Principles of Human Resources Management

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Training Agenda
1. HR Management : An Overview 2. HR Planning and Recruitment 3. Employee Selection 4. Training and Development 5. Performance Management 6. Career Management

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Human Resource Management : An Overview
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HR Management Cycle
Recruitment & Selection Training & Development Performance Management

Reward Management

Career Management

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HR Strategy and Business Result
Recruitment & Selection

Business Strategy

Training & Development

Performance Management

Business Result

HR STRATEGY Reward Management Career Management

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Manpower Planning & Employee Recruitment
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Manpower Planning
Company Strategy Job Analysis

What staff do we need to do the job?

What staff is available within our organization? Is there a match?

What is impact on wage and salary program?

• Performance appraisal • Company data banks • Training • Employee management and development

If not, what type of people do we need, and how should we recruit them? 8

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Manpower Planning
Factors in Forecasting Personnel Requirements

Projected turnover (as a result of resignation and terminations)

Quality and nature of your employees (in relation to what you see as the changing need of your organization)

The financial resources available to your organization

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Technique to Determine Number of Recruits
Trend Analysis • Study of a firm’s past employment needs over a period of years to predict future needs

Ratio Analysis

A forecasting technique for determining future staff needs by using ratios between sales volume and number of employees needed

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Recruitment from External Resources
• Recruiting new staff from external sources will be influenced by several factors, namely : MacroEconomic Conditions of a Nation When the economic conditions are relatively difficult, there will usually be an oversupply, or the number of applicants will much higher than the demand. In such a case, the company will find it relatively easier to select new employees from the large number of applicants.

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Recruitment from External Resources
Availability of Manpower in Desired Sectors When the sector is one that is considered a ‘rare’ sector, the company will have more difficulty in recruiting staff for this sector. For example, computer technology, or cellular engineering.

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Recruitment from External Resources
Company Reputation It will tend to be easier for a company to find and recruit the best people if the company has a good reputation, therefore the best fresh graduates will flock to apply to the company. Example : Google, McKinsey or Microsoft.

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Recruitment Yield Pyramid
• Some employers use a recruiting yield pyramid to determine the number of applicants they must generate to hire the required number of new employees. Example of Recruitment Curve: • • • • • 1200 - Leads generated 200 - Candidates invited 150 - Candidates interviewed 100 - Offers made 50 - New hires

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Recruitment Sources
Advertising (newspaper, magazine, internet)

Recruitment Sources

College Recruitment

Recruitment Agent (headhunter)

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Employee Selection

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Basic Concept of Selection Tests
The quality of an employee selection test is determined by three main factors, namely : 1. Criterion Validity : A type of validity based on showing that scores on the test (“predictors”) are related to job performance (“criterion”). 2. Content Validity : A test that is “content valid” is one in which the test contains a fair sample of the tasks and skills actually needed for the job in question. 3. Reliability : The consistency of scores obtained by the same person when retested with identical or equivalent test.
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Some Types of Selection Test

1. Cognitive Ability Test 2. Personality Test 3. Interview

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Cognitive Ability Test
• Cognitive Abilities Tests: Paper and pencil or individualized assessment measures of an individual's general mental ability or intelligence.

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Advantages of Cognitive Ability Test
• • • • • • highly reliable verbal reasoning and numerical tests have shown high validity for a wide range of jobs the validity rises with increasing complexity of the job may be administered in group settings where many applicants can be tested at the same time scoring of the tests may be completed by computer scanning equipment lower cost than personality tests

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Disadvantages of Cognitive Ability Test
• non-minorities typically score one standard deviation above minorities which may result in adverse impact depending on how the scores are used in the selection process differences between males and females in abilities (e.g., knowledge of mathematics) may negatively impact the scores of female applicants

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Personality Test
• Personality Tests: A selection procedure measure the personality characteristics of applicants that are related to future job performance. Personality tests typically measure one or more of five personality dimensions: extroversion, emotional stability, agreeableness, conscientiousness, and openness to experience.

