You are on page 1of 64

Lecture 14A

:
Managing Human Resources
Today
(Chp 1)
Maryam Niazi
OB / HRM

Book:

A Framework for Human Resource
Management (6th Edition) by Gary
Dessler

OB/HRM (MGT 302) - Maryam Niazi

2

Lecture Outline

What is Human Resource
Management (HRM)

Personnel Aspects of a Manager’s
Job

Line & Staff aspects of HRM
HR Duties
Changing HR Environment
OB/HRM (MGT 302) - Maryam Niazi

1–3

All rights reserved. 1–4 .Strategy and the Basic HR Process Figure 1–8 © 2005 Prentice Hall Inc.

leading.The Manager’s Human Resource Management process Management Jobs ◦ The five basic functions of planning. and appraising and providing a safe. staffing. screening. rewarding. training.Maryam Niazi . and controlling. Human resource management (HRM) ◦ The policies and practices involved in carrying out the “people” or human resource aspects of a management position. including recruiting. ethical and fair environment for your employees 5 OB/HRM (MGT 302) . organizing.

disciplining)  Training and developing managers  Building employee commitment OB/HRM (MGT 302) .Personnel Aspects Of A Manager’s Job  Conducting job analyses (determining the nature of each employee’s job)  Planning labor needs and recruiting job candidates  Selecting job candidates  Orienting and training new employees  Managing wages and salaries (compensating employees)  Providing incentives and benefits  Appraising performance  Communicating (interviewing. counseling.Maryam Niazi 1–6 .

Personnel Mistakes  Hire the wrong person for the job  Experience high turnover  Have your people not doing their best  Waste time with useless interviews  Have your company in court because of discriminatory actions  Have your company cited under occupational safety laws for unsafe practices  Have some employees think their salaries are unfair and inequitable relative to others in the organization  Allow a lack of training to undermine your department’s effectiveness  Commit any unfair labor practices OB/HRM (MGT 302) .Maryam Niazi 1–7 .

Why study HR then?
Getting

results

◦ The bottom line of managing
HR

creates value by
engaging
in activities that produce
the employee behaviors
the company needs to
achieve its strategic
goals.
OB/HRM (MGT 302) - Maryam Niazi

1–8

Line and Staff Aspects of
HRM
Line

manager

◦ A manager who is authorized to
direct the work of subordinates and
is responsible for accomplishing the
organization’s tasks e.g. production
manager
Staff

manager

◦ A manager who assists and advises
line managers e.g. HR manager
OB/HRM (MGT 302) - Maryam Niazi

1–9

Functions of the HR
Manager
A

line function

◦ The HR manager directs the activities
of the people in his or her own
department
A

coordinative function

◦ HR managers also coordinate
personnel activities, a duty often
referred to as functional control.
Staff

(assist and advise) functions

◦ Assisting and advising line managers
is the heart of the HR manager’s job.
OB/HRM (MGT 302) - Maryam Niazi

1–
10

direct others’ work. OB/HRM (MGT 302) . Implied authority ◦ The authority exerted by an HR manager by virtue of others’ knowledge that he or she has access to top management. and give orders.HR and Authority Authority ◦ The right to make decisions. Line authority ◦ The authority exerted by an HR manager by directing the activities of the people in his or her own department and in service areas.Maryam Niazi 1– 11 .

Maryam Niazi 1– 12 .Examples of HR Job Duties Recruiters Equal employment opportunity (EEO) coordinators Job analysts Compensation managers Training specialists Labor relations specialists OB/HRM (MGT 302) .

A Changing HR Environment Globalization Technological The Advances Nature of Work Workforce Demographics OB/HRM (MGT 302) .Maryam Niazi 1– 13 .

g. increase in part-time workers OB/HRM (MGT 302) . aging workforce. the Spanish retailer Zara operates its own internet based worldwide distribution network  The Nature of Work: Increased emphasis on training workers to substitute manual labor with automated machines  Workforce Demographics: Gen Y (Younger workers have different work values than their parents). More competition means lowering costs & doing better things less expensively  Technological Advances: Changing nature of business environment e.A Changing HR Environment  Globalization: Firms expanding sales to new markets abroad (e.Maryam Niazi 1– 14 . Dell produces PCs in China).g.

sophisticated recruitment practices. on-line advertising) Build HPWS(High Performance Work Systems): well-trained employees. higher productivity HPWS: A set of HRM Policies that together produce superior employee performance OB/HRM (MGT 302) .Maryam Niazi 15 .The HR Manager Today Focus more on ‘strategic issues’ and not only on hiring employees Find new ways to provide transactional services (e.g.

