Unit 6

Human Resource Management

Dau Thu Huong (M.A)

Lecturer of ESP
Hanoi Foreign Trade University
E: huongdt@ftu.edu.vn
T: 036 886 3546
Human Resource Management

Objectives

- Understand the concept, the importance of

HRM.
- Understand activities of HM including
Acquisition, Maintainance, and Training and
Development
 Human Resource
Management
The integration of all processes, programs, and
systems in an organization that ensure staff are
acquired and used in an effective way

FOM 9.3
Human resources management

All the activities involved in acquiring, maintaining, and developing an

organization’s human resources (to achieve competitive advantage)

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HRM: An Overview
1. Acquisition
• Human resources planning- determining future
human resource needs (relationship to corporate
strategic planning)
• Job analysis- determining exact nature of the
position
• Recruiting- attracting potential candidates
• Selection- choosing and hiring most qualified
applicant
• Orientation- acquiring new employees with the
firm
HRM: An Overview (cont’d)
2. Maintaining
• Employee relations – increasing employee job satisfaction
• Compensation- rewarding employee effort through monitory
payments
• Benefits- providing rewards to ensure employee well-being
3. Development
• Training and development- teaching new skills and new jobs
to do the present job effectively and future leadership
• Performance appraisal- assessing employees’ current and
potential performance levels
1.1. HUMAN RESOURCE MANAGEMENT PROCESS DIAGRAM

HUMAN RESOURCES
PLANNING

RECRUITMENT
STAFFING

SELECTION

TRAINING AND
DEVELOPMENT

PERFORMANCE
APPRAISAL

COMPENSATION
Human Resources Planning

• The development of strategies to meet a firm’s future human

resources needs

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 Human Resource Planning

Assessing Future
Assessing Current
Human Resource
Human Resources
Needs

Developing a
Program to Meet
Needs
HR Planning
• We have found the gap, how do we fill this void?
• How much time should we spend on identifying the right person?
• Lets follow the trail of what it takes to hire a new team member in an
oganization.
HUMAN RESOURCE PLANNING
• Human Resource Planning is the process of
determining future human resource needs relative to
an organisation’s strategic plan and devising the steps
necessary to meet those needs.

Parts of HRM

1) Forecasting Manpower Demand

2) Forecasting Manpower Supply
3) Human Resource Actions
HUMAN RESOURCE PLANNING
RESOURCE DEMAND FORECASTING RESOURCES SUPPLY FORECASTING
Long Range
1. Strategic Plans 1. Current Inventory
2. Demographics 2. Productivity Levels
3. The Economy 3. Turnover Rate
4. Technological Trends 4. Absenteeism Rate
5. Social Trends 5. Movement among Jobs Rate
Short Range
1. Production Schedules / Budgets
a. Time Series
b. Ratios
c. Work Standards
2. Affirmative Action / Equal Employment Opportunity
(EEO) Goals
3. Relocations/Plant Closings

HUMAN RESOURCE ACTIONS

1. Hiring
2. Training
3. Career Management
4. Productivity Program
5. Reduction in Force
Human Resources planning-
demand
• Total number of employees need by an

organization to fulfill its organizational human

resources capacity in a given period of time

• New products introduced

• New factory facilities

• New distribution center 13

Forecasting Human Resources Demand

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Human Resources planning -Supply
• Forecasting human resources supply
• Factors affecting HR supply- internal and external
• Supply forecasting techniques

• Replacement chart- list of key personnel and their

possible replacements within a firm

• Skills inventory-a computerized data bank

containing information on the skills and experience
of all present employees
 Human Resources Planning (cont’d)

• Matching supply with demand

• Layoffs

• Attrition – is the normal reduction in the workforce that occurs when

employees leave a firm

• Early retirement
Job Analysis

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Job Analysis

• A systematic procedure for studying jobs to determine their various

elements and requirements

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Job Analysis
• Job description- list of the elements that make up
a particular job

• Job specification- a list of the qualifications

required to perform a particular job

• Used for recruiting, selecting, evaluation, and

compensation decisions
 Components of Job Analysis

Job Description Job Specification

(Emphasis is on the job) (Emphasis is on the individual)

§ Objectives of the Job •Minimum qualification required

§Work to be performed •Listing of skills, education and work

experience needed to perform the job.
§Skills needed

§Responsibilities involved

§Relationship of the job to other jobs

§Working conditions
Recruiting

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Recruitment

• Process of locating,
identifying, and attracting
capable candidates
• Can be for current or future
needs
• Critical activity for some
corporations.
• What sources do we use for
recruitment
 School
Internal Placement
Employee
Searches Referrals

Recruitment
Employee Temp
Leasing Sources Services

Employment
Agencies Advertisements
Recruitment
• Recruitment is the process of identifying and
attempting to attract candidates who are capable of
filling job vacancies appropriately.