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Advantages of Personality Test
• can result in lower turnover due if applicants are selected for traits that are highly correlated with employees who have high longevity within the organization can reveal more information about applicant's abilities and interests can identify interpersonal traits that may be needed for certain jobs

• •

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Disadvantages of Personality Test
• • difficult to measure personality traits that may not be well defined responses by applicant may be altered by applicant's desire to respond in a way they feel would result in their selection lack of diversity if all selected applicants have same personality traits lack of evidence to support validity of use of personality tests

• •

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Interview
• Interviews: A selection procedure designed to predict future job performance on the basis of applicants' oral responses to oral inquiries.

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Advantages of Interview
• useful for determining if the applicant has requisite communicative or social skills which may be necessary for the job can assess the applicant's job knowledge can be used for selection among equally qualified applicants enables the supervisor and/or co-workers to determine if there is compatibility between the applicant and the employees allows the applicant to ask questions that may reveal additional information useful for making a selection decision
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• • •

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Disadvantages of Interview
• • subjective evaluations are made decisions tend to be made within the first few minutes of the interview with the remainder of the interview used to validate or justify the original decision interviewers form stereotypes concerning the characteristics required for success on the job research has shown disproportionate rates of selection between minority and non-minority members using interviews negative information seems to be given more weight not as reliable as tests

• •

• •

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Training & Development

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Training Process

Training Need Analysis

Training Objectives

Training Delivery

Training Evaluation

What are the training needs for this person and/or job?

Objective should be measurable and observable

Techniques include onthe-jobtraining, action learning, etc.

Measure reaction, learning, behavior, and results

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Assessing Training Needs
Task Analysis A detailed analysis of a job to identify the skills required, so that an appropriate training program can be instituted

Competency Analysis

Careful study of competency level to identify a deficiency and then correct it with a training program, or some other development intervention.

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Competency Analysis
Current competency level of the employee Competency Gap Required competency level for certain position

Competency Assessment

Training and Development Program

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Competency Profile Per Position
Required Level Position Required Competency Communication Skills Training & Development Manager Public Speaking Leadership Training Need Analysis Material Development Training Evaluation Communication Skills Interview Skills Recruitment Supervisor Analytical Thinking Understand Selection Tools Teamwork Customer Orientation 1 2 3 4 5

Score Required Competency Type

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Competency Profile Per Position
Managerial competency
Leadership 1 2 3 4 Required Level Actual Level Achievement Orientation Teamwork

Planning & Organizing

Functional competency
Mechanical Engineering

1

2

3

4

Mechanical Equipment Maintenance

Position
SUPERVISOR

Competency Requirements
Leadership
• • • •

Relevant Training Modules
Leadership I Communication Skills I The Art of Motivating Employees Providing Effective Feedback Goal Setting Technique Work Motivation Planning & Organizing Continuous Self Improevement

Achievement Orientation

• • • •

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Training Matrix for Competency Development
Service Excellence for Customer Building Productive Teamwork V V V V V V V V V V V V Achievement Motivation Training On Becoming Effective Leader 1 On Becoming Effective Leader 2 Creative Problem Solving Productive Communication Series Professional Seminar Series Strategic Management

Training Title
Position Managerial Competency Communication Skills Leadership Supervisor Teamwork Achievement Orientation Customer Focus Job Functional Skills Communication Skills Leadership Teamwork Manager Achievement Orientation Customer Focus Strategic Thinking Problem Solving & Decision Making Job Functional Skills

V V

V = compulsory training

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Enhance Training Effectiveness
Make the material meaningful

Provide for transfer to learning

Training Effectiveness

Motivate the trainee
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Enhance Training Effectiveness
Make the material meaningful • At the start of training, provide the trainees with a bird’s-eye view of the material to be presented. Knowing the overall picture facilitates learning. Use a variety of familiar examples when presenting material Organize the material so that it is presented in a logical manner and in meaningful units Try to use terms and concepts that are already familiar to trainees Use as many visual aids as possible
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• •

• •

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Enhance Training Effectiveness
Provide for transfer to learning • • • Maximize similarity between the training situation and the work situation Provide adequate training practice Identify each feature of the step in the process

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Enhance Training Effectiveness
Motivate the trainee • People learn best by doing. Try to provide as much realistic practice as possible Trainees learn best when correct response on their part are immediately reinforced. Trainees learn best when they learn at their own pace. If possible, let trainees pace themselves.