Maryam Niazi 1– 16 . OB/HRM (MGT 302) .Benefits of a High Performance Work System  Generate more job applicants  Screen candidates more effectively (HPWS)  Provide more and better training  Link pay more explicitly to performance  Provide a safer work environment  Produce more qualified applicants per position  More employees are hired based on validated selection tests  Provide more hours of training for new employees  Higher percentages of employees receiving regular performance appraisals.

The HR Manager Today (Contd.) Understanding Evidence-Based Management (EBM): Use of data.Maryam Niazi 17 . research studies to support decision making Measure HR Performance through ‘metrics’ e..  Turnover Rate [Number of separations during month ÷ Average number of employees during month] × 100  Time to fill Total days elapsed to fill requisitions ÷ Number hired OB/HRM (MGT 302) . critical evaluation.g.. facts.

Maryam Niazi 18 .Lecture 14B: Personnel Planning & Recruiting (Chp 3) Maryam Niazi OB / HRM OB/HRM (MGT 302) .

Lecture Outline What is Job Analysis? Methods of Job Analysis Job Description & Job Specification The Recruitment & Selection Process Workforce Planning & Forecasting Recruiting Job Candidates: Internal & External Sources Developing & Using Application Forms OB/HRM (MGT 302) .Maryam Niazi 19 .

and supervisory responsibilities—one product of a job analysis. reporting relationships. responsibilities. personality.Maryam Niazi 20 . The Nature of Job Analysis  Job analysis ◦ The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it.A. skills. working conditions. Job description Job specifications ◦ A list of a job’s duties. and so on—another product of a job analysis.” that is. OB/HRM (MGT 302) . ◦ A list of a job’s “human requirements. the requisite education.

Maryam Niazi 21 .Uses of Job Analysis Information OB/HRM (MGT 302) .

 Disadvantages ◦ Distorted information OB/HRM (MGT 302) .Maryam Niazi 22 .Methods of Collecting Job Analysis Information: The  Information sources  Interview formats Interview ◦ Individual employees ◦ Structured ◦ Groups of employees ◦ Supervisors with knowledge of the job (Checklist) ◦ Unstructured  Advantages ◦ Quick. direct way to find overlooked information.

Maryam Niazi 23 .Methods of Collecting Job Analysis Information:  Information source Questionnaires Advantages ◦ Have employees fill out questionnaires to describe their jobrelated duties and responsibilities.  Questionnaire formats ◦ Structured checklists ◦ Open-ended questions ◦ Quick and efficient way to gather information from large numbers of employees  Disadvantages ◦ Expense and time consumed in preparing and testing the questionnaire OB/HRM (MGT 302) .

information ◦ Reduces distortion of information  Disadvantages ◦ Time consuming ◦ Difficulty in capturing entire job cycle ◦ Of little use if job involves a high level of mental activity. OB/HRM (MGT 302) .Maryam Niazi 24 .Methods of Collecting Job Analysis Information:  Advantages  Information source Observation ◦ Provides first-hand ◦ Observing and noting the physical activities of employees as they go about their jobs.

Maryam Niazi 25 .Methods of Collecting Job Analysis Information:  Information source  Advantages Participant Diary/Logs ◦ Workers keep a ◦ Produces a more chronological diary/ log of what they do and the time spent in each activity. complete picture of the job ◦ Employee participation  Disadvantages ◦ Distortion of information ◦ Depends upon employees to accurately recall their activities OB/HRM (MGT 302) .

and what the job’s working conditions are. how he or she does it. Sections of a typical job description ◦ Job identification ◦ Job summary ◦ Reporting Relationships ◦ Responsibilities and duties ◦ Standards of performance / Working conditions ◦ Job specifications OB/HRM (MGT 302) .Maryam Niazi 26 .Writing Job Descriptions A job description ◦ A written statement of what the worker actually does.

The Job Description  Job Identification  Responsibilities Duties ◦ Job title ◦ Preparation date ◦ Preparer  Job ◦ Major responsibilities and duties (essential functions) ◦ Decision-making authority ◦ Direct supervision ◦ Budgetary limitations Summary ◦ General nature of the job ◦ Major functions/activities  Standards of Performance and Working Conditions ◦ What it takes to do the job successfully  Relationships ◦ ◦ ◦ ◦ and Reports to: Supervises: Works with: Outside the company: • Job Specification o Education o Work Experience o Skills 4–27 OB/HRM (MGT 302) .Maryam Niazi .

Figure 3.Sample Job Description. Pearson Education.Maryam Niazi 28 . Pearson Education Source: Courtesy of HR Department.1 OB/HRM (MGT 302) .

Source: Courtesy of HR Department. Pearson Education.Maryam Niazi 29 .1 OB/HRM (MGT 302) . Figure 3.

The Job Description Job identification ◦ Job title: name of job ◦ Preparation date: when the description was written ◦ Prepared by: who wrote the description Job summary ◦ Describes the general nature of the job ◦ Lists the major functions or activities OB/HRM (MGT 302) .Maryam Niazi 30 .

