost.
Strategic growth through value
creation
Creation of competitive advantage

through human resources by
creating a suitable HR system that
delivers Value in Business.
Does one size fit all?
• Universalist BEST Practice templates-If it can

work in Japan why not India?
• Institutionalist Perspective – Governance

mechanisms, Regimes of accumulation, legal
framework, education, political social factors
that kick in
Three Broad Theoretical Frameworks that emphasize certain
attributes that impact HR (Continued)
• The ‘Culturalist perspective'-Hofstede

The Concept of Fit within and outside and
Organisation
 Matching HR capabilities and resources with external opportunities

 On developing bundles of HR practices in such a way that they
complement each other.
There are two types of fit:
Vertical Fit Horizontal fit

The Concept of Fit within and outside and
Organisation (Continued)
 Therefore, one and two lead us to Vertical Fit-extant of alignment
between HR Strategies and Business Strategy.
 Please recall that it is not sufficient to have vertical fit but also
horizontal fit within an organization.
 Horizontal fit-extant of intrinsic alignment among components of
HR strategy.
Generally HR intervenes at the various levels direct
the organisation decision making process
 Topmost Strategy Making It focusses on value creating for an organization AS A

WHO;E
 Growth Strategy focus On the Development and accomplishment of Growth

Objectives by Execution OF SPECIFIC PROCESES
 Portfolio Strategy-focusses on the Determination of the Portfolio of Business

Units Of the Organisation, which Business Requires What HUMAN RESOURCE
Strategy
 Parenting strategy efficiently and Continually Evaluate and Assess the

Effectiveness of Resources and Development Of Organizational Capabilities
Across The Business Units. Based On Requirement How to Allocate Manpower
within and Across Functional Domains.
Strategies in congruence with other domains
marketing finance etc to deliver Business Level
Strategy-interacting with external environment
 Creating Sustaining-competitive advantage through
price or cost leadership and product differentiation.
 Rolls Royce versus Mass production.

How does HR aim to become strategic?
• Creating an environment that facilitates the continuous exchange of information

between superiors and subordinates-High Involvement Management—High
Involvement
• Creating Voluntary commitment from employees by adopting mutually beneficial HR

practices-High Commitment
• Improving Performance of individuals and the organisations constantly and

motivating and educating them for peak performance by continuously educating the
employees and improving their skills.
• Creates alignment with strategic goals and with functional objectives of individuals
and functional departments.
What does Strategic HR deliver?
• Cost effectiveness
• Working towards-Changing needs and expectations of customers
effectively by working on internal processes, people and
structures. Recall examples given in class
• Clear cut focus goal direction both immediate and long term
• Focus on the process and doing the right thing rather than being
driven by results
• Planning and execution of organisational changes in a timely and
effective manner.
FUNCTIONAL LEVEL STRATEGY
To impact man management alignment within the

organizational function.
• Specific strategies made for the functional activities

of the organisation
• It may encompass the sub-domains of production,
marketing, purchase, finance HR research and other
similar activities of the firm
What are the practical steps undertaken
to make HRM Strategic?
Source Pravin Durai HRM Text-Book
TYPICAL BOTTLENECKS ENCOUNTERED IN HRM
 Absence of long-term orientation

 Lack of strategic reasoning
 Lack of adequate support from top management
 Resistance from labour unions
 Fear of failure
 Rigidity of HR practices
 Fear of attrition
 Absence or inadequate or opaque measurement
techniques
External Factors that Shape the
HRM Environment
The External Environmental factors are:
 Social Environment contextual factors
 Demographics
 Educational status
 Technological Environment factors
 Political Environment factors,
 Nature of political organisation and system
 Political stability
 Prevailing political ideologies
Recapitulation Key causal factors that
direct a company’s HR strategy
The Vision and Mission of the Organisation
Business Strategy
Organisational Culture
Organisational Structure
HR System policies subjective aspects and execution in
relation to the above four variables.

Any questions?
Human
Resource
Planning
2023
RAMAN
What is HRP or Workforce
2 planning?
1.The process of
deciding what
positions the firm will
have to fill, and how
to fill them.
Friday, 29 March
2024
HRM and HRP function effectively only when:
3
 HR practices are effective only when they are closely aligned with the
external and internal environment of the Organization. Business
performance, improves when HR practices mutually reinforce the choice
of competitive strategy as we saw in the case discussion.
 Vertical fit happens when there is a vertical integration between the
competitive strategy, the objectives of the firm, the HR practices and
individual objectives (and it helps to explain lack of diffusion because
the appropriate practices will depend on the context. Horizontal fit refers
to the internal consistency of the organization's HR policies or practices
to cumulatively contribute to functional and strategic value.
 The stage in the life cycle and ‘outer context’ of the competitive strategy
or the ‘inner context’ of existing structures and strategy are both
important when we understand fit. Not only is the ‘stage of growth/life
cycle’ which is important but also the size of the organization. A mature,
small Organization would require a very different set of HR practices
from those required by a mature multinational corporation.
 Only when we understand this idea of fit, we can design an effective
Friday, 29 March
HRP process.
2024
The Miles and Snow framework. 4
1. ‘Defenders’ will have narrow,

relatively stable products and will
emphasise internal, process-oriented
training and internal pay equity and
hence may recruit infrequently
2. ‘Prospectors’ have changing product
lines and rely more on innovation
leading to the use of external
recruitment, results-oriented
compensation and external pay
equity and may have a higher
turnover.
3. ‘Analysers’ have changing and stable
product lines leading them to use
internal and external recruitment and
pay equity measures and process-
oriented performance appraisal
having a more dynamic but periodic
HR life-cycle.
Friday, 29 March
2024
WHY Human Resource Planning[HRP]? 5
1. Assessing the future Recruitment

Requirements
2. Optimum focussed Utilisation of
Available Human Resources
3. Developing Training and
Retraining Programs
4. Formulating Compensation Policies
5. Determining Management
Development Programs to train
workforce for coping with and
leveraging future technological
advantages.
6. Gaining Competitive Advantage
7. Shaping Future Plans and
Strategies
Friday, 29 March
2024
The importance of HRP?
6
 1. Clear links between business and HR plans: HRM must ‘fit’ with broader strategic plans,
and the HR function delivering precisely what the business requires. The relationship
between corporate and workforce plans can be seen interactively, with a recognition that
longer-term business goals can be disrupted through shortages of labour.
 2. Better control over staffing costs and employee numbers: Employers need to know about
anticipated staffing needs, irrespective of whether these are expected to grow or decline.
This helps to match supply and demand so management can decide whether to from the
external labour market, relocate staff, retrain them or prepare for cutbacks or downsize.
For example, if future demand is uncertain or known to be highly variable, greater use
might be made of subcontracting or temporary contracts to shift the risk to agencies and
provide pink slips.
 3. Better informed judgements about the skills and attitude mix in the organisation: while it
is important to employ the right number of staff, it is also critical to achieve the right skills
mix. Choices about the skill mix can be linked to decisions about the future shape of the
business, and adjustments planned in advance.
 For example, if an organisation wants to become more customer-oriented, decisions are
required about whether existing staff can be retrained or new recruits are needed, or indeed
if work could be subcontracted instead.
Friday, 29 March
2024
7
How and When HRP?
Understanding the organisation
and the environment
Analysing the current and
potential workforce
Determine the future workforce
needs
Identify workforce gaps against Friday, 29 March
future needs
2024
The Determinant Prerequisites of any
8
HRP?
 Strategy of the organization,
 Culture of the organization,
 Competitive and financial

environment,
 Current organizational
circumstances
 Quantity and skills levels of
human resources required Friday, 29 March
2024
Friday, 29 March 2024 9
Where are we now?
The recruitment and selection process is a series of hurdles aimed at selecting the bes
candidate for the job.
Strategic Priority - Strategy -
Business-HR-Strategy Linkage - HR
Key Terms Strategy - Value Chain - Key
needed to Function - Bottleneck Function - Age
10 understand Structure Analysis - Workforce
HRP Demand - Strategic Workforce
Planning - Operational Workforce
organically Planning - Planning with leading
Indicators - Task Analysis
TYPICAL HRP PROCESS FLOW--
11
Steps in a HR planning process are:

.considering organisational objectives and
strategies,
.assessment of external environment,
.preparation of in-house skill and competency
inventory wherein skills + Knowledge +
Abilities = Competencies,
.HR forecasting—Need assessment,
.HR forecasting—estimation of availability, and
Developing HR plans and programmes. Friday, 29 March
2024
Defining HUMAN RESOURCE
PLANNING
12
Human resource planning is a process of

identifying and then matching the human
resource requirements and availability
both internally and externally in order to
determine the future HR activities of the
organization on the basis of the overall
organizational objectives present and
future. Friday, 29 March
2024
The demand side analysis of HRP-need
13
assessment
 The external environment -Much strategy is based on a response to the environment – for example,
what a firm’s customers now want or what competitors are now offering – or in anticipation of
what customers will want or what they can be persuaded to want. Example in the mobile phone
industry.
What are the social trends; demographics; political legislative and regulatory changes; industrial
and technological changes; and current/new competitors. A careful assessment of the impact these
will have on the firm’s ability to recruit, develop and keep the required employees with appropriate
skills and behaviours.
What is the organizational sales and production forecast, new ventures and strategic plan? Planners
need to identify the challenges that the changes pose and work out and align these with the overall
strategic direction of the organisation.
 These insights will give us the demand perspective of HRP for a manager which we realised from
our case study was critical.
Friday, 29 March
2024
14 Who do we have with us? stocktaking
Staffing table –number of

employees in each job. It classifies
knowledge, skills, abilities and
Internal labour supply –profile of experience and career aspirations
employees in terms of age, sex, of each of the current employees.
education and roles and The record should be update once
designations. How? every 2 years and should include
changes such as new skills and
additional qualifications and
changed job roles.
Friday, 29 March
2024
Preparation of In-House Skills and Competency Inventory
15
 A compilation of skills, and qualifications of the entire workforce is described as a skill

inventory— What they mean
Skill and Competency Inventory can be prepared through
(i) Skills Audit (assessing the current skill levels of a firm and of individual
skills). It involves assessing the performance of the employees from the task perspective
as an outcome approach-skills brought into the table.
(ii)Competency Audit-[different from the common sense understanding of the
word competency or ability ] combining this traditional static aspects of recording the
ability employees’ Knowledge Skills and Abilities and Attitudes.
Process based qualitative organic approach based on continuous evaluation of the
employees help us understand what is missing and required.
(iii) Core Competency Analysis (assessing the extra-ordinary abilities of the
firm). These abilities may be its advanced technology, well-reputed management,
problem-solving.
Combining and collating individual skills and abilities based on this careful study and
matching the gaps with requirement of the organisation and seeing whether there needs
to be recruitment or layoff of unproductive employee or those who are no longer aligned
with future skill sets. Friday, 29 March
2024
16 HRP CONSIDERATIONS
 Plans may need to be made concerning the timing and approach to recruitment or
downsizing. For example, it may have been decided that in order to recruit sufficient
staff, a public relations campaign is needed to promote the employer brand.
 Promotion, succession, transfer and redeployment and redundancy plans may be needed
together with plans for the retention of those aged over 50 and flexible retirement plans.
 Talent plans There is an increasing need to focus on plans to attract, develop and retain a
talent pool to draw on as required. For some organisations this will focus on leadership
talent, for others it will focus on critical jobs and skills on which the organisation is
particularly dependent.
 CONSIDERATIONS TAKEN FOR GRANTED BUT NEED A GRANULAR FOCUS INDIVIDUALLY

AND CUMULATIVELY
Friday, 29 March
2024
17
TWO STEPS before any HRP
CONDUCT A SYSTEMATIC JOB

ANALYSIS
BE CLEAR ABOUT THE JOB

SPECIFICATION AND PROVIDE A
PRECISE JOB DESCRIPTION
Friday, 29 March
2024
Is your replacement chart ready?
18
A replacement chart used to estimate vacancies in higher level
jobs and identify how potential HR supply can fill these
vacancies
via internal movements from lower levels jobs.
Replacement charts provide identification of potential
replacements for vacancies within an organization.
A comprehensive replacement chart will include information
regarding possible replacements for vertical or
horizontal movement.
Generally, a replacement chart includes information about
employees’ performance, readiness to fill the position, and
education and an assessment of the ability to take on the role.
Friday, 29 March
2024
The supply perspective of HRP
19
The existing skill sets and competencies

The availability of skill-sets and competencies to fulfil current
and future task requirements.
The existing availability of talent inhouse
The price of human resources in the labour market.
Cost benefit analysis of reallocation, retraining, job-
enlargement, job enrichment versus recruitment from outside.
Friday, 29 March
2024
INTERNAL ORGANISATIONAL STRUCTURE
20
 Organisation and structure plans ==Organisation and structure plans may concern departmental
existence, span and structure and the relationships between departments. They may also be
concerned with the layers of hierarchy within departments and the level at which tasks are done,
and the organisational groups within which they are done.
 Employee utilisation plans Any changes in utilisation that affect HR demand will need to be
planned. Some changes will result in a sudden difference in the tasks that employees do and the
numbers needed, others will result in their gradual movement over time.
 INTERNAL TASK VARIABILITY Other plans may involve the distribution of hours worked, such
as the use of annual hours contracts, or using functional flexibility where employeesFriday,
develop
29 March
and
use a wider range of skills. The people potentially affected will need to be consulted about2024 the
changes and be prepared and trained for what will happen.
WHY DO YOU NEED NEW POSITIONS?
21
New tasks?---- For whom? --

What competencies needed?
Relative importance of the team
/individual behaviour?
New or redundant tasks?
How will managers need to
manage these new tasks with
existing tasks and roles?
Friday, 29 March
2024
Why should competencies matter
22
1.Capabilities are not a matter of

individual competence or management
systems but are organizationally based.
2.Add value to customers: Defined by
those outside the firm as important.
3.Offer uniqueness: They cannot easily be
copied by competitors.
4.Engage employee commitment:
Capabilities create meaning for
employees.
5.Maintain continuity: Capabilities remain
relatively stable over time. Friday, 29 March
2024
HRP Organisational CONSIDERATIONS
23
 Introducing new materials or equipment, particularly new technology Introducing

changes in work organisation, such as: — quality circles — autonomous work groups —
job rotation — outsourcing — job enlargement — high-performance teams — job
enrichment — participation — empowerment
 Organisation development Introducing changes in organisation structure, such as: —
centralisation/decentralisation — relocation of parts of the organisation — new
departmental boundaries — flexible project, matrix and network structures Introducing
productivity schemes, bonus schemes or other incentive schemes
 Encouraging greater staff flexibility, multiskilling and work interchangeability Altering

times and periods of work Training and appraisal of staff Developing managers and use
of performance management and the type used.
Friday, 29 March
2024
HRP Organisational CONSIDERATIONS
24
1. T&D Requirement of skills and training for specific new technology skills loses most of its impact if it is
done six months before the equipment arrives. If the organisation wishes to increase recruitment by
promoting the excellent development that it provides for employees, then clear programmes of what
will be offered need to be finalised and resourced so that these can then be used to entice candidates
into the organisation. Decisions on whether to buy in talent and skills or develop them internally will
affect the emphasis on and approach to development.
2. Performance management and engagement plans These plans may include the development or renewal
of a performance management system, and ensuring that employees are assessed on objectives or
criteria that are key to organisational success, and which may then be linked to reward. The plans may
also include setting performance and quality standards; culture change programmes aimed at
encouraging specified behaviour and performance; or empowerment or career support to improve
engagement and motivation.
Friday, 29 March
2024
25 Assessment of external
environment Source Pravin Durai
HRM
Friday, 29 March
2024
Setting Organizational objectives
& strategies
26
Scanning the environment
Preparing in-house skill and

competency inventory
HR forecasting-- HR forecasting -- estimation of

need assessment availability
Developing HR plans and Programmes

Recruitment/reduction
Friday, 29 March
2024
WHAT IS FORECASTING?
27
Forecasts involve
estimating the future
requirements of the
organisation in terms of
the nature and the number
of people .
Friday, 29 March
2024
Revisiting the techniques discussed in the
28
recruitment and selection module
1-Ratio Analysis-Determine the ratio between Performance and required
numbers of employees based on programmatic assumptions (e.g.,
professors/students, nurses/patients).
2.Trend Analysis Matching present requirements with past employment
patterns by analysing qualitative and quantitative data objectively that predict
labour demand for the future by analysing objective statistics from the previous
year that affected employee numbers, such as the company's performance or
developments in the industry sector, across a given period
3.Task Analysis Tasks are identified and quantified in terms of appearance
and workload
4.Conclusion by Analogy Determine workforce requirements according to
those of similar organizational units or companies
Read me- https://www.iedunote.com/forecasting-human-resources
And  http://www.pearsoncanada.ca/media/highered-showcase/multi-
product-showcase/showcase-websites-4q-2012/0132604868_05_REV1.pdf
And- http://www.hrknowledgecorner.com/hr-processes/manpower- Friday, 29 March
2024
planning/
HR Forecasting methods— Ratio Analysis
29
 Ratio analysis is the analysis of the relationship

between any two numerical variables of a casual
factor —production volume-and number of
employees required. 25 students 1 teacher-100 students=4
teachers-4:1
 It presumes a certain relationship between two
given variables and, using that relationship,
predicts the future HR requirements assuming
that the ratio between the causal factor and the
staffing need is constant.
Friday, 29 March
2024
HR Forecasting methods—Delphi Technique
30
 The Delphi technique is basically a group-based

systematic forecasting method with an objective
of arriving at a consensus.
 This technique does not require any face-to-face
participation by the experts
 This method aims at maximising the benefits and
minimising the dysfunctional aspects of group
decision-making as it eliminates group dynamics
and individual dominance from the process
Friday, 29 March
2024
The underlying steps in the Delphi method
31
Step 1: Choose a Facilitator

 The first step is to choose your facilitator. You may wish to take on this role yourself or
find a neutral person within your organisation. It is useful to have someone that is familiar
with research and data collection.
 Step 2: Identify Your Experts
 The Delphi technique relies on a panel of experts. This panel may be your project team,
including the customer, or other experts from within your organisation or industry. An
expert is, "any individual with relevant knowledge and experience of a particular topic." ¹
 Step 3: Define the Problem
 What is the problem or issue you are seeking to understand? The experts need to know
what problem they are commenting on, so ensure you provide a precise and
comprehensive definition.
 Step 4: Round One Questions
 Ask general questions to gain a broad understanding of the experts view on future events.
The questions may go out in the form of a questionnaire or survey. Collate and summarise
Friday, 29 March
2024
the responses, removing any irrelevant material and looking for common viewpoints.
The underlying steps in the Delphi method
32
 Step 5: Round Two Questions