• To attract those applicants who are best qualified to

fill the vacancies.
• Effective selection depends on effective recruitment.
Sources of Recruitment
1. Internal Recruitment
2. External Recruitment
External Recruitment
• Advertising

• Educational Institutions

• Employment Agencies

• Voluntary Applicants

• Referrals by Current Employees

Advantages of Internal & External Recruitment
Internal Recruitment
•Familiarity of candidate with
organisation’s policies, procedures
and culture
•Available information and
observation by superiors facilitates
easier selection.
•Selection and socialisation of job
incumbents involves less time and
money.
External Recruitment
vInflux of new ideas.
vCandidates who are recruited from
competitors provide valuable
information about competitors
moves and strategies.
vFacilitates recruitment of
candidates with diverse skills,
expertise and vast experience.

•Enhances employee morale by

offering opportunities for upward
mobility.

•Prevents high –quality employees

from leaving the organisation.
Disadvantages of Internal and External Recruitment
Internal Recruitment External Recruitment

qLack of new ideas. •Lack of reliable information increases

the probability of committing mistakes
qNeed for expensive training programs in selection.

qCan breed nepotism and political •Expensive process

maneuvers.
•Orientation process may consume a
qLeads to “Ripple Effect” lot of time.

qMay leave unsuccessful contenders •Breeds resentment among aspiring

disgruntled. internal candidates.
Recruitment Process
Perform Design Job Develop a Job Attract a Pool Select the
Job Description Specification of Applicants Best
Analysis Recruits

Job Analysis

1. Analysing the environment (nature of competition, customers etc.) in which

employees work.

2. Determining duties and responsibilities to be discharged.

3. Observing and recording the various tasks of the job as they are actually
performed.
Selection

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Selection
• Are there ways that managers can ensure that the decision achieves
the desired outcome? (time and time again)
• Yes, use HR Tools which are Reliable & Valid
 Reliability
• Degree to which selection tool measures the same
thing consistently
• Can be a test or an interview
• Same questions need to be asked.
 Validity
• Relationship between selection tool and appropriate
criterion
• What a selection technique measures and how well
it measures
• Must be proven and relevant to job
• Eg: keyboarding skills for data entry clerk.
Selection
• Employment applications

• Employment tests

• Interviews

• References

• Assessment centers
Orientation

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Orientation
• The process of acquainting new employees with an
organization

• Topics
• Range from location of company cafeteria to
career paths within the firm

• May be brief and informal or long and formal

Compensation and Benefits

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Compensation and Benefits
Effective employee reward systems must
• Enable employees to satisfy their basic needs
• Provide rewards comparable to those offered by other
firms
• Be distributed fairly in the organization

• Recognize that different people have different needs

Compensation Decisions

• Compensation- the payment employees receive in

return for their labor

• Compensation system- the policies and strategies

that determine employee compensation

• Wage level- going rates in the industry

Compensation Decisions (cont’d)
• Wage structure- pay levels for all the positions
within the organization
• Job evaluation- the process of determining the relative
worth of the various jobs within a firm
• Individual wages- specific payments individual employees
will receive must be determine

• Comparable worth- a concept that seeks equal

compensation for jobs requiring about the same
level of education, training, and skills
Types of Compensation
• Hourly wage

• Salary

• Commissions

• Incentive payment

• Lump-sum salary increases

• Profit sharing
 Employee Benefits
• Type of benefits

• Pay for time not worked

• Insurance packages

• Pension and Retirement programs

• Required by law

• Flexible benefits plan- predetermined amount paid

Training and Development

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Training and Development
• Employee training- the process of teaching operations and
technical employees how to do their present job
effectively

• Management development- the process of preparing

managers and other professionals to assume increased
responsibilities in both present and future positions

• Development of a training program- identify the training

needs, develop the training programs
Analysis of Training Needs
• Is training needed?

• What kind of training is needed?

• Is motivation needed?

• Training is expensive; be sure it is appropriate.

 Training Development Methods
• On-the-job

• Simulation

• Classroom teaching and lectures

• Conferences and seminars

• Role playing
 Evaluation of Training and
Development
• Before training, develop a set of verifiable objectives
that specify what is expected and how the results are
to be measured

• Measure or verify training results

• Make the results known to all those involved in the

program—including trainees and upper management
Performance Appraisal

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Performance Appraisal
• The evaluation of an employee’s current and
potential levels of performance to allow managers
to make objective human resource decisions

• Uses of performance appraisal

• Workers know how well they are doing

• How they could be better

• To use to design reward methods

• For training and development purposes

Common Evaluation Techniques
• Objective methods- sales targets, defects levels

• Judgmental methods
• Managerial estimates of employee performance levels

• Ranking

• Rating
Common Evaluation Techniques (cont’d)
Avoiding appraisal errors
• Use the entire evaluation instrument; avoid focusing on
one portion

• Do not let an employee’s poor performance in one area

influence the evaluation of other areas of performance

• Evaluate the entire performance period and not the most

recent behaviors of the employee

• Guard against any form of personal bias or discrimination

in the evaluation
Performance Feedback
• Most often through a performance feedback interview

• Tell and sell

• Tell and listen

• Problem-solving approach

• Mixed interview

• 360-degree evaluation
Weekly Assignment

• Discuss the importance of human resources as one of the factors of

production to achieve business objectives.