Maryam Niazi 31 . ◦ Outside the company: others with whom the job holder is expected to work and come into contact with externally.The Job Description (cont’d)  Relationships (chain of command) ◦ Reports to: employee’s immediate supervisor ◦ Supervises: employees that the job incumbent directly supervises ◦ Works with: others with whom the job holder will be expected to work and come into contact with internally. OB/HRM (MGT 302) .

Standard Occupational Classification ◦ Classifies all workers into one of 23 major groups of jobs which are subdivided into 96 minor groups of jobs and detailed occupations. and budgetary limitations. OB/HRM (MGT 302) .Maryam Niazi 32 . direct supervision.The Job Description (cont’d)  Responsibilities and duties ◦ A listing of the job’s major responsibilities and duties (essential functions) ◦ Defines limits of jobholder’s decisionmaking authority.

and 821 detailed occupations. Table 4–2 OB/HRM (MGT 302) .SOC’s Major Groups of Jobs Note: Within these major groups are 96 minor groups.Maryam Niazi 33 . 449 broad occupations.

Use selection techniques like tests. Have candidates complete application forms and perhaps undergo an initial screening interview. OB/HRM (MGT 302) . 4.The Recruitment and Selection Process 1. by having the supervisor and perhaps others on the team interview the candidates. background investigations. Decide what positions you’ll have to fill through personnel planning and forecasting. 5.Maryam Niazi 34 . Build a pool of candidates for these jobs by recruiting internal or external candidates. 2. Decide who to make an offer to. and physical exams to identify viable candidates. 3.

Steps in Recruitment and Selection Process The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.Maryam Niazi 35 . OB/HRM (MGT 302) .

and how to fill them.Planning and Forecasting Employment or personnel planning ◦ The process of deciding what positions the firm will have to fill.Maryam Niazi 36 . What to forecast? ◦ Overall personnel needs ◦ The supply of inside candidates ◦ The supply of outside candidates OB/HRM (MGT 302) .

B1: Forecasting Personnel Needs  Trend analysis ◦ The 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 a causal factor and the number of employees needed e.Maryam 37 . OB/HRM (MGT 302) . sales volume & salespeople • The Scatter Plot A graphical method used to help identify the relationship between two variables.g.

Maryam Niazi 38 .Determining the Relationship Between Hospital Size and Number of Nurses Figure 5–3 OB/HRM (MGT 302) .

career and development interests.Maryam Niazi 39 .  Personnel replacement charts ◦ Company records showing present performance and promotability of inside candidates for the most important positions. to be used in selecting inside candidates for promotion.Forecasting the Supply of Inside Candidates  Qualifications inventories ◦ Manual or computerized records listing employees’ education. special skills. OB/HRM (MGT 302) . languages. and so on.

Management Replacement Chart Showing Development Needs of Future Divisional Vice President OB/HRM (MGT 302) .Maryam Niazi 40 .

Computerized Information Systems  Human Resource Information System (HRIS) ◦ Computerized inventory of information that can be accessed to determine employees’ background. experience. and skills that may include:  Work experience codes  Product or service knowledge  Industry experience  Formal education OB/HRM (MGT 302) .Maryam Niazi 41 .

Maryam Niazi 42 .Forecasting the Supply of Outside Candidates  Factors impacting the supply of outside candidates ◦ General economic conditions ◦ Expected unemployment rate OB/HRM (MGT 302) .

Maryam Niazi 43 .Finding Candidates Internal External Sources of Candidates OB/HRM (MGT 302) .

Internal Candidates: Hiring from Within Advantages  Foreknowledge of candidates’ strengths and weaknesses  More accurate view of candidate’s skills  Candidates have a stronger commitment to the company  Increases employee morale  Less training and orientation required Disadvantages  Failed applicants become discontented  Time wasted interviewing inside candidates who will not be considered  Inbreeding strengthens tendency to maintain the status quo.Maryam Niazi 44 . OB/HRM (MGT 302) .

Maryam Niazi 45 .Finding Internal Candidates Rehiring Former Employees Job Posting Hiring from Within Succession Planning (HRIS) OB/HRM (MGT 302) .

Outside Sources of Candidates Locating Outside Candidates 1 Recruiting via the Internet 4 Executive Recruiters 2 Advertising 5 College Recruiting 3 Employment Agencies 6 Referrals and Walk-ins OB/HRM (MGT 302) .Maryam Niazi 46 .