 Based on the answers to the first questions, the next questions should delve deeper into
the topic to clarify specific issues. These questions may also go out in the form of a
questionnaire or survey. Again, collate and summarise the results, removing any irrelevant
material and look for the common ground. Remember, we are seeking to build consensus.
 Step 6: Round Three Questions
 The final questionnaire aims to focus on supporting decision making. Hone, in on the areas
of agreement. What is it the experts are all agreed upon?You may wish to have more than
three rounds of questioning to reach a closer consensus.
 Step 7: Act on Your Findings
 After this round of questions, your experts will have, we hope, reached a consensus and
you will have a view of future events. Analyse the findings and put plans in place to deal
with future risks and opportunities to your project.
Friday, 29 March
2024
HR Forecasting methods—Nominal Group Technique
33
 It is an interactive and structured mode of

decision-making
 Each expert in a group independently develops
HR requirements and presents it before other
experts in the group
 Each member’s proposal is relatively graded and
the top-ranked proposal is selected as the final
HR forecast
Friday, 29 March
2024
NOMINAL DECISION MAKING METHOD OF HR
34
FORECASTING
 INTRODUCTION WELCOME AND EXPLANATION AND POSES THE QUESTION AND ITS
RELATED SUB-THEMES REGARDING ONE ASPECT OF HRP-stage 1
 MEMBERS SILENTLY FILL IDEAS IN A SHEET OF PAPER-stage 2
 FACILITATOR RECORDS ALL IDEAS ON A BOARD AND MEMBERS ARE ENCOURAGED
TO ADD ADDITIONAL IDEAS EMERGING FROM OTHERS ATTEMPT IS TO CAPTURE
ALL IDEAS 15=30 MINUTES— stage 3
 GROUP DISCUSSION MEMBERS ARE ENCOURAGED TO CLARIFY DOUBTS ON IDEAS
COLLEAGUES HAVE PRODUCED AND EVERY PERSON CONTRIBUTES AND RATHER
THAN GETTING BOGGED DOWN ON A SINGLE IDEA FURTHER NEW IDEAS MAY
EMERGE OR ITEMS MAY BE CLUBBED INTO CATEGORIES AND LOGICALLY ORDERED
INTERNALLY. AT THIS STAGE A NEUTRAL TONE MUST ALWAYS BE MAINTAINED BY
THE FACILITATOR AND NO DEPRECATING OR JUDGMENTAL COMMENTS ARE
ALLOWED EITHER BY THE FACILITATOR OR DISCUSSANTS.
Friday, 29 March
2024
NOMINAL DECISION MAKING METHOD OF HR
35
FORECASTING CONTINUED
Stage 4-
IDEAS ARE PRIORITISED AND VOTED UPON Immediate
results in response to the question is available to participants
so the meeting concludes having reached a specific outcome.—
stage 5
The number of nominal group meetings to be held will depend
on the nature of the question and accessibility to the key
stakeholders best suited to help address the problem.-stage 6
Unstructured ideas are catalogued and categorised and taken
up topic by topic for discussion. One main question at a time
can be taken-stage 7 Friday, 29 March
2024
HR Forecasting Technique— Managerial
36
Judgement
 The forecasting in Managerial Judgement is
based on the managers’ subjective views on
the possible human resource requirements in
the future
 Forecasts are made about the HR
requirements usually by the senior managers
of the organization based on their experience.
Friday, 29 March
2024
Types of Managerial Judgement impacting HR
37 forecasting
 (i) Bottom-up approach-

 In this method, The process of HR forecasting begins with the lowest level of the managerial
hierarchy. The managers in charge of each division or department forecast the HR requirements because
it is assumed that line managers know the work process and the present and projected workforce
requirements.
 This forecasting process is then moved up gradually to the higher levels of the management
(ii) Top-down approach-[COO AND TOP LEVEL MANAGEMENT TEAM-GRIZZLED VETERANS WHO HAVE A GOOD
UNDERSTANDING OF MANAGEMENT AND PEOPLE]
(iii) In this method, experts working at the highest levels of the management forecast the HR needs of the
organization on the basis of the information available and the field expertise.
Friday, 29 March
2024
WORK STUDY METHOD for HR forecasting
38
 The work-study method is based on a thorough analysis of the tasks to be

done and the time each takes. From this the person-hours needed per
unit of output can be calculated, and standards are developed for the
numbers and levels of employees required. TIME AND MOTION
STUDIES.
 These are most useful in production work, but need to be checked

regularly to make sure they are still appropriate. Work study is usually
classified as an objective measure; however, it is often accepted that
since the development of standards and the grouping of tasks is partly
dependent on human judgement, it could be considered as a subjective
method.
Friday, 29 March
2024
HR Forecasting— Work Study Technique
39
 It aims at examining the business operations to

achieve the optimum utilisation of the human and
physical resources available.
 The major purpose of this technique is to improve
the employees’ productivity and the organisational
efficiency.
 This technique is normally carried out through
method study and work measurement techniques
Friday, 29 March
2024
HR Forecasting Method— Zero-Base Forecasting
40
 Zero-base forecasting requires lines managers to

justify the need to continue with the positions or jobs
that fall vacant in their department.
 It does not consider any position as eligible for
routine continuance-no position is taken for granted
 This method requires managers to conduct a
comprehensive study of the utility of each vacancy
before seeking replacements. This technique is
derived from the widely popular concept of zero-base
budgeting
Friday, 29 March
2024
What are statistical models of HRP?
41
 STATISTICAL MODEL--Statistical models generally relate employee

number demand to specific organisational circumstances and activities.
Models can take account of determining factors, such as production,
sales, passenger miles, level of service, finance available.
 Sophisticated models can take account of economies of scale, and other

relevant factors such as employee utilisation, resulting from the
introduction of new technology, or alternative organisational forms, such
as high-performance teams, or simply expecting people to work harder
and for longer hours
Friday, 29 March
2024
HR Forecasting method— HOW IS IT DONE
42 BY SIMULATION
Simulation model is a mathematics-oriented, software-enabled
technique
This model simulate the HR requirement sceniaro [HLL
detergent requirement in a particular territory in Banda near
Kanpur recruiting the a semi rural specialist sales force and
modelling against competitors such as Nirma and Patanjali
detergent] some and availability to determine the likely gap
between the demand for and the supply of human resources
The working of the simulation model involves asking several
what-if questions to develop alternatives in the forecasting
process.
Friday, 29 March
2024
The mathematical method
43
Markov analysis – transition matrix, or Markov matrix, can
be used to model the internal flow of human resources.
These matrices simply show as probabilities the average
rate of historical movement from one job to another. Figure
2-12 presents a very simple transition matrix. For a line
worker, for example, there is a 20% probability of being
gone in 12 months, a 0% probability of promotion to
manager, a 15% probability of promotion to supervisor, and
a 65% probability of being a line worker this time next
year. Such transition matrices form the bases for computer
simulations of the internal flow of people through a large
organization over time. Friday, 29 March
2024
HR Forecasting— Human Resource Allocation
44 Approach
 The Matching Method HAS FOUR COMPONENTS.
 1.EMPLOYEES INCLUDING EDUCATION EXPERIENCE AND COMPETENCIES.2.JOB FUNCTIONS

INCLUDING JOB STRUCTURE AND CHANGES IN THEM, 3.A FORMAL RULE STRUCTURE COMPRISING
THE FORMAL ALLOCATION, 4. WORKING TOWARDS A MATCHING MODEL
 THE MATCHING MODEL DEALS WITH ALLOCATION OF DIFFERENT JOBS TO EMPLOYEES. IT EQUATES
COMPETENCIES OF EMPLOYEES WITH THE COMPETENCIES OF THE JOBS. DEPENDING ON THE OUT
COME OF THE MATCHING MODEL AN ORGANISATION CAN FORECAST ANY ONE OF THESE SITUATIONS
GIVEN BELOW.
 THE ORGANISATION HAS THE NUMBER OF EMPLOYEES WITH THE APPROPRIATE COMPETENCIES. THE
ORGANISATION HAS A SHORTAGE OF EMPLOYEES TO FILL ALL JOBS THE ORGANISATION HAS
EMPLOYEES WHO HAS INAPPROPRIATE COMPETENCIES OR RENDERED SURPLUS DUE TO NON-
AVAILABILITY OF JOBS.
 AN ORGANISATION WILL forecast BASED ON THE SPECIFIC OUTCOME OF MATCHING MODEL. THE
METHOD PERMITS AN IN DEPTH ANALYSIS OF THE FACTORS AFFECTING THE HR FORECASTING OF THE
ORGANISATION.
 IT INVOLVES A COMPREHENSIVE ESTIMATION AND IS EASIER SAID THAN DONE AND IS DIFFICULT TO
IMPLEMENT.
Friday, 29 March
2024
HR Forecasting method—Estimation of Availability
45 supply side
 This process involves the estimation of the availability of the required
number of employees
 The techniques for forecasting HR availability through internal
sources are
 Replacement Charts (These are Records that contain details about
the currently serving employees and the possible replacements for
them in their position)
 Turnover Rate,
 Human Resource Management Information System (HRIS),
 Productivity Level,
 Overtime and absenteeism, and
 Succession Planning
Friday, 29 March
2024
46 Developing HR Plans and Programmes
 The estimated HR needs are matched with the
estimated HR availability to identify the skill shortage
or surplus
 Based on the outcome, an appropriate HR plans are
developed
 The outcome of such comparisons would be either the
recruitment of more employees or a reduction of the
existing workforce.
Friday, 29 March
2024
Bottlenecks impeding the HR Planning
47
Process
 Insufficient Realisation of the Importance of
HR Plans
 Glut in the Indian Labour Market
 Union Resistance
 Cost–Benefit Misconceptions
 Absence of Coordination
 Future Uncertainty
Friday, 29 March
2024
QUESTIONS FOR YOU TO PONDER EACH
SITUATIONAL SCENARIO VARIES
1. Imagine you're the manager of a small startup bakery. You have a team of
5 bakers who make delicious pastries and bread daily. But, one day, one
of your bakers quits unexpectedly. How would you ensure that you still
have enough bakers to meet the demand for your products?
2. Let us say you're the owner of a growing startup. Your company is
expanding rapidly, and you must hire more employees to keep up with the
demand for your products or services. How would you plan for the
number of new hires you'll need in the coming months or years?
3. Consider when you had to wait in line for a long time at a popular
restaurant or store. How do you think the business could have avoided
this situation by planning for the right number of staff to handle the
demand?
4. Imagine you're a coach for a sports team. You have a group of talented
players, but some might get injured or leave the team unexpectedly. How
would you ensure that you have enough players to field a strong team
during the season?
5. Let's say you're starting your own business. You know you will need
employees to help run it, but how do you decide how many people to hire
and when? What factors should you consider?
6. Think about when you had to wait on hold for a long time to speak with
customer service. How do you think the company could have avoided this
situation by planning for the right number of customer service
representatives to handle the demand?
7. Imagine you're running a busy hospitality business like a hotel or
restaurant. How would you ensure that you have enough staff to handle
1|P a g e
QUESTIONS FOR YOU TO PONDER EACH
SITUATIONAL SCENARIO VARIES
peak times like weekends or holidays while avoiding overstaffing during
slower times?
8. Let's say you're managing a team of salespeople. Some might retire or
leave the company unexpectedly, leaving gaps in your sales force. How
would you ensure enough salespeople to meet your sales targets and grow
your business?
9. Think about when you had to wait a long time to speak with an expert in
a particular field, like a doctor or lawyer. How do you think these
professionals could avoid this situation by planning for the correct
number of staff to handle the demand?
10. Imagine you're managing a team of engineers or designers in a fast-paced
industry like technology or fashion. How would you ensure enough people
with the right skills and experience to meet your product development
goals and stay ahead of the competition?
_______________________________________________________________________________
2|P a g e
HUMAN RESOURCE
MANAGEMENT
Prof. Dr. Armin Trost
Main Questions
 What is Human Resource Management (HRM)?
 Which Megatrends determine future challenges

in HRM?
 What are key fields of action in HRM?
Prof. Dr. Armin Trost Human Resource Management www.armintrost.de 2

Innovation

From manual work to knowledge work
0% 20% 40% 60% 80% 100%
1900 17 83
1930 30 70
1970 49 51
2000 62 38
2020 75 25
knowledge work manual work
Source: Zukunftsinstitut (2008)

Demographic Changes in Germany
50%
40% 25-34 35-49
50-64 65+
30%
20%
10%
0%
2010 2015 2020 2025 2030 2035
-10%
-20%
-30%

Globalization
German global Trade
Source: Statistisches Bundesamt: www.destatis.de

Web 2.0 – User-generated Content
Web 1.0 Web 2.0

Value Change

Megatrends determine future Challenges in HRM
 Acquire the right talents

Innovation
 Give the right rewards
 Support lifelong learning
Demography  Leverage employee potential
 Support diversity
Competitive
Globalization  Build successors Advantage
 Retain and share knowledge
 Shape attractive working conditions
Web 2.0
 Manage strategic changes
 Use latest technologies
Value Change
 Retain the best talents

Human Resource Management (HRM)
All planned and controlled activities of an

organization to build and maintain the
relation between employees and the
organization in order to meet both business
objectives and employee expectations

Key Terms
Human Resource Management - Innovation - Demographic

Changes - Knowledge Work - Value Change - Web 2.0 -
Globalization

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
Candidate Compensation
Selection & Benefits
HR Social HR
HR-IT
Organization Media Controlling

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
HR Social HR
HR-IT

Main Questions
 How are company strategy and HR strategy

related?
 As part of an HR strategy which company

functions should be of the highest priority?
 How to plan quantitative workforce demand on

both strategic and operational level?

Strategic Priorities
Innovation Brand Price Design Quality

Company Strategy – HR Strategy
Company Strategy Employees HR Strategy
Strategic Challenges Competencies Key Functions
Strategic Priorities Motivation Recruiting
Business Objectives Commitment Development
Competitive Values Communication

Advantages
Availabilty Layoffs
Company Vision

Which function is of the highest Importance?
Management
Core Functions
Sales/
Product Prod.- Production/ Key Service/
Mgmt
R&D Design
Planning Engineering
Marketing
Account Support
Mgmt
Supportive Functions
Human Public
Quality Controlling/ Facility/
Mgmt
IT Accounting
Resource
Security
Relations/ Purchase Logistics
Mgmt Comm.

Key- and Bottleneck-Functions
Low
Talent
Availability
High
Low Strategic High
Relevance
Source: Trost, A. (2012). Talent Relationship Management. Personalgewinnung in

Zeiten des Fachkräftemangels. Heidelberg: Springer.
Added Value in Key Functions and other
Functions
Added
Value
Key Functions  In key functions there

is an exponential
relationship between
performance and
added value
Mean
 Added value in key
Others functions is higher
compared to other
functions
Performance

Age Structure Analysis
600
500
Manager
Employees
400
Number 300
200
100
0
20 25 30 35 40 45 50 55 60 65 70
Age

Factors determining Workforce Demand
Senior
Promotion
Hiring out Losses
From outside Retirement,
Promotion Turnover
Professional in
Junior
Growth

Strategic Workforce Planning
2013 2014 2015 2016
Employees 120 128 132 140
Demand 18 23 28 29
Internal Availability 15 12 8 7
External Demand 3 11 20 22
Risk

Quantitative Workforce Planning Methods
 Leading Indicators
Determine the ratio between Performance and required
numbers of employees based on programmatic
assumptions (e.g. professors/students, nurses/patients).
 Trend Analysis
Applying statistical models that predict labour demand for
the future, given objective statistics from the previous
years
 Task Analysis
Tasks are identified and quantified in terms of
appearance and workload
 Conclusion by Analogy
Determine workforce requirements according to those of
similar organizational units or companies

Operational Workforce Planning
Revenue # Sales Revenue/ # Other Total #
Year # Mgr
(T€) Reps FTE* (T€) FTE of FTE
2004 6.000 30 200 9 39 6
2005 6.480 35 185 11 46 7
2006 6.998 37 189 12 49 7
2007 7.558 37 204 12 49 7
2008 8.163 36 227 13 49 7
2009 8.816 43 205 14 57 8
2010 9.521 46 207 13 59 8
2011 10.283 55 187 15 70 10
2012 11.106 58 191 17 75 11
2013 11.994 60 200 18 78 11
2014 12.954 65 20 85 12
Demand 5 2 1
Average annual Revenue Growth 8%

Average Revenue/Sales Rep (T€) 200
Average Relation Other Ees/Sales Reps 0,31
Span of Control 7 * FTE: Full Time Equivalent

Workforce Planning using Task Analysis
Example Italian Restaurant
Duration/
Assumptions # Tasks # Duration (h)
Task (Min)
Core Tasks 28
Guests/Day 200 Prepare Table 1/Table 67 2 2
Guests/Table 3 Take order 1/Table 67 3 3
Tables/Day 67 Prepare Pizza 1/Guest 200 4 13
Hours/Day 15 Billing 1/Table 67 3 3
Chat 1/Table 67 2 2
Drinks/Guest 2 Prepare Drinks 400 0,5 3
Additional Tasks 10
Breaks 5% 1
Administration 10% 3
Misc. 20% 6
Total 38
Working
8 Workforce Demand (FTE) 4,7
Hours/Day

Key Terms
Strategic Priority - Strategy - Business-HR-Strategy Linkage

- HR Strategy - Value Chain - Key Function - Bottleneck
Function - Age Structure Analysis - Workforce Demand -
Strategic Workforce Planning - Operational Workforce
Planning - Planning with leading Indicators - Task Analysis

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisitio
n Work
Retention
HR Social HR
HR-IT

Main Questions
 What does the traditional approach in recruiting

look like?
 How is a company able to position and present

itself as an attractive place to work through
building an employer brand?
 Which active search strategies help companies

to find and approach passive candidates?
 How can companies retain promising and

talented candidates?

Internal versus external Hiring
Internal Hiring External Hiring
 Lower risk  New perspectives/ideas

 Short Time-to-Fill  Lower training efforts
 Lower costs  Competitor insights
+  Internal competition  More options
 Faster integration
 Development opportunities
 Less options  Higher costs

 Higher training costs  More integration efforts
−  Disappointed colleagues  Higher recruiting risks
 Conflicts among managers  Higher turnover

Job Ads
 Employee Value
Proposition
 Job
 Job-ID
 Location
 Social Media
 Tasks and
Responsibilities
 Requirements,
Education,
Competencies
 Attractive aspects
 Application
 Send-to-friend

Contingent Workforce
Contract
Employment Worker Performance
Contract
Salary Direction
Agreement
Supplier Client
Fee
According: Holtbrügge, D. (2004). Personalmanagement. Heidelberg: Springer.

Career Fairs
 Direct and immediate

contact to potential
candiates
 Immediate pre-
selection and job
offering
 Direct Competition
with other employers
 Limited focus on
specific target groups
 Limited contact to
passive seekers
 Lower quality
candidates
 Additional information
services

Executive Search
 Usually executive positions will be filled through the

(secret) help of executive search consultants
 Leading executive search agencies are Egon Zehnder

International, Heiddrick & Struggle, Russel Reynolds,
Korn/Ferry, Kienbaum
 The overall fee is 33% of the candidate‘s future total

target annual salary which is billed independently of
the success of the search (retained search)
 There is a difference between active search based on

research and ad-based search

Executive Search Process
Determine Requirements
related to Position to be Interview Candidates
filled
Identify Target Check References of

Companies most suitable
(Consider off-limits) Candidates
Negotiate job-related
Candidate Search and Conditions (e.g. Salary,
direct Approach Sign-on Bonus)
Present profiles of three Coach new Executive

possibly suitable during first 100 Days of
Candidates Employment

Talent Relationship Management
Employee
Target Group Active Candidate
Value
Definition Sourcing Retention
Proposition
Positive
Selection &
Candidate
Recruiting
Experience


Employer Image as a competitive Advantage
- X%
- X%
- X%
- X%
- X%
Awareness Company Employer Job Application Retention

Image Image Appeal
Branding Personnel Marketing/

Relationship Management

Which Promise?