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Type of Training Program
OFF THE JOB
Formal course
• • Does not interfere with job Provides for fact learning

Simulation

• •

Helps transfer of learning Creates lifelike situations

Wilderness Trip

• •

Builds teams Builds self-esteem

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Type of Training Program
ON THE JOB
Job instruction training Apprenticeship training
• • Facilitates transfer of learning Does not require separate facilities

• •

Does not interfere with real job performance Provides extensive training

Job rotation

• •

Gives exposure to many jobs Allows real learning

Mentoring

• •

Is informal Is integrated into job
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Evaluation of Training Effectiveness
Level 1 - Reaction Level 2 - Learning Level 3 – Behavior Application Level 4 – Business Impact
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Four Levels of Training Effectiveness

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Evaluation of Training Effectiveness
Evaluate trainees’ reactions to the program. Did they like the program? Did they think it worthwhile? Test the trainees to determine if they learned the principles, skills, and facts they were to learn. Level 2 Learning Level 1 Reaction

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Evaluation of Training Effectiveness
Ask whether the trainees’ behavior on the job changed because of the training program. For example, are employees in the store’s complaint department more courteous toward disgruntled customers than previously? Level 3 – Behavior Application

What final results were achieved in terms of the training objectives previously set? Did the number of customer complaints about employee drop? Did the reject rate improve? Was turnover reduced, and so forth.

Level 4 – Business Impact

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Employee Performance Management
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Why Performance Appraisal?
• Appraisal provide information upon which promotion and salary decision can be made. Appraisal provide an opportunity for a manager and his/her subordinates to sit down and review the subordinate’s work-related behavior, and then develop a plan for corrective action. Appraisal provide a good opportunity to review the person’s career plans in light of his/her exhibited strengths and weaknesses.

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Performance Management Cycle
Performance Planning (Setting Performance Targets) Regular Review and Monitoring
Feed back

Corrective Action

• Training & Development Plan • Salary/Bonus Adjustment • Career Development

Performance Appraisal and Evaluation

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Performance Management Cycle
Defining Performance Standard/ Targets Appraising Performance
1. Defining the performance standards means making sure that you and your subordinate agree on his/her duties and targets that you expect 2. Appraising performance means comparing your subordinate’s actual performance to the standard/targets set in step one. 3. Providing feedback means discussing plans for any development that is required.
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Providing Feedback for Development

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Problems in Performance Appraisal
Lack of standards Poor feedback to employee Poor measures of performance Failure to apply evaluation data

Irrelevant or subjective standards

Negative communication

Common Performance Evaluation Problems

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Bias in the Appraisal Process
Halo Effect The "halo" effect occurs when a supervisor’s rating of a subordinates on one trait biases the rating of that person on other traits

Central Tendency

A tendency to rate all employees the same way, such as rating them all average

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Bias in the Appraisal Process
Leniency The problem that occurs when a supervisory has a tendency to rate all subordinates either high or low

Bias

The tendency to allow individual differences such as age, race, and sec affect the appraisal rates these employees receives.

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Performance Appraisal Element
1. Competencies: It represents soft or qualitative aspects of performance (process) 2. Performance Result: Hard or quantitative aspects of performance (result)

Performance appraisal elements has two main categories:

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Performance Appraisal Element
1. Competencies Score

Overall Score
2. Performance Result Score

Will determine the employee’s career movement, and also the reward to be earned

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Element # 1 : Competencies
Competency : Collaboration
Basic Intermediate Advanced Expert Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies Actively listens, and clarifies understanding where understanding where required, in order understanding where required, in order understanding where required, in order required, in order to learn from others. to learn from others. to learn from others. to learn from others. Empathise with audience and formulates messages accordingly. Shares resources and information. Responds promptly to other team members’ needs. Empathise with audience and formulates messages accordingly. Shares resources and information. Empathise with audience and formulates messages accordingly. Shares resources and information. Empathise with audience and formulates messages accordingly. Shares resources and information. Builds internal and external networks and uses them to efficiently to create value. Uses cross functional teams to draw upon skills and knowledge throughout the organization. Drives and leads key relationship groups across The company. Manages alliance relationships through complex issues such as points of competing interest. Ensures events and systems, eg IT, for collaboration are in place and used. Draws upon the full range of relationships (internal, external, cross The company) at critical points in marketing and negotiations.