Maryam Niazi 47 .Internet Recruiting (+) Advantages  Cost-effective way to publicize job openings  More applicants attracted over a longer period  Immediate applicant responses  Online prescreening of applicants  Links to other job search sites  Automation of applicant tracking and evaluation (-) Disadvantages  Exclusion of older and minority workers  Excessive number of unqualified applicants  Personal information privacy concerns of applicants OB/HRM (MGT 302) .

desire.Advertising ◦ The Media: selection of the best medium depends on the positions for which the firm is recruiting. OB/HRM (MGT 302) .  Newspapers (local and specific labor markets)  Trade and professional journals  Internet job sites  Marketing programs  Constructing an effective ad ◦ Wording related to job interest factors should evoke the applicant’s attention. interest. and action (AIDA) and create a positive impression of the firm.Maryam Niazi 48 .

Ineffective and Effective Web Ads OB/HRM (MGT 302) .Maryam Niazi 49 .

p. OB/HRM (MGT 302) .Maryam Niazi 50 . SF. March 24. 2004.Help Wanted Ad Source: The Miami Herald.

Maryam Niazi 51 . ◦ The firm must fill a particular opening quickly. ◦ There is a perceived need to attract a greater number of minority or female applicants. who might feel more comfortable dealing with agencies than with competing companies. ◦ The firm has found it difficult in the past to generate a pool of qualified applicants. ◦ The firm wants to reach currently employed individuals. OB/HRM (MGT 302) . ◦ The firm wants to cut down on the time it’s devoting to recruiting.Employment Agencies  Reasons for using a private employment agency: ◦ When a firm doesn’t have an HR department and is not geared to doing recruiting and screening.

◦ Screen the agency.Maryam Niazi 35 . Check with other managers or HR people to find out which agencies have been the most effective at filling the sorts of positions needed to be filled. ◦ Periodically review data on candidates accepted or rejected by your firm. and by the agency. application blanks. Check on the effectiveness and fairness of the agency’s screening process.Employment Agencies  Avoiding problems with employment agencies: ◦ Give the agency an accurate and complete job description. and interviews are part of the agency’s selection process. ◦ Review the Internet and a few back issues of the Sunday classified ads to discover the agencies that handle the positions to be filled. ◦ Make sure tests. OB/HRM (MGT 302) .

Time & cost saving (-) Detailed explanation of JD is required OB/HRM (MGT 302) .  Contingent-based recruiters collect a fee for their services when a successful hire is completed. Confidentiality.Maryam Niazi 53 .Executive Recruiters / Headhunters ◦ Special employment agencies retained by employers to seek out top-management talent for their clients.  Retained executive searchers are paid regardless of the outcome of the recruitment process (+) Contacts.

Maryam Niazi 54 .College Recruiting ◦ Recruiting goals  To determine if the candidate is worthy of further consideration  To attract good candidates (expensive. recruiter effectiveness is critical) ◦ Internships (+) Hire fresh talent (-) Expensive. Contact person is critical in the recruiting process OB/HRM (MGT 302) .

Maryam Niazi 39 . ◦ Courteous treatment of any applicant is a good business practice.Employee referrals ◦ Applicants who are referred to the organization by current employees (+) More applicants. Cost-effective. OB/HRM (MGT 302) . Higher quality candidates (-) De motivation if referral gets rejected Walk-ins ◦ Direct applicants who seek employment with or without encouragement from other sources.

Recruiting A More Diverse Workforce Single Parents The Disabled Welfare-toWork Older Workers Minorities and Women OB/HRM (MGT 302) .Maryam Niazi 56 .

Maryam Niazi 57 .Developing and Using Application Forms Uses of Application Information Applicant’s education and experience Applicant’s progress and growth Applicant’s employment stability Applicant’s likelihood of success OB/HRM (MGT 302) .

training. screening.  HR Managers perform three functions.Maryam Niazi 58 . ethical and fair environment for your employees. OB/HRM .  Employees can be recruited internally & externally. rewarding.  Job analysis consists of two components: JD & JS.Key Takeaways  HRM pertains to “people” or human resource aspects of a management position.  The first step in the HR process is ‘Personnel Planning & Recruiting’. and appraising and providing a safe. including recruiting.

Aud 10 & Aud 9) .Important Makeup Class on Saturday 21st March 2015 (Timings: 9am to 12 noon.

Quiz Reminder! Quiz 6 will be taken in the next class Syllabus: Lecture 14A & 14B OB/HRM .Maryam Niazi 60 .

Next Topic & Readings  Next Topic: Testing & Selecting Employees OB/HRM .Maryam Niazi 61 .

Discussion Session Assignment: HR_01 Prepare a Job Description for an HR Officer Hard copy submission 3 members per group .

Next Week: Case Presentation Presentations of CS_06 .

Glossary Human Resource Management Line Manager Staff Manager Line Function Staff Function Coordinative Function Implied Authority High Performance Work System (HPWS) Jo Analysis Job Description Job Specification Headhunters .