Product Brand versus Employer Attributes
Product Employer
Function Prize Company Tasks
Prestige Quality Products Offers
Inno- Values People

Design
vation
According: Corporate Leadership Council (1999). The

Employment Brand. Washington: The Corporate Executive
Board.
Building an Employer Brand
Target Group Definition
Operation Analysis
Creative Formats, Rules Employer Image,
& Processes, Validation, Target Group Preferences,
Campagnes Employer Stengths,
Labour Competition
Strategy
Employee Value
Proposition (EVP),
Media strategy
Source: Trost, A. (Hrsg.) (2009). Employer Branding. Arbeitgeber positionieren und

präsentieren. Köln: Luchterhand.

Potential Employee Value Propositions
Offers Tasks Company People Values Purpose
Compensation Attractive tasks Products/ People‘s Company Environment &

& projects Services Personality culture Climate
Benefits
International Technology Qualification Leadership Social
Career work leader level of quality responsibility
opportunities workforce
Innovation Market leader Famous leader Health of
Work-Life- Collaboration others
Balance Impact Success Trust &
Diversity Respect Quality of live
Location
Work flexibility
Public
reputation
Security
Customers


An historical Example

To the point

Defining the Employee Value Proposition
Employer Target Group Competitors‘ EVP

Employee Value
Strengths Preferences Strengths Proposition
A A A
B B B
C C C
D D
E E E
authentic relevant different


Focus on Opportunies, Chances, Perspectives
* Grades are not everything. Your talent also matters!

From EVP to specific Messages
EVP
Strengths
Evidence & Stories
Target group specific messages


Media Channels
N:N
Facebook
Internet-Forums,
Communities
Twitter
Blogs
YouTube
Career
fairs
Workshop
Personal Company- Career-

Conversation presentation Website 1.0 Print
1:1 1:N


Active- passive- and non-seeking Candidates
 Read job ads, visit career

fairs, apply actively
Active
Seeker
 Have a job, are open for new

Passive opportunities, observe the
Candidates market but don‘t visit career
fairs
 Are not interested in a new job

Non-Seeker opportunity by any means, are
happy with their situation, new
in their current position, close
to retirement, ...

Active and passive Ways of Talent Sourcing
High
Guerilla
Recruiting
Competitive
Poach the Intelligence
Recruiter
Tribal Talent
Recruiting Scouting
Social
Competitiveness Community
Recruiting Employee
Referrals
Executive Campus
Search Recruiting
Career
Fairs Networks
Job Ad
Low
Low Line Engagement High

Campus Recruiting
Target Universities Relationship Building Marketing Activities
Criteria definition, Building social Measures to get in touch,

prioritization of relationships to students, evaluate and retain
universities/faculties and professors, with faculties students with high level
selection and student of talent and motivation
organizations
Partnering between employer and target

university

Campus Recruiting Roles
Student
Ambassador
Top-Manager HR
Students
Manager/
Professors
Employees
Career
Center

Campus Recruiting Measures
High
Internships Theses
Presentations/ Scholar-
lectures ships
Benefit* Case-Study-
Workshops Company
Inhouse Sponsorship
Days
University
Days Theses
Award
Posters
Low
Low Effort High
* Based on numbers of applications

Social Networks
 „A-Player know A-Player“
 „The Strength of weak ties“
 Growing usage of employee

referral programs
 Referrals are seen as highly

credible
 Growing social media usage

Employee Referral Programs
 Employees refer to
potential candidates
(friends, former
colleagues etc.)
Recommended
 Company gets in Person
touch with
recommended person
Hiring
Referral
 Once the
recommended person
gets hired the Company
Employee
employee who
referred to him/her
gains a bonus Bonus

Social Community Recruiting

Guerilla Recruiting

Candidate Segmentation
Very
High
A
Candidate B
Potential
C
Medium/
High
Low Relevance to High
Key-/Bottleneck Function


Candidate Retention Measures
C B (C) A (B, C)
1:1 Regular Conversation with
line representatives
Invitation to Breakfast
company events with the CEO
Intensity Greeting Weekend- Job-Offers
cards workshops
Social Holiday Theses
Media Jobs
Access to Company Personal

Intranet magazine gifts
Information about vacant positions
1:N
Newsletter
Priority


Internship Program
Employee
Company keeps
Talent relationship to former
Formal Assessment Pool intern
Responsibility for a small

project of relevance for
Project Work
the company/business
function
Transactional work on a
daily basis in one or more
Regular Internship
business functions

Candidate Retention Cycle
Talent-Pool
Nomination
Operation Planning
Documentation
Job-Offer Recruiting


Positive Candidate Experience
Speed Transparency Appreciation
The company‘s reaction The candidate is always The candidate is treated

on incoming applications clear about current with full respect. The
and throughout the entire status. He/she company consequently
recruiting process is understands why certain demonstrates its interest
faster than thoses of the selection instruments are in those candidates it
competitors used and gets wants to hire.
appropriate feedback

Key Terms
Internal versus external Hiring - Job Posting/Add - Career

Website - Contingent Workforce - Career Fair - Public
Jobboard - Executive Search - Off-Limit - Talent Shortage -
Talent Relationship Management (TRM) - Employer Image -
Brand - Product versus Employer Brand - Employee Value
Proposition - Employer Positioning - Employer's Strengths
- Labor Competition - Target Group Preferences - Active
Seeker - Passive Seeker - Active Sourcing - Social
Community Recruiting - Referral Program - Guerilla
Recruiting - Campus Recruiting - Internship Program -
Talent Pool - Candidate Retention - Candidate Experience

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
Candidat
e Compensation
HR Social HR
HR-IT

Main Questions
 During a company‘s recruiting process how are

the most suitable candidates selected and which
risks need to be controlled?
 How can a company determine a candidate‘s

future performance? Which selection criteria are
typically used?
 What are the most commonly used selection

methods?
 How can you determine the quality of a selection

method in terms of objectivity, reliability and
validity?

Recruiting Risks
High
False Right
Negative Positive
Actual
Performance
Right False
Negative Positive
Low
Low Predicted High

Performance

Job – Position – Employee
Position Job Employee
Responsibilities
e.g. teacher, butcher,

manager, sales
representative
Job Family

Job Architecture
Joblevel Chief Marketing Officer
Executive
Head of Accounting
Upper
Management Research Manager
Department Head
Team Lead Sales

Representative
Senior Research
Assistant
Junior
Marketing R&D Production Sales Admin HR
Job Family

Content and Purpose of Job Analysis
Critical Selection
Requirements
Incidents Criteria
Job
Description
Employee
Magic Attractive
Value
Moments Aspects
Proposition
Job Analysis

Critical Incident Technique
Example: Waiter in a Restaurant
Critical Incidents Requirements
 Restaurant is crowded and  Friendliness

guests become impatient
 Speed
 Guests complain about inedible
dishes  Resilience
 A drunken group of guests with  Knowledge

no money in their pockets
 Direction
 A guest wants to learn more
 Coolness
about minor details of a
specific wine  Diplomacy
 The cook is sick and his deputy  Empathy
is out of his depth

Limitations of Job Analysis
 Job-related aspects change

over time
 Jobs need to be identified and
classified (job architecture)
 It might be the employee who
defines his/her job (dejobbing)
 Job descriptions may increase
bureaucracy
 Job descriptions support the
„this-is-not-my-job“ mindset

Relevant Candidate Dimensions
Knowledge Personality
Interests Motivation
Expectations Competence
Attitudes Talents
Contacts Age, Gender,

Look?
... and how they might be judged
Education Appearance
Interview Motivation
Letter
Reason to
CV
Apply
Private Former
Engagement Development
References Photo,
Appearance
Candidate 1
 Engineer
 Intelligent
 Teamplayer
 Confident
 Result-oriented
 Ambitious
 Creative

Candidate 2
 Engineer
 Intelligent
 Teamplayer
 Confident
 Result-oriented
 Ambitious
 Creative

Social Judgement Biases
 First Impression  Stereotyping

The tendency for a The tendency to
perceiver to rely on early generalize about people
cues or first impressions. in a social category
 Recency Effect  Contrast-Effect
The tendency for a The tendency to judge
perceiver to rely on upward or downward
recent cues or last because of a comparison
impressions. with another candidate
who was recently judged
 Projection
The tendency for  Halo-Effect
perceivers to attribute The tendency to provide
their own thoughts, similar ratings across
priorities and feelings to different dimensions
others based on an overall
judgement

Recruiting-Funnel
Application 10:1 2:1 5:1 2:1 3:2 Hiring
Pre-Selection Personal Accepted

Interview Job-offer
Telephone- Assessment
Interview/ Center
Test

Selection-Process
Results
Criteria definition
consolidation
Appropriate tools
Decision
and methods
Communicating the
Usage
decision

Selection Methods – Overview
Method Spread Effort Objectivity Validity
Resume
Cognitive
Ability Test
Physical
Ability Test
Personality Test
Biographical
Questionnaire
Personal
Interview
Assessment
Center

Selection Method – Overview
Method Spread Effort Objectivity Validity
Reference Check
Background
Investigation
„Google“
Heuristics
Physiological
Tests
Graphology
Games/Simulation
s

Myers-Briggs Type Indicator (MBTI)
Favorite World Extraversion Introversion
Information Sensing INtuition
Decision Thinking Feeling
Structure Judging Perceiving

D2

Intelligence
Select the option that best fits the pattern of For each question determine the number
the previous images that best fits the pattern of the previous
numbers
1. 1, 3, 6, ?
2. 3, 5, 8, 13, 21, ?
3. 3, 6, 18, 108, ?
4. 4, 1, -3, -4, ?
5. 95, 36, 15, ?
6. 6, 13, 29, 63, ?
7. 1, 1, 2, 6, ?
8. 12, 33, 55, ?
9. 99, 86, 73, ?
10. 2, 5, 8, 35, ?
11. 4, 16, 49, ?
12. 73, 61, 56, 62, ?
13. 1588, 1820, 2148, 2204, 2284, ?
14. 923, 937, 963, ?

Intelligence
There is scientific evidence, that people who earn

more money are often not as happy than those who
earn less money.
Please create as much theses supporting this

finding as possible.

Intellingence Score Distribution
Frequency
Mean:
100
Standard-Deviation:
15
85 100 115 Test-Score (IQ)

Projective Tests
Thematic Apperception Test Rorschach-Test

Online-Tests
 Advantages
– Global access/availability
– Low operating costs
– Opportunity for adaptive
item presentation
– Automatic/immediate
analysis and reporting
– Opportunity to track
response time
 Disadvantages
– Limited control over test
situation and subject
behaviour
– Limited opportunities to
professionally support
interpretation of results
Advantages of Psychometric Test Methods
 High objectivity due to limited impact of test operator

 High comparability across candidates due to
standardized test conditions
 Limited costs per test usage
 Test can be used as modules complementing other
selection measures
 Tests require minimal infrastructures and can be used
in almost every situation
 Tests can be exposed even online at any time and at
many locations
 Analysis is very simple (e.g. score is equal to the
amount of correctly-answered items)

Interview Structure
Tension
Informal
Talk
Questions
about the
applicant
Open
Questions
Next Steps
Company/Jo
b
Presentation
Time

What both sides want to know in an Interview
Applicant Employer
 Why am I invited?  Why are you here?
 What can your company  What can you do for us?

offer me?
 What kind of person are
 What kind of employer are you?
you?
 What distinguishes you from
 What distinguishes your others who have the same
company from others? skills?
 Can I afford to work at your  Can we afford you?

company?

Interview Questions to assess Competencies
 Strategic Thinking
How does the work you are currently doing affect your
organization‘s ability to meet its mission and goals? Do you
think your work is important? If yes, why? If no, why not?
 Planning
Describe a time when things didn’t turn out as you had planned.
What did you do to analyze the situation and how did you
address the issue?
 Interpersonal Relations
Give an example of a situation where the group of people you
worked with on a regular basis had a serious conflict. What was
the conflict about? How were you involved in the conflict? What
was the outcome?
 Communication
Tell me about a time when you really had to pay attention to
what someone else was saying, actively seeking to understand
their message? How did this challenge affect the manner in
which you portray important messages to others?
Source: Corporate Leadership Council (2004): Interview Questions to Assess Competencies
Combined Interviews
Interview 1 Interview 2 Interview 3 Panel-

Criteria
HR Manager Techn. Exp. interview
Teamability
Technical Skills
Motivation
Leadership
Mobility

Assessment Center
Candidates
× Assessors
× Criteria
× Methods
× Situations
6-15 Well-trained Intelligence, Tests, In-tray,

candidates psychologists social group- presentation,
and competence, exercises, Role play,
managers mobility Interviews, ...
... ...

Assessment Center Setting
Participants
Assessor Facilitator

Assessment Center Exercises
Dynamic
Role play
Meet
Introduction (role not
Employees
defined)
Role play
In-Tray Case Studies
(role defined)
Group
Psychometric Business
problem
Tests Simulation
solving
Standard
Individual Group

Assessment Center Architecture
Group Intelligence
Criteria Introduction
Exercise
In-Tray
test
Interview
Leadership
Communication
Intelligence
Mobility
Intercultural
Sensitivity
Organization

Judgement Scheme
Example Introduction
Nr. Criteria Points Commends
1 Speaks loud and clear 3 mumbles
2 Keeps eye contact 6 sometimes
3 To the point 1
4 Body expression 3 overdone
5 Structure 7 Uses flipchart
6 Stays in time 5 3 Minuts
7 Uses Time 2 Speeds up
Total 27

Advantages of Assessment Centers
 High objectivity, reliability and validity through

multiple methods, exercises, criteria, assessors
 Comparability of candidates within and across

assessment Centre cycles
 Reflection of future duties and responsibilities
 Limited risk of social desirable behaviour
 High transparency of requirements in the eyes of

the participants

Correlation
 Correlation reflects r = 0,5 r=0
linear relationship Y Y
between two
variables (X and Y)
 It can vary between

-1 and +1
X X
 Is used to determine
r = 0,9 r = -0,5
validity, reliability
Y Y
and objectivity
X X

Validity
 Validity describes the extent to which results of

an assessment method relate to what it is
supposed to measure
Person Test Criterion
1 78 72
(e.E. Performance)
2 67 68
Criterion
3 44 51
…
n 89 83
r Prediction (e.E. Test-Score)
Criterion-Validty

Reliability and Objectivity
 Reliability  Objectivity
The extent to which a predictor Multiple rater independently
repeatedly produces the same produce the same results in
results over time terms of execution, analysis
and interpretation
Person 1. Test 2. Test Person Assessor 1 Assessor 2

1 78 72 1 78 72
2 67 68 2 67 68
3 44 51 3 44 51
… …
n 89 83 n 89 83
r r
Test Retest Reliability Interrater-Reliability

Key Terms
Candidate Selection - Hiring Risk - Job versus Position -

Job Architecture - Job Family - Job Analysis - Critical
Incident Technique - Job Description - Dejobbing - This-is-
not-my-Job-Mindest - Applicant - Stereotyping - Primacy
Effect - Halo-Effect - Recruiting Funnel - Pre-Selection -
Biografic Questionnaire - Reference Check - Background
Investigation - Graphology - Heuristics - Resumé -
Personality - Personality Test - Social Desirability - Myers-
Briggs Type Indicator - Ability Test - Intelligence Test -
Standard Deviation - Projective Tests - Online Testing -
Adaptive Item Presentation - Job Interview - Assessment
Center - In-Tray Test - Role Play - Correlation - Validity -
Reliability - Objectivity

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
Candidate Compensatio
Selection n & Benefits
HR Social HR
HR-IT

Main Questions
 What is equity?
 Which components make up total reward and

based on which factors are these components
determined?
 Under which conditions does money impact

motivation for performance?

Equity
Reward
 Distributive Equity
A One‘s performance
reward relation
compared to others
Equity  Procedural Equity

Do procedures to
determine compensation
B
lead to fair results?
Performance/
Contribution to company success

Factors determining Compensation
Strategic
Responsibility Performance
Relevance
Company
Qualification Market
Success
Civil
Cost of Living Tenure
Status

Total Reward
Total Reward
Total Compensation Non-financial

Reward
Base Pay Variable Pay Benefits
Individual/ Organisation
Group
Salary Piece Rate Profit Insurances Appreciation

Sharing
One-time Contacts
Wages Bonus Stock
Ownership Pension
Target Bonus Privileges
Stock
Commission Options Services Title

Development of a Base Pay System
Job Analysis
Job Evaluation Pay Survey
Pay Policies Pay Structures
Job
Individual Pay
Appointment
Implementation,
Communication,
Monitoring
According: Mathis & Jackson: Human Resource Management. South-Western.

Compensable Factors – Hay System
Functional Expertise 8
Knowledge Managerial Skills 7
Human Relation 3
Environment 8
Problem Solving
Challenge 5
Freedom to act 8
Accountability Impact on end results 4
Magnitude Dyn.

Job Evaluation
Example Consulting Company

Market Line
Market Pay
Average Salaries in the Market
 Benchmark jobs are Jobs
at other companies with
Benchmark-Jobs Market similar duties,
Line requirements etc.
 Market line represents

relationship between job
value and market pay
 Computing market line

by using statistical
regression analysis
Job Value

Base Pay Structure
Job Grade
Based on Job Value Market Line
5 A
4 B
Pay Rate (€)

Opportunities and Threats of Job Evaluation and
Base Pay Structures
Opportunities Threats
 Common foundation for  Significant bureaucracy

compensation-related during implementation
decisions
 Acceptance of all
 Job-related distributive and stakeholders involved
procedural equity
 Requires clear job definitions
 Transparency of
compensation-related  Reduces flexibility of
decisions compensation-related
decisions
 Active elaboration of job
values and contribution to  May reduce innovation and
company‘s success employee engagement

Compensation of Business Graduates
in Germany
Entry-Level (Graduates) Professional Experience
Median
50%
Source: Personalmarkt, 2006

One-Time Bonuses
 A one-time bonus is a one-time payment that

does not become part of the employee‘s base
pay
 Can be used to reward employees for

contributing new ideas, coping with critical
challenges, acquiring new skills
 Bonuses usually recognize performance of both

the employer and the company
 Bonuses provide great flexibility in rewarding

valued behaviours at particular situations

Employee Recognition System
 Every employee can acknowledge special

performance of his/her colleagues with a gift
 Based on his/her own budget (% of base pay)
 To operate the system there is an internal kind of

gift-plattform in the intranet
 The value of gifts totally received by an employee

can serve as a basis for performance appraisal
 It‘s a rarely used approach but its popularity

increases

Piece-Rate System and Commission
Piece-Rate System Commission
Daily Wage Salary
variable variable
fix fix
Daily Performance Revenue

Target Bonus
 Employee and supervisor Target Bonus

(%)
agree on both individual
targets and relation between
target achievement and target 140
B
bonus
120
 Employees can choose from A
different options reflecting
100
different risk preferences
 Primarily used for managers 80

and senior employees
60
60 80 100 120 140

Target Achievement (%)

Objective Setting Scheme
Point Achieve- Point Value ×

Objective Value ment Achievement
Organize CEBIT Fair attendance.