Balances complementary strengths in Actively builds internal and external teams and seeks diverse contributions networks. and perspectives. Involves teams in decisions that effect them. Uses cross functional teams to draw upon skills and knowledge throughout the organization.

Encourages co-operation rather than Builds and maintains relationships competition within the team and with key across The company. stakeholders.

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Element # 2 : Performance Results
No. Main Performance Target Target to be Achieved All employees submit their performance assessment form on time Target : completed 100 % in November 2008 Target : to conduct 6 training modules in one year Target : 90 % of the total employees who attend the training experience an increase in skill and knowledge

1 Conduct an assessment of the employee's performance 2 Improve the system for performance assessment 3 Conduct training activities

4 Carry out on the job training activities

Target should be measurable and specific
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Employee Career Management
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Career Planning and Development

Career Planning & Development

Providing employees the assistance to form realistic career goals and the opportunities to realize them

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Typical Career movement
Entry Level First Line Middle Management Senior Management Top Management Join Company 22 years old Supervisor/Ass. Manager 26 - 29 years old

Managers 29 - 35 years old

GM/Senior Managers 35 - 45 years old CEO/BOD 45 - 55 years old

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Career Stage
Trial Stage The period from about age 25 to 30 during which the person determines whether or not the chosen field is suitable and if it is not, attempts to change it.

Stabilization Stage

The period, roughly from age 30 to 40, during which occupational goals are set and more explicit career planning is made to determine the sequence for accomplishing goals

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Career Stage
Mid career Crisis Stage The period occurring between the midthirties and mid-forties during which people often make a major reassessment of their progress relative to their original career ambitions and goals The period form about ages 45 to 65 during which the person secures his or her place in the world of work

Maintenance Stage

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Career Stage
Decline Stage The period during which many people are faced with the prospect of having to accept reduced levels of power and responsibility.

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Career Anchors
Career Anchor :

A concern or value that someone will not give up if choice has to be made

Career anchors, as their name implies, are the pivots around which a person’s career swings; a person becomes conscious of them as a result of learning about his or her talents and abilities.

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Five Career Anchors

Technical/ Functional Career Anchor

Managerial Competence as a Career Anchor

Creativity as a Career Anchor

Autonomy and Independence as Career Anchor

Security as a Career Anchor

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Five Career Anchors
Technical/ Functional Career Anchor • People who have a strong technical/functional career anchor tend to avoid decisions that would drive them toward general management. Instead, they make decisions that will enable them to remain and grow in their chosen technical or functional field

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Five Career Anchors
Managerial Competence • • People who show strong motivation to become managers Their career experience enables them to believe that they have the skills and values necessary to rise to such general management position

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Five Career Anchors
Creativity • • People who go on to become successful entrepreneurs These people seem to have a need to build or create something that is entirely their own product – a product or process that bears their name, a company of their own, or a personal fortune that reflects their accomplishments.

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Five Career Anchors
Autonomy and Independence • People who are driven by the need to be on their own, free from the dependence that can arise when a person elects to work in a large organization. Some of these people decide to become consultants, working either alone or as part of relatively small firm. Others choose to become professors, free-lance writers, or proprietors of a small retail business.
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Five Career Anchors
Security • People who are mostly concern with long-run career stability and job security. They seem willing to do what is required to maintain job security, a decent income, and a stable future in the form of a good retirement program and benefits.

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Career Management and the First Assignment
• Factors to keep in mind about the important first assignment, include : 1. Avoid reality shock (reality shock refers to the result of a period that may occur at the initial career entry when the new employee’s high job expectations confront the reality of boring, unchallenging jobs. 2. Provide challenging initial jobs 3. Provide realistic job preview in recruiting 4. Be demanding

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Career Management and the First Assignment
5. Provide periodic job rotation 6. Provide career-oriented performance appraisals 7. Encourage career-planning activities

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References/Recommended Further Readings
1. Gary Dessler, Human Resource Management, Prentice Hall. You can obtain this excellent book at this link : Susan Jackson and Randall Schuler, Managing Human Resource : A Partnership Perspective, South-Western College Publishing

http://www.amazon.com/Framework-Human-Resource-Management-5th/dp/0136041531/ref=sr_1_6?ie=UTF8&s=

2.

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