Generate 100 leads + follow-up 10 130% 13
Successfully integrate 3 new hired

colleagues by end of the year 10 90% 9
New corporate website relaunch. 400

clicks per day by end of the year 25 105% 26
Σ 45 48
Σ 100% 107.2%
Target Bonus in € 5.000 5.361

Does Money motivate? The Candle-Problem
1 2 3
Dan Pink: The puzzle of motivation

http://www.ted.com/talks/dan_pink_on_motivation.html

Pay for Organizational Performance
 Profit Sharing
Proportions of organizational profits are distributed
among employees according to their base pay
 Employee Stock Ownership

Giving employees stock ownership of the organization or
the right to acquire stocks at a price below market.
Employees must keep stocks for a specific period of time
 Employee Stock Options

The right to buy (exercise) a certain number of stocks at a
specific price

Employee Stock Options
Example
Stock price
13€
10€ Option
6€
4€
0 Time t

Types of Benefits
 Security  Financial
– Unemployment – Interest-free building loan
compensation – Company credits
– Life insurance – Financial counselling
– Disability insurance
– Early retirement options  Offerings
– Disability retirement benefits – Company car
– Pension Plans – Private cell phone, laptop
usage
 Health – Free lunch
– Health Care Insurance – Cafeteria and food services
– Sabbatical – Child Care; Company
– Free tennis courts, fitness Kindergarten
centre usage – Cost advantages for
– Medical care company products
– Psychiatric counselling – Company accommodation

Deferred Compensation
Tax-deductible Pension
Cash Pension
Employer Employee Employer Employee
Compensation 1.000.000 € 1.000.000 € 1.000.000 € 1.000.000 €
Social Security + 200.000 € - 210.000 €
Pay Tax - 290.000 €
Result 1.200.000 € 500.000 € 1.000.000 € 1.000.000 €
Benefit 200.000 € 500.000 €

Reasons why Companies offer Benefits
 Benefits protect employees and their dependents

from financial risks associated with illness,
disability, and unemployment
 Most benefits are not taxed. For this reason, they
might represent a more valuable reward to
employees than an equivalent cash payment
 Benefits may contribute to attracting, motivating
and retaining human resources
 Some benefits add value to the employee without
additional costs for the employer. As such,
benefits might serve as substitutes for financial
compensation
 Some benefits are required by law

Flexible Benefits (Cafeteria System)
 Flexible Benefit Plan

A plan that allows employees to select the benefits they
prefer from groups of benefits established by the employer
 Reasons for using “Flex Plans”

– Perceived value of benefits depend on employees’ age,
family status etc.
– By tailoring the right benefit package employees gain
maximum value without additional costs on employer’s side
– Flex plan increases employees awareness of the costs and
value of benefits offered
 Problems with Flexible Plans

– Inappropriate benefits package choices
– Adverse use of specific benefits by higher-risk employees
– Administrative and communication efforts
– Benefit requests are hard to predict

Key Terms
Equity - Factors Driving Individual Compensation - Total

Reward - (Non-)Monetary Rewards - (Non-)Financial
Rewards - Total Compensation - Job Evaluation -
Compensable Factor - Point Method - Benchmark
Study/Pay Survey - Benchmark Job - Market Line - Pay
Structure - Pay Range - Pay Grade - Median - Piecework -
Commission - Bonuses - Target Bonus - Intrinsic versus
extrinsic Motivation - Profit Sharing - Employee Stock
Ownership - Employee Stock Option - Benefits - Deferred
Compensation - Flexible Benefits

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
HR Social HR
HR-IT

Main Questions
 What can be learned through training?
 In which coporate fields are training courses

typically used?
 How can a training-event be designed and

devloped in order to meet predefined learning
objectives?
 How to ensure employees transfer what they

have learned during training into real life?
 How do modern media and working conditions

influence the way people learn in a company?

What can be learned how?
Training
Knowledge
Competence
Talent Develop
Experience
Intelligence

Corporate Fields where Training Courses are used
Unique Training Needs
Training as part of a Customized training

large-scale change addressing special
initiative development needs for
E.g. IT-implementation, teams and individuals
cultural change E.g. sales training
Planned,
strategically Demanded
decided
Regular training for Training for employees

specific target groups offered on demand at
E.g. newly-appointed high volume
managers, new hires E.g. group conflict training
Standard Training Needs

Content of a typical Training Catalogue
Office Business
Languages Accounting Labor Law
Packages Administration
Leading Conflict Coping with Doing

Communication
People management Stress Interviews
Project Working Facilitation/Pr Time Sales

management techniques esentation management technique

Increasing Productivity through Employee
Onboarding
Productivity
With Onboarding
Benefit
Without Onboarding
First Weeks in a new Job

Training Course Development
 Target Group
Needs Analysis  Learning Needs
 Relevant situations
 Content and learning objectives

Design  Methods and media
 Costs und budgets
 Trainer
Operation  Duration, Schedule
 Infrastructure
 Evaluation
Evaluation  Optimization

You don‘t know what you don‘t know
Knowing Explicit
Conscious incompetence Capabilities
Unconscious Unconscious Implicit

Incompetence Competence
Weak Strong
Capabilities Capabilities

Needs Assessment Methods
 Structured interviews  Critical Incidents

on individual or group Techniques
level
 Participated or non-
 Self-administered participated observation
assessment tools
(e.g. tests)  Off-site needs
assessment workshops
 Ratings from peers,
supervisors,  Professional auditing by
subordinates (external) experts
 Shadowing, diaries,
 Coaching

Training Approaches
Along the Job

Assistance
Substitute
Into the Job On the Job Out of the Job

Education Job Rotation Outplacement,
New Hire Integration Coaching; Mentoring Retirement
Trainee Programs Project Work
Near the Job

Task Forces
Work Groups
Off the Job

Congresses
Outdoor-Training
Off-side-Training

Advantages of „On-the-job“ versus „Off-the-job“ -
Training
On-the-Job Off-the-Job
 Natural and job-related  Expertise and experience of

training conductor
 Lower costs of development
measure  Professional learning
environment
 Immediate application of
newly acquired knowledge  Focus on training, limited
job-related disruptions
 Immediate Feedback
 Networking among
 Opportunity to monitor participants out of different
development advances functions and countries
 Motivation to learn

Training Methods
Dynamic
Group work
Coaching with indiv. Role Play
presentation
Facilitated
Exercises for Case Studies
group
Individuals in Groups
discussion
Business
Literature Presentation
Simulation
Standard Blended Learning

Individual Group

Course Schedule
Example: Project Management Course
Day # Time Topic Objective Method Material

1 1 9am Introduction Understand the Presentation Course Handout
attributes of a project Slides 1-8
and the key challenges
to manage projects
2 10am Critical Factors Understand which Group Flip-Chart
factors drive success of Discussion & Pin Board
projects in the
participants' business
context
3 11am Break
4 11:30am Project Planning Participants become Presentation Course Handout
familiar with gant-chart Slides 9-16
technique to schedule a
project
7 1pm Lunch
6 1-2pm Project Planning Participants learn how to Group Work Case Study 1;
Excercice apply gant-chart Pin Board
technique

Levels of Training Evaluation
according to Kirkpatrick
What are the immediate

Reaction reactions of the participants Questionnaire
after the training?
Have the participants

Tests,
Learning acquired knowledge as it was
Examination
intended?
Did the training lead to

Observation,
Behaviour changing behavior at the
Evaluation
participant‘s daily work?
Did the training impact

Performance
Results achievements of
Indicators
organizational goals?

Learning Transfer
Participants
 Cognitive abilities
 Learning-motivation
 Readiness to learn
Training
 Training Quality
Trainer, Media, Structure,
Methods, Material, Environment Learning Transfer
 Relevance of content
Work Environment
 Support by
colleagues/manager
 Opportunity to apply
 Feedback
According: Baldwin, T.T., & Ford, K.J. (1988). Transfer of training: A review and
directions for future research. Personnel Psychology, 41, 63-105.

Formal versus informal Learning
 Formal Learning
20%
Learning in an institutionalized
context, dedicated to learn (e. g.
courses, training-programs)
80%
 Informal Learning
80% Learning happens self-
organized and often as a
positive side-effect of daily work
20%
Budget Effect
Source: Cross, J. (2006). Informal Learning: Rediscovering the Natural Pathways That Inspire
Innovation and Performance. San Francisco/CA: John Wiley.

Managers as Teachers

Learning on Demand
Expert Forums Wiki, Blogs
YouTube
Tutorials
Communities
Peers of Practice Literature
Off-the-Job iTunes U
Training
Conferences
Direct
Manager
Simulations Yellow
Pages
Yammer
Social Expert
Education Podcasts Communites
Micro-Blogging
Source: Trost, A. & Jenewein, T.
(Hrsg., 2011). Personalentwicklung
2.0. Köln: Wolters Kluwer.

YouTube Tutorials

Communities of Practice
 Group of employees with similar professional

interests, background or duties
 Informally organized meetings during working-

hours
 Exchange of best practices and ideas to

autonomously chosen topics
 Exist independently of organization and

hierarchies – results will not be reported to
management
 Engagement of external speakers and experts

Principals of informal Learning
 Learning content is easily produced, shared and

found via Web 2.0 (e.g. YouTube)
 Flexible and problem-related usage of content

(„Learning-on-Demand“ instead of „Learning-
just-in-case“)
 Learning from others (peers) through Social

Media und Communities of Practice
 Room and infrastructures allow self-directed

learning and knowledge exchange

Knowledge Management Challenges
Knowledge
Knowledge Retention Knowledge Transfer
Identification
How can the employees‘ How can a company and How can the knowledge of
knowledge be retained its employees know what one employee be
inside the company even the (other) employees transferred to another
when employees leave it? know? employee?
?
! ! ! !
A A A B C A B

Collect-Approach via Knowledge Database
!
Search for
Expertise ?
Document
Document
Knowledge
Database

Connect-Approach via Yellow Pages, Wikis, ...
! Personal
exchange
?
Reference to
expertice
Search for
experts
Yellow Pages,
Wikis, Forums ...

Key Terms
Training & Development - Knowledge versus Competence -

Strandard Training Catalogue - New Hire Onboarding -
Training Needs Analysis - Off-the-Job Training - On-the-
Job-Training - Blended Learning - Training Evaluation -
Learning Transfer - Formal versus informal Learning -
Learning on Demand - YouTube Tutorial - Communities of
Practice - Wiki - Podcast - Mobile Learning - Knowledge
Management - Collect- versus Connect-Approach -
Knowledge Database - Yellow Pages

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
HR Social HR
HR-IT

Main Questions
 How can companies ensure that they have

successors ready for key positions at any time?
 Which methods and criteria are typically used to

identify talent inside a companies?
 What are required conditions for employees to

leverage their talent as part of their long-term
career?

Leadership-Development at McDonalds
German Perspective
Global Leadership
Global Development Program
GLDP Senior Executives
European Leadership
Europe ELDP Development Program
Top-Executives
Operations
West ODP Development Program
Senior Superiors
Young Leaders
Germany YLDP Development Program
Junior Management Talents
Restaurant Manager-
RMDC Development Center
Restaurant Management

Classic Approach of Talent Development
Succession Performance
Planning Management
Stretch Role Talent Review

Assignment
Competency
Model
Training Potential
Off-the-Job Assessment
Source: Trost, A. & Jenewein, T.

(Hrsg., 2011). Personalentwicklung
2.0. Köln: Wolters Kluwer.

Competence
Learned ability to successfully solve

problems or cope with given
Competence
challenges
Action-related knowledge acquired

Experience through repeated solution of practical
problems
Cognitive understanding of aspects
Knowledge and how they relate to each other
Cognitive and physical abilities

Predisposition determined through genetiv
predispositions (DNA)
Stable predisposition to demonstrate
Personality similar behavioral patterns in similar
situations

ABB Leadership Competency Model

Development Needs Identification
Job Position Employee

Senior Specialist Senior Specialist CRM Garth McGrath
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Creativity Creativity Creativity
Teamwork Teamwork Teamwork
Presentation Presentation Presentation
Project Mgmt Project Mgmt Project Mgmt
Mobility Mobility Mobility
SAP R/3 SAP R/3
English English
Development Needs

Limitations of Competency Model Usage
 Depending on a given situation a

competence might be a strength or a
weakness – what matters is the right
balance
 Having a certain competence does not
necessarily mean that the person in
question actually uses it
 Similar challenges can be met through
different sets of competencies (internal
compensation)
 It matters how competencies are given in an
entire team. Not everybody must have same
competencies (external Compensation)

Performance Management Cycle
Superior Objectives  In an annual cycle employee

and their immediate supervisor
agree on objectives both in
terms of performance and
Performance Objective development
Appraisal Setting
 Individual objectives derive
from superior objectives
 In a backwards perspective
achievements/performance of
the employee will be reviewed
 The annual meeting between

employee and supervisor is
called „appraisal interview“
Mid-Year Review

Purpose of Performance Management
 Cascading strategic objectives from upper

hierarchical level to the bottom line
 Alignment and focus of individual and team

performance with overall target
 Clarity about mutual expectations within an employee-

manager relationship
 Continuous learning and constant improvement of

performance through feedback and target-oriented
people development
 Foundation for numerous key processes in human

resource management such as compensation, people
development, succession planning (horizontal
integration)

Performance Management Form

Behaviorally anchored Rating Scale (BARS)
Example Teamwork
Level 1 Level 2 Level 3 Level 4
Contributes willingly towards Takes responsibility for Builds support and Builds highly productive
the accomplishment of team activities that stretch enthusiasm for the teams from highly diverse
goals of one’s own team, beyond own functional accomplishment of team disciplines, cultures or
doing his or her share of the area. goals. organizations.
work.
Solicits the input of team Uses the agendas and Creates commitment to and
Demonstrates respect for members and encourages perspectives of others to enthusiasm for the
the opinions and ideas of their participation. establish mutually accomplishment of
others. beneficial objectives. challenging objectives across
Ensures participation of diverse teams.
Does not remain silent or others who are affected Takes responsibility for the
withhold differing opinions in by plans or actions. accomplishment of team Masterfully integrates people
team settings. goals. and resources to achieve
Puts team’s agenda and high levels of synergy.
Is willing to accept the good of the whole Removes obstacles that
compromises to progress ahead of personal needs. get in the way of team Resolves dysfunctional
toward the achievement of success. conflict within or among
group goals. Finds areas of agreement teams to ensure business
when working with Gives recognition and success.
Follows through on conflicting individuals or credit to people who have
commitments made to other groups. contributed to team
team members. success.
Helps others to solve
Keeps people informed and work problems and Takes specific steps to
up to date. achieve team objectives. keep morale and levels of
performance high during
times of intense work
pressure.

Overall Performance Ranking Scale
Rating Definition
Exceptional performance rarely achieved. Marked by precedent-setting results beyond the scope of the
5.0 position. Demonstrates the highest standards of performance excellence relative to individuals with
comparable levels of responsibility
Consistently exceeds all position requirements and expectations. Accomplishements are highly valued
4.5 and may be well beyond the scope of the position. Demonstrates higher standards of performance
excellence relative to individuals with comparable levels of responsibility.
Consistently exceeds most position requirements and expectations. Accomplishements are often
4.0 noteworthy. Overall performance is consistently above levels of quality and quantity relative to
individuals with comparable levels of responsibility.
Exceeds some position requirements and expectations. Successfully accomplishes all objectives.
3.5 Overall performance matches levels of quality and quantity relative to individuals with comparable levels
of responsibility.
Meets position requirements and expectations. Accomplishes most or all objectives. Some aspects of
3.0 overall performance may require additional development or improvement to match levels of quality and
quantity relative to individuals with comparable levels of responsibility.
Falls below performance standards and expectations of the job. Demonstrates one or more performance
2.5 deficiencies that hinder acceptable performance relative to individuals with comparable levels of
responsibility
Does not meet minimum requirements in critical aspects of the job and has numerous performance
1.0-2.0 deficiencies that prevent success at Microsoft.
Source: Bartlett, C. A. (2001). Microsoft. Competing on Talent (A). Harvard Business School.

What if ...
 employee and manager talk  there is already a natural

about relevant aspects on a relationship between manager
daily basis anyhow? and employee built on trust
and respect?
 employee and manager don‘t
usually talk to each other  at daily work the manager has
throughout the year? limited insights into
employee‘s performance?
 problems should have been
adressed once they occurred?  The manager has limited
understanding of the
 the suppervisor struggles with
employee‘s professional
giving honest feedback?
work?
 superior objectives are not as
 objectives dynamically
clear as they should be?
change in the course of a
 the benefits of the appraisal yearly period?
interview are nor seen by
 the employee doesn‘t fully
either the employee or the
trust his/her manager?
manager?
 the manager primarily acts Recommended: Trost, A. (2011). Wozu noch
Mitarbeitergespräche?
like a coach and not like a http://www.harvardbusinessmanager.de/blogs/artikel
judge? /a-809396.html

Performance – simplified
Freedom
allow × Capability
can × Motivation
want
 Time, Budget  Knowledge  Added Value

 Tools  Experience  Challenge
 Material  Predisposition  Appreciation
 Colleagues  Health  Self-Actualization
 Organization  Resilience  Purpose
 Autonomy

Learning-Curve
Performance Level
Maximum
Potential
Age

Potential Criteria
Performance
In the past did the

employee demonstrate an
extraordinary growth in
his/her ability to meet
challenges?
Motivation
Personality Is the employee eager

and hungry to take over
Based on his/her more responsibility
character will the relevant to the entire
employee have a chance organization?
to be seen as a role
model by others?

Performance Potential Grid
A1 A2
High Plan next move Apply multiple
Provide extra development and
C1 coaching retention measures
Performance
Improvement
Measures A3
Potential Identify next
development
opportunity
B
Keep in Place
Low C2
Manage Out
Low Performance High
Source: Michaels. E, Handfield-Jones, H., & Axelrod, B. (2001). The War for
Talent. Boston/Mass.: Harvard Business School Press.

Talent Review Structure
L1
Leadership Team
L2
HR Business Partner
L3
L4
High Potential

360-Degree-Feedback
 A focus person is evaluated

from different perspectives
Direct
(outside perception)
Supervisor
 A focus person evaluates
him/herself (self perception)
 Evaluation happens
anonymously, in written by
Peers Focus-
Customers using standardized and
person
structured methods (e.g.
questionnaire)
 The focus person gets a
personal report to be
discussed with his/her direct
Subordinate
supervisor or a coach
 Purpose is to determine a
focus person‘s development
needs

Careers as Managers versus Expert
 More responsibility for people

and budgets
 Career moves up the

hierarchical ladder
 More task complexity
 Deepen professional
knowledge within a narrowly-
defined field
 No responsibility for people
 Internal consultant for top-level

executives

Dual Career Path/Ladders
Management Expert
Executive Fellow
 Comparable salary based

Senior
Division Head
Consultant
on a corresponding base
pay structure
 Comparable value of
Department Head Consultant privileges (e.g. company
car)
 Active involvement in
Teamlead Junior Expert decision processes on
comparable level
 Comparable social
Employee without leadership responsibilies acknowledgement (e.g.
title)

A Study about what matters in long-term
Development
Job Assignments
1 Promote high performers quickly
2 Build skills to boost career prospects
3 Fast rotation and advancement
4 Roles with P&L responsibility
5 Special project opportunities
6 On-the-job training
Coaching Feedback
7 Told my strengths and weaknesses
8 360°feedback
9 Candid, insightful feedback
10 Informal coaching from boss
Mentoring
11 Great mentor
12 Great senior role models
13 Mentoring advice on development
Training
14 Traditional classroom training
Source: Michaels, E; Handfield-Jones, H; Axelrod, B. 2001,

The war for talent, Boston, Harvard Business School Press.

People who develop their Talent ...
 trully love what they do  got the opportunity to do

what they can do best
 know their real potential
 trust in a strong mentor
 have a vision about their
future position  are lucky
 jump into cold water  prefer to work with thoses
who compensate their
 actively build strong
weaknesses
networks
 get trained
 sell themselves
 showed early successes
 are disciplined – most of
the time  are well known
 prefer to work with A-
player

Talent Development Measures
Through Experience From Others Through Training
 Challenging  Mentoring  Off-the-Job-

tasks/projects Training
(Stretch Jobs)  Career Coaching
 Being a Trainer
 Job Rotation  360-Degree-
Feedback  Literature
 Internal Talent
Markets  Learn Forums
 Action Learning  Action Learning
70% 20% 10%

Mentoring
Benefits for the Mentor
 Building future supporter
 Learning from the bottom-line
 Professional insights across borders
 Appreciation
Benefits for the Mentee
 Access to networks and roles
 Professional feedback
 Confidence
Trust Commitment
 Role Model

Career Coaching
„
What are your talents?
„ „
What are your biggest
Who could support your future
strengths and
career development?
weaknesses?
„
„ „ What do you really
like to do?
What could be you
Which working
next, realistic career-
conditions are
move?
important to you?
„ To achieve your goals, „

which additional What is your ultimate
experience could help? career goal?

Stretch Jobs
Stretch Jobs HiPo
Which job is What can be Who fits

appropriate? learned? the job?
 Acceptable  Professionally  Mobility

turnover risk (Finance, HR, Marketing,
Sales,…)  Career
 Visibility preferences
 Intercultural
 Social and Sensitivity  Development
professional needs
 Leadership,
variety
Management  Private Situation
 Responsibility
 Strategy  Mentor
 Pressure
 Languages

Action Learning
Definition of strategic
... On top management level. Projects work for
learning projects &
sponsors
diverse teams and as good learning opportunities
Schedule, logistics, information about the

Identification and
program and its structure, professional
preparation of participant
preparation
Combination of training, workshops, project work

Program operation
and mentoring
... by experts, active involvement of responsible

Project evaluation
line representatives and external consultants
... once project ideas are seen as promising and

Follow-up/
doable. Relevant functions take over
project implementation
responsibility

Action Learning – Program Operation
Mentoring
Project Project Project

Training & Workshop
Training & Workshop
Training & Workshop
Training & Workshop
Final Presentation
Kickoff

Internal Talent-Market
Talents Jobs & Projects Rules
Experiences Requirements Notice Period

Projects Challenges Roles and views
Expectations Objectives Compensation
Preferences Conditions
References
HR Consultant
Source: Trost, A. & Frosch, M. (2011). Interne Talentmärkte. In A. Trost & T.

Jenewein (Hrsg.) Personalentwicklung 2.0, S. 283-301. Köln: Wolters Kluwer.

Key Terms
Leadership Development - Talentmanagement -

Competence - Competency Model - Job Profile -
Performance Management - Cascading - Objective Setting -
Performance Appraisal - Behaviorally Anchored Rating
Scale - Talent Review - Learning Curve - Potential - Talent -
Performance Potential Grid - 360-Degree-Feedback - Dual
Career Ladder - Career Path - Mentoring - Coaching -
Career Counselling - Stretch Job - Action Learning -
Internal Talent Market

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
HR Social HR
HR-IT

Main Questions
 What characterizes modern work and what will

be the future of work?
 In this particular context how do work-life-

balance and working hours matter?
 Can employee surveys help to improve working

conditions?
 How can a company strategically strengthen its

employer attractiveness?

Traditional Worktime Recording

76% of all good Ideas are generated outside the
original Workspace
Vacation, Travel Spare time,

13% Sport 9%
Misc. 1%
At
Workplace 4%
In interesting Nature,
Meetings 6% hiking 28%
In boring
Meetings 10%
Breaks 3%
At home,
watching TV,
Using creativity
Hobby, etc. 14%
techniques 1%
Business travel/
Way to office 11%
Source: Füglistaller, KMU-Magazin Nr.7/2005

Flexible Working Structures
Flexible
Working Hours
Flexible
Locations
Flexible Organization

Dimensions of a Working Hours Model
Distribution
Time
08-09 Volume
09-10
10-11
11-12
12-01
Duration/
Position
02-03
03-04
04-05
Flexibility
05-06
06-07
Mo Tu We Th Fr

Relevant Factors determine Working Hours Model
Industry/
Country
Labour
Law
Job Requirements
Working
Individual Employees,
Hours
Preferences Values
Model
Leadership
Culture

Working Hours Approaches
high
Trust-based Working Hours
Flexible Annual
Working Time
Flextime Job-Sharing
Working Time
Autonomy Flexible weekly Early
Working Hours Retirement
Part-Time German Long-Term

Work Kurzarbeit Accounts
Fixed Working Hours

low
Day .. Week.. Month .. Year .. Life
Timely Reference

Work-Life-Balance
„ Imagine life as a game in which you are
juggling five balls in the air. They are Work,
Family, Health, Friends and Spirit and you’re
keeping all of these in the air. You will soon
understand that Work is a rubber ball. If you
drop it, it will bounce back. But the other four
balls — Family, Health, Friends and Spirit – are
made of glass. If you drop one of these; they
will be irrevocably scuffed, marked, nicked,
damaged or even shattered. They will never be
the same. You must understand that and strive
for it. Work efficiently during office hours and
leave on time. Give the required time to your
family, friends and have proper rest. Value has
a value only if its value is valued.
Brian G. Dyson
Former CEO of Coca Cola

Individual Life Plans
10 20 30 40 50 60 70 80
Age
Learning Work Private

Phases of Life
Learn Grow Decide Lead Share
First
Growing Management Leading Coaching,
professional
Work
responsibility, responsibility, organizations, Mentoring,

experiences,
career, talent autonomy, new experience, close to
occupational
development orientation networks retirements
orientation
Family, divorce, Prosperity, Autonomy,

Private
Marriage,
Single, relation, own home, grown-up health,
familiy planning,
autonomy, party purchasing children, aging prosperity,
kids
power parents „Handicap“
Succession Coaching,
Onboarding,
Talent Flexible working planning, mentoring,
HRM
trainee
development, hours, change health
programs,
... ... management, management,
..
... ...

Home Office (Telework)
Pros Cons
 Reduced cost to the  Limited separation of

company private life and work
 Tax advantages for the  Limited social, informal
employee* connection to colleagues
 Worktime flexibility  Risk of private
 Work-Life-Balance disruptions
 Higher productivity at  Availability might not be
individual tasks transparent
* Depending on local tax law

Distance and Communication
Face-to-face
Communication
often
never
low Distance long

Spaces and Structures relate to each other
Source: DEGW
Non-territorial Workspace, Hoteling,
Rooms to concentrate or communicate
Source: DEGW
Survey Feedback & Organization Development
Planning
Implementation
Survey
Action
Planning
Analysis
Feedback

Conduct of a traditional Employee Survey
Project Planning & Feedback/Commun

Setup ication
Analysis &
Prestudy Action Planning
Reporting
Survey Survey
Implementation
Development Administration
Prior
Evaluation
Communication
Preparation Survey Follow-Up

Survey Development
Topics
Indicator
Questions
Adjustment
Pretest
Operation & Evaluation

Q12 (Gallup)
1. I know what is expected of 7. At work, my opinions seem

me at work to count
2. I have the materials and 8. The mission/purpose of my
equipment I need to do my company makes me feel my
work right job is important
3. At work, I have the 9. My associates (fellow
opportunity to do what I do employees) are committed to
best every day doing quality work
4. In the last seven days, I have 10. I have a best friend at work
received recognition and
praise for doing good work 11. In the last six months,
someone at work has talked
5. My supervisor, or someone to me about my progress
at work, seems to care about
me as a person 12. This last year, I have had
opportunities at work to learn
6. There is someone at work and grow
who encourages my
development

A Typical Way to Present Results
Frequencies (%)
I have the materials and equipment I need to strongly partly- dis- strongly
N Average agree
do my work right agree partly agree disagree
1 2 3 4 5
Sales Germany 35 35 36 36 29
29 45 2,92 12 23 36 19 10
Global Sales 48 28 24
48 28 24 287 2,63 19 29 28 18 6
Organization

Survey Results (Example)
1 1,5 2 2,5 3 3,5 4 4,5 5
1,7
Tasks and Duties 1,6
2
Work Environment 1,5 Region South-West
2,3 Germany
Empowerment 2,6
1,4
Colleagues 1,6
Direct Supervisor 2,3  Region South-West (32

2,1
Employees) is part of
2,8
Communication 2,8
Germany (186 Employees)
Work Flexibility 2,5  1 = Best possible result

2,4
5 = worst possible result
2
Work-Life-Balance 1,8
3,1
Compensation
3,2
2,5
Benefits
2,6
Commitment 1,7
1,8
2,8
Career Development
2,2

Ways to interpret Survey Results
Absolut Relative Longitudinal Target
Comparing items Comparing results Comparing results Comparing results

based on the with internal and with thoses of with targets set in
absolute results external previous surveys advance to the
Benchmarks survey

Follow-up Process
 All employees get all results of the survey even

when results are negative
 Feedback of results follows a top-down approach

from to top-management to every single team
 All teams get their own results compared to the

results of the superior organisational units
 All units on all levels are encouraged to work with

their results and come up with related action plans
 Issues which lay beyond an organizational unit‘s

responsibility will be passed on to the unit on the
next level

Shortcomings of traditional Employee Survey
Approaches
 Surveys are isolated events not integrated into

regular leadership processes
 Not every topic is relevant for everybody on every

hierarchy level
 Objectives are defined after the survey has been

conducted based on survey results. But, surveys
can‘t change priorities
 Required budgets for improvement activities are

not defined. Therefore planned actions lead to
minimal impact
 Comparison with benchmarks means taking

the mediocre as standard

Relevance of Results depend on Targets
Survey Potential Target
Potential Target Survey
According: Trost, A. & Hagmeister, A. (2005). Mitarbeiterbefragung als Instrument

strategischer Unternehmensführung. In W. Bungard & I. Jöns (Hrsg.),
Feedbackinstrumente im Unternehmen (S. 197-208). Wiesbaden: Gabler.

Positioning different Feedback Instruments
Instrument Who What Why For whom
Traditional Employees,
Improvement,
Employee Survey All Employees Job Satisfaction Manager,
Involvement
(Survey Feedback) Management
Status
Theme-oriented Selected
Selected topics Monitoring, Management
Employee Survey Employees
Feedback
Strategy Monitoring
Random
Pulse Survey commitment, strategy Management
Sample
capabilities execution
Manager,
360-Degree- Employees, Development
Management Management
Feedback, Manager,
behavior,
Management Peers,
competence
Evaluation Customers Selection Management, HR
Internal Customer Internal Service Internal Service

Service quality
Survey Customers improvement Provider

Traditional Employee Survey versus Pulse Survey
Traditional
Pulse Survey
Employee Survey
Content  Factors driving employees‘  Content is relevant to the

satisfaction and company‘s competitive
performance position
Customer  Employees, Manager,  Management
Management
Follow-Up  Units on all levels are  Results are natural part of top-
encouraged to work with management agenda and
results and draw conclusions decision making
Objectives  Objectives are set after the  Objectives are set in advance
survey of the survey
Cycle  Every 1-5 years  1-12 times/year
Participants  All employees  Random Sample

High-Potentials

Employer A
„ As a key component of our employer-of-choice strategy,

we communicate to potential employees that this is a
great place to work. We offer a positive work climate,
rich career-opportunities and competitive benefit-
packages. We are proud that we have won a number of
awards and rank high in most of currently existing
employer-rankings. As a result, our applications are up
and turnover is down across the firm.“

Employer B
„ The last thing we want to be is an „employer of choice“.

All that does is dramatically increase the number of
unqualified or marginal applicants, which increase both
the probability of selection errors and cost-per-hire. Our
strategy is to hire choice employees or to seek the
market-place by having them self-selected even before
they apply. We want all applicants to understand that
this is a demanding, high-performing organization. To
achieve this, we try to communicate in every possible
interaction that this is a place that values talent and
exceptional effort. For those employees, we provide
exceptional rewards and career opportunities. We
cannot be everything to everyone, and we do not want
to be.“

Improving Employer Attractiveness
Target Group Competitors‘ Areas to

Potential
Preferences strengths improve
A A
B B B
C C
D D D
E E E
realistic relevant special

Key Terms
Worktime Recording - Flexible Working Structures -

Working Hours Model - Working Time Autonomy - Trust-
Based Working Hours - Flextime - Part-time Work - German
Kurzarbeit - Long-term Accounts - Job-Sharing - Work-Life-
Balance - Homeoffice (Telework) - Age-oriented Personnel
Policy - Hoteling - Non-territorial Workspace - Employee
Survey - Survey Feedback - Organizational Development -
Gallup's Q12 - Follow-up Processes - Pulse Survey -
Employer Attractiveness

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
HR Social HR
HR-IT

Main Questions
 What is relevant and voluntary turnover and what

are related turnover costs?
 How can the risk of voluntary turnover be

estimated?
 How and why do employees leave voluntarily?
 What are major components of a retention

strategy?
 Which measures help to effectively retain talent?

Common Views
 People who join for money leave for money

 People join companies and leave bosses
 You don‘t need to care about retention if you do
well with all the rest
 Employees are free, which is fine
 At the end of the day retention is all about
leadership
 Losing an employee leads to costs 1-2 times of
his/her annual salary
 The strongest are the first to leave the company
 Happy employees prefer to stay
 To a certain extent turnover is good

Turnover
 Turnover  Involuntary Turnover

The process in which Turnover initiated by the
employees leave the organization (often among
organization and have to be people who would prefer to
replaced stay)
 Voluntary Turnover  Early Turnover

Turnover initiated by Voluntary Turnover during
employees against the wish the first few weeks/months
of the company of employment
 Turnover Rate
Number of Employees leaving the Company in a Year
 100%
Number of Employees at Midyear

Turnover-Performance-Relation
Turnover
Average
Low Middle High
Performance
According to: William and Livingstone (1994). Another look at the

relationship between performacne and voluntary turnover.
Academy of Management Journal, 37, 269-298.

Differentiated Turnover Rate
High Performer/
High-Potentials ?
Others
Key
Non-Key-Functions
Functions

Turnover Cost
Training
Onboarding
Hiring
Visible („Direct“) Cost Selection
Marketing
Vacancy Lost
Separation Productivity of
Other Employees
Learning
Curve of
Hidden („Indirect“) Cost Lost New Hire
Productivity of
Other Employees
Lost
Productivity of
Lost Vacant Position
Productivity of
Other Employees
Lost
Productivity
of Incumbant
Pre-Departure Vacancy Introduction
Employee Leaves New Employee New Employee

Hired Fully Effective
Source: Corporate Leadership Council (1998). Employee Retention. Washington: The Corporate Executive Board.
Fictitious Cost Estimation
Annual Salary
60.000 € Assumptions
of an employee
Cost per Hire 6.000 € 10% of annual salary
Onboarding (off-the-job) 12.000 € 20% of annual salary
Loss of Motivation 50% less performance in the last 3

7.500 €
(former employee) months of employment
Productivity Losses 10% less performance of 5 colleagues

10.000 €
(colleagues) (similar salary) during 4 months
Performance deficit 50% less performance in the first 6

15.000 €
(new employee) months of employment
No value creation for 2 months due to

Opportunity Costs 10.000 €
vacant position
Σ 60.500 €

Turnover Cost
Tunover cost ranges as a percentage of annual salary

0 50 100 150 200 250 300 350 400 450
Entry Level
Service/Production Workers
Skilled Hourly Range
Clerical/Administrative
Professional
Technical
Engineers
Specialists
Supervisor/Team Leader
Middle Managers
Source: Managing Talent Retention: An ROI Approach

by Jack J. Phillips and Lisa Edwards (2008)

Individual Risk Analysis
major
Keneth Keith Carlson Garth McGrath
Mark Myer John Shark
Kelley Clark
Impact Tom Scott Rock Stewart
Paul Paulson Susan Power
Linda Anderson
Russ Rothen
Pete Peters
Paul Cummings
minimal
possible Likelihood likely

of Turnover

Individual Indicator of Intention to Leave
 Sudden performance drop
 Frequent short-term absence
 Reduced social interaction and isolation
 Frequent complaints
 Glorify other companies
 Reduced willingness to take over responsibility
 Pessimism about future perspective

Top-Management View on Retention
Source: The Economist Intelligence Unit 2008

(Responses of 1.000 executives around the
globe). The original question was: Which of the
following factors are most likely to hinder your
company’s ability to retain talented employees
over the next three years? Select up to three
(Answers in %)
Marienthal. The Sociography of an Unemployed
Community. Jahoda (1933)
Source: Archiv für die Geschichte der Soziologie in Österreich
Source: Jahoda, M., Lazarsfeld, P. F, Zeisel, H. (1933). Die Arbeitslosen von Marienthal. Ein
soziographischer Versuch über die Wirkungen langandauernder Arbeitslosigkeit. Hirzel.

The Psychological Contract
Employer provides Employee provides
 Salary  Performance
 Benefits  Creativity
 Social contacts  Capabilities
 Tasks  Knowledge
 Training  Talent
 Image  Energy
 Identity  Time
 Security  Health
 Values  Social Networks
 Perspective  Customers

Relative Job Evaluation
better Relevance
Copmany Image
Perspective
high
Location
W-L-B
middle
Difference
alternative Job Tasks
compared to
current Job Salary
low
Boss
Peers
Security
similar/
worse
low Certainty high
of Value of alternative Jobs

Rational Decison Making
Value (V)
Vchange
Vact Valt Intention to Leave

= Valt – Vact - Vchange
Current Alternative Cost of Intention

Job Job Change to Leave

Turnover Decision Style
high
Solution Strategy
Elaboration
low Escape Job-Hopping
current future
Situation Situation
Driver

Exit-Interview
Example: Intel
 What was the main reason that you decided  Pay

to leave?  Benefits
 Is your new position in a different line of work  Location
than the one you where in while at Intel?
 Working Conditions
 How would you characterize your new
 Job Security
employer?
 Career Opportunities
 Would you say your new employer is better
than Intel, about the same as Intel, or not as  Product Quality
good as Intel in terms of:  Co-workers
 How would you descibe your relationship with
 Company Leadership
your manager while you where at Intel?
 Company Image
 How would you describe your experience with
Intel?
 If a friend approached you and told you
he/she was looking for a similar position at
Intel, how likely would you be recommend
Intel?
 Any other comments about Intel or you new
position?

Multiple Regression Analysis
Salary X1
W/L-Balance X2
Perspective X3
Intention
Peers X4 Y
to Leave
Training X5
Tasks X6
Security X7
Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + β7X7 + ε

Components of a Retention Strategy
 What is the relevant internal target group?

Target Group E.g. particular Units, Jobs, Countries, (Key) Functions,
High-Potentials, Managers
 What are related turnover costs?

Problem General and differentiated? Which kinds of costs are
generated?
 Why do employees leave the company?

Causes What are the internal and external factors and reasons for
leaving?
 Anticipating turnover and related impact

Risks How big is the likelihood of employees leaving the company
and what are related consequences?
 How can employees be retained?

Measures Which options are there to effectively retain employees?

Where is the Problem?
Employees with a strong intention to leave
Employees without intention to leave

Levels of a Retention Strategy
Causes Risks Measures
Employee Survey Improving Employer

Differentiated Attractiveness
Organization Exit-Interview
Turnover Rate E.g. Internal Talent Market,
Regression Analysis Flexible Working Hours
Development,
Management Current and previous Selection, Coaching,
Manager
Evaluation Turnover Rate Replacement,
Objective Setting
Performance Individual Risk New projects, new

Management, Analysis, Performance tasks and colleagues,
Employee
Turnover Decision Management salary adjustmenet,
Styles Intention to Leave more flexibility

Key Terms
Turnover Rate (differentiated) - Voluntary versus

involuntary Turnover - Visible/hidden Turnover Costs -
Opportunity Costs - Individual Turnover Risk - Turnover
Risk Analysis - Intention to leave - Relative Job Evaluation -
Marienthal-Study - Psychological Contract - Turnover
Decision Styles - Job-Hobbing - Exit Interview - Multiple
Regression Analysis - Employee Commitment - Retention
Management

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
HR Social HR
HR-IT

Main Questions
 What is meant by a change and what are major

types of changes in organizations?
 Why and how do changes often lead to

dysfunctional human reactions?
 How can employees be led throgh changes by

applying change management measures?
 Which conditions are required to effectively

manage change?

Types of Changes in Organizationen
Re- Re- Mergers & Strategy Cultural

structuring engineering Acquisition Change Change
Changing Changing Changing the Changing Changing

organizational processes, the identities of priorities, values,
structures and way work is organizations ultimate attitudes and
reporting lines done direction and behavior
purposes
+ =

Organizational Structure
based on Functions of Products
Executive Executive
Board Board
Marketing Production Sales PC Printer
PC Printer PC Printer PC Printer M P S M P S
Functions Products

Two Leadership Cultures
We want our people to behave People need structure and

like adults. That‘s why we treat guidance. That‘s why our leaders
them that way. Each employee is will never stop telling our
responsible for what he/she employees as clearly as possible
decides. We believe in our what‘s expected from them.
people‘s own initiative to Control is better than trust.
contribute to our company‘s Organizations need rules. And
success -- everybody at his/her rules always need somebody
place. We do everything to avoid who takes care for them. Nobody
static structures, order or control. wants to suffer from corporate
We simply don‘t need it. chaos.

Human Response to disruptive Changes
Emotional
Response Anger
Acceptance
active
Bargaining
Stability
Denial Testing
Immobilization
Depression
passive
Time
According to: Kübler-Ross: On Death and Dying (1967)

Resistance
 Resistance is a natural human reaction to

disruptive events (fear of losing control)
 Change is seen by different people differently
according to their individual frames of reference
 Resistant employees are often seen as non-
rationally thinking troublemakers
 Resistance of informal opinion leaders are of
greater power than those of formal leaders
 There is always a mixture of overt and hidden
resistance. Overt resistance should be a valuable
aspect of any change process
 Active involvement is propably the best way to
deal with resistance

Reactions to positive Changes, for which the
individual is responsible
Pessimism
Level of Tolerance
Informed Pessimism
Hopeful Realism
Checking
Out (?)
Informed Optimism
Uninformed
Optimism (Naivité) Completion
Time
Source: Conner, D. R. (2006). Managing at the Speed of Change. Random House

Why Transformation Efforts Fail
John Kotter, 1995
1. Establishing a Sense 5. Empowering broad-

of Urgency based Action
2. Creating the Guiding 6. Generating

Coalition Short-Term Wins
3. Developing a Vision 7. Consolidating Gains &

and Strategy Producing More Change
4. Communicating the 8. Anchoring New

Change Vision Approaches in the
Culture
Source: Kotter, J. (1995). Leading Change: Why transformation efforts

fail. Harvard Business Review. March-April 1995, pp. 61-67.

Sources of Complacency
Too much happy talk

from senior
Human nature, with its management A kill-the-messenger-
capacity for denial, of-bad-news, low-
especially if people are confrontation culture
already busy or stressed
The absence of a Too many

major and visible visible
Complacency resources
crisis
Organizational structures
Low overall that focus employees on
performance narrow functional goals
standards
Internal measurement
A lack of sufficient systems that focus on
performance feedback the wrong performance
from external sources indexes
According: Kotter. J. (1996): Leading Change. Harvard Business School Press

Change Management Framework
Environment Action Fields

Initialization
Sponsorship/ Change
Commitment Scope, Objectives Analysis
& Vision
Program
Setup & Communication
organization
Principles
Planning & Training &

Design Support
Control
HRM Change
Involvement
Integration
Stabilization

Dilemmas require Guiding Principles
Prevent
We don't do losses We avoid too
things by much noise
halves
Addressing
80/20: Focus on problems
what really
matters Avoid
additional
costs
We take along
all people Speed matters
We avoid any Quality: doing

irritation things right
We endure
pain

Change Analysis
Situation Situation Chances/F Training

Target Group Risks
before after ears Needs

Stakeholder-Analysis
„Pain-Power-Analysis“
strong
Opponent
D
A
Supporter
B
 Promoter
Power  Influencer
 Decider
 Multiplier
C
weak  Patient
less Impact much
„Pain“

Top Management Sponsorship/Commitment
Level of Support
Commitment
Investment
Sponsorship/
Commitment
Convincement
Acceptance
Acceptance
Understanding
Listening Attention
Time
No Idea
Ignorance
According: Conner, D. R. (2006). Managing at the Speed of Change. Random House

Roles
Program Organization Target Group
Sponsor
Steering Group SB
CA FK
MA
MA
Project Team Project Lead
CA FK
SB
Change
Agent
CA
Consulting
Team Project Lead
SB
Partner SB
Sounding Board

Roles in a Change Program 1/2
 Sponsors
– Have the power to sanction and legitimize change and
to make decisions about change
– Create an environment that enables change to be
made on time and within budget
– The sponsors make up the steering group
 Change Agents
– Responsible for making the change happen on an
operational local level
– They directly deal with employees and managers,
who are impacted by the change (targets)
 Target
– The group who must actually change attitudes and
behaviour

Roles in a Change Program 2/2
 Project Team
– Operationally drives the entire change program
– The project team is led by the project leader, who is
responsible for the overall success of the program
– The project team reports to the steering group
 Sounding Board
– Key-players with a good sense of the company‘s culture and
the actual mindset of the employees
– Provide feedback to the project team about acceptance and
resistance on side of the target
 External Advisors
– Give advice to the project team from a neutral standpoint

Corporate Communication Channels and
Activities
Available Media
 Employee Newspaper  Intranet, Social Media

 E-Mail Newsletter (with forums and
(Meassage from the CEO) chatrooms)
 Intranet  Department Meetings
One-direction
(with F&Qs)
 Individual employee
Interactive
 Town Hall Meeting meetings
 Broschures  Open Space Events

 Posters  „Ask-the-CEO“-Meetings
 Videos, webcasts  Workshops, Conferences
 PPT-Presentations  Hotline
 Social Media
New Media

Dimensions of a Communication Plan
 When to inform?  What will be the

content, main
 Who will inform, send message?
the message (CEO,
Manager, Project  Why is it relevant?
Leader)? What should be
achieved with the
 How will be informed, message?
which media will be
used?  Whom to inform,
which target group?

Communication Plan
Example
When Who How What Why Whom
Invitation to All
March 1 CEO Mail Manager Meeting
Save the Date
Managers
All Dept. Objectives of Announcement All

March 12 Managers Change Open Space Employees
Meeting
Project Agenda, Open Clarity about All

March 18 Intranet Space Schedule Open Space Employees
Lead
Manager role at Manager All

March 20 CEO Mail Open Space Briefing Managers

Communication Dilemma
Early
Communication ? Late
Communication
High
Need for Information
and Planning
Knowledge,
Certainty
Low
Time, Progress

Involvement Strategies
high Active Role

in the
Project
Individual
Focus
Measures
Groups/Works
hops
Intensity
Sounding
Board
Open Space
Social
Media
Employee
Survey
low
limited Reach broad

Open Space – Impressions
Haniel/Metro 2009
MLP 2012
The Idea Factory
Brainstore

Key Terms
Change - Change Management - Re-enigneering -

Restructuring - Product- versus functionoriented Organization
- Merger & Acquisition - Culture Change - Leadership Culture -
Strategic Change - Change Curve - Resistance (overt/hidden) -
Locus of Control - Informal Thought/Opinion Leader -
Uninformed optimism - Sense of Urgency - Quick (Short-term)
Win - Vision - Change Analysis - Change Management Principle
- Stakeholder - Stakeholder Analysis - Management
Sponsorship - Sponsor - Steering Committee - Change Agent -
Sounding Board - Communication - Communication Dilemma -
Communication Strategy - Training - Stakeholder Involvement -
Focus Group - Open Space Event

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
HR Social HR
HR-IT

Main Questions
 What are central and local responsibilities in an

international HR organization?
 How are responsibilities of an HR department

changing?
 What are major roles/areas in a modern HR

organization?

Global Organization
Headquarter
Regional Headquarter
Subsidiary

Variety of International Organizations
International Multinational
Headquarter as ethnocentric, Local differentiation as

strategic and cultural center. guiding principle. Subsidiaries
Resources are transferred from act autonomously in order to
Headquarter to local units. meet local need.
Global Transnational
The world is seen as one single For all relevant processes the
market. Operations are right balance between local
controlled centrally from the differentiation and global
corporate office in order to integration is achieved .
achieve global integration.
Source: Bartlett, C.A. & Ghoshal, S. (2002). Managing Across Borders. Harvard Business School Press.

Balance in a transnational Approach
global
Employer Branding
Career
website
Executive HR-IT
Compensation
Employee
Referral
Program
Global
Integration Talent Campus
management Recruiting
Office Candidate
Training Selection
Training
local
Local Differentiation

From traditional to future HR
Strategy
Consulting
Support
Administration
Traditional HR Future HR

The 4 Ps of HR
Critical role in helping to

Player develop any business
strategy
HR professionals helping the business

Partner lines solve their human issues
The protectors of company

Police policies and procedures
The politest people in the

Polite company
Source: Les Hayman (2010). http://leshayman.wordpress.com/2010/08/26/hr-polite-to-police-to-partner-to-player/

The Dave Ulrich HR Role Model
Strategy
Strategic Partner Change Agent

Defining and Creating a renewed
executing strategy organization
Processes
People
Administrative Employee Champion
Expert
Increasing employee
Building an efficient commitment and
infrastructure capability
Operation
Source: Ulrich, D (1997(: Human Resource Champions.
Harvard Business School Press.
HR Business Partner Responsibilities
 Provide HR consultation, policy interpretation,
and strategic planning to all levels of client
organization.
 Manage HR projects and program
implementation for Public Policy, Law, &
Security and Strategy, Development, &
Planning organizations.
 Responsible for providing Human Resources
support in the areas of ethics, compliance,
EEO, compensation planning, performance
* management, talent management, headcount

management, leadership development,
staffing, absence management, employee
relations, and labor relations.
 Ability to influence without direct authority.
 Provide analysis of data and monitor HR
results through key metrics. Develop and
communicate status of key initiatives with HR
reports.

Managing Queries
Intranet
Q&A
Call-Center,
Virtual HR Service HR Expert,
Assistent Center HR Business HR Director
(shared) Partner
ESS
Hotline
Yellow
Page
70 % 20 % 5% 5%
100% 30 % 10 % 5% 0%

Decentralized Recruiting Organization
HR Application
Marketing management
Definition of Target
Profile Preselection Application
Unit
A Data Base
Introduction Assessment
Job Offer Job Offer

Preparation Negotiation
Applicant
HR Application
Marketing management
Preselection
Profile Unit Application
B Data Base
Job Offer Job Offer

Preparation Negotiation

Selecting Tasks to be handled by a Shared
Service Center
close
Assessment
Introduction
Job Offer
Negotiation
Job Offer
Close to
Preparation Preselection
Applicant
Application
management Definition of
HR Target Profile
Marketing
far
high Standardization low

Integrated Recruiting Organization with
centralized e-Recruiting Technology
Profile Unit
A
Job Offer Negotiation HR Application

marketing management
Pre-
Shared
Applicant e-Recruiting Recruiting
Selection
Center
Job Offer
Preparation
Profile Unit
B
Job Offer Negotiation

Three Pillar Model of modern HR-Organization
Central Coordination
HR Business Partner Center of Expertise

Customers
near to business company wide
Individual support of
Dealing with complex HR-
Managers managers on HR-
related Issues
related topics
Shared Service Center

IT
company wide
Employees Hotline
Delivery of standardized and regularly
Applicants ESS demanded services to all employees with
high volume (e.g. payroll)
MSS
Partner-/Supplier Management

Outsourcing, Onshoring, Offshoring
multi-client
Offshore
Outsourcing
Scope of Service Delivery
single-client
Onshore
Outsourcing
internal
Shared
Onshoring Service Offshoring
Center
near/ close far

home
Cultural/regional Distance

Prioritizing Tasks to be outsourced
high Strategic
Employer Branding
Performance
Relevance
(EVP)
Management
Trainee- high
Programs
Top-Management
Placements
Specificity of middle
Expatriation
Requirements Recruiting for
Exit-
Interviews Non-Key Functions low
Payroll Onboarding
MS Office Trainings
Pension
low
less Internal Competence more
compared to external service provider

Reasons why Companies outsource
Focus Quality Costs Flexibility
Focus on company‘s External service Leveraging Demand for services

core competencies providers are long- economies of scale, depends on actual
and on ultimate term experts in their competition against needs
purpose of the field and compete other service
organization against other service providers, purchasing
providers power of client

Key Terms
Global Integration - Local Differentiation - Global HR

Organization - International HR Organization - Multinational
HR Organization - Transnational HR Organization - HR
Target Role Model - HR Business Partner - Virtual Assistant
- Shared Service Center - Center of Expertise - Three Pillar
Model of modern HR Organization - Outsourcing -
Onshoring - Offshoring

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
HR Social HR
HR-IT

Main Questions
 What are major IT-solutions in HR?
 What is the difference between expert-systems

and user-systems?
 What are major functionalities of HR IT-solutions

in fields like recruiting or learning?
 What are future trends in HR-IT?

HR-Software Provider

The Solution of Workday

Expert-System

Typical Solutions of Expert- and User-Systems
Administration Value Creation

Standardized processing Creative usage
Automatization Personal judgements
Reliable results Fuzzy output
Employees*  Master Data  Skill-Maintenance

Rare usage Maintenance  360-Degree-Feedback
Event-triggered  Leave Request  Performance Appr.
No training efforts  Course Booking  Application
 Time Record  Online-Training
Experts (HR)  Payroll  Intern Talent Pools

Frequent usage  Pre-Selection  Succession Planning
Limited to intense
 Training Admin.  Talent Review
training efforts
 Internal Mobility  Course Development
 Interview planning  Job Posting
* Employees, Manager, Applicants etc.

Screenshot „Abwesenheitsmitteilung“

Roles and Activities as Part of a Recruiting-
Process ...
Applicant
Application
Recruiter
Pre- Work
Job Posting Interview
Selection Contract
Manager
Vacancy Pre-
Selection Onboarding
Request Selection
Systems
Related
Organisations Online- Competence Payroll

Management Jobboard Management

... and how they appear on the Screen
Cornerstone
SuccessFactors

Learning Management System (e-Learning)
Learner Portal LMS CMS External

personalized & Learning Management Content Management Content
intranet-based System System
Qualifications Training Learning Literature

Administration Content Databases
Generation
Role
Learning
Strategies Relevant
Embedding Websites
external
Personalized
Profile-Matching Content
Training Offers
Communities of
Formal Practice
Tests & Standards
Learning History Certificates
Authorization
Analytics
Collaboration
Authorization & Company

Tests Accounting Information

Hype Cycle for Human Capital Management
Software (Gartner, 2012)

Trends
Bring your
Social Mobile Cloud Big Data
own Device
Employees use Solutions support Data usage and IT Resources Smart usage of
their private and collaboration and maintenance such as software, mostly
most preferred communication at anywhere at storage space that unstructurred, fast
devices and work anytime. are delivered as a changing data of
systems at work services over a very high volume
(e.g. Handy, Laptop, Interfaces to Availability of network (internet)
Mail-Systems) Social Media systems on
Plattforms (e.g. smartphones and
LinkedIn, Xing) tablets.

Key Terms
HR Information System - User-System - Expert System -

Usability - Employee Self Service (ESS) - Administration
versus Value Creation - e-Recruiting - Learning
Management System (LMS) - Mobile HR - Gartner Hype
Cycle - Bring your own Device - Cloud Computing - Big
Data

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
HR Social HR
HR-IT

Main Questions
 How are both the role of the users and the

markets affected by Web 2.0 and social media?
 What are practical examples of social media

usage in the field of HRM?
 How can social media be implemented and what

are different types of social media usage?
 What are relevant conditions for effective social

media implementation and usage?

From Web 1.0 to Web 2.0
Web 1.0 Web 2.0
www....com www....com
Publisher Content Consumer Content Prosumer

Social Media
www....com
A A
B B
C C
User profiles, Content & Relations

Google PageRank versus Social Bookmarks
 The more links refer to a

D C A website the higher is its
Google PageRank
 The Google-Algorithm
F takes into account the
PageRank of the
E B referring sites
Social Bookmarking. The relative importance of a

website depends on the number of people who like it.

Forrester‘s seven overlapping Levels of
Social Technology Participation
2013
Source: http://empowered.forrester.com/tool_consumer.html

Cluetrain Manifesto (1999)
Selected Theses (10 of 95)
 Markets are conversations  We are waking up and linking

to each other. We are
 In both internetworked
watching. But we are not
markets and among
waiting
intranetworked employees,
people are speaking to each  But first, they must belong to
other in a powerful new way a community
 Companies can now  Markets do not want to talk to
communicate with their flacks and hucksters. They
markets directly. If they blow want to participate in the
it, it could be their last chance conversations going on
behind the corporate firewall
 To speak with a human voice,
companies must share the  You're too busy "doing
concerns of their business" to answer our
communities. email? Oh gosh, sorry, gee,
we'll come back later. Maybe.
 We know some people from
your company. They're pretty  There are no secrets ...
cool online ...
Source: Rick Levine, Christopher Locke, Doc Searls: Das Cluetrain Manifest. Econ Verlag 2002
Siehe auch: www.cluetrain.com/

Social Media are faster and more targeted than
any traditional Media
Journalist Editor Medium

Incident
Journalist Interview Draft Article Reader
Time
Incident
Victim Tweet Follower Follower‘
Time

Democratization of
Human Resource Management?
 Employers are evaluated by  Employees and candidates

current and former decide what‘s good or bad
employees and applicants
 Teacher and learner become
 User share image-videos and the same -- users produce
job ads – the good and the and share knowledge content
bad ones
 Users who share similar
 Everybody can act as a interests communicate,
headhunter – and earn collaborate and learn in
money virtual communities
 Candidates are present in the  Current and former
web and passively wait for employees evaluate each
employers to approach them other
 Interviewers, future  People share their thoughts
colleagues and managers are about strategic corporate
googled by candidates changes

Social Media/Web 2.0 in Talent Acquisition
Employer Outside Career Job- Inter- Talent Candidate
Branding View Infos Posting action Search Retention
Blogs
Forums

Social Media Roadmap
Check &
Targets Listen Do it
Develop
Target group Involve and Definition & action Constantly check

definition (whom understand target on Social Media effects of social
to reach) group Activities media activities
Setting social Consider internal Defining a social Set priorities and
media objectives conditions media policy develop selected
(what to achieve) social media
activities

Cases
Four trainess in a regional bank regularly post

events and informal affairs on Facebook. To
plan their activities they run a weekly editorial
meeting. By doing so, the trainees try to reach
pupils and raise the pupil's interest in an
apprenticeship at the bank. Moreover they
already build some relations to future
potential trainees (Fans). The four trainess
received an iPhone for free, which they can
even use for private purposes. They defined a
social media policy by their own with
supervision from the bank.

Cases
In an internationally operating accounting firm all employees were

encouraged to produce videos about their company. All videos
were then posted on an internal plattform where all employees
were asked to vote for the best ones, which then were presented
on YouTube. The ultimate objective of this initiative was to present
an authentic picture of the company to the outside world and to
attract potential candidates.

Cases
Employees of an internationally operating company in the

telecommunication industry gave HR access to their LinkedIn-
profiles. Once there is an attractive applicant, his/her relation to
current employees is checked and -- if possible -- HR tries to seek
internal references. The ones who deliver references are then
asked to name further candidates in his/her social network who
might fit to the profile in question just as you would do in an
employee referral program.

Cases
A german provider of financial software

got rid of the regular employee survey.
They ask their employees to rate the
company on kununu* instead. Each
quarter, all comments, traffic-indicators
and results are reported and discussed
by the executive board.
* www.kununu.com. Glassdoor is a similar website on an

international basis (www.glassdoor.com)

Cases
On a simple, internal platform all employees of an internationally

operating company in the computer gaming industry are
encouraged to assign up to ten points to colleagues they
successfully worked with. The amount of points an employee gets
by the end of the year determines his/her variable pay.

Cases
A german gymn-franchiser runs an employee manual in the form

of an internal wiki. This manual describes how to deal with typical
daily problems. All employees are free to include new rules, edit
existing ones and make comments. At the end the consensus
among the employees always decides upon what's valid or not.
Only what's currently written in the manual counts. The executive
board is not empowered to impact the content of this wiki. Once
the executive board intents to change something they must bring
in their succestions just like every employee can do.

Cases
In a midsize insurance company employees

are encouraged to post succestions on an
internal plattform. All employees have the
same budget of 500 Euros which they can
assign to suggestions they prefer. The one
who brought in a suggestion always gets 10%
of the total budget assigned to his/her idea.

Cases
At a globally leading car manufacturer 200 exclusively selected

employees write blogs about their daily work-life. These
employees are absolutely free in what they write and how they
write. The intention is to provide authentic and appealing insights
into the daily life of this company and to attract potential
candidates. The traffic of all blog entries is constantly tracked,
which enables the company to communicate a real-time ranking-
list of all entries and bloggers. As a result all bloggers compete
against each other in reaching the top of the list.

Cases
At a globally leading provider of HR-software both employees and

clients are encouraged to post product proposals on a dedicated
plattform, which in turn are commented and evaluated by
employees and clients. A core product planning committee then
prioritizes all proposals by taking into account all evaluations and
comments on a regular basis. Decisions are always
communicated on the same platform. Those clients, who are
engaged the most are invited to an annual client roundtable.

Social Network Analysis
Nodes –
Relations – Density – Centrality –
Cliques – Cluster (Community) – Stars

Ways of Social Media Usage
Uncontrolled passive Central Delegated

Communication Communication Communication
Some employees actively Social media is seen as just Internal target group
use social media and another channel to centrally representatives are
possibly communicate work- communicate official privileged to communicate
related content content in a one-to-many work-related content within
direction clearly defined borders

Ways of Social Media Usage
Peripheral Peripheral Strategic

Communication Connection Connection
All employees communicate Employees are encouraged Internal and external

about daily informal affairs to network both internally networks are strategically
and events within clearly and externally and to built and used
defined borders (rules) communicate informal and
work-related content

Conditions determine the Type of Social Media
Usage
 To what degree does the executive board impact

social media usage inside the company?
 Which chances and risks are seen by the

executive board related to social media usage?
 Is the company culture driven by openness and

trust?
 Is there a natural affinity and activity towards

social media among the employees and the
company‘s social environment?
 Are there any real opportunities related to social

media usage?

Typical Content of Social Media Policies
 Do not communicate any sensitive,

business-related information
 Everyone is legally responsible for his/her

comments
 Conflicts among employees should be

resolved off-line
 If a member of the media contacts you

contact our public relation department
 Respect copyrights
 Be authentic and always demonstrate

respect, trust and honesty

Key Terms
Web 2.0 - Prosumer - Social Media - Enterprise 2.0 - Google

PageRank - Social Bookmark - Forrester's Level - Cluetrain
Manifesto - Democratization - Shitstorm - Career Fanpage
(Facebook) - Kununu - Blog - LinkedIn/Xing - Tweet/Retweet
- Twitter - Social Media Roadmap - Wiki - Social Network
Analysis - Node - Relation - Density - Centrality - Clique -
Cluster (Community) - Star - Ways of Social Media Usage -
Social Media Policy

HRM Landscape
HR-
Strategy &
Planning
Talent
Development
Change
Management
Learning
Talent
Acquisition Work
Retention
HR Social HR
HR-IT

Main Questions
 Why and how are indicator systems used in HR

and what are typical examples?
 How are indicators defined and implemented?
 What is the added value of employees and how

can it be estimated?
 Is it possible to estimate the ROI of large-scale

investments in Human Resource Management?

Control Loop
Target
Corrective Target/Actual
Actions Deviation
Causes
Analysis

Selected Indicators in HRM
HR Marketing & Recruiting Training & Development Retention
 Employer ranking  Days of training/employee  Turnover rate

 Number of applications  High-Potential rate (general, differentiated)
 Cost per hire  Average time on current  Tenure
 Time to fill level (HiPos)  Employee commitment
 Early turnover (during  Internal placement rate  Reasons for leaving

probation period)  Trainee rate
Workforce/Organization Compensation & Benefits Performance & Productivity
 Average age  Labor costs/total costs  Revenue/employee

 Female/male ratio  Labor costs/employee  Human Capital Value
 Women in leadership  Tariff employees (%) Added (HCVA)
positions (%)  Compensation structure  Human Capital ROI
 Span of control  Sick leaves/employee
 Temporary contracts (%)  Bradford Factor (SxSxD)
 Accidents/1000 employees

Cost per Hire
What‘s in, what‘s out?
 Advertising costs  Opportunity costs related

to involved line employees
 Candidate travel costs
 Costs of recruiting
 Executive search retainer infrastructure (e.g.
and contingency fee e-Recruiting)
 Selection tools and  Referral bonuses
measures
 HR Marketing events
 Salary of employees
involved in recruiting  Sign-on-bonuses
 Costs for facilities of the  Relocation costs
recruiting organization
 Onboarding costs
 Market Research

Time to Fill
Workforce Start HR Signed Job End of

Demand Marketing/ Offer Onboarding
Search
Vacancy Selection First Day End of

at Work Probation
Period
?
?

Relevant Indicator Dimensions
What?
Which indicator will be used?
For whom? Why?

Who is the customer To which objective does
of the indicator? the indicator relate?
How?
Which sources and methods are
used to calculate the indicator?

Balanced Scorecard
Financials
Targets KPI
Customer Processes
Targets KPI Targets KPI
Vision &
Strategy
People
Targets KPI
Source: Robert Kaplan and David Norton, “Strategic

Learning and the Balanced Scorecard, 1996

Implementing an Indicator System
Example: Turnover Early Warning
Definition of Scope/Objectives Analysis Method Definition
Definition of client, objectives Systematic analysis of turnover Definition of methods and tools
and functions causes and possible early to track/measure turnover
Setting budgets, timeline and indicators drivers and predictors
project structure Develpment of a model to Defining ways to analyse and
Approach definition explain and predict turnover report data and results
behavior
Meeting with client/steering group Interviews with managers, former Workshop with experts, clients
and project lead employees, experts and HR managers
Evaluation Operation Implementation
Checking validity and Tracking data and report to Development and

acceptance clients implementation of indicator
Defining fields for Data usage and related actions system and related technical
improvements infrastructure
Identification and training of
impacted employees (clients)
Validation study interviews with
client, user tracking

Calculating the ROI of HR-related Investments
What‘s the Problem?
What are the costs related

to the problem?
What‘s the solution?
How much does the

solution cost?
Which improvements might be

achieved through the solution?
ROI

Example
10 HiPos (20%) leave the company every year voluntarily

Problem
(average annual salary: 120.000 €)
200%* × 10 × 120.000 € = 2.400.000 €

Costs
(* Cost per turnover as a percentage of annual salary)
Solution All HiPos get a company car
50 × 10.000 €* = 500.000 €
Solution Costs
(* annual costs per company car)
Turnover reduction by 25% lead to reduced turnover

Improvements
costs of 600.000 €
ROI ROI = (600.000 € - 500.000 €)/500.000 € × 100% = 20%

Human Capital Value Added
Non-Human
Capital Value Creation
Total Costs - Labor
Costs
Products
Revenue
Human Capital
Labor Costs
Human Capital
Value Added = Revenue – (Total Costs – Labor Costs)
Source: Jac Fitz-Enz (2000). The ROI of Human Capital. Amacon.

Value Added and Rentabiliy*
Döner Shop Design Office

1 FTE 1 FTE
Human
40
Revenue Human Revenue

220 180 220
Non-
Human
160
Non-
Human
20
Human Capital 220-160 220-20
= 60 = 200
Value Added/FTE 1 1
Human Capital 220-160 220-20

= 1,50 = 1,11
ROI (Rentability) 40 180
* in 1.000 €

HCVA/Employee* in german DAX30-Companies
(2007)
Addidas 70 Metro 26
Allianz 136 RWE 132
Bayer 94 SAP 163
Daimler 97 Siemens 70
Henkel 69 TUI 29
Hypo Real Estate 556 Volkswagen 23
* In 1.000 €

Performance Indicators
Example
Company Performance
Revenue 200.000 k€ Revenue/FTE 100 k€

Employees 2.000 FTE Profit/FTE 10.000 €
Total Costs 180.000 k€ HCVA 160.000 k€
Labor Costs 140.000 k€ HCVA/FTE 80 k€
Work days/Year 220 HCROI 114 %

Added Value in Key Functions
compared to other Functions
Added Value
1 2 3 Key Functions
0,5 1 1,5 Other Functions
C B A
Performance

Differentiated Added Value Calculation
C 10% B 70% A 20%

Key FTE 20 FTE 140 FTE 40
Functions Factor 1 Factor 2 Factor 3
Per employee (1.000 €): Per employee (1.000 €): Per employee (1.000 €):
10% HCVA 69 HCVA 139 HCVA 208
Labor Costs 80 Labor Costs 100 Labor Costs 120
Benefit - 11 Benefit 39 Benefit 88
Others FTE 180 FTE 1.260 FTE 360
Factor 0,5 Factor 1 Factor 1,5
90% Per employee (1.000 €): Per employee (1.000 €): Per employee (1.000 €):
HCVA 35 HCVA 69 HCVA 104
Labor Costs 60 Labor Costs 70 Labor Costs 90
Benefit -25 Benefit -1 Benefit 14
Source: Trost, A. & von Bothmer, L. (2010). Lohnende Rechenspiele In

Personalwirtschaft 07/2010 S. 22-24.

Four simple Business Cases
 To hire an A-Player in a key function one day faster

than before: 536 €/day
 To hire an A-Player instead of a B-Player into a key

function: 49.000 €/year
 To increase productivity of all (1.260) B-Players in

non-key functions by 1%: 869.400 €/year
 To convert a C-Player into a B-Player in a non-key

function: 15.000 €/year

Key Terms
Control Loop - HR Controlling - Indicator System -

Employer Ranking - Time to fill - Cost per Hire - Early
Turnover - Trainee Rate - Span of Control - Bradford Factor
- Indicator Dimensions - Balanced Scorecard - Return on
Investment (ROI) - Human Capital Value Added - Human
Capital ROI

An overview of
Recruitment in HRM
RAMAN
What is Recruitment?
There are two theoretical viewpoints to Recruitment[VSP Rao text Book].
Prospector’s Approach
Recruitment is the process of locating, identifying and encouraging potential job applicants for
existing and anticipated job openings.
Mating Approach
Recruitment is bi-directional. It is a linking function, joining together those with jobs to fill and
those seeking jobs.

29/03/2024 2
What are the sources of Recruitment
?Why does it matter?
Internal Recruitment-Identifying candidates
and selecting them through redeployment or
upward mobility.
External Recruitment- Through the labour
market.
__________________________________________
___________________________________
29/03/2024 3
Effective recruitment key aspirations and deliverables
Effective recruiting allows you to fill positions or vacancies which are going to be
important positions in the future, groom people for potential roles which
competitors might have overlooked and missed a huge opportunity or a right find.
The likelihood of getting better employees before others identify them and settling
for a better compensation is always better if positions are identified periodically
and planned for and are open for meritocratic selection. Just like an employee is
always on the lookout for better opportunities employers must never cease
looking for better employees and those who add value
Effective recruitment is more than what meets the eye. It is difficult and clouded in
grape-wine, past employees, recruitment policies and competitors and company
image which are subjective and contingent upon non recruitment factors such as
impressions on reputation built over time. Recognise that some recruiting methods
are superior to others.
29/03/2024 4
Sources of Recruitment-Internal
Recruitment
Recruiting typically brings to mind sources such as LinkedIn, employment agencies,
and classified ads, but internal sources—in other words, current employees or “hiring
from within”—is often the best source of candidates.
Referrals, High level networking for senior level managerial positions
Job posting means publicising the open job to employees (posting it on company
network or bulletin boards). These postings list the job’s attributes, like qualifications,
supervisor, work schedule, and pay rate.
The employer’s system therefore matches the best inside candidate with the job. In
practice, this doesn’t always happen. For better or worse internal politics and having the
right connections may well lead to placements they seem (and indeed may be) unfair and
less than optimal.
To be effective, promotion from within requires using job analysis and posting, deploying
personnel records, and carefully maintaining current skill inventories as we saw in our
previous discussion.
29/03/2024 5
JOB ANALYSIS KEY COMPONENTS
Identify key performance prerequisites
Identify Essential Job Duties/deliverables
Match employee specifications to job analysis.
Summarise in Job Description
29/03/2024 6
Sources of internal recruitment
1. Existing employees
2. Former employees
3. Employee referrals.
29/03/2024 7
Precautions to be followed with respect
to internal recruitment
- Do a sound job analysis and make sure you have a
clear posting and promotion policy{which is why HR
Planning is important and will be discussed after we do
selection and training}
 Doing a comprehensive interview of candidates with regard to
enquiring how they felt before leaving, their activities during the
layoff or retrenchment period and what they feel about returning to
the firm. Mention that they had made a good effort to put them at
ease, during their years in probation before their departure.
29/03/2024 8
Disadvantages of Internal
Recruitment
The existence of cliques, status-groups and fealty and loyalty structures in organisations. They
may be detrimental to the organisation, eventually by inducing subjectivity in the recruitment
process.
Returning employees are a mixed bag and such employees may develop sour feelings and may
hide them if they apply and do not get the posts and be poor performers. Inbreeding is bad and
status quo.
Recruiting or rehiring former employees has its advantages and demerits.
Their behavior, reactions and responses especially in stressful situations my be familiar and
therefore predictable and know their way around the organization. They may be more
committed and exhibit greater sense of purpose. But recruiting ex-employees has its pitfalls
which you must be aware.
Past experiences long forgotten may return to haunt as a blast from the past and negative
attitudes and painful experiences and negative cultures may revisit you. Are you up to it?
29/03/2024 9
From campuses, from other competitors, from the labour market,
from word of mouth.
Means of going about external Recruitment
Advertisement in papers especially trade magazines
Internet media especially networks such as LinkedIn
Word of mouth
Peer Networks word of mouth.
29/03/2024 10
Rationale for a recruitment decision
While recruiting the following parameters are to be adhered to.

What are the objectives of the organisation –one being the firm’s strategic
pathway and the other task related goals of this organization?
What are the purposes of this unit or department?
What are the purposes of this job?
29/03/2024 11
Identify Worker Specifications
Knowledge and competency mapping: educational skills, intellectual ability and behavioral
traits.
Skill: Level of proficiency on a task
Abilities: General, enduring attributes inherited or acquired in previous situations or
precedents- I am a hardworking student, I am a team player.
Capacity to do or to learn
Two other considerations Organisational Fit and potential Risk Factors
29/03/2024 12
Summarize in Job Description
Title of advertised role
Job Summary
Listing/description of Essential Duties
Compensation
Working Conditions-job role selling yourself
Worker Specifications (KSAs)
29/03/2024 13
What skill-sets you may expect from a recruit?
Teamwork ability
Analytical and problem solving skills.
Communication and other soft skills
Creativity and resourceful nature
Leadership potential and to work independently without supervision-SELF STARTER-HOW MUCH
INDEPENDENCE –NOT VERY CLEAR.
General Managerial and organizational skills.
Motivation and Self-Initiative
Entrepreneurial
29/03/2024 skills 14
How do you write and draw the best talent work for
you?
The Five Important Words that form the basis of any advertisement.
Intentionality to conceive and to represent in the mind what you role you visualize now and in the future.
Attention,
Interest,
Desire
Action
First, you must attract attention to the ad, or readers may overlook it. Begin with an eye catching phrase we are looking for
the “next key player” which helps. Next, develop interest in the job. For instance using the phrase, “are you looking to make
an impact?” Create desire by spotlighting words such as travel or challenge. As an example, having a graduate school
nearby may appeal to engineers and professional people. Finally, the ad should prompt action with a statement like “call
today.” 29/03/2024 15
Consider this- An example of a recruitment ad [Source Garry Dessler HRM Text
Book]
29/03/2024 16
Recruitment of Temporary employees
Hiring people according to the need may lead to increase in productivity and time and money can be saved by
not investing and training and documenting employees.
However such employees may be less committed than employees who are on the rolls of the company
Some of the major concerns of temporary employees include being treated in a dehumanising and
discouraging way and worrying about the lack of insurance and pension benefits.
Understanding the difference between contract workers and employees is very important. Let the temp
agency assume as much responsibility for the temporary employee as possible. This helps to create a clear
line between temps and employees at the worksite.
29/03/2024 17
Sources of Recruitment of Temporary Employees
and strategies of cutting costs
Offshoring implies- giving away core production processes to contractors or ancillary employees of that
contractor or ancillary firm.
Outsourcing means- Recruitment to an employment contractor to whom employees and workers report.
Such workers in the labour cadre are known as operators and they are governed by the Indian Contract
Employees act which we will visit in the subsequent session.
Internships-Internships can be win–win situations. For students, they can mean being able to hone business
skills, learn more about potential employers, and discover their career likes (and dislikes). And employers can
use the interns to make useful contributions while evaluating them as possible full-time employees.
29/03/2024 18
Assessment tools of the sources of
Recruitment
Companies have to evaluate the sources of recruiting carefully – looking at cost, time, flexibility,
quality and other criteria – before earmarking funds for the recruitment process. Recruitment does
not take place just like that. HRM Planning and methodical analysis are the crux of any recruitment
policy. First do a Job Analysis to fix how, when ,where and why questions to a potential recruit’s job
role.
To facilitate the decision making process in this regard, companies rely on the following.
Time lapse data (TLD)
Yield ratios
29/03/2024 19
company’s commitment to meet legal and legislative
requirements and societal expectations
In its recruitment activities, the company will
Advertise all vacancies either or both internally and externally
Reply to every job applicant promptly
Inform job applicants the basic details and job conditions of every job advertised
Process all applications with efficiency and courtesy
Seek candidates on the basis of their qualifications
Aim to ensure that every person invited for interview will be given a fair and thorough hearing
29/03/2024 20
TYPICAL Recruitment Practices in India
 Existing Employees
 Employee Referrals
 Advertising
 Private Employment Agencies
 Internet Recruiting
29/03/2024 21
Human Resources Planning
Determination of Strategy
Evaluation of Source of Recruitment
Implementation of Recruitment Methods and

Strategies
Feedback and Control
29/03/2024 22
Summing up-DEFINING
RECRUITMENT
The recruitment process is concerned with the procedure for the

identification and classification of the potential source of
human resources supply and effectively utilising those sources.
Source Pravin Durai HRM TEXT BOOK
29/03/2024 23
Thank You
SELECTION Raman
RELEVANT CANDIDATE DIMENSIONS SOURCE PROFESSOR ARMIN TROST
HRM
Knowledge Personality
Interests Motivation
Expectations Competence
Attitudes Talents
Contacts Age, Gender,

POSSIBLE SELECTION PARAMETERS
Education Appearance
Interview Motivation
Letter
Reason to
CV
Apply
Private Former
Engagement Development
References Photo,
Appearance
WHAT IS IMPLIED BY THE
WORD SELECTION IN HRM?
Definition of Selection
--To select means to choose.
--Selection is the process of picking individuals who
have relevant qualifications and behavioural competencies to
fill jobs in an organisation.
--The basic UNDERLYING purpose OF SELECTION is to
choose the individual who can most successfully perform the
job, from the pool of qualified candidates.

RECALL AND REFLECT ON THESE KEY TERMS RELATING TO
RECRUITMENT
Internal versus external Hiring - Job Posting/Add - Career
Website – Contractual and Contingent Workforce - Career Fair -
Public Job-advert - Executive Search - Talent Shortage - Talent
Relationship Management (TRM) - Employer Image - Brand -
Product versus Employer Brand - Employee Value Proposition -
Employer Positioning - Employer's Strengths - Labour
Competition - Target Group Preferences - Active Seeker - Passive
Seeker[needs to be incited or motivated] - Active Sourcing -
Social Media Recruiting - Referral Program - Guerilla Recruiting
or Poaching - Campus Recruiting - Internship Program - Talent
Pool - Candidate Retention - Candidate Experience

Differences between Recruitment and Selection
Recruitment Selection
The process of procurement begins with the recruitment The process of procurement ends with the
selection.
Selection is a negative task.

Recruitment is a positive task.
Recruitment is a searching function Selection is a screening function
Selection is a difficult job as it requires

Recruitment is comparatively easy as it does not require specialized knowledge and skills on the part of
expertise on the part of the recruiters the selectors

SELECTION-PROCESS SOURCE PROFESSOR
ARMIN TROST
Results
Criteria definition
consolidation
Appropriate tools
Decision Yes/No
and methods
Communicating the
Deployment
decision

THE JOURNEY OF AN APPLICANT
Prospective Employee fills in a application form or sends his CV– He may sit for a
competitive examination-Results Declared and Interview Call notified-Goes for
the Interview and faces the receptionist and waits alongside other potential
recruits.
Called into the Interview Room- Assessed over an array of parameters
If she or he were Successful he is notified that he has been shortlisted for the
job.
He then goes to mandatory medical examinations
Meanwhile the employees-check his antecedents through the references he has
provided
Management decides that they would like to hire him for the job.
SELECTION METHODS
Application Banks-Structured Interviews with standardised questions
and predetermined questions
3 components- Biographical data-Past experience and References
are prerequisites before commencing the selection process
References-suffer from subjectivity or bias
Selection tests- typically measure past and potential achievement,

aptitude, personality and intelligence.

PHASES INVOLVED IN THE SELECTION
PROCESS
Phase -1 Measurement
 Involves the verification of accuracy and consistency of Ensuring selection techniques
Phase -2 Decision- Making
 Ensuring the completeness of employee data to make accurate and uncompromising hiring
selection decision
Phase 3- Evaluation
 Identifying the role and effectiveness of selection process from organisational perspective

BACKGROUND CHECKS DETAILED
BACKGROUND CHECKS NEED TO BE
PERFORMED.
One of the easiest ways to avoid hiring mistakes is to check the candidate’s
background thoroughly. Doing so is cheap and (if done right) useful. There are two
main reasons to check backgrounds—to verify the applicant’s information and to
uncover damaging information.
In terms of effectiveness, however, most managers don’t view references as very

useful. This makes sense, given that few employers will talk freely about former
employees for legal or ethical reasons. They can be taken to court for defamation.
First-line supervisors and managers, not just employers, are potentially at risk. As a
rule, only authorized managers should provide information.
Most employers at least try to verify an applicant’s position and salary with his or her
current or former employer by phone. Others call the applicant’s current and previous
supervisors for information

BACKGROUND CHECKS TO THE
CANDIDATE DURING THE SELECTION
PROCESS
Asking open ended questions
Keep probing
Compare the resume with the application form.
Ask the candidate to sign an undertaking that the facts
supplied by him are true
If needed perform a lie detector test.
Do a comprehensive analysis of the candidates career
pathway and background before hiring him.

TYPES OF TEST TYPICALLY ADOPTED DURING SELECTION
Cognitive tests include testing general reasoning ability or intelligence. In addition, they
include tests of specific mental abilities such as memory or inductive reasoning.
Intelligence tests are tests of general intellectual abilities. They measure a continuum of
abilities, including memory, vocabulary, verbal fluency, and numerical ability. There are
also measures of specific cognitive abilities, such as deductive reasoning, verbal
comprehension, memory, and numerical ability. In certain vocations the need to
measure motor abilities, such as finger dexterity, manual dexterity, and (if hiring pilots)
reaction time becomes very important.
Personality tests measure basic aspects of an applicant’s personality. You should
be a bit cautious about personality tests, however. In some cases, the tests may be
somewhat difficult to interpret. Legal challenges also may present difficulties. Finally,
some doubt exists as to whether self-reporting on a personality test can predict
performance correctly.

INTEREST INVENTORIES AND
ASSESSMENT CENTRES
Interest inventories compare one’s interests with those of people in
various occupations. And, achievement tests measure what someone
has learned.
Achievement tests measure what someone has learned. Most of the
tests you take in school are achievement tests. They measure the
applicants “job knowledge” in areas like economics, marketing, or
human resources.
Assessment Centres -- Random order 3-5 assessors- cognitive

games, psychological tests, breaching tests, team work tests and
detailed one to one interviews
Agreement to select by consensus and discussion to the last minute
detail.
ASSESSMENT CENTER
× × × ×
Situations
Candidates Assessors Criteria Methods
6-15 Well-trained Intelligence, Tests, In-tray,

candidates psychologists social group- presentation,
and managers competence, exercises, Pscyhological
Mobility Interviews, situational
Emotional ... games
maturity Role play,
...
...

ADVANTAGES OF
ASSESSMENT CENTERS
High objectivity, reliability and validity through multiple methods,
exercises, criteria, assessors
Comparability of candidates within and across assessment Centre
cycles
Reflection of future duties and responsibilities
Limited risk of social desirable behaviour
High transparency of requirements in the eyes of the participants

WHAT ARE PERSONALITY
TESTS?
Personality tests try to gauge the core components of an applicant’s
personality, such as introversion, stability, and motivation. Some of these
tests are projective. The psychologist presents an ambiguous stimulus (like
an inkblot or clouded picture) to the person. The person then reacts to it.
Other personality tests are self-reported: applicants complete them
themselves.
Testing personality traits relate to the candidates ability to his specific role
while others relate to his suitability to the organization.
The interpretation of data and how accurate the self-reported tests can
because they involve self-reporting.

WORK STIMULATION AND TESTING
EXAMPLE FLIGHT STIMULATOR FOR A
PILOT
Employers deploy computerized multimedia candidate assessment tools.
Like work sampling, miniature job training and evaluation tests applicants with actual
samples of the job. Miniature job training assumes that a candidate who
demonstrates the ability to perform a sample of job tasks will be able to learn and
perform the job itself. Create artificial pressure situations for the candidate without
his knowledge and examine how he reacts and responds.
Sometimes, a dose of realism makes the best screening tool. Describing all aspects
of the job, the nature of the working environment and even the company culture helps
create a self-screening tool. In general, applicants who receive realistic job previews
are more likely to turn down job offers if they do not like what they understand the
job to be. Applicants who accept are then more likely to stay on the job.
Even in large companies, when it comes to screening employees, the human resource
department may work with the employer to design and administer screening tests.
However, HR may be able to do little more than the recruiting, prescreening,
background checks, and arrange for drug and physical exams..

INTERVIEW STRUCTURE
Tension
Informal
small Talk
Questions
regarding the
applicant
Open ended
Questions
Next Steps
Company/Job
Presentation
Time

WHAT BOTH SIDES WANT TO KNOW IN AN INTERVIEW
An Applicant‘s perspective An Employer‘s perspective
Why am I invited? Why are you here?

What can your company offer me? What can you do for us?
What kind of employer are you? What kind of person are you?
What distinguishes your company What distinguishes you from others
from others? who have the same skills?
Can I afford to work at your Can you work flexibly?
company?[depends on labour market
and position] Can we afford you?[depends on
labour market and position]

INTERVIEW QUESTIONS TO ASSESS COMPETENCIES
Strategic Thinking
How does the work you are currently doing affect your
organisation‘s ability to meet its mission and goals? Do you think
your work is important? If yes, why? If no, why not?
Planning
Describe a time when things did not turn out as you had planned.
What did you do to analyze the situation and how did you
address the issue?
Interpersonal Relations
Give an example of a situation where the group of people you
worked with on a regular basis had a serious conflict. What was
the conflict about? How were you involved in the conflict? What
was the outcome?
Communication
Tell me about a time when you really had to pay attention to what
someone else was saying, actively seeking to understand their
message? How did this challenge affect the manner in which you
portray important messages to others?
Source: Corporate Leadership Council (2004): Interview Questions to Assess Competencies

FINALLY, SELECTION IS NEVER
DONE IN FITS AND STARTS
The employee is selling his skill and the employer is buying his
distinctive talents or competencies and effort [refer to previous
discussion] by offering him a wage. This is known as the wage-
effort bargain. Selection and hiring has long term implications on
the firm’s competitive advantage.
Selection is not a casual meet and greet string of transactions but
a well thought out activity requiring time and money to be
allocated for it.
The employer has to offer the employee an authentic and carefully
crafted image to draw the attention of the employee and then try
to make it irresistible for him to resist the offer by attracting him to
the job.

SOME BIASES IN SELECTION REVISITED IN PERFORMANCE
APPRAISAL
First Impression Stereotyping

The tendency for a The tendency to generalise
perceiver to rely on early about people in a social
cues or first impressions. category
Recency Effect Contrast-Effect
The tendency for a The tendency to judge
perceiver to rely on recent upward or downward
cues or last impressions. because of a comparison
with another candidate who
Projection was recently judged
The tendency for perceivers
to attribute their own Halo-Effect
thoughts, priorities and The tendency to provide
feelings to others similar ratings across
different dimensions based
on an overall judgement

MYERS-BRIGGS TYPE INDICATOR (MBTI) SELF-LEARNING ACTIVITY-
GOOGLE IT AND FIND OUT ABOUT IT
Favorite World Extraversion Introversion
Information Sensing INtuition
Decision Thinking Feeling
Structure Judging Perceiving

INTELLIGENCE TEST AS ILLUSTRATED BY PROFESSOR TROST
Select the option that best fits the pattern of the

previous images For each question determine the number that
best fits the pattern of the previous numbers
1.1, 3, 6, ?
2.3, 5, 8, 13, 21, ?
3.3, 6, 18, 108, ?
4.4, 1, -3, -4, ?
5.95, 36, 15, ?
6.6, 13, 29, 63, ?
7.1, 1, 2, 6, ?
8.12, 33, 55, ?
9.99, 86, 73, ?
10.2, 5, 8, 35, ?
11.4, 16, 49, ?
12.73, 61, 56, 62, ?
13.1588, 1820, 2148, 2204, 2284, ?
14.923, 937, 963, ?

AN EXAMPLE FOR TESTING
INTELLIGENCE
There is scientific evidence, that people who earn more
money are often not as happy than those who earn less
money.
Please create as much theses supporting this finding as

possible.

ADVANTAGES OF PSYCHOMETRIC TEST METHODS
High objectivity due to limited impact of test

operator
High comparability across candidates due to
standardised test conditions
Limited costs per test usage
Test can be used as modules complementing
other selection measures
Tests require minimal infrastructures and can be
used in almost every situation
Tests can be exposed even online at any time and
at many locations
Analysis is very simple (e.g. score is equal to the
amount of correctly-answered items)

SELECTION KEY TERMS IN A NUTSHELL
Candidate Selection - Hiring Risk - Job versus Position -

Job Architecture - Job Family - Job Analysis - Critical
Incident Technique - Job Description - Dejobbing - This-is-
not-my-Job-Mindest - Applicant - Stereotyping - Primacy
Effect - Halo-Effect - Recruiting Funnel - Pre-Selection -
Biografic Questionnaire - Reference Check - Background
Investigation - Graphology - Heuristics - Resumé -
Personality - Personality Test - Social Desirability - Myers-
Briggs Type Indicator - Ability Test - Intelligence Test -
Standard Deviation - Projective Tests - Online Testing -
Adaptive Item Presentation - Job Interview - Assessment
Center - In-Tray Test - Role Play - Correlation - Validity -
Reliability - Objectivity
PSYCHOMETRIC TESTS A
WALKTHROUGH
Recall class discussion
https://www.youtube.com/watch?v=xTZ8o77y_T8
And also, see this and follow the links for practical guidelines for maxing your interviews-
https://www.youtube.com/watch?v=Q46nRbDO9dM

Combined PPTs

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Combined PPTs

Uploaded by

Copyright:

Available Formats

SOLUTIONS

1. As a small startup bakery manager, if one of my bakers

2. As the owner of a growing startup, I would ﬁrst analyse our

3. To avoid long wait times at popular restaurants or stores,

4. As a coach for a sports team, to ensure enough players

5. When starting your own business, you should ﬁrst

6. To avoid long wait times for customer service, companies

7. To ensure enough staﬀ during peak periods like weekends or

8. To ensure enough salespeople to meet sales targets and grow

9. To avoid long wait times for experts in ﬁelds like medicine

10. To ensure enough people with the right skills and

 Two concurrent but varying perspectives of

There are two different ways to view employees in an organization.

 Inter-disciplinary function: multidisciplinary activity utilizing

The fundamental objective of HRM is to

 Pervasive force of change and touch every employee

2. Secondly, HRM is integrated, meaning it involves a holistic approach to

3. HR activities are designed to give the organisation a competitive edge in

To provide right type of training

Effective utilization of human resources

To ensure development of human resources

To identify & satisfy the need of individuals (monetary & non-monetary

To reconcile individual & organisational objectives

Ascertaining the requirements for attaining these organisational

To help employees maintain high morale

Two at the macro level the

MANAGERIAL OPERATIVE ADVISORY

Planning Employment Advice to top management

Organizing Training & development Advice to departmental heads

1. Develop and implement HR policy

2. Advise line managers on the interpretation of policy and the

3. Develop effective job structures

4. Promote and nurture employee capability

5. Envisage the future (planning)

6. Enhance employee motivation

7. Regularly Demonstrate HR contribution to business

 A student of Human Behavior with ideally some

Strategic HRM is a process of

 Determination of Vision and Mission

 Cost to the company

Creation of competitive advantage

• Universalist BEST Practice templates-If it can

• Institutionalist Perspective – Governance

• The ‘Culturalist perspective'-Hofstede

 Matching HR capabilities and resources with external opportunities

There are two types of fit:

Vertical Fit Horizontal fit

 Therefore, one and two lead us to Vertical Fit-extant of alignment

between HR Strategies and Business Strategy.

horizontal fit within an organization.

 Horizontal fit-extant of intrinsic alignment among components of

 Topmost Strategy Making It focusses on value creating for an organization AS A

 Growth Strategy focus On the Development and accomplishment of Growth

 Portfolio Strategy-focusses on the Determination of the Portfolio of Business

 Parenting strategy efficiently and Continually Evaluate and Assess the

 Creating Sustaining-competitive advantage through

price or cost leadership and product differentiation.

 Rolls Royce versus Mass production.

• Creating an environment that facilitates the continuous exchange of information

• Creating Voluntary commitment from employees by adopting mutually beneficial HR

• Improving Performance of individuals and the organisations constantly and

To impact man management alignment within the

• Specific strategies made for the functional activities

 Absence of long-term